Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB) (“Red Robin” or
the “Company”), a full-service restaurant chain serving an
innovative selection of high-quality gourmet burgers in a
family-friendly atmosphere, today reported financial results for
the quarter ended July 14, 2019.
Second Quarter 2019 Financial Highlights Compared to Second
Quarter 2018
- GAAP earnings per diluted share were $0.08 compared to a $0.14
loss per diluted share;
- Adjusted earnings per diluted share were $1.03 compared to
$0.46 (see Schedule I);
- Net Income was $1.0 million compared to a net loss of $1.9
million;
- Adjusted EBITDA was $25.5 million compared to $28.8 million
(see Schedule III);
- Total revenues were $308.0 million, a decrease of 2.3%;
- Off-premise sales increased 25.7% and comprised 12.5% of total
food and beverage sales, including catering;
- Comparable restaurant revenue decreased 1.5% (using constant
currency rates); and
- Comparable restaurant guest counts decreased 6.4%.
Pattye Moore, board chair and interim chief executive officer of
Red Robin, said, “We are making important progress on the execution
of the five pillars in our strategic plan, designed to restore Red
Robin’s growth and improve profitability, and believe we have
reached an inflection point in our transformation. This was
underscored during the second quarter by achieving our strongest
comparable restaurant revenue result in five quarters, including a
sequential improvement from the first quarter. Importantly, we are
encouraged to see early signs of our recent sales momentum
continuing, which reflect our ongoing improvements in operating and
guest satisfaction metrics, as well as the new omni-channel
advertising campaign that launched July 15th.”
Ms. Moore continued, “While there is still considerable work to
do, our improving metrics, growing off-premise and catering
channels, and traction in implementing technology solutions
highlight what we have already accomplished in stabilizing the
business and laying the foundation for long-term success.
Additionally, the entire Red Robin Board, including our three new
independent Directors announced earlier this month, remains
committed to creating value for our shareholders.”
Fiscal Period Eight Comparable Restaurant Revenue
For the four-week period ended August 11, 2019, representing the
Company’s fiscal period eight, comparable restaurant revenue
improved to (0.1%), reflecting the continued momentum in the
business.
Second Quarter 2019 Operating Results
Total revenues, which primarily include Company-owned restaurant
revenue and franchise royalties, decreased 2.3% to $308.0 million
in the second quarter of 2019, from $315.4 million in the second
quarter of 2018. Restaurant revenue decreased $8.0 million due to a
$4.4 million, or 1.5%, decrease in comparable restaurant revenue,
and a $4.2 million decrease from closed restaurants, partially
offset by a $0.6 million increase in revenue from late 2018 new
restaurant openings.
System-wide restaurant revenue (which includes franchised units)
for the second quarter of 2019 totaled $366.4 million, compared to
$374.7 million for the second quarter of 2018.
Comparable restaurant revenue(1) decreased 1.5% in the second
quarter of 2019 compared to the same period a year ago, driven by a
6.4% decrease in guest counts and offset by a 4.9% increase in
average guest check. The increase in average guest check comprised
a 2.3% increase in menu mix and a 2.6% increase in pricing. The
increase in menu mix was primarily driven by the Company’s current
menu and promotional strategy, resulting in lower Tavern burger
sales and higher Finest burger and entrée sales.
Net income was $1.0 million for the second quarter of 2019
compared to a net loss of $1.9 million for the same period a year
ago. Adjusted net income was $13.4 million for the second quarter
of 2019 compared to $6.0 million for the same period a year ago
(see Schedule I).
Restaurant-level operating profit margin (a non-GAAP financial
measure) was 18.2% in the second quarter of 2019 compared to 19.3%
in the same period a year ago. Cost of sales as a percentage of
restaurant revenue decreased 20 basis points primarily due to a
reduction in waste and lower Tavern mix. Restaurant labor costs as
a percentage of restaurant revenue increased 90 basis points due to
higher average wage rates and sales deleverage. Other restaurant
operating costs increased 50 basis points primarily due to a 60
basis point increase in third-party delivery fees, offset by a 10
basis point decrease in supplies. Occupancy costs decreased 10
basis points due to restaurant closures. Schedule II of this
earnings release defines restaurant-level operating profit,
discusses why it is a useful metric for investors, and reconciles
this metric to income from operations and net income, in each case
under GAAP.
________________________________________
(1)
Comparable restaurants are those
Company-owned restaurants that have operated five full quarters
during the period presented, and such restaurants are only included
in the comparable metrics if they are comparable for the entirety
of both periods presented.
Restaurant Revenue Performance
Q2 2019
Q2 2018
Average weekly sales per unit(1):
Company-owned – Total
$
52,907
$
53,266
Company-owned – Comparable
$
53,304
$
54,065
Franchised units – Comparable
$
59,818
$
61,558
Total operating weeks:
Company-owned units
5,716
5,827
Franchised units
1,075
1,052
________________________________________
(1)
Calculated using constant currency rates.
Using historical currency rates, the average weekly sales per unit
in the second quarter of 2018 for Company-owned – Total and
Company-owned – Comparable was $53,268 and $54,067. The Company
calculates non GAAP constant currency average weekly sales per unit
by translating prior year local currency average weekly sales per
unit to U.S. dollars based on current quarter average exchange
rates. The Company considers non-GAAP constant currency average
weekly sales per unit to be a useful metric to investors and
management as they facilitate a more useful comparison of current
performance to historical performance.
Other Results
Depreciation and amortization costs decreased to $21.4 million
in the second quarter of 2019 from $22.3 million in the second
quarter of 2018.
General and administrative costs were $21.8 million, or 7.1% of
total revenues, in the second quarter of 2019, compared to $20.4
million, or 6.5% of total revenues, in the same period a year ago.
The increase was primarily driven by professional and legal
fees.
Selling expenses were $13.4 million, or 4.4% of total revenues,
in the second quarter of 2019, compared to $15.2 million, or 4.8%
of total revenues, during the same period a year ago. The increase
was primarily driven by a decrease in media spend.
Other charges in the second quarter of 2019 included $14.1
million of asset impairments, $1.2 million of board and shareholder
matter costs, $1.0 million in costs related to restaurants that
were previously closed, $0.4 million in executive transition and
severance, and $0.3 million in executive retention.
The Company had an effective tax benefit of 106.5% in the second
quarter of 2019, compared to an effective tax benefit of 71.6%
during the same period a year ago. The change in the effective tax
benefit is primarily due to the decrease in income in the second
quarter of 2019 compared to the same period a year ago. The Company
currently anticipates full year cash tax payments of between $3.5
million and $5 million.
Earnings per diluted share for the second quarter of 2019 were
$0.08 compared to losses per diluted share of $0.14 in the second
quarter of 2018. Excluding charges of $0.80 for impairment
expenses, $0.07 for board and shareholder matter costs, $0.05 for
restaurant closure costs, $0.02 for executive transition and
severance, and $0.01 for executive retention, adjusted earnings per
diluted share for the second quarter ended July 14, 2019 were
$1.03. Excluding charges of $0.54 for asset impairment, $0.03 for
spiral menu disposal, and $0.03 for reorganization costs, adjusted
earnings per diluted share for the second quarter ended July 15,
2018 were $0.46. See Schedule I for a reconciliation of adjusted
net income and adjusted earnings per share (each, a non-GAAP
financial measure) to net income and earnings per share.
Restaurant Portfolio
During the second quarter of 2019, one franchised Red Robin
restaurant opened. One additional Red Robin franchised restaurant
is expected to open later in 2019.
Separately, the Company closed 10 restaurants in connection with
its previously announced real estate portfolio reassessment. Seven
of these restaurants were in enclosed mall locations. As a result
of these closures, the Company recognized non-cash impairment
charges of $1.1 million during the second quarter of 2019. These
restaurants had combined year to date sales of $6.1 million, and
pre-tax operating losses of $1.7 million. Year to date depreciation
expense for these locations in 2019 was immaterial.
The following table details restaurant unit data for
Company-owned and franchised locations for the periods
indicated:
Twelve Weeks Ended
Twelve Weeks Ended
Twenty-Eight Weeks
Ended
Twenty-Eight Weeks
Ended
July 14, 2019
July 15, 2018
July 14, 2019
July 15, 2018
Company-owned:
Beginning of period
483
484
484
480
Opened during the period
—
2
—
6
Closed during the period(1)
(11
)
(2
)
(12
)
(2
)
End of period
472
484
472
484
Franchised:
Beginning of period
89
87
89
86
Opened during the period
1
1
1
2
End of period
90
88
90
88
Total number of restaurants
562
572
562
572
_________________________________________________________
(1)
Restaurants closed during the twelve weeks
ended July 14, 2019 include the permanent closure of ten
restaurants and the temporary closure of one restaurant.
Restaurants closed during the twenty eight weeks ended July 14,
2019 include the permanent closure of eleven restaurants, and the
temporary closure of one restaurant. Restaurants closed in the
twelve and twenty eight week periods ended July 15, 2018 consisted
entirely of permanently closed restaurants.
Balance Sheet and Liquidity
As of July 14, 2019, the Company had cash and cash equivalents
of $26.2 million and total debt of $181.4 million. The Company
funded capital expenditures with cash flow from operations and made
net repayments of $2.0 million on its credit facility during the
second quarter of 2019. As of July 14, 2019, the Company had
outstanding borrowings under its credit facility of $180.5 million,
in addition to amounts issued under letters of credit of $7.4
million, which reduce the amount available under its credit
facility but are not recorded as debt.
The Company’s lease adjusted leverage ratio was 4.30x as of July
14, 2019. The lease adjusted leverage ratio is defined in Section
1.1 of the Company’s credit facility, which is filed as Exhibit
10.32 to the Annual Report on Form 10-K filed on February 21, 2017.
On August 19, 2019, the Company entered into a second amendment to
its credit facility to increase the lease adjusted leverage ratio
to 5.0x through December 29, 2019 (see Exhibit 10.2 of the
Company’s Quarterly Report on Form 10-Q to be filed on August 23,
2019).
Outlook for 2019
Red Robin’s updated 2019 annual outlook remains the same for
comparable restaurant revenue, adjusted EBITDA and capital
expenditures. Selling, general and administrative costs, net income
and adjusted diluted earnings per share have been updated to
reflect current estimates including year-to-date other charges and
the Company’s current estimated annual tax benefit. Current 2019
guidance is as follows:
- Comparable restaurant revenue of down 1.0% to up 1.0% (using
constant currency rates);
- Selling, general and administrative costs of $154 million to
$157 million;
- Net income of $(2.2) million to $4.2 million;
- Adjusted EBITDA, a non-GAAP measure, of $107 million to $117
million;
- Adjusted diluted earnings per share, a non-GAAP measure, of
$0.95 to $1.50, which includes the impact of an estimated tax
benefit of $0.45 to $0.65; and
- Capital expenditures of $45 million to $55 million.
Guidance Policy
The Company provides guidance as it relates to selected
information related to the Company’s financial and operating
performance, and such measures may differ from year to year.
Investor Conference Call and Webcast
Red Robin will host an investor conference call to discuss its
second quarter 2019 results today at 8:30 a.m. ET. The conference
call number is (201) 689-8560. The financial information that the
Company intends to discuss during the conference call is included
in this press release and will be available in the “Company”
section of the Company’s website at www.redrobin.com by selecting
the “Investor Relations” link, then the “Calendar of Events” link.
Prior to the conference call, the Company will post supplemental
financial information that will be discussed during the call and
live webcast.
To access the supplemental financial information and webcast,
please visit www.redrobin.com and select the “Company” section,
then the “Investor Relations” link, then the “Presentations” link.
A replay of the live conference call will be available from two
hours after the call until midnight on Friday, August 30, 2019. The
replay can be accessed by dialing (412) 317-6671. The conference ID
is 13693391.
About Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB)
Red Robin Gourmet Burgers, Inc. (www.redrobin.com), a casual dining restaurant
chain founded in 1969 that operates through its wholly-owned
subsidiary, Red Robin International, Inc., and under the trade name
Red Robin Gourmet Burgers and Brews, is the Gourmet Burger
Authority™, famous for serving more than two dozen craveable,
high-quality burgers with Bottomless Steak Fries® in a fun
environment welcoming to Guests of all ages. Whether a family
dining with kids, adults grabbing a drink at the bar, or teens
enjoying a meal, Red Robin offers an unparalleled experience for
its Guests. In addition to its many burger offerings, Red Robin
serves a wide variety of salads, soups, appetizers, entrees,
desserts, and signature beverages. Red Robin offers a variety of
options behind the bar, including its extensive selection of local
and regional beers, and innovative adult beer shakes and cocktails,
earning the restaurant a VIBE Vista Award for Best Beer Program in
a Multi-Unit Chain Restaurant. There are more than 560 Red Robin
restaurants across the United States and Canada, including
locations operating under franchise agreements. Red Robin… YUMMM®!
Connect with Red Robin on Facebook,
Instagram, and Twitter.
Forward-Looking Statements
Forward-looking statements in this press release regarding the
Company’s future performance, comparable restaurant revenue,
selling, general and administrative costs, net income, EBITDA,
earnings per share, franchisee restaurant openings, capital
expenditures, taxes, and statements under the heading “Outlook for
2019”, and all other statements that are not historical facts, are
made under the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. These statements are based on
assumptions believed by the Company to be reasonable and speak only
as of the date on which such statements are made. Without limiting
the generality of the foregoing, words such as “expect,” “believe,”
“anticipate,” “intend,” “plan,” “project,” “will” or “estimate,” or
the negative or other variations thereof or comparable terminology
are intended to identify forward-looking statements. Except as
required by law, the Company undertakes no obligation to update
such statements to reflect events or circumstances arising after
such date and cautions investors not to place undue reliance on any
such forward-looking statements. Forward-looking statements involve
risks and uncertainties that could cause actual results to differ
materially from those described in the statements based on a number
of factors, including but not limited to the following: the
effectiveness of the Company’s strategic initiatives, including
management’s focus on a narrower range of key initiatives, the
effectiveness of the Company’s affordability, service, and
operational improvement initiatives to drive dine-in traffic and
sales; the ability to increase labor productivity through
alternative labor models, and to staff and train the Company’s
workforce for service execution, including the complexities related
to growth of multiple revenue streams within a single restaurant
location; the effectiveness of the Company’s marketing strategies
and promotions to sustain and grow comparable restaurant sales; the
cost and availability of key food products, labor, and energy; the
ability to achieve anticipated revenue and cost savings from
anticipated new technology solutions in the restaurants and timing
of rollout; the ability to increase online ordering, to-go
services, catering, and other off-premise sales; costs associated
with increased third-party delivery services; the success of the
Company’s re-franchising efforts; the ability to achieve savings to
the Company’s general and administrative expenses, which, by their
nature, tend to be fixed costs; the Company’s ability to repurchase
shares at all or at the times or in the amounts we currently
anticipate or to achieve anticipated benefits of a share repurchase
program; the impact of the Company’s recent adoption of a
shareholder rights plan; availability of capital or credit facility
borrowings to fund the Company’s capital expenditures; the adequacy
of cash flows or available debt resources to fund operations and
growth opportunities; the impact of federal, state, and local
regulation of the Company’s business; and other risk factors
described from time to time in the Company’s Form 10-K, Form 10-Q,
and Form 8-K reports (including all amendments to those reports)
filed with the U.S. Securities and Exchange Commission.
RED ROBIN GOURMET BURGERS,
INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(In thousands, except per
share data)
(Unaudited)
Twelve Weeks Ended
Twelve Weeks Ended
Twenty-Eight Weeks
Ended
Twenty-Eight Weeks
Ended
July 14, 2019
July 15, 2018
July 14, 2019
July 15, 2018
Revenues:
Restaurant revenue
$
302,418
$
310,392
$
702,902
$
725,094
Franchise and other revenue
5,563
4,996
14,945
11,813
Total revenues
307,981
315,388
717,847
736,907
Costs and expenses:
Restaurant operating costs (exclusive of
depreciation and amortization shown separately below):
Cost of sales
72,387
74,874
166,102
173,389
Labor
106,538
106,476
249,432
249,491
Other operating
43,000
42,668
98,565
97,693
Occupancy
25,458
26,460
60,478
61,470
Depreciation and amortization
21,369
22,323
49,807
51,516
General and administrative
21,791
20,408
51,881
48,996
Selling
13,443
15,209
31,469
32,939
Pre-opening costs
—
569
319
1,706
Other charges
16,847
10,615
19,245
16,902
Total costs and expenses
320,833
319,602
727,298
734,102
(Loss) income from operations
(12,852
)
(4,214
)
(9,451
)
2,805
Other expense:
Interest expense, net and other
2,153
2,385
5,391
5,792
Loss before income taxes
(15,005
)
(6,599
)
(14,842
)
(2,987
)
Income tax benefit
(15,986
)
(4,725
)
(16,462
)
(5,493
)
Net income (loss)
$
981
$
(1,874
)
$
1,620
$
2,506
Earnings (loss) per share:
Basic
$
0.08
$
(0.14
)
$
0.12
$
0.19
Diluted
$
0.08
$
(0.14
)
$
0.12
$
0.19
Weighted average shares outstanding:
Basic
12,970
12,982
12,969
12,979
Diluted
13,043
12,982
13,047
13,080
RED ROBIN GOURMET BURGERS,
INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In thousands, except per
share amounts)
(Unaudited)
July 14, 2019
December 30, 2018
Assets:
Current Assets:
Cash and cash equivalents
$
26,194
$
18,569
Accounts receivable, net
12,978
25,034
Inventories
27,428
27,370
Prepaid expenses and other current
assets
15,005
27,576
Total current assets
81,605
98,549
Property and equipment, net
527,789
565,142
Right of use assets, net
448,352
—
Goodwill
96,453
95,838
Intangible assets, net
32,071
34,609
Other assets, net
73,665
49,803
Total assets
$
1,259,935
$
843,941
Liabilities and Stockholders’
Equity:
Current Liabilities:
Accounts payable
$
32,037
$
39,024
Accrued payroll and payroll related
liabilities
37,863
37,922
Unearned revenue
39,723
55,360
Short-term portion of lease
obligations
42,136
786
Accrued liabilities and other
43,899
38,057
Total current liabilities
195,658
171,149
Deferred rent
—
75,675
Long-term debt
181,375
193,375
Long-term portion of lease obligations
503,030
9,414
Other non-current liabilities
10,158
11,523
Total liabilities
890,221
461,136
Stockholders’ Equity:
Common stock; $0.001 par value: 45,000
shares authorized; 17,851 and 17,851 shares issued; 12,985 and
12,971 shares outstanding
18
18
Preferred stock, $0.001 par value: 3,000
shares authorized; no shares issued and outstanding
—
—
Treasury stock 4,866 and 4,880 shares, at
cost
(200,428
)
(201,505
)
Paid-in capital
212,059
212,752
Accumulated other loss, net of tax
(4,724
)
(4,801
)
Retained earnings
362,789
376,341
Total stockholders’ equity
369,714
382,805
Total liabilities and stockholders’
equity
$
1,259,935
$
843,941
Schedule I
Reconciliation of Non-GAAP Results to GAAP
Results
(In thousands, except per share data,
unaudited)
In addition to the results provided in accordance with Generally
Accepted Accounting Principles (“GAAP”) throughout this press
release, the Company has provided non-GAAP measurements which
present the 12 and 28 weeks ended July 14, 2019 and July 15, 2018,
net income and basic and diluted earnings per share, excluding the
effects of executive transition and severance, board and
shareholder matter costs, asset impairments, litigation
contingencies, asset disposals, restaurant closure costs,
reorganization costs, executive retention costs and their related
income tax effects. The Company believes the presentation of net
income and earnings per share exclusive of the identified item
gives the reader additional insight into the ongoing operational
results of the Company. This supplemental information will assist
with comparisons of past and future financial results against the
present financial results presented herein. Income tax effect of
reconciling items was calculated based on the change in the total
tax provision calculation after adjusting for the identified item.
The non-GAAP measurements are intended to supplement the
presentation of the Company’s financial results in accordance with
GAAP.
Twelve Weeks Ended
Twelve Weeks Ended
Twenty-Eight Weeks
Ended
Twenty-Eight Weeks
Ended
July 14, 2019
July 15, 2018
July 14, 2019
July 15, 2018
Net income (loss) as reported
$
981
$
(1,874
)
$
1,620
$
2,506
Executive transition and severance
370
—
2,364
—
Board and shareholder matter costs
1,152
—
1,152
—
Asset impairment
14,064
9,643
14,064
9,643
Litigation contingencies
—
—
—
4,000
Spiral menu disposal
—
506
—
506
Restaurant closure costs
1,001
—
1,305
—
Reorganization costs
—
466
—
2,753
Executive retention
260
—
360
—
Income tax effect of reconciling items
(4,380
)
(2,777
)
(5,004
)
(4,394
)
Adjusted net income
$
13,448
$
5,964
$
15,861
$
15,014
Basic net income per share:
Net income (loss) as reported
$
0.08
$
(0.14
)
$
0.12
$
0.19
Executive transition and severance
0.03
—
0.18
—
Board and shareholder matter costs
0.09
—
0.09
—
Asset impairment
1.08
0.74
1.08
0.74
Litigation contingencies
—
—
—
0.31
Spiral menu disposal
—
0.04
—
0.04
Restaurant closure costs
0.07
—
0.10
—
Reorganization costs
—
0.04
—
0.21
Executive retention
0.02
—
0.03
—
Income tax effect of reconciling items
(0.34
)
(0.22
)
(0.38
)
(0.34
)
Adjusted earnings per share - basic
$
1.03
$
0.46
$
1.22
$
1.15
Diluted net income per share (1):
Net income (loss) as reported
$
0.08
$
(0.14
)
$
0.12
$
0.19
Executive transition and severance
0.03
—
0.18
—
Board and shareholder matter costs
0.09
—
0.09
—
Asset impairment
1.08
0.74
1.08
0.74
Litigation contingencies
—
—
—
0.31
Spiral menu disposal
—
0.04
—
0.04
Restaurant closure costs
0.07
—
0.10
—
Reorganization costs
—
0.04
—
0.21
Executive retention
0.02
—
0.03
—
Income tax effect of reconciling items
(0.34
)
(0.22
)
(0.38
)
(0.34
)
Adjusted earnings per share - diluted
$
1.03
$
0.46
$
1.22
$
1.15
Weighted average shares outstanding
Basic
12,970
12,982
12,969
12,979
Diluted(1)
13,043
13,072
13,047
13,080
________________________________________
(1)
For the second quarter of 2018, the impact
of dilutive shares is included in the calculations as the
adjustments for the quarter resulted in adjusted net income. For
diluted shares reported on the condensed consolidated statement of
operations, the impact of dilutive shares is excluded due to the
reported net loss for the quarter.
Schedule II
Reconciliation of Non-GAAP Restaurant-Level
Operating Profit to Income
from Operations and Net Income
(In thousands, unaudited)
The Company believes restaurant-level operating profit is an
important measure for management and investors because it is widely
regarded in the restaurant industry as a useful metric by which to
evaluate restaurant-level operating efficiency and performance. The
Company defines restaurant-level operating profit to be restaurant
revenue minus restaurant-level operating costs, excluding
restaurant impairment and closure costs. The measure includes
restaurant-level occupancy costs that include fixed rents,
percentage rents, common area maintenance charges, real estate and
personal property taxes, general liability insurance, and other
property costs, but excludes depreciation related to restaurant
equipment, buildings and leasehold improvements. The measure
excludes depreciation and amortization expense, substantially all
of which is related to restaurant-level assets, because such
expenses represent historical sunk costs which do not reflect
current cash outlay for the restaurants. The measure also excludes
selling, general, and administrative costs, and therefore excludes
costs associated with selling, general, and administrative
functions, and pre-opening costs. The Company excludes restaurant
closure costs as they do not represent a component of the
efficiency of continuing operations. Restaurant impairment costs
are excluded, because, similar to depreciation and amortization,
they represent a non-cash charge for the Company’s investment in
its restaurants and not a component of the efficiency of restaurant
operations. Restaurant-level operating profit is not a measurement
determined in accordance with GAAP and should not be considered in
isolation, or as an alternative, to income from operations or net
income as indicators of financial performance. Restaurant-level
operating profit as presented may not be comparable to other
similarly titled measures of other companies in our industry. The
table below sets forth certain unaudited information for the 12 and
28 week periods ended July 14, 2019 and July 15, 2018, expressed as
a percentage of total revenues, except for the components of
restaurant-level operating profit that are expressed as a
percentage of restaurant revenue.
Twelve Weeks Ended
Twelve Weeks Ended
Twenty-Eight Weeks
Ended
Twenty-Eight Weeks
Ended
July 14, 2019
July 15, 2018
July 14, 2019
July 15, 2018
Restaurant revenue
$
302,418
98.2
%
$
310,392
98.4
%
$
702,902
97.9
%
$
725,094
98.4
%
Restaurant operating costs (1):
Cost of sales
72,387
23.9
%
74,874
24.1
%
166,102
23.6
%
173,389
23.9
%
Labor
106,538
35.2
%
106,476
34.3
%
249,432
35.5
%
249,491
34.4
%
Other operating
43,000
14.2
%
42,668
13.7
%
98,565
14.0
%
97,693
13.5
%
Occupancy
25,458
8.4
%
26,460
8.5
%
60,478
8.6
%
61,470
8.5
%
Restaurant-level operating profit
55,035
18.2
%
59,914
19.3
%
128,325
18.3
%
143,051
19.7
%
Add – Franchise and other revenue
5,563
1.8
%
4,996
1.6
%
14,945
2.1
%
11,813
1.6
%
Deduct – other operating:
Depreciation and amortization
21,369
6.9
%
22,323
7.1
%
49,807
6.9
%
51,516
7.0
%
General and administrative expenses
21,791
7.1
%
20,408
6.5
%
51,881
7.2
%
48,996
6.6
%
Selling
13,443
4.4
%
15,209
4.8
%
31,469
4.4
%
32,939
4.5
%
Pre-opening costs
—
—
%
569
0.2
%
319
—
%
1,706
0.2
%
Other charges
16,847
5.5
%
10,615
3.4
%
19,245
2.7
%
16,902
2.3
%
Total other operating
73,450
23.8
%
69,124
21.9
%
152,721
21.3
%
152,059
20.6
%
Income from operations
(12,852
)
(4.2
)%
(4,214
)
(1.3
)%
(9,451
)
(1.3
)%
2,805
0.4
%
Interest expense, net and other
2,153
0.7
%
2,385
0.8
%
5,391
0.8
%
5,792
0.8
%
Income tax benefit
(15,986
)
(5.2
)%
(4,725
)
(1.5
)%
(16,462
)
(2.3
)%
(5,493
)
(0.7
)%
Total other
(13,833
)
(4.5
)%
(2,340
)
(0.7
)%
(11,071
)
(1.5
)%
299
0.0
%
Net income
$
981
0.3
%
$
(1,874
)
(0.6
)%
$
1,620
0.2
%
$
2,506
0.3
%
________________________________________
(1) Excluding depreciation and amortization, which is shown
separately.
Certain percentage amounts in the table above do not total due
to rounding as well as the fact that components of restaurant-level
operating profit are expressed as a percentage of restaurant
revenue and not total revenues.
Schedule III
Reconciliation of Net Income to EBITDA and
Adjusted EBITDA
(In thousands, unaudited)
The Company defines EBITDA as net income before interest
expense, (benefit) for income taxes, and depreciation and
amortization. EBITDA and adjusted EBITDA are presented because the
Company believes investors’ understanding of our performance is
enhanced by including these non-GAAP financial measures as a
reasonable basis for evaluating our ongoing results of operations
without the effect of non-cash charges such as executive transition
and severance, board and shareholder matter costs, asset
impairments, litigation contingencies, asset disposals, restaurant
closure costs, reorganization costs, executive retention costs and
their related income tax effects. EBITDA and adjusted EBITDA are
supplemental measures of operating performance that do not
represent and should not be considered as alternatives to net
income or cash flow from operations, as determined by GAAP, and our
calculation thereof may not be comparable to that reported by other
companies in our industry or otherwise. Adjusted EBITDA further
adjusts EBITDA to reflect the additions and eliminations shown in
the table below. The use of adjusted EBITDA as a performance
measure permits a comparative assessment of our operating
performance relative to our performance based on our GAAP results,
while isolating the effects of some items that vary from period to
period without any correlation to core operating performance.
Adjusted EBITDA as presented may not be comparable to other
similarly-titled measures of other companies, and our presentation
of adjusted EBITDA should not be construed as an inference that our
future results will be unaffected by excluded or unusual items. We
have not provided a reconciliation of our adjusted EBITDA outlook
to the most comparable GAAP measure of net income. Providing net
income guidance is potentially misleading and not practical given
the difficulty of projecting event-driven transactional and other
non-core operating items that are included in net income, including
asset impairments and income tax valuation adjustments. The
reconciliations of adjusted EBITDA to net income for the historical
periods presented below are indicative of the reconciliations that
will be prepared upon completion of the periods covered by the
non-GAAP guidance.
Twelve Weeks Ended
Twelve Weeks Ended
Twenty-Eight Weeks
Ended
Twenty-Eight Weeks
Ended
July 14, 2019
July 15, 2018
July 14, 2019
July 15, 2018
Net income as reported
$
981
$
(1,874
)
$
1,620
$
2,506
Interest expense, net
2,322
2,458
5,667
5,735
Income tax benefit
(15,986
)
(4,725
)
(16,462
)
(5,493
)
Depreciation and amortization
21,369
22,323
49,807
51,516
EBITDA
$
8,686
$
18,182
$
40,632
$
54,264
Executive transition and severance
$
370
$
—
$
2,364
$
—
Board and shareholder matter costs
1,152
—
1,152
—
Asset impairment
14,064
9,643
14,064
9,643
Litigation contingencies
—
—
—
4,000
Spiral menu disposal
—
506
—
506
Restaurant closure costs
1,001
—
1,305
—
Reorganization costs
—
466
—
2,753
Executive retention
260
—
360
—
Adjusted EBITDA
$
25,533
$
28,797
$
59,877
$
71,166
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190823005040/en/
For media relations questions: Katelyn Kwiatkowski, Coyne
PR (973) 588-2000
For investor relations questions: Raphael Gross, ICR
(203) 682-8253
Red Robin Gourmet Burgers (NASDAQ:RRGB)
Historical Stock Chart
From Jun 2024 to Jul 2024
Red Robin Gourmet Burgers (NASDAQ:RRGB)
Historical Stock Chart
From Jul 2023 to Jul 2024