Del Frisco's Restaurant Group, Inc. Announces Fourth Quarter & Fiscal Year 2013 Results

SOUTHLAKE, Texas, Feb. 26, 2014 (GLOBE NEWSWIRE) -- Del Frisco's Restaurant Group, Inc. (Nasdaq:DFRG), the owner and operator of the Del Frisco's Double Eagle Steak House, Sullivan's Steakhouse, and Del Frisco's Grille restaurant concepts, reported financial results today for the 17-week fourth quarter and 53-week fiscal year ended December 31, 2013. The Company also provided its outlook for the 2014 fiscal year.

Key highlights from the fourth quarter 2013 compared to the fourth quarter 2012 include:
  • Consolidated revenues increased 20.5% to $97.5 million from $80.9 million. The 17 th week in the fourth quarter 2013 contributed $5.8 million to consolidated revenues.
  • Comparable restaurant sales (on a 16-week comparable basis) increased 5.2% at Del Frisco's Double Eagle. This follows a comparable restaurant sales increase of 5.9% in the fourth quarter of the previous year and represented its 16 th consecutive quarter of positive comparable restaurant sales.
  • Comparable restaurant sales (on a 16-week comparable basis) decreased 0.7% at Sullivan's. This follows a comparable restaurant sales decrease of 1.5% in the fourth quarter of the previous year.
  • Blended comparable restaurant sales (on a 16-week comparable basis) increased 2.8% across all three concepts and benefited from one additional operating day versus the prior year.
  • Cost of sales, as a percentage of consolidated revenues, decreased to 30.3% from 30.4%.
  • Net income of $4.6 million, or $0.19 per diluted share, compared to net income of $7.6 million, or $0.32 per diluted share.
  • Adjusted net income*, a non-GAAP measure, of $8.6 million, or $0.36 per diluted share, compared to $7.5 million, or $0.31 per diluted share.
  • Restaurant-level EBITDA**, a non-GAAP measure, increased 13.2% to $23.2 million from $20.5 million.

Key highlights from the fiscal year 2013 compared to fiscal year 2012 include:
  • Consolidated revenues increased 16.9% to $271.8 million from $232.4 million. The 53 rd week in the 2013 fiscal year contributed $5.8 million to consolidated revenues.
  • Comparable restaurant sales (on a 52-week comparable basis) increased 4.4% at Del Frisco's Double Eagle. This follows a comparable restaurant sales increase of 6.6% in the 2012 fiscal year and represented its fourth consecutive year of positive comparable restaurant sales.
  • Comparable restaurant sales (on a 52-week comparable basis) decreased 3.0% at Sullivan's. This follows a comparable restaurant sales increase of 1.2% in the 2012 fiscal year.
  • Blended comparable restaurant sales (on a 52-week comparable basis) increased 1.3% across all three concepts and benefited from one additional operating day versus the prior year.
  • Cost of sales, as a percentage of consolidated revenues, decreased to 30.2% from 30.6%.
  • Net income of $12.2 million, or $0.51 per diluted share (on a share base of 23.9 million shares), compared to net income of $13.8 million, or $0.67 per diluted share (on a share base of 20.4 million shares).
  • Adjusted net income*, a non-GAAP measure, of $20.7 million, or $0.87 per diluted share, compared to $19.3 million, or $0.94 per diluted share. The 53 rd week during 2013 provided approximately $0.03 per diluted share.
  • Restaurant-level EBITDA**, a non-GAAP measure, increased 9.9% to $62.1 million from $56.5 million.

* Adjusted net income, a non-GAAP measure, represents pre-tax income from continuing operations plus asset advisory agreement termination fees, management fees and accounting expenses paid to a related party, write-off of debt issuance costs, secondary public offering costs public offering transaction bonuses, and non-cash impairment charges, minus income tax expense at an effective tax rate of 30%. For a reconciliation of adjusted net income to the most directly comparable financial measure presented in accordance with GAAP and a discussion of why we consider it useful, see the financial information accompanying this release.

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