Selected Highlights for the Second Quarter of 2011 as Compared to the Second Quarter of 2010 Include the Following:
Selected Highlights for the Year-to-Date 2011 as Compared to the Year-Ago Period Include the Following:
"We are encouraged by the positive comparable sales and traffic trends we experienced on a consolidated basis during the quarter, which exemplify the appreciation our guests have for the exceptional experience we provide them at every dining occasion. We will continue to focus on executing at the highest level in each of our restaurants to ensure that we are creating highly satisfied, life long guests. Our business model is stronger than it has ever been, and our distinct restaurant concepts are well positioned in the marketplace with significant room for expansion. We are also pleased to be raising our 2011 development outlook to eight restaurants, including two openings in the third quarter and four openings in the fourth quarter," said
Second Quarter 2011 Financial Results
Revenues increased
Total restaurant operating costs increased
GAAP net income attributed to common shareholders for the second quarter of 2011 was
On a modified pro forma basis, a measure that management believes offers a more useful year-over-year performance comparison, modified pro forma net income for the second quarter of 2011 was
Second Quarter 2011 Brand Operating Highlights
Comparable restaurant sales at BRIO increased 2.4% in the second quarter of 2011 and average weekly sales were
As of
Outlook
Based upon our results as of
Investor Conference Call and Webcast
The Company will host an investor conference call to discuss second quarter 2011 financial results today at
The conference call can be accessed live over the phone by dialing (888) 430-8690, or for international callers, (719) 325-2109. A replay will be available one hour after the call and can be accessed by dialing (877) 870-5176 or for international callers, (858) 384-5517; the conference ID is 4761517. The replay will be available until
The call will be webcast live from the Company's investor relations website at http://investors.bbrg.com.
About
Forward-Looking Statements
Some of the statements in this release contain forward-looking statements, which involve risks and uncertainties. These statements relate to future events or our future financial performance. We have attempted to identify forward-looking statements by terminology including "anticipates," "believes," "can," "continue," "could," "estimates," "expects," "intends," "may," "plans," "potential," "predicts," "should" or "will" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties, and other factors, including those discussed under the heading "Risk Factors" in our Annual Report on Form 10-K filed with the
Although we believe that the expectations reflected in the forward-looking statements are reasonable based on our current knowledge of our business and operations, we cannot guarantee future results, levels of activity, performance or achievements. We assume no obligation to provide revisions to any forward-looking statements should circumstances change.
| BRAVO BRIO RESTAURANT GROUP, INC. | ||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS -- | ||||||||
| GAAP PRESENTATION WITH RECONCILIATION TO MODIFIED PRO FORMA | ||||||||
| THIRTEEN AND TWENTY-SIX WEEKS ENDED JUNE 26, 2011 AND JUNE 27, 2010 | ||||||||
| (Dollars in thousands, except per share data) | ||||||||
| Thirteen Weeks | Thirteen Weeks | Twenty-Six Weeks | Twenty-Six Weeks | |||||
| Ended | Ended | Ended | Ended | |||||
| June 26, | June 27, | June 26, | June 27, | |||||
| 2011 | 2010 | 2011 | 2010 | |||||
| Revenues | $ 94,400 | $ 89,152 | $ 184,818 | $ 170,996 | ||||
| Costs and expenses | ||||||||
| Cost of sales | 25,102 | 26.6% | 23,032 | 25.8% | 49,391 | 26.7% | 44,389 | 26.0% |
| Labor | 31,679 | 33.6% | 30,004 | 33.7% | 62,163 | 33.6% | 58,100 | 34.0% |
| Operating | 14,407 | 15.3% | 13,807 | 15.5% | 28,430 | 15.4% | 26,560 | 15.5% |
| Occupancy | 6,310 | 6.7% | 5,785 | 6.5% | 12,160 | 6.6% | 11,310 | 6.6% |
| General and administrative expenses | 4,869 | 5.2% | 4,589 | 5.1% | 10,882 | 5.9% | 8,987 | 5.3% |
| Restaurant preopening costs | 1,058 | 1.1% | 480 | 0.5% | 1,601 | 0.9% | 1,685 | 1.0% |
| Asset impairment | -- | 0.0% | -- | 0.0% | -- | 0.0% | 0.0% | |
| Depreciation and amortization | 4,146 | 4.4% | 4,211 | 4.7% | 8,252 | 4.5% | 8,335 | 4.9% |
| Total costs and expenses | 87,571 | 92.8% | 81,908 | 91.9% | 172,879 | 93.5% | 159,366 | 93.2% |
| Income from operations | 6,829 | 7.2% | 7,244 | 8.1% | 11,939 | 6.5% | 11,630 | 6.8% |
| Loss on Extinguishment of Debt | -- | -- | -- | -- | ||||
| Net interest expense | 441 | 0.5% | 1,773 | 2.0% | 921 | 0.5% | 3,543 | 2.1% |
| Income before income taxes | 6,388 | 6.8% | 5,471 | 6.1% | 11,018 | 6.0% | 8,087 | 4.7% |
| Income tax (benefit) expense | (57,010) | -60.4% | 4 | 0.0% | (56,927) | -30.8% | 104 | 0.1% |
| Net income | 63,398 | 67.2% | 5,467 | 6.1% | 67,945 | 36.8% | 7,983 | 4.7% |
| Undeclared preferred dividends | -- | (3,090) | -- | (6,179) | ||||
| Net income attributed to common shareholders | $ 63,398 | $ 2,377 | $ 67,945 | $ 1,804 | ||||
| Basic shares | 19,277 | 7,234 | 19,264 | 7,234 | ||||
| Basic earnings per share | $ 3.29 | $ 0.33 | $ 3.53 | $ 0.25 | ||||
| Diluted shares | 20,547 | 7,234 | 20,542 | 7,234 | ||||
| Diluted earnings per share | $ 3.09 | $ 0.33 | $ 3.31 | $ 0.25 | ||||
| Certain percentage amounts may not sum due to rounding. | ||||||||
| ADJUSTMENTS TO RECONCILE GAAP TO MODIFIED PRO FORMA RESULTS | ||||||||
| Management Fees (1) | -- | 475 | -- | 893 | ||||
| Incremental Public Company Costs (2) | -- | (306) | -- | (612) | ||||
| Stock Compensation Costs (3) | -- | (450) | -- | (900) | ||||
| Interest Expense (4) | -- | 1,321 | -- | 2,555 | ||||
| Income Tax Expense (5) | (1,751) | (1,949) | (3,237) | (2,903) | ||||
| Reduction in Valuation Allowance (6) | (57,175) | (57,175) | ||||||
| Undeclared Preferred Dividends (7) | -- | 3,090 | -- | 6,179 | ||||
| Secondary Offering Costs (8) | -- | -- | 600 | -- | ||||
| Total Adjustments | (58,926) | 2,181 | (59,812) | 5,212 | ||||
| Modified Pro Forma Net Income | $ 4,472 | $ 4,558 | $ 8,133 | $ 7,016 | ||||
| Basic Shares - Pro Forma | 19,277 | 19,250 | 19,264 | 19,250 | ||||
| Basic Earnings Per Share - Pro Forma | $ 0.23 | $ 0.24 | $ 0.42 | $ 0.36 | ||||
| Diluted Shares - Pro Forma | 20,547 | 20,600 | 20,542 | 20,600 | ||||
| Diluted Earnings Per Share - Pro Forma | $ 0.22 | $ 0.22 | $ 0.40 | $ 0.34 | ||||
| Notes to adjustments shown above: | ||||||||
| 1. Represents management fees and expenses paid to our private equity sponsors which were incurred prior to our initial public offering. | ||||||||
| 2. Represents the estimate, in 2010, of additional recurring incremental legal, accounting, insurance and other compliance costs we expect to incur as a public company. | ||||||||
| 3. Represents the estimate, in 2010, of recurring stock compensation expense related to restricted shares issued pursuant to the Bravo Brio Restaurant Group, Inc. Stock Incentive Plan which was approved by our board of directors and shareholders in October, 2010. | ||||||||
| 4. Represents an adjustment to interest expense, in 2010, assuming the receipt of proceeds from our initial public offering and the use of such proceeds to pay down debt at the beginning of fiscal 2009. | ||||||||
| 5. This adjustment reflects a tax rate of 30.0%, which reflects our estimate of our long-term effective tax rate. | ||||||||
| 6. This adjustment reflects the reduction of a significant portion of our valuation allowance in the second quarter of 2011 as it was deemed more likely than not that the Company would utilize its future net deferred tax assets. | ||||||||
| 7. Our Series A preferred shares plus cumulative undeclared dividends thereon were converted to common shares pursuant to the exchange agreement executed in connection with our initial public offering in October 2010. | ||||||||
| 8. Reflects the non-recurring costs, incurred by us, associated with the secondary offering of our common shares by certain of the Company's existing shareholders, completed on April 1, 2011. We did not receive any proceeds from the offering. | ||||||||
CONTACT: Investor Relations
Don Duffy /Raphael Gross
(203) 682-8200
investors@bbrg.com
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