This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

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

Stocks in this article: IRG

Jeffrey L. Rager, Chief Financial Officer for the Ignite Restaurant Group, Inc. added, “We are pleased to have secured this new debt facility at favorable rates, which we believe is a testament to the long-term potential of our business. Not only does it provide a significant savings opportunity, but we have strengthened our capital structure and maintained ample access to liquidity. With this facility in place, we are well positioned to continue to execute our business strategies and grow our brands.”

Projected Impact of Revised Accounting Policies, Refinancing and Related Fees and Charges on Future Periods

The projected range of the impact of revised accounting policies necessary in light of the restatement, the refinancing and related fees and charges on income before income taxes for fiscal years 2012 and 2013 is detailed in the table below (amounts in thousands):

Fiscal Year 2012 (Unf)/Fav Fiscal Year 2013 (Unf)/Fav
(Low)   (High) (Low)   (High)
Revised accounting policies
General and administrative expenses $ 200 $ 200 $ $
Repairs and maintenance expense (400 ) (500 ) (400 ) (500 )
Loss on disposal of property and equipment (400 ) (500 ) (400 ) (500 )
Deferred rent (1,500 ) (1,600 ) (2,200 ) (2,700 )
Total impact of revised accounting policies $ (2,100 ) $ (2,400 ) $ (3,000 ) $ (3,700 )
Impact of refinancing $ 600 $ 400 $ 3,700 $ 3,500
Impact before fees and charges $ (1,500 ) $ (2,000 ) $ 700 $ (200 )
Related fees and charges
One-time professional fees associated with restatement $ (2,250 ) $ (2,250 ) $ $
Loss on extinguishment of debt from refinancing (2,200 ) (2,200 )
Total impact of related fees and charges (4,450 ) (4,450 )
Total impact on income before income taxes $ (5,950 ) $ (6,450 ) $ 700 $ (200 )

The revised accounting policies in light of the restatement will not impact fiscal years 2012 or 2013 revenues, comparable restaurant sales or free cash flows. Free cash flows are expected to be favorably impacted during both periods as a result of the lower interest rate of the Company’s new credit facility compared to the prior credit facility.

The Company’s estimates regarding the impact of the revised accounting policies on future periods are projections based on its current expectations and its general performance outlook. There can be no assurance that the actual impact of the revised accounting policies on future periods will not differ materially from these estimates. The projected impact of the revised accounting policies driven by the restatement in future periods is based on a number of key assumptions, including: (1) repairs and maintenance expenses and loss on disposals will remain relatively consistent with the restated average levels experienced between fiscal year 2009 through 2011 and excludes the potential impacts of any catastrophic events that may impact the Company’s restaurants during fiscal 2012 or 2013 and the potential impacts of conversions, remodels or closures; and (2) new unit openings will be at projected levels for fiscal year 2012 and 2013 with average investments consistent with recent restaurant openings.

5 of 14

Select the service that is right for you!

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 17,912.95 +108.15 0.61%
S&P 500 2,075.58 +4.93 0.24%
NASDAQ 4,778.4320 +13.0520 0.27%

Brokerage Partners

Rates from

  • 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