Earnings
BJ's announces 2010 earnings
February 19, 2011 · 0 Comments
HUNTINGTON BEACH, Calif., Feb 10, 2011 (Hospitality Business News) — BJ’s Restaurants, Inc. (Nasdaq:BJRI) today reported financial results for the fourth quarter and fiscal year 2010 that ended on Tuesday, December 28, 2010.
Highlights for the 13 weeks ended December 28, 2010, compared to the 13 weeks ended December 29, 2009, were as follows:
– Total revenues increased 18% to $132.9 million
– Comparable restaurant sales increased 5.9%
– Net income and diluted net income per share were $6.9 million and $0.24, respectively
– Two new restaurants opened
– Total restaurant operating weeks increased approximately 12%
Results for the fourth quarter of fiscal 2010 include an after-tax benefit of approximately $0.7 million or $0.02 per diluted share primarily due to a favorable tax rate adjustment associated with disqualifying dispositions related to incentive stock options (“ISO”). Additionally, in the fourth quarter of fiscal 2009, the Company recorded an after-tax charge of approximately $1.6 million or $0.06 per diluted share related to a loss and related legal costs for the disposition of the Company’s entire auction rate securities (“ARS”) portfolio. Excluding both of these items from each year’s quarterly results, non-GAAP net income and diluted net income per share for the fourth quarter of fiscal 2010 would have increased by 90% and 83%, respectively, to $6.3 million and $0.22 compared to non-GAAP results for the same quarter last year. A reconciliation between GAAP and these non-GAAP financial measures is included in the accompanying financial data.
Highlights for the 52 weeks ended December 28, 2010, compared to the 52 weeks ended December 29, 2009, were as follows:
– Total revenues increased 20% to $513.9 million
– Comparable restaurant sales increased 5.6%
– Net income and diluted net income per share were $23.2 million and $0.82, respectively
– Ten new restaurants opened
– Total restaurant operating weeks increased approximately 13%
Excluding the two aforementioned after-tax items for both fiscal 2010 and 2009, non-GAAP net income and diluted net income per share for fiscal 2010 would have increased by 53% and 51%, respectively, to $22.5 million and $0.80 compared to non-GAAP results for fiscal 2009. A reconciliation between GAAP and these non-GAAP financial measures is included in the accompanying financial data.
“Our leadership team was very pleased with BJ’s strong financial performance for both the fourth quarter and full year of 2010,” commented Jerry Deitchle, Chairman and Chief Executive Officer. “Despite the difficult operating environment during the past couple of years, we made a decision to continue prudently investing in the quality of the BJ’s restaurant concept and the strength of our support infrastructure, thereby protecting our brand and our longer-term growth opportunity. As a result, fiscal 2010 was a very successful year for BJ’s. Not only did we achieve our targeted capacity growth by opening ten successful new restaurants this past year, we also achieved four consecutive quarters of solidly positive comparable restaurant sales that resulted in a 5.6% increase in that metric for the full year. Taken together, our capacity growth and comparable restaurant sales growth enabled BJ’s to surpass the half-billion dollar sales milestone during fiscal 2010. Just as important, we were able to achieve better leverage of our sales increases to our bottom-line performance as a result of more effective operational execution in all aspects of our business. We look forward to the challenge of surpassing this performance during the upcoming year.”
Two new restaurants opened during the fourth quarter of 2010 (Puente Hills, CA and Shenandoah, TX). “Sales volumes for all of our new restaurant openings during 2010 remain strong,” commented Deitchle. As previously announced, the Company currently expects to open as many as 12 to 13 new restaurants during 2011. Two new restaurant openings are currently planned for the latter half of the first quarter of 2011 (Tyler, TX and Sacramento, CA). As of this date, the Company expects to open as many as three new restaurants in the second quarter, four new restaurants in the third quarter and as many as three or four new restaurants during the fourth quarter. Investors are reminded that the actual number and timing of new restaurant openings is subject to a number of factors outside of the Company’s control, including weather conditions and factors under the control of landlords, contractors and regulatory/licensing authorities.
Investor Conference Call and Webcast
BJ’s Restaurants, Inc. will conduct a conference call on its fourth quarter and fiscal year 2010 earnings release today, February 10, 2011, at 2:00 p.m. (Pacific Time). The Company will provide an Internet simulcast, as well as a replay of the conference call. To listen to the conference call, please visit the “Investors” page of the Company’s website located at http://www.bjsrestaurants.com several minutes prior to the start of the call to register and download any necessary audio software. An archive of the presentation will be available for 30 days following the call.
BJ’s Restaurants, Inc. currently owns and operates 102 casual dining restaurants under the BJ’s Restaurant & Brewery, BJ’s Restaurant & Brewhouse or BJ’s Pizza & Grill brand names. BJ’s restaurants offer an innovative and broad menu featuring award-winning, signature deep-dish pizza complemented with generously portioned salads, appetizers, sandwiches, soups, pastas, entrees and desserts. Quality, flavor, value, moderate prices and sincere service remain distinct attributes of the BJ’s experience. The Company operates several microbreweries which produce and distribute BJ’s critically acclaimed handcrafted beers throughout the chain. The Company’s restaurants are located in California (51), Texas (20), Arizona (6), Colorado (4), Oregon (2), Nevada (4), Florida (6), Ohio (2), Oklahoma (2), Kentucky (1), Indiana (1), Louisiana (1) and Washington (2). Visit BJ’s Restaurants, Inc. on the Web at http://www.bjsrestaurants.com.
Certain statements in the preceding paragraphs and all other statements that are not purely historical constitute “forward-looking” statements for purposes of the Securities Act of 1933 and the Securities and Exchange Act of 1934, as amended, and are intended to be covered by the safe harbors created thereby. Such statements include, but are not limited to, those regarding expected comparable restaurant sales growth in future periods, those regarding the effect of new sales-building initiatives, as well as those regarding the number of restaurants expected to be opened in future periods and the timing and location of such openings. These “forward-looking” statements involve known and unknown risks, uncertainties and other factors which may cause actual results to be materially different from those projected or anticipated. Factors that might cause such differences include, but are not limited to: (i) the effect of recent credit and equity market disruptions on our ability to finance our continued expansion on acceptable terms, (ii) our ability to manage an increasing number of new restaurant openings, (iii) construction delays, (iv) labor shortages, (v) minimum wage increases, (vi) food quality and health concerns, (vii) factors that impact California, where 51 of our current 102 restaurants are located, (viii) restaurant and brewery industry competition, (ix) impact of certain brewery business considerations, including without limitation, dependence upon suppliers and related hazards, (x) consumer spending trends in general for casual dining occasions, (xi) potential uninsured losses and liabilities, (xii) fluctuating commodity costs and availability of food in general and certain raw materials related to the brewing of our handcrafted beers and energy, (xiii) trademark and service-mark risks, (xiv) government regulations, (xv) licensing costs, (xvi) beer and liquor regulations, (xvii) loss of key personnel, (xviii) inability to secure acceptable sites, (xix) limitations on insurance coverage, (xx) legal proceedings, (xxi) other general economic and regulatory conditions and requirements, (xxii) the success of our key sales-building and related operational initiatives and (xxiii) numerous other matters discussed in the Company’s filings with the Securities and Exchange Commission. BJ’s Restaurants, Inc. undertakes no obligation to update or alter its “forward-looking” statements whether as a result of new information, future events or otherwise.
Further information concerning the Company’s results of operations for fourth quarter 2010 will be provided in the Company’s Form 10-K filing, to be filed with the Securities and Exchange Commission by March 13, 2011.
BJ’s Restaurants, Inc.
Unaudited Consolidated Statements of Income
(Dollars in thousands except for per share data)
Thirteen Weeks Ended Fifty-Two Weeks Ended
————————————- ————————————-
December 28, December 29, December 28, December 29,
2010 2009 2010 2009
—————– —————— —————– ——————
Revenues $132,896 100.0% $112,635 100.0% $513,860 100.0% $426,707 100.0%
Costs and expenses:
Cost of sales 32,949 24.8 28,132 25.0 126,078 24.5 106,484 25.0
Labor and benefits 45,424 34.2 39,356 34.9 178,199 34.7 149,075 34.9
Occupancy and operating 28,273 21.3 24,598 21.8 109,566 21.3 92,204 21.6
General and
administrative 8,941 6.7 7,694 6.8 34,632 6.7 29,484 6.9
Depreciation and
amortization 7,751 5.8 6,414 5.7 28,878 5.6 24,119 5.7
Restaurant opening 971 0.7 2,174 1.9 5,189 1.0 5,327 1.2
Loss on disposal of
assets 140 0.1 312 0.3 1,164 0.2 312 0.1
——— —— ——— ——- ——— —— ——— ——-
Total costs and expenses 124,449 93.6 108,680 96.4 483,706 94.0 407,005 95.4
——— —— ——— ——- ——— —— ——— ——-
Income from operations 8,447 6.4 3,955 3.6 30,154 6.0 19,702 4.6
Other income (expense):
Interest income 32 – 37 – 124 – 292 0.1
Interest expense (24) – (20) – (90) – (78) –
Loss on ARS investment
disposition – – (1,709) (1.5) – – (1,709) (0.4)
Other income, net 121 0.1 133 0.1 612 0.1 379 0.1
——— —— ——— ——- ——— —— ——— ——-
Total other income
(expense) 129 0.1 (1,559) (1.4) 646 0.1 (1,116) (0.2)
——— —— ——— ——- ——— —— ——— ——-
Income before income taxes 8,576 6.5 2,396 2.2 30,800 6.1 18,586 4.4
Income tax expense 1,639 1.2 675 0.6 7,638 1.5 5,548 1.3
——— —— ——— ——- ——— —— ——— ——-
Net income $ 6,937 5.3% $ 1,721 1.6% $ 23,162 4.6% $ 13,038 3.1%
========= ====== ========= ======= ========= ====== ========= =======
Net income per share:
Basic $ 0.25 $ 0.06 $ 0.86 $ 0.49
========= ========= ========= =========
Diluted $ 0.24 $ 0.06 $ 0.82 $ 0.48
========= ========= ========= =========
Weighted average number of
shares outstanding:
Basic 27,252 26,774 27,073 26,750
========= ========= ========= =========
Diluted 28,688 27,298 28,167 27,147
========= ========= ========= =========
Selected Consolidated Balance Sheet Information
(Dollars in thousands)
December December
28, 29,
2010 2009
Balance Sheet Data (end of period): (unaudited) (audited)
———– ———-
Cash, cash equivalents and short-term
investments $ 53,192 $ 44,906
Non-current investments $ 1,005 $ –
Total assets $ 430,085 $ 381,122
Total long-term debt, including current
portion $ – $ 5,000
Shareholders’ equity $ 287,826 $ 252,979
Supplemental Information
(Dollars in thousands)
Thirteen Weeks Ended Fifty-Two Weeks Ended
———————————————————————
December 28, December 29, December 28, December 29,
2010 2009 2010 2009
———————————————————————
Stock-based compensation (1)
Labor and benefits $ 352 0.3% $ 231 0.2% $1,123 0.2% $ 602 0.1%
General and administrative 704 0.5 588 0.5 2,882 0.6 2,312 0.5
———————————————————————
Total stock based compensation $1,056 0.8% $ 819 0.7% $4,005 0.8% $2,914 0.6%
=====================================================================
Unaudited Operating Data
Comparable restaurant sales %
change 5.9% -0.2% 5.6% -0.8%
Restaurants opened during period 2 5 10 10
Restaurants open at period-end 102 92 102 92
Restaurant operating weeks 1,319 1,176 5,026 4,455
(1) Percentages represent percent of total revenues.
By erichertha
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