This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Ignite Restaurant Group Announces Completion Of Restatement, Refinancing Transaction And Second And Third Quarter Results

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of the federal securities laws. Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond the Company’s control. The Company cautions you that the forward-looking information presented in this press release is not a guarantee of future events, and that actual events and results may differ materially from those made in or suggested by the forward-looking information contained in this press release. In addition, forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “plan,” “seek,” “comfortable with,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe” or “continue” or the negative thereof or variations thereon or similar terminology. Examples of forward-looking statements in this press release include the expected impact of the revised accounting policies, the refinancing and related fees and charges in fiscal year 2012 and 2013 and the effectiveness of investments and new measures in the Company’s accounting and finance function to improve its internal controls over financial reporting.

A number of other important factors could cause actual events and results to differ materially from those contained in or implied by the forward-looking statements included in this press release, including the risk factors discussed in the Company’s Registration Statement on Form S-1/A, filed on May 8, 2012 with the SEC, as supplemented by the risk factors included in the Company’s Quarterly Report on Form 10-Q for the twelve and twenty-four weeks ended June 18, 2012 (which can both be found at the SEC’s website www.sec.gov) and each such risk factor is specifically incorporated into this press release. Any forward-looking information presented herein is made only as of the date of this press release, and the Company does not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

       

IGNITE RESTAURANT GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(Unaudited)

 
Twelve Weeks Ended Thirty-Six Weeks Ended
September 10, 2012   September 12, 2011 September 10, 2012   September 12, 2011
(As restated) (As restated)
 
Revenues $ 129,137 $ 113,233 $ 352,453 $ 303,852
Costs and expenses
Restaurant operating costs
Cost of sales 40,363 36,043 110,450 95,566
Labor and benefits 33,411 28,943 93,428 81,771
Occupancy expenses 8,196 7,683 23,445 21,540
Other operating expenses 21,996 19,440 60,219 53,376
General and administrative 7,374 5,220 21,641 16,397
Depreciation and amortization 4,404 3,856 12,553 10,737
Pre-opening costs 551 1,222 3,509 3,448
Restaurant impairments and closures 27 15 133 52
Loss on disposal of property and equipment 180 90 440 354
Total costs and expenses 116,502 102,512 325,818 283,241
Income from operations 12,635 10,721 26,635 20,611
Interest expense, net (1,229 ) (1,960 ) (5,994 ) (6,484 )
Gain on insurance settlements 1 217 1
Income before income taxes 11,406 8,762 20,858 14,128
Income tax expense 2,481 530 4,562 1,058
Net income $ 8,925 $ 8,232 $ 16,296 $ 13,070
 
Basic and diluted net income per share data:
Net income per share
Basic and diluted $ 0.35 $ 0.43 $ 0.73 $ 0.68
Weighted average shares outstanding
Basic 25,624 19,178 22,312 19,178
Diluted 25,627 19,178 22,313 19,178
 
       

IGNITE RESTAURANT GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(Unaudited)

 
Twelve Weeks Ended Twenty-Four Weeks Ended
June 18, 2012   June 20, 2011 June 18, 2012   June 20, 2011
(As restated) (As restated)
 
Revenues $ 119,886 $ 103,188 $ 223,316 $ 190,619
Costs and expenses
Restaurant operating costs
Cost of sales 37,172 32,004 70,087 59,523
Labor and benefits 31,970 28,262 60,017 52,828
Occupancy expenses 7,717 7,260 15,249 13,857
Other operating expenses 19,655 18,465 38,223 33,936
General and administrative 8,044 5,596 14,267 11,177
Depreciation and amortization 4,200 3,558 8,149 6,881
Pre-opening costs 1,430 1,241 2,958 2,226
Restaurant impairments and closures 57 9 106 37
Loss on disposal of property and equipment 171 119 260 264
Total costs and expenses 110,416 96,514 209,316 180,729
Income from operations 9,470 6,674 14,000 9,890
Interest expense, net (2,768 ) (1,966 ) (4,765 ) (4,524 )
Gain on insurance settlements 217 217
Income before income taxes 6,919 4,708 9,452 5,366
Income tax expense 1,433 414 2,081 528
Net income $ 5,486 $ 4,294 $ 7,371 $ 4,838
 
Basic and diluted net income per share data:
Net income per share
Basic and diluted $ 0.25 $ 0.22 $ 0.36 $ 0.25
Weighted average shares outstanding
Basic 22,136 19,178 20,666 19,178
Diluted 22,137 19,178 20,666 19,178
 
         

IGNITE RESTAURANT GROUP, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except par value)

 
September 10, 2012 January 2, 2012
(Unaudited) (As restated)
ASSETS
Current assets
Cash and cash equivalents $ 49,245 $ 3,725
Accounts receivable 6,104 7,848
Inventories 5,643 4,179
Deferred tax assets 868 905
Prepaid rent and other current assets 3,735 5,190
Total current assets 65,595 21,847
 
Property and equipment, net 165,696 143,021
Trademarks, net 1,891 2,198
Deferred charges, net 2,663 4,035
Deferred tax assets 3,402 3,741
Other assets 2,082 2,993
Total assets $ 241,329 $ 177,835
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable $ 15,635 $ 14,157
Accrued liabilities 25,678 20,390
Current portion of debt obligations 3,007
Total current liabilities 41,313 37,554
 
Long-term debt obligations 74,500 114,750
Deferred rent 10,634 8,554
Other long-term liabilities 1,280 1,178
Total liabilities 127,727 162,036
 
Commitments and contingencies
 
Stockholders’ equity
Common stock, $0.01 par value per share, 500,000 shares authorized; 25,636 and 19,178 shares issued and outstanding, respectively 256 192
Additional paid-in capital 85,531 4,088
Accumulated earnings 27,815 11,519
Total stockholders’ equity 113,602 15,799
Total liabilities and stockholders’ equity $ 241,329 $ 177,835
 
 

TABLE 1—Reconciliation of net income to Adjusted EBITDA (in thousands, except percentages):

       
Twelve Weeks Ended Twenty-Four Weeks Ended
June 18, 2012   June 20, 2011 June 18, 2012   June 20, 2011
(As restated) (As restated)
Net income $ 5,486 $ 4,294 $ 7,371 $ 4,838
Income tax expense 1,433 414 2,081 528
Interest expense, net 2,768 1,966 4,765 4,524
Depreciation and amortization 4,200 3,558 8,149 6,881
EBITDA 13,887 10,232 22,366 16,771
Adjustments:
Deferred rent (1) 333 412 790 807
Restaurant impairments and closures (2) 57 9 106 37
Non-cash loss on disposal of property and equipment (3) 145 112 234 245
Sponsor management fees (4) 115 218 387 490
Gain on insurance settlements (5) (217 ) (217 )
Pre-opening costs (6) 1,430 1,241 2,958 2,226
Transaction costs (7) 1,674 205 1,714 205
Stock-based compensation (8) 231 240
Other expenses (9) 53 53 57 238
Adjusted EBITDA $ 17,708 $ 12,482 $ 28,635 $ 21,019
Adjusted EBITDA margin (10) 14.8 % 12.1 % 12.8 % 11.0 %
 
       
Twelve Weeks Ended Thirty-Six Weeks Ended
September 10, 2012   September 12, 2011 September 10, 2012   September 12, 2011
(As restated) (As restated)
Net income $ 8,925 $ 8,232 $ 16,296 $ 13,070
Income tax expense 2,481 530 4,562 1,058
Interest expense, net 1,229 1,960 5,994 6,484
Depreciation and amortization 4,404 3,856 12,553 10,737
EBITDA 17,039 14,578 39,405 31,349
Adjustments:
Deferred rent (1) 314 428 1,104 1,235
Restaurant impairments and closures (2) 27 15 133 52
Non-cash loss on disposal of property and equipment (3) 180 83 414 328
Sponsor management fees (4) 244 387 734
Gain on insurance settlements (5) (1 ) (217 ) (1 )
Pre-opening costs (6) 551 1,222 3,509 3,448
Transaction costs (7) 55 1,714 260
Stock-based compensation (8) 191 30 431 30
Other expenses (9) 32 30 89 268
Adjusted EBITDA $ 18,334 $ 16,684 $ 46,969 $ 37,703
Adjusted EBITDA margin (10) 14.2 % 14.7 % 13.3 % 12.4 %
 

(1) Deferred rent represents the non-cash rent expense calculated as the difference in GAAP rent expense in any year and amounts payable in cash under the leases during the year. In measuring the Company’s operational performance, it focuses on its cash rent payments.

11 of 14

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,172.68 -107.06 -0.62%
S&P 500 1,994.29 -16.11 -0.80%
NASDAQ 4,527.6890 -52.10 -1.14%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs