Initial Public Offering
On July 27, 2012, following the end of the second quarter of 2012, the Company successfully completed its initial public offering (IPO) of common shares at $13.00 per share. The Company issued 6,708,332 shares of common stock, including 874,999 shares sold to the underwriters in the IPO pursuant to their over-allotment option. The Company received net proceeds from the offering of approximately $79.4 million after underwriter discounts and commissions and estimated offering expenses. These net proceeds have been used to repay approximately $79.4 million of the Company’s loans outstanding under the Company’s credit facility. The total outstanding debt under the credit facility after the repayment was approximately $5.0 million.
Second Quarter 2012 Financial Results
Revenue increased $10.5 million, or 32.0%, to $43.5 million in the second quarter of 2012 compared to $33.0 million in the second quarter of 2011. The increase was driven by $10.1 million in incremental revenue from an additional 113 operating weeks provided by eleven new restaurants opened during and subsequent to the second quarter of 2011. Comparable restaurant sales increased 1.9% during the second quarter of 2012. The increase was driven by a 1.6% increase in average check and a 0.3% increase in average weekly customers.Total restaurant operating costs decreased as a percent of revenues to 78.8% in the second quarter of 2012 from 79.7% in the second quarter of 2011, driven largely by the impact of favorable food costs, particularly produce and dairy costs, partially offset by increases in labor and occupancy costs at certain non-comparable restaurants. Net income available to common stockholders for the second quarter of 2012 was $31,000, or $0.15 per diluted share, compared to $8,000, or $0.04 per diluted share, in the second quarter of 2011. Pro forma net income increased 39.9% to $2.7 million, or $0.17 per diluted share in the second quarter of 2012, from $2.0 million, or $0.12 per diluted share, in the second quarter of 2011. A reconciliation between GAAP net income and pro forma net income is included in the accompanying financial data.