COLUMBUS, Ohio, May 02, 2016 (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 week period ended March 27, 2016. The Company also reiterated its earnings outlook for the full year 2016.
Selected First Quarter 2016 Highlights Compared to the First Quarter 2015:
- Revenues increased 0.6% to $108.8 million from $108.2 million.
- Total comparable restaurant sales decreased 2.8%.
- Comparable restaurant sales decreased 4.1% at BRAVO! and 2.1% at BRIO.
- Restaurant-level operating profit remained flat at $15.8 million.
- Net income was $2.2 million, or $0.15 per diluted share, compared to net income of $2.5 million, or $0.16 per diluted share.
Brian O'Malley, President and Chief Executive Officer, said, “We are fully focused on enhancing the guest experience through menu innovation, service and restaurant design. Returning to our heritage of culinary innovation and implementing other operational programs have already increased guest satisfaction scores. Our focus on these programs should ultimately improve guest traffic and comparable restaurant sales. We have successfully emphasized social media and digital marketing of limited time offers in the first quarter and look forward to enhancing our carryout business with the rollout of our new online ordering platform late in the second quarter.”
O’Malley continued, "We opened two BRAVO!s in the first quarter in Grand Rapids, Michigan and Beavercreek, Ohio and are on track to open a third restaurant, a BRIO, in Torrance, California in the fourth quarter. Additionally, we repurchased $1.3 million of our common shares under our $15 million share repurchase program as we continue to return capital to our shareholders.”
First Quarter 2016 Financial Results
Revenues increased $0.6 million, or 0.6%, to $108.8 million in the first quarter of 2016, from $108.2 million in the first quarter of 2015. The increase in revenues was primarily due to a net additional 70 operating weeks that was partially offset by a 2.8% decrease in comparable restaurant sales. The comparable restaurant sales decrease consisted of a 3.0% decrease in guest counts partially offset by a 0.2% increase in average check.
Total restaurant operating costs, which includes costs of sales, labor costs, operating costs and occupancy costs, increased $0.6 million, or 0.7%, to $93.0 million in the first quarter of 2016, from $92.4 million in the first quarter of 2015. Total restaurant-level operating profit remained flat at $15.8 million as compared to the same period last year. As a percentage of revenues, total restaurant-level operating profit in the first quarter of 2016 held steady year-over-year at 14.6%.
Net income in the first quarter of 2016 was $2.2 million, or $0.15 per diluted share, compared to net income of $2.5 million, or $0.16 per diluted share, in the same period last year.
First Quarter 2016 Brand Operating Highlights
Comparable restaurant sales decreased 4.1% at BRAVO! and 2.1% at BRIO. Average weekly sales for BRAVO! and BRIO were $58,600 and $82,300, respectively.
During the first quarter of 2016, the Company opened BRAVO restaurants in Grand Rapids, Michigan and Beavercreek, Ohio. As of March 27, 2016, the Company operated 53 BRAVO! restaurants, 64 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. Additionally, one BRIO restaurant is operated under a franchise agreement.
2016 Outlook
The Company is providing the following outlook for the 52-week period ending December 25, 2016:
- Revenues of $424 million to $432 million.
- Total comparable restaurant sales of minus 2.0% to flat.
- Development of three Company-operated restaurants.
- Pre-opening costs of approximately $1.5 million (previously $1.5 million to $2.0 million).
- Diluted earnings per share of $0.65 to $0.73.
- Capital expenditures of $12.0 million to $14.0 million.
- Diluted share count of approximately 15.5 million.
- Estimated annual tax rate of approximately 19% to 22% (previously 20% to 23%).
Investor Conference Call and Webcast
The Company will host an investor conference call to discuss first quarter 2016 financial results today at 5:30 PM ET. Hosting the call will be Brian O'Malley, President and Chief Executive Officer and Jim O'Connor, Chief Financial Officer.
The conference call can be accessed live over the phone by dialing (888) 397-5352, or for international callers (719) 457-2645. 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 2410473. The replay will be available until Monday, May 9, 2016.
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.
Forward-Looking Statements
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 February 29, 2016.
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 WEEKS ENDED MARCH 27, 2016 AND MARCH 29, 2015 (UNAUDITED) | |||||||||||
| (in thousands except per share data) | |||||||||||
| Thirteen Weeks Ended | |||||||||||
| March 27, 2016 | March 29, 2015 | ||||||||||
| Revenues | $ | 108,800 | $ | 108,169 | |||||||
| Costs and expenses | |||||||||||
| Cost of sales | 28,007 | 25.7 | % | 27,906 | 25.8 | % | |||||
| Labor | 39,265 | 36.1 | % | 38,850 | 35.9 | % | |||||
| Operating | 17,582 | 16.2 | % | 17,522 | 16.2 | % | |||||
| Occupancy | 8,109 | 7.5 | % | 8,082 | 7.5 | % | |||||
| General and administrative expenses | 6,671 | 6.1 | % | 5,782 | 5.3 | % | |||||
| Restaurant preopening costs | 441 | 0.4 | % | 937 | 0.9 | % | |||||
| Depreciation and amortization | 5,533 | 5.1 | % | 5,438 | 5.0 | % | |||||
| Total costs and expenses | 105,608 | 97.1 | % | 104,517 | 96.6 | % | |||||
| Income from operations | 3,192 | 2.9 | % | 3,652 | 3.4 | % | |||||
| Interest expense, net | 348 | 0.3 | % | 405 | 0.4 | % | |||||
| Income before income taxes | 2,844 | 2.6 | % | 3,247 | 3.0 | % | |||||
| Income tax expense | 596 | 0.5 | % | 714 | 0.7 | % | |||||
| Net income | $ | 2,248 | 2.1 | % | $ | 2,533 | 2.3 | % | |||
| Net income per basic share | $ | 0.15 | $ | 0.17 | |||||||
| Net income per diluted share | $ | 0.15 | $ | 0.16 | |||||||
| Weighted average shares outstanding-basic | 14,766 | 15,122 | |||||||||
| Weighted average shares outstanding-diluted | 15,416 | 15,870 | |||||||||
| Certain percentage amounts may not sum due to rounding. | |||||||||||
| BRAVO BRIO RESTAURANT GROUP, INC. AND SUBSIDIARIES | |||||||
| CONSOLIDATED BALANCE SHEETS | |||||||
| AS OF MARCH 27, 2016 AND DECEMBER 27, 2015 | |||||||
| (Dollars in thousands) | |||||||
| March 27, 2016 | December 27, 2015 | ||||||
| (Unaudited) | |||||||
| Assets | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 320 | $ | 447 | |||
| Accounts receivable | 7,537 | 9,617 | |||||
| Tenant improvement allowance receivable | 205 | 286 | |||||
| Inventories | 3,167 | 3,163 | |||||
| Prepaid expenses and other current assets | 1,103 | 1,859 | |||||
| Total current assets | 12,332 | 15,372 | |||||
| Property and equipment — net | 167,408 | 170,463 | |||||
| Deferred income taxes — net | 57,497 | 58,054 | |||||
| Other assets — net | 4,140 | 4,171 | |||||
| Total assets | $ | 241,377 | $ | 248,060 | |||
| Liabilities and stockholders’ equity | |||||||
| Current liabilities | |||||||
| Trade and construction payables | $ | 14,647 | $ | 16,283 | |||
| Accrued expenses | 24,663 | 28,869 | |||||
| Deferred lease incentives | 7,412 | 7,230 | |||||
| Deferred gift card revenue | 11,864 | 14,728 | |||||
| Total current liabilities | 58,586 | 67,110 | |||||
| Deferred lease incentives | 58,001 | 59,553 | |||||
| Long-term debt | 45,900 | 43,300 | |||||
| Other long-term liabilities | 23,030 | 23,273 | |||||
| Commitments and contingencies | |||||||
| Stockholders’ equity | |||||||
| Common shares, no par value per share— authorized 100,000,000 shares; 20,376,207 shares issued at March 27, 2016 and 20,293,296 shares issued at December 27, 2015 | 200,794 | 200,739 | |||||
| Preferred shares, no par value per share— authorized 5,000,000 shares; issued and outstanding, 0 shares at March 27, 2016 and December 27, 2015 | — | — | |||||
| Treasury shares, 5,680,385 shares at March 27, 2016 and 5,534,308 shares at December 27, 2015 | (78,825 | ) | (77,558 | ) | |||
| Retained deficit | (66,109 | ) | (68,357 | ) | |||
| Total stockholders’ equity | 55,860 | 54,824 | |||||
| Total liabilities and stockholders’ equity | $ | 241,377 | $ | 248,060 | |||