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8-K - FORM 8-K - P F CHANGS CHINA BISTRO INC | c12980e8vk.htm |
EX-99.2 - EX-99.2 - P F CHANGS CHINA BISTRO INC | c12980exv99w2.htm |
Exhibit 99.1
P.F. Changs China Bistro, Inc.
P.F. CHANGS REPORTS FOURTH QUARTER AND FULL YEAR FISCAL 2010 RESULTS
SCOTTSDALE, ARIZONA, February 16, 2011 P.F. Changs China Bistro, Inc. (NASDAQ: PFCB) today
reported financial results for the fourth quarter and fiscal year ended January 2, 2011.
13 Weeks | 14 Weeks | 52 Weeks | 53 Weeks | |||||||||||||||||||||
(000 except per share data) | Q4 2010 | Q4 2009 | % Change | FY 2010 | FY 2009 | % Change | ||||||||||||||||||
Revenues |
$ | 311,180 | $ | 326,653 | -4.7 | % | $ | 1,242,799 | $ | 1,228,179 | 1.2 | % | ||||||||||||
Income from continuing operations |
$ | 14,639 | $ | 11,980 | 22.2 | % | $ | 46,562 | $ | 43,676 | 6.6 | % | ||||||||||||
Net income |
$ | 14,679 | $ | 12,035 | 22.0 | % | $ | 46,608 | $ | 43,197 | 7.9 | % | ||||||||||||
Diluted income per share: |
||||||||||||||||||||||||
Income from continuing operations |
$ | 0.64 | $ | 0.52 | 23.1 | % | $ | 2.01 | $ | 1.87 | 7.5 | % | ||||||||||||
Net income |
$ | 0.64 | $ | 0.52 | 23.1 | % | $ | 2.02 | $ | 1.85 | 9.2 | % |
Highlights for the fourth quarter of 2010 compared to the prior year quarter include:
| Consolidated revenues declined 4.7% to $311.2 million including the impact of one less
operating week during the fourth quarter of fiscal 2010. |
| Comparable store sales increased 0.1% at the Bistro and 1.3% at Pei Wei. |
| Net income increased 22.0% to $14.7 million. |
| Net income per diluted share increased 23.1% to $0.64. |
Highlights for fiscal 2010 compared to prior year include:
| Consolidated revenues increased 1.2% to $1,242.8 million including the impact of one less
operating week during fiscal 2010 compared to fiscal 2009. |
| Comparable store sales declined 0.1% at the Bistro and increased 1.8% at Pei Wei. |
| Net income increased 7.9% to $46.6 million. |
| Net income per diluted share increased 9.2% to $2.02. |
Fourth quarter comparable store sales
Fiscal 2010 | ||||||||||||||||
October | November | December | Total Q4 | |||||||||||||
Bistro |
||||||||||||||||
Traffic effect |
0.5 | % | -0.3 | % | -2.8 | % | -0.9 | % | ||||||||
Average ticket effect |
0.3 | % | 0.8 | % | 1.9 | % | 1.0 | % | ||||||||
Total comparable store sales |
0.8 | % | 0.5 | % | -0.9 | % | 0.1 | % | ||||||||
Pei Wei |
||||||||||||||||
Traffic effect |
-1.1 | % | -1.5 | % | 0.0 | % | -0.9 | % | ||||||||
Average ticket effect |
2.2 | % | 2.2 | % | 2.2 | % | 2.2 | % | ||||||||
Total comparable store sales |
1.1 | % | 0.7 | % | 2.2 | % | 1.3 | % | ||||||||
Bistro
The Bistro achieved positive same store sales in the fourth quarter of 2010. Average ticket at the
Bistro was positive during the quarter due to the benefit of a menu price increase combined with
improvements in high dollar transactions. Traffic declined during the fourth quarter partially due
to the impact of severe winter weather in late December.
Pei Wei
Pei Wei achieved positive same store sales in the fourth quarter of 2010. Average ticket at Pei Wei
was positive for the entire quarter including the collective impact of incremental sales of small
plate menu items, greater online ordering usage and the benefit of a menu price increase.
Comparable store sales for the fourth quarter of fiscal 2010 reflect results from the 13 week
operating period in the current year compared to the same 13 week operating period in the prior
year. Comparable store sales for December 2010 reflect results from the 4 week operating period in
the current year compared to the same 4 week operating period in the prior year.
Global Brand Development
Global Brand Development revenues totaled $0.9 million for the fourth quarter of 2010 related to
fees from seven international Bistro restaurants and a retail line of premium frozen food entrées,
all of which operate under licensing agreements, as well as two Bistro restaurants operated in
Hawaii under a joint venture arrangement.
Quarterly dividend
The Companys Board of Directors authorized a cash dividend payment of $0.29 per share on the
Companys outstanding common stock. The dividend is payable on March 14, 2011 to shareholders of
record at the close of business on February 28, 2011. The amount of the cash dividend was computed
based on 45% of the Companys net income for the quarter ended January 2, 2011.
2011 expectations
The Company anticipates that fiscal 2011 consolidated revenues will increase approximately three to
four percent compared to fiscal 2010 due to expectations of positive same store sales at both
concepts combined with revenues from nine to thirteen anticipated new restaurant openings during
fiscal 2011 and the benefit of a full year of revenues for restaurants that opened during fiscal
2010.
The Company expects to experience higher commodity costs and increased labor wage rates during
fiscal 2011 which will be partially offset with a slight menu price increase at both concepts.
Despite these cost pressures, the Company anticipates that fiscal 2011 restaurant operating margins
will increase compared to fiscal 2010, primarily due to lapping the impact of the first quarter
2010 Bistro Happy Hour rollout combined with a higher contribution from Global Brand Development
businesses. In addition, the Company expects an increase in general and administrative expenses in
fiscal 2011, primarily related to higher share-based compensation expense.
The Company expects to open three to five new Bistro restaurants and six to eight new Pei Wei
restaurants during fiscal 2011. In addition, the Company expects its international partners
collectively to open seven to ten Bistro restaurants in international markets during fiscal 2011.
The Company plans to repurchase approximately $60 million in common shares under its current
authorization during fiscal 2011.
Overall, the Company expects consolidated diluted earnings per share to range from $2.15 to $2.20
for fiscal 2011, an increase of approximately 10%.
Definitions
The following definitions apply to these terms as used throughout this release:
| Income from continuing operations refers to income from continuing operations, net of tax,
attributable to PFCB common stockholders. |
Page 2 of 10
| Net income refers to net income attributable to PFCB common stockholders. |
| Comparable store sales changes include company-operated restaurants and represent the
change in period-over-period sales for the comparable restaurant base. A restaurant becomes
comparable in its eighteenth month of operation. |
Financial reporting dates in fiscal 2011
The Company plans to announce quarterly financial results and hold conference calls to discuss its
results for the first three quarters of fiscal 2011 as outlined below. The earnings press releases
will be issued at approximately 7:00 am ET and the conference calls will follow at 1:00 pm ET on
the same day. Dates and times could be subject to change.
Earnings Release and | ||
Quarter Ending | Conference Call Dates | |
April 3, 2011
|
April 27, 2011 | |
July 3, 2011
|
July 27, 2011 | |
October 2, 2011
|
October 26, 2011 |
Conference call information
The Company is hosting a conference call today at 12:00 pm ET in which management will provide
further details on the fourth quarter results. A webcast of the call can be accessed through the
companys website at http://www.pfcb.com.
About the Company
P.F. Changs China Bistro, Inc. owns and operates two restaurant concepts in the Asian niche. P.F.
Changs China Bistro features a blend of high-quality, Chinese-inspired cuisine and American
hospitality in a sophisticated, contemporary bistro setting. Pei Wei Asian Diner offers a modest
menu of freshly prepared pan-Asian cuisine in a relaxed, warm environment offering attentive
counter service and take-out flexibility. In addition, the Company has extended the P.F. Changs
brand to international markets and retail products both of which are operated under licensing
agreements.
Note with respect to non-GAAP financial measures contained within Supplemental Financial
Information
In addition to using GAAP results in evaluating the Companys business, management measures
restaurant operating income to assess the performance of its existing restaurant concepts.
Restaurant operating income includes all ongoing costs related to operating the Companys
restaurants but excludes preopening expenses and partner investment expense. Because preopening and
partner investment expenses are associated with expansion of the Companys business and vary in
timing and magnitude, they make an accurate assessment of the health of ongoing operations more
difficult and are therefore excluded. Additionally, general and administrative expenses are
generally not specifically identifiable to individual business units and are only included in the
Companys consolidated financial presentation as these costs relate to support of both restaurant
concepts and the extension of the Companys brands into international markets and retail products.
As the Companys expansion is funded entirely from its ongoing restaurant operations, restaurant
operating income is a consideration of management when determining whether and when to open
additional restaurants. The non-GAAP financial information presented herein should be considered
in addition to, not as a substitute for, or superior to, financial measures calculated in
accordance with GAAP. Please see the non-GAAP to GAAP reconciliation at the bottom of pages 6
through 8 of this press release for a reconciliation of restaurant operating income to the most
directly comparable GAAP measure, income from operations.
Page 3 of 10
Note with respect to forward looking statements
The statements contained in this press release that are not purely historical, including the
Companys estimates of its earnings, revenues and anticipated new restaurants are forward-looking
statements. The accuracy of these forward-looking statements may be affected by certain risks and
uncertainties, including, but not limited to, failure of the Companys existing or new restaurants
to achieve expected results; damage to our brands or reputation; development is critical to the
Companys long-term success; changes in general economic conditions and dependence on sales
concentrated in certain geographic areas; intense competition in the restaurant industry; changes
in government legislation that may increase labor costs; litigation; adverse public or medical
opinions about the health effects of consuming our products; failure to comply with governmental
regulations; changes in food costs; the inability to retain key personnel; federal and state tax
rules could negatively impact results of operations and financial position; fluctuating insurance
requirements and costs; seasonality of the Companys business; adverse impact if information
technology and computer systems do not perform properly and other risks described in the Companys
recent SEC filings.
Contacts:
Investor: |
Allison Schulder | (480) 888-3000 | allison.schulder@pfcb.com | |||
Media: |
Rachel Gillman Dig Communications |
(312) 577-1759 | rgillman@digcommunications.com |
Page 4 of 10
P.F. Changs China Bistro, Inc.
Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
13 Weeks | 14 Weeks | 52 Weeks | 53 Weeks | |||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||
January 2, | January 3, | January 2, | January 3, | |||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Revenues |
$ | 311,180 | $ | 326,653 | $ | 1,242,799 | $ | 1,228,179 | ||||||||
Costs and expenses: |
||||||||||||||||
Cost of sales |
80,621 | 87,328 | 324,731 | 326,421 | ||||||||||||
Labor |
101,610 | 107,052 | 410,000 | 401,583 | ||||||||||||
Operating |
51,886 | 53,476 | 208,294 | 203,859 | ||||||||||||
Occupancy |
18,756 | 18,288 | 73,707 | 70,635 | ||||||||||||
General and administrative |
19,839 | 22,004 | 81,883 | 82,749 | ||||||||||||
Depreciation and amortization |
19,832 | 18,303 | 77,486 | 74,429 | ||||||||||||
Preopening expense |
439 | 1,420 | 1,976 | 3,919 | ||||||||||||
Partner investment expense |
(47 | ) | (92 | ) | (318 | ) | (629 | ) | ||||||||
Total costs and expenses |
292,936 | 307,779 | 1,177,759 | 1,162,966 | ||||||||||||
Income from operations |
18,244 | 18,874 | 65,040 | 65,213 | ||||||||||||
Interest and other income (expense), net |
333 | (345 | ) | (572 | ) | (1,637 | ) | |||||||||
Income from continuing operations before taxes |
18,577 | 18,529 | 64,468 | 63,576 | ||||||||||||
Provision for income taxes |
(3,773 | ) | (5,954 | ) | (17,122 | ) | (18,492 | ) | ||||||||
Income from continuing operations, net of tax |
14,804 | 12,575 | 47,346 | 45,084 | ||||||||||||
Income (loss) from discontinued operations, net of tax |
40 | 55 | 46 | (479 | ) | |||||||||||
Net income |
14,844 | 12,630 | 47,392 | 44,605 | ||||||||||||
Less: Net income attributable to noncontrolling interests |
165 | 595 | 784 | 1,408 | ||||||||||||
Net income attributable to PFCB |
$ | 14,679 | $ | 12,035 | $ | 46,608 | $ | 43,197 | ||||||||
Basic income per share: |
||||||||||||||||
Income from continuing operations attributable to PFCB common stockholders |
$ | 0.65 | $ | 0.53 | $ | 2.05 | $ | 1.90 | ||||||||
Income (loss) from discontinued operations, net of tax, attributable to PFCB common stockholders |
0.00 | 0.00 | 0.00 | (0.02 | ) | |||||||||||
Net income attributable to PFCB common stockholders |
$ | 0.65 | $ | 0.53 | $ | 2.05 | $ | 1.88 | ||||||||
Diluted income per share: |
||||||||||||||||
Income from continuing operations attributable to PFCB common stockholders |
$ | 0.64 | $ | 0.52 | $ | 2.01 | $ | 1.87 | ||||||||
Income (loss) from discontinued operations, net of tax, attributable to PFCB common stockholders |
0.00 | 0.00 | 0.01 | (0.02 | ) | |||||||||||
Net income attributable to PFCB common stockholders |
$ | 0.64 | $ | 0.52 | $ | 2.02 | $ | 1.85 | ||||||||
Weighted average shares used in computation: |
||||||||||||||||
Basic |
22,599 | 22,633 | 22,689 | 22,986 | ||||||||||||
Diluted |
23,011 | 23,045 | 23,115 | 23,413 | ||||||||||||
Cash dividends declared per share |
$ | 0.29 | $ | | $ | 0.92 | $ | | ||||||||
Amounts attributable to PFCB: |
||||||||||||||||
Income from continuing operations, net of tax |
$ | 14,639 | $ | 11,980 | $ | 46,562 | $ | 43,676 | ||||||||
Income (loss) from discontinued operations, net of tax |
40 | 55 | 46 | (479 | ) | |||||||||||
Net income attributable to PFCB |
$ | 14,679 | $ | 12,035 | $ | 46,608 | $ | 43,197 | ||||||||
Page 5 of 10
P.F. Changs China Bistro, Inc.
Supplemental Financial Information
Supplemental Financial Information
2008 | 1Q09 | 2Q09 | 3Q09 | 4Q09 | 2009 | 1Q10 | 2Q10 | 3Q10 | 4Q10 | YTD Q4 2010 | ||||||||||||||||||||||||||||||||||
Units |
348 | 350 | 351 | 356 | 363 | 363 | 364 | 366 | 368 | 369 | 369 | |||||||||||||||||||||||||||||||||
Sales weeks |
17,170 | 4,531 | 4,563 | 4,604 | 5,058 | 18,756 | 4,731 | 4,736 | 4,770 | 4,791 | 19,028 | |||||||||||||||||||||||||||||||||
AWS |
69,780 | 68,382 | 66,044 | 63,060 | 64,581 | 65,482 | 65,604 | 66,055 | 64,656 | 64,951 | 65,314 | |||||||||||||||||||||||||||||||||
Revenues (1) |
1,198,124 | 309,837 | 301,360 | 290,329 | 326,653 | 1,228,179 | 310,371 | 312,838 | 308,410 | 311,180 | 1,242,799 | |||||||||||||||||||||||||||||||||
Operating costs |
||||||||||||||||||||||||||||||||||||||||||||
Cost of sales |
325,630 | 83,072 | 79,657 | 76,364 | 87,328 | 326,421 | 84,013 | 81,717 | 78,380 | 80,621 | 324,731 | |||||||||||||||||||||||||||||||||
Labor |
396,911 | 100,707 | 98,111 | 95,713 | 107,052 | 401,583 | 104,475 | 102,295 | 101,620 | 101,610 | 410,000 | |||||||||||||||||||||||||||||||||
Operating |
198,967 | 50,691 | 48,809 | 50,883 | 53,476 | 203,859 | 52,753 | 51,597 | 52,058 | 51,886 | 208,294 | |||||||||||||||||||||||||||||||||
Occupancy |
69,809 | 17,378 | 17,403 | 17,566 | 18,288 | 70,635 | 17,838 | 18,609 | 18,504 | 18,756 | 73,707 | |||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests |
1,933 | 370 | 288 | 155 | 595 | 1,408 | 206 | 241 | 172 | 165 | 784 | |||||||||||||||||||||||||||||||||
Depreciation & amortization |
68,711 | 18,496 | 18,575 | 19,055 | 18,303 | 74,429 | 19,001 | 19,335 | 19,318 | 19,832 | 77,486 | |||||||||||||||||||||||||||||||||
Restaurant operating income |
136,163 | 39,123 | 38,517 | 30,593 | 41,611 | 149,844 | 32,085 | 39,044 | 38,358 | 38,310 | 147,797 | |||||||||||||||||||||||||||||||||
Development costs |
||||||||||||||||||||||||||||||||||||||||||||
Preopening expenses |
8,457 | 488 | 461 | 1,550 | 1,420 | 3,919 | 133 | 832 | 572 | 439 | 1,976 | |||||||||||||||||||||||||||||||||
Partner investment expense |
(354 | ) | (464 | ) | (91 | ) | 18 | (92 | ) | (629 | ) | 11 | (135 | ) | (147 | ) | (47 | ) | (318 | ) | ||||||||||||||||||||||||
Other expenses |
||||||||||||||||||||||||||||||||||||||||||||
General and administrative (2) |
77,488 | 19,814 | 20,523 | 20,408 | 22,004 | 82,749 | 19,053 | 19,765 | 23,226 | 19,839 | 81,883 | |||||||||||||||||||||||||||||||||
Interest and other (income) expense, net |
3,362 | 940 | 437 | (85 | ) | 345 | 1,637 | 415 | 665 | (175 | ) | (333 | ) | 572 | ||||||||||||||||||||||||||||||
Provision for income taxes |
12,193 | 4,953 | 5,108 | 2,477 | 5,954 | 18,492 | 3,788 | 5,144 | 4,417 | 3,773 | 17,122 | |||||||||||||||||||||||||||||||||
Income from continuing operations |
35,017 | 13,392 | 12,079 | 6,225 | 11,980 | 43,676 | 8,685 | 12,773 | 10,465 | 14,639 | 46,562 | |||||||||||||||||||||||||||||||||
Income (loss) from discontinued operations, net of tax |
(7,591 | ) | (43 | ) | (474 | ) | (17 | ) | 55 | (479 | ) | 6 | | | 40 | 46 | ||||||||||||||||||||||||||||
Net income attributable to PFCB |
27,426 | 13,349 | 11,605 | 6,208 | 12,035 | 43,197 | 8,691 | 12,773 | 10,465 | 14,679 | 46,608 | |||||||||||||||||||||||||||||||||
Income from continuing operations per FDS |
$ | 1.45 | $ | 0.56 | $ | 0.51 | $ | 0.27 | $ | 0.52 | $ | 1.87 | $ | 0.38 | $ | 0.55 | $ | 0.45 | $ | 0.64 | $ | 2.01 | ||||||||||||||||||||||
Fully diluted shares (FDS) |
24,080 | 23,795 | 23,526 | 23,285 | 23,045 | 23,413 | 23,104 | 23,277 | 23,070 | 23,011 | 23,115 | |||||||||||||||||||||||||||||||||
Revenues |
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||||||||||
Cost of sales |
27.2 | % | 26.8 | % | 26.4 | % | 26.3 | % | 26.7 | % | 26.6 | % | 27.1 | % | 26.1 | % | 25.4 | % | 25.9 | % | 26.1 | % | ||||||||||||||||||||||
Labor |
33.1 | % | 32.5 | % | 32.6 | % | 33.0 | % | 32.8 | % | 32.7 | % | 33.7 | % | 32.7 | % | 32.9 | % | 32.7 | % | 33.0 | % | ||||||||||||||||||||||
Operating |
16.6 | % | 16.4 | % | 16.2 | % | 17.5 | % | 16.4 | % | 16.6 | % | 17.0 | % | 16.5 | % | 16.9 | % | 16.7 | % | 16.8 | % | ||||||||||||||||||||||
Occupancy |
5.8 | % | 5.6 | % | 5.8 | % | 6.1 | % | 5.6 | % | 5.8 | % | 5.7 | % | 5.9 | % | 6.0 | % | 6.0 | % | 5.9 | % | ||||||||||||||||||||||
Net income attributable to noncontrolling interests |
0.2 | % | 0.1 | % | 0.1 | % | 0.1 | % | 0.2 | % | 0.1 | % | 0.1 | % | 0.1 | % | 0.1 | % | 0.1 | % | 0.1 | % | ||||||||||||||||||||||
Depreciation & amortization |
5.7 | % | 6.0 | % | 6.2 | % | 6.6 | % | 5.6 | % | 6.1 | % | 6.1 | % | 6.2 | % | 6.3 | % | 6.4 | % | 6.2 | % | ||||||||||||||||||||||
Restaurant operating income |
11.4 | % | 12.6 | % | 12.8 | % | 10.5 | % | 12.7 | % | 12.2 | % | 10.3 | % | 12.5 | % | 12.4 | % | 12.3 | % | 11.9 | % | ||||||||||||||||||||||
Preopening expenses |
0.7 | % | 0.2 | % | 0.2 | % | 0.5 | % | 0.4 | % | 0.3 | % | 0.0 | % | 0.3 | % | 0.2 | % | 0.1 | % | 0.2 | % | ||||||||||||||||||||||
Partner investment expense |
(0.0 | %) | (0.1 | %) | (0.0 | %) | 0.0 | % | (0.0 | %) | (0.1 | %) | 0.0 | % | (0.0 | %) | (0.0 | %) | (0.0 | %) | (0.0 | %) | ||||||||||||||||||||||
General and administrative (2) |
6.5 | % | 6.4 | % | 6.8 | % | 7.0 | % | 6.7 | % | 6.7 | % | 6.1 | % | 6.3 | % | 7.5 | % | 6.4 | % | 6.6 | % | ||||||||||||||||||||||
Interest and other (income) expense, net |
0.3 | % | 0.3 | % | 0.1 | % | (0.0 | %) | 0.1 | % | 0.1 | % | 0.1 | % | 0.2 | % | (0.1 | %) | (0.1 | %) | 0.0 | % | ||||||||||||||||||||||
Provision for income taxes |
1.0 | % | 1.6 | % | 1.7 | % | 0.9 | % | 1.8 | % | 1.5 | % | 1.2 | % | 1.6 | % | 1.4 | % | 1.2 | % | 1.4 | % | ||||||||||||||||||||||
Income from continuing operations |
2.9 | % | 4.3 | % | 4.0 | % | 2.1 | % | 3.7 | % | 3.6 | % | 2.8 | % | 4.1 | % | 3.4 | % | 4.7 | % | 3.7 | % | ||||||||||||||||||||||
Income (loss) from discontinued operations, net of tax |
(0.6 | %) | (0.0 | %) | (0.2 | %) | (0.0 | %) | 0.0 | % | (0.0 | %) | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | ||||||||||||||||||||||
Net income attributable to PFCB |
2.3 | % | 4.3 | % | 3.9 | % | 2.1 | % | 3.7 | % | 3.5 | % | 2.8 | % | 4.1 | % | 3.4 | % | 4.7 | % | 3.8 | % | ||||||||||||||||||||||
Reconciliation of Non-GAAP Financial Information to GAAP measures: |
||||||||||||||||||||||||||||||||||||||||||||
Restaurant operating income |
136,163 | 39,123 | 38,517 | 30,593 | 41,611 | 149,844 | 32,085 | 39,044 | 38,358 | 38,310 | 147,797 | |||||||||||||||||||||||||||||||||
Add: Net income attributable to noncontrolling interests |
1,933 | 370 | 288 | 155 | 595 | 1,408 | 206 | 241 | 172 | 165 | 784 | |||||||||||||||||||||||||||||||||
Less: General and administrative (2) |
(77,488 | ) | (19,814 | ) | (20,523 | ) | (20,408 | ) | (22,004 | ) | (82,749 | ) | (19,053 | ) | (19,765 | ) | (23,226 | ) | (19,839 | ) | (81,883 | ) | ||||||||||||||||||||||
Less: Preopening expenses |
(8,457 | ) | (488 | ) | (461 | ) | (1,550 | ) | (1,420 | ) | (3,919 | ) | (133 | ) | (832 | ) | (572 | ) | (439 | ) | (1,976 | ) | ||||||||||||||||||||||
Less: Partner investment expense |
354 | 464 | 91 | (18 | ) | 92 | 629 | (11 | ) | 135 | 147 | 47 | 318 | |||||||||||||||||||||||||||||||
Income from operations |
52,505 | 19,655 | 17,912 | 8,772 | 18,874 | 65,213 | 13,094 | 18,823 | 14,879 | 18,244 | 65,040 | |||||||||||||||||||||||||||||||||
Note: | Consolidated results include the impact of Shared Services and Other as well as the
Bistro and Pei Wei concepts |
|
(1) | Consolidated revenues include revenues related to the Bistro and Pei Wei concepts as well as
Global Brand Development initiatives |
|
(2) | Consolidated general and administrative expenses includes the costs of supporting the Company,
including all concepts as well as Global Brand Development initiatives |
Page 6 of 10
Concept: P.F. Changs China Bistro
Supplemental Financial Information
Supplemental Financial Information
2008 | 1Q09 | 2Q09 | 3Q09 | 4Q09 | 2009 | 1Q10 | 2Q10 | 3Q10 | 4Q10 | YTD Q4 2010 | ||||||||||||||||||||||||||||||||||
Units |
189 | 190 | 190 | 192 | 197 | 197 | 197 | 199 | 200 | 201 | 201 | |||||||||||||||||||||||||||||||||
Sales weeks |
9,373 | 2,458 | 2,470 | 2,486 | 2,736 | 10,150 | 2,561 | 2,565 | 2,593 | 2,607 | 10,326 | |||||||||||||||||||||||||||||||||
AWS |
98,127 | 95,661 | 91,958 | 87,324 | 89,884 | 91,161 | 90,077 | 90,964 | 89,202 | 89,726 | 89,989 | |||||||||||||||||||||||||||||||||
Revenues |
919,963 | 235,141 | 227,144 | 217,093 | 245,943 | 925,321 | 230,767 | 233,365 | 231,309 | 233,931 | 929,372 | |||||||||||||||||||||||||||||||||
Operating costs |
||||||||||||||||||||||||||||||||||||||||||||
Cost of sales |
249,911 | 62,963 | 59,749 | 56,624 | 65,480 | 244,816 | 62,711 | 60,914 | 58,135 | 60,008 | 241,768 | |||||||||||||||||||||||||||||||||
Labor |
301,967 | 76,051 | 73,286 | 71,216 | 80,222 | 300,775 | 78,192 | 76,769 | 76,533 | 76,667 | 308,161 | |||||||||||||||||||||||||||||||||
Operating |
149,083 | 36,973 | 36,373 | 37,487 | 40,050 | 150,883 | 38,546 | 38,183 | 38,554 | 37,804 | 153,087 | |||||||||||||||||||||||||||||||||
Occupancy |
50,670 | 12,441 | 12,412 | 12,390 | 12,943 | 50,186 | 12,640 | 13,254 | 13,242 | 13,368 | 52,504 | |||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests |
1,361 | 179 | 145 | 104 | 110 | 538 | 71 | 93 | 62 | 70 | 296 | |||||||||||||||||||||||||||||||||
Depreciation & amortization |
51,091 | 13,728 | 13,646 | 13,900 | 13,247 | 54,521 | 13,854 | 14,043 | 14,018 | 14,519 | 56,434 | |||||||||||||||||||||||||||||||||
Restaurant operating income |
115,880 | 32,806 | 31,533 | 25,372 | 33,891 | 123,602 | 24,753 | 30,109 | 30,765 | 31,495 | 117,122 | |||||||||||||||||||||||||||||||||
Revenues |
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||||||||||
Cost of sales |
27.2 | % | 26.8 | % | 26.3 | % | 26.1 | % | 26.6 | % | 26.5 | % | 27.2 | % | 26.1 | % | 25.1 | % | 25.7 | % | 26.0 | % | ||||||||||||||||||||||
Labor |
32.8 | % | 32.3 | % | 32.3 | % | 32.8 | % | 32.6 | % | 32.5 | % | 33.9 | % | 32.9 | % | 33.1 | % | 32.8 | % | 33.2 | % | ||||||||||||||||||||||
Operating |
16.2 | % | 15.7 | % | 16.0 | % | 17.3 | % | 16.3 | % | 16.3 | % | 16.7 | % | 16.4 | % | 16.7 | % | 16.2 | % | 16.5 | % | ||||||||||||||||||||||
Occupancy |
5.5 | % | 5.3 | % | 5.5 | % | 5.7 | % | 5.3 | % | 5.4 | % | 5.5 | % | 5.7 | % | 5.7 | % | 5.7 | % | 5.6 | % | ||||||||||||||||||||||
Net income attributable to noncontrolling interests |
0.1 | % | 0.1 | % | 0.1 | % | 0.0 | % | 0.0 | % | 0.1 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | ||||||||||||||||||||||
Depreciation & amortization |
5.6 | % | 5.8 | % | 6.0 | % | 6.4 | % | 5.4 | % | 5.9 | % | 6.0 | % | 6.0 | % | 6.1 | % | 6.2 | % | 6.1 | % | ||||||||||||||||||||||
Restaurant operating income |
12.6 | % | 14.0 | % | 13.9 | % | 11.7 | % | 13.8 | % | 13.4 | % | 10.7 | % | 12.9 | % | 13.3 | % | 13.5 | % | 12.6 | % | ||||||||||||||||||||||
Reconciliation of Non-GAAP Financial Information to GAAP measures: |
||||||||||||||||||||||||||||||||||||||||||||
Restaurant operating income |
115,880 | 32,806 | 31,533 | 25,372 | 33,891 | 123,602 | 24,753 | 30,109 | 30,765 | 31,495 | 117,122 | |||||||||||||||||||||||||||||||||
Add: Net income attributable to noncontrolling interests |
1,361 | 179 | 145 | 104 | 110 | 538 | 71 | 93 | 62 | 70 | 296 | |||||||||||||||||||||||||||||||||
Less: Preopening expenses |
(5,677 | ) | (294 | ) | (280 | ) | (1,004 | ) | (1,257 | ) | (2,835 | ) | (26 | ) | (765 | ) | (411 | ) | (265 | ) | (1,467 | ) | ||||||||||||||||||||||
Less: Partner investment expense |
1,066 | 148 | 20 | | 68 | 236 | | | | | | |||||||||||||||||||||||||||||||||
Income from operations |
112,630 | 32,839 | 31,418 | 24,472 | 32,812 | 121,541 | 24,798 | 29,437 | 30,416 | 31,300 | 115,951 | |||||||||||||||||||||||||||||||||
Note: General and administrative expenses are reflected in the Companys consolidated results
Page 7 of 10
Concept: Pei Wei Asian Diner (A)
Supplemental Financial Information
Supplemental Financial Information
2008 | 1Q09 | 2Q09 | 3Q09 | 4Q09 | 2009 | 1Q10 | 2Q10 | 3Q10 | 4Q10 | YTD Q4 2010 | ||||||||||||||||||||||||||||||||||
Units |
159 | 160 | 161 | 164 | 166 | 166 | 167 | 167 | 168 | 168 | 168 | |||||||||||||||||||||||||||||||||
Sales weeks |
7,797 | 2,073 | 2,093 | 2,118 | 2,322 | 8,606 | 2,170 | 2,171 | 2,177 | 2,184 | 8,702 | |||||||||||||||||||||||||||||||||
AWS |
35,675 | 36,011 | 35,459 | 34,578 | 34,701 | 35,171 | 36,597 | 35,991 | 34,998 | 34,950 | 35,632 | |||||||||||||||||||||||||||||||||
Revenues |
278,161 | 74,696 | 74,216 | 73,236 | 80,576 | 302,724 | 79,475 | 78,137 | 76,190 | 76,329 | 310,131 | |||||||||||||||||||||||||||||||||
Operating costs |
||||||||||||||||||||||||||||||||||||||||||||
Cost of sales |
75,719 | 20,109 | 19,908 | 19,740 | 21,848 | 81,605 | 21,302 | 20,803 | 20,245 | 20,613 | 82,963 | |||||||||||||||||||||||||||||||||
Labor |
94,944 | 24,656 | 24,825 | 24,497 | 26,830 | 100,808 | 26,283 | 25,526 | 25,087 | 24,943 | 101,839 | |||||||||||||||||||||||||||||||||
Operating |
49,884 | 13,718 | 12,436 | 13,396 | 13,426 | 52,976 | 14,207 | 13,414 | 13,504 | 14,082 | 55,207 | |||||||||||||||||||||||||||||||||
Occupancy |
19,139 | 4,937 | 4,991 | 5,176 | 5,345 | 20,449 | 5,198 | 5,355 | 5,262 | 5,388 | 21,203 | |||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests |
572 | 191 | 143 | 51 | 485 | 870 | 135 | 148 | 110 | 95 | 488 | |||||||||||||||||||||||||||||||||
Depreciation & amortization |
16,158 | 4,350 | 4,440 | 4,647 | 4,666 | 18,103 | 4,647 | 4,762 | 4,772 | 4,761 | 18,942 | |||||||||||||||||||||||||||||||||
Restaurant operating income |
21,745 | 6,735 | 7,473 | 5,729 | 7,976 | 27,913 | 7,703 | 8,129 | 7,210 | 6,447 | 29,489 | |||||||||||||||||||||||||||||||||
Revenues |
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||||||||||
Cost of sales |
27.2 | % | 26.9 | % | 26.8 | % | 27.0 | % | 27.1 | % | 27.0 | % | 26.8 | % | 26.6 | % | 26.6 | % | 27.0 | % | 26.8 | % | ||||||||||||||||||||||
Labor |
34.1 | % | 33.0 | % | 33.4 | % | 33.4 | % | 33.3 | % | 33.3 | % | 33.1 | % | 32.7 | % | 32.9 | % | 32.7 | % | 32.8 | % | ||||||||||||||||||||||
Operating |
17.9 | % | 18.4 | % | 16.8 | % | 18.3 | % | 16.7 | % | 17.5 | % | 17.9 | % | 17.2 | % | 17.7 | % | 18.4 | % | 17.8 | % | ||||||||||||||||||||||
Occupancy |
6.9 | % | 6.6 | % | 6.7 | % | 7.1 | % | 6.6 | % | 6.8 | % | 6.5 | % | 6.9 | % | 6.9 | % | 7.1 | % | 6.8 | % | ||||||||||||||||||||||
Net income attributable to noncontrolling interests |
0.2 | % | 0.3 | % | 0.2 | % | 0.1 | % | 0.6 | % | 0.3 | % | 0.2 | % | 0.2 | % | 0.1 | % | 0.1 | % | 0.2 | % | ||||||||||||||||||||||
Depreciation & amortization |
5.8 | % | 5.8 | % | 6.0 | % | 6.3 | % | 5.8 | % | 6.0 | % | 5.8 | % | 6.1 | % | 6.3 | % | 6.2 | % | 6.1 | % | ||||||||||||||||||||||
Restaurant operating income |
7.8 | % | 9.0 | % | 10.1 | % | 7.8 | % | 9.9 | % | 9.2 | % | 9.7 | % | 10.4 | % | 9.5 | % | 8.4 | % | 9.5 | % | ||||||||||||||||||||||
Reconciliation of Non-GAAP Financial Information to GAAP measures: |
||||||||||||||||||||||||||||||||||||||||||||
Restaurant operating income |
21,745 | 6,735 | 7,473 | 5,729 | 7,976 | 27,913 | 7,703 | 8,129 | 7,210 | 6,447 | 29,489 | |||||||||||||||||||||||||||||||||
Add: Net income attributable to noncontrolling interests |
572 | 191 | 143 | 51 | 485 | 870 | 135 | 148 | 110 | 95 | 488 | |||||||||||||||||||||||||||||||||
Less: Preopening expenses |
(2,780 | ) | (194 | ) | (181 | ) | (546 | ) | (163 | ) | (1,084 | ) | (107 | ) | (67 | ) | (161 | ) | (174 | ) | (509 | ) | ||||||||||||||||||||||
Less: Partner investment expense |
(712 | ) | 316 | 71 | (18 | ) | 24 | 393 | (11 | ) | 135 | 147 | 47 | 318 | ||||||||||||||||||||||||||||||
Income from operations |
18,825 | 7,048 | 7,506 | 5,216 | 8,322 | 28,092 | 7,720 | 8,345 | 7,306 | 6,415 | 29,786 | |||||||||||||||||||||||||||||||||
Note: | General and administrative expenses are reflected in the Companys consolidated results |
|
(A) | All current and historical operating results related to closed Pei Wei restaurants are
reflected within discontinued operations for all periods presented |
Page 8 of 10
P.F. Changs China Bistro
Supplemental Sales Information (Company Owned)
Year of Unit Opening (1) | ||||||||||||||||||||||||||||||||||||||||||||
Pre-2002 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | Total | ||||||||||||||||||||||||||||||||||
Units | 64 | 14 | 18 | 18 | 18 | 20 | 20 | 17 | 8 | 4 | 201 | |||||||||||||||||||||||||||||||||
Sales (000) |
||||||||||||||||||||||||||||||||||||||||||||
1Q10 |
84,443 | 16,452 | 22,541 | 18,179 | 18,840 | 21,713 | 22,542 | 16,961 | 9,017 | | 230,688 | |||||||||||||||||||||||||||||||||
2Q10 |
84,934 | 16,111 | 22,795 | 19,015 | 19,043 | 21,928 | 22,913 | 17,483 | 8,620 | 481 | 233,323 | |||||||||||||||||||||||||||||||||
3Q10 |
83,188 | 15,716 | 22,409 | 19,012 | 18,444 | 21,239 | 22,410 | 17,016 | 8,433 | 3,433 | 231,300 | |||||||||||||||||||||||||||||||||
4Q10 |
84,993 | 16,280 | 22,489 | 18,539 | 18,639 | 21,607 | 22,143 | 17,058 | 8,100 | 4,068 | 233,916 | |||||||||||||||||||||||||||||||||
2010 |
337,558 | 64,559 | 90,234 | 74,745 | 74,966 | 86,487 | 90,008 | 68,518 | 34,170 | 7,982 | 929,227 | |||||||||||||||||||||||||||||||||
Average Weekly Sales (AWS) |
||||||||||||||||||||||||||||||||||||||||||||
1Q10 |
101,494 | 90,396 | 96,331 | 77,688 | 80,514 | 83,510 | 86,700 | 76,747 | 86,697 | | 90,077 | |||||||||||||||||||||||||||||||||
2Q10 |
102,084 | 88,522 | 97,414 | 81,262 | 81,380 | 84,339 | 88,125 | 79,106 | 82,887 | 120,210 | 90,964 | |||||||||||||||||||||||||||||||||
3Q10 |
99,985 | 86,354 | 95,765 | 81,246 | 78,820 | 81,688 | 86,194 | 76,997 | 81,088 | 107,269 | 89,202 | |||||||||||||||||||||||||||||||||
4Q10 |
102,155 | 89,451 | 96,108 | 79,227 | 79,654 | 83,104 | 85,164 | 77,187 | 77,885 | 88,438 | 89,726 | |||||||||||||||||||||||||||||||||
2010 |
101,430 | 88,681 | 96,404 | 79,856 | 80,092 | 83,160 | 86,546 | 77,509 | 82,139 | 97,337 | 89,989 | |||||||||||||||||||||||||||||||||
Year-Over-Year Change Comparable Store Sales (2)(3) |
||||||||||||||||||||||||||||||||||||||||||||
Units |
64 | 14 | 18 | 18 | 18 | 20 | 20 | 17 | 1 | | 190 | |||||||||||||||||||||||||||||||||
1Q10 |
-4.0 | % | -3.0 | % | -1.7 | % | -1.5 | % | -1.8 | % | -0.7 | % | -0.9 | % | -5.1 | % | | | -2.7 | % | ||||||||||||||||||||||||
2Q10 |
-1.0 | % | 0.2 | % | 1.1 | % | 2.4 | % | 1.0 | % | 1.8 | % | 1.1 | % | -2.7 | % | | | 0.1 | % | ||||||||||||||||||||||||
3Q10 |
1.4 | % | 2.8 | % | 3.0 | % | 3.7 | % | 2.7 | % | 3.6 | % | 3.2 | % | 1.6 | % | -13.9 | % | | 2.3 | % | |||||||||||||||||||||||
4Q10 |
-0.6 | % | 1.2 | % | 0.6 | % | 1.4 | % | 0.0 | % | 1.7 | % | -0.6 | % | 0.0 | % | -12.5 | % | | 0.1 | % | |||||||||||||||||||||||
2010 |
-1.1 | % | 0.2 | % | 0.7 | % | 1.5 | % | 0.4 | % | 1.6 | % | 0.7 | % | -1.2 | % | -13.0 | % | | -0.1 | % |
(1) | Includes all restaurants opened in the period indicated. |
|
(2) | A unit becomes comparable in the eighteenth month of operation. |
|
(3) | Comparable store sales for each quarter of fiscal 2010 reflect results from the 13 week
operating period in the current year compared to the same 13 week operating period in the prior
year. Comparable store sales for fiscal 2010 reflect results from the 52 week operating period in
the current year compared to the same 52 week operating period in the prior year. |
Page 9 of 10
Pei Wei Asian Diner
Supplemental Sales Information
Year of Unit Opening (1) |
||||||||||||||||||||||||||||||||||||||||||||
Pre-2002 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | Total | ||||||||||||||||||||||||||||||||||
Units | 5 | 11 | 17 | 19 | 23 | 27 | 32 | 25 | 7 | 2 | 168 | |||||||||||||||||||||||||||||||||
Sales (000) |
||||||||||||||||||||||||||||||||||||||||||||
1Q10 |
2,748 | 5,557 | 8,770 | 10,017 | 11,151 | 13,175 | 13,954 | 10,399 | 3,075 | 570 | 79,416 | |||||||||||||||||||||||||||||||||
2Q10 |
2,587 | 5,240 | 8,566 | 9,865 | 11,038 | 13,093 | 13,798 | 10,434 | 3,005 | 511 | 78,137 | |||||||||||||||||||||||||||||||||
3Q10 |
2,463 | 5,050 | 8,260 | 9,583 | 10,813 | 12,898 | 13,418 | 10,079 | 2,900 | 726 | 76,190 | |||||||||||||||||||||||||||||||||
4Q10 |
2,649 | 5,163 | 8,383 | 9,518 | 10,800 | 12,701 | 13,213 | 10,072 | 2,942 | 888 | 76,329 | |||||||||||||||||||||||||||||||||
2010 |
10,447 | 21,010 | 33,979 | 38,983 | 43,802 | 51,867 | 54,383 | 40,984 | 11,922 | 2,695 | 310,072 | |||||||||||||||||||||||||||||||||
Average Weekly Sales (AWS) |
||||||||||||||||||||||||||||||||||||||||||||
1Q10 |
42,270 | 38,861 | 39,683 | 40,556 | 37,295 | 37,535 | 33,543 | 31,997 | 33,796 | 47,443 | 36,597 | |||||||||||||||||||||||||||||||||
2Q10 |
39,801 | 36,645 | 38,762 | 39,938 | 36,915 | 37,302 | 33,169 | 32,104 | 33,025 | 39,308 | 35,991 | |||||||||||||||||||||||||||||||||
3Q10 |
37,893 | 35,317 | 37,374 | 38,797 | 36,165 | 36,747 | 32,253 | 31,013 | 31,864 | 38,211 | 34,998 | |||||||||||||||||||||||||||||||||
4Q10 |
40,753 | 36,103 | 37,930 | 38,534 | 36,122 | 36,185 | 31,763 | 30,991 | 32,330 | 34,154 | 34,950 | |||||||||||||||||||||||||||||||||
2010 |
40,179 | 36,731 | 38,437 | 39,456 | 36,624 | 36,942 | 32,682 | 31,526 | 32,754 | 38,505 | 35,632 | |||||||||||||||||||||||||||||||||
Year-Over-Year Change Comparable Store Sales (2)(3) |
||||||||||||||||||||||||||||||||||||||||||||
Units |
5 | 11 | 17 | 19 | 23 | 27 | 32 | 25 | 4 | | 163 | |||||||||||||||||||||||||||||||||
1Q10 |
1.8 | % | 0.6 | % | 0.7 | % | -0.2 | % | 2.5 | % | 3.5 | % | 4.1 | % | 2.4 | % | | | 2.2 | % | ||||||||||||||||||||||||
2Q10 |
1.4 | % | 0.2 | % | 2.3 | % | 1.7 | % | 3.1 | % | 4.2 | % | 3.7 | % | 3.8 | % | | | 3.0 | % | ||||||||||||||||||||||||
3Q10 |
-0.6 | % | -1.3 | % | -0.2 | % | -0.9 | % | 1.1 | % | 1.9 | % | 1.2 | % | 2.9 | % | -2.6 | % | | 0.8 | % | |||||||||||||||||||||||
4Q10 |
4.0 | % | -0.3 | % | 1.1 | % | 1.5 | % | 1.7 | % | 1.1 | % | 0.3 | % | 2.7 | % | 2.5 | % | | 1.3 | % | |||||||||||||||||||||||
2010 |
1.7 | % | -0.2 | % | 1.0 | % | 0.5 | % | 2.1 | % | 2.7 | % | 2.4 | % | 3.0 | % | 0.7 | % | | 1.8 | % |
(1) | Includes all restaurants opened in the period indicated. |
|
(2) | A unit becomes comparable in the eighteenth month of operation. |
|
(3) | Comparable store sales for each quarter of fiscal 2010 reflect results from the 13 week
operating period in the current year compared to the same 13 week operating period in the prior
year. Comparable store sales for fiscal 2010 reflect results from the 52 week operating period in
the current year compared to the same 52 week operating period in the prior year. |
Page 10 of 10