Delaware | 20-8453116 |
(State or other jurisdiction of incorporation) | (IRS Employer Identification No.) |
DEL FRISCO’S RESTAURANT GROUP, INC. | |||
Date: | March 12, 2019 | By: | /s/ Neil H. Thomson |
Neil H. Thomson | |||
Chief Financial Officer |
Investor Relations Contact: Raphael Gross 203-682-8253 investorrelations@dfrg.com Media Relations Contact: Alecia Pulman 203-682-8200 DFRGPR@icrinc.com |
• | Consolidated revenues increased 23.3% to $123.8 million from $100.4 million. |
• | Total comparable restaurant sales increased 0.1%. |
• | GAAP net loss of $7.3 million, or $0.22 per diluted share, compared to GAAP net loss of $2.4 million, or $0.12 per diluted share. |
• | Adjusted net loss* of $1.5 million, or $0.04 per diluted share, compared to adjusted net income* of $6.3 million, or $0.30 per diluted share. |
• | Adjusted EBITDA* decreased 9.8% to $13.6 million from $15.0 million. As a percentage of consolidated revenues, adjusted EBITDA margin decreased 400 basis points to 11.0% from 15.0%. |
• | GAAP operating loss of $6.0 million, compared to GAAP operating loss of $14.4 million. |
• | Restaurant-level EBITDA* increased 7.0% to $24.9 million from $23.3 million due primarily to $3.7 million in contributions from Barcelona Wine Bar and $3.6 million in contributions from bartaco. As a percentage of consolidated revenues, restaurant-level EBITDA margin decreased 310 basis points to 20.1% from 23.2%, primarily due to inefficiencies from new restaurant openings. |
• | Consolidated revenues increased 28.7% to $378.2 million from $293.8 million. |
• | Total comparable restaurant sales decreased 0.9%. |
• | GAAP net loss of $49.9 million, or $1.96 per diluted share, compared to GAAP net loss of $0.8 million, or $0.04 per diluted share. |
• | Adjusted net loss* of $4.5 million, or $0.18 per diluted share, compared to adjusted net income* of $11.7 million, or $0.54 per diluted share. |
• | Adjusted EBITDA* decreased 3.2% to $35.3 million from $36.4 million. As a percentage of consolidated revenues, adjusted EBITDA margin decreased 310 basis points to 9.3% from 12.4%. |
• | GAAP operating loss of $22.5 million, compared to GAAP operating loss of $11.9 million. |
• | Restaurant-level EBITDA* increased 18.8% to $74.1 million from $62.4 million due primarily to $9.9 million in contributions from bartaco and $7.6 million in contributions from Barcelona Wine Bar. As a percentage of consolidated revenues, restaurant-level EBITDA margin decreased 160 basis points to 19.6% from 21.2%, primarily due to inefficiencies from new restaurant openings. |
Total | Double Eagle | Barcelona | bartaco | Del Frisco’s Grille | |||||
Comparable Restaurant Sales | 0.1% | (0.1)% | 1.9% | 1.6% | (0.9)% | ||||
Customer Counts | (3.0)% | (2.6)% | 1.1% | (0.1)% | (7.6)% | ||||
Average Check | 3.1% | 2.5% | 0.8% | 1.7% | 6.7% |
• | A Del Frisco’s Double Eagle Steakhouse restaurant opened in San Diego, CA. |
• | A Del Frisco’s Grille restaurant opened in each of Philadelphia, PA and Fort Lauderdale, FL. |
• | A bartaco restaurant opened in each of Fort Point, MA, and Dallas, TX. |
• | Total comparable restaurant sales of 0% to 1.5%. |
• | Seven to eight restaurant openings, consisting of one Del Frisco’s Double Eagle Steakhouse, two to three Barcelona Wine Bars, and three to four bartaco restaurants. To date, we have opened a Del Frisco’s Double Eagle Steakhouse in Century City, CA; a Barcelona Wine Bar in Charlotte, NC; and a bartaco in Madison, WI. |
• | Restaurant-level EBITDA** of 20.0% to 22.0% of consolidated revenues. |
• | General and administrative costs of approximately $53 million to $55 million, which excludes items we consider non-recurring in nature. |
• | Pre-opening expenses of $5 million to $7 million. |
• | Net capital expenditures, after tenant allowances, of $25 million to $35 million. |
• | Adjusted EBITDA** of $58 million to $66 million. |
• | Consolidated revenue growth of at least 10%. |
• | Comparable restaurant sales growth of 0% to 2%. |
• | New restaurant growth of 10% to 12% annually. |
• | Maintaining strong restaurant-level EBITDA** margins. |
• | General and administrative cost leverage. |
• | Adjusted EBITDA** growth of at least 15%. |
13 Weeks Ended(1) | 16 Weeks Ended(1) | 52 Weeks Ended | ||||||||||||||||||||||||||
(Amounts in thousands, except per share data) | December 25, 2018 | December 26, 2017 | December 25, 2018 | December 26, 2017 | ||||||||||||||||||||||||
Revenues | $ | 123,849 | 100.0 | % | $ | 100,423 | 100.0 | % | $ | 378,216 | 100.0 | % | $ | 293,827 | 100.0 | % | ||||||||||||
Costs and expenses: | ||||||||||||||||||||||||||||
Costs of sales | 34,481 | 27.8 | 28,697 | 28.6 | 105,985 | 28.0 | 83,617 | 28.5 | ||||||||||||||||||||
Restaurant operating expenses (excluding depreciation and amortization shown separately below) | 61,272 | 49.5 | 45,422 | 45.2 | 189,890 | 50.2 | 141,520 | 48.2 | ||||||||||||||||||||
Marketing and advertising costs | 3,154 | 2.5 | 2,987 | 3.0 | 8,255 | 2.2 | 6,318 | 2.2 | ||||||||||||||||||||
Pre-opening costs | 3,244 | 2.6 | 149 | 0.1 | 9,351 | 2.5 | 2,182 | 0.7 | ||||||||||||||||||||
General and administrative costs | 11,833 | 9.6 | 8,835 | 8.8 | 39,650 | 10.5 | 26,891 | 9.2 | ||||||||||||||||||||
Donations | 245 | 0.2 | — | — | 335 | 0.1 | 836 | 0.3 | ||||||||||||||||||||
Consulting project costs | 4,756 | 3.8 | — | — | 6,420 | 1.7 | 2,786 | 0.9 | ||||||||||||||||||||
Acquisition costs | 232 | 0.2 | — | — | 11,123 | 2.9 | — | — | ||||||||||||||||||||
Reorganization severance | 1,368 | 1.1 | — | — | 2,202 | 0.6 | 1,072 | 0.4 | ||||||||||||||||||||
Lease termination and closing costs | 2,236 | 1.8 | — | — | 3,779 | 1.0 | (2 | ) | — | |||||||||||||||||||
Impairment charges | — | — | 22,930 | 22.8 | 2,115 | 0.6 | 22,930 | 7.8 | ||||||||||||||||||||
Depreciation and amortization | 6,979 | 5.6 | 5,753 | 5.7 | 21,713 | 5.7 | 17,595 | 6.0 | ||||||||||||||||||||
Total costs and expenses | 129,800 | 104.8 | 114,773 | 114.3 | 400,818 | 106.0 | 305,745 | 104.1 | ||||||||||||||||||||
Insurance settlement | — | — | — | — | 72 | — | — | — | ||||||||||||||||||||
Operating (loss) income | (5,951 | ) | (4.8 | ) | (14,350 | ) | (14.3 | ) | (22,530 | ) | (6.0 | ) | (11,918 | ) | (4.1 | ) | ||||||||||||
Other income (expense), net: | ||||||||||||||||||||||||||||
Interest, net of capitalized interest | (6,956 | ) | (5.6 | ) | (422 | ) | (0.4 | ) | (32,179 | ) | (8.5 | ) | (783 | ) | (0.3 | ) | ||||||||||||
Other | (277 | ) | (0.2 | ) | (1,383 | ) | (1.4 | ) | (810 | ) | (0.2 | ) | (1,435 | ) | (0.5 | ) | ||||||||||||
(Loss) income before income taxes | (13,184 | ) | (10.6 | ) | (16,155 | ) | (16.1 | ) | (55,519 | ) | (14.7 | ) | (14,136 | ) | (4.8 | ) | ||||||||||||
Income tax (benefit) expense | (5,909 | ) | (4.8 | ) | (13,736 | ) | (13.7 | ) | (5,653 | ) | (1.5 | ) | (13,317 | ) | (4.5 | ) | ||||||||||||
(Loss) income from continuing operations | (7,275 | ) | (5.9 | ) | (2,419 | ) | (2.4 | ) | (49,866 | ) | (13.2 | ) | (819 | ) | (0.3 | ) | ||||||||||||
(Loss) income from discontinued operations, net of tax | (792 | ) | (0.6 | ) | (12,663 | ) | (12.6 | ) | (26,437 | ) | (7.0 | ) | (10,638 | ) | (3.6 | ) | ||||||||||||
Net (loss) income | $ | (8,067 | ) | (6.5 | )% | $ | (15,082 | ) | (15.0 | )% | $ | (76,303 | ) | (20.2 | )% | $ | (11,457 | ) | (3.9 | )% | ||||||||
Net income (loss) per average common share outstanding—basic | ||||||||||||||||||||||||||||
(Loss) income from continuing operations | $ | (0.22 | ) | $ | (0.12 | ) | $ | (1.96 | ) | $ | (0.04 | ) | ||||||||||||||||
(Loss) income from discontinued operations | (0.02 | ) | (0.61 | ) | (1.04 | ) | (0.49 | ) | ||||||||||||||||||||
Net (loss) income | $ | (0.24 | ) | $ | (0.73 | ) | $ | (3.00 | ) | $ | (0.53 | ) | ||||||||||||||||
Net income (loss) per average common share outstanding—diluted | ||||||||||||||||||||||||||||
(Loss) income from continuing operations | $ | (0.22 | ) | $ | (0.12 | ) | $ | (1.96 | ) | $ | (0.04 | ) | ||||||||||||||||
(Loss) income from discontinued operations | (0.02 | ) | (0.61 | ) | (1.04 | ) | (0.49 | ) | ||||||||||||||||||||
Net (loss) income | $ | (0.24 | ) | $ | (0.73 | ) | $ | (3.00 | ) | $ | (0.53 | ) | ||||||||||||||||
Weighted-average number of common shares outstanding: | ||||||||||||||||||||||||||||
Basic: | 33,322 | 20,690 | 25,412 | 21,570 | ||||||||||||||||||||||||
Diluted: | 33,322 | 20,690 | 25,412 | 21,570 |
(1) | Beginning in fiscal 2018, we changed to a fiscal quarter calendar where each quarter contains 13 weeks, other than in a 53-week year where the last quarter of the year will contain 14 weeks. Previously, the first three quarters of our fiscal year consisted of 12 weeks each and the fourth quarter consisted of 16 weeks or 17 weeks in a 53-week year. The fourth quarter ended December 25, 2018 contained 13 weeks, the quarter ended December 26, 2017 contained 16 weeks. See Note 2 Summary of Significant Accounting Policies in the notes to our consolidated financial statements included in our annual report on Form 10-K for the fiscal year ended December 25, 2018. |
As of | ||||||||
(Amounts in thousands) | September 25, 2018 | December 26, 2017 | ||||||
Cash and cash equivalents | $ | 8,535 | $ | 4,553 | ||||
Total assets | 726,032 | 328,470 | ||||||
Long-term debt | 320,736 | 24,477 | ||||||
Total stockholders' equity | 213,582 | 189,087 |
13 Weeks Ended December 25, 2018 | |||||||||||||||||||||||||||
(Amounts in thousands) | Double Eagle | Barcelona | bartaco | Grille | |||||||||||||||||||||||
Revenues | $ | 57,421 | 100.0 | % | $ | 16,874 | 100.0 | % | $ | 17,523 | 100.0 | % | $ | 32,031 | 100.0 | % | |||||||||||
Costs and expenses: | |||||||||||||||||||||||||||
Cost of sales | 17,091 | 29.8 | 4,484 | 26.6 | 4,076 | 23.3 | 8,830 | 27.6 | |||||||||||||||||||
Restaurant operating expenses: | |||||||||||||||||||||||||||
Labor | 13,361 | 23.3 | 5,224 | 31.0 | 6,059 | 34.6 | 10,094 | 31.5 | |||||||||||||||||||
Operating expenses | 6,855 | 11.9 | 2,342 | 13.9 | 2,642 | 15.1 | 4,680 | 14.6 | |||||||||||||||||||
Occupancy | 4,369 | 7.6 | 1,024 | 6.1 | 1,097 | 6.3 | 3,525 | 11.0 | |||||||||||||||||||
Restaurant operating expenses | 24,585 | 42.8 | 8,590 | 50.9 | 9,798 | 55.9 | 18,299 | 57.1 | |||||||||||||||||||
Marketing and advertising costs | 1,987 | 3.5 | 99 | 0.6 | 76 | 0.4 | 992 | 3.1 | |||||||||||||||||||
Restaurant-level EBITDA | $ | 13,758 | 24.0 | % | $ | 3,701 | 21.9 | % | $ | 3,573 | 20.4 | % | $ | 3,910 | 12.2 | % | |||||||||||
Restaurant operating weeks | 203 | 208 | 226 | 295 | |||||||||||||||||||||||
Average weekly volume | $ | 283 | $ | 81 | $ | 78 | $ | 109 |
16 Weeks Ended December 26, 2017(1) | |||||||||||||||||||||||||||
(Amounts in thousands) | Double Eagle | Barcelona | bartaco | Grille | |||||||||||||||||||||||
Revenues | $ | 62,021 | 100.0 | % | $ | — | — | % | $ | — | — | % | $ | 38,402 | 100.0 | % | |||||||||||
Costs and expenses: | |||||||||||||||||||||||||||
Cost of sales | 18,449 | 29.7 | — | — | — | — | 10,248 | 26.7 | |||||||||||||||||||
Restaurant operating expenses: | |||||||||||||||||||||||||||
Labor | 13,154 | 21.2 | — | — | — | — | 12,189 | 31.7 | |||||||||||||||||||
Operating expenses | 6,697 | 10.8 | — | — | — | — | 5,239 | 13.6 | |||||||||||||||||||
Occupancy | 4,063 | 6.6 | — | — | — | — | 4,080 | 10.6 | |||||||||||||||||||
Restaurant operating expenses | 23,914 | 38.6 | — | — | — | — | 21,508 | 56.0 | |||||||||||||||||||
Marketing and advertising costs | 1,610 | 2.6 | — | — | — | — | 1,377 | 3.6 | |||||||||||||||||||
Restaurant-level EBITDA | $ | 18,048 | 29.1 | % | $ | — | — | % | $ | — | — | % | $ | 5,269 | 13.7 | % | |||||||||||
Restaurant operating weeks | 208 | — | — | 384 | |||||||||||||||||||||||
Average weekly volume | $ | 298 | $ | — | $ | — | $ | 100 |
(1) | See footnote 1 to the Consolidated Statement of Income above. |
52 weeks ended December 25, 2018 | |||||||||||||||||||||||||||
(Amounts in thousands) | Double Eagle | Barcelona | bartaco | Grille | |||||||||||||||||||||||
Revenues | $ | 182,957 | 100.0 | % | $ | 34,084 | 100.0 | % | $ | 40,186 | 100.0 | % | $ | 120,989 | 100.0 | % | |||||||||||
Costs and expenses: | |||||||||||||||||||||||||||
Cost of sales | 54,559 | 29.8 | 9,123 | 26.8 | 9,232 | 23.0 | 33,071 | 27.3 | |||||||||||||||||||
Restaurant operating expenses: | |||||||||||||||||||||||||||
Labor | 44,600 | 24.4 | 10,596 | 31.1 | 13,388 | 33.3 | 39,259 | 32.4 | |||||||||||||||||||
Operating expenses | 21,815 | 11.9 | 4,698 | 13.8 | 5,576 | 13.9 | 17,560 | 14.5 | |||||||||||||||||||
Occupancy | 15,161 | 8.3 | 1,855 | 5.4 | 1,943 | 4.8 | 13,439 | 11.1 | |||||||||||||||||||
Restaurant operating expenses | 81,576 | 44.6 | 17,149 | 50.3 | 20,907 | 52.0 | 70,258 | 58.1 | |||||||||||||||||||
Marketing and advertising costs | 4,981 | 2.7 | 187 | 0.5 | 178 | 0.4 | 2,909 | 2.4 | |||||||||||||||||||
Restaurant-level EBITDA | $ | 41,841 | 22.9 | % | $ | 7,625 | 22.4 | % | $ | 9,869 | 24.6 | % | $ | 14,751 | 12.2 | % | |||||||||||
Restaurant operating weeks | 717 | 416 | 459 | 1,229 | |||||||||||||||||||||||
Average weekly volume | $ | 255 | $ | 82 | $ | 88 | $ | 98 |
52 weeks ended December 26, 2017 | |||||||||||||||||||||||||||
(Amounts in thousands) | Double Eagle | Barcelona | bartaco | Grille | |||||||||||||||||||||||
Revenues | $ | 176,713 | 100.0 | % | $ | — | — | % | $ | — | — | % | $ | 117,114 | 100.0 | % | |||||||||||
Costs and expenses: | |||||||||||||||||||||||||||
Cost of sales | 52,944 | 30.0 | — | — | — | — | 30,673 | 26.2 | |||||||||||||||||||
Restaurant operating expenses: | |||||||||||||||||||||||||||
Labor | 41,935 | 23.7 | — | — | — | — | 39,163 | 33.4 | |||||||||||||||||||
Operating expenses | 18,846 | 10.7 | — | — | — | — | 15,849 | 13.5 | |||||||||||||||||||
Occupancy | 12,511 | 7.1 | — | — | — | — | 13,216 | 11.3 | |||||||||||||||||||
Restaurant operating expenses | 73,292 | 41.5 | — | — | — | — | 68,228 | 58.3 | |||||||||||||||||||
Marketing and advertising costs | 3,568 | 2.0 | — | — | — | — | 2,750 | 2.3 | |||||||||||||||||||
Restaurant-level EBITDA | $ | 46,909 | 26.5 | % | $ | — | — | % | $ | — | — | % | $ | 15,463 | 13.2 | % | |||||||||||
Restaurant operating weeks | 655 | — | — | 1,221 | |||||||||||||||||||||||
Average weekly volume | $ | 270 | $ | — | $ | — | $ | 96 |
13 weeks ended | 16 weeks ended | 52 weeks ended | |||||||||||||
(Amounts in thousands, except per share data) | December 25, 2018 | December 26, 2017 | December 25, 2018 | December 26, 2017 | |||||||||||
Adjusted Net Income: | |||||||||||||||
GAAP Net loss | $ | (8,067 | ) | $ | (15,082 | ) | $ | (76,303 | ) | $ | (11,457 | ) | |||
GAAP Income tax (benefit) expense | (5,909 | ) | (13,736 | ) | (5,653 | ) | (13,317 | ) | |||||||
Lease termination and closing costs | 2,236 | — | 3,779 | (2 | ) | ||||||||||
Consulting project costs | 4,756 | — | 6,420 | 2,786 | |||||||||||
Acquisition costs | 232 | — | 11,123 | — | |||||||||||
Reorganization severance | 1,368 | — | 2,202 | 1,072 | |||||||||||
Non-recurring legal expenses | 470 | 558 | 850 | 916 | |||||||||||
Donations | 245 | — | 335 | 805 | |||||||||||
Non-recurring restaurant expenses | — | 1,442 | — | 1,442 | |||||||||||
Non-recurring corporate expenses | — | — | 12 | — | |||||||||||
Impairment charges | — | 22,930 | 2,115 | 22,930 | |||||||||||
Discontinued operations | 792 | 12,663 | 26,437 | 10,638 | |||||||||||
Loss on the write-off of deferred financing costs | — | — | 18,266 | — | |||||||||||
Change in estimate for gift card breakage | 691 | (563 | ) | 691 | (563 | ) | |||||||||
Adjusted Pre-tax (loss) income | (3,186 | ) | 8,212 | (9,726 | ) | 15,250 | |||||||||
Income tax (benefit) expense | (1,720 | ) | 1,889 | (5,252 | ) | 3,508 | |||||||||
Adjusted net (loss) income | $ | (1,466 | ) | $ | 6,323 | $ | (4,474 | ) | $ | 11,743 | |||||
Adjusted net (loss) income per basic share | $ | (0.04 | ) | $ | 0.31 | $ | (0.18 | ) | $ | 0.54 | |||||
Adjusted net (loss) income per diluted share | $ | (0.04 | ) | $ | 0.30 | $ | (0.18 | ) | $ | 0.54 |
13 weeks ended | 16 weeks ended | 52 weeks ended | |||||||||||||
(Amounts in thousands) | December 25, 2018 | December 26, 2017 | December 25, 2018 | December 26, 2017 | |||||||||||
Operating loss | $ | (5,951 | ) | $ | (14,350 | ) | $ | (22,530 | ) | $ | (11,918 | ) | |||
Add: | |||||||||||||||
Pre-opening costs | 3,244 | 149 | 9,351 | 2,182 | |||||||||||
Donations | 245 | — | 335 | 836 | |||||||||||
Lease termination and closing costs | 2,236 | — | 3,779 | (2 | ) | ||||||||||
Depreciation and amortization | 6,979 | 5,753 | 21,713 | 17,595 | |||||||||||
Acquisition costs | 232 | — | 11,123 | — | |||||||||||
Consulting project costs | 4,756 | — | 6,420 | 2,786 | |||||||||||
Non-recurring legal expenses | 470 | 558 | 850 | 916 | |||||||||||
Reorganization severance | 1,368 | — | 2,202 | 1,072 | |||||||||||
Impairment charges | — | 22,930 | 2,115 | 22,930 | |||||||||||
Insurance settlement | — | — | (72 | ) | — | ||||||||||
Adjusted EBITDA | $ | 13,579 | $ | 15,040 | $ | 35,286 | $ | 36,397 | |||||||
Adjusted EBITDA margin | 11.0 | % | 15.0 | % | 9.3 | % | 12.4 | % |
13 weeks ended | 16 weeks ended | 52 weeks ended | |||||||||||||
(Amounts in thousands) | December 25, 2018 | December 26, 2017 | December 25, 2018 | December 26, 2017 | |||||||||||
Operating income loss | $ | (5,951 | ) | $ | (14,350 | ) | $ | (22,530 | ) | $ | (11,918 | ) | |||
Add: | |||||||||||||||
Pre-opening costs | 3,244 | 149 | 9,351 | 2,182 | |||||||||||
General and administrative costs | 11,833 | 8,835 | 39,650 | 26,891 | |||||||||||
Donations | 245 | — | 335 | 836 | |||||||||||
Consulting project costs | 4,756 | — | 6,420 | 2,786 | |||||||||||
Acquisition costs | 232 | — | 11,123 | — | |||||||||||
Reorganization severance | 1,368 | — | 2,202 | 1,072 | |||||||||||
Lease termination and closing costs | 2,236 | — | 3,779 | (2 | ) | ||||||||||
Depreciation and amortization | 6,979 | 5,753 | 21,713 | 17,595 | |||||||||||
Non-cash impairment charges | — | 22,930 | 2,115 | 22,930 | |||||||||||
Insurance settlement | — | — | (72 | ) | — | ||||||||||
Restaurant-level EBITDA | $ | 24,942 | $ | 23,317 | $ | 74,086 | $ | 62,372 |
13 Weeks Ended | 13 Weeks Ended (recast)(1) | 52 Weeks Ended (recast)(1) | |||||||||||||||||||||||||
(Amounts in thousands, except per share data) | December 25, 2018 | December 26, 2017 | December 25, 2018 | December 26, 2017 | |||||||||||||||||||||||
Revenues | $ | 123,849 | 100.0 | % | $ | 114,738 | 100.0 | % | $ | 448,906 | 100.0 | % | $ | 421,642 | 100.0 | % | |||||||||||
Costs and expenses: | |||||||||||||||||||||||||||
Costs of sales | 34,481 | 27.8 | 31,665 | (2) | 27.6 | 123,258 | 27.5 | 115,432 | 27.4 | ||||||||||||||||||
Restaurant operating expenses (excluding depreciation and amortization shown separately below) | 61,272 | 49.5 | 52,054 | (2) | 45.4 | 223,445 | 49.8 | 204,693 | 48.5 | ||||||||||||||||||
Marketing and advertising costs | 3,154 | 2.5 | 2,869 | (2) | 2.5 | 8,716 | 1.9 | 7,040 | 1.7 | ||||||||||||||||||
Pre-opening costs | 3,244 | 2.6 | 268 | (2) | 0.2 | 10,105 | 2.3 | 3,819 | 0.9 | ||||||||||||||||||
General and administrative costs | 11,833 | 9.6 | 12,049 | (2) | 10.5 | 55,759 | 12.4 | 39,364 | 9.3 | ||||||||||||||||||
Donations | 245 | 0.2 | — | —% | 335 | 0.1 | 836 | 0.2 | |||||||||||||||||||
Consulting project costs | 4,756 | 3.8 | — | (3) | —% | 6,420 | 1.4 | 2,786 | 0.7 | ||||||||||||||||||
Acquisition costs | 232 | 0.2 | — | —% | 12,247 | 2.7 | — | —% | |||||||||||||||||||
Reorganization severance | 1,368 | 1.1 | — | —% | 2,202 | 0.5 | 1,072 | 0.3 | |||||||||||||||||||
Lease termination and closing costs | 2,236 | 1.8 | (2 | ) | (3) | — | 3,779 | 0.8 | (2 | ) | — | ||||||||||||||||
Impairment charges | — | — | 22,930 | 20.0 | 2,115 | 0.5 | 22,930 | 5.4 | |||||||||||||||||||
Depreciation and amortization | 6,979 | 5.6 | 8,049 | (2) | 7.0 | 25,371 | 5.7 | 23,707 | 5.6 | ||||||||||||||||||
Total costs and expenses | 129,800 | 104.8 | 129,882 | 113.2 | 473,751 | 105.5 | 421,677 | 100.0 | |||||||||||||||||||
Insurance settlement | — | — | — | —% | 72 | — | — | —% | |||||||||||||||||||
Operating loss | (5,951 | ) | (4.8 | ) | (15,144 | ) | (13.2 | ) | (24,773 | ) | (5.5 | ) | (35 | ) | — | ||||||||||||
Other income (expense), net: | |||||||||||||||||||||||||||
Interest, net of capitalized interest | (6,956 | ) | (5.6 | ) | (1,359 | ) | (3) | (1.2 | ) | (34,426 | ) | (7.7 | ) | (4,486 | ) | (1.1 | ) | ||||||||||
Other | (277 | ) | (0.2 | ) | (1,608 | ) | (3) | (1.4 | ) | (811 | ) | (0.2 | ) | (1,663 | ) | (0.4 | ) | ||||||||||
Loss before income taxes | (13,184 | ) | (10.6 | ) | (18,111 | ) | (15.8 | ) | (60,010 | ) | (13.4 | ) | (6,184 | ) | (1.5 | ) | |||||||||||
Income tax (benefit) expense | (5,909 | ) | (4.8 | ) | (15,399 | ) | (4) | (13.4 | ) | (6,110 | ) | (1.4 | ) | (5,826 | ) | (1.4 | ) | ||||||||||
Loss from continuing operations | (7,275 | ) | (5.9 | ) | (2,712 | ) | (2.4 | ) | (53,900 | ) | (12.0 | ) | (358 | ) | (0.1 | ) | |||||||||||
Loss from discontinued operations, net of tax | (792 | ) | (0.6 | ) | (12,741 | ) | (11.1 | ) | (26,437 | ) | (5.9 | ) | (10,638 | ) | (2.5 | ) | |||||||||||
Net loss | $ | (8,067 | ) | (6.5 | )% | $ | (15,453 | ) | (13.5 | )% | $ | (80,337 | ) | (17.9 | )% | $ | (10,996 | ) | (2.6 | )% | |||||||
Net loss per average common share outstanding—basic | |||||||||||||||||||||||||||
Loss from continuing operations | $ | (0.22 | ) | $ | (0.13 | ) | $ | (2.12 | ) | $ | (0.02 | ) | |||||||||||||||
Loss from discontinued operations | (0.02 | ) | (0.62 | ) | (1.04 | ) | (0.49 | ) | |||||||||||||||||||
Net income loss | $ | (0.24 | ) | $ | (0.76 | ) | $ | (3.16 | ) | $ | (0.51 | ) | |||||||||||||||
Basic | 33,322 | 20,431 | 25,412 | 21,570 |
(1) | Recast amounts for the 13 weeks ended December 26, 2017, and 52 weeks ended December 25, 2018 and December 26, 2017 include historical amounts for Barcelona and bartaco Brands, which were acquired during the third quarter of 2018, prior to acquisition. |
(2) | Recast 2017 amount reflects a presumed proportionate decrease over the reported fourth quarter of fiscal 2017 amount, reflecting the thirteen weeks in recast 2017 revenues over reported sixteen weeks in fourth quarter of fiscal 2017 revenues, which was determined based on the revenues recorded in the Company’s historical books and records, less three operating weeks excluded in the recast fourth quarter of fiscal 2017 period. |
(3) | Recast 2017 amount equals the reported 2017 amount. |
(4) | Based on the same tax rate used for the reported 2017 results. |
13 Weeks Ended December 25, 2018 | |||||||||||||||||||||||||||
(Amounts in thousands) | Double Eagle | Barcelona | bartaco | Grille | |||||||||||||||||||||||
Revenues | $ | 57,421 | 100.0 | % | $ | 16,874 | 100.0 | % | $ | 17,523 | 100.0 | % | $ | 32,031 | 100.0 | % | |||||||||||
Costs and expenses: | |||||||||||||||||||||||||||
Cost of sales | 17,091 | 29.8 | 4,484 | 26.6 | 4,076 | 23.3 | 8,830 | 27.6 | |||||||||||||||||||
Restaurant operating expenses: | |||||||||||||||||||||||||||
Labor | 13,361 | 23.3 | 5,224 | 31.0 | 6,059 | 34.6 | 10,094 | 31.5 | |||||||||||||||||||
Operating expenses | 6,855 | 11.9 | 2,342 | 13.9 | 2,642 | 15.1 | 4,680 | 14.6 | |||||||||||||||||||
Occupancy | 4,369 | 7.6 | 1,024 | 6.1 | 1,097 | 6.3 | 3,525 | 11.0 | |||||||||||||||||||
Restaurant operating expenses | 24,585 | 42.8 | 8,590 | 50.9 | 9,798 | 55.9 | 18,299 | 57.1 | |||||||||||||||||||
Marketing and advertising costs | 1,987 | 3.5 | 99 | 0.6 | 76 | 0.4 | 992 | 3.1 | |||||||||||||||||||
Restaurant-level EBITDA | $ | 13,758 | 24.0 | % | $ | 3,701 | 21.9 | % | $ | 3,573 | 20.4 | % | $ | 3,910 | 12.2 | % | |||||||||||
Restaurant operating weeks | 203 | 208 | 226 | 295 | |||||||||||||||||||||||
Average weekly volume | $ | 283 | $ | 81 | $ | 78 | $ | 109 |
13 Weeks Ended December 26, 2017 (recast)(1) | |||||||||||||||||||||||||||
(Amounts in thousands) | Double Eagle | Barcelona | bartaco | Grille | |||||||||||||||||||||||
Revenues | $ | 51,852 | 100.0 | % | $ | 15,464 | 100.0 | % | $ | 15,451 | 100.0 | % | $ | 31,971 | 100.0 | % | |||||||||||
Costs and expenses: | |||||||||||||||||||||||||||
Cost of sales(2) | 15,388 | 29.7 | 4,141 | 26.8 | 3,549 | 23.0 | 8,587 | 26.9 | |||||||||||||||||||
Restaurant operating expenses: | |||||||||||||||||||||||||||
Labor(2) | 10,429 | 20.1 | 4,807 | 31.1 | 5,361 | 34.7 | 9,846 | 30.8 | |||||||||||||||||||
Operating expenses(2) | 5,472 | 10.6 | 2,101 | 13.6 | 1,811 | 11.7 | 4,236 | 13.2 | |||||||||||||||||||
Occupancy(2) | 3,251 | 6.3 | 839 | 5.4 | 623 | 4.0 | 3,278 | 10.3 | |||||||||||||||||||
Restaurant operating expenses | 19,151 | 36.9 | 7,748 | 50.1 | 7,795 | 50.4 | 17,360 | 54.3 | |||||||||||||||||||
Marketing and advertising costs(2) | 1,432 | 2.8 | 90 | 0.6 | 84 | 0.5 | 1,263 | 4.0 | |||||||||||||||||||
Restaurant-level EBITDA | $ | 15,881 | 30.6 | % | $ | 3,485 | 22.5 | % | $ | 4,023 | 26.0 | % | $ | 4,761 | 14.9 | % | |||||||||||
Insurance settlement (Barteca) pre acquisition(3) | (523 | ) | |||||||||||||||||||||||||
Adjusted Restaurant-level EBITDA | $ | 15,881 | 30.6 | % | $ | 3,485 | 22.5 | % | $ | 3,500 | 22.7 | % | $ | 4,761 | 14.9 | % | |||||||||||
Restaurant operating weeks | 169 | 195 | 195 | 312 | |||||||||||||||||||||||
Average weekly volume | $ | 307 | $ | 79 | $ | 79 | $ | 103 |
(1) | Recast amounts for the 13 weeks ended December 26, 2017 include historical amounts for Barcelona and bartaco Brands, which were acquired during the third quarter of 2018, prior to acquisition. |
(2) | Recast 2017 amount reflects a presumed proportionate decrease over the reported fourth quarter of fiscal 2017 amount, reflecting the thirteen weeks in recast 2017 revenues over reported sixteen weeks in fourth quarter of fiscal 2017 revenues, which was determined based on the revenues recorded in the Company’s historical books and records, less three operating weeks excluded in the recast fourth quarter of fiscal 2017 period. |
(3) | Prior to the Barteca Acquisition, starting in Q4 of 2017 and continuing through the first half of 2018, Barteca management recognized insurance settlement proceeds from a location-specific incident as a reduction to restaurant operating expenses, which therefore increased restaurant-level EBITDA margins by the amount of those proceeds for that period of time. Under US GAAP rules, the Company recognizes insurance settlement proceeds from business interruptions as a separate line item below other operating activity in its Consolidated Statements of Operations and, therefore, such proceeds are not included within restaurant-level EBITDA as calculated by the Company. Accordingly, consistent with the Company’s accounting policy, 2017 insurance settlement proceeds have been adjusted out of restaurant operating expenses and restaurant-level EBITDA as originally factored in by Barteca management prior to the Barteca Acquisition. |
52 Weeks Ended December 25, 2018 (recast)(1) | |||||||||||||||||||||||||||
(Amounts in thousands) | Double Eagle | Barcelona | bartaco | Grille | |||||||||||||||||||||||
Revenues | $ | 182,957 | 100.0 | % | $ | 67,232 | 100.0 | % | $ | 77,728 | 100.0 | % | $ | 120,989 | 100.0 | % | |||||||||||
Costs and expenses: | |||||||||||||||||||||||||||
Cost of sales | 54,559 | 29.8 | 17,934 | 26.7 | 17,694 | 23.0 | 33,071 | 27.3 | |||||||||||||||||||
Restaurant operating expenses: | |||||||||||||||||||||||||||
Labor | 44,600 | 24.4 | 20,614 | 30.7 | 25,382 | 32.7 | 39,259 | 32.4 | |||||||||||||||||||
Operating expenses | 21,815 | 11.9 | 8,872 | 13.2 | 9,819 | 12.6 | 17,560 | 14.5 | |||||||||||||||||||
Occupancy | 15,161 | 8.3 | 3,493 | 5.2 | 3,431 | 4.4 | 13,439 | 11.1 | |||||||||||||||||||
Restaurant operating expenses | 81,576 | 44.6 | 32,979 | 49.1 | 38,632 | 49.7 | 70,258 | 58.1 | |||||||||||||||||||
Marketing and advertising costs | 4,981 | 2.7 | 372 | 0.6 | 454 | 0.6 | 2,909 | 2.4 | |||||||||||||||||||
Restaurant-level EBITDA | $ | 41,841 | 22.9 | % | $ | 15,948 | 23.7 | % | $ | 20,948 | 27.0 | % | $ | 14,751 | 12.2 | % | |||||||||||
Restaurant operating weeks | 717 | 821 | 871 | 1,229 | |||||||||||||||||||||||
Average weekly volume | $ | 255 | $ | 82 | $ | 89 | $ | 98 |
(1) | Recast amounts for the 52 weeks ended December 25, 2018 include historical amounts for Barcelona and bartaco Brands, which were acquired during the third quarter of 2018, prior to acquisition. |
52 Weeks Ended December 26, 2017 (recast)(1) | |||||||||||||||||||||||||||
(Amounts in thousands) | Double Eagle | Barcelona | bartaco | Grille | |||||||||||||||||||||||
Revenues | $ | 176,713 | 100.0 | % | $ | 60,793 | 100.0 | % | $ | 67,022 | 100.0 | % | $ | 117,114 | 100.0 | % | |||||||||||
Costs and expenses: | |||||||||||||||||||||||||||
Cost of sales | 52,944 | 30.0 | 16,268 | 26.8 | 15,547 | 23.2 | 30,673 | 26.2 | |||||||||||||||||||
Restaurant operating expenses: | |||||||||||||||||||||||||||
Labor | 41,935 | 23.7 | 18,594 | 30.6 | 21,588 | 32.2 | 39,163 | 33.4 | |||||||||||||||||||
Operating expenses | 18,846 | 10.7 | 8,066 | 13.3 | 9,226 | 13.8 | 15,849 | 13.5 | |||||||||||||||||||
Occupancy | 12,511 | 7.1 | 3,218 | 5.3 | 2,481 | 3.7 | 13,216 | 11.3 | |||||||||||||||||||
Restaurant operating expenses | 73,292 | 41.5 | 29,878 | 49.1 | 33,295 | 49.7 | 68,228 | 58.3 | |||||||||||||||||||
Marketing and advertising costs | 3,568 | 2.0 | 359 | 0.6 | 363 | 0.5 | 2,750 | 2.3 | |||||||||||||||||||
Restaurant-level EBITDA | $ | 46,909 | 26.5 | % | $ | 14,288 | 23.5 | % | $ | 17,817 | 26.6 | % | $ | 15,463 | 13.2 | % | |||||||||||
Insurance settlement (Barteca) pre acquisition(2) | (523 | ) | |||||||||||||||||||||||||
Adjusted Restaurant-level EBITDA | $ | 46,909 | 26.5 | % | $ | 14,288 | 23.5 | % | $ | 17,294 | 25.8 | % | $ | 15,463 | 13.2 | % | |||||||||||
Restaurant operating weeks | 655 | 753 | 690 | 1,221 | |||||||||||||||||||||||
Average weekly volume | $ | 270 | $ | 81 | $ | 97 | $ | 95.9 |
(1) | Recast amounts for the 52 weeks ended December 26, 2017 include historical amounts for Barcelona and bartaco Brands, which were acquired during the third quarter of 2018, prior to acquisition. |
(2) | Prior to the Barteca Acquisition, starting in Q4 of 2017 and continuing through the first half of 2018, Barteca management recognized insurance settlement proceeds from a location-specific incident as a reduction to restaurant operating expenses, which therefore increased restaurant-level EBITDA margins by the amount of those proceeds for that period of time. Under US GAAP rules, the Company recognizes insurance settlement proceeds from business interruptions as a separate line item below other operating activity in its Consolidated Statements of Operations and, therefore, such proceeds are not included within restaurant-level EBITDA as calculated by the Company. Accordingly, consistent with the Company’s accounting policy, 2017 insurance settlement proceeds have been adjusted out of restaurant operating expenses and restaurant-level EBITDA as originally factored in by Barteca management prior to the Barteca Acquisition. |
13 Weeks Ended | 13 Weeks Ended (recast)(1) | 52 Weeks Ended (recast)(1) | |||||||||||||
(Amounts in thousands, except per share data) | December 25, 2018 | December 26, 2017 | December 25, 2018 | December 26, 2017 | |||||||||||
Adjusted Net Income: | |||||||||||||||
Net loss | $ | (8,067 | ) | $ | (15,453 | ) | $ | (80,337 | ) | $ | (10,996 | ) | |||
Income tax (benefit) expense | (5,909 | ) | (15,399 | ) | (2) | (6,110 | ) | (5,826 | ) | ||||||
Lease termination and closing costs | 2,236 | (2 | ) | 3,779 | (2 | ) | |||||||||
Consulting project costs | 4,756 | — | (3) | 5,558 | 2,786 | ||||||||||
Acquisition costs | 232 | — | 12,247 | — | |||||||||||
Reorganization severance | 1,368 | — | 2,202 | 1,072 | |||||||||||
Non-recurring legal expenses | 470 | 558 | 850 | 916 | |||||||||||
Donations | 245 | — | 335 | 805 | |||||||||||
Non-recurring restaurant expenses | — | 1,442 | — | 1,442 | |||||||||||
Non-recurring corporate expenses | — | — | 12 | — | |||||||||||
Impairment charges | — | 22,930 | 2,115 | 22,930 | |||||||||||
Discontinued operations | 792 | 12,741 | 26,437 | 10,638 | |||||||||||
Loss on the write-off of deferred financing costs | — | — | 18,266 | — | |||||||||||
Change in estimate for gift card breakage | 691 | (563 | ) | 691 | (563 | ) | |||||||||
Adjusted pre-tax (loss) income | (3,186 | ) | 6,254 | (13,955 | ) | 23,202 | |||||||||
Income tax (benefit) expense(4) | (1,720 | ) | 1,438 | (7,536 | ) | 5,336 | |||||||||
Adjusted net (loss) income | $ | (1,466 | ) | $ | 4,815 | $ | (6,419 | ) | $ | 17,865 | |||||
Adjusted net (loss) income per basic share | $ | (0.04 | ) | $ | 0.24 | $ | (0.25 | ) | $ | 0.83 |
13 Weeks Ended | 13 Weeks Ended (recast)(1) | 52 Weeks Ended (recast)(1) | |||||||||||||
(Amounts in thousands) | December 25, 2018 | December 26, 2017 | December 25, 2018 | December 26, 2017 | |||||||||||
Operating income | $ | (5,951 | ) | $ | (15,144 | ) | $ | (24,773 | ) | $ | (35 | ) | |||
Add: | |||||||||||||||
Pre-opening costs | 3,244 | 268 | (5) | 10,105 | 3,819 | ||||||||||
General and administrative costs | 11,833 | 12,049 | (5) | 55,759 | 39,364 | ||||||||||
Donations | 245 | — | 335 | 836 | |||||||||||
Consulting project costs | 4,756 | — | (5) | 6,420 | 2,786 | ||||||||||
Acquisition costs | 232 | — | 12,247 | — | |||||||||||
Reorganization severance | 1,368 | — | 2,202 | 1,072 | |||||||||||
Lease termination and closing costs | 2,236 | (2 | ) | (3) | 3,779 | (2 | ) | ||||||||
Depreciation and amortization | 6,979 | 8,049 | (5) | 25,371 | 23,707 | ||||||||||
Non-cash impairment charges | — | 22,930 | 2,115 | 22,930 | |||||||||||
Insurance settlement | — | — | (72 | ) | — | ||||||||||
Restaurant-level EBITDA | $ | 24,942 | $ | 28,150 | $ | 93,488 | $ | 94,477 | |||||||
Insurance settlement (Barteca) pre acquisition(6) | $ | (523 | ) | $ | (523 | ) | |||||||||
Adjusted Restaurant-level EBITDA | $ | 24,942 | $ | 27,627 | $ | 93,488 | $ | 93,954 |
(1) | Recast amounts for the 13 weeks ended December 26, 2017, and 52 weeks ended December 25, 2018 and December 26, 2017 include historical amounts for Barcelona and bartaco Brands, which were acquired during the third quarter of 2018, prior to acquisition. |
(2) | Based on the same tax rate used for the reported 2017 results. |
(3) | Recast 2017 amount equals the reported 2017 amount. |
(4) | Income tax expense at an effective tax rate of 54% for the 2018 period and 23% for the 2017 period. |
(5) | Recast 2017 amount reflects a presumed proportionate decrease over the reported fourth quarter of fiscal 2017 amount, reflecting the thirteen weeks in recast 2017 revenues over reported sixteen weeks in fourth quarter of fiscal 2017 revenues, which was determined based on the revenues recorded in the Company’s historical books and records, less three operating weeks excluded in the recast fourth quarter of fiscal 2017 period. |
(6) | Prior to the Barteca Acquisition, starting in Q4 of 2017 and continuing through the first half of 2018, Barteca management recognized insurance settlement proceeds from a location-specific incident as a reduction to restaurant operating expenses, which therefore increased restaurant-level EBITDA margins by the amount of those proceeds for that period of time. Under US GAAP rules, the Company recognizes insurance settlement proceeds from business interruptions as a separate line item below other operating activity in its Consolidated Statements of Operations and, therefore, such proceeds are not included within restaurant-level EBITDA as calculated by the Company. Accordingly, consistent with the Company’s accounting policy, 2017 insurance settlement proceeds have been adjusted out of restaurant operating expenses and restaurant-level EBITDA as originally factored in by Barteca management prior to the Barteca Acquisition. |
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