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Krispy Kreme and Law Enforcement Officers Team Up Again for Special Olympics
Law Enforcement Torch Run(R) for Special Olympics raises funds from Krispy Kreme rooftops
WINSTON-SALEM, N.C., April 29 /PRNewswire-FirstCall/ -- Krispy Kreme Doughnuts, Inc. (NYSE: KKD) and local law enforcement officers have united again this year for the annual Cops on Doughnut Shops program to benefit Special Olympics. This nationwide fundraising program will begin at 6:00 a.m. on Friday, May 2, and end at 6:00 p.m. on Sunday, May 4. Police officers will sit on the roofs of local Krispy Kreme stores throughout the U.S. to raise funds for the Law Enforcement Torch Run(R) and increase awareness of the Special Olympics movement.
'Cops on Doughnut Shops is a great way to inform the public that law enforcement can get beyond the stereotyping to do the right thing by raising money and awareness for Special Olympics,' said Cpl. Larry Timmer of the Tampa Police Department. 'Most are reluctant to get involved with this type of fundraiser. However, once they get on the roof, it is hard to get them down because of the cause.'
Police officers will collect donations from customers and the general public as they eat, sleep, and play on the rooftops of Krispy Kreme stores. More than 60 Krispy Kreme stores in cities across the country will host Cops on Doughnut Shops events during the kickoff weekend (May 2 - 4) and throughout the rest of the year, encouraging patrons of Krispy Kreme and citizens to help further opportunities for Special Olympics athletes. Last year, Cops on Doughnut Shops events raised more than $257,000 throughout the country.
'Cops on Doughnut Shops is a positive fundraising event for local communities, and Krispy Kreme is proud to play a part,' said Kenneth Dykes, General Manager of the Krispy Kreme in High Point, North Carolina. 'The last three years of this program have been very successful, and we are thrilled to offer the Cops on Doughnut Shops program on a national scale again this year.'
Celebrating its 27th anniversary in 2008, the Law Enforcement Torch Run for Special Olympics is the movement's largest grass-roots fundraiser and public awareness vehicle encompassing a variety of events supporting Special Olympics including Torch Runs, Polar Plunges, and the World's Largest Truck Convoy.
About Special Olympics
Special Olympics is an international organization that changes lives by promoting understanding, acceptance and inclusion between people with and without intellectual disabilities. Through year-round sports training and athletic competition and other related programming for 2.5 million children and adults with intellectual disabilities in more than 170 countries, Special Olympics has created a model community that celebrates people's diverse gifts. Founded in 1968 by Eunice Kennedy Shriver, Special Olympics provides people with intellectual disabilities continuing opportunities to realize their potential, develop physical fitness, demonstrate courage and experience joy and friendship. Be a fan of Special Olympics, visit http://www.specialolympics.org.
About Krispy Kreme
Krispy Kreme is a leading branded specialty retailer of premium quality sweet treats, including its signature Hot Original Glazed(TM) doughnut. Headquartered in Winston-Salem, NC, the company has offered the highest quality doughnuts and great tasting coffee since it was founded in 1937. Krispy Kreme is proud that for decades its Fundraising program has helped non- profit organizations raise millions of dollars in needed funds. Today, Krispy Kreme and its one-of-a-kind Hot Light can be found in approximately 430 locations around the world. Visit us at http://www.KrispyKreme.com.
Information contained in this press release, other than historical information, should be considered forward-looking. Forward-looking statements are subject to various risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or expected. Among the key factors that may have a direct bearing on Krispy Kreme's operating results, performance or financial condition are the outcome of pending governmental investigations and litigation, including governmental investigations by the United States Securities and Exchange Commission and the United States Attorney's Office for the Southern District of New York; potential indemnification obligations and limitations of our director and officer liability insurance; material weaknesses in our internal control over financial reporting; our ability to implement remedial measures necessary to improve our processes and procedures; negative publicity; significant changes in our management; our ability, and our dependence on the ability of our franchisees, to execute our and their business plans; our ability to implement our international growth strategy; currency, economic, political and other risks associated with our international operations; the price and availability of raw materials needed to produce doughnut mixes and other ingredients; compliance with governmental regulations relating to food products and franchising; our relationships with wholesale customers; our ability to protect our trademarks; restrictions on our operations and compliance with covenants contained in our secured credit facilities; changes in customer preferences and perceptions; risks associated with competition; and other factors discussed in Krispy Kreme's Annual Report on Form 10-K for fiscal 2007 and other periodic reports filed with the United States Securities and Exchange Commission.
SOURCE Krispy Kreme Doughnuts, Inc.
Source: PR Newswire (April 29, 2008 - 9:20 AM EDT)
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The Cheesecake Factory Reports Results for First Quarter of Fiscal 2008
The Cheesecake Factory Incorporated (NASDAQ: CAKE) today reported financial results for the first quarter of fiscal 2008, which ended on April 1, 2008.
Total revenues increased 10% to $393.8 million from $356.6 million in the first quarter of fiscal 2008. Net income and diluted net income per share were $14.3 million and $0.21, respectively.
Operating Results
Comparable restaurant sales decreased approximately 1.8% in the first quarter of fiscal 2008. Inclement weather in many parts of the country during the first quarter of fiscal 2008 had a net impact on comparable sales of approximately $1.6 million. Excluding the estimated weather-related effect, comparable restaurant sales would have decreased approximately 1.2%.
By concept, comparable restaurant sales decreased an estimated 1.9% and 0.9% at The Cheesecake Factory and Grand Lux Cafe, respectively, in the first quarter of fiscal 2008. Absent any impact from weather, comparable sales would have decreased approximately 1.3% and 0.6% at The Cheesecake Factory and Grand Lux Cafe, respectively.
“We continue to be focused on execution and firmly managing our costs. Our operating margins were in-line with our expectations, despite ongoing cost headwinds and the de-leveraging effect from guest traffic that has not yet returned to normalized levels,” said David Overton, Chairman and CEO. “We executed against our business plan for fiscal 2008 and repurchased shares during the first quarter. We firmly believe in the strength of our brands and view our stock repurchases as a good investment, as well as a means for us to deliver on our commitment to return value to shareholders.”
Stock Repurchases
The Company repurchased approximately 2.2 million shares of its common stock during the first quarter of fiscal 2008 at a total cost of $45 million as part of its previously announced fiscal 2008 business plan, which includes estimated share repurchases of between $150 million and $200 million. The Company has repurchased approximately 15.7 million shares under its 31 million share authorization.
Targeted New Restaurant Openings
The Company continues to expect to open between seven and nine new restaurants in fiscal 2008, consisting of six to eight Cheesecake Factory restaurants as well as the initial unit of its newest concept, RockSugar Pan Asian Kitchen. The Company anticipates opening four Cheesecake Factory restaurants and RockSugar Pan Asian Kitchen in the second quarter of fiscal 2008, and expects the remaining new restaurants to open in the fourth quarter of fiscal 2008. The Company will maintain its focus on selecting only the premier locations for its concepts based upon their availability.
Conference Call and Webcast
A conference call to review the results for the first quarter of fiscal 2008 will be held on Thursday, April 24, 2008 at 2:00 p.m. Pacific Time. The conference call will be broadcast live over the Internet and a replay will be available shortly after the call and continue through May 23, 2008. To listen to the conference call, please go to the Company’s website at thecheesecakefactory.com at least 15 minutes prior to the start of the call to register and download any necessary audio software. Click on the “Investors” link on the home page, and select the links for “Financial Information” and “Webcasts.”
About The Cheesecake Factory Incorporated
The Cheesecake Factory Incorporated created the upscale casual dining segment in 1978 with the introduction of its namesake concept and continues to define it today with the two highest productivity concepts in the industry. The Company operates 139 restaurants throughout the U.S. under The Cheesecake Factory® name with an extensive menu of more than 200 items and fiscal 2007 average annual unit sales of approximately $10.4 million. Grand Lux Cafe®, the Company’s second concept, has 13 units in operation across the U.S. offering a broad menu of more than 150 items and average annual unit sales of approximately $12.7 million in fiscal 2007. The Company also operates two bakery production facilities in Calabasas Hills, CA and Rocky Mount, NC that produce over 60 varieties of quality cheesecakes and other baked products. Additionally, the Company operates one self-service, limited menu express foodservice operation and licenses two bakery cafe outlets to another foodservice operator under The Cheesecake Factory Bakery Cafe® mark. For more information, please visit thecheesecakefactory.com.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this release are generally identified by words, such as "believes," "anticipates," "plans," "expects," "will," and "would," and similar expressions that are intended to identify forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Investors are cautioned that forward-looking statements are not guarantees of future performance and that undue reliance should not be placed on such statements. In particular, forward-looking statements regarding the Company’s restaurant sales trends are subject to risks and uncertainties due to national and regional economic and public safety conditions that impact consumer confidence and spending, as well as weather and other factors outside of the Company’s control. Forward-looking statements regarding the number and timing of the Company’s planned new restaurant openings are subject to risks and uncertainties due to factors outside of the Company’s control, including factors that are under the control of government agencies, landlords and others. Approximately 15.3 million shares of the Company’s common stock may be purchased under the Company’s share repurchase authorization. This authorization does not require the Company to purchase a specific number of shares and it may be modified, suspended or terminated at any time. The timing and number of shares repurchased, if any, pursuant to the share repurchase authorization will be subject to a number of factors, including current market conditions, legal constraints and available cash or other sources of funding. Forward-looking statements speak only as of the dates on which they were made. The Company undertakes no obligation to publicly update or revise any forward-looking statements or to make any other forward-looking statements, whether as a result of new information, future events or otherwise unless required to do so by the securities laws. Investors are referred to the full discussion of risks and uncertainties associated with forward-looking statements and the discussion of risk factors contained in the Company’s filings with the Securities and Exchange Commission. These filings are available on a website maintained by the Securities and Exchange Commission at www.sec.gov.
The Cheesecake Factory Incorporated and Subsidiaries
Consolidated Financial Statements
(unaudited; in thousands, except per share and statistical data)
13 Weeks Ended 13 Weeks Ended
Consolidated Statements of Operations April 1, 2008 April 3, 2007
Amount
Percent of Revenues Amount
Percent of Revenues
Revenues $ 393,803 100.0 % $ 356,583 100.0 %
Costs and expenses:
Cost of sales 100,739 25.6 % 89,560 25.1 %
Labor expenses 132,523 33.7 % 118,840 33.3 %
Other operating costs and expenses 95,898 24.3 % 84,794 23.8 %
General and administrative expenses 20,343 5.2 % 19,472 5.5 %
Depreciation and amortization expenses 18,093 4.6 % 15,390 4.3 %
Preopening costs 2,486 0.6 % 3,084 0.9 %
Total costs and expenses 370,082 94.0 % 331,140 92.9 %
Income from operations 23,721 6.0 % 25,443 7.1 %
Interest expense (3,539 ) (0.9)
%
(1,047 ) (0.3)
%
Interest income 522 0.1 % 1,632 0.5 %
Other income, net (175 ) 0.0 % 267 0.1 %
Income before income taxes 20,529 5.2 % 26,295 7.4 %
Income tax provision 6,200 1.6 % 7,889 2.2 %
Net income $ 14,329
3.6 % $ 18,406 5.2 %
Basic net income per share $ 0.21 $ 0.24
Basic weighted average shares outstanding 68,110 77,022
Diluted net income per share $ 0.21 $ 0.24
Diluted weighted average shares outstanding 68,629 78,165
Selected Segment Information
Revenues:
Restaurants $ 378,684 $ 343,081
Bakery 27,083 24,940
Intercompany bakery sales (11,964 ) (11,438 )
$ 393,803 $ 356,583
Income from operations:
Restaurants $ 42,065 $ 42,121
Bakery 3,083 4,107
Corporate (21,427 ) (20,785 )
$ 23,721 $ 25,443
Selected Consolidated Balance Sheet Information April 1, 2008 January 1, 2008
Cash and cash equivalents $ 128,786 $ 36,867
Investments and marketable securities 1,033 12,362
Total assets 1,191,085 1,145,753
Long-term debt 275,000 175,000
Total liabilities 656,792 582,827
Stockholders' equity 534,293 562,926
13 Weeks Ended 13 Weeks Ended
Supplemental Information April 1, 2008 April 3, 2007
Comparable restaurant sales percentage change (1) -1.8 % 0.4 %
Restaurants opened during period 0 1
Restaurants open at period-end 153 133
Restaurant operating weeks 1,988 1,720
(1) Includes The Cheesecake Factory and Grand Lux Cafe restaurants
The Cheesecake Factory Incorporated
Jill Peters, 818-871-3000
The Cheesecake Factory Reports Results for First Quarter of Fiscal 2008
The Cheesecake Factory Incorporated (NASDAQ: CAKE) today reported financial results for the first quarter of fiscal 2008, which ended on April 1, 2008.
Total revenues increased 10% to $393.8 million from $356.6 million in the first quarter of fiscal 2008. Net income and diluted net income per share were $14.3 million and $0.21, respectively.
Operating Results
Comparable restaurant sales decreased approximately 1.8% in the first quarter of fiscal 2008. Inclement weather in many parts of the country during the first quarter of fiscal 2008 had a net impact on comparable sales of approximately $1.6 million. Excluding the estimated weather-related effect, comparable restaurant sales would have decreased approximately 1.2%.
By concept, comparable restaurant sales decreased an estimated 1.9% and 0.9% at The Cheesecake Factory and Grand Lux Cafe, respectively, in the first quarter of fiscal 2008. Absent any impact from weather, comparable sales would have decreased approximately 1.3% and 0.6% at The Cheesecake Factory and Grand Lux Cafe, respectively.
“We continue to be focused on execution and firmly managing our costs. Our operating margins were in-line with our expectations, despite ongoing cost headwinds and the de-leveraging effect from guest traffic that has not yet returned to normalized levels,” said David Overton, Chairman and CEO. “We executed against our business plan for fiscal 2008 and repurchased shares during the first quarter. We firmly believe in the strength of our brands and view our stock repurchases as a good investment, as well as a means for us to deliver on our commitment to return value to shareholders.”
Stock Repurchases
The Company repurchased approximately 2.2 million shares of its common stock during the first quarter of fiscal 2008 at a total cost of $45 million as part of its previously announced fiscal 2008 business plan, which includes estimated share repurchases of between $150 million and $200 million. The Company has repurchased approximately 15.7 million shares under its 31 million share authorization.
Targeted New Restaurant Openings
The Company continues to expect to open between seven and nine new restaurants in fiscal 2008, consisting of six to eight Cheesecake Factory restaurants as well as the initial unit of its newest concept, RockSugar Pan Asian Kitchen. The Company anticipates opening four Cheesecake Factory restaurants and RockSugar Pan Asian Kitchen in the second quarter of fiscal 2008, and expects the remaining new restaurants to open in the fourth quarter of fiscal 2008. The Company will maintain its focus on selecting only the premier locations for its concepts based upon their availability.
Conference Call and Webcast
A conference call to review the results for the first quarter of fiscal 2008 will be held on Thursday, April 24, 2008 at 2:00 p.m. Pacific Time. The conference call will be broadcast live over the Internet and a replay will be available shortly after the call and continue through May 23, 2008. To listen to the conference call, please go to the Company’s website at thecheesecakefactory.com at least 15 minutes prior to the start of the call to register and download any necessary audio software. Click on the “Investors” link on the home page, and select the links for “Financial Information” and “Webcasts.”
About The Cheesecake Factory Incorporated
The Cheesecake Factory Incorporated created the upscale casual dining segment in 1978 with the introduction of its namesake concept and continues to define it today with the two highest productivity concepts in the industry. The Company operates 139 restaurants throughout the U.S. under The Cheesecake Factory® name with an extensive menu of more than 200 items and fiscal 2007 average annual unit sales of approximately $10.4 million. Grand Lux Cafe®, the Company’s second concept, has 13 units in operation across the U.S. offering a broad menu of more than 150 items and average annual unit sales of approximately $12.7 million in fiscal 2007. The Company also operates two bakery production facilities in Calabasas Hills, CA and Rocky Mount, NC that produce over 60 varieties of quality cheesecakes and other baked products. Additionally, the Company operates one self-service, limited menu express foodservice operation and licenses two bakery cafe outlets to another foodservice operator under The Cheesecake Factory Bakery Cafe® mark. For more information, please visit thecheesecakefactory.com.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this release are generally identified by words, such as "believes," "anticipates," "plans," "expects," "will," and "would," and similar expressions that are intended to identify forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Investors are cautioned that forward-looking statements are not guarantees of future performance and that undue reliance should not be placed on such statements. In particular, forward-looking statements regarding the Company’s restaurant sales trends are subject to risks and uncertainties due to national and regional economic and public safety conditions that impact consumer confidence and spending, as well as weather and other factors outside of the Company’s control. Forward-looking statements regarding the number and timing of the Company’s planned new restaurant openings are subject to risks and uncertainties due to factors outside of the Company’s control, including factors that are under the control of government agencies, landlords and others. Approximately 15.3 million shares of the Company’s common stock may be purchased under the Company’s share repurchase authorization. This authorization does not require the Company to purchase a specific number of shares and it may be modified, suspended or terminated at any time. The timing and number of shares repurchased, if any, pursuant to the share repurchase authorization will be subject to a number of factors, including current market conditions, legal constraints and available cash or other sources of funding. Forward-looking statements speak only as of the dates on which they were made. The Company undertakes no obligation to publicly update or revise any forward-looking statements or to make any other forward-looking statements, whether as a result of new information, future events or otherwise unless required to do so by the securities laws. Investors are referred to the full discussion of risks and uncertainties associated with forward-looking statements and the discussion of risk factors contained in the Company’s filings with the Securities and Exchange Commission. These filings are available on a website maintained by the Securities and Exchange Commission at www.sec.gov.
The Cheesecake Factory Incorporated and Subsidiaries
Consolidated Financial Statements
(unaudited; in thousands, except per share and statistical data)
13 Weeks Ended 13 Weeks Ended
Consolidated Statements of Operations April 1, 2008 April 3, 2007
Amount
Percent of Revenues Amount
Percent of Revenues
Revenues $ 393,803 100.0 % $ 356,583 100.0 %
Costs and expenses:
Cost of sales 100,739 25.6 % 89,560 25.1 %
Labor expenses 132,523 33.7 % 118,840 33.3 %
Other operating costs and expenses 95,898 24.3 % 84,794 23.8 %
General and administrative expenses 20,343 5.2 % 19,472 5.5 %
Depreciation and amortization expenses 18,093 4.6 % 15,390 4.3 %
Preopening costs 2,486 0.6 % 3,084 0.9 %
Total costs and expenses 370,082 94.0 % 331,140 92.9 %
Income from operations 23,721 6.0 % 25,443 7.1 %
Interest expense (3,539 ) (0.9)
%
(1,047 ) (0.3)
%
Interest income 522 0.1 % 1,632 0.5 %
Other income, net (175 ) 0.0 % 267 0.1 %
Income before income taxes 20,529 5.2 % 26,295 7.4 %
Income tax provision 6,200 1.6 % 7,889 2.2 %
Net income $ 14,329
3.6 % $ 18,406 5.2 %
Basic net income per share $ 0.21 $ 0.24
Basic weighted average shares outstanding 68,110 77,022
Diluted net income per share $ 0.21 $ 0.24
Diluted weighted average shares outstanding 68,629 78,165
Selected Segment Information
Revenues:
Restaurants $ 378,684 $ 343,081
Bakery 27,083 24,940
Intercompany bakery sales (11,964 ) (11,438 )
$ 393,803 $ 356,583
Income from operations:
Restaurants $ 42,065 $ 42,121
Bakery 3,083 4,107
Corporate (21,427 ) (20,785 )
$ 23,721 $ 25,443
Selected Consolidated Balance Sheet Information April 1, 2008 January 1, 2008
Cash and cash equivalents $ 128,786 $ 36,867
Investments and marketable securities 1,033 12,362
Total assets 1,191,085 1,145,753
Long-term debt 275,000 175,000
Total liabilities 656,792 582,827
Stockholders' equity 534,293 562,926
13 Weeks Ended 13 Weeks Ended
Supplemental Information April 1, 2008 April 3, 2007
Comparable restaurant sales percentage change (1) -1.8 % 0.4 %
Restaurants opened during period 0 1
Restaurants open at period-end 153 133
Restaurant operating weeks 1,988 1,720
(1) Includes The Cheesecake Factory and Grand Lux Cafe restaurants
The Cheesecake Factory Incorporated
Jill Peters, 818-871-3000
Darden Restaurants to Present at Lehman Brothers Eleventh Annual Retail Conference
ORLANDO, Fla., April 28 /PRNewswire-FirstCall/ -- Darden Restaurants, Inc., (NYSE: DRI) will be presenting at Lehman Brothers 11th Annual Retail Conference to be held in New York City, New York. There will be an on-line simulcast of the Company's presentation which begins at 2:30 pm (Eastern) on Tuesday, April 29, 2008, available at the Company's website, www.darden.com . An audio-only webcast of the Company's presentation will be available over the Internet at http://cc.talkpoint.com/LEHM002/050107a_jw/default.asp?entity=DardenRestaurant s&id=5258 . The archived webcast will also be available on the home page of the company's website www.darden.com through May 6, 2008.
(Logo: http://www.newscom.com/cgi-bin/prnh/20050203/FLTH026LOGO )
Darden Restaurants, Inc., (NYSE: DRI) headquartered in Orlando, Fla., is the world's largest full-service restaurant company with almost $6.7 billion in annual sales and approximately 170,000 employees. The Company owns and operates nearly 1,700 restaurants including Red Lobster, Olive Garden, LongHorn Steakhouse, The Capital Grille, Bahama Breeze and Seasons 52. For more information, please visit www.Darden.com .
SOURCE Darden Restaurants, Inc.
Darden Restaurants to Present at Lehman Brothers Eleventh Annual Retail Conference
ORLANDO, Fla., April 28 /PRNewswire-FirstCall/ -- Darden Restaurants, Inc., (NYSE: DRI) will be presenting at Lehman Brothers 11th Annual Retail Conference to be held in New York City, New York. There will be an on-line simulcast of the Company's presentation which begins at 2:30 pm (Eastern) on Tuesday, April 29, 2008, available at the Company's website, www.darden.com . An audio-only webcast of the Company's presentation will be available over the Internet at http://cc.talkpoint.com/LEHM002/050107a_jw/default.asp?entity=DardenRestaurant s&id=5258 . The archived webcast will also be available on the home page of the company's website www.darden.com through May 6, 2008.
(Logo: http://www.newscom.com/cgi-bin/prnh/20050203/FLTH026LOGO )
Darden Restaurants, Inc., (NYSE: DRI) headquartered in Orlando, Fla., is the world's largest full-service restaurant company with almost $6.7 billion in annual sales and approximately 170,000 employees. The Company owns and operates nearly 1,700 restaurants including Red Lobster, Olive Garden, LongHorn Steakhouse, The Capital Grille, Bahama Breeze and Seasons 52. For more information, please visit www.Darden.com .
SOURCE Darden Restaurants, Inc.
BJ's Restaurants, Inc. Reports Financial Results for the First Quarter of Fiscal 2008
BJ’s Restaurants, Inc. (NASDAQ: BJRI) today reported financial results for the first fiscal quarter ended April 1, 2008.
Highlights for the first quarter, compared to the same quarter last year, were as follows:
Revenues increased approximately 22% to $86.8 million
Net income was $3.1 million and diluted net income per share was $0.12, compared to net income of $1.6 million and diluted net income per share of $0.06 for the same quarter last year (which included a non-cash charge of approximately $1.3 million, net of tax, or $0.05 per diluted share, related to fixed asset disposals)
Comparable restaurant sales were approximately flat for the quarter
Total restaurant operating weeks increased approximately 24%
2008 restaurant expansion plan remains solidly on track
“In spite of the increasing difficulty of the overall operating environment for most casual dining restaurant companies in nearly every respect, our restaurant, brewery and infrastructure support teams did a very good job of driving BJ’s forward and managing the elements of our business that are within our control during the first quarter,” commented Jerry Deitchle, President and CEO. “As we initially noted in our February 2008 investor conference call, our first quarter results reflect softer levels of comparable sales, particularly in the Inland Empire and Sacramento areas of California and in the Phoenix area of Arizona, which together contain 13 of our 50 total comparable restaurants. These areas have been significantly impacted by the slowing national economy, the ‘credit crunch’ and the resulting pressures in general on consumer spending and confidence. Excluding these 13 restaurants from our comparable restaurant base for the first quarter, our comparable restaurant sales would have been up approximately 3.1%.”
“While no one can accurately predict how the consumer will continue to react in this volatile and slowing economy, we do not believe that the current difficult operating environment is likely to abate in the near future,” said Greg Levin, Executive Vice President and Chief Financial Officer. “Accordingly, we are accelerating our planned schedule of 2008 sales-building initiatives. These initiatives include on-line ordering and curbside cashiering services, call-ahead seating service, expanded delivery service, new lunch specials, and additional print media support for our new menu entrees and other services. We expect most of these initiatives to be in place by the end of the second quarter. On the operational execution front, our restaurant management team did a very good job of managing our controllable costs and expenses during the first quarter, and we expect them to continue to do so.”
The Company opened two new restaurants in the first quarter of 2008 in Cincinnati, Ohio and Louisville, Kentucky. The Cincinnati restaurant represents the Company’s second restaurant in Ohio, and the Louisville restaurant is the Company’s first restaurant in Kentucky. “We were very pleased with the initial sales volumes of our Cincinnati and Louisville restaurants, even though both were opened during periods of significant winter weather in both cities,” said Greg Lynds, Executive Vice President and Chief Development Officer. “With the planned May 2008 openings of our new restaurants in Indianapolis, Indiana and Kissimmee, Florida, BJ’s will have four restaurants in each of the Ohio Valley and Central Florida regions, and more openings are planned in these areas during upcoming years.”
“We remain very excited and confident in BJ’s long-term ability to gain additional market share in the estimated $90-plus billion casual dining segment of the restaurant industry,” said Deitchle. “Our development team has worked very hard to put us in an excellent position to successfully execute our previously stated restaurant expansion plan to open as many as 15 new restaurants during 2008 and thereby increase our total restaurant operating weeks another 20% to 25% during the year.” All prospective locations for potential 2008 openings have been secured and nine restaurants are currently under construction. As of this date, the Company currently expects to open approximately four, five and four new restaurants during each of the upcoming three fiscal quarters, respectively. The actual timing of restaurant openings is inherently difficult to precisely predict and is subject to weather conditions and other factors outside of the Company’s control, including factors that are under the control of the Company’s landlords, municipalities and contractors.
As previously disclosed, the Company’s investments consist of auction rate securities (“ARS”) with a par or face value of $37.1 million. These auction rate securities are AAA rated, long-term debt obligations secured by student loans, which loans are 97% guaranteed by the U.S. Government under the Federal Family Education Loan Program (“FFELP”). The recent uncertainties in the credit markets have affected the Company’s holding in these ARS investments, since auctions for the Company’s investments in these securities have failed to settle on their respective settlement dates. Historically, the fair value of the ARS investments approximated par value due to the frequent resets through the auction process. While the Company continues to earn interest on its ARS investments and there has been no change in the ratings of these securities to date, these investments are not currently trading and, therefore, do not currently have a readily determinable market value. In accordance with FASB Statement No. 157, Fair Value Measurements, (“FAS 157”), the Company estimated the fair value of its auction rate securities using valuation models and methodologies provided by third parties, including the Company’s investment manager for the ARS. Based on these valuation models and methodologies, the Company has recognized a temporary decline in the fair value of its ARS investments of approximately $1.5 million as of April 1, 2008. In accordance with FASB Statement No. 115, Accounting for Certain Investments in Debt and Equity Securities, (“FAS 115”), a temporary change in fair value results in an unrealized holding loss being recorded in the “other comprehensive income (loss)” component of shareholders’ equity. Such an unrealized holding loss does not affect net income for the applicable accounting period. Due to the current illiquidity of these investments and the uncertainty regarding the auction rate securities market, the Company has also reclassified these investments to non-current investments for the current reporting period at fair value. In addition, the Company has a $45 million line of credit, which has zero outstanding as of April 1, 2008, and currently anticipates holding these ARS investments until a recovery of the auction process or until maturity. The Company will continue to monitor the auction rate securities market and the liquidity and value of the securities it holds. Additional adjustments to the fair value may be required from quarter to quarter to reflect changes in market conditions.
Investor Conference Call and Webcast
BJ’s Restaurants, Inc. will conduct a conference call on its first quarter earnings release today, April 24, 2008, at 2:00 p.m. (Pacific Standard Time). The Company will provide an Internet simulcast, as well as a replay of the conference call. To listen to the conference call, please visit the “Investors” page of the Company's website located at http://www.bjsrestaurants.com several minutes prior to the start of the call to register and download any necessary audio software. An archive of the presentation will be available for 30 days following the call.
BJ's Restaurants, Inc. currently owns and operates 69 casual dining restaurants under the BJ's Restaurant & Brewery, BJ's Restaurant & Brewhouse or BJ's Pizza & Grill brand names. BJ's restaurants offer an innovative and broad menu featuring award-winning, signature deep-dish pizza complemented with generously portioned salads, appetizers, sandwiches, soups, pastas, entrees and desserts. Quality, flavor, value, moderate prices and sincere service remain distinct attributes of the BJ's experience. The Company operates several microbreweries which produce and distribute BJ's critically acclaimed handcrafted beers throughout the chain. The Company's restaurants are located in California (39), Texas (11), Arizona (4), Colorado (3), Oregon (2), Nevada (2), Florida (3), Ohio (2), Oklahoma (2) and Kentucky (1). The Company also has a licensing interest in a BJ's restaurant in Lahaina, Maui. Visit BJ's Restaurants, Inc. on the Web at http://www.bjsrestaurants.com.
Certain statements in the preceding paragraphs and all other statements that are not purely historical constitute "forward-looking statements" for purposes of the Securities Act of 1933 and the Securities and Exchange Act of 1934, as amended, and are intended to be covered by the safe harbors created thereby. Such statements include, but are not limited to, those regarding expected comparable restaurant sales growth in 2008, those regarding the effect of new sales-building initiatives, as well as those regarding the number of restaurants expected to be opened in 2008 and the timing and location of such openings. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results to be materially different from those projected or anticipated. Factors that might cause such differences include, but are not limited to: (i) our ability to manage an increasing number of new restaurant openings, (ii) construction delays, (iii) labor shortages, (iv) minimum wage increases, (v) food quality and health concerns, (vi) factors that impact California, where 39 of our current 69 restaurants are located, (vii) restaurant and brewery industry competition, (viii) impact of certain brewery business considerations, including without limitation, dependence upon suppliers and related hazards, (ix) consumer spending trends in general for casual dining occasions, (x) potential uninsured losses and liabilities, (xi) fluctuating commodity costs, the effect of any resulting menu price increases on our sales, the availability of food in general and certain raw materials related to the brewing of our handcrafted beers and energy, (xii) trademark and servicemark risks, (xiii) government regulations, (xiv) licensing costs, (xv) beer and liquor regulations, (xvi) loss of key personnel, (xvii) inability to secure acceptable sites, (xviii) limitations on insurance coverage, (xix) legal proceedings, (xx) other general economic and regulatory conditions and requirements, (xxi) the success of our key sales-building and related operational initiatives and (xxii) numerous other matters discussed in the Company's filings with the Securities and Exchange Commission. BJ's Restaurants, Inc. undertakes no obligation to update or alter its forward-looking statements whether as a result of new information, future events or otherwise.
Further information concerning the Company’s results of operations for first quarter 2008 will be provided in the Company’s Form 10-Q filing, to be filed with the Securities and Exchange Commission by May 12, 2008.
BJ’s Restaurants, Inc.
Unaudited Consolidated Statements of Income
(Dollars in thousands except for per share data)
For the Thirteen Weeks Ended
April 1, April 3,
Statement of Income Data: 2008 2007
Revenues $ 86,822 100.0 % $ 71,203 100.0 %
Costs and expenses:
Cost of sales 21,897 25.2 18,028 25.3
Labor and benefits 30,671 35.3 25,628 36.0
Operating and occupancy expenses 17,746 20.4 13,406 18.8
General and administrative expenses 7,396 8.5 6,238 8.8
Depreciation and amortization 4,268 4.9 3,052 4.3
Restaurant opening expense 1,127 1.3 1,420 2.0
Loss on disposal of assets - - 2,004 2.8
Total cost and expenses 83,105 95.6 69,776 98.0
Income from operations 3,717 4.4 1,427 2.0
Other income:
Interest income, net 651 0.7 976 1.4
Other income, net 88 0.1 34 0.0
Total other income 739 0.8 1,010 1.4
Income before income tax expense 4,456 5.2 2,437 3.4
Income tax expense 1,336 1.5 811 1.1
Net income $ 3,120 3.7 % $ 1,626 2.3 %
Net income per share:
Basic $ 0.12 $ 0.06
Diluted $ 0.12 $ 0.06
Weighted average number of shares outstanding:
Basic 26,359 26,072
Diluted 26,736 26,813
Selected Consolidated Balance Sheet Information
(Dollars in thousands)
Balance Sheet Data (end of period):
April 1,
2008
(unaudited)
January 1,
2008
(audited)
Cash and cash equivalents $ 5,210 $ 11,617
Investments (1) $ 35,627 $ 41,100
Total assets $ 283,575 $ 285,299
Total long-term debt, including current portion $ - $ -
Shareholders’ equity $ 223,086 $ 220,523
(1) Investments are comprised of auction rate securities classified as available for sale and recorded at their fair value as of April 1, 2008.
Supplemental (Unaudited) Information (2) For the Thirteen Weeks Ended
April 1, 2008 April 3, 2007
Comparable restaurant sales % change 0.0 % 6.9 %
Restaurants opened during period 2 2
Restaurants open at period-end 69 57
Restaurant operating weeks 894 721
(2) excludes the one licensed restaurant
Reconciliation of Non-GAAP Financial Measures
To supplement the consolidated financial statements presented in accordance with U.S. generally accepted accounting principles (GAAP), the Company has included the following non-GAAP financial measures in this press release or in the webcast to discuss the Company's financial results for the first quarter which may be accessed via the Company's website at http://www.bjsrestaurants.com: (i) non-GAAP net income, and (ii) non-GAAP basic and diluted net income per share. Each of these non-GAAP financial measures is adjusted from results based on GAAP to exclude certain expenses and gains. As a general matter, the Company uses these non-GAAP measures in addition to and in conjunction with results presented in accordance with GAAP. Among other things, the Company uses such non-GAAP financial measures in addition to and in conjunction with corresponding GAAP measures to help analyze the performance of its core business. In addition, the Company believes that such non-GAAP financial information is provided by its competitors and such information is used by analysts and others in the investment community to analyze the Company's results and in formulating estimates of future performance and that failure to report these non-GAAP measures, could result in confusion among analysts and others and a misplaced perception that the Company's results have underperformed or exceeded expectations or the results of its competitors.
These non-GAAP financial measures reflect an additional way of viewing aspects of the Company's operations that, when viewed with the GAAP results and the reconciliations to corresponding GAAP financial measures, provide a more complete understanding of the Company's results of operations and the factors and trends affecting the Company's business. However, these non-GAAP measures should be considered as a supplement to, and not as a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP.
Non-GAAP net income and non-GAAP basic and diluted net income per share exclude the effects of (i) stock-based compensation expense, and (ii) a loss on the disposal of certain assets. In addition, non-GAAP net income and non-GAAP diluted net income per share reflect an adjustment of income tax expense associated with exclusion of the foregoing expense items. The adjustment of income taxes is required in order to provide management and investors a more accurate assessment of the taxes that would have been payable on net income, as adjusted by exclusion of the effects of the above listed items. The Company believes that presentation of measures of net income and diluted net income per share that exclude these items assists management and investors in evaluating the period over period performance of the Company's ongoing core business operations because the expenses are non-cash in nature. Additionally, although the sizes of the Company’s grants of various equity awards are within the Company's control, the amount of stock compensation expense varies depending on factors such as short-term fluctuations in stock price and volatility which can be unrelated to the operational performance of the Company during the period in question and generally is outside the control of management during the period in which the expense is recognized. Moreover, the Company believes that the exclusion of stock-based compensation in presenting non-GAAP financial measures is useful to investors to understand the impact of the expensing of stock-based compensation to the Company's net income and net income per share in comparison to prior periods as well as to its competitors. Furthermore, with the respect to the exclusion of charges relating to the disposal of certain assets, the Company believes that presentation of a measure of non-GAAP net income and net income per share that excludes such charges is useful to management and investors in evaluating the performance of the Company’s ongoing operations on a period-to-period basis and relative to the Company’s competitors. In this regard, the Company notes that the losses of this type are infrequent and variable in nature.
The Company believes disclosure of non-GAAP net income and non-GAAP basic and diluted net income per share has economic substance because the excluded expenses are infrequent in nature and do not represent current cash expenditures. A material limitation associated with the use of this measure as compared to the GAAP measures of net income and diluted net income per share is that they may not be comparable with the calculation of net income and diluted net income per share for other companies in the Company's industry. The Company compensates for these limitations by providing full disclosure of the effects of this non-GAAP measure, by presenting the corresponding GAAP financial measure in this release and in the Company’s financial statements and by providing a reconciliation to the corresponding GAAP measure to enable investors to perform their own analysis.
(Unaudited, dollars in thousands except per share data)
Thirteen Weeks Ended
April 1, 2008 April 3, 2007
Net income as reported $ 3,120 3.7 % $ 1,626 2.3 %
Stock-based compensation:
Labor and benefits 208 0.2 161 0.2
General and administrative expenses 608 0.7 539 0.8
Loss on disposal of fixed assets - - 2,004 2.8
Tax effect – stock-based compensation (245 ) (0.3 ) (233 ) (0.3 )
Tax effect – loss on disposal of fixed assets - - (667 ) (1.0 )
Non-GAAP net income $ 3,691 4.3 % $ 3,430 4.8 %
Basic net income per share $ 0.12 $ 0.06
Stock-based compensation 0.03 0.03
Loss on disposal of fixed assets - 0.08
Tax effect – stock-based compensation (0.01 ) 0.00
Tax effect – loss on disposal of fixed assets - (0.03 )
Non-GAAP basic net income per share $ 0.14 $ 0.14
Diluted net income per share $ 0.12 $ 0.06
Stock-based compensation 0.03 0.03
Loss on disposal of fixed assets - 0.07
Tax effect – stock-based compensation (0.01 ) (0.01 )
Tax effect – loss on disposal of fixed assets - (0.02 )
Non-GAAP diluted net income per share $ 0.14 $ 0.13
BJ’s Restaurants, Inc.
Greg Levin, 714-500-2400
Source: Business Wire (April 24, 2008 - 4:33 PM EDT)
BJ's Restaurants, Inc. Reports Financial Results for the First Quarter of Fiscal 2008
BJ’s Restaurants, Inc. (NASDAQ: BJRI) today reported financial results for the first fiscal quarter ended April 1, 2008.
Highlights for the first quarter, compared to the same quarter last year, were as follows:
Revenues increased approximately 22% to $86.8 million
Net income was $3.1 million and diluted net income per share was $0.12, compared to net income of $1.6 million and diluted net income per share of $0.06 for the same quarter last year (which included a non-cash charge of approximately $1.3 million, net of tax, or $0.05 per diluted share, related to fixed asset disposals)
Comparable restaurant sales were approximately flat for the quarter
Total restaurant operating weeks increased approximately 24%
2008 restaurant expansion plan remains solidly on track
“In spite of the increasing difficulty of the overall operating environment for most casual dining restaurant companies in nearly every respect, our restaurant, brewery and infrastructure support teams did a very good job of driving BJ’s forward and managing the elements of our business that are within our control during the first quarter,” commented Jerry Deitchle, President and CEO. “As we initially noted in our February 2008 investor conference call, our first quarter results reflect softer levels of comparable sales, particularly in the Inland Empire and Sacramento areas of California and in the Phoenix area of Arizona, which together contain 13 of our 50 total comparable restaurants. These areas have been significantly impacted by the slowing national economy, the ‘credit crunch’ and the resulting pressures in general on consumer spending and confidence. Excluding these 13 restaurants from our comparable restaurant base for the first quarter, our comparable restaurant sales would have been up approximately 3.1%.”
“While no one can accurately predict how the consumer will continue to react in this volatile and slowing economy, we do not believe that the current difficult operating environment is likely to abate in the near future,” said Greg Levin, Executive Vice President and Chief Financial Officer. “Accordingly, we are accelerating our planned schedule of 2008 sales-building initiatives. These initiatives include on-line ordering and curbside cashiering services, call-ahead seating service, expanded delivery service, new lunch specials, and additional print media support for our new menu entrees and other services. We expect most of these initiatives to be in place by the end of the second quarter. On the operational execution front, our restaurant management team did a very good job of managing our controllable costs and expenses during the first quarter, and we expect them to continue to do so.”
The Company opened two new restaurants in the first quarter of 2008 in Cincinnati, Ohio and Louisville, Kentucky. The Cincinnati restaurant represents the Company’s second restaurant in Ohio, and the Louisville restaurant is the Company’s first restaurant in Kentucky. “We were very pleased with the initial sales volumes of our Cincinnati and Louisville restaurants, even though both were opened during periods of significant winter weather in both cities,” said Greg Lynds, Executive Vice President and Chief Development Officer. “With the planned May 2008 openings of our new restaurants in Indianapolis, Indiana and Kissimmee, Florida, BJ’s will have four restaurants in each of the Ohio Valley and Central Florida regions, and more openings are planned in these areas during upcoming years.”
“We remain very excited and confident in BJ’s long-term ability to gain additional market share in the estimated $90-plus billion casual dining segment of the restaurant industry,” said Deitchle. “Our development team has worked very hard to put us in an excellent position to successfully execute our previously stated restaurant expansion plan to open as many as 15 new restaurants during 2008 and thereby increase our total restaurant operating weeks another 20% to 25% during the year.” All prospective locations for potential 2008 openings have been secured and nine restaurants are currently under construction. As of this date, the Company currently expects to open approximately four, five and four new restaurants during each of the upcoming three fiscal quarters, respectively. The actual timing of restaurant openings is inherently difficult to precisely predict and is subject to weather conditions and other factors outside of the Company’s control, including factors that are under the control of the Company’s landlords, municipalities and contractors.
As previously disclosed, the Company’s investments consist of auction rate securities (“ARS”) with a par or face value of $37.1 million. These auction rate securities are AAA rated, long-term debt obligations secured by student loans, which loans are 97% guaranteed by the U.S. Government under the Federal Family Education Loan Program (“FFELP”). The recent uncertainties in the credit markets have affected the Company’s holding in these ARS investments, since auctions for the Company’s investments in these securities have failed to settle on their respective settlement dates. Historically, the fair value of the ARS investments approximated par value due to the frequent resets through the auction process. While the Company continues to earn interest on its ARS investments and there has been no change in the ratings of these securities to date, these investments are not currently trading and, therefore, do not currently have a readily determinable market value. In accordance with FASB Statement No. 157, Fair Value Measurements, (“FAS 157”), the Company estimated the fair value of its auction rate securities using valuation models and methodologies provided by third parties, including the Company’s investment manager for the ARS. Based on these valuation models and methodologies, the Company has recognized a temporary decline in the fair value of its ARS investments of approximately $1.5 million as of April 1, 2008. In accordance with FASB Statement No. 115, Accounting for Certain Investments in Debt and Equity Securities, (“FAS 115”), a temporary change in fair value results in an unrealized holding loss being recorded in the “other comprehensive income (loss)” component of shareholders’ equity. Such an unrealized holding loss does not affect net income for the applicable accounting period. Due to the current illiquidity of these investments and the uncertainty regarding the auction rate securities market, the Company has also reclassified these investments to non-current investments for the current reporting period at fair value. In addition, the Company has a $45 million line of credit, which has zero outstanding as of April 1, 2008, and currently anticipates holding these ARS investments until a recovery of the auction process or until maturity. The Company will continue to monitor the auction rate securities market and the liquidity and value of the securities it holds. Additional adjustments to the fair value may be required from quarter to quarter to reflect changes in market conditions.
Investor Conference Call and Webcast
BJ’s Restaurants, Inc. will conduct a conference call on its first quarter earnings release today, April 24, 2008, at 2:00 p.m. (Pacific Standard Time). The Company will provide an Internet simulcast, as well as a replay of the conference call. To listen to the conference call, please visit the “Investors” page of the Company's website located at http://www.bjsrestaurants.com several minutes prior to the start of the call to register and download any necessary audio software. An archive of the presentation will be available for 30 days following the call.
BJ's Restaurants, Inc. currently owns and operates 69 casual dining restaurants under the BJ's Restaurant & Brewery, BJ's Restaurant & Brewhouse or BJ's Pizza & Grill brand names. BJ's restaurants offer an innovative and broad menu featuring award-winning, signature deep-dish pizza complemented with generously portioned salads, appetizers, sandwiches, soups, pastas, entrees and desserts. Quality, flavor, value, moderate prices and sincere service remain distinct attributes of the BJ's experience. The Company operates several microbreweries which produce and distribute BJ's critically acclaimed handcrafted beers throughout the chain. The Company's restaurants are located in California (39), Texas (11), Arizona (4), Colorado (3), Oregon (2), Nevada (2), Florida (3), Ohio (2), Oklahoma (2) and Kentucky (1). The Company also has a licensing interest in a BJ's restaurant in Lahaina, Maui. Visit BJ's Restaurants, Inc. on the Web at http://www.bjsrestaurants.com.
Certain statements in the preceding paragraphs and all other statements that are not purely historical constitute "forward-looking statements" for purposes of the Securities Act of 1933 and the Securities and Exchange Act of 1934, as amended, and are intended to be covered by the safe harbors created thereby. Such statements include, but are not limited to, those regarding expected comparable restaurant sales growth in 2008, those regarding the effect of new sales-building initiatives, as well as those regarding the number of restaurants expected to be opened in 2008 and the timing and location of such openings. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results to be materially different from those projected or anticipated. Factors that might cause such differences include, but are not limited to: (i) our ability to manage an increasing number of new restaurant openings, (ii) construction delays, (iii) labor shortages, (iv) minimum wage increases, (v) food quality and health concerns, (vi) factors that impact California, where 39 of our current 69 restaurants are located, (vii) restaurant and brewery industry competition, (viii) impact of certain brewery business considerations, including without limitation, dependence upon suppliers and related hazards, (ix) consumer spending trends in general for casual dining occasions, (x) potential uninsured losses and liabilities, (xi) fluctuating commodity costs, the effect of any resulting menu price increases on our sales, the availability of food in general and certain raw materials related to the brewing of our handcrafted beers and energy, (xii) trademark and servicemark risks, (xiii) government regulations, (xiv) licensing costs, (xv) beer and liquor regulations, (xvi) loss of key personnel, (xvii) inability to secure acceptable sites, (xviii) limitations on insurance coverage, (xix) legal proceedings, (xx) other general economic and regulatory conditions and requirements, (xxi) the success of our key sales-building and related operational initiatives and (xxii) numerous other matters discussed in the Company's filings with the Securities and Exchange Commission. BJ's Restaurants, Inc. undertakes no obligation to update or alter its forward-looking statements whether as a result of new information, future events or otherwise.
Further information concerning the Company’s results of operations for first quarter 2008 will be provided in the Company’s Form 10-Q filing, to be filed with the Securities and Exchange Commission by May 12, 2008.
BJ’s Restaurants, Inc.
Unaudited Consolidated Statements of Income
(Dollars in thousands except for per share data)
For the Thirteen Weeks Ended
April 1, April 3,
Statement of Income Data: 2008 2007
Revenues $ 86,822 100.0 % $ 71,203 100.0 %
Costs and expenses:
Cost of sales 21,897 25.2 18,028 25.3
Labor and benefits 30,671 35.3 25,628 36.0
Operating and occupancy expenses 17,746 20.4 13,406 18.8
General and administrative expenses 7,396 8.5 6,238 8.8
Depreciation and amortization 4,268 4.9 3,052 4.3
Restaurant opening expense 1,127 1.3 1,420 2.0
Loss on disposal of assets - - 2,004 2.8
Total cost and expenses 83,105 95.6 69,776 98.0
Income from operations 3,717 4.4 1,427 2.0
Other income:
Interest income, net 651 0.7 976 1.4
Other income, net 88 0.1 34 0.0
Total other income 739 0.8 1,010 1.4
Income before income tax expense 4,456 5.2 2,437 3.4
Income tax expense 1,336 1.5 811 1.1
Net income $ 3,120 3.7 % $ 1,626 2.3 %
Net income per share:
Basic $ 0.12 $ 0.06
Diluted $ 0.12 $ 0.06
Weighted average number of shares outstanding:
Basic 26,359 26,072
Diluted 26,736 26,813
Selected Consolidated Balance Sheet Information
(Dollars in thousands)
Balance Sheet Data (end of period):
April 1,
2008
(unaudited)
January 1,
2008
(audited)
Cash and cash equivalents $ 5,210 $ 11,617
Investments (1) $ 35,627 $ 41,100
Total assets $ 283,575 $ 285,299
Total long-term debt, including current portion $ - $ -
Shareholders’ equity $ 223,086 $ 220,523
(1) Investments are comprised of auction rate securities classified as available for sale and recorded at their fair value as of April 1, 2008.
Supplemental (Unaudited) Information (2) For the Thirteen Weeks Ended
April 1, 2008 April 3, 2007
Comparable restaurant sales % change 0.0 % 6.9 %
Restaurants opened during period 2 2
Restaurants open at period-end 69 57
Restaurant operating weeks 894 721
(2) excludes the one licensed restaurant
Reconciliation of Non-GAAP Financial Measures
To supplement the consolidated financial statements presented in accordance with U.S. generally accepted accounting principles (GAAP), the Company has included the following non-GAAP financial measures in this press release or in the webcast to discuss the Company's financial results for the first quarter which may be accessed via the Company's website at http://www.bjsrestaurants.com: (i) non-GAAP net income, and (ii) non-GAAP basic and diluted net income per share. Each of these non-GAAP financial measures is adjusted from results based on GAAP to exclude certain expenses and gains. As a general matter, the Company uses these non-GAAP measures in addition to and in conjunction with results presented in accordance with GAAP. Among other things, the Company uses such non-GAAP financial measures in addition to and in conjunction with corresponding GAAP measures to help analyze the performance of its core business. In addition, the Company believes that such non-GAAP financial information is provided by its competitors and such information is used by analysts and others in the investment community to analyze the Company's results and in formulating estimates of future performance and that failure to report these non-GAAP measures, could result in confusion among analysts and others and a misplaced perception that the Company's results have underperformed or exceeded expectations or the results of its competitors.
These non-GAAP financial measures reflect an additional way of viewing aspects of the Company's operations that, when viewed with the GAAP results and the reconciliations to corresponding GAAP financial measures, provide a more complete understanding of the Company's results of operations and the factors and trends affecting the Company's business. However, these non-GAAP measures should be considered as a supplement to, and not as a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP.
Non-GAAP net income and non-GAAP basic and diluted net income per share exclude the effects of (i) stock-based compensation expense, and (ii) a loss on the disposal of certain assets. In addition, non-GAAP net income and non-GAAP diluted net income per share reflect an adjustment of income tax expense associated with exclusion of the foregoing expense items. The adjustment of income taxes is required in order to provide management and investors a more accurate assessment of the taxes that would have been payable on net income, as adjusted by exclusion of the effects of the above listed items. The Company believes that presentation of measures of net income and diluted net income per share that exclude these items assists management and investors in evaluating the period over period performance of the Company's ongoing core business operations because the expenses are non-cash in nature. Additionally, although the sizes of the Company’s grants of various equity awards are within the Company's control, the amount of stock compensation expense varies depending on factors such as short-term fluctuations in stock price and volatility which can be unrelated to the operational performance of the Company during the period in question and generally is outside the control of management during the period in which the expense is recognized. Moreover, the Company believes that the exclusion of stock-based compensation in presenting non-GAAP financial measures is useful to investors to understand the impact of the expensing of stock-based compensation to the Company's net income and net income per share in comparison to prior periods as well as to its competitors. Furthermore, with the respect to the exclusion of charges relating to the disposal of certain assets, the Company believes that presentation of a measure of non-GAAP net income and net income per share that excludes such charges is useful to management and investors in evaluating the performance of the Company’s ongoing operations on a period-to-period basis and relative to the Company’s competitors. In this regard, the Company notes that the losses of this type are infrequent and variable in nature.
The Company believes disclosure of non-GAAP net income and non-GAAP basic and diluted net income per share has economic substance because the excluded expenses are infrequent in nature and do not represent current cash expenditures. A material limitation associated with the use of this measure as compared to the GAAP measures of net income and diluted net income per share is that they may not be comparable with the calculation of net income and diluted net income per share for other companies in the Company's industry. The Company compensates for these limitations by providing full disclosure of the effects of this non-GAAP measure, by presenting the corresponding GAAP financial measure in this release and in the Company’s financial statements and by providing a reconciliation to the corresponding GAAP measure to enable investors to perform their own analysis.
(Unaudited, dollars in thousands except per share data)
Thirteen Weeks Ended
April 1, 2008 April 3, 2007
Net income as reported $ 3,120 3.7 % $ 1,626 2.3 %
Stock-based compensation:
Labor and benefits 208 0.2 161 0.2
General and administrative expenses 608 0.7 539 0.8
Loss on disposal of fixed assets - - 2,004 2.8
Tax effect – stock-based compensation (245 ) (0.3 ) (233 ) (0.3 )
Tax effect – loss on disposal of fixed assets - - (667 ) (1.0 )
Non-GAAP net income $ 3,691 4.3 % $ 3,430 4.8 %
Basic net income per share $ 0.12 $ 0.06
Stock-based compensation 0.03 0.03
Loss on disposal of fixed assets - 0.08
Tax effect – stock-based compensation (0.01 ) 0.00
Tax effect – loss on disposal of fixed assets - (0.03 )
Non-GAAP basic net income per share $ 0.14 $ 0.14
Diluted net income per share $ 0.12 $ 0.06
Stock-based compensation 0.03 0.03
Loss on disposal of fixed assets - 0.07
Tax effect – stock-based compensation (0.01 ) (0.01 )
Tax effect – loss on disposal of fixed assets - (0.02 )
Non-GAAP diluted net income per share $ 0.14 $ 0.13
BJ’s Restaurants, Inc.
Greg Levin, 714-500-2400
Source: Business Wire (April 24, 2008 - 4:33 PM EDT)
Amen!
No idea just some trades today so I was wondering...
Anyone following ESCI? Know anything???
Yep, maybe something is up?
Thursday, Apr. 24 2008
Wendy's Accepts $2.34B Buyout Offer
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After seeking a buyer for the last 12 months, Wendy’s hamburger chain will sell to Triarc Companies for $2.34 billion.
Triarc Companies, owned by billionaire investor Nelson Peltz, also owns Arby’s roast beef chain.
Wendy’s, the nation’s third-largest burger chain, will be offered 4.25 shares of Triarc for each of its shares. Wendy’s jumped 1.7 percent in trading this morning.
The Wendy’s board appointed a committee in April 2007 to investigate a possible sale after its sales had slacked in compared to burger giants, McDonald’s and Burger King.
Yesterday, Wendy’s shares rose by 24 cents to $25.32, while shares of Triarc fell by 11 cents to $6.30.
Famous Dave's Reports First Quarter Results
Famous Dave's of America, Inc. (NASDAQ: DAVE) today announced revenue and net income of $33.7 million and $835,000, respectively, or $0.09 per diluted share, for its fiscal first quarter ended March 30, 2008. Revenue for the quarter increased 16.2 percent over the comparable period in 2007.
Same store sales for the company-owned restaurants open for 24 months or more increased 3.6 percent during the quarter, while same store sales for its franchise-operated restaurants declined 3.2 percent. Same store sales for the company-owned restaurants open for 18 months or more increased 3.2 percent during the quarter, while same store sales for its franchise-operated restaurants declined 4.8 percent. Franchise royalty revenue for the quarter totaled $4.2 million, up 14.2 percent over the comparable period in 2007.
Sales growth in the first quarter for company-owned restaurants was driven by the five new restaurants that have opened since the first quarter of 2007, and the impact from an approximate 3% weighted average price increase. The year-over-year shift in the Easter holiday from the second quarter of 2007 to the first quarter of 2008 had an approximate 1.0% negative impact on comparable sales.
Sales at comparable franchise-operated restaurants continue to be affected by adverse economic conditions in several areas of the country, which have been hard-hit by the effects of the credit and housing crisis.
“I’ve admired this brand for some time and I am excited to be part of its future growth,” said Wilson Craft, newly appointed President and Chief Executive Officer. “Obviously, we have some challenges, particularly given the difficult environment for casual dining. An intensified focus on our franchise business and a renewed focus on the company-owned restaurants will be a top priority,” Craft said.
Earnings for the first quarter on a year-over-year basis declined, reflecting the opening of five new company-owned restaurants since September 2007 which are still normalizing labor and operating costs. The company also experienced significantly below average temperatures in many of its core markets during the first quarter of 2008. This unseasonably cold weather resulted in increased labor costs due to unexpected declines in guest traffic, and negatively impacted operating costs due to higher utility costs.
The company's 2008 first quarter also reflected the following:
An increase in labor and benefits expense year-over-year reflecting a prior year worker’s compensation insurance credit adjustment that was approximately $105,000 higher than the current year adjustment.
An increase in operating expenses due to increased levels of advertising year-over-year.
Pre-opening expenses primarily for a new company-owned restaurant in Alexandria, Virginia totaling approximately $254,000.
Bad debt reserves of approximately $234,000 related to franchisees’ receivable balances, reflected in general and administrative expenses.
Executive search fees of approximately $200,000 related to the hiring of the company’s new CEO, reflected in general and administrative expenses.
An increase in depreciation and amortization year-over-year, reflecting capital invested towards the opening of five new restaurants and the result of the fourth quarter fiscal 2007 reclassification of assets previously held for sale to assets held and used.
A year-over-year increase in interest expense reflecting a higher average balance on the company’s revolver.
Earnings results for the first quarter of 2008 included approximately $280,000 or $0.02 per diluted share, in compensation expense as related to the company’s stock-based incentive programs, as compared to approximately $536,000, or $0.03 per diluted share, for the prior year comparable period.
Development and marketing highlights during the quarter included a "limited time offer" of BBQ shrimp, the company’s most successful promotion to date. Aiding traffic in the quarter was a successful television and radio campaign featured in the majority of its core markets.
Famous Dave’s opened four new restaurants during the first quarter: A company-owned restaurant in Alexandria, VA, and three franchise-operated restaurants in Silverdale, WA, Kansas City, MO and Bakersfield, CA.
Famous Dave's ended the quarter with 168 restaurants, including 45 company-owned restaurants and 123 franchise-operated restaurants, located in 35 states.
During the first quarter of 2008, Famous Dave's repurchased 16,000 shares of common stock at an average price of $9.73 per share, excluding commissions.
Outlook
Famous Dave's is reiterating its guidance issued in its fourth quarter earnings release. The company anticipates opening a total of 20 to 25 restaurants in 2008, with up to five locations to open in the second quarter.
In addition, the company reiterated its outlook on food costs and potential margin pressure during the first half of the year. In June, the company will be taking an additional price increase, intended to mitigate additional margin pressures for the remainder of 2008.
Conference Call
The company will host a conference call tomorrow, April 24, 2008, at 10:00 a.m. Central Time to discuss its first quarter financial results. There will be a live webcast of the discussion through the Investor Relations section of Famous Dave's web site at www.famousdaves.com.
About Famous Dave’s
Famous Dave’s of America, Inc. develops, owns, operates and franchises barbeque restaurants. As of today, the company owns 45 locations and franchises 124 additional units in 34 states and has signed development agreements for an additional 132 franchised locations. Its menu features award-winning barbequed and grilled meats, an ample selection of salads, side items and sandwiches, and unique desserts.
FAMOUS DAVE'S OF AMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
Three Months Ended
March 30, April 1,
2008 2007
(unaudited) (unaudited)
Revenue:
Restaurant sales, net $ 29,247 $ 24,941
Franchise royalty revenue 4,167 3,649
Franchise fee revenue 115 315
Licensing and other revenue 186 98
Total revenue 33,715 29,003
Costs and expenses:
Food and beverage costs 8,939 7,611
Labor and benefits costs 9,182 7,480
Operating expenses 7,493 6,193
Depreciation and amortization 1,461 1,155
General and administrative expenses 4,653 4,123
Pre-opening expenses 254 6
(Gain) loss on disposal of property (6) 18
Total costs and expenses 31,976 26,586
Income from operations 1,739 2,417
Other expense:
Loss on early extinguishment of debt --- (12)
Interest expense (511) (363)
Interest income 58 76
Other (expense) income, net (1) 4
Total other expense (454) (295)
Income before income taxes 1,285 2,122
Income tax expense (450) (720)
Net income $ 835 $ 1,402
Basic net income per common share $ 0.09 $ 0.14
Diluted net income per common share $ 0.09 $ 0.13
Weighted average common shares outstanding – basic 9,611,000 10,130,000
Weighted average common shares outstanding – diluted 9,773,000 10,492,000
FAMOUS DAVE'S OF AMERICA, INC. AND SUBSIDIARIES
OPERATING RESULTS
(unaudited)
Three Months Ended
March 30,
April 1,
2008 2007
Food and beverage costs (1) 30.6 % 30.5 %
Labor and benefits (1) 31.4 % 30.0 %
Operating expenses (1) 25.6 % 24.8 %
Depreciation & amortization (restaurant level) (1) 4.6 % 4.1 %
Depreciation & amortization (corporate level) (2) 0.3 % 0.4 %
General and administrative (2) 13.8 % 14.2 %
Pre-opening expenses & net (gain) loss on disposal(1) 0.9 % 0.1 %
Total restaurant costs and expenses (1) 93.1 % 89.5 %
Income from operations (2) 5.2 % 8.3 %
(1) As a percentage of restaurant sales, net
(2) As a percentage of total revenue
FAMOUS DAVE'S OF AMERICA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
March 30, December 30,
2008 2007
(unaudited)
(unaudited)
ASSETS
Current assets $ 12,410 $ 14,255
Property, equipment and leasehold improvements, net 57,521 57,243
Other assets 2,441 2,444
Total assets $ 72,372 $ 73,942
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities $ 25,705 $ 28,085
Long-term obligations 15,484 15,457
Shareholders’ equity 31,183 30,400
Total liabilities and shareholders’ equity $ 72,372 $ 73,942
SUPPLEMENTAL SALES INFORMATION
(unaudited)
Three Months Ended
March 30,
April 1,
2008 2007
Total weighted average weekly net sales (AWS):
Company-Owned $ 50,512 $ 46,794
Franchise-Operated $ 55,684 $ 56,018
AWS 2005 and Post 2005: (1)
Company-Owned $ 68,065 $ 69,192
Franchise-Operated $ 63,297 $ 66,315
AWS Pre-2005: (1)
Company-Owned $ 46,349 $ 44,373
Franchise-Operated $ 47,012 $ 47,847
Operating weeks:
Company-Owned 579 533
Franchise-Operated 1,538 1,326
24 month comparable net sales:
Company-Owned 3.6 % (0.9 %)
Franchise-Operated (3.2 %) (3.2 %)
18 month comparable net sales:
Company-Owned 3.2 % (0.9 %)
Franchise-Operated (4.8 %) (5.1 %)
Total number of restaurants:
Company-Owned 45 41
Franchise-Operated 123 104
Total 168 145
(1) Provides further delineation of AWS for restaurants opened during the pre-fiscal 2005, and restaurants opened during the post-fiscal 2005, timeframes.
Statements in this press release that are not strictly historical, including but not limited to statements regarding the timing of our restaurant openings and the timing or success of our expansion 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 Famous Dave's of America, Inc. 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 Famous Dave's expectation include 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.
Famous Dave's of America, Inc.
Diana G. Purcel, 952-294-1300
Chief Financial Officer
Famous Dave's Reports First Quarter Results
Famous Dave's of America, Inc. (NASDAQ: DAVE) today announced revenue and net income of $33.7 million and $835,000, respectively, or $0.09 per diluted share, for its fiscal first quarter ended March 30, 2008. Revenue for the quarter increased 16.2 percent over the comparable period in 2007.
Same store sales for the company-owned restaurants open for 24 months or more increased 3.6 percent during the quarter, while same store sales for its franchise-operated restaurants declined 3.2 percent. Same store sales for the company-owned restaurants open for 18 months or more increased 3.2 percent during the quarter, while same store sales for its franchise-operated restaurants declined 4.8 percent. Franchise royalty revenue for the quarter totaled $4.2 million, up 14.2 percent over the comparable period in 2007.
Sales growth in the first quarter for company-owned restaurants was driven by the five new restaurants that have opened since the first quarter of 2007, and the impact from an approximate 3% weighted average price increase. The year-over-year shift in the Easter holiday from the second quarter of 2007 to the first quarter of 2008 had an approximate 1.0% negative impact on comparable sales.
Sales at comparable franchise-operated restaurants continue to be affected by adverse economic conditions in several areas of the country, which have been hard-hit by the effects of the credit and housing crisis.
“I’ve admired this brand for some time and I am excited to be part of its future growth,” said Wilson Craft, newly appointed President and Chief Executive Officer. “Obviously, we have some challenges, particularly given the difficult environment for casual dining. An intensified focus on our franchise business and a renewed focus on the company-owned restaurants will be a top priority,” Craft said.
Earnings for the first quarter on a year-over-year basis declined, reflecting the opening of five new company-owned restaurants since September 2007 which are still normalizing labor and operating costs. The company also experienced significantly below average temperatures in many of its core markets during the first quarter of 2008. This unseasonably cold weather resulted in increased labor costs due to unexpected declines in guest traffic, and negatively impacted operating costs due to higher utility costs.
The company's 2008 first quarter also reflected the following:
An increase in labor and benefits expense year-over-year reflecting a prior year worker’s compensation insurance credit adjustment that was approximately $105,000 higher than the current year adjustment.
An increase in operating expenses due to increased levels of advertising year-over-year.
Pre-opening expenses primarily for a new company-owned restaurant in Alexandria, Virginia totaling approximately $254,000.
Bad debt reserves of approximately $234,000 related to franchisees’ receivable balances, reflected in general and administrative expenses.
Executive search fees of approximately $200,000 related to the hiring of the company’s new CEO, reflected in general and administrative expenses.
An increase in depreciation and amortization year-over-year, reflecting capital invested towards the opening of five new restaurants and the result of the fourth quarter fiscal 2007 reclassification of assets previously held for sale to assets held and used.
A year-over-year increase in interest expense reflecting a higher average balance on the company’s revolver.
Earnings results for the first quarter of 2008 included approximately $280,000 or $0.02 per diluted share, in compensation expense as related to the company’s stock-based incentive programs, as compared to approximately $536,000, or $0.03 per diluted share, for the prior year comparable period.
Development and marketing highlights during the quarter included a "limited time offer" of BBQ shrimp, the company’s most successful promotion to date. Aiding traffic in the quarter was a successful television and radio campaign featured in the majority of its core markets.
Famous Dave’s opened four new restaurants during the first quarter: A company-owned restaurant in Alexandria, VA, and three franchise-operated restaurants in Silverdale, WA, Kansas City, MO and Bakersfield, CA.
Famous Dave's ended the quarter with 168 restaurants, including 45 company-owned restaurants and 123 franchise-operated restaurants, located in 35 states.
During the first quarter of 2008, Famous Dave's repurchased 16,000 shares of common stock at an average price of $9.73 per share, excluding commissions.
Outlook
Famous Dave's is reiterating its guidance issued in its fourth quarter earnings release. The company anticipates opening a total of 20 to 25 restaurants in 2008, with up to five locations to open in the second quarter.
In addition, the company reiterated its outlook on food costs and potential margin pressure during the first half of the year. In June, the company will be taking an additional price increase, intended to mitigate additional margin pressures for the remainder of 2008.
Conference Call
The company will host a conference call tomorrow, April 24, 2008, at 10:00 a.m. Central Time to discuss its first quarter financial results. There will be a live webcast of the discussion through the Investor Relations section of Famous Dave's web site at www.famousdaves.com.
About Famous Dave’s
Famous Dave’s of America, Inc. develops, owns, operates and franchises barbeque restaurants. As of today, the company owns 45 locations and franchises 124 additional units in 34 states and has signed development agreements for an additional 132 franchised locations. Its menu features award-winning barbequed and grilled meats, an ample selection of salads, side items and sandwiches, and unique desserts.
FAMOUS DAVE'S OF AMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
Three Months Ended
March 30, April 1,
2008 2007
(unaudited) (unaudited)
Revenue:
Restaurant sales, net $ 29,247 $ 24,941
Franchise royalty revenue 4,167 3,649
Franchise fee revenue 115 315
Licensing and other revenue 186 98
Total revenue 33,715 29,003
Costs and expenses:
Food and beverage costs 8,939 7,611
Labor and benefits costs 9,182 7,480
Operating expenses 7,493 6,193
Depreciation and amortization 1,461 1,155
General and administrative expenses 4,653 4,123
Pre-opening expenses 254 6
(Gain) loss on disposal of property (6) 18
Total costs and expenses 31,976 26,586
Income from operations 1,739 2,417
Other expense:
Loss on early extinguishment of debt --- (12)
Interest expense (511) (363)
Interest income 58 76
Other (expense) income, net (1) 4
Total other expense (454) (295)
Income before income taxes 1,285 2,122
Income tax expense (450) (720)
Net income $ 835 $ 1,402
Basic net income per common share $ 0.09 $ 0.14
Diluted net income per common share $ 0.09 $ 0.13
Weighted average common shares outstanding – basic 9,611,000 10,130,000
Weighted average common shares outstanding – diluted 9,773,000 10,492,000
FAMOUS DAVE'S OF AMERICA, INC. AND SUBSIDIARIES
OPERATING RESULTS
(unaudited)
Three Months Ended
March 30,
April 1,
2008 2007
Food and beverage costs (1) 30.6 % 30.5 %
Labor and benefits (1) 31.4 % 30.0 %
Operating expenses (1) 25.6 % 24.8 %
Depreciation & amortization (restaurant level) (1) 4.6 % 4.1 %
Depreciation & amortization (corporate level) (2) 0.3 % 0.4 %
General and administrative (2) 13.8 % 14.2 %
Pre-opening expenses & net (gain) loss on disposal(1) 0.9 % 0.1 %
Total restaurant costs and expenses (1) 93.1 % 89.5 %
Income from operations (2) 5.2 % 8.3 %
(1) As a percentage of restaurant sales, net
(2) As a percentage of total revenue
FAMOUS DAVE'S OF AMERICA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
March 30, December 30,
2008 2007
(unaudited)
(unaudited)
ASSETS
Current assets $ 12,410 $ 14,255
Property, equipment and leasehold improvements, net 57,521 57,243
Other assets 2,441 2,444
Total assets $ 72,372 $ 73,942
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities $ 25,705 $ 28,085
Long-term obligations 15,484 15,457
Shareholders’ equity 31,183 30,400
Total liabilities and shareholders’ equity $ 72,372 $ 73,942
SUPPLEMENTAL SALES INFORMATION
(unaudited)
Three Months Ended
March 30,
April 1,
2008 2007
Total weighted average weekly net sales (AWS):
Company-Owned $ 50,512 $ 46,794
Franchise-Operated $ 55,684 $ 56,018
AWS 2005 and Post 2005: (1)
Company-Owned $ 68,065 $ 69,192
Franchise-Operated $ 63,297 $ 66,315
AWS Pre-2005: (1)
Company-Owned $ 46,349 $ 44,373
Franchise-Operated $ 47,012 $ 47,847
Operating weeks:
Company-Owned 579 533
Franchise-Operated 1,538 1,326
24 month comparable net sales:
Company-Owned 3.6 % (0.9 %)
Franchise-Operated (3.2 %) (3.2 %)
18 month comparable net sales:
Company-Owned 3.2 % (0.9 %)
Franchise-Operated (4.8 %) (5.1 %)
Total number of restaurants:
Company-Owned 45 41
Franchise-Operated 123 104
Total 168 145
(1) Provides further delineation of AWS for restaurants opened during the pre-fiscal 2005, and restaurants opened during the post-fiscal 2005, timeframes.
Statements in this press release that are not strictly historical, including but not limited to statements regarding the timing of our restaurant openings and the timing or success of our expansion 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 Famous Dave's of America, Inc. 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 Famous Dave's expectation include 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.
Famous Dave's of America, Inc.
Diana G. Purcel, 952-294-1300
Chief Financial Officer
Is it time to give up the search for an Aids vaccine?
After 25 years and billions of pounds, leading scientists are now forced to ask this question
By Steve Connor and Chris Green
Thursday, 24 April 2008
Most scientists involved in Aids research believe that a vaccine against HIV is further away than ever and some have admitted that effective immunisation against the virus may never be possible, according to an unprecedented poll conducted by The Independent.
A mood of deep pessimism has spread among the international community of Aids scientists after the failure of a trial of a promising vaccine at the end of last year. It just was the latest in a series of setbacks in the 25-year struggle to develop an HIV vaccine.
The Independent's survey of more than 35 leading Aids scientists in Britain and the United States found that just two were now more optimistic about the prospects for an HIV vaccine than they were a year ago; only four said they were more optimistic now than they were five years ago.
Nearly two thirds believed that an HIV vaccine will not be developed within the next 10 years and some of them said that it may take at least 20 more years of research before a vaccine can be used to protect people either from infection or the onset of Aids.
A substantial minority of the scientists admitted that an HIV vaccine may never be developed, and even those who believe that one could appear within the next 10 years added caveats saying that such a vaccine would be unlikely to work as a truly effective prophylactic against infection by the virus.
One of the major conclusions to emerge from the failed clinical trial of the most promising prototype vaccine, manufactured by the drug company Merck, was that an important animal model used for more than a decade, testing HIV vaccines on monkeys before they are used on humans, does not in fact work.
This has meant that prototype HIV vaccines which appear to work well when tested on monkeys infected with an artificial virus do not work when tested on human volunteers at risk of HIV – a finding that will be exploited by anti-vivisectionist campaigners opposed to vaccine experiments on primates.
Anthony Fauci, the director of the US National Institute of Allergy and Infectious Diseases (NIAID), near Washington, told The Independent that the animal model – which uses genetically engineered simian and human immunodeficiency viruses in a combination, known as SHIV – failed to predict what will happen when a prototype vaccine is moved from laboratory monkeys to people. "We've learnt a few important things [from the clinical trial]. We've learnt that one of the animal models, the SHIV model, really doesn't predict very well at all," he said.
"At least we now know that you can get a situation where it looks like you are protecting against SHIV and you're not protecting at all in the human model – that's important," he said.
The NIAID spends about $500m (£250m) on HIV vaccine research each year and despite calls from some Aids pressure groups for funds to be diverted to other forms of Aids prevention, Dr Fauci said this was not the time to stop vaccine research. "I don't think you should say that this is the point where we're going to give up on developing a vaccine. I think you continue given that there are so many unanswered questions to answer," he said. "There is an impression given by some that if you do vaccine research you are neglecting other areas of prevention. That's not the case. We should and we are doing them simultaneously."
More than 80 per cent of the scientists who took part in our survey agreed that it was now important to change the direction of HIV vaccine research, given the failure of the Merck clinical trial, which was cancelled when it emerged that the vaccine may have actually increased the chances of people developing Aids.
Robert Gallo, a prominent Aids researcher in the US who is credited with co-discovering the virus in the early 1980s, likened the vaccine's failure to the Challenger disaster, which forced Nasa to ground the space shuttle fleet for years.
At the end of last month, Dr Fauci convened a high-level summit of leading HIV specialists at a hotel in Bethesda, Maryland, to discuss the future direction of research. A group of 14 prominent Aids specialists had already written to Dr Fauci suggesting that his institute had "lost its way" in terms of an HIV vaccine.
He said that one outcome of the meeting was a refocusing of the vaccine effort away from expensive clinical trials towards more fundamental research to understand the basic biology of the virus and its effects on the human immune system.
"We'll be turning the knob more towards answering some fundamental questions rather than going into big clinical trials," Dr Fauci said. "I'm certainly disappointed that we're not further ahead in the development of a vaccine but I don't say that this year I'm more discouraged than I was last year. I always knew from the beginning that it would be a very difficult task given what we know about this very elusive virus."
About 33 million people in the world are infected with HIV and some 26 million have died of Aids since the pandemic began.
The majority of scientists who responded to The Independent's survey said that a vaccine would be the most effective way of preventing the spread of the virus given the failure of many education programmes.
Winnie Sseruma, 46: 'For me, the key has been not to give up'
Ms Sseruma says she believes abandoning research for a vaccine would mean a loss of hope for millions of people. "When I was diagnosed, nearly 20 years ago, it was when the first drugs had come on the market. A lot of people had said before then that there was no hope and that all efforts should be put into prevention. But look where we are now. We cannot lose hope; we need to invest in a vaccine."
She says this latest failure needs to be seen as the first hurdle, not a signal to give up. "Yes, the scientists have not been very successful in their quest for a vaccine, but you can learn a lot from failures. Now they have realised they cannot use the normal routes used to develope simpler vaccines."
Ms Sseruma lives in London, but was born in Uganda and says that the current climate of pessimism for the vaccine is not dissimilar to the initial doubts over the likelihood of treating HIV in Africa.
"I remember when treatment started being available in the West and people were saying it would be impossible to send it to Africa. But look what's happened. We should always do whatever is humanly possible to fight Aids. It's been a long journey, but for me, the key has been not to give up, and the scientists need to have the same attitude."
'Philippe B', 42: 'People are getting resistant to drugs'
"Philippe", who wishes to remain anonymous, discovered he was HIV positive 11 years ago. The 42-year-old believes the search for the vaccination should no longer be a priority, but that it should not stop altogether.
"Unfortunately what's happening now is that people are getting more resistant to drug treatment, and more money needs to be put into finding more drugs for treatment," he said.
For people like Philippe, the fear of building an immunity to drugs and running out of options is a real one. He believes that as long as scientists are still pessimistic about the chances of successfully finding a vaccine, money needs to be invested in continuing to fund research into treatment.
"I've already become resistant to five combination treatments over the last ten years, and if I was on the last one available I'd be very afraid. HIV is not a death sentence in the way it once was, but we do need to fund further research into the drugs that treat it."
Nevertheless, Philippe thinks it is not yet time to abandon all research into a vaccine. "In my lifetime I don't think we'll have a vaccine, but there's no reason we should believe it isn't possible," he said. "But we should now be spending more on other ways of dealing with the disease."
Law Offices of Howard G. Smith Announces 21 Days Remaining to Move to be a Lead Plaintiff in the Shareholder Lawsuit Against Darden Restaurants Inc.
BENSALEM, Pa., April 21 /PRNewswire/ -- Law Offices of Howard G. Smith announces a May 12, 2008, deadline to move to be a lead plaintiff in the securities class action lawsuit filed on behalf of all purchasers of the common stock of Darden Restaurants Inc. ('Darden Restaurants')(NYSE: DRI) between June 19, 2007, and December 18, 2007, inclusive (the 'Class Period'). The shareholder lawsuit is pending in the United States District Court for the Middle District of Florida.
The Complaint alleges that the defendants violated federal securities laws by issuing material misrepresentations to the market concerning Darden Restaurants' business, financial performance and prospects, thereby artificially inflating the price of Darden Restaurants stock.
No class has yet been certified in the above action. Until a class is certified, you are not represented by counsel unless you retain one. If you purchased Darden Restaurants common stock between June 19, 2007, and December 18, 2007, you have certain rights, and have until May 12, 2008, to move for Lead Plaintiff status. To be a member of the class you need not take any action at this time, and you may retain counsel of your choice. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215)638-4847, Toll-Free at (888)638-4847, by email to howardsmithlaw@hotmail.com or visit our website at http://www.howardsmithlaw.com.
SOURCE Law Offices of Howard G. Smith
Source: PR Newswire (April 21, 2008 - 3:17 PM EDT)
Law Offices of Howard G. Smith Announces 21 Days Remaining to Move to be a Lead Plaintiff in the Shareholder Lawsuit Against Darden Restaurants Inc.
BENSALEM, Pa., April 21 /PRNewswire/ -- Law Offices of Howard G. Smith announces a May 12, 2008, deadline to move to be a lead plaintiff in the securities class action lawsuit filed on behalf of all purchasers of the common stock of Darden Restaurants Inc. ('Darden Restaurants')(NYSE: DRI) between June 19, 2007, and December 18, 2007, inclusive (the 'Class Period'). The shareholder lawsuit is pending in the United States District Court for the Middle District of Florida.
The Complaint alleges that the defendants violated federal securities laws by issuing material misrepresentations to the market concerning Darden Restaurants' business, financial performance and prospects, thereby artificially inflating the price of Darden Restaurants stock.
No class has yet been certified in the above action. Until a class is certified, you are not represented by counsel unless you retain one. If you purchased Darden Restaurants common stock between June 19, 2007, and December 18, 2007, you have certain rights, and have until May 12, 2008, to move for Lead Plaintiff status. To be a member of the class you need not take any action at this time, and you may retain counsel of your choice. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215)638-4847, Toll-Free at (888)638-4847, by email to howardsmithlaw@hotmail.com or visit our website at http://www.howardsmithlaw.com.
SOURCE Law Offices of Howard G. Smith
Source: PR Newswire (April 21, 2008 - 3:17 PM EDT)
The Cheesecake Factory Announces Corporate Governance Enhancements
The Cheesecake Factory Incorporated (NASDAQ:CAKE), continuing in its commitment to strong corporate governance standards, today announced that its Board of Directors has unanimously adopted enhancements to the Company’s corporate governance policies. These enhancements include:
The adoption of amendments to the Company’s Bylaws to implement a majority voting policy for the election of directors. The amendments require that in order to be considered for nomination by the Board of Directors, a person must agree to submit an irrevocable resignation to the Board if he or she fails to receive a majority vote. The resignation will be contingent upon acceptance by the Board of Directors. The Company anticipates that these amendments will be effective for its 2009 Annual Meeting of Stockholders;
The adoption of a policy requiring the Company’s executive officers to agree to repay, to the extent deemed appropriate by the Audit Committee, that portion of any bonus based directly on financial statements filed with the SEC that are subsequently required to be restated as a result of material noncompliance with applicable financial reporting requirements. The Company expects to implement this policy in the current fiscal year; and
The adoption of amendments to the Company’s Bylaws and the submission to the Company’s stockholders of a proposal to amend the Company’s classified board structure. If this proposal is approved by stockholders, the Company intends for all directors to stand for election to one-year terms beginning at the 2011 Annual Meeting of Stockholders.
“We are pleased to implement these enhancements, which are consistent with best practices in corporate governance today, and serve the interests of our stockholders,” said David Overton, Chairman and CEO.
About The Cheesecake Factory Incorporated
The Cheesecake Factory Incorporated created the upscale casual dining segment in 1978 with the introduction of its namesake concept and continues to define it today with the two highest productivity concepts in the industry. The Company operates 139 restaurants throughout the U.S. under The Cheesecake Factory® name with an extensive menu of more than 200 items and fiscal 2007 average annual unit sales of approximately $10.4 million. Grand Lux Cafe®, the Company’s second concept, has 13 units in operation across the U.S. offering a broad menu of more than 150 items and average annual unit sales of approximately $12.7 million in fiscal 2007. The Company also operates two bakery production facilities in Calabasas Hills, CA and Rocky Mount, NC that produce over 60 varieties of quality cheesecakes and other baked products. Additionally, the Company operates one self-service, limited menu express foodservice operation and licenses two bakery cafe outlets to another foodservice operator under The Cheesecake Factory Bakery Cafe® mark. For more information, please visit thecheesecakefactory.com.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Investors are cautioned that forward-looking statements are not guarantees of future performance and that undue reliance should not be placed on these statements. Forward-looking statements speak only as of the dates on which they were made. Except as may be required by law, the Company undertakes no obligation to update publicly or revise any forward-looking statements or to make any other forward-looking statements, whether as a result of new information, future events or otherwise unless required to do so by the securities laws. Investors are referred to the full discussion of risks and uncertainties associated with forward-looking statements contained in the Company’s filings with the Securities and Exchange Commission.
Important Information
In connection with the solicitation of proxies, the Company filed with the Securities and Exchange Commission (the "SEC") and mailed to stockholders a definitive proxy statement dated April 21, 2008. The Proxy Statement contains important information about the Company and the 2008 Annual Stockholders meeting. The Company’s stockholders are urged to read the Proxy Statement carefully. Stockholders may obtain additional free copies of the Proxy Statement and other relevant documents filed with the SEC by the Company through the website maintained by the SEC at www.sec.gov. The Proxy Statement and other relevant documents may also be obtained free of charge from Company by contacting Investor Relations in writing at 26901 Malibu Hills Road, Calabasas Hills, California 91301. The Proxy Statement is also available on the Company’s website at www.thecheesecakefactory.com. The contents of the website are not deemed to be incorporated by reference into the Proxy Statement.
The Cheesecake Factory
Jill Peters, (818) 871-3000
Source: Business Wire (April 21, 2008 - 4:25 PM EDT)
The Cheesecake Factory Announces Corporate Governance Enhancements
The Cheesecake Factory Incorporated (NASDAQ:CAKE), continuing in its commitment to strong corporate governance standards, today announced that its Board of Directors has unanimously adopted enhancements to the Company’s corporate governance policies. These enhancements include:
The adoption of amendments to the Company’s Bylaws to implement a majority voting policy for the election of directors. The amendments require that in order to be considered for nomination by the Board of Directors, a person must agree to submit an irrevocable resignation to the Board if he or she fails to receive a majority vote. The resignation will be contingent upon acceptance by the Board of Directors. The Company anticipates that these amendments will be effective for its 2009 Annual Meeting of Stockholders;
The adoption of a policy requiring the Company’s executive officers to agree to repay, to the extent deemed appropriate by the Audit Committee, that portion of any bonus based directly on financial statements filed with the SEC that are subsequently required to be restated as a result of material noncompliance with applicable financial reporting requirements. The Company expects to implement this policy in the current fiscal year; and
The adoption of amendments to the Company’s Bylaws and the submission to the Company’s stockholders of a proposal to amend the Company’s classified board structure. If this proposal is approved by stockholders, the Company intends for all directors to stand for election to one-year terms beginning at the 2011 Annual Meeting of Stockholders.
“We are pleased to implement these enhancements, which are consistent with best practices in corporate governance today, and serve the interests of our stockholders,” said David Overton, Chairman and CEO.
About The Cheesecake Factory Incorporated
The Cheesecake Factory Incorporated created the upscale casual dining segment in 1978 with the introduction of its namesake concept and continues to define it today with the two highest productivity concepts in the industry. The Company operates 139 restaurants throughout the U.S. under The Cheesecake Factory® name with an extensive menu of more than 200 items and fiscal 2007 average annual unit sales of approximately $10.4 million. Grand Lux Cafe®, the Company’s second concept, has 13 units in operation across the U.S. offering a broad menu of more than 150 items and average annual unit sales of approximately $12.7 million in fiscal 2007. The Company also operates two bakery production facilities in Calabasas Hills, CA and Rocky Mount, NC that produce over 60 varieties of quality cheesecakes and other baked products. Additionally, the Company operates one self-service, limited menu express foodservice operation and licenses two bakery cafe outlets to another foodservice operator under The Cheesecake Factory Bakery Cafe® mark. For more information, please visit thecheesecakefactory.com.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Investors are cautioned that forward-looking statements are not guarantees of future performance and that undue reliance should not be placed on these statements. Forward-looking statements speak only as of the dates on which they were made. Except as may be required by law, the Company undertakes no obligation to update publicly or revise any forward-looking statements or to make any other forward-looking statements, whether as a result of new information, future events or otherwise unless required to do so by the securities laws. Investors are referred to the full discussion of risks and uncertainties associated with forward-looking statements contained in the Company’s filings with the Securities and Exchange Commission.
Important Information
In connection with the solicitation of proxies, the Company filed with the Securities and Exchange Commission (the "SEC") and mailed to stockholders a definitive proxy statement dated April 21, 2008. The Proxy Statement contains important information about the Company and the 2008 Annual Stockholders meeting. The Company’s stockholders are urged to read the Proxy Statement carefully. Stockholders may obtain additional free copies of the Proxy Statement and other relevant documents filed with the SEC by the Company through the website maintained by the SEC at www.sec.gov. The Proxy Statement and other relevant documents may also be obtained free of charge from Company by contacting Investor Relations in writing at 26901 Malibu Hills Road, Calabasas Hills, California 91301. The Proxy Statement is also available on the Company’s website at www.thecheesecakefactory.com. The contents of the website are not deemed to be incorporated by reference into the Proxy Statement.
The Cheesecake Factory
Jill Peters, (818) 871-3000
Source: Business Wire (April 21, 2008 - 4:25 PM EDT)
Did anyone call the TA today?
Hit it...
As of the close of business on Friday the structure is:
Outstanding: 246,771,717
Restricted: 149,298,200
Float: 97,473,517
Authorized: 450,000,000
Jocelyn Warczak
Account Manager
Fidelity Transfer Company
8915 South 700 East, Suite 102
Sandy, UT 84070
Ph: (801) 562-1300
Fax: (801) 233-0589
jocelyn@fidelitytransfer.com
www.fidelitytransfer.com
Krispy Kreme Announces Results for the Fourth Quarter and Fiscal Year Ended February 3, 2008
WINSTON-SALEM, N.C., April 17 /PRNewswire-FirstCall/ -- Krispy Kreme Doughnuts, Inc. (NYSE: KKD) today reported financial results for the fourth quarter and fiscal year ended February 3, 2008 ('fiscal 2008'), and filed with the Securities and Exchange Commission its Annual Report on Form 10-K. The Annual Report is available at www.sec.gov.
The Company's fiscal year ends on the Sunday closest to January 31, which periodically results in a 53-week year. The fourth quarter and fiscal year ended February 3, 2008 contained 14 weeks and 53 weeks, respectively, compared to the fourth quarter and fiscal year ended January 28, 2007, which contained 13 weeks and 52 weeks, respectively.
Fourth quarter systemwide sales (excluding the 14th week in the fourth quarter of fiscal 2008) increased 2.3% from the fourth quarter of last year. The growth in systemwide sales in the quarter was entirely attributable to growth in sales by international franchisees; the domestic component of systemwide sales fell in the fourth quarter compared to the fourth quarter last year, principally due to store closures. For the year, systemwide sales (measured on a 52-week basis) decreased 0.9% compared to fiscal 2007.
During the fourth quarter of fiscal 2008, 32 new Krispy Kreme stores, comprised of 13 factory stores and 19 satellites, were opened systemwide, and 6 stores, comprised of 5 factory stores and 1 satellite, were closed systemwide. This brings the total number of stores systemwide at the end of fiscal 2008 to 449, consisting of 295 factory stores and 154 satellites. Approximately 75% of these stores are operated by franchisees, and almost half are located outside the United States.
Revenues for the fourth quarter decreased to $110.9 million from $112.2 million in the fourth quarter last year. Excluding revenues for the 14th week, revenues for the fourth quarter of fiscal 2008 decreased 8.2% to $102.9 million. The decline in revenues reflects an 11.1% decrease in Company Stores revenues to $70.4 million and a 5.2% decrease in KK Supply Chain revenues to $25.8 million, partially offset by a 17.0% increase in Franchise revenues to $6.7 million.
The net loss for the fourth quarter was $31.8 million, or $0.50 per share, compared to a net loss of $24.4 million, or $0.39 per share, in the fourth quarter last year. The fourth quarters of fiscal 2008 and 2007 reflect impairment charges and lease termination costs of approximately $27.6 million ($0.43 per share) and $6.0 million ($0.10 per share), respectively, most of which are non-cash and relate to the Company Stores segment. In addition, results for the fourth quarter of fiscal 2008 include a charge of $3.0 million for estimated payments under the Company's guarantees of a portion of certain debt and leases of a franchisee in which it owns an interest. Results for the fourth quarter last year reflect charges of approximately $17.3 million (almost all of which were non-cash) related to the settlement of litigation.
For fiscal 2008, revenues decreased to $429.3 million from $461.2 million in fiscal 2007. Excluding revenues for the 53rd week, revenues for fiscal 2008 decreased 8.6% to $421.3 million. The decline in revenues reflects an 8.4% decrease in Company Stores revenues to $298.9 million and a 12.3% decrease in KK Supply Chain revenues $99.9 million, partially offset by a 6.8% increase in Franchise revenues to $22.5 million.
The net loss for fiscal 2008 was $67.1 million, or $1.05 per share, compared with a net loss of $42.2 million, or $0.68 per share, in fiscal 2007. Impairment charges and lease termination costs were $62.1 million ($0.97 per share) and $12.5 million ($0.20 per share) in fiscal 2008 and 2007, respectively. Of the total charges and costs in fiscal 2008 and 2007, most of which were non-cash, $56.0 and $9.4 million, respectively, relate to the long-lived assets and $4.6 million and $1.1 million, respectively, relate to goodwill, in each case associated principally with the Company Stores segment. In addition, fiscal 2008 results reflect an impairment charge of approximately $10.4 million related to the Company's manufacturing and distribution facility in Effingham, Illinois, which the Company divested during the year, a charge of $3.0 million for estimated payments under the Company's guarantees of a portion of certain debt and leases of a franchisee in which it owns an interest, and a charge of $9.6 million (of which $5.5 million was non-cash) resulting from the refinancing of indebtedness. Fiscal 2008 results include a non-cash credit of $14.9 million and fiscal 2007 results included a non-cash charge of $16.0 million related to changes in the value of common stock and warrants issued in March 2007 in connection with the settlement of litigation.
In addition to announcing financial results, the Company also announced that it had remediated all of the material weaknesses in its internal control over financial reporting identified as of January 28, 2007, and maintained effective internal control over financial reporting as of February 3, 2008.
As of February 3, 2008, the Company's consolidated balance sheet reflects cash and indebtedness of approximately $25 million and $77 million, respectively. During fiscal 2008, the Company prepaid approximately $32.8 million of the principal balance of the $110 million term loan entered into in February 2007. Subsequent to year end, the Company and its lenders executed amendments to the Company's secured credit facilities which, among other things, relax certain financial covenants contained therein. Those covenants previously were scheduled to become more stringent during fiscal 2009. The amendments also provide that the interest rate on the loans outstanding under the facilities will increase from LIBOR plus 3.50% to LIBOR plus 5.50%, with a minimum LIBOR rate of 3.25%, and fees on letters of credit outstanding under the facilities will increase from 3.75% to 5.75%. As of February 3, 2008, the outstanding loan balance was $76.1 million and outstanding letters of credit were $20.3 million. There were no amounts drawn under the revolving facility, which was reduced from $50 million to $30 million.
'Although it's clear from our fourth quarter and year-end results that we have more work to do in order to produce the financial results we believe are possible, there were some successes in fiscal 2008,' said Jim Morgan, Chairman, President and Chief Executive Officer. 'Our international expansion continues to be a source of exciting growth, we are seeing encouraging initial results from Company factory stores that have been converted to satellite hot shops as part of our hub and spoke strategy, and Krispy Kreme's entire menu now is zero grams trans fat per serving. In addition, we remediated all material weaknesses in our internal control over financial reporting.'
Morgan added, 'Beyond the challenges we still face, we believe there are a multitude of opportunities, and we are committed to providing corporate performance that is in keeping with the iconic brand we represent.'
Many factors could adversely affect the Company's business. In particular, the Company is vulnerable to further increases in the cost of raw materials, which could adversely affect the Company's operating results and cash flows. In addition, several franchisees have been experiencing financial pressures which, in certain instances, became more exacerbated during fiscal 2008. The Company has guaranteed certain obligations of franchisees in which it has an equity interest, and has recorded charges aggregating $3.4 million in fiscal 2007 and 2008 for estimated payments under such guarantees; these guarantees could result in additional charges in future periods. Franchisees opened 88 stores and closed 26 stores in fiscal 2008. Franchisees have contractual commitments to open over 170 additional stores after fiscal 2008; however, the Company believes franchisees also will close additional stores in the future, and the number of such closures may be significant. Royalty revenues and most of KK Supply Chain revenues are directly correlated to sales by franchise stores and, accordingly, franchise store closures have an adverse effect on the Company's revenues, results of operations and cash flows.
Systemwide sales, a non-GAAP financial measure, include sales by both Company and franchise stores. The Company believes systemwide sales data are useful in assessing the overall performance of the Krispy Kreme brand and, ultimately, the performance of the Company. The Company's consolidated financial statements include sales by Company stores, sales to franchisees by the KK Supply Chain business segment and royalties and fees received from franchisees, but exclude sales by franchise stores to their customers.
Krispy Kreme management will host a conference call to review fourth quarter and fiscal 2008 annual results on April 17, 2008 at 4:30 p.m. (ET). A live webcast of the conference call will be available at www.KrispyKreme.com/investorrelations.html and www.Streetevents.com. An archived audio replay will be available shortly following the conference call. To access the telephone replay dial 888-286-8010 and enter the passcode number 96358209. International callers may access the replay by dialing 617-801-6888 and entering passcode 96358209. The audio replay will be available through April 24, 2008. The conference call webcast will be archived and accessible for one month following the date of the conference call.
About Krispy Kreme
Krispy Kreme is a leading branded specialty retailer of premium quality sweet treats, including its signature hot Original Glazed(R) doughnut. Headquartered in Winston-Salem, NC, the company has offered the highest quality doughnuts and great tasting coffee since it was founded in 1937. Krispy Kreme is proud that for decades its Fundraising program has helped non-profit organizations raise millions of dollars in needed funds. Today, Krispy Kreme and its one-of-a-kind Hot Light can be found in approximately 449 locations around the world. Visit us at www.KrispyKreme.com.
Information contained in this press release, other than historical information, should be considered forward-looking. Forward-looking statements are subject to various risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or expected. Among the key factors that may have a direct bearing on Krispy Kreme's operating results, performance or financial condition are the outcome of pending governmental investigations, including by the Securities and Exchange Commission (the 'SEC') and the United States Attorney's Office for the Southern District of New York; potential indemnification obligations and limitations of our director and officer liability insurance; the quality of Company and franchise store operations; our ability, and our dependence on the ability of our franchisees, to execute on our and their business plans; our relationships with our franchisees; our ability to implement our international growth strategy; our ability to implement our new domestic operating model and refranchising strategy; currency, economic, political and other risks associated with our international operations; the price and availability of raw materials needed to produce doughnut mixes and other ingredients; compliance with government regulations relating to food products and franchising; our relationships with wholesale customers; our ability to protect our trademarks; risks associated with our high levels of indebtedness; restrictions on our operations and compliance with covenants contained in our secured credit facilities; changes in customer preferences and perceptions; significant changes in our management; risks associated with competition; and other factors discussed in Krispy Kreme's Annual Report on Form 10-K for fiscal 2008 and other periodic reports filed with the SEC.
KRISPY KREME DOUGHNUTS, INC.
CONSOLIDATED BALANCE SHEET
Feb. 3, Jan. 28,
2008 2007
(In thousands)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $24,735 $36,242
Receivables 22,991 26,769
Accounts and notes receivable - equity method
franchisees 2,637 834
Inventories 19,987 21,006
Insurance recovery receivable - 34,967
Deferred income taxes 83 -
Other current assets 5,647 12,000
Total current assets 76,080 131,818
Property and equipment 90,996 168,654
Investments in equity method franchisees 1,950 3,224
Goodwill and other intangible assets 23,856 28,934
Deferred income taxes - 20
Other assets 9,469 16,842
Total assets $202,351 $349,492
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt $1,557 1,730
Accounts payable 5,712 7,874
Accrued litigation settlement - 86,772
Deferred income taxes - 20
Other accrued liabilities 35,949 38,474
Total current liabilities 43,218 134,870
Long-term debt, less current maturities 75,156 105,966
Deferred income taxes 83 -
Other long-term obligations 27,270 29,694
Commitments and contingencies
SHAREHOLDERS' EQUITY:
Preferred stock, no par value; 10,000 shares
authorized; none issued and Outstanding - -
Common stock, no par value; 300,000 shares
authorized; 65,370 and 62,670 shares
issued and outstanding 355,615 310,942
Accumulated other comprehensive income 81 1,266
Accumulated deficit (299,072) (233,246)
Total shareholders' equity 56,624 78,962
Total liabilities and shareholders' equity $202,351 $349,492
KRISPY KREME DOUGHNUTS, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share amounts)
Three Months Ended Year Ended
Feb. 3, Jan. 28, Feb. 3, Jan. 28,
2008 2007 2008 2007
Revenues $110,948 $112,188 $429,319 $461,195
Operating expenses:
Direct operating
expenses (exclusive
of depreciation and
amortization
shown below) 96,775 99,054 380,014 389,379
General and
administrative
expenses 6,909 7,642 26,303 48,860
Depreciation and
amortization expense 4,791 4,932 18,433 21,046
Impairment charges and
lease termination
costs 27,569 5,959 62,073 12,519
Settlement of
litigation - 15,972 (14,930) 15,972
Other operating
(income) and expense,
net 86 1,921 13 1,916
Operating (loss) (25,182) (23,292) (42,587) (28,497)
Interest income 198 459 1,422 1,627
Interest expense (2,367) (4,969) (9,796) (20,334)
Loss on extinguishment
of debt - - (9,622) -
Equity in income (losses)
of equity method
franchisees (238) 82 (933) (842)
Other non-operating
income and (expense),
net (2,948) 3,734 (3,211) 7,021
(Loss) before income
taxes (30,537) (23,986) (64,727) (41,025)
Provision for income
taxes 1,278 430 2,324 1,211
Net (loss) $(31,815) $(24,416) $(67,051) $(42,236)
(Loss) per common share:
Basic $(.50) $(.39) $(1.05) $(.68)
Diluted $(.50) $(.39) $(1.05) $(.68)
Weighted average shares
outstanding 64,233 61,911 63,805 61,871
KRISPY KREME DOUGHNUTS, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
Year Ended
Feb. 3, Jan. 28,
2008 2007
(In thousands)
CASH FLOW FROM OPERATING ACTIVITIES:
Net (loss) $ (67,051) $(42,236)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Depreciation and amortization 18,433 21,046
Deferred income taxes 889 (12)
Impairment charges 61,041 10,762
Settlement of litigation (14,930) 15,972
Accrued rent expense (663) 1,029
Loss on disposal of property and equipment 64 1,786
Gain on sale of interests in equity
method franchisees (260) (7,308)
Share-based compensation 7,599 9,849
Provision for doubtful accounts 1,786 3,390
Amortization of deferred financing costs 6,041 2,925
Equity in losses of equity method franchisees 933 842
Other 991 407
Change in assets and liabilities:
Receivables 284 501
Inventories 1,058 2,558
Other current and non-current assets 2,105 6,850
Accounts payable and accrued liabilities (7,550) (9,054)
Other long-term obligations (1,058) 2,801
Net cash provided by operating activities 9,712 22,108
CASH FLOW FROM INVESTING ACTIVITIES:
Purchase of property and equipment (5,509) (4,005)
Proceeds from disposals of property and equipment 18,314 9,663
Investments in and advances to franchise investees - (818)
Recovery of investments in and advances to
franchise investee - 2,500
Sale of interests in equity method franchisee 300 9,591
Acquisition of stores from franchisee - (2,900)
Decrease in other assets 13 14
Net cash provided by investing activities 13,118 14,045
CASH FLOW FROM FINANCING ACTIVITIES:
Issuance of short-term debt - 2,984
Repayment of short-term debt - (3,038)
Proceeds from issuance of long-term debt 110,000 -
Repayment of long-term debt (141,733) (14,936)
Deferred financing costs (2,891) (427)
Proceeds from exercise of stock options 292 -
Net change in book overdraft - (60)
Other (93) -
Net cash used for financing activities (34,425) (15,477)
Effect of exchange rate changes on cash 88 (1)
Cash balances of subsidiaries at date
of deconsolidation - (1,413)
Net increase (decrease) in cash and
cash equivalents (11,507) 19,262
Cash and cash equivalents at beginning of year 36,242 16,980
Cash and cash equivalents at end of year $24,735 $36,242
Supplemental schedule of non-cash investing
and financing activities:
Assets acquired under capital leases $750 $-
KRISPY KREME DOUGHNUTS, INC.
SEGMENT INFORMATION
(Dollars in thousands)
Three Months Ended Year Ended
Feb. 3, Jan. 28, Feb. 3, Jan. 28,
2008 2007 2008 2007
Revenues:
Company Stores $75,940 $79,186 $304,444 $326,199
Franchise 7,185 5,756 22,958 21,075
KK Supply Chain:
Total revenues 52,868 52,382 203,283 219,991
Less- intersegment
sales elimination (25,045) (25,136) (101,366) (106,070)
External KK Supply
Chain revenues 27,823 27,246 101,917 113,921
Total revenues $110,948 $112,188 $429,319 $461,195
Operating income (loss):
Company Stores $895 $(2,158) $(6,292) $1,721
Franchise 4,320 3,788 14,317 16,354
KK Supply Chain 4,402 5,065 24,083 32,311
Unallocated general and
administrative
expenses (7,230) (8,056) (27,552) (50,392)
Impairment charges and
lease termination
costs (27,569) (5,959) (62,073) (12,519)
Settlement of litigation - (15,972) 14,930 (15,972)
Total operating
(loss) $(25,182) $(23,292) $(42,587) $(28,497)
Depreciation and
amortization expense:
Company Stores $2,540 $3,720 $11,558 $15,979
Franchise 22 24 92 119
KK Supply Chain 1,915 856 5,586 3,469
Corporate administration 314 332 1,197 1,479
Total depreciation and
amortization expense $4,791 $4,932 $18,433 $21,046
KRISPY KREME DOUGHNUTS, INC.
Store Count
NUMBER OF STORES
FACTORY SATELLITE TOTAL
Three months ended February 3, 2008:
OCTOBER 28, 2007 290 133 423
Opened 13 19 32
Closed (5) (1) (6)
Converted to satellites (3) 3 -
FEBRUARY 3, 2008 295 154 449
Year ended February 3, 2008:
JANUARY 28, 2007 296 99 395
Opened 33 56 89
Closed (27) (8) (35)
Converted to satellites (7) 7 -
FEBRUARY 3, 2008 295 154 449
KRISPY KREME DOUGHNUTS, INC.
SELECTED OPERATING STATISTICS(1)
(Dollars in thousands)
Three Months Ended Year Ended
Feb. 3, Jan. 28, Feb. 3, Jan. 28,
2008 2007 2008 2007
Year over year percentage
change in systemwide
sales (2) 2.3% (6.4)% (0.9)% (11.9)%
Average weekly sales per
factory store (3):
Company $54.3 $55.6 $54.7 $54.6
Systemwide $53.6 $50.7 $51.8 $49.6
Factory store operating
weeks (4):
Company 1,286 1,417 5,448 5,905
Systemwide 3,671 3,792 14,936 15,742
Average weekly sales
per store (5):
Company $51.9 $54.1 $53.0 $52.9
Systemwide $35.8 $39.5 $37.2 $39.5
Store operating weeks (6):
Company 1,347 1,456 5,626 6,092
Systemwide 5,487 4,869 20,797 19,767
On-premises sales (7):
Company change in same
store sales 1.6% 0.0%
Systemwide change in
same store sales (4.7)% (3.8)%
Company off-premises
sales (8):
Change in average weekly
number of doors 1.9% (1.1)%
Change in average weekly
sales per door (7.7)% (6.4)%
(1) The Company's fiscal year ends on the Sunday closest to January 31,
which periodically results in a 53-week year. Fiscal 2008 contained
53 weeks. To enhance comparability, amounts in the table set forth
above for selected operating statistics for fiscal 2008 have been
computed based upon the 52-week period ended January 27, 2008.
(2) Systemwide sales, a non-GAAP financial measure, include the sales by
both Company and franchise stores. The Company believes systemwide
sales data is useful in assessing the overall performance of the
Krispy Kreme brand and, ultimately, the performance of the Company.
(3) Represents, on a Company and systemwide basis, total sales of all
stores divided by the number of operating weeks for factory stores.
(4) Represents, on a Company and systemwide basis, the aggregate number of
operating weeks for factory stores.
(5) Represents, on a Company and systemwide basis, total sales of all
stores divided by the number of operating weeks for both factory and
satellite stores.
(6) Represents, on a Company and systemwide basis, the aggregate number of
operating weeks for both factory and satellite stores.
(7) The change in 'same store sales' represents, on a Company and
systemwide basis, the aggregate on-premises sales (including
fundraising sales) during the current year period for all stores which
had been open for more than 56 consecutive weeks during the current
year period (but only to the extent such sales occurred in the 57th or
later week of each store's operation) divided by the aggregate
on-premises sales of such stores for the comparable weeks in the
preceding year period. Once a store has been open for at least 57
consecutive weeks, its sales are included in the computation of same
stores sales for all subsequent periods. In the event a store is
closed temporarily (for example, for remodeling) and has no sales
during one or more weeks, such store's sales for the comparable weeks
during the earlier or subsequent period are excluded from the same
store sales computation.
(8) For Company off-premises sales, 'average weekly number of doors'
represents the average number of customer locations to which product
deliveries are made during a week by Company Stores, and 'average
weekly sales per door' represents the average weekly sales to each
such location by Company Stores.
SOURCE Krispy Kreme Doughnuts, Inc.
Source: PR Newswire (April 17, 2008 - 7:46 AM EDT)
Matt - First off let me tell you I don't know "Jack" about inflatable boats.... My reason for responding is I just wanted you to know how refreshing it is to hear someone ask an honest question on one of these boards. Most people are posting pictures claiming how rich they are showing pictures of cars they don't really drive and homes they couldn't afford and always telling everyone how rich they are. We all know they are full of shit and never give them a second thought but you my friend are a true player and at this point I wish I actually possessed the knowledge you are seeking so I could make you day go a little smoother....I guess what I'm really trying to say is 'this Buds for you my Man'......
I forgot to ask if this was end of day in my email so take it for what it's worth....My bad!
Outstanding: 246,771,717
Restricted: 149,298,700
Float: 97,473,517
Authorized: 450,000,000
Jocelyn Warczak
Account Manager
Fidelity Transfer Company
8915 South 700 East, Suite 102
Sandy, UT 84070
Ph: (801) 562-1300
Fax: (801) 233-0589
jocelyn@fidelitytransfer.com
www.fidelitytransfer.com
I sent an email a couple hours ago...
Now your talking....Not sure as they have got off to a rocky start...
I'm all about the fun...
When do you think that will happen?
Doing well thanks....How you living?
Yep...Play the pump when the promoters get on it.
The Cheesecake Factory to Webcast First Quarter Fiscal 2008 Earnings Conference Call on April 24, 2008
The Cheesecake Factory Incorporated (NASDAQ: CAKE) today announced it will release first quarter fiscal 2008 financial results after the market close on Thursday, April 24, 2008. The Company will hold a conference call the same day, hosted by David Overton, Chairman and CEO, and Michael Dixon, Senior Vice President and CFO, at 2:00 p.m. Pacific Time, which will be broadcast live over the Internet.
To listen to the conference call, please go to the Company’s website at thecheesecakefactory.com at least 15 minutes prior to the call to register and download any necessary audio software. Click on the “Investors” link on the home page, and select the link for the “Q1 2008 The Cheesecake Factory Earnings Conference Call” at the top of the page. An archive of the webcast will be available shortly after the call and continue through May 23, 2008.
About The Cheesecake Factory Incorporated
The Cheesecake Factory Incorporated created the upscale casual dining segment in 1978 with the introduction of its namesake concept and continues to define it today with the two highest productivity concepts in the industry. The Company operates 139 restaurants throughout the U.S. under The Cheesecake Factory® name with an extensive menu of more than 200 items and fiscal 2007 average annual unit sales of approximately $10.4 million. Grand Lux Cafe®, the Company’s second concept, has 13 units in operation across the U.S. offering a broad menu of more than 150 items and average annual unit sales of approximately $12.7 million in fiscal 2007. The Company also operates two bakery production facilities in Calabasas Hills, CA and Rocky Mount, NC that produce over 60 varieties of quality cheesecakes and other baked products. Additionally, the Company operates one self-service, limited menu express foodservice operation and licenses two bakery cafe outlets to another foodservice operator. For more information, please visit thecheesecakefactory.com.
The Cheesecake Factory Incorporated
Jill Peters, 818-871-3000
Source: Business Wire (April 17, 2008 - 4:17 PM EDT)
The Cheesecake Factory to Webcast First Quarter Fiscal 2008 Earnings Conference Call on April 24, 2008
The Cheesecake Factory Incorporated (NASDAQ: CAKE) today announced it will release first quarter fiscal 2008 financial results after the market close on Thursday, April 24, 2008. The Company will hold a conference call the same day, hosted by David Overton, Chairman and CEO, and Michael Dixon, Senior Vice President and CFO, at 2:00 p.m. Pacific Time, which will be broadcast live over the Internet.
To listen to the conference call, please go to the Company’s website at thecheesecakefactory.com at least 15 minutes prior to the call to register and download any necessary audio software. Click on the “Investors” link on the home page, and select the link for the “Q1 2008 The Cheesecake Factory Earnings Conference Call” at the top of the page. An archive of the webcast will be available shortly after the call and continue through May 23, 2008.
About The Cheesecake Factory Incorporated
The Cheesecake Factory Incorporated created the upscale casual dining segment in 1978 with the introduction of its namesake concept and continues to define it today with the two highest productivity concepts in the industry. The Company operates 139 restaurants throughout the U.S. under The Cheesecake Factory® name with an extensive menu of more than 200 items and fiscal 2007 average annual unit sales of approximately $10.4 million. Grand Lux Cafe®, the Company’s second concept, has 13 units in operation across the U.S. offering a broad menu of more than 150 items and average annual unit sales of approximately $12.7 million in fiscal 2007. The Company also operates two bakery production facilities in Calabasas Hills, CA and Rocky Mount, NC that produce over 60 varieties of quality cheesecakes and other baked products. Additionally, the Company operates one self-service, limited menu express foodservice operation and licenses two bakery cafe outlets to another foodservice operator. For more information, please visit thecheesecakefactory.com.
The Cheesecake Factory Incorporated
Jill Peters, 818-871-3000
Source: Business Wire (April 17, 2008 - 4:17 PM EDT)
Famous Dave's Closes on New $30.0 Million Credit Facility
Famous Dave's of America, Inc. (Nasdaq: DAVE) today announced that it has expanded its existing revolving credit facility to $30.0 million from $20.0 million. The expanded line of credit, which will renew the company’s original five-year term, extends the company’s relationship with Wells Fargo Bank, NA. The credit facility is available for general working capital purposes as well as for the repurchase of shares under the company’s share repurchase program.
“We are pleased with this expanded line of credit, which represents a vote of confidence for Famous Dave's, particularly given the restrictive credit environment in which most businesses are now operating,” said Diana Purcel, Famous Dave’s of America chief financial officer. “This new credit facility, which offers us improved interest rates and the ability under certain conditions to increase our borrowings up to $50 million, will provide us with additional financial flexibility to execute our growth strategy and to buy back our stock when conditions permit.”
Famous Dave’s will release its first quarter earnings on April 23, 2008, with a conference call April 24, 2008.
About Famous Dave’s of America, Inc.
Famous Dave's of America, Inc. (Nasdaq: DAVE) develops, owns, operates and franchises barbeque restaurants. The company currently owns 45 locations and franchises 123 additional units in 35 states. Its menu features award-winning barbequed and grilled meats, an ample selection of salads, side items, sandwiches and unique desserts.
Statements in this press release that are not strictly historical, including but not limited to statements regarding cash flow and development 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 Famous Dave's of America, Inc. believes the expectation reflected in any forward-looking statements is 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 Famous Dave's expectation include financial performance, restaurant industry conditions, execution of restaurant development and construction plans, 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.
Famous Dave’s of America, Inc.
Diana G. Purcel – Chief Financial Officer, 952-294-1300
Famous Dave's Closes on New $30.0 Million Credit Facility
Famous Dave's of America, Inc. (Nasdaq: DAVE) today announced that it has expanded its existing revolving credit facility to $30.0 million from $20.0 million. The expanded line of credit, which will renew the company’s original five-year term, extends the company’s relationship with Wells Fargo Bank, NA. The credit facility is available for general working capital purposes as well as for the repurchase of shares under the company’s share repurchase program.
“We are pleased with this expanded line of credit, which represents a vote of confidence for Famous Dave's, particularly given the restrictive credit environment in which most businesses are now operating,” said Diana Purcel, Famous Dave’s of America chief financial officer. “This new credit facility, which offers us improved interest rates and the ability under certain conditions to increase our borrowings up to $50 million, will provide us with additional financial flexibility to execute our growth strategy and to buy back our stock when conditions permit.”
Famous Dave’s will release its first quarter earnings on April 23, 2008, with a conference call April 24, 2008.
About Famous Dave’s of America, Inc.
Famous Dave's of America, Inc. (Nasdaq: DAVE) develops, owns, operates and franchises barbeque restaurants. The company currently owns 45 locations and franchises 123 additional units in 35 states. Its menu features award-winning barbequed and grilled meats, an ample selection of salads, side items, sandwiches and unique desserts.
Statements in this press release that are not strictly historical, including but not limited to statements regarding cash flow and development 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 Famous Dave's of America, Inc. believes the expectation reflected in any forward-looking statements is 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 Famous Dave's expectation include financial performance, restaurant industry conditions, execution of restaurant development and construction plans, 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.
Famous Dave’s of America, Inc.
Diana G. Purcel – Chief Financial Officer, 952-294-1300
I like the share structure a lot as well. "Paycents" is required I guess.