COLUMBUS, Ohio, July 28, 2015 (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 28, 2015. The Company also raised its outlook for the full year 2015.
Selected Second Quarter 2015 Highlights Compared to the Second Quarter 2014:
- Revenues increased 5.5% to $110.2 million from $104.5 million.
- Total comparable restaurant sales decreased 1.8%.
- Comparable restaurant sales decreased 2.1% at BRAVO! and 1.6% at BRIO.
- Restaurant-level operating profit increased 2.0% to $17.5 million from $17.2 million.
- Net income was $3.8 million, or $0.24 per diluted share, compared to net income of $4.0 million, or $0.20 per diluted share.
Saed Mohseni, Chief Executive Officer, said, "Our quarterly results exceeded expectations and enabled us to increase our outlook for revenues and diluted earnings per share range for the full year. While comparable sales remained negative, we experienced a sequential improvement in comparable sales trends during the quarter. We are also mitigating the impact of lower guest counts by increasing average check through our efforts to attract a more affluent guest."
Mohseni continued, "BRAVO! is currently running a 'Summer Fixe' promotion that celebrates the delicious Italian tastes of summer through September, while in June, BRIO featured the 'Art of Grilling' which consisted of a three-course dinner special, which also contributed to our increase in average check."
Mohseni concluded, "We opened a new BRAVO! in Las Vegas, Nevada and a new BRIO in Fairfax, Virginia during the second quarter and are raising our development plans by one restaurant to six company-operated locations this year. Our franchised partner is also scheduled to open a new BRIO in San Juan, Puerto Rico during the third quarter. Beyond deploying capital for new restaurants, we are also continuing to reduce our leverage, having paid down an additional $9.1 million in debt during the second quarter."
Second Quarter 2015 Financial Results
Revenues increased $5.7 million, or 5.5%, to $110.2 million in the second quarter of 2015, from $104.5 million in the second quarter of 2014. The increase in revenues was primarily due to a net additional 87 operating weeks that was partially offset by a 1.8% decrease in comparable restaurant sales. The comparable restaurant sales decrease consisted of a 6.3% decrease in guest counts partially offset by a 4.5% increase in average check.
Total restaurant operating costs, which include costs of sales, labor costs, operating costs and occupancy costs, increased $5.4 million, or 6.2%, to $92.7 million in the second quarter of 2015, from $87.3 million in the second quarter of 2014. Total restaurant-level operating profit increased $0.3 million, or 2.0%, to $17.5 million from $17.2 million in the same period last year. As a percentage of revenues, total restaurant-level operating profit decreased to 15.9% in the second quarter of 2015 from 16.5% in the second quarter of 2014.
Net income in the second quarter of 2015 was $3.8 million, or $0.24 per diluted share, compared to net income of $4.0 million, or $0.20 per diluted share, in the same period last year.
Second Quarter 2015 Brand Operating Highlights
Comparable restaurant sales decreased 2.1% at BRAVO! and 1.6% at BRIO. Average weekly sales for BRAVO! and BRIO were $62,700 and $84,600, respectively.
During the second quarter of 2015, the Company opened a BRAVO! restaurant in Las Vegas, Nevada and a BRIO restaurant in Fairfax, Virginia. As of June 28, 2015, the Company operated 52 BRAVO! restaurants, 62 BRIO restaurants, and one Bon Vie restaurant across 33 states. Included in this total is one BRIO restaurant that is operated under a management agreement.
The Company is raising some of the parameters of its outlook for the 52-week period ending December 27, 2015 to be as follows:
- Revenues of $423 million to $430 million (previously $421 million to $429 million).
- Total comparable restaurant sales of minus 2.5% to 0.0%.
- Development of six Company-operated restaurants (previously five Company-operated restaurants).
- Development of one franchised restaurant.
- Pre-opening costs of approximately $3.5 million.
- Diluted earnings per share of $0.65 to $0.70 (previously $0.63 to $0.69).
- Capital expenditures of $16 million to $18 million.
- Diluted share count of approximately 16.0 million.
- Estimated annual tax rate of approximately 22% to 24%.
Investor Conference Call and Webcast
The Company will host an investor conference call to discuss second quarter 2015 financial results today at 5:00 PM ET. Hosting the call will be Saed Mohseni, Chief Executive Officer; Jim O'Connor, Chief Financial Officer; and Brian O'Malley, President and Chief Operating Officer.
The conference call can be accessed live over the phone by dialing (877) 879-6184, or for international callers (719) 325-4895. 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 conference ID is 8667591. The replay will be available until Tuesday, August 4, 2015.
The call will also be webcast live and later archived on the Company's investor relations website at http://investors.bbrg.com in the 'Presentations & Events' section.
About Bravo Brio Restaurant Group, Inc.
Bravo Brio Restaurant Group, Inc. is a leading owner and operator of two distinct Italian restaurant brands, BRAVO! Cucina Italiana and BRIO Tuscan Grille. BBRG has positioned its brands as multifaceted culinary destinations that deliver the ambiance, design elements and food quality reminiscent of fine dining restaurants at a value typically offered by casual dining establishments, a combination known as the upscale affordable dining segment. Each of BBRG's brands provides its guests with a fine dining experience and value by serving affordable cuisine prepared using fresh flavorful ingredients and authentic Italian cooking methods, combined with attentive service in an attractive, lively atmosphere. BBRG strives to be the best Italian restaurant company in America and is focused on providing its guests an excellent dining experience through consistency of execution.
Some 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 6, 2015.
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 28, 2015 AND JUNE 29, 2014|
|(in thousands except per share data)|
|Thirteen Weeks Ended||Thirteen Weeks Ended||Twenty-Six Weeks Ended||Twenty-Six Weeks Ended|
|June 28, 2015||June 29, 2014||June 28, 2015||June 29, 2014|
|Revenues||$ 110,246||$ 104,455||$ 218,415||$ 207,103|
|Costs and expenses|
|Cost of sales||27,536||25.0%||27,251||26.1%||55,442||25.4%||53,761||26.0%|
|General and administrative expenses||6,048||5.5%||5,910||5.7%||11,830||5.4%||11,648||5.6%|
|Restaurant preopening costs||818||0.7%||678||0.6%||1,755||0.8%||1,026||0.5%|
|Depreciation and amortization||5,457||5.0%||5,035||4.8%||10,895||5.0%||10,045||4.9%|
|Total costs and expenses||105,041||95.3%||98,888||94.7%||209,558||95.9%||197,285||95.3%|
|Income from operations||5,205||4.7%||5,567||5.3%||8,857||4.1%||9,818||4.7%|
|Interest expense, net||384||0.3%||236||0.2%||789||0.4%||492||0.2%|
|Income before income taxes||4,821||4.4%||5,331||5.1%||8,068||3.7%||9,326||4.5%|
|Income tax expense||982||0.9%||1,359||1.3%||1,696||0.8%||2,477||1.2%|
|Net income||$ 3,839||3.5%||$ 3,972||3.8%||$ 6,372||2.9%||$ 6,849||3.3%|
|Net income per basic share||$ 0.25||$ 0.21||$ 0.42||$ 0.36|
|Net income per diluted share||$ 0.24||$ 0.20||$ 0.40||$ 0.34|
|Weighted average shares outstanding-basic||15,197||19,085||15,159||19,200|
|Weighted average shares outstanding-diluted||15,936||19,989||15,901||20,075|
|Certain percentage amounts may not sum due to rounding.|
|BRAVO BRIO RESTAURANT GROUP, INC. AND SUBSIDIARIES|
|CONSOLIDATED BALANCE SHEETS|
|AS OF JUNE 28, 2015 AND DECEMBER 28, 2014|
| (Dollars in thousands) |
| June 28, |
|December 28, 2014|
|Cash and cash equivalents||$ 360||$ 427|
|Tenant improvement allowance receivable||1,453||1,613|
|Deferred income taxes, net||3,497||3,459|
|Prepaid expenses and other current assets||1,961||2,179|
|Total current assets||16,309||17,889|
|Property and equipment — net||181,485||178,877|
|Deferred income taxes — net||50,188||50,872|
|Other assets — net||4,216||4,125|
|Total assets||$ 252,198||$ 251,763|
|Liabilities and stockholders' equity|
|Trade and construction payables||$ 14,914||$ 13,238|
|Deferred lease incentives||8,068||7,694|
|Deferred gift card revenue||9,967||12,783|
|Total current liabilities||60,228||59,690|
|Deferred lease incentives||60,361||59,475|
|Other long-term liabilities||23,136||22,814|
|Commitments and contingencies|
|Common shares, no par value per share— authorized 100,000,000 shares; 20,281,212 shares issued at June 28, 2015 and 20,177,174 shares issued at December 28, 2014||200,035||199,718|
|Preferred shares, no par value per share— authorized 5,000,000 shares; issued and outstanding, 0 shares at June 28, 2015 and December 28, 2014||—||—|
|Treasury shares, 5,083,281 shares at June 28, 2015 and December 28, 2014||(72,997)||(72,997)|
|Total stockholders' equity||60,473||53,784|
|Total liabilities and stockholders' equity||$ 252,198||$ 251,763|
CONTACT: Investor Relations Don Duffy / Raphael Gross (203) 682-8200
Source:Bravo Brio Restaurant Group, Inc.