COLUMBUS, Ohio, July 31, 2014 (GLOBE NEWSWIRE) -- Bravo Brio Restaurant Group, Inc. (Nasdaq:BBRG) (the Company) owner and operator of the BRAVO! Cucina Italiana (BRAVO!) and BRIO Tuscan Grille (BRIO) restaurant concepts, today reported financial results for the thirteen and twenty-six week periods ended June 29, 2014. The Company also updated its outlook for the full year 2014. Selected Second Quarter 2014 Highlights Compared to the Second Quarter 2013:
- Revenues decreased 1.1% to $104.5 million from $105.6 million.
- Total comparable restaurant sales decreased 5.1%.
- Comparable restaurant sales decreased 6.0% at BRAVO! and 4.5% at BRIO.
- Restaurant-level operating profit decreased 4.1% to $17.2 million from $17.9 million.
- Net income was $4.0 million, or $0.20 per diluted share, compared to net income of $4.5 million, or $0.22 per diluted share.
Mohseni concluded, "Our development plan remains on track with all our new restaurants being financed entirely though internally-generated capital. During the second quarter, we opened a BRAVO! in Charlotte, North Carolina, and earlier this month, we opened a BRIO in Irvine, California. The remaining three BRAVO!s and one BRIO will open in the fourth quarter and are located primarily in Florida. Although we believe that we are underpenetrated relative to our full potential and greater development opportunities are currently available, we will not accelerate development until improvements in our core restaurant base are sustained."Second Quarter 2014 Financial Results Revenues decreased $1.1 million, or 1.1%, to $104.5 million in the second quarter of 2014, from $105.6 million in the second quarter of 2013. The decrease in revenues was primarily due to a comparable restaurant sales decrease of 5.1% that was only partially offset by an additional 56 operating weeks compared to the second quarter last year. The comparable restaurant sales decrease consisted of a 6.2% decrease in guest counts partially offset by a 1.1% increase in average check. Total restaurant operating costs, which include costs of sales, labor costs, operating costs and occupancy costs, decreased $0.4 million, or 0.5%, to $87.3 million in the second quarter of 2014, from $87.7 million in the second quarter of 2013. Total restaurant-level operating profit decreased $0.7 million, or 4.1%, to $17.2 million from $17.9 million in the same period last year. As a percentage of revenues, total restaurant-level operating profit decreased to 16.5% in the second quarter of 2014 from 17.0% in the second quarter of 2013. Net income in the second quarter of 2014 was $4.0 million, or $0.20 per diluted share, compared to net income of $4.5 million, or $0.22 per diluted share, in the same period last year. Second Quarter 2014 Brand Operating Highlights Comparable restaurant sales decreased 6.0% at BRAVO! and 4.5% at BRIO. Average weekly sales for BRAVO! and BRIO were $64,100 and $87,200, respectively.
As of June 29, 2014, the Company operated 47 BRAVO!, 58 BRIO, and one Bon Vie restaurant across 33 states. Included in this total is one BRIO restaurant that is operated under a management agreement.2014 Outlook The Company is updating its outlook for the 52-week period ending December 28, 2014 as follows:
- Total comparable restaurant sales of minus 5.0% to minus 4.0% (versus minus 2.0% to positive 1.0% previously).
- Revenues of $405 million to $410 million (versus $420 million to $430 million previously) reflecting lower estimated comparable sales and the closure of two BRIO restaurants during the second quarter.
- Development of six restaurants (four BRAVO! and two BRIO).
- Pre-opening costs of $3.5 to $4.0 million.
- Diluted earnings per share of $0.71 to $0.75 (versus $0.78 to $0.84 previously).
- Capital expenditures of $22 million to $24 million.
- Diluted share count of approximately 20.2 million.
- Estimated annual tax rate of approximately 27% (versus 28% previously).
Forward-Looking StatementsSome of the statements in this release contain forward-looking statements, which involve risks and uncertainties. These statements relate to future events or Bravo Brio Restaurant Group, Inc.'s future financial performance. The Company has attempted to identify forward-looking statements by terminology including "anticipates," "believes," "can," "continue," "could," "estimates," "expects," "intends," "may," "plans," "potential," "predicts," "should" or "will" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties, and other factors, including those discussed under the heading "Risk Factors" in the Annual Report on Form 10-K filed by the Company with the Securities and Exchange Commission on March 3, 2014. Although Bravo Brio Restaurant Group, Inc. believes that the expectations reflected in the forward-looking statements are reasonable based on its current knowledge of the business and operations, it cannot guarantee future results, levels of activity, performance or achievements. The Company assumes no obligation to provide revisions to any forward-looking statements should circumstances change.
|BRAVO BRIO RESTAURANT GROUP, INC. AND SUBSIDIARIES|
|CONSOLIDATED STATEMENTS OF OPERATIONS|
|FOR THE THIRTEEN AND TWENTY-SIX WEEKS ENDED JUNE 29, 2014 AND JUNE 30, 2013|
|(in thousands except per share data)|
|Thirteen Weeks Ended||Thirteen Weeks Ended||Twenty-Six Weeks Ended||Twenty-Six Weeks Ended|
|June 29, 2014||June 30, 2013||June 29, 2014||June 30, 2013|
|Revenues||$ 104,455||$ 105,622||$ 207,103||$ 208,685|
|Costs and expenses|
|Cost of sales||27,251||26.1%||27,051||25.6%||53,761||26.0%||54,015||25.9%|
|General and administrative expenses||5,910||5.7%||5,836||5.5%||11,648||5.6%||11,695||5.6%|
|Restaurant preopening costs||678||0.6%||558||0.5%||1,026||0.5%||1,259||0.6%|
|Depreciation and amortization||5,035||4.8%||4,962||4.7%||10,045||4.9%||9,831||4.7%|
|Total costs and expenses||98,888||94.7%||99,048||93.8%||197,285||95.3%||196,978||94.4%|
|Income from operations||5,567||5.3%||6,574||6.2%||9,818||4.7%||11,707||5.6%|
|Interest expense, net||236||0.2%||284||0.3%||492||0.2%||601||0.3%|
|Income before income taxes||5,331||5.1%||6,290||6.0%||9,326||4.5%||11,106||5.3%|
|Income tax expense||1,359||1.3%||1,748||1.7%||2,477||1.2%||3,145||1.5%|
|Net income||$ 3,972||3.8%||$ 4,542||4.3%||$ 6,849||3.3%||$ 7,961||3.8%|
|Net income per basic share||$ 0.21||$ 0.23||$ 0.36||$ 0.41|
|Net income per diluted share||$ 0.20||$ 0.22||$ 0.34||$ 0.39|
|Weighted average shares outstanding-basic||19,085||19,591||19,200||19,598|
|Weighted average shares outstanding-diluted||19,989||20,489||20,075||20,482|
|Certain percentage amounts may not sum due to rounding.|
|BRAVO BRIO RESTAURANT GROUP, INC. AND SUBSIDIARIES|
|CONSOLIDATED BALANCE SHEETS|
|AS OF JUNE 29, 2014 AND DECEMBER 29, 2013|
|(Dollars in thousands)|
|June 29,||December 29,|
|Cash and cash equivalents||$ 5,796||$ 7,640|
|Tenant improvement allowance receivable||50||1,386|
|Deferred income taxes, net||3,155||2,625|
|Prepaid expenses and other current assets||2,009||5,434|
|Total current assets||19,308||28,207|
|Property and equipment — net||171,133||169,127|
|Deferred income taxes — net||51,286||53,381|
|Other assets — net||3,945||4,137|
|Total assets||$ 245,672||$ 254,852|
|Liabilities and stockholders' equity|
|Trade and construction payables||$ 8,755||$ 8,781|
|Current portion of long-term debt||5,059||2,082|
|Deferred lease incentives||7,432||7,021|
|Deferred gift card revenue||9,207||12,876|
|Total current liabilities||55,127||54,411|
|Deferred lease incentives||57,165||60,539|
|Other long-term liabilities||22,451||22,515|
|Commitments and contingencies|
|Common shares, no par value per share— authorized 100,000,000 shares; 20,071,335 shares issued at June 29, 2014 and 19,991,927 shares issued at December 29, 2013||198,908||197,913|
|Preferred shares, no par value per share— authorized 5,000,000 shares; issued and outstanding, 0 shares at June 29, 2014 and December 29, 2013||—||—|
|Treasury shares, 1,055,662 shares at June 29, 2014; and 633,273 shares at December 29, 2013||(15,799)||(9,378)|
|Total stockholders' equity||105,199||103,776|
|Total liabilities and stockholders' equity||$ 245,672||$ 254,852|
CONTACT: Investor Relations Don Duffy / Raphael Gross (203) 682-8200