| Attached files | ||||||
| File | Filename | |||||
|---|---|---|---|---|---|---|
| 8-K - CURRENT REPORT - BUFFALO WILD WINGS INC | buffalo_8k-102709.htm | |||||
| People who read this document also read: | ||||||
| Document | ||||||
|---|---|---|---|---|---|---|
| FX ENERGY INC - 8-K, Entry into a Material Definitive Agreement Financial Statements and Exhibits | ||||||
EXHIBIT
99.1
|
FOR
IMMEDIATE RELEASE
|
 |
|
Investor
Relations Contact:
Mary
Twinem
952.253.0731
|
Sally Smith – President and
CEO
Mary Twinem –
CFO
|
Buffalo
Wild Wings, Inc. Announces
Third
Quarter 2009 Results
–
Same-store sales increases of 0.8% at company-owned and 1.9% at franchised
restaurants –
–
Earnings per diluted share increase of 52% to $0.38 –
Minneapolis, Minnesota, October 27, 2009 – Buffalo Wild Wings,
Inc. (NASDAQ:
BWLD),
announced today financial results for the third quarter ended September 27,
2009. Highlights for the third quarter versus the same period a year ago
were:
|
|
o
|
Total
revenue increased 25.1% to $132.7
million
|
|
|
o
|
Company-owned
restaurant sales grew 26.0% to $120.3
million
|
|
|
o
|
Same-store
sales increased 0.8% at company-owned restaurants and 1.9% at franchised
restaurants
|
|
|
o
|
Net
earnings increased 50.4% to $6.9 million from $4.6 million, and earnings
per diluted share increased 52.0% to $0.38 from
$0.25
|
Sally Smith,
President and Chief Executive Officer, commented, “Buffalo Wild Wings continues
to deliver category-leading operational and financial performance as
demonstrated by our outstanding third quarter results. Our revenue growth of 25%
produced impressive net earnings growth of 50% over last year, achieving
earnings per diluted share of $0.38. Our results demonstrate the compelling You
Have To Be Here®
experience that we provide to our Guests. I credit our success to the entire
Buffalo Wild Wings Team for their continued dedication to improvement which
delivered these great results.”
1
Total
revenue increased 25.1% to $132.7 million in the third quarter compared to
$106.1 million in the third quarter of 2008. Company-owned restaurant sales for
the quarter increased 26.0% over the same period in 2008, to $120.3 million
driven by a company-owned same-store sales increase of 0.8% and 33 additional
company-owned restaurants in operation at the end of third quarter 2009 relative
to the same period in 2008. Franchise royalties and fees increased 17.7% to
$12.5 million versus $10.6 million in the third quarter of 2008. This increase
was the result of a franchised same-store sales increase of 1.9% and 52
additional franchised restaurants at the end of the period versus a year
ago.
Average
weekly sales for company-owned restaurants were $42,602 for the third quarter of
2009 compared to $42,400 for the same quarter last year, a 0.5% increase.
Franchised restaurants averaged $48,458 for the
period versus $46,889 in the third quarter a year ago, a 3.3%
increase.
For the
third quarter, net earnings increased 50.4% to $6.9 million versus $4.6 million
in the third quarter of 2008. Earnings per diluted share were $0.38, as compared
to third quarter 2008 earnings per diluted share of $0.25.
2009
and 2010 Outlook
Ms. Smith
continued, “Football season is off to a great start and our same-store sales
momentum to date in the fourth quarter should provide a strong finish to the
year. We are confident we will achieve our 2009 growth goals of 15% unit growth,
25% revenue growth, and 20 to 25% net earnings growth, with net earnings likely
to be at the higher end of our stated goal.”
Ms. Smith
concluded, “With the strong foundation we have built, we have set goals for 2010
that will uphold Buffalo Wild Wings as a leader in the casual dining category.
Based on our current development pipeline, we believe we can achieve 13% to 15%
unit growth in 2010, which, along with strong restaurant-level performance and
leveraging our infrastructure, should translate into net earnings growth of
20%.”
Buffalo Wild Wings
will be hosting a conference call today, October 27, 2009 at 4:00 p.m. Central
Daylight Time to discuss these results. There will be a simultaneous webcast
conducted at our website www.buffalowildwings.com.
A replay
of the call will be available until November 3, 2009. To access this replay,
please dial 1.303.590.3030, password 4169893.
About
the Company
Buffalo Wild Wings,
Inc., founded in 1982 and headquartered in Minneapolis, Minnesota, is a
growing owner, operator and franchisor of restaurants featuring a variety of
boldly-flavored, made-to-order menu items including Buffalo-style chicken wings
spun in one of 14 signature sauces. Buffalo Wild Wings is an inviting
neighborhood destination with widespread appeal and is the recipient of dozens
of “Best Wings” and “Best Sports Bar” awards from across the country. There are
currently 633 Buffalo
Wild Wings locations across 41 states.
2
Forward-looking
Statements
Certain
statements in this release that are not historical facts are forward-looking
statements that involve risks and uncertainties. These statements include,
without limitation, those relating to our fourth quarter sales and projected
unit, revenue and earnings growth rates for 2009, 2010, and beyond.
Forward-looking statements are based upon the current beliefs and expectations
of our management. Actual results may vary materially from those contained in
forward-looking statements based on a number of factors including, without
limitation, the actual number of locations opening in the future, the sales at
these and our other company-owned and franchised locations, our ability to
successfully operate in new markets, unforeseen obstacles in developing
nontraditional sites, the cost of commodities, the success of our marketing and
other initiatives, our ability to control restaurant labor and other restaurant
operating costs, economic conditions (including changes in consumer preferences
or consumer discretionary spending), the availability of financing to real
estate developers and franchisees, competition, the impact of applicable
regulations, and other factors disclosed from time to time in our filings with
the U.S. Securities and Exchange Commission. Investors should take such risks
into account when making investment decisions. Shareholders and other readers
are cautioned not to place undue reliance on these forward-looking statements,
which speak only as of the date on which they are made. We undertake no
obligation to update any forward-looking statements.
# #
#
3
BUFFALO
WILD WINGS, INC. AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF EARNINGS
(Amounts
in thousands except per share data)
(unaudited)
|
Three
months ended
|
Nine
months ended
|
|||||||||||||||
|
September
27,
2009
|
September
28,
2008
|
September
27,
2009
|
September
28,
2008
|
|||||||||||||
|
Revenue:
|
||||||||||||||||
|
Restaurant
sales
|
$ | 120,290 | 95,492 | 357,477 | 269,850 | |||||||||||
|
Franchise
royalties and fees
|
12,451 | 10,582 | 36,441 | 31,354 | ||||||||||||
|
Total
revenue
|
132,741 | 106,074 | 393,918 | 301,204 | ||||||||||||
|
Costs
and expenses:
|
||||||||||||||||
|
Restaurant
operating costs:
|
||||||||||||||||
|
Cost
of sales
|
35,809 | 28,422 | 107,939 | 81,085 | ||||||||||||
|
Labor
|
36,369 | 29,289 | 107,974 | 82,167 | ||||||||||||
|
Operating
|
19,416 | 15,675 | 55,369 | 42,807 | ||||||||||||
|
Occupancy
|
8,256 | 6,273 | 23,774 | 17,872 | ||||||||||||
|
Depreciation
and amortization
|
8,267 | 5,971 | 23,650 | 16,720 | ||||||||||||
|
General
and administrative (1)
|
12,943 | 10,684 | 36,136 | 29,072 | ||||||||||||
|
Preopening
|
1,149 | 2,476 | 5,231 | 5,419 | ||||||||||||
|
Loss
on asset disposals and impairment
|
842 | 930 | 1,289 | 2,068 | ||||||||||||
|
Total
costs and expenses
|
123,051 | 99,720 | 361,362 | 277,210 | ||||||||||||
|
Income
from operations
|
9,690 | 6,354 | 32,556 | 23,994 | ||||||||||||
|
Investment
income
|
379 | 264 | 868 | 1,096 | ||||||||||||
|
Earnings
before income taxes
|
10,069 | 6,618 | 33,424 | 25,090 | ||||||||||||
|
Income
tax expense
|
3,197 | 2,050 | 11,091 | 8,382 | ||||||||||||
|
Net
earnings
|
$ | 6,872 | 4,568 | 22,333 | 16,708 | |||||||||||
|
Earnings per common share –
basic
|
$ | 0.38 | 0.26 | 1.24 | 0.94 | |||||||||||
|
Earnings
per common share – diluted
|
0.38 | 0.25 | 1.24 | 0.93 | ||||||||||||
|
Weighted
average shares outstanding – basic
|
18,024 | 17,823 | 18,001 | 17,800 | ||||||||||||
|
Weighted
average shares outstanding – diluted
|
18,098 | 17,920 | 18,068 | 17,903 | ||||||||||||
(1)
Includes stock-based compensation of $1,788, $1,297, and $4,278, and $3,221
respectively
4
The
following table expresses results of operations as a percentage of total revenue
for the periods presented, except for restaurant operating costs which are
expressed as a percentage of restaurant sales:
|
Three
months ended
|
Nine
months ended
|
|||||||||||||||
|
September
27,
2009
|
September
28,
2008
|
September
27,
2009
|
September
28,
2008
|
|||||||||||||
|
Revenue:
|
||||||||||||||||
|
Restaurant
sales
|
90.6 | % | 90.0 | % | 90.7 | % | 89.6 | % | ||||||||
|
Franchising
royalties and fees
|
9.4 | 10.0 | 9.3 | 10.4 | ||||||||||||
|
Total
revenue
|
100.0 | 100.0 | 100.0 | 100.0 | ||||||||||||
|
Costs
and expenses:
|
||||||||||||||||
|
Restaurant
operating costs:
|
||||||||||||||||
|
Cost
of sales
|
29.8 | 29.8 | 30.2 | 30.0 | ||||||||||||
|
Labor
|
30.2 | 30.7 | 30.2 | 30.4 | ||||||||||||
|
Operating
|
16.1 | 16.4 | 15.5 | 15.9 | ||||||||||||
|
Occupancy
|
6.9 | 6.6 | 6.7 | 6.6 | ||||||||||||
|
Depreciation
and amortization
|
6.2 | 5.6 | 6.0 | 5.6 | ||||||||||||
|
General
and administrative
|
9.8 | 10.1 | 9.2 | 9.7 | ||||||||||||
|
Preopening
|
0.9 | 2.3 | 1.3 | 1.8 | ||||||||||||
|
Loss
on asset disposals and impairment
|
0.6 | 0.9 | 0.3 | 0.7 | ||||||||||||
|
Total
costs and expenses
|
92.7 | 94.0 | 91.7 | 92.0 | ||||||||||||
|
Income
from operations
|
7.3 | 6.0 | 8.3 | 8.0 | ||||||||||||
|
Investment
income
|
0.3 | 0.2 | 0.2 | 0.4 | ||||||||||||
|
Earnings
before income taxes
|
7.6 | 6.2 | 8.5 | 8.3 | ||||||||||||
|
Income
tax expense
|
2.4 | 1.9 | 2.8 | 2.8 | ||||||||||||
|
Net
earnings
|
5.2 | 4.3 | 5.7 | 5.5 | ||||||||||||
5
BUFFALO
WILD WINGS, INC. AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS
September
27, 2009 and December 28, 2008
(Dollar
amounts in thousands)
(unaudited)
|
September
27,
2009
|
December
28,
2008
|
|||||||
|
Assets
|
||||||||
|
Current
assets:
|
||||||||
|
Cash
and cash equivalents
|
$ | 12,083 | $ | 8,347 | ||||
|
Marketable
securities
|
40,283 | 36,157 | ||||||
|
Accounts
receivable – franchisees, net of allowance of $25
|
1,037 | 895 | ||||||
|
Accounts
receivable – other
|
7,669 | 5,759 | ||||||
|
Inventory
|
3,227 | 3,104 | ||||||
|
Prepaid
expenses
|
3,512 | 3,294 | ||||||
|
Refundable
income taxes
|
1,510 | 1,611 | ||||||
|
Deferred
income taxes
|
4,935 | 1,731 | ||||||
|
Total
current assets
|
74,256 | 60,898 | ||||||
|
Property
and equipment, net
|
181,186 | 154,432 | ||||||
|
Restricted
cash
|
21,325 | 7,670 | ||||||
|
Other
assets
|
9,439 | 9,846 | ||||||
|
Goodwill
|
11,246 | 10,972 | ||||||
|
Total
assets
|
$ | 297,452 | 243,818 | |||||
|
Liabilities
and Stockholders’ Equity
|
||||||||
|
Current
liabilities:
|
||||||||
|
Unearned
franchise fees
|
$ | 2,769 | 2,514 | |||||
|
Accounts
payable
|
19,682 | 16,691 | ||||||
|
Accrued
compensation and benefits
|
15,968 | 14,155 | ||||||
|
Accrued
expenses
|
6,487 | 7,116 | ||||||
|
Current
portion of deferred lease credits
|
76 | 56 | ||||||
|
Total
current liabilities
|
44,982 | 40,532 | ||||||
|
Long-term
liabilities:
|
||||||||
|
Other
liabilities
|
1,388 | 1,270 | ||||||
|
System-wide
payables
|
21,325 | 7,670 | ||||||
|
Deferred
income taxes
|
15,119 | 8,916 | ||||||
|
Deferred
lease credits, net of current portion
|
15,595 | 13,837 | ||||||
|
Total
liabilities
|
98,409 | 72,225 | ||||||
|
Commitments
and contingencies
|
||||||||
|
Stockholders’
equity:
|
||||||||
|
Undesignated
stock, 1,000,000 shares authorized; none issued
|
— | — | ||||||
|
Common
stock, no par value. Authorized 44,000,000 shares; issued and outstanding
18,025,351 and 17,887,271 respectively
|
91,435 | 86,318 | ||||||
|
Retained
earnings
|
107,608 | 85,275 | ||||||
|
Total
stockholders’ equity
|
199,043 | 171,593 | ||||||
|
Total
liabilities and stockholders’ equity
|
$ | 297,452 | 243,818 | |||||
6
BUFFALO
WILD WINGS, INC. AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Dollar
amounts in thousands)
(unaudited)
|
Nine
months ended
|
||||||||
|
September
27,
2009
|
September
28,
2008
|
|||||||
|
Cash
flows from operating activities:
|
||||||||
|
Net
earnings
|
$ | 22,333 | 16,708 | |||||
|
Adjustments
to reconcile net earnings to cash provided by operations:
|
||||||||
|
Depreciation
|
23,191 | 16,720 | ||||||
|
Amortization
|
459 | 80 | ||||||
|
Loss
on asset disposals and impairment
|
1,289 | 2,068 | ||||||
|
Deferred
lease credits
|
1,705 | 1,426 | ||||||
|
Deferred
income taxes
|
2,999 | 3,929 | ||||||
|
Stock-based
compensation
|
4,278 | 3,221 | ||||||
|
Excess
tax benefit from the exercise of stock options
|
(418 | ) | (435 | ) | ||||
|
Change
in operating assets and liabilities, net of effect of
acquisition:
|
||||||||
|
Trading
securities
|
(1,731 | ) | (164 | ) | ||||
|
Accounts
receivable
|
(1,979 | ) | (62 | ) | ||||
|
Inventory
|
(123 | ) | (327 | ) | ||||
|
Prepaid
expenses
|
(218 | ) | 438 | |||||
|
Other
assets
|
(52 | ) | (429 | ) | ||||
|
Unearned
franchise fees
|
255 | 53 | ||||||
|
Accounts
payable
|
2,792 | 2,519 | ||||||
|
Refundable
income tax
|
519 | 1,016 | ||||||
|
Accrued
expenses
|
2,662 | 1,511 | ||||||
|
Net
cash provided by operating activities
|
57,961 | 47,272 | ||||||
|
Cash
flows from investing activities:
|
||||||||
|
Acquisition
of property and equipment
|
(51,309 | ) | (48,378 | ) | ||||
|
Acquisition
of franchised restaurants
|
— | (23,071 | ) | |||||
|
Purchase
of marketable securities
|
(39,115 | ) | (98,984 | ) | ||||
|
Proceeds
of marketable securities
|
36,720 | 125,156 | ||||||
|
Net
cash used in investing activities
|
(53,704 | ) | (45,277 | ) | ||||
|
Cash
flows from financing activities:
|
||||||||
|
Issuance
of common stock
|
574 | 569 | ||||||
|
Tax
payments for restricted stock units
|
(1,513 | ) | (989 | ) | ||||
|
Excess
tax benefit from the exercise of stock options
|
418 | 435 | ||||||
|
Net
cash provided by (used in) financing activities
|
(521 | ) | 15 | |||||
|
Net
increase in cash and cash equivalents
|
3,736 | 3,010 | ||||||
|
Cash
and cash equivalents at beginning of period
|
8,347 | 1,521 | ||||||
|
Cash
and cash equivalents at end of period
|
$ | 12,083 | 4,531 | |||||
7
BUFFALO
WILD WINGS, INC. AND SUBSIDIARIES
Supplemental
Information
Restaurant
Count
Company-owned
Restaurants:
|
Q1
|
Q2
|
Q3
|
Q4
|
|
|
2009
|
206
|
215
|
220
|
|
|
2008
|
165
|
169
|
187
|
197
|
|
2007
|
140
|
145
|
148
|
161
|
|
2006
|
124
|
129
|
134
|
139
|
|
2005
|
106
|
110
|
116
|
122
|
Franchised
Restaurants:
|
Q1
|
Q2
|
Q3
|
Q4
|
|
|
2009
|
373
|
383
|
400
|
|
|
2008
|
340
|
346
|
348
|
363
|
|
2007
|
299
|
301
|
313
|
332
|
|
2006
|
260
|
270
|
278
|
290
|
|
2005
|
212
|
224
|
234
|
248
|
Same-Store
Sales
Company-owned
Restaurants:
|
Q1
|
Q2
|
Q3
|
Q4
|
Year
|
|
|
2009
|
6.4%
|
2.8%
|
0.8%
|
||
|
2008
|
4.1%
|
8.3%
|
6.8%
|
4.5%
|
5.9%
|
|
2007
|
8.7%
|
8.1%
|
8.3%
|
3.4%
|
6.9%
|
|
2006
|
7.7%
|
8.2%
|
11.8%
|
13.2%
|
10.4%
|
|
2005
|
6.1%
|
2.7%
|
1.8%
|
2.5%
|
3.2%
|
Franchised
Restaurants:
|
Q1
|
Q2
|
Q3
|
Q4
|
Year
|
|
|
2009
|
6.0%
|
3.7%
|
1.9%
|
||
|
2008
|
2.1%
|
4.5%
|
2.1%
|
2.5%
|
2.8%
|
|
2007
|
3.3%
|
4.0%
|
5.9%
|
2.3%
|
3.9%
|
|
2006
|
6.7%
|
4.7%
|
6.4%
|
6.5%
|
6.1%
|
|
2005
|
3.2%
|
1.8%
|
1.1%
|
2.6%
|
2.2%
|
8
BUFFALO
WILD WINGS, INC. AND SUBSIDIARIES
Supplemental
Information
Average
Weekly Sales Volumes
Company-owned
Restaurants:
|
Q1
|
Q2
|
Q3
|
Q4
|
Year
|
|
|
2009
|
$45,593
|
42,938
|
42,602
|
||
|
2008
|
41,438
|
40,572
|
42,400
|
43,864
|
42,141
|
|
2007
|
39,254
|
36,655
|
38,498
|
40,485
|
38,757
|
|
2006
|
35,857
|
33,660
|
35,380
|
38,800
|
36,033
|
|
2005
|
33,195
|
30,531
|
31,361
|
33,953
|
32,304
|
Franchised
Restaurants:
|
Q1
|
Q2
|
Q3
|
Q4
|
Year
|
|
|
2009
|
$50,729
|
48,619
|
48,458
|
||
|
2008
|
47,812
|
46,390
|
46,889
|
48,424
|
47,382
|
|
2007
|
46,439
|
43,998
|
45,879
|
47,293
|
45,901
|
|
2006
|
44,342
|
42,338
|
42,963
|
46,008
|
43,975
|
|
2005
|
41,309
|
39,824
|
40,149
|
42,533
|
40,999
|
9
