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

Stocks in this article: IRG

Net income for the second quarter of 2012 was $5.5 million, or $0.25 per diluted share compared to $4.3 million, or $0.22 per diluted share in the second quarter of 2011. Adjusted pro forma net income (which is a non-GAAP financial measure) was $7.4 million, or $0.29 per diluted share in the second quarter of 2012 compared to $3.7 million, or $0.15 per diluted share, in the second quarter of 2011.

Adjusted EBITDA increased to $17.7 million, a 41.9% increase compared to $12.5 in the second quarter of 2011.

The Company opened five new Joe’s Crab Shack restaurants during the second quarter of 2012.

Review of Third Quarter 2012 Operating Results

Total revenues increased $15.9 million, or 14.0%, to $129.1 million from $113.2 million in the same quarter last year. Non-comparable restaurants contributed $15.5 million, or 13.7%, of the total revenue increase, while comparable restaurants contributed $0.4 million, or 0.3%, of the total revenue increase. Total operating weeks for the third quarter of 2012 increased to 1,727 from 1,607 in the third quarter of 2011.

Comparable restaurant sales increased 0.4% for the third quarter of 2012. The increase was driven by a 1.9% increase in pricing, partially offset by a 1.5% combined decrease in mix and guest counts. Average weekly sales increased 6.1% to $74,800 in the third quarter of 2012 from $70,500 in the third quarter of 2011.

Restaurant-level profit increased $4.0 million, or 18.9%, to $25.4 million in the third quarter of 2012 from $21.4 million in the third quarter of 2011. As a percentage of revenues, restaurant-level profit increased to 19.7% from 18.9% in the prior year, driven primarily by improved commodity costs and leverage from increased revenues on occupancy expenses and operating expenses partially offset by increased labor expenses.

General and administrative expenses increased $2.2 million to $7.4 million compared to $5.2 million in third quarter of 2011. General and administrative expenses increased in the third quarter of 2012 due to approximately $1.0 million of professional fees related to the Company’s restatement of its financial statements and increased staffing and professional fees associated with our being a public company.

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