Josh Olshansky, Managing Director of Golden Gate Capital, added, “We are pleased with the outcome of our successful investment in Macaroni Grill and believe the Company is well positioned for the future. Ignite is a great strategic partner to help take Macaroni Grill to its next phase of growth.”2013 Combined Store Count and Revenue Projections Unit Count
|Pre-transaction||Acquired in transaction||Planned 2013 growth||Project unit count EOY Fiscal 2013|
|Joe’s Crab Shack||129|
|Brick House Tavern + Tap||15|
|Romano’s Macaroni Grill|
Fiscal 2013 Projected Revenues (amounts in millions)
|Ignite Restaurant Group||Romano’s Macaroni Grill||Total||% Increase as a result of combination|
|Forecasted IRG 2013||$510 to $520||$180 to $190||$690 to $710||36||%|
|Pro Forma 2013 Revenues 1||$510 to $520||$380 to $400||$890 to $920||76||%|
- As many as 16 new Joe’s Crab Shack and/or Brick House restaurants, including two potential conversions,
- An approximate 1% comparable sales increase, and
- The transaction closing late in the second quarter of 2013 and including approximately 7 additional months of revenue over and above the revenue assumed for forecasted IRG 2013. Actual revenue may differ materially from forecasted and pro forma revenue.
KeyBanc Capital Markets is serving as exclusive financial advisor to Ignite Restaurant Group. Additionally, KeyBank National Association and Bank of America Merrill Lynch are Joint Lead Arrangers and Joint Bookrunners on the transaction financing.Conference Call The Company will host a conference call with an accompanying slide presentation to discuss the acquisition today at 5:00 PM Eastern Daylight Time. Hosting the call will be Ray Blanchette, President and Chief Executive Officer, and Michael Dixon, Senior Vice President and Chief Financial Officer. The conference call can be accessed live over the phone by dialing 888-298-3457 or for international callers by dialing 719-325-2332. The slide presentation will be available ahead of the call and can be accessed at www.igniterestaurants.com under the “Investors” section. A replay will be available one hour after the call and can be accessed by dialing 877-870-5176 or 858-384-5517 for international callers; the password is 8988434. The replay will be available until February 13, 2013. The call will also be webcast live from the Company's website at www.igniterestaurants.com, also under the “Investors” section. About Ignite Restaurant Group Ignite Restaurant Group, Inc. owns and operates 129 Joe's Crab Shacks and 15 Brick House Tavern + Taps. Each brand offers a variety of high-quality, chef-inspired food and beverages in a distinctive, casual, high-energy atmosphere. Joe's Crab Shack and Brick House Tavern + Tap operate in a diverse set of markets across the United States. About Golden Gate Capital Golden Gate Capital is a San Francisco-based private equity investment firm with over $12 billion of capital under management. The principals of Golden Gate have a long and successful history of investing across a wide range of industries and transaction types, including going-privates, corporate divestitures, and recapitalizations, as well as debt and public equity investments. Golden Gate is one of the most active investors in multi-unit consumer companies in the country. Representative investments include Payless ShoeSource, Coldwater Creek, Pacific Sunwear, California Pizza Kitchen, Eddie Bauer, J.Jill, Express, Zales, and On the Border Mexican Grill and Cantina. For additional information, visit www.goldengatecap.com. Cautionary Note Regarding Forward-Looking Statements This press release includes “forward-looking statements” within the meaning of the federal securities laws. Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond the Company’s control. The Company cautions you that the forward-looking information presented in this press release is not a guarantee of future events, and that actual events and results may differ materially from those made in or suggested by the forward-looking information contained in this press release. In addition, forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “plan,” “seek,” “comfortable with,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe” or “continue” or the negative thereof or variations thereon or similar terminology. Examples of forward-looking statements in this press release include our forecasted revenue for fiscal 2013, our pro forma revenues for 2013 assuming the Romano’s Macaroni Grill transaction occurred on January 1, 2013, and our estimated acquisition costs.
A number of important factors could cause actual events and results to differ materially from those contained in or implied by the forward-looking statements included in this press release, including the risk factors discussed in the Company’s Registration Statement on Form S-1/A, filed on May 8, 2012 with the Securities and Exchange Commission (SEC), as supplemented by the risk factors included in the Company’s Quarterly Report on Form 10-Q for the twelve and thirty-six weeks ended September 12, 2012 (which can both be found at the SEC’s website www.sec.gov) and each such risk factor is specifically incorporated into this press release. In addition, we are subject to risks and uncertainties regarding our ability to close the Romano’s Macaroni Grill acquisition and the timing for any such closing, our ability to successfully finance the acquisition, our ability to integrate Romano’s Macaroni Grill into Ignite, our ability to realize expected synergies from the acquisition and when the benefits from any synergies will be realized, the level of fees, expenses and charges related to the acquisition, and our ability to timely implement appropriate internal controls and disclosure controls with respect to the Macaroni Grill assets following the acquisition and satisfy requirements to file Macaroni Grill financial information with the SEC. Any forward-looking information presented herein is made only as of the date of this press release, and the Company does not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.