Delaware | 20-8453116 |
(State or other jurisdiction of incorporation) | (IRS Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Common Stock, $0.001 par value per share | DFRG | The Nasdaq Global Select Market |
DEL FRISCO’S RESTAURANT GROUP, INC. | |||
Date: | August 6, 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 73.9% to $131.7 million from $75.7 million due primarily to $21.1 million in contributions from Barcelona Wine Bar and $28.2 million in contributions from bartaco. |
• | Total comparable restaurant sales increased 0.5%. |
• | GAAP net loss of $6.4 million, or $0.19 per diluted share, compared to GAAP net loss of $1.6 million, or $0.08 per diluted share. |
• | Adjusted net loss* of $1.5 million, or $0.05 per diluted share, compared to adjusted net income* of $3.0 million, or $0.15 per diluted share. |
• | GAAP operating loss of $0.6 million, compared to GAAP operating loss of $3.0 million |
• | Adjusted EBITDA* increased 60.3% to $13.1 million from $8.2 million. As a percentage of consolidated revenues, adjusted EBITDA margin decreased 80 basis points to 10.0% from 10.8%. |
• | Restaurant-level EBITDA* increased 74.9% to $28.3 million from $16.2 million due primarily to $5.2 million in contributions from Barcelona Wine Bar and $6.9 million in contributions from bartaco. As a percentage of consolidated revenues, restaurant-level EBITDA margin increased 10 basis points to 21.5% from 21.4%. Sequentially, restaurant-level EBITDA margin improved 260 basis points relative to the first quarter of 2019. |
Total | Double Eagle | Del Frisco’s Grille | Barcelona | bartaco | |||||
Comparable Restaurant Sales | 0.5% | (1.5)% | (0.6)% | 2.4% | 5.5% | ||||
Customer Counts | (1.2)% | (3.7)% | (8.3)% | 4.9% | 3.3% | ||||
Average Check | 1.7% | 2.2% | 7.7% | (2.5)% | 2.2% |
• | A Barcelona Wine Bar opened in Raleigh, NC during the second quarter of 2019. |
• | A bartaco restaurant opened in Deerfield, IL during the second quarter of 2019. |
13 Weeks Ended | 26 Weeks Ended | ||||||||||||||||||||||||||
(Amounts in thousands, except per share data) | June 25, 2019 | June 26, 2018 | June 25, 2019 | June 26, 2018 | |||||||||||||||||||||||
Revenues | $ | 131,687 | 100.0 | % | $ | 75,718 | 100.0 | % | $ | 252,068 | 100.0 | % | $ | 149,064 | 100.0 | % | |||||||||||
Costs and expenses: | |||||||||||||||||||||||||||
Costs of sales | 35,873 | 27.2 | 21,537 | 28.4 | 69,165 | 27.4 | 42,754 | 28.7 | |||||||||||||||||||
Restaurant operating expenses (excluding depreciation and amortization shown separately below) | 65,261 | 49.6 | 36,337 | 48.0 | 127,399 | 50.5 | 72,558 | 48.7 | |||||||||||||||||||
Marketing and advertising costs | 2,260 | 1.7 | 1,666 | 2.2 | 4,512 | 1.8 | 3,196 | 2.1 | |||||||||||||||||||
Pre-opening costs | 1,301 | 1.0 | 1,403 | 1.9 | 4,050 | 1.6 | 2,549 | 1.7 | |||||||||||||||||||
General and administrative costs | 17,117 | 13.0 | 7,988 | 10.5 | 33,489 | 13.3 | 15,778 | 10.6 | |||||||||||||||||||
Donations | 163 | 0.1 | 16 | — | 195 | 0.1 | 58 | — | |||||||||||||||||||
Consulting project costs | 3,450 | 2.6 | 621 | 0.8 | 7,954 | 3.2 | 854 | 0.6 | |||||||||||||||||||
Acquisition costs | — | — | 4,338.0 | 5.7 | — | — | 4,946 | 3.3 | |||||||||||||||||||
Reorganization severance | 480 | 0.4 | — | — | 777 | 0.3 | 113 | 0.1 | |||||||||||||||||||
Lease termination and closing costs | (1,754 | ) | (1.3 | ) | 589 | 0.8 | 1,154 | 0.5 | 591 | 0.4 | |||||||||||||||||
Depreciation and amortization | 8,144 | 6.2 | 4,237 | 5.6 | 15,795 | 6.3 | 8,372 | 5.6 | |||||||||||||||||||
Total costs and expenses | 132,295 | 100.5 | 78,732 | 104.0 | 264,490 | 104.9 | 151,769 | 101.8 | |||||||||||||||||||
Operating loss | (608 | ) | (0.5 | ) | (3,014 | ) | (4.0 | ) | (12,422 | ) | (4.9 | ) | (2,705 | ) | (1.8 | ) | |||||||||||
Other income (expense), net: | |||||||||||||||||||||||||||
Interest, net of capitalized interest | (8,409 | ) | (6.4 | ) | (510 | ) | (0.7 | ) | (16,129 | ) | (6.4 | ) | (814 | ) | (0.5 | ) | |||||||||||
Other | (32 | ) | — | (50 | ) | (0.1 | ) | (19 | ) | — | (49 | ) | — | ||||||||||||||
Loss before income taxes | (9,049 | ) | (6.9 | ) | (3,574 | ) | (4.7 | ) | (28,570 | ) | (11.3 | ) | (3,568 | ) | (2.4 | ) | |||||||||||
Income tax benefit | (2,651 | ) | (2.0 | ) | (2,182 | ) | (2.9 | ) | (3,845 | ) | (1.5 | ) | (2,181 | ) | (1.5 | ) | |||||||||||
Loss from continuing operations | (6,398 | ) | (4.9 | ) | (1,392 | ) | (1.8 | ) | (24,725 | ) | (9.8 | ) | (1,387 | ) | (0.9 | ) | |||||||||||
(Loss) income from discontinued operations, net of tax | — | — | (170 | ) | (0.2 | ) | — | — | 225 | 0.2 | |||||||||||||||||
Net loss | $ | (6,398 | ) | (4.9 | )% | $ | (1,562 | ) | (2.1 | )% | $ | (24,725 | ) | (9.8 | )% | $ | (1,162 | ) | (0.8 | )% | |||||||
Net loss per average common share outstanding — basic and diluted | |||||||||||||||||||||||||||
Loss from continuing operations | $ | (0.19 | ) | $ | (0.07 | ) | $ | (0.74 | ) | $ | (0.07 | ) | |||||||||||||||
(Loss) income from discontinued operations | — | (0.01 | ) | — | 0.01 | ||||||||||||||||||||||
Net loss | $ | (0.19 | ) | $ | (0.08 | ) | $ | (0.74 | ) | $ | (0.06 | ) | |||||||||||||||
Weighted-average number of common shares outstanding: | |||||||||||||||||||||||||||
Basic: | 33,417 | 20,377 | 33,387 | 20,347 | |||||||||||||||||||||||
Diluted: | 33,417 | 20,377 | 33,387 | 20,347 |
As of | ||||||||
(Amounts in thousands) | June 25, 2019 | December 25, 2018 | ||||||
Cash and cash equivalents | $ | 10,671 | $ | 8,535 | ||||
Total assets | 896,618 | 726,032 | ||||||
Long-term debt | 350,755 | 320,736 | ||||||
Total stockholders' equity | 198,916 | 213,582 |
13 Weeks Ended June 25, 2019 | |||||||||||||||||||||||||||
(Amounts in thousands) | Double Eagle | Barcelona | bartaco | Grille | |||||||||||||||||||||||
Revenues | $ | 49,423 | 100.0 | % | $ | 21,096 | 100.0 | % | $ | 28,227 | 100.0 | % | $ | 32,941 | 100.0 | % | |||||||||||
Costs and expenses: | |||||||||||||||||||||||||||
Cost of sales | 14,412 | 29.2 | 5,612 | 26.6 | 6,742 | 23.9 | 9,107 | 27.6 | |||||||||||||||||||
Restaurant operating expenses: | |||||||||||||||||||||||||||
Labor | 12,056 | 24.4 | 6,378 | 30.2 | 9,257 | 32.8 | 10,337 | 31.4 | |||||||||||||||||||
Operating expenses | 5,866 | 11.9 | 2,632 | 12.5 | 3,648 | 12.9 | 4,751 | 14.4 | |||||||||||||||||||
Occupancy | 4,292 | 8.7 | 1,040 | 4.9 | 1,571 | 5.6 | 3,433 | 10.4 | |||||||||||||||||||
Restaurant operating expenses | 22,214 | 44.9 | 10,050 | 47.6 | 14,476 | 51.3 | 18,521 | 56.2 | |||||||||||||||||||
Marketing and advertising costs | 1,292 | 2.6 | 226 | 1.1 | 108 | 0.4 | 634 | 1.9 | |||||||||||||||||||
Restaurant-level EBITDA | $ | 11,505 | 23.3 | % | $ | 5,208 | 24.7 | % | $ | 6,901 | 24.4 | % | $ | 4,679 | 14.2 | % | |||||||||||
Restaurant operating weeks | 208 | 221 | 270 | 312 | |||||||||||||||||||||||
Average weekly volume | $ | 238 | $ | 95 | $ | 105 | $ | 106 |
13 Weeks Ended June 26, 2018 | |||||||||||||||||||||||||||
(Amounts in thousands) | Double Eagle | Barcelona | bartaco | Grille | |||||||||||||||||||||||
Revenues | $ | 43,471 | 100.0 | % | $ | — | — | % | $ | — | — | % | $ | 32,247 | 100.0 | % | |||||||||||
Costs and expenses: | |||||||||||||||||||||||||||
Cost of sales | 12,780 | 29.4 | — | — | — | — | 8,757 | 27.2 | |||||||||||||||||||
Restaurant operating expenses: | |||||||||||||||||||||||||||
Labor | 9,986 | 23.0 | — | — | — | — | 10,199 | 31.6 | |||||||||||||||||||
Operating expenses | 5,011 | 11.5 | — | — | — | — | 4,395 | 13.6 | |||||||||||||||||||
Occupancy | 3,545 | 8.2 | — | — | — | — | 3,201 | 9.9 | |||||||||||||||||||
Restaurant operating expenses | 18,542 | 42.7 | — | — | — | — | 17,795 | 55.2 | |||||||||||||||||||
Marketing and advertising costs | 1,019 | 2.3 | — | — | — | — | 647 | 2.0 | |||||||||||||||||||
Restaurant-level EBITDA | $ | 11,130 | 25.6 | % | $ | — | — | % | $ | — | — | % | $ | 5,048 | 15.7 | % | |||||||||||
Restaurant operating weeks | 169 | — | — | 316 | |||||||||||||||||||||||
Average weekly volume | $ | 257 | $ | — | $ | — | $ | 102 |
26 Weeks Ended June 25, 2019 | |||||||||||||||||||||||||||
(Amounts in thousands) | Double Eagle | Barcelona | bartaco | Grille | |||||||||||||||||||||||
Revenues | $ | 99,398 | 100.0 | % | $ | 38,287 | 100.0 | % | $ | 49,109 | 100.0 | % | $ | 65,274 | 100.0 | % | |||||||||||
Costs and expenses: | |||||||||||||||||||||||||||
Cost of sales | 29,306 | 29.5 | 10,249 | 26.8 | 11,640 | 23.7 | 17,970 | 27.5 | |||||||||||||||||||
Restaurant operating expenses: | |||||||||||||||||||||||||||
Labor | 25,452 | 25.6 | 11,964 | 31.2 | 16,444 | 33.5 | 20,699 | 31.7 | |||||||||||||||||||
Operating expenses | 11,752 | 11.8 | 4,937 | 12.9 | 6,659 | 13.6 | 9,350 | 14.3 | |||||||||||||||||||
Occupancy | 8,326 | 8.4 | 2,033 | 5.3 | 2,887 | 5.9 | 6,896 | 10.6 | |||||||||||||||||||
Restaurant operating expenses | 45,530 | 45.8 | 18,934 | 49.5 | 25,990 | 52.9 | 36,945 | 56.6 | |||||||||||||||||||
Marketing and advertising costs | 2,632 | 2.6 | 429 | 1.1 | 163 | 0.3 | 1,288 | 2.0 | |||||||||||||||||||
Restaurant-level EBITDA | $ | 21,930 | 22.1 | % | $ | 8,675 | 22.7 | % | $ | 11,316 | 23.0 | % | $ | 9,071 | 13.9 | % | |||||||||||
Restaurant operating weeks | 411 | 425 | 514 | 624 | |||||||||||||||||||||||
Average weekly volume | $ | 242 | $ | 90 | $ | 96 | $ | 105 |
26 Weeks Ended June 26, 2018 | |||||||||||||||||||||||||||
(Amounts in thousands) | Double Eagle | Barcelona | bartaco | Grille | |||||||||||||||||||||||
Revenues | $ | 87,425 | 100.0 | % | $ | — | — | % | $ | — | — | % | $ | 61,639 | 100.0 | % | |||||||||||
Costs and expenses: | |||||||||||||||||||||||||||
Cost of sales | 25,948 | 29.7 | — | — | — | — | 16,806 | 27.3 | |||||||||||||||||||
Restaurant operating expenses: | |||||||||||||||||||||||||||
Labor | 20,353 | 23.3 | — | — | — | — | 20,012 | 32.5 | |||||||||||||||||||
Operating expenses | 9,881 | 11.3 | — | — | — | — | 8,566 | 13.9 | |||||||||||||||||||
Occupancy | 7,153 | 8.2 | — | — | — | — | 6,593 | 10.7 | |||||||||||||||||||
Restaurant operating expenses | 37,387 | 42.8 | — | — | — | — | 35,171 | 57.1 | |||||||||||||||||||
Marketing and advertising costs | 1,914 | 2.2 | — | — | — | — | 1,282 | 2.1 | |||||||||||||||||||
Restaurant-level EBITDA | $ | 22,176 | 25.4 | % | $ | — | — | % | $ | — | — | % | $ | 8,380 | 13.6 | % | |||||||||||
Restaurant operating weeks | 338 | — | — | 638 | |||||||||||||||||||||||
Average weekly volume | $ | 259 | $ | — | $ | — | $ | 97 |
13 Weeks Ended | 26 Weeks Ended | ||||||||||||||
(Amounts in thousands, except per share data) | June 25, 2019 | June 26, 2018 | June 25, 2019 | June 26, 2018 | |||||||||||
Adjusted Net Income: | |||||||||||||||
GAAP Net loss | $ | (6,398 | ) | $ | (1,562 | ) | $ | (24,725 | ) | $ | (1,162 | ) | |||
GAAP Income tax (benefit) expense | (2,651 | ) | (2,182 | ) | (3,845 | ) | (2,181 | ) | |||||||
Lease termination and closing costs | (1,754 | ) | 589 | 1,154 | 591 | ||||||||||
Consulting project costs | 3,450 | 440 | 7,954 | 506 | |||||||||||
Acquisition costs | — | 4,338 | — | 4,946 | |||||||||||
Reorganization severance | 480 | — | 777 | 113 | |||||||||||
Non-recurring legal expenses | 1,954 | 179 | 2,332 | 338 | |||||||||||
Donations | 163 | 16 | 195 | 58 | |||||||||||
Non-recurring corporate expenses | 1 | 2 | 387 | 10 | |||||||||||
Discontinued operations | — | 170 | — | (225 | ) | ||||||||||
Adjusted Pre-tax (loss) income | (4,755 | ) | 1,990 | (15,771 | ) | 2,994 | |||||||||
Income tax (benefit) expense | (3,233 | ) | (1,035 | ) | (10,724 | ) | (1,557 | ) | |||||||
Adjusted net (loss) income | $ | (1,522 | ) | $ | 3,025 | $ | (5,047 | ) | $ | 4,551 | |||||
Adjusted net (loss) income per basic share | $ | (0.05 | ) | $ | 0.15 | $ | (0.15 | ) | $ | 0.22 | |||||
Adjusted net (loss) income per diluted share | $ | (0.05 | ) | $ | 0.15 | $ | (0.15 | ) | $ | 0.22 |
13 Weeks Ended | 26 Weeks Ended | ||||||||||||||
(Amounts in thousands) | June 25, 2019 | June 26, 2018 | June 25, 2019 | June 26, 2018 | |||||||||||
Operating loss | $ | (608 | ) | $ | (3,014 | ) | $ | (12,422 | ) | $ | (2,705 | ) | |||
Add: | |||||||||||||||
Pre-opening costs | 1,301 | 1,403 | 4,050 | 2,549 | |||||||||||
Donations | 163 | 16 | 195 | 58 | |||||||||||
Lease termination and closing costs | (1,754 | ) | 589 | 1,154 | 591 | ||||||||||
Depreciation and amortization | 8,144 | 4,237 | 15,795 | 8,372 | |||||||||||
Acquisition costs | — | 4,338 | — | 4,946 | |||||||||||
Consulting project costs | 3,450 | 440 | 7,954 | 506 | |||||||||||
Non-recurring corporate expenses | 1 | 2 | 387 | 10 | |||||||||||
Non-recurring legal expenses | 1,954 | 179 | 2,332 | 338 | |||||||||||
Reorganization severance | 480 | — | 777 | 113 | |||||||||||
Adjusted EBITDA | $ | 13,131 | $ | 8,190 | $ | 20,222 | $ | 14,778 | |||||||
Adjusted EBITDA margin | 10.0 | % | 10.8 | % | 8.0 | % | 9.9 | % |
13 Weeks Ended | 26 Weeks Ended | ||||||||||||||
(Amounts in thousands) | June 25, 2019 | June 26, 2018 | June 25, 2019 | June 26, 2018 | |||||||||||
Operating income loss | $ | (608 | ) | $ | (3,014 | ) | $ | (12,422 | ) | $ | (2,705 | ) | |||
Add: | |||||||||||||||
Pre-opening costs | 1,301 | 1,403 | 4,050 | 2,549 | |||||||||||
General and administrative costs | 17,117 | 7,988 | 33,489 | 15,778 | |||||||||||
Donations | 163 | 16 | 195 | 58 | |||||||||||
Consulting project costs | 3,450 | 621 | 7,954 | 854 | |||||||||||
Acquisition costs | — | 4,338 | — | 4,946 | |||||||||||
Reorganization severance | 480 | — | 777 | 113 | |||||||||||
Lease termination and closing costs | (1,754 | ) | 589 | 1,154 | 591 | ||||||||||
Depreciation and amortization | 8,144 | 4,237 | 15,795 | 8,372 | |||||||||||
Restaurant-level EBITDA | $ | 28,293 | $ | 16,178 | $ | 50,992 | $ | 30,556 |
13 Weeks Ended | 26 Weeks Ended | ||||||||||||||||||||||||||
(Amounts in thousands, except per share data) | June 25, 2019 | June 26, 2018(1) | June 25, 2019 | June 26, 2018(2) | |||||||||||||||||||||||
Revenues | $ | 131,687 | 100.0 | % | $ | 115,415 | 100.0 | % | $ | 252,068 | 100.0 | % | $ | 219,754 | 100.0 | % | |||||||||||
Costs and expenses: | |||||||||||||||||||||||||||
Costs of sales | 35,873 | 27.2 | 31,166 | 27.0 | 69,165 | 27.4 | 60,027 | 27.3 | |||||||||||||||||||
Restaurant operating expenses (excluding depreciation and amortization shown separately below) | 65,261 | 49.6 | 54,439 | 47.2 | 127,399 | 50.5 | 106,113 | 48.3 | |||||||||||||||||||
Marketing and advertising costs | 2,260 | 1.7 | 1,932 | 1.7 | 4,512 | 1.8 | 3,656 | 1.7 | |||||||||||||||||||
Pre-opening costs | 1,301 | 1.0 | 1,892 | 1.6 | 4,050 | 1.6 | 3,303 | 1.5 | |||||||||||||||||||
General and administrative costs | 17,117 | 13.0 | 20,631 | 17.9 | 33,489 | 13.3 | 31,888 | 14.5 | |||||||||||||||||||
Donations | 163 | 0.1 | 16 | — | 195 | 0.1 | 58 | — | |||||||||||||||||||
Consulting project costs | 3,450 | 2.6 | 621 | 0.5 | 7,954 | 3.2 | 854 | 0.4 | |||||||||||||||||||
Acquisition costs | — | — | 5,462 | 4.7 | — | — | 6,070 | 2.8 | |||||||||||||||||||
Reorganization severance | 480 | 0.4 | — | —% | 777 | 0.3 | 113 | 0.1 | |||||||||||||||||||
Lease termination and closing costs | (1,754 | ) | (1.3 | ) | 589 | 0.5 | 1,154 | 0.5 | 591 | 0.3 | |||||||||||||||||
Depreciation and amortization | 8,144 | 6.2 | 6,206 | 5.4 | 15,795 | 6.3 | 12,030 | 5.5 | |||||||||||||||||||
Total costs and expenses | 132,295 | 100.5 | 122,954 | 106.5 | 264,490 | 104.9 | 224,703 | 102.3 | |||||||||||||||||||
Operating loss | (608 | ) | (0.5 | ) | (7,539 | ) | (6.5 | ) | (12,422 | ) | (4.9 | ) | (4,949 | ) | (2.3 | ) | |||||||||||
Other income (expense), net: | |||||||||||||||||||||||||||
Interest, net of capitalized interest | (8,409 | ) | (6.4 | ) | (513 | ) | (0.4 | ) | (16,129 | ) | (6.4 | ) | (3,061 | ) | (1.4 | ) | |||||||||||
Other | (32 | ) | — | (50 | ) | — | (19 | ) | — | (49 | ) | — | |||||||||||||||
Loss before income taxes | (9,049 | ) | (6.9 | ) | (8,102 | ) | (7.0 | ) | (28,570 | ) | (11.3 | ) | (8,059 | ) | (3.7 | ) | |||||||||||
Income tax benefit | (2,651 | ) | (2.0 | ) | (1,964 | ) | (1.7 | ) | (3,845 | ) | (1.5 | ) | (1,892 | ) | (0.9 | ) | |||||||||||
Loss from continuing operations | (6,398 | ) | (4.9 | ) | (6,133 | ) | (5.3 | ) | (24,725 | ) | (9.8 | ) | (6,167 | ) | (2.8 | ) | |||||||||||
(Loss) income from discontinued operations, net of tax | — | — | (170 | ) | (0.1 | ) | — | — | 225 | 0.1 | |||||||||||||||||
Net loss | $ | (6,398 | ) | (4.9 | )% | $ | (6,303 | ) | (5.5 | )% | $ | (24,725 | ) | (9.8 | )% | $ | (5,942 | ) | (2.7 | )% | |||||||
Net loss per average common share outstanding — basic | |||||||||||||||||||||||||||
Loss from continuing operations | $ | (0.19 | ) | $ | (0.30 | ) | $ | (0.74 | ) | $ | (0.30 | ) | |||||||||||||||
(Loss) income from discontinued operations | — | (0.01 | ) | — | 0.01 | ||||||||||||||||||||||
Net loss | $ | (0.19 | ) | $ | (0.31 | ) | $ | (0.74 | ) | $ | (0.29 | ) | |||||||||||||||
Basic | 33,417 | 20,377 | 33,387 | 20,347 |
(1) | Recast amounts for the 13 weeks ended June 26, 2018 include historical amounts for Barcelona and bartaco Brands, which were acquired during the third quarter of 2018, prior to acquisition. |
(2) | Recast amounts for the 26 weeks ended June 26, 2018 include historical amounts for Barcelona and bartaco Brands, which were acquired during the third quarter of 2018, prior to acquisition. |
13 Weeks Ended June 25, 2019 | |||||||||||||||||||||||||||
(Amounts in thousands) | Double Eagle | Barcelona | bartaco | Grille | |||||||||||||||||||||||
Revenues | $ | 49,423 | 100.0 | % | $ | 21,096 | 100.0 | % | $ | 28,227 | 100.0 | % | $ | 32,941 | 100.0 | % | |||||||||||
Costs and expenses: | |||||||||||||||||||||||||||
Cost of sales | 14,412 | 29.2 | 5,612 | 26.6 | 6,742 | 23.9 | 9,107 | 27.6 | |||||||||||||||||||
Restaurant operating expenses: | |||||||||||||||||||||||||||
Labor | 12,056 | 24.4 | 6,378 | 30.2 | 9,257 | 32.8 | 10,337 | 31.4 | |||||||||||||||||||
Operating expenses | 5,866 | 11.9 | 2,632 | 12.5 | 3,648 | 12.9 | 4,751 | 14.4 | |||||||||||||||||||
Occupancy | 4,292 | 8.7 | 1,040 | 4.9 | 1,571 | 5.6 | 3,433 | 10.4 | |||||||||||||||||||
Restaurant operating expenses | 22,214 | 44.9 | 10,050 | 47.6 | 14,476 | 51.3 | 18,521 | 56.2 | |||||||||||||||||||
Marketing and advertising costs | 1,292 | 2.6 | 226 | 1.1 | 108 | 0.4 | 634 | 1.9 | |||||||||||||||||||
Restaurant-level EBITDA | $ | 11,505 | 23.3 | % | $ | 5,208 | 24.7 | % | $ | 6,901 | 24.4 | % | $ | 4,679 | 14.2 | % | |||||||||||
Restaurant operating weeks | 208 | 221 | 270 | 312 | |||||||||||||||||||||||
Average weekly volume | $ | 238 | $ | 95 | $ | 105 | $ | 106 |
13 Weeks Ended June 26, 2018(1) | |||||||||||||||||||||||||||
(Amounts in thousands) | Double Eagle | Barcelona | bartaco | Grille | |||||||||||||||||||||||
Revenues | $ | 43,471 | 100.0 | % | $ | 18,145 | 100.0 | % | $ | 21,552 | 100.0 | % | $ | 32,247 | 100.0 | % | |||||||||||
Costs and expenses: | |||||||||||||||||||||||||||
Cost of sales | 12,780 | 29.4 | 4,750 | 26.2 | 4,879 | 22.6 | 8,757 | 27.2 | |||||||||||||||||||
Restaurant operating expenses: | |||||||||||||||||||||||||||
Labor | 9,986 | 23.0 | 5,276 | 29.1 | 6,752 | 31.3 | 10,199 | 31.6 | |||||||||||||||||||
Operating expenses | 5,011 | 11.5 | 2,215 | 12.2 | 2,262 | 10.5 | 4,395 | 13.6 | |||||||||||||||||||
Occupancy | 3,545 | 8.2 | 840 | 4.6 | 756 | 3.5 | 3,201 | 9.9 | |||||||||||||||||||
Restaurant operating expenses | 18,542 | 42.7 | 8,332 | 45.9 | 9,770 | 45.3 | 17,795 | 55.2 | |||||||||||||||||||
Marketing and advertising costs | 1,019 | 2.3 | 94 | 0.5 | 173 | 0.8 | 647 | 2.0 | |||||||||||||||||||
Restaurant-level EBITDA | $ | 11,130 | 25.6 | % | $ | 4,969 | 27.4 | % | $ | 6,730 | 31.2 | % | $ | 5,048 | 15.7 | % | |||||||||||
Insurance settlement (Barteca) pre acquisition(2) | (601 | ) | |||||||||||||||||||||||||
Adjusted Restaurant-level EBITDA | $ | 11,130 | 25.6 | % | $ | 4,969 | 27.4 | % | $ | 6,129 | 28.4 | % | $ | 5,048 | 15.7 | % | |||||||||||
Restaurant operating weeks | 169 | 195 | 213 | 314 | |||||||||||||||||||||||
Average weekly volume | $ | 257 | $ | 93 | $ | 101 | $ | 103.0 |
(1) | Recast amounts for the 13 weeks ended June 26, 2018 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. |
26 Weeks Ended June 25, 2019 | |||||||||||||||||||||||||||
(Amounts in thousands) | Double Eagle | Barcelona | bartaco | Grille | |||||||||||||||||||||||
Revenues | $ | 99,398 | 100.0 | % | $ | 38,287 | 100.0 | % | $ | 49,109 | 100.0 | % | $ | 65,274 | 100.0 | % | |||||||||||
Costs and expenses: | |||||||||||||||||||||||||||
Cost of sales | 29,306 | 29.5 | 10,249 | 26.8 | 11,640 | 23.7 | 17,970 | 27.5 | |||||||||||||||||||
Restaurant operating expenses: | |||||||||||||||||||||||||||
Labor | 25,452 | 25.6 | 11,964 | 31.2 | 16,444 | 33.5 | 20,699 | 31.7 | |||||||||||||||||||
Operating expenses | 11,752 | 11.8 | 4,937 | 12.9 | 6,659 | 13.6 | 9,350 | 14.3 | |||||||||||||||||||
Occupancy | 8,326 | 8.4 | 2,033 | 5.3 | 2,887 | 5.9 | 6,896 | 10.6 | |||||||||||||||||||
Restaurant operating expenses | 45,530 | 45.8 | 18,934 | 49.5 | 25,990 | 52.9 | 36,945 | 56.6 | |||||||||||||||||||
Marketing and advertising costs | 2,632 | 2.6 | 429 | 1.1 | 163 | 0.3 | 1,288 | 2.0 | |||||||||||||||||||
Restaurant-level EBITDA | $ | 21,930 | 22.1 | % | $ | 8,675 | 22.7 | % | $ | 11,316 | 23.0 | % | $ | 9,071 | 13.9 | % | |||||||||||
Restaurant operating weeks | 411 | 425 | 514 | 624 | |||||||||||||||||||||||
Average weekly volume | $ | 242 | $ | 90 | $ | 96 | $ | 105 |
26 Weeks Ended June 26, 2018(1) | |||||||||||||||||||||||||||
(Amounts in thousands) | Double Eagle | Barcelona | bartaco | Grille | |||||||||||||||||||||||
Revenues | $ | 87,425 | 100.0 | % | $ | 33,148 | 100.0 | % | $ | 37,542 | 100.0 | % | $ | 61,639 | 100.0 | % | |||||||||||
Costs and expenses: | |||||||||||||||||||||||||||
Cost of sales | 25,948 | 29.7 | 8,811 | 26.6 | 8,462 | 22.5 | 16,806 | 27.3 | |||||||||||||||||||
Restaurant operating expenses: | |||||||||||||||||||||||||||
Labor | 20,353 | 23.3 | 10,017 | 30.2 | 11,994 | 31.9 | 20,012 | 32.5 | |||||||||||||||||||
Operating expenses | 9,881 | 11.3 | 4,174 | 12.6 | 4,242 | 11.3 | 8,566 | 13.9 | |||||||||||||||||||
Occupancy | 7,153 | 8.2 | 1,638 | 4.9 | 1,489 | 4.0 | 6,593 | 10.7 | |||||||||||||||||||
Restaurant operating expenses | 37,387 | 42.8 | 15,830 | 47.8 | 17,725 | 47.2 | 35,171 | 57.1 | |||||||||||||||||||
Marketing and advertising costs | 1,914 | 2.2 | 185 | 0.6 | 275 | 0.7 | 1,282 | 2.1 | |||||||||||||||||||
Restaurant-level EBITDA | $ | 22,176 | 25.4 | % | $ | 8,322 | 25.1 | % | $ | 11,080 | 29.5 | % | $ | 8,380 | 13.6 | % | |||||||||||
Insurance settlement (Barteca) pre acquisition(2) | (188 | ) | (1,002 | ) | |||||||||||||||||||||||
Adjusted Restaurant-level EBITDA | $ | 22,176 | 25.4 | % | $ | 8,134 | 24.5 | % | $ | 10,078 | 26.8 | % | $ | 8,380 | 13.6 | % | |||||||||||
Restaurant operating weeks | 338 | 379 | 412 | 638 | |||||||||||||||||||||||
Average weekly volume | $ | 259 | $ | 87 | $ | 91 | $ | 97.0 |
(1) | Recast amounts for the 26 weeks ended June 26, 2018 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 | 26 Weeks Ended | ||||||||||||||
(Amounts in thousands, except per share data) | June 25, 2019 | June 26, 2018(1) | June 25, 2019 | June 26, 2018(2) | |||||||||||
Adjusted Net Income: | |||||||||||||||
Net loss | $ | (6,398 | ) | $ | (6,303 | ) | $ | (24,725 | ) | $ | (5,942 | ) | |||
Income tax (benefit) expense | (2,651 | ) | (1,964 | ) | (3,845 | ) | (1,892 | ) | |||||||
Lease termination and closing costs | (1,754 | ) | 589 | 1,154 | 591 | ||||||||||
Consulting project costs | 3,450 | 440 | 7,954 | 506 | |||||||||||
Acquisition costs | — | 5,462 | — | 6,070 | |||||||||||
Reorganization severance | 480 | — | 777 | 113 | |||||||||||
Non-recurring legal expenses | 1,954 | 179 | 2,332 | 338 | |||||||||||
Donations | 163 | 16 | 195 | 58 | |||||||||||
Non-recurring corporate expenses | 1 | 2 | 387 | 10 | |||||||||||
Discontinued operations | — | 170 | — | (225 | ) | ||||||||||
Adjusted pre-tax (loss) income | (4,755 | ) | (1,409 | ) | (15,771 | ) | (373 | ) | |||||||
Income tax (benefit) expense | (3,233 | ) | 733 | (10,724 | ) | 194 | |||||||||
Adjusted net (loss) income | $ | (1,522 | ) | $ | (2,142 | ) | $ | (5,047 | ) | $ | (567 | ) | |||
Adjusted net (loss) income per basic share | $ | (0.05 | ) | $ | (0.11 | ) | $ | (0.15 | ) | $ | (0.03 | ) |
(1) | Recast amounts for the 13 weeks ended June 26, 2018 include historical amounts for Barcelona and bartaco Brands, which were acquired during the third quarter of 2018, prior to acquisition. |
(2) | Recast amounts for the 26 weeks ended June 26, 2018 include historical amounts for Barcelona and bartaco Brands, which were acquired during the third quarter of 2018, prior to acquisition |
13 Weeks Ended | 26 Weeks Ended | ||||||||||||||
(Amounts in thousands) | June 25, 2019 | June 26, 2018(1) | June 25, 2019 | June 26, 2018(2) | |||||||||||
Operating loss | $ | (608 | ) | $ | (7,539 | ) | $ | (12,422 | ) | $ | (4,949 | ) | |||
Add: | |||||||||||||||
Pre-opening costs | 1,301 | 1,892 | 4,050 | 3,303 | |||||||||||
Donations | 163 | 16 | 195 | 58 | |||||||||||
Lease termination and closing costs | (1,754 | ) | 589 | 1,154 | 591 | ||||||||||
Depreciation and amortization | 8,144 | 6,206 | 15,795 | 12,030 | |||||||||||
Acquisition costs | — | 5,462 | — | 6,070 | |||||||||||
Consulting project costs | 3,450 | 440 | 7,954 | 506 | |||||||||||
Non-recurring corporate expenses | — | 2 | 387 | 10 | |||||||||||
Non-recurring legal expenses | 1 | 179 | 2,332 | 338 | |||||||||||
Reorganization severance | 480 | — | 777 | 113 | |||||||||||
Adjusted EBITDA | $ | 13,131 | $ | 7,247 | $ | 20,222 | $ | 18,070 | |||||||
Insurance settlement (Barteca) pre acquisition(3) | $ | (601 | ) | — | (1,190 | ) | |||||||||
Adjusted EBITDA | $ | 13,131 | $ | 6,646 | $ | 20,222 | $ | 16,880 | |||||||
Adjusted EBITDA margin | 10.0 | % | 5.8 | % | 8.0 | % | 7.7 | % |
(1) | Recast amounts for the 13 weeks ended June 26, 2018 include historical amounts for Barcelona and bartaco Brands, which were acquired during the third quarter of 2018, prior to acquisition. |
(2) | Recast amounts for the 26 weeks ended June 26, 2018 include historical amounts for Barcelona and bartaco Brands, which were acquired during the third quarter of 2018, prior to acquisition |
(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. |
13 Weeks Ended | 26 Weeks Ended | ||||||||||||||
(Amounts in thousands) | June 25, 2019 | June 26, 2018(1) | June 25, 2019 | June 26, 2018(2) | |||||||||||
Operating income | $ | (608 | ) | $ | (7,539 | ) | $ | (12,422 | ) | $ | (4,949 | ) | |||
Add: | |||||||||||||||
Pre-opening costs | 1,301 | 1,892 | 4,050 | 3,303 | |||||||||||
General and administrative costs | 17,117 | 20,631 | 33,489 | 31,888 | |||||||||||
Donations | 163 | 16 | 195 | 58 | |||||||||||
Consulting project costs | 3,450 | 621 | 7,954 | 854 | |||||||||||
Acquisition costs | — | 5,462 | — | 6,070 | |||||||||||
Reorganization severance | 480 | — | 777 | 113 | |||||||||||
Lease termination and closing costs | (1,754 | ) | 589 | 1,154 | 591 | ||||||||||
Depreciation and amortization | 8,144 | 6,206 | 15,795 | 12,030 | |||||||||||
Restaurant-level EBITDA | $ | 28,293 | $ | 27,878 | $ | 50,992 | $ | 49,958 | |||||||
Insurance settlement (Barteca) pre acquisition(3) | $ | (601 | ) | $ | (1,190 | ) | |||||||||
Adjusted Restaurant-level EBITDA | $ | 28,293 | $ | 27,277 | $ | 50,992 | $ | 48,768 |
(1) | Recast amounts for the 13 weeks ended June 26, 2018 include historical amounts for Barcelona and bartaco Brands, which were acquired during the third quarter of 2018, prior to acquisition. |
(2) | Recast amounts for the 26 weeks ended June 26, 2018 include historical amounts for Barcelona and bartaco Brands, which were acquired during the third quarter of 2018, prior to acquisition. |
(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. |
?2@#Z\HKSO1OCGX&U33EN+K5?[-FVYDM[J-@RGN 0"&_"O,/C#\9[7Q
M%8IH?A"><6OF![F]&Z,R8Z(G0XSR3WP*!'TG45S&9;2:->KHRC\17GOP1\-Z
MCH/@,7.MO.U]J4GV@I.[,T<>,(O/0XY_&O1Z /D?X'RKIGQFL(+H[699[?)X
M^?8?ZC%?7%?*WQA\):AX%^(8\2:0&BL[RY%W;SH.(9\[F0^G/(]0<=J]7\(_
M'KPKK.EQ?V]=KH^HJH$L