BBQ Holdings, Inc. Reports Results for Fourth Quarter and Fiscal Year 2021; Announces Acquisition of Barrio Queen, Corporate Name Change and Provides 2022 Guidance


MINNEAPOLIS, March 14, 2022 (GLOBE NEWSWIRE) -- BBQ Holdings, Inc. (NASDAQ: BBQ) (the “Company”), an innovating global franchisor, owner and operator of restaurants, today reported financial results for the fourth quarter and fiscal year ended January 2, 2022.

Fourth Quarter Highlights:

             
  Fourth Quarter
(dollars in thousands, except per share data)  2021   2020    2019  
Total revenue $68,395  $34,258   $23,613  
Net income (loss) $2,602  $(2,836)  $(1,788) 
Earnings (loss) per diluted share $0.25  $(0.31)  $(0.20) 
Adjusted net income (loss) $2,820  $(1,538)  $(1,210) 
Adjusted earnings (loss) per diluted share $0.27  $(0.17)  $(0.13) 
Cash EBITDA $4,550  $85   $(692) 
Restaurant-level margins  7.6%  2.1 %  (3.0)%
Prime costs  62.3%  63.6 %  67.9 %
Free cash flow $3,140  $(743)  $(3,655) 


      
 Fourth Quarter Same Store Sales
 2021 vs. 2020  2021 vs. 2019 
Famous Dave's Company-owned22.8% 15.5 %
Famous Dave's Franchise-operated*26.5% 18.8 %
Granite City**63.8% (2.4)%
Village Inn Company-owned**54.5% (9.2)%
Village Inn Franchise-operated*51.7% NA %
Bakers Square**50.4% (12.7)%
Clark Crew17.0% NA %
Real Urban BBQ**8.9% 2.7 %
      
* as reported by franchisees     
** includes sales under prior ownership     

Fiscal Year Highlights:

             
  Fiscal Year
(dollars in thousands, except per share data)  2021   2020    2019  
Total revenue $206,442  $121,237   $83,555  
Net income (loss) $24,021  $4,947   $(649) 
Earnings (loss) per diluted share $2.42  $0.54   $(0.07) 
Adjusted net income (loss) $7,033  $(2,616)  $647  
Adjusted earnings (loss) per diluted share $0.71  $(0.29)  $0.07  
Cash EBITDA $17,450  $948   $3,423  
Restaurant-level margins  9.3%  1.3 %  (0.1)%
Prime costs  61.4%  64.9 %  67.2 %
Free cash flow $13,624  $(2,551)  $(3,332) 


      
 Fiscal Year Same Store Sales
 2021 vs. 2020  2021 vs. 2019 
Famous Dave's Company-owned23.7% 13.7 %
Famous Dave's Franchise-operated*25.9% 6.6 %
Granite City**50.0% (8.6)%
Village Inn Company-owned**42.0% (13.0)%
Village Inn Franchise-operated*49.1% NA %
Bakers Square**29.9% (21.5)%
Clark Crew17.3% NA %
Real Urban BBQ**11.5% 0.8 %
      
* as reported by franchisees **includes sales under prior ownership     

Subsequent Events:

On March 10, 2022, we executed an Asset Purchase Agreement for substantially all the assets related to the fast-growing Barrio Queen restaurant group, and we expect to close the transaction within 45 days. Barrio Queen is known for their authentic Mexican fine dining in Phoenix, Arizona. There are currently seven operating restaurants and a lease signed for an eighth with a target opening date of December 2022. The purchase price of $28.0 million will be funded with cash and debt.   Further details of the transaction will be made public upon closing.

On March 11, 2022, we closed the purchase of three bar-centric locations. The purchase price of $4.5 million was funded with cash at a multiple of 3.25 times 2021 store-level EBITDA.

Current and Projected (“PF”) Portfolio:

                     
 FAMOUS
DAVE’S
VILLAGE
INN
GRANITE
CITY
BAKERS
SQUARE
REAL
URBAN BBQ
CLARK CREW
BBQ
TAHOE JOE’SBARRIO QUEENBAR CONCEPTSTOTAL
 20212022 PF20212022 PF20212022 PF20212022 PF20212022 PF20212022 PF20212022 PF20212022 PF20212022 PF20212022 PF
Corporate Locations3941212218181414221154 8 3100113
Brick & Mortar3031212118171111221154 8 38898
Dual Concept11 1 1            13
Ghost Kitchens89    33          1112
Franchise/License Locations104107108111  44     1    216223
Brick & Mortar8587108111              193198
Dual Concept 1           1    02
Ghost Kitchens1919    44          2323
Total Locations14314812913318181818221155 8 3316336
Growth PlanNew line serve / drive thru and Ghost locationsNew trendy breakfast prototypeDual concept with new breakfast brandSell pies in retail, kiosk and other restaurantsNew line serve locations and CPGsCPGsDual Concept with FDsFranchise and CorporateCorporate 
# Opening in 2022 Q1: 3 Q1: 1 n/a n/a n/a n/a Q1: - Q1: - n/aTotal:13
  Q2: 1 Q2: 1         Q2: - Q2: -    
  Q3: 1 Q3: 1         Q3: - Q3: 1    
  Q4: 1 Q4: 2         Q4: 1 Q4: -    

Filling Latent Capacity:

  • Dual concept Granite City/Village Inn opened in Maple Grove, MN in March 2022.
  • Famous Dave’s ghost kitchen to open in Granite City in Fargo, ND in March 2022.

Organic Unit Growth:

  • Famous Dave’s franchisee opened a line-serve restaurant in Coon Rapids, MN in October 2021.
  • Opened a Real Urban Barbeque restaurant in Chicago, IL in October 2021.
  • Famous Dave’s Drive thru in Salt Lake City, UT opened in March 2022.
  • Famous Dave’s franchisee opened an additional restaurant in the United Arab Emirates in February 2022.
  • New Village Inn prototype expected to open in Omaha, NE in the second quarter of 2022.

Mergers and Acquisitions:

  • Purchased Tahoe Joe’s Steakhouse brand in October 2021.
  • Signed an Asset Purchase Agreement to acquire Barrio Queen in March 2022.
  • Closed the purchase of three bar-centric company-owned locations in March 2022.

2022 Guidance:

  • Net restaurant revenue of $265mm to $280mm
  • Net income and adjusted net income range from $12.5mm to $15.5mm
  • We expect to exhaust our deferred tax assets mid-2022
  • Diluted earnings per share and adjusted earnings per diluted share of $1.15 to $1.45
  • Cash EBITDA range from $23mm to $25mm***
  • Free cash flow range from $13.5mm to $15.5mm***

12-Month Run Rate Guidance:

  • Net restaurant revenue of $280mm to $295mm
  • Net income and adjusted net income range from $14.0mm to $17.0mm
  • Diluted earnings per share and adjusted earnings per diluted share of $1.30 to $1.60
  • Cash EBITDA range from $25.5mm to $27.5mm***
  • Free cash flow range from $15.5mm to $17.5mm***

*** assumes completion of Barrio Queen and Bar Concepts acquisitions

Executive Comments

Jeff Crivello, CEO, commented, “The fourth quarter of 2021 marked another successful quarter of strong operational execution and company growth. We continue to successfully execute our three core growth initiatives which include filling latent capacity of our current restaurants, organic unit growth, and build a diversified portfolio of food and beverage brands via accretive M&A.

In December 2021 and January 2022, we experienced a traffic decline associated with the Omicron variant of COVID-19. However, as case counts have declined, we have seen rebounds in both dine-in traffic and catering sales in February and March of 2022.

As we have continued to diversify our portfolio of restaurant brands, we will be changing the name of our parent company from BBQ Holdings, Inc. to Famous Hospitality, Inc.”

Key Operating Metrics

               
  Three Months Ended   Year Ended
  January 2, 2022 January 3, 2021   January 2, 2022 January 3, 2021
Restaurant count:              
Franchise-operated  216  98    216  98  
Company-owned  100  47    100  47  
Total  316  145    316  145  
Same store net restaurant sales %:              
Franchise-operated  26.5% (13.6)%  25.9% (17.0)%
Company-owned  37.8% (5.5)%  36.7% (8.5)%
Total  30.8% (11.6)%  29.8% (15.3)%
               
(in thousands, expect per share data)              
               
System-wide restaurant sales(1) $171,086 $78,894   $507,882 $301,743  
               
Net income attributable to shareholders $2,602 $(2,836)  $24,021 $4,947  
               
Net income attributable to shareholders, per diluted share $0.25 $(0.31)  $2.42 $0.54  
               
Cash EBITDA(2) $4,550 $85   $17,450 $948  

(1)  System-wide restaurant sales include sales for all Company-owned and franchise-operated restaurants, as reported by franchisees. Restaurant sales for franchise-operated restaurants are not revenues of the Company and are not included in the Company’s consolidated financial statements.
(2)  Cash EBITDA is a non-GAAP measure. A reconciliation of all non-GAAP measures to the most directly comparable GAAP measure is included in the accompanying financial tables. See “Non-GAAP Reconciliation.”

Fourth Quarter and Fiscal Year 2021 Review

Total revenue for the fourth quarter of 2021 was $68.4 million, up 99.6% from the fourth quarter of 2020. Total revenue for fiscal year 2021 was $206.4 million, up 70.3% from fiscal year 2020. The increase in year-over-year revenue was driven primarily by the acquisitions of the Village Inn and Bakers Square brands, four additional Famous Dave’s restaurants, and the Tahoe Joe’s Steakhouse brand, as well as the reduction of dining restrictions in 2021 compared to 2020.  

Net income attributable to shareholders was approximately $2.6 million, or $0.25 per diluted share, in the fourth quarter of fiscal 2021 compared to a loss of approximately $2.8 million, or $0.31 per diluted share, in the fourth quarter of fiscal 2020. Fiscal year 2021 net income was $24.0 million compared to $4.9 million in fiscal year 2020. This increase in net income was mainly attributable to a gain on forgiveness of debt and a gain on bargain purchase.   Additionally, the increase in net income was also driven by (i) an increase in same store sales, (ii) sales from the acquisitions of the Village Inn and Bakers Square brands, four additional Famous Dave’s restaurants, and the Tahoe Joe’s Steakhouse brand, (iii) improvements in restaurant-level margins and (iv) improvements in general and administrative expense efficiency.   Cash EBITDA, a non-GAAP measure, increased $4.5 million from $0.1 million in the fourth quarter of 2020 to $4.6 million in the fourth quarter of 2021. Cash EBITDA for fiscal year 2021 was $17.5 million, an increase of $16.5 million over fiscal year 2020. A reconciliation between cash EBITDA and its most directly comparable GAAP measure is included in the accompanying financial tables.

Restaurant-level operating margin as a percentage of restaurant net sales, a non-GAAP measure, was 7.6% and 9.3% for Company-owned restaurants in the fourth quarter and fiscal year 2021, respectively, compared to 2.1% and 1.3% in the fourth quarter and fiscal year 2020, respectively. This increase in restaurant-level operating margin as a percentage of net restaurant sales was due primarily to leverage on our fixed operating costs from the increased revenue resulting from the reduction of dine-in restrictions and restrictions on large gatherings which were put in place in 2020 due to COVID-19 concerns, as well as the acquisition of the Village Inn and Bakers Square brands, four additional Famous Dave’s restaurants, and the Tahoe Joe’s Steakhouse brand. A reconciliation of restaurant sales to restaurant-level margin is included in the accompanying financial tables. General and administrative expenses for the quarter ended January 2, 2022, and January 3, 2021 represented approximately 8.3% and 12.8% of total revenues, respectively. General and administrative expenses for fiscal year 2021 and fiscal year 2020 represented approximately 9.3% and 11.9% of total revenues, respectively. While general and administrative expenses increased in fiscal year 2021 compared to fiscal year 2020, such expenses decrease as a percentage of revenue in 2021 due primarily to the increase in total revenue.

About BBQ Holdings

BBQ Holdings, Inc. (NASDAQ: BBQ) is a national restaurant company engaged in franchising, ownership and operation of casual and fast dining restaurants. As of March 14, 2022, BBQ Holdings had multiple brands with over 100 Company-owned locations and over 200 franchised locations, including ghost kitchens operating out of the kitchen of another restaurant location or shared kitchen space.   While BBQ Holdings continues to diversify its ownership in the restaurant community, it was founded with the principle of combining the “art and science” of barbecue to serve up the very best of the best to barbecue lovers everywhere. Along with a wide variety of BBQ favorites served at their BBQ restaurants, BBQ Holdings also operates Granite City Food and Brewery restaurants which offer award winning craft beer and a made-from-scratch, chef driven menu featuring contemporary American cuisine. Village Inn and Bakers Square add a legendary Family Dining element to BBQ Holdings, with these concepts specializing in breakfast and pies. Tahoe Joe’s is known for their pellet-broiler cooked and smoked infused steak.

Non-GAAP Financial Measures

To supplement its condensed consolidated financial statements, which are prepared and presented in accordance with accounting principles generally accepted in the United States (“GAAP”), the Company uses non-GAAP measures including those indicated below. These non-GAAP measures exclude significant expenses and income that are required by GAAP to be recorded in the Company’s consolidated financial statements and are subject to inherent limitations. By providing non-GAAP measures, together with a reconciliation to the most comparable GAAP measure, the Company believes that it is enhancing investors’ understanding of the Company’s business and results of operations. These measures are not intended to be considered in isolation of, as substitutes for, or superior to, financial measures prepared and presented in accordance with GAAP. The non-GAAP measures presented may be different from the measures used by other companies. The Company urges investors to review the reconciliation of its non-GAAP measures to the most directly comparable GAAP measure, included in the accompanying financial tables.

Cash EBITDA is net income plus asset impairment, estimated lease termination charges and other closing costs, depreciation and amortization, net interest expense, net (gain) loss on disposal of equipment, stock-based compensation, acquisition costs, pre-opening costs, severance, gain on debt forgiveness, gain on bargain purchase, provision (benefit) for income taxes, and non-cash rent.

Free cash flow is the Cash EBITDA less cash paid for property, equipment and leasehold improvements. Adjusted net income (loss) is net income plus asset impairment, estimated lease termination charges and other closing costs, less gain on debt forgiveness and gain on bargain purchase. Adjusted earnings per diluted share equals adjusted net income (loss) divided by the weighted average shares outstanding, assuming dilution.

Restaurant-level operating margins are equal to net restaurant sales, less restaurant-level food and beverage cost, labor and benefit costs, and operating expenses for Company-owned restaurants.

Forward-Looking Statements

Statements in this press release that are not strictly historical, including but not limited to statements regarding the timing of the Company’s restaurant openings, the timing of refreshes and the timing or success of refranchising plans, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, which may cause the Company’s actual results to differ materially from expected results. Although the Company believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectation will be attained. Factors that could cause actual results to differ materially from the Company’s expectation include the impact of the COVID-19 virus pandemic, financial performance, restaurant industry conditions, execution of restaurant development and construction programs, franchisee performance, changes in local or national economic conditions, availability of financing, governmental approvals and other risks detailed from time to time in the Company’s SEC reports.

Contact:Jeff Crivello – Chief Executive Officer
  
 jeff.crivello@bbq-holdings.com

        

BBQ HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(Unaudited)

             
 Three Months Ended Year Ended 
 January 2, 2022 January 3, 2021 January 2, 2022 January 3, 2021 
Revenue:            
Restaurant sales, net$62,690  $31,293  $187,872  $109,544  
Franchise royalty and fee revenue 3,538   2,291   12,187   8,919  
Franchisee national advertising fund contributions 501   298   1,711   1,124  
Licensing and other revenue 1,666   376   4,672   1,650  
Total revenue 68,395   34,258   206,442   121,237  
             
Costs and expenses:            
Food and beverage costs 19,249   9,661   55,969   33,867  
Labor and benefits costs 19,809   10,252   59,297   37,228  
Operating expenses 18,868   10,733   55,223   36,984  
Depreciation and amortization expenses 2,470   1,301   7,395   5,121  
General and administrative expenses 5,660   4,371   19,176   14,195  
National advertising fund expenses 501   298   1,711   1,124  
Asset impairment, estimated lease termination charges and other closing costs, net 10   869   116   5,683  
Pre-opening expenses 21   103   204   10  
Gain on disposal of property, net (1,113)  (703)  (979)  (1,810) 
Total costs and expenses 65,475   36,885   198,112   132,402  
             
Income (loss) from operations 2,920   (2,627)  8,330   (11,165) 
             
Other income (expense):            
Interest expense (144)  (214)  (583)  (805) 
Interest income 31   49   178   154  
Gain on forgiveness of debt       14,109     
Gain on bargain purchase (208)  (429)  2,995   13,246  
Total other income (expense) (321)  (594)  16,699   12,595  
             
Income (loss) before income taxes 2,599   (3,221)  25,029   1,430  
             
Income tax (expense) benefit (144)  318   (661)  2,837  
             
Net income (loss) 2,455   (2,903)  24,368   4,267  
Net (income) loss attributable to non-controlling interest 147   67   (347)  680  
Net income (loss) attributable to shareholders$2,602  $(2,836) $24,021  $4,947  
             
             
Income (loss) per common share:            
Basic net income (loss) per share attributable to shareholders$0.25  $(0.31) $2.44  $0.54  
Diluted net income (loss) per share attributable to shareholders$0.25  $(0.31) $2.42  $0.54  
Weighted average shares outstanding - basic 10,445   9,175   9,826   9,155  
Weighted average shares outstanding - diluted 10,550   9,175   9,922   9,156  


BBQ HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
(unaudited)

       
ASSETS      
Current assets: January 2, 2022 January 3, 2021
Cash and cash equivalents $40,309  $18,101 
Restricted cash  1,152   1,502 
Accounts receivable, net of allowance for doubtful accounts of $270,000 and $277,000, respectively  5,476   4,823 
Inventories  3,316   2,271 
Prepaid expenses and other current assets  3,919   1,252 
Assets held for sale     1,070 
Total current assets  54,172   29,019 
       
Property, equipment and leasehold improvements, net  39,943   32,389 
       
Other assets:      
Operating lease right-of-use assets  78,843   61,634 
Goodwill  3,037   601 
Intangible assets, net  23,444   9,967 
Deferred tax asset, net  3,692   4,934 
Other assets  1,292   1,724 
Total assets $204,423  $140,268 
       
LIABILITIES AND SHAREHOLDERS’ EQUITY      
       
Current liabilities:      
Accounts payable $7,661  $6,385 
Current portion of operating lease liabilities  11,904   6,185 
Current portion of long-term debt and finance lease liabilities  1,621   2,111 
Accrued compensation and benefits  7,121   2,390 
Gift card liability  11,257   6,554 
Other current liabilities  8,510   3,212 
Total current liabilities  48,074   26,837 
       
Long-term liabilities:      
Operating lease liabilities, less current portion  77,729   63,105 
Finance lease liabilities, less current portion  79    
Long-term debt, less current portion  13,197   22,169 
Other liabilities  997   1,224 
Total liabilities  140,076   113,335 
       
Shareholders’ equity:      
Common stock, $.01 par value, 100,000 shares authorized, 10,495 and 9,307 shares issued and outstanding at January 2, 2022 and January 3, 2021, respectively  105   93 
Additional paid-in capital  21,782   8,748 
Retained earnings  43,391   19,370 
Total shareholders’ equity  65,278   28,211 
Non-controlling interest  (931)  (1,278)
Total equity  64,347   26,933 
Total liabilities and equity $204,423  $140,268 


BBQ HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)

       
  Year Ended
     January 2, 2022    January 3, 2021
Cash flows from operating activities:        
Net income $24,368  $4,267 
Adjustments to reconcile net income to cash flows provided by operations:        
Depreciation and amortization  7,395   5,121 
Stock-based compensation  1,268   886 
Net gain on disposal  (979)  (1,783)
Asset impairment, estimated lease termination charges and other closing costs, net     5,483 
Gain on forgiveness of debt  (14,109)   
Gain on bargain purchase  (2,995)  (13,246)
Amortization of operating right-of-use assets  8,514   5,249 
Deferred tax asset  337   (2,837)
Other non-cash items  905   796 
Changes in operating assets and liabilities:      
Accounts receivable, net  (1,570)  (1,011)
Prepaid expenses and other assets  (2,983)  1,460 
Accounts payable  1,276   2,418 
Accrued compensation  4,730   (244)
Lease liabilities  (8,278)  (5,152)
Gift card liability  3,341   (2,133)
Accrued and other liabilities  3,638   2,814 
Cash flows provided by operating activities  24,858   2,088 
       
Cash flows from investing activities:        
Proceeds from the sale of assets  2,587   2,869 
Purchases of property, equipment and leasehold improvements  (3,826)  (3,499)
Payments for acquired restaurants  (18,808)  (5,381)
Payments received on note receivable  785   42 
Cash flows used for investing activities  (19,262)  (5,969)
       
Cash flows from financing activities:        
Proceeds from long-term debt  15,000   22,058 
Payments for debt issuance costs  (114)  (45)
Payments on long-term debt  (10,403)  (4,621)
Tax payments for restricted stock units and stock options exercised  (1,094)   
Proceeds from sale of common stock, net of offering costs  12,428    
Proceeds from exercise of stock options  445   6 
Cash provided by financing activities  16,262   17,398 
       
Increase in cash, cash equivalents and restricted cash  21,858   13,517 
Cash, cash equivalents and restricted cash, beginning of period  19,603   6,086 
Cash, cash equivalents and restricted cash, end of period $41,461  $19,603 
       
Supplemental Disclosures      
Cash paid for interest, net $494  $706 
       
Non-cash investing and financing activities:      
Operating right-of-use assets acquired  23,544   51,682 
Lease liabilities assumed pursuant to acquisitions  26,166   51,682 
Gift card liability assumed pursuant to acquisitions  1,362   3,923 
Inventory acquired pursuant to acquisitions  623   1,178 


BBQ HOLDINGS, INC. AND SUBSIDIARIES
OPERATING RESULTS
(unaudited)

            
  Three Months Ended  Year Ended  
  January 2, 2022 January 3, 2021  January 2, 2022 January 3, 2021  
Food and beverage costs(1) 30.7%30.9 % 29.8%30.9 % 
Labor and benefits costs(1) 31.6%32.8 % 31.6%34.0 % 
Operating expenses(1) 30.1%34.3 % 29.4%33.8 % 
Restaurant-level operating margin(1)(2) 7.6%2.1 % 9.3%1.3 % 
Depreciation and amortization expenses(3) 3.6%3.8 % 3.6%4.2 % 
General and administrative expenses(3) 8.3%12.8 % 9.3%11.7 % 
Income (loss) from operations(3) 4.3%(7.7)% 4.0%(9.2)% 

(1)  As a percentage of restaurant sales, net
(2) Restaurant-level operating margins are equal to restaurant sales, net, less restaurant-level food and beverage costs, labor and benefit costs, and operating expense.
(3)  As a percentage of total revenue

BBQ HOLDINGS, INC. AND SUBSIDIARIES
RESTAURANT-LEVEL PROFIT AND RESTAURANT-LEVEL MARGIN (1)
NON-GAAP RECONCILIATION
(in thousands)

                
                
 Three Months Ended  Year Ended 
 January 2, 2022  January 3, 2021  January 2, 2022  January 3, 2021 
Restaurant sales, net$62,690  $31,293  $187,872  $109,544 
Restaurant operating costs (2) 57,926   30,646   170,489   108,079 
Restaurant-level profit$4,764  $647  $17,383  $1,465 
Restaurant-level margin 7.6%  2.1%  9.3%  1.3%

(1)  For Company-owned restaurants.
(2)  Restaurant operating costs consist of food and beverage costs, labor and benefits costs and operating expenses.


BBQ HOLDINGS, INC. AND SUBSIDIARIES
CASH EBITDA AND FREE CASH FLOW
NON-GAAP RECONCILIATION
(in thousands, except per share data)
(unaudited)

             
  Three Months Ended Year Ended
  January 2, 2022 January 3, 2021 January 2, 2022 January 3, 2021
(dollars in thousands)            
Net income $2,455  $(2,903) $24,368  $4,267 
Asset impairment and estimated lease termination charges and other closing costs  10   869   116   5,683 
Depreciation and amortization  2,470   1,301   7,395   5,121 
Interest expense, net  113   165   405   651 
Net gain on disposal of equipment  (1,113)  (703)  (979)  (1,810)
Stock-based compensation  336   517   1,268   939 
Acquisition costs  375   (58)  925   (105)
Pre-opening costs  21   103   204   10 
Severance  -   35   -   86 
Gain on debt forgiveness  -   -   (14,109)  - 
Gain on bargain purchase  208   429   (2,995)  (13,246)
Provision for income taxes  144   (318)  661   (2,837)
Non-cash rent  (469)  648   191   2,189 
Cash EBITDA $4,550  $85  $17,450  $948 
             
Less cash paid for property, equipment and leasehold improvements  (1,410)  (828)  (3,826)  (3,499)
Free cash flow $3,140  $(743) $13,624  $(2,551)


BBQ HOLDINGS, INC. AND SUBSIDIARIES
ADJUSTED NET INCOME (LOSS) AND EARNINGS (LOSS) PER DILUTED SHARE
NON-GAAP RECONCILIATION
(in thousands, except per share data)
(unaudited)

              
  Three Months Ended  Year Ended
(dollars in thousands) January 2, 2022 January 3, 2021  January 2, 2022 January 3, 2021
Net income (loss) attributable to shareholders $2,602 $(2,836)  $24,021  $4,947 
Asset impairment, estimated lease termination charges and other closing costs  10  869    116   5,683 
Gain on debt forgiveness        (14,109)   
Gain on bargain purchase  208  429    (2,995)  (13,246)
Adjusted net income (loss)  2,820  (1,538)   7,033   (2,616)
Weighted average shares outstanding - diluted  10,550  9,175    9,922   9,155 
Adjusted earnings (loss) per diluted share $0.27 $(0.17)  $0.71  $(0.29)

A presentation accompanying this announcement is available at: https://www.globenewswire.com/NewsRoom/AttachmentNg/1a29f163-d269-424b-87c1-2f433536eaa0



Attachments

BBQH Investor Presentation_March 2022_Earnings+BarrioQueen_Final