Bravo Brio Restaurant Group, Inc. Reports Second Quarter Financial Results
Selected Second Quarter 2016 Highlights Compared to the Second Quarter 2015:
- Revenues decreased 4.6% to
$105.2 millionfrom $110.2 million.
- Total comparable restaurant sales decreased 7.1%.
- Comparable restaurant sales decreased 8.4% at BRAVO! and 6.4% at BRIO.
- Restaurant-level operating profit decreased 25.1% to
$13.1 millionfrom $17.5 million.
- GAAP net loss was
$(0.7) million, or $(0.04)per diluted share, compared to GAAP net income of $3.8 million, or $0.24per diluted share.
- Adjusted net income was
$0.9 million, or $0.06per diluted share, compared to adjusted net income of $3.8 million, or $0.24per diluted share. Please see the reconciliation from GAAP to adjusted (non-GAAP) net income in the accompanying financial tables.
O'Malley continued, "We opened two BRAVO!s in the first quarter and we will open a BRIO in the fourth quarter in Torrance, California. We are continuing to evaluate our restaurant portfolio and have closed two BRAVO!s in the third quarter whose leases have expired. Our capital allocation priorities this year are centered on selective reinvestments in our private dining initiative and exploring reimaging options. On a year-to-date basis, we have repurchased
Second Quarter 2016 Financial Results
Total restaurant operating costs, which include costs of sales, labor costs, operating costs and occupancy costs, decreased
GAAP net loss in the second quarter of 2016 was
On an adjusted basis, a measure that the Company believes provides
additional information to facilitate a year-over-year performance comparison, adjusted net income in the second quarter of 2016 was
Second Quarter 2016 Brand Operating Highlights
Comparable restaurant sales decreased 8.4% at BRAVO! and 6.4% at BRIO. Average weekly sales for BRAVO! and BRIO were
During the first quarter of 2016, the Company opened BRAVO restaurants in
The Company is providing the following outlook for the 52-week period ending
- Revenues of
$408 millionto $413 million(previously $424 millionto $432 million).
- Total comparable restaurant sales of minus 5.5% to minus 4.5% (previously minus 2.0%
- Development of three Company-operated restaurants.
- Pre-opening costs of approximately
- GAAP net income per diluted share of
$0.05to $0.10(previously $0.65to $0.73).
- Adjusted net income per diluted share of
$0.15to $0.20, which reflects only those adjustments made during the twenty-six weeks ended June 26, 2016. Please see the reconciliation from GAAP net income to adjusted (non-GAAP) net income in the accompanying financial tables.
- Capital expenditures of
$12.0 millionto $14.0 million.
- Diluted share count of approximately 15.5 million.
- Estimated annual tax rate of approximately 10% (previously 19% to 22%).
Investor Conference Call and Webcast
The Company will host an investor conference call to discuss second quarter 2016 financial results today at
The conference call can be accessed live over the phone by dialing (888) 539-3612 , or for international callers (719) 457-2648. A replay will be available one hour after the call and can be accessed by dialing (877) 870-5176 or (858) 384-5517 for international callers; the conference ID is 9475789. The replay will be available until
The call will also be webcast live and later archived on the Company's investor relations website at http://investors.bbrg.com in the ‘Presentations & Events' section.
Adjusted net income and Adjusted net income per share are supplemental measures of our performance that are not required or presented in accordance with generally accepted accounting principles, or GAAP. These non-GAAP measures may not be comparable to similarly titled measures used by other companies and should not be considered by themselves or as a substitute for measures of performance prepared in accordance with GAAP.
We calculate these non-GAAP measures by adjusting net income and net income per share for the impact of certain non-comparable items that are reflected in our GAAP results. We believe these adjusted measures provide investors with additional information to facilitate the comparison of our past and present financial results and assist users of the financial statements to better understand our results. We utilize results that both include and exclude the identified items in evaluating our business performance. However, our inclusion of these adjusted measures should not be construed as an indication that our future results will not be affected by certain unusual or non-comparable items.
Some of the statements in this release contain forward-looking statements, which involve risks and uncertainties. These statements relate to future events or
|CONSOLIDATED STATEMENTS OF OPERATIONS|
|FOR THE THIRTEEN AND TWENTY-SIX WEEKS ENDED |
|(in thousands except per share data)|
|Thirteen Weeks Ended||Twenty-Six Weeks Ended|
|Costs and expenses|
|Cost of sales||27,235||25.9||%||27,536||25.0||%||55,242||25.8||%||55,442||25.4||%|
|General and administrative expenses||6,574||6.2||%||6,048||5.5||%||13,245||6.2||%||11,830||5.4||%|
|Restaurant preopening costs||73||0.1||%||818||0.7||%||514||0.2||%||1,755||0.8||%|
|Depreciation and amortization||5,547||5.3||%||5,457||4.9||%||11,080||5.2||%||10,895||5.0||%|
|Total costs and expenses||105,518||100.3||%||105,041||95.3||%||211,126||98.7||%||209,558||95.9||%|
|(Loss) income from operations||(305||)||(0.3||)%||5,205||4.7||%||2,887||1.3||%||8,857||4.1||%|
|Interest expense, net||344||0.3||%||384||0.3||%||692||0.3||%||789||0.4||%|
|(Loss) income before income taxes||(649||)||(0.6||)%||4,821||4.4||%||2,195||1.0||%||8,068||3.7||%|
|Income tax expense||5||—||%||982||0.9||%||601||0.3||%||1,696||0.8||%|
|Net (loss) income||$||(654||)||(0.6||)%||$||3,839||3.5||%||$||1,594||0.7||%||$||6,372||2.9||%|
|Net (loss) income per basic share||$||(0.04||)||$||0.25||$||0.11||$||0.42|
|Net (loss) income per diluted share||$||(0.04||)||$||0.24||$||0.10||$||0.40|
|Weighted average shares outstanding-basic||14,597||15,197||14,681||15,159|
|Weighted average shares outstanding-diluted||14,597||15,936||15,331||15,901|
|Certain percentage amounts may not sum due to rounding.|
|ADJUSTMENTS TO RECONCILE GAAP TO ADJUSTED RESULTS|
|Asset impairment charge, net of taxes (1)||$||1,249||$||—||$||1,124||$||—|
|Reserve for uncertain tax positions (2)||265||—||265||—|
|Tax expense from excess tax deficiency for option exercises, net (3)||134||—||134||—|
|Income tax expense (4)||(125||)||—||(125||)||—|
|Adjusted net income||$||869||$||3,839||$||3,117||$||6,372|
|Net income per basic share- adjusted||$||0.06||$||0.25||$||0.21||$||0.42|
|Net income per diluted share- adjusted||$||0.06||$||0.24||$||0.20||$||0.40|
|Weighted average shares outstanding-basic||14,597||15,197||14,681||15,159|
|Weighted average shares outstanding-diluted (5)||15,227||15,936||15,331||15,901|
1) Reflects non-cash asset impairment charges for the thirteen weeks ended
2) Reflects the tax expense associated with the recording of a reserve for an uncertain tax position related to the potential settlement of an
3) Reflects the excess tax deficiency associated with the exercise of stock options during the period.
4) Reflects the adjustments for income taxes, at our effective tax rate, related to impairment charges.
5) Diluted weighted average shares outstanding includes all potentially issuable common shares, except in a loss position, in which case diluted weighted average shares outstanding is equal to basic weighted average shares outstanding.
|CONSOLIDATED BALANCE SHEETS|
|AS OF |
|(Dollars in thousands)|
|Cash and cash equivalents||$||381||$||447|
|Tenant improvement allowance receivable||—||286|
|Prepaid expenses and other current assets||1,252||1,859|
|Total current assets||10,832||15,372|
|Property and equipment — net||164,553||170,463|
|Deferred income taxes — net||57,686||58,054|
|Other assets — net||4,111||4,171|
|Liabilities and stockholders' equity|
|Trade and construction payables||$||14,454||$||16,283|
|Deferred lease incentives||7,256||7,230|
|Deferred gift card revenue||12,506||14,728|
|Total current liabilities||61,651||67,110|
|Deferred lease incentives||56,268||59,553|
|Other long-term liabilities||23,221||23,273|
|Commitments and contingencies|
|Common shares, no par value per share— authorized 100,000,000 shares; 20,434,403 shares issued at ||201,124||200,739|
|Preferred shares, no par value per share— authorized 5,000,000 shares; issued and outstanding, 0 shares at ||—||—|
|Total stockholders' equity||53,342||54,824|
|Total liabilities and stockholders' equity||$||237,182||$||248,060|
Contacts: Investor Relations
Don Duffy/ Raphael Gross(203) 682-8200
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