Second Quarter 2013 Financial Results
Revenue Growth of 18.2%
Total revenue increased $13.7 million in the second quarter of 2013, or 18.2%, to $89.2 million, compared with $75.5 million in the second quarter of 2012. This increase was the result of 58 net restaurants opened system-wide since the beginning of the second quarter of 2012, comparable restaurant sales growth and the calendar shift of the Easter holiday, on which we are closed, from the second quarter of 2012 to the first quarter of 2013.
In the second quarter of 2013, comparable restaurant sales increased 4.7% for company-owned restaurants, 2.3% for franchise restaurants and 4.4% system-wide. Adjusted for the impact of approximately 0.8% due to the aforementioned holiday shift, company-owned, franchise, and system-wide comparable restaurant sales were 3.9%, 1.5% and 3.6%, respectively.
The company-owned comparable restaurant sales increase of 4.7% in the second quarter fiscal 2013 was comprised of a traffic increase of 2.4% and an increase in per person spend of 2.3%.
Adjusted Net Income
(2) Growth of 35.6%
Net income was $0.1 million in the second quarter of 2013, compared with net income of $2.2 million in the second quarter of 2012. Adjusted net income increased 35.6% to $4.0 million, primarily due to increased revenue and expansion of restaurant contribution. We define adjusted net income as net income plus a net savings in interest expense as a result of the pay down of debt using IPO proceeds, plus IPO related expenses and pre-IPO management fees, less estimated incremental costs of being a public company and the tax effects of these adjustments.
Restaurant contribution margin increased to 21.3% in the second quarter of 2013, compared with 20.9% in the second quarter of 2012. This increase was primarily driven by a reduction in food costs as a percentage of restaurant revenue, partially offset by an increase in labor percentage due to a larger percentage of restaurants in the non-comparable base.