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Ignite Restaurant Group Reports Second Quarter 2013 Financial Results

Stocks in this article: IRG

The following table presents the consolidated statement of operations for the thirteen and twenty-six weeks ended July 1, 2013 and the twelve and twenty-four weeks ended June 18, 2012.

Consolidated Statements of Operations  

Thirteen Weeks Ended

July 1, 2013

 

Twelve Weeks Ended

June 18, 2012

      (In thousands, except percent and per share data)
     
Revenues $ 228,132 100.0 % $ 119,886 100.0 %
Costs and expenses
Restaurant operating costs and expenses
Cost of sales 66,765 29.3 % 37,172 31.0 %
Labor expenses 71,465 31.3 % 31,970 26.7 %
Occupancy expenses 18,896 8.3 % 7,717 6.4 %
Other operating expenses 48,039 21.1 % 19,655 16.4 %
General and administrative 16,611 7.3 % 8,044 6.7 %
Depreciation and amortization 7,356 3.2 % 4,200 3.5 %
Pre-opening costs 1,477 0.6 % 1,430 1.2 %
Restaurant impairments and closures 14 0.0 % 57 0.0 %
Loss on disposal of property and equipment   197   0.1   %   171   0.1   %
Total costs and expenses   230,820   101.2   %   110,416   92.1   %
Income (loss) from operations (2,688 ) (1.2 ) % 9,470 7.9 %
Interest expense, net (1,741 ) (0.8 ) % (2,768 ) (2.3 ) %
Gain on insurance settlements   -   0.0   %   217   0.2   %
Income (loss) before income taxes (4,429 ) (1.9 ) % 6,919 5.8 %
Income tax expense (benefit)   (1,967 ) (0.9 ) %   1,433   1.2   %
Net income (loss) $ (2,462 ) (1.1 ) % $ 5,486   4.6   %
 
Basic and diluted net income (loss) per share data:
Net income (loss) per share
Basic and diluted $ (0.10 ) $ 0.25
Weighted average shares outstanding
Basic 25,624 22,136
Diluted 25,624 22,137
Consolidated Statements of Operations  

Twenty-Six Weeks Ended

July 1, 2013

 

Twenty-Four Weeks

Ended June 18, 2012

      (In thousands, except percent and per share data)
     
Revenues $ 346,372 100.0 % $ 223,316 100.0 %
Costs and expenses
Restaurant operating costs and expenses
Cost of sales 103,086 29.8 % 70,087 31.4 %
Labor expenses 103,372 29.8 % 60,017 26.9 %
Occupancy expenses 27,450 7.9 % 15,249 6.8 %
Other operating expenses 69,843 20.2 % 38,223 17.1 %
General and administrative 26,902 7.8 % 14,267 6.4 %
Depreciation and amortization 12,169 3.5 % 8,149 3.6 %
Pre-opening costs 2,568 0.7 % 2,958 1.3 %
Restaurant impairments and closures 31 0.0 % 106 0.0 %
Loss on disposal of property and equipment 392 0.1 % 260 0.1 %
Total costs and expenses 345,813 99.8 % 209,316 93.7 %
Income from operations 559 0.2 % 14,000 6.3 %
Interest expense, net (2,136) (0.6) % (4,765) (2.1) %
Gain on insurance settlements 300 0.1 % 217 0.1 %
Income (loss) before income taxes (1,277) (0.4) % 9,452 4.2 %
Income tax expense (benefit) (1,000) (0.3) % 2,081 0.9 %
Net income (loss) $ (277) (0.1) % $ 7,371 3.3 %
 
Basic and diluted net income (loss) per share data:
Net income (loss) per share
Basic and diluted $ (0.01) $ 0.36
Weighted average shares outstanding
Basic 25,624 20,666
Diluted 25,624 20,666
Selected Consolidated Balance Sheet Information  

July 1,

2013

 

December 31,

2012

    (In thousands)
Cash and cash equivalents $ 1,136 $ 6,929
Total assets 330,284 201,438
Long term debt (including current portion) 105,000 45,000
Total liabilities 223,687 95,221
Stockholders' equity 106,597 106,217
       

Thirteen Weeks Ended

 

Twelve Weeks Ended

 

Twenty-Six Weeks Ended

Twenty-Four Weeks Ended

July 1, 2013 June 18, 2012 July 1, 2013 June 18, 2012
 
Selected Other Data:
Restaurants opened during the period 4 5 6 8
Number of restaurants open (end of period):
Joe's Crab Shack 134 127 134 127
Brick House Tavern + Tap 16 16 16 16
Romano's Macaroni Grill   186     -     186     -  
Total restaurants 336 143 336 143
Restaurant operating weeks(1)
Joe's Crab Shack 1,727 1,491 3,404 2,937
Brick House Tavern + Tap 201 192 396 384
Romano's Macaroni Grill(2) 2,232 - 2,232 -
Average weekly sales (in thousands)
Joe's Crab Shack $ 75 $ 73 $ 69 $ 69
Brick House Tavern + Tap $ 62 $ 57 $ 61 $ 56
Romano's Macaroni Grill(2) $ 38 $ 38

Change in comparable restaurant

sales(3)

Joe's Crab Shack 0.7 % 3.1 % (0.5 %) 4.2 %
Brick House Tavern + Tap 6.4 % 1.3 % 5.2 % 1.6 %
Romano's Macaroni Grill(2) (7.4 %) (7.4 %)
Total (2.5 %) 3.0 % (2.2 %) 4.0 %
 

(1) On a thirteen week comparable quarter for 2012, restaurant operating weeks would have been 1,622 and 208 for the thirteen weeks ended July 2, 2012, and 3,191 and 416 for the twenty-six weeks ended July 2, 2012 for Joe's Crab Shack and Brick House Tavern + Tap, respectively.

(2) Activity for Romano's Macaroni Grill commenced from the acquisition date of April 9, 2013.

(3) Comparable restaurant sales for the second quarter of 2013 compares the thirteen weeks ended July 1, 2013 to the comparable thirteen week period of 2012.

Reconciliation of Non-GAAP Results to GAAP Results

The Company provided detailed explanations of these non-GAAP financial measures, including a discussion of the usefulness and purpose of each measure, in its Form 8-K filed with the Securities and Exchange Commission on August 7, 2013.

      Thirteen Weeks Ended Twelve Weeks Ended Twenty-Six Weeks Ended Twenty-Four Weeks Ended
July 1, 2013 June 18, 2012 July 1, 2013 June 18, 2012
(In thousands, except per share data)
Net income (loss) - GAAP $ (2,462 ) $ 5,486 $ (277 ) $ 7,371
Adjustments:
Acquisition-related expenses 4,185 - 5,203 -
IPO-related expenses - 1,824 - 1,864
Proposed secondary offering expenses 300 - 300 -
Write-off of debt issuance costs 483 1,054 483 1,054
Nonrecurring recruitment and training expenses 327 - 327 -
Gain on insurance settlements - (217 ) (300 ) (217 )
Income tax effect of adjustments above   (1,860 )   (1,045 )   (2,037 )   (1,061 )
Adjusted net income - non-GAAP $ 973   $ 7,102   $ 3,699   $ 9,011  
 
Weighted average shares outstanding (GAAP)
Basic 25,624 22,136 25,624 20,666
Diluted 25,624 22,137 25,624 20,666
Net income (loss) per share (GAAP)
Basic and diluted $ (0.10 ) $ 0.25 $ (0.01 ) $ 0.36
Pro forma weighted average shares outstanding (non-GAAP)
Basic and diluted (1) 25,624 25,624
Adjusted pro forma net income per share (non-GAAP)
Basic and diluted(1) $ 0.28 $ 0.35
Adjusted net income per share (non-GAAP)
Basic and diluted $ 0.04 $ 0.14
 

(1) Reflects 6.4 million shares of common stock issued in the IPO as if it occurred at the beginning of fiscal year 2012.





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