Blanchette added, “Our development strategy continues to bear fruit allowing us not only to take advantage of new sites, but to manage our real estate portfolio for maximum benefit through conversions and we are pleased with the results of our recent openings. We also signed our first Brick House Tavern + Tap franchise development agreement during the quarter. Our brands are distinct and differentiated and we remain excited about the growth in front of our Company, and the ongoing opportunity to create value for our shareholders.”
Review of Third Quarter 2013 Operating Results
Total revenues were $227.6 million in the 13-week third quarter of 2013. Total revenues in the 12-week third quarter of 2012 were $129.1 million. Adjusting 2012 revenues to a comparable 13-week quarterly reporting period, total revenues in the third quarter of 2013 increased approximately $97.4 million, or 74.8%. The increase was driven by the acquisition of the Macaroni Grill restaurants, new restaurant development and a 3.4% increase in comparable restaurant sales associated with the Company’s legacy concepts when comparing the thirteen weeks ending September 30, 2013 to the comparable thirteen week period in the prior year.
- Revenues at Joe’s Crab Shack were $128.0 million during the third quarter of 2013 versus $118.9 million in the comparable 13 weeks of the prior year. Comparable restaurant sales at Joe’s Crab Shack increased 3.3%.
- Revenues at Brick House Tavern + Tap were $12.2 million in the third quarter of 2013 compared to $11.3 million in the comparable 13 weeks of the prior year. Comparable restaurant sales at Brick House Tavern + Tap increased 4.0%.
- Revenues at Macaroni Grill were $87.4 million, which included $690 thousand in royalty income. Comparable restaurant sales at Macaroni Grill decreased 2.7%.
Net loss for the 13-week third quarter of 2013 was $1.9 million, or $0.08 per diluted share. The Company’s net loss for the third quarter of 2013 included approximately $0.8 million of acquisition related costs in connection with the acquisition of Macaroni Grill; an approximate $0.6 million loss on the disposal of fixed assets related to restaurant conversions, remodels and closures; approximately $0.5 million of expenses related to a proposed secondary stock offering and a $0.3 million gain on an insurance settlement. Excluding the impact of these items, adjusted net loss and adjusted net loss per diluted share (which are non-GAAP financial measures) were $1.0 million and $0.04, respectively, in the 13-week third quarter of 2013. Net income for the 12-week third quarter of 2012 was $8.9 million, or $0.35 per diluted share. Adjusting primarily for professional fees and associated expenses in conjunction with the restatement of the Company’s financial statements, adjusted net income and adjusted net income per diluted share in the 12-week third quarter of 2012 was $9.6 million and $0.37, respectively. A reconciliation between GAAP net income (loss) and adjusted net income (loss) is included in the accompanying financial data.