This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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!

Diversified Restaurant Holdings Reports Fourth Quarter Revenue Up 62.4%

Stocks in this article: DFRH

FINANCIAL TABLES TO FOLLOW

         
         
DIVERSIFIED RESTAURANT HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
         
  Three Months Ended  Twelve Months Ended 
   December 30   December 25   December 30   December 25 
  2012 2011 2012 2011
Revenue        
Food and beverage sales $26,119,920 $16,040,094 $77,435,684 $60,657,475
Franchise royalties and fees 3,987 50,000 11,524 50,000
Total revenue 26,123,907 16,090,094 77,447,208 60,707,475
         
Operating expenses        
Restaurant operating costs (exclusive of depreciation and amortization shown separately below):
Food, beverage, and packaging 8,213,106 4,803,476 24,117,399 17,486,880
Compensation costs 6,607,849 4,137,504 19,448,210 15,226,145
Occupancy 1,502,639 902,923 4,289,966 3,291,339
Other operating costs 4,810,163 3,228,841 15,008,171 11,854,581
General and administrative expenses 2,257,353 1,547,116 6,585,908 5,023,212
Pre-opening costs 1,244,292 310,616 1,792,168 714,330
Depreciation and amortization 1,656,704 987,711 4,587,310 3,479,360
Loss on disposal of property and equipment 6,856 1,308 36,833 31,465
Total operating expenses 26,298,962 15,919,495 75,865,965 57,107,312
         
Operating profit (loss) (175,055) 170,599 1,581,243 3,600,163
         
Change in fair value of derivative instruments  -- 98,431 (43,361) (246,818)
Interest expense (439,428) (261,357) (1,282,991) (1,137,725)
Other income (expense), net (342,079) 328,658 20,081 366,497
         
Income (loss) before income taxes (956,562) 336,331 274,972 2,582,117
         
Income tax provision (benefit) (333,554) (230,575) (167) 586,086
         
Net income (loss) (623,008) 566,906 275,139 1,996,031
         
Less: (Income) attributable to noncontrolling interest  --  (38,613) (95,040) (153,845)
Net income (loss) attributable to DRH  $ (623,008)  $ 528, 293 $180,099 $1,842,186
         
Basic earnings (loss) per share  $ (0.03)  $ 0.03 $0.01 $0.10
Fully diluted (loss) earnings per share   $ (0.03)  $ 0.03 $0.01 $0.10
         
Weighted-average number of common shares outstanding        
Basic 18,949,556 18,902,782 18,949,556 18,902,782
Diluted 19,091,849 19,055,500 19,091,849 19,055,500
 
 
DIVERSIFIED RESTAURANT HOLDINGS, INC. AND SUBSIDIARIES
 CONSOLIDATED BALANCE SHEETS (UNAUDITED)
 
   December 30  December 25
ASSETS 2012 2011
Current assets    
Cash and cash equivalents  $   2,700,328  $  1,537,497
Accounts receivable   248,403  20,497
Inventory   809,084  601,765
Prepaid assets     447,429  207,608
Total current assets  4,205,244  2,367,367
     
Deferred income taxes  846,746  272,332
Property and equipment, net - restricted assets of VIE    --    1,457,770
Property and equipment, net    40,286,490  22,064,544
Intangible assets, net  2,509,337  1,113,997
Goodwill  8,578,776  --
Other long-term assets  118,145  74,389
     
Total assets  $ 56,544,738  $ 27,350,399
     
LIABILITIES AND STOCKHOLDERS' EQUITY     
Current liabilities    
Accounts payable  $ 3,952,017  $ 1,682,462
Accrued compensation  1,647,075  760,548
Other accrued liabilities    1,013,369  649,784
Current portion of long-term debt  6,095,684    2,967,135
Current portion of deferred rent    226,106  180,480
Total current liabilities  12,934,251  6,240,409
     
Deferred rent, less current portion  2,274,753  1,750,017
Unfavorable operating leases   849,478    -- 
Other liabilities - interest rate swaps  430,751  613,999
Long-term debt, less current portion  38,551,601  16,841,355
Total liabilities  55,040,834  25,445,780
     
Stockholders' equity    
Common stock -- $0.0001 par value; 100,000,000 shares authorized; 18,951,700 and 18,936,400    
 shares, respectively, issued and outstanding  1,888  1,888
Additional paid-in capital    2,991,526  2,771,077
Accumulated other comprehensive loss    (284,294)    -- 
Retained earnings (accumulated deficit)    (1,205,216)    (1,253,831)
Total DRH stockholders' equity  1,503,904  1,519,134
     
Noncontrolling interest in VIE      --   385,485
     
Total stockholders' equity  1,503,904  1,904,619
     
Total liabilities and stockholders' equity  $ 56,544,738  $ 27,350,399
 
 
DIVERSIFIED RESTAURANT HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
       
  Twelve Months Ended
  December 30   December 25
  2012   2011
       
Cash flows from operating activities      
Net income  $ 275,139    $ 1,996,031
Adjustments to reconcile net income to net cash provided by operating activities       
Depreciation and amortization  4,587,310    3,479,360
Write off of loan fees  141,329    --
Loss on disposal of property and equipment  36,833    31,465
Share-based compensation  220,449    139,773
Change in fair value of derivative instruments  43,361    246,818
Deferred income taxes  (133,287)    335,412
Changes in operating assets and liabilities that provided (used) cash      
Accounts receivable  (227,906)    (20,497)
Inventory  (141,547)    (262,706)
Prepaid assets  (210,434)    2,100
Other current assets  --    43,348
Intangible assets  (1,044,899)    (215,562)
Other long-term assets  (43,756)    5,710
Accounts payable  2,269,555    294,065
Accrued liabilities  1,250,112    321,220
Deferred rent  570,362    180,479
Net cash provided by operating activities  7,592,621    6,577,016
       
Cash flows from investing activities      
Purchases of property and equipment  (15,675,329)    (8,215,522)
Acquisition of business, net of cash acquired (14,686,575)   --
Cash paid in excess of book value of noncontrolling interest  (866,681)   --
Net cash used in investing activities  (31,228,585)    (8,215,522)
       
Cash flows from financing activities      
Proceeds from issuance of long-term debt  63,521,824    4,181,373
Repayments of long-term debt  (38,683,029)    (2,256,751)
Distributions from noncontrolling interest  (40,000)    (107,000)
Net cash provided by financing activities  24,798,795    1,817,622
       
Net increase in cash and cash equivalents  1,162,831    179,116
       
Cash and cash equivalents, beginning of period  1,537,497    1,358,381
       
Cash and cash equivalents, end of period  $ 2,700,328    $ 1,537,497
             
             
DIVERSIFIED RESTAURANT HOLDINGS, INC. AND SUBSIDIARIES
  OPERATING PERFORMANCE (UNAUDITED)
 
             
($ in millions) Three Months Ended Fiscal Year Ended YOY YOY
  Dec. 30, 2012 Dec. 25, 2011 Dec. 30, 2012 Dec. 25, 2011 Increase (Decrease) Percent Change
   
Food, beverage, and packaging costs $8.2  $ 4.8  $24.1 $17.5 $6.6 37.9%
% of revenue 31.4% 29.9% 31.1% 28.8%    
             
G & A expenses $2.3  $ 1.5  $6.6 $5.0 $1.6 31.1%
% of revenue 8.6% 9.6% 8.5% 8.3%    
             
Operating profit (loss)  $ (0.2)  $ 0.2  $ 1.6  $ 3.6  $ (2.0) (56.1)%
Operating margin -0.7% 1.1% 2.0% 5.9%    
CONTACT: Investor Contact:
         Deborah K. Pawlowski
         Kei Advisors LLC
         Phone:  716.843.3908
         Email: dpawlowski@keiadvisors.com
         
         Company Contact:
         David G. Burke
         Chief Financial Officer
         Phone: 248.223.9160

5 of 5

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!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

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