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Ignite Restaurant Group Reports Third Quarter 2013 Financial Results

Stocks in this article: IRG

The following table presents the consolidated statement of operations for the thirteen and thirty-nine weeks ended September 30, 2013 and the twelve and thirty-six weeks ended September 10, 2012:

 

    Thirteen Weeks Ended     Twelve Weeks Ended

Consolidated Statements of Operations

  September 30, 2013 September 10, 2012
(In thousands, except percent and per share data)
       
Revenues $ 227,626 100.0 % $ 129,137 100.0 %
Costs and expenses
Restaurant operating costs and expenses
Cost of sales 69,191 30.4 % 40,363 31.3 %
Labor expenses 69,925 30.7 % 33,411 25.9 %
Occupancy expenses 19,995 8.8 % 8,196 6.3 %
Other operating expenses 47,992 21.1 % 21,996 17.0 %
General and administrative 13,825 6.1 % 7,374 5.7 %
Depreciation and amortization 7,506 3.3 % 4,404 3.4 %
Pre-opening costs 1,480 0.7 % 551 0.4 %
Restaurant impairments and closures 220 0.1 % 27 0.0 %
Loss on disposal of property and equipment   1,165   0.5   %   180   0.1   %
Total costs and expenses   231,299   101.6   %   116,502   90.2   %
Income (loss) from operations (3,673 ) (1.6 ) % 12,635 9.8 %
Interest expense, net (1,335 ) (0.6 ) % (1,229 ) (1.0 ) %
Gain on insurance settlements   300   0.1   %   -   0.0   %
Income (loss) before income taxes (4,708 ) (2.1 ) % 11,406 8.8 %
Income tax expense (benefit)   (2,771 ) (1.2 ) %   2,481   1.9   %
Net income (loss) $ (1,937 ) (0.9 ) % $ 8,925   6.9   %
 
Basic and diluted net income (loss) per share data:
Net income (loss) per share
Basic and diluted $ (0.08 ) $ 0.35
Weighted average shares outstanding
Basic 25,632 25,624
Diluted 25,632 25,627
 
       
Thirty-Nine Weeks Ended Thirty-Six Weeks Ended
Consolidated Statements of Operations September 30, 2013 September 10, 2012
(In thousands, except percent and per share data)
       
Revenues $ 573,998 100.0 % $ 352,453 100.0 %
Costs and expenses
Restaurant operating costs and expenses
Cost of sales 172,277 30.0 % 110,450 31.3 %
Labor expenses 173,297 30.2 % 93,428 26.5 %
Occupancy expenses 47,445 8.3 % 23,445 6.7 %
Other operating expenses 117,835 20.5 % 60,219 17.1 %
General and administrative 40,727 7.1 % 21,641 6.1 %
Depreciation and amortization 19,675 3.4 % 12,553 3.6 %
Pre-opening costs 4,048 0.7 % 3,509 1.0 %
Restaurant impairments and closures 251 0.0 % 133 0.0 %
Loss on disposal of property and equipment   1,557   0.3   %   440   0.1   %
Total costs and expenses   577,112   100.5   %   325,818   92.4   %
Income (loss) from operations (3,114 ) (0.5 ) % 26,635 7.6 %
Interest expense, net (3,471 ) (0.6 ) % (5,994 ) (1.7 ) %
Gain on insurance settlements   600   0.1   %   217   0.1   %
Income (loss) before income taxes (5,985 ) (1.0 ) % 20,858 5.9 %
Income tax expense (benefit)   (3,771 ) (0.7 ) %   4,562   1.3   %
Net income (loss) $ (2,214 ) (0.4 ) % $ 16,296   4.6   %
 
Basic and diluted net income (loss) per share data:
Net income (loss) per share
Basic and diluted $ (0.09 ) $ 0.73
Weighted average shares outstanding
Basic 25,627 22,312
Diluted 25,627 22,313
 
Selected Consolidated Balance Sheet Information         September 30, 2013     December 31, 2012
    (In thousands)
Cash and cash equivalents $ 1,119 $ 6,929
Total assets 339,094 201,438
Long term debt (including current portion) 126,775 45,000
Total liabilities 233,791 95,221
Total stockholders' equity 105,303 106,217
 
               

Thirteen

Twelve

Thirty-Nine

Thirty-Six

Weeks

Weeks

Weeks

Weeks

Ended

Ended

Ended

Ended

September 30, 2013 September 10, 2012 September 30, 2013 September 10, 2012
 
Selected Other Data:
Restaurants opened during the period 4 2 10 10
Number of restaurants open (end of period):
Joe's Crab Shack 136 129 136 129
Brick House Tavern + Tap 16 16 16 16
Romano's Macaroni Grill   182     -     182     -  
Total restaurants 334 145 334 145
Restaurant operating weeks(1)
Joe's Crab Shack 1,740 1,535 5,144 4,472
Brick House Tavern + Tap 208 192 604 576
Romano's Macaroni Grill(2) 2,391 - 4,623 -
Average weekly sales (in thousands)
Joe's Crab Shack $ 74 $ 71 $ 71 $ 72
Brick House Tavern + Tap $ 59 $ 54 $ 60 $ 55
Romano's Macaroni Grill(2) $ 36 - $ 37 -
Change in comparable restaurant sales(3)
Joe's Crab Shack 3.3 % 0.1 % 0.8 % 2.7 %
Brick House Tavern + Tap 4.0 % 3.8 % 4.8 % 2.5 %
Romano's Macaroni Grill(2) (2.7 %) - (5.1 %) -
Total 0.7 % 0.4 % (1.0 %) 2.7 %

 

(1)

 

On a thirteen week comparable quarter for 2012, restaurant operating weeks would have been 1,668 and 208 for the thirteen weeks ended October 1, 2012, and 4,859 and 624 for the thirty-nine weeks ended October 1, 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 third quarter of 2013 compares the thirteen weeks ended September 30, 2013 to the comparable thirteen-week period of 2012. Comparable restaurant sales for the first three quarters of 2013 compares the thirty-nine weeks ended September 30, 2013 to the comparable thirty-nine-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 November 5, 2013.

               

Thirteen

Twelve

Thirty-Nine

Thirty-Six

Weeks Ended

Weeks Ended

Weeks Ended

Weeks Ended

September 30, 2013 September 10, 2012 September 30, 2013 September 10, 2012
(In thousands, except per share data)
Net income (loss) - GAAP $ (1,937 ) $ 8,925 $ (2,214 ) $ 16,296
Adjustments:
Acquisition-related expenses 832 - 6,035 -
IPO-related expenses - - - 1,864
Proposed secondary offering expenses 459 - 759 -
Write-off of debt issuance costs - - 483 1,054

Loss on disposal of fixed assets related to conversion, remodels and closures

633 - 633 -
Nonrecurring recruitment and training expenses - - 327 -
Restatement expenses - 1,048 - 1,048
Gain on insurance settlements (300 ) - (600 ) (217 )
Income tax effect of adjustments above   (639 )   (411 )   (2,676 )   (1,472 )
Adjusted net income (loss) - non-GAAP $ (952 ) $ 9,562   $ 2,747   $ 18,573  
 
Weighted average shares outstanding (GAAP)
Basic 25,632 25,624 25,627 22,312
Diluted 25,632 25,627 25,634 22,313
Net income (loss) per share (GAAP)
Basic and diluted $ (0.08 ) $ 0.35 $ (0.09 ) $ 0.73
Pro forma weighted average shares outstanding (non-GAAP)
Basic and diluted (1) 25,624
Adjusted pro forma net income per share (non-GAAP)
Basic and diluted(1) $ 0.72
Adjusted net income (loss) per share (non-GAAP)
Basic and diluted $ (0.04 ) $ 0.37 $ 0.11
 

(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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