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8-K - 8-K - P F CHANGS CHINA BISTRO INC | q311earningsrelease.htm |
EX-99.2 - EX-99.2 - P F CHANGS CHINA BISTRO INC | ex992transcript.htm |
P.F. Chang's China Bistro, Inc. |
P.F. CHANG'S REPORTS THIRD QUARTER 2011 RESULTS
SCOTTSDALE, ARIZONA, October 27, 2011 - P.F. Chang's China Bistro, Inc. (NASDAQ: PFCB) today reported financial results for the third quarter of fiscal 2011, which ended on October 2, 2011. Total revenues were $300.6 million in the third quarter of fiscal 2011 as compared to $308.4 million in the prior year. For the three months ended October 2, 2011 and October 3, 2010, net income was $6.3 million and $10.5 million, respectively, and diluted net income per share was $0.29 and $0.45, respectively.
Results for the third quarter of fiscal 2011 included the benefit of lower share-based compensation expense ($0.21 per share), the impact of non-cash asset impairment charges related to three restaurants that continue to operate ($0.16 per share) and charges related to the departure of the Bistro's Chief Operating Officer and the streamlining of certain support functions during the third quarter of fiscal 2011 ($0.03 per share).
Comparable Store Sales
Comparable store sales decreased 3.7% at the Bistro and 3.6% at Pei Wei in the third quarter of 2011 due, in both cases, to declines in guest traffic. Current quarter comparable store sales at the Bistro were impacted by approximately 40 basis points due to Hurricane Irene. Quarterly sales results include a one to two percent menu price increase at the Bistro and a two to three percent menu price increase at Pei Wei.
On a monthly basis, comparable store sales for July, August and September decreased 4.6%, 4.1%, and 2.2%, respectively, at the Bistro and decreased 3.9%, 3.7%, and 3.0%, respectively, at Pei Wei. August comparable store sales at the Bistro were impacted by approximately 130 basis points due to Hurricane Irene.
2011 Expectations
The Company anticipates that full year fiscal 2011 consolidated revenues will be flat to slightly down from fiscal 2010, which assumes estimated same store sales declines of two to three percent at both concepts. The Company also expects fiscal 2011 restaurant operating income to decline approximately 150 basis points compared to fiscal 2010. Overall, the Company continues to expect consolidated diluted earnings per share to range from $1.60 to $1.70 for fiscal 2011.
The Company expects to open two new Bistro restaurants during the fourth quarter of fiscal 2011. In addition, the Company expects its international partners to collectively open two Bistro restaurants and the first Pei Wei restaurant in international markets during the fourth quarter of fiscal 2011.
The Company also expects the first two Pei Wei Asian Diner airport locations to open late this year through a licensing agreement.
2012 Development
The Company currently expects to open three to five new Bistro restaurants and 16 to 20 new Pei Wei restaurants during fiscal 2012.
In addition, the Company expects its international partners to open approximately 12 Bistro restaurants and two Pei Wei restaurants through licensing agreements during fiscal 2012. Also, through licensing agreements, the Company expects three Pei Wei airport locations to open during fiscal 2012.
Share Repurchase Program
During the third quarter of fiscal 2011, the Company repurchased 1.2 million shares of common stock for $35.6 million, fully utilizing the remaining amount available under the current share repurchase authorization.
On October 17, 2011, the Company's Board of Directors authorized a new share repurchase program under which the
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Company may repurchase up to $100.0 million of its outstanding shares of common stock from time to time in the open market or in private transactions at prevailing market prices during the period ending December 31, 2013.
Credit Facility
On October 26, 2011, the Company amended and restated its Credit Facility to provide additional flexibility in its capital structure. The amendment increased the borrowings allowed to $150.0 million from $75.0 million and extended the expiration to October 25, 2016 from August 30, 2013.
Quarterly Dividend
The Company's Board of Directors authorized a cash dividend payment of $0.25 per share on the Company's outstanding common stock. The next quarterly dividend is payable on November 21, 2011 to shareholders of record at the close of business on November 7, 2011.
Definitions
The following definitions apply to these terms as used throughout this release:
• | 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. |
Conference Call Information
The Company is hosting a conference call today at 8:30 am Eastern Time during which management will provide further details on the third quarter results. A webcast of the call can be accessed through the company's website at www.pfcb.com.
About the Company
P.F. Chang's China Bistro, Inc. owns and operates two restaurant concepts in the Asian niche. P.F. Chang's 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. Chang's 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 Company's 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 Company's restaurants but excludes preopening expenses and partner investment expense. Because preopening and partner investment expenses are associated with expansion of the Company's 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 Company's consolidated financial presentation as these costs relate to support of both restaurant concepts and the extension of the Company's brands into international markets and retail products. As the Company's 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 5 through 7 of this press release for a reconciliation of restaurant operating income to the most directly comparable GAAP measure, income from operations.
Note with respect to forward-looking statements
The statements contained in this press release that are not purely historical, including the Company's 2011 expectations, 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 Company's existing or new restaurants to achieve expected results; damage to our brands or reputation; inability to successfully expand our operations; 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
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the Company's business; adverse impact if information technology and computer systems do not perform properly. More detailed information about the Company and the risk factors that may affect the realization of any forward-looking statements is set forth in the Company's filings with the SEC, including its Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement and the Company undertakes no obligation to revise or update this press release to reflect events or circumstances after the date hereof. This caution is made under the safe harbor provisions of Section 21E of the Private Securities Litigation Reform Act of 1995.
Contacts: | |||
Investor: | Allison Schulder | (480) 888-3000 | allison.schulder@pfcb.com |
Media: | Krissy Zotaley | (312) 577-1764 | kzotaley@oco.com |
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P.F. Chang's China Bistro, Inc. | ||||||||||||||||
Consolidated Statements of Operations | ||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
13 Weeks Ended | 39 Weeks Ended | |||||||||||||||
October 2, | October 3, | October 2, | October 3, | |||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Revenues: | ||||||||||||||||
Restaurant sales | $ | 298,976 | $ | 307,499 | $ | 924,921 | $ | 929,243 | ||||||||
Restaurant licensing | 764 | 394 | 2,097 | 1,631 | ||||||||||||
Retail licensing | 877 | 517 | 1,982 | 745 | ||||||||||||
Total revenues | 300,617 | 308,410 | 929,000 | 931,619 | ||||||||||||
Costs and expenses: | ||||||||||||||||
Cost of sales | 77,821 | 78,380 | 243,318 | 244,110 | ||||||||||||
Labor | 102,146 | 101,620 | 313,931 | 308,390 | ||||||||||||
Operating | 54,456 | 52,058 | 160,734 | 156,408 | ||||||||||||
Occupancy | 18,390 | 18,504 | 55,496 | 54,951 | ||||||||||||
General and administrative (1) | 12,664 | 23,226 | 52,108 | 62,044 | ||||||||||||
Depreciation and amortization (2) | 24,845 | 19,318 | 65,323 | 57,654 | ||||||||||||
Preopening expense | 629 | 572 | 1,240 | 1,537 | ||||||||||||
Partner investment expense | (60 | ) | (147 | ) | (236 | ) | (271 | ) | ||||||||
Total costs and expenses | 290,891 | 293,531 | 891,914 | 884,823 | ||||||||||||
Income from operations | 9,726 | 14,879 | 37,086 | 46,796 | ||||||||||||
Interest and other income (expense), net | (947 | ) | 175 | (615 | ) | (905 | ) | |||||||||
Income from continuing operations before taxes | 8,779 | 15,054 | 36,471 | 45,891 | ||||||||||||
Provision for income taxes | (2,439 | ) | (4,417 | ) | (10,137 | ) | (13,349 | ) | ||||||||
Income from continuing operations, net of tax | 6,340 | 10,637 | 26,334 | 32,542 | ||||||||||||
Income (loss) from discontinued operations, net of tax | 10 | — | (19 | ) | 6 | |||||||||||
Net income | 6,350 | 10,637 | 26,315 | 32,548 | ||||||||||||
Less net income attributable to noncontrolling interests | 39 | 172 | 316 | 619 | ||||||||||||
Net income attributable to PFCB | $ | 6,311 | $ | 10,465 | $ | 25,999 | $ | 31,929 | ||||||||
Basic income per share: | ||||||||||||||||
Income from continuing operations attributable to PFCB common stockholders | $ | 0.29 | $ | 0.46 | $ | 1.18 | $ | 1.41 | ||||||||
Income (loss) from discontinued operations, net of tax, attributable to PFCB common stockholders | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||
Net income attributable to PFCB common stockholders | $ | 0.29 | $ | 0.46 | $ | 1.18 | $ | 1.41 | ||||||||
Diluted income per share: | ||||||||||||||||
Income from continuing operations attributable to PFCB common stockholders | $ | 0.29 | $ | 0.45 | $ | 1.16 | $ | 1.38 | ||||||||
Income (loss) from discontinued operations, net of tax, attributable to PFCB common stockholders | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||
Net income attributable to PFCB common stockholders | $ | 0.29 | $ | 0.45 | $ | 1.16 | $ | 1.38 | ||||||||
Weighted average shares used in computation: | ||||||||||||||||
Basic | 21,479 | 22,697 | 22,084 | 22,719 | ||||||||||||
Diluted | 21,758 | 23,070 | 22,413 | 23,150 | ||||||||||||
Cash dividends declared per share | $ | 0.25 | $ | 0.21 | $ | 0.71 | $ | 0.63 | ||||||||
Amounts attributable to PFCB: | ||||||||||||||||
Income from continuing operations, net of tax | $ | 6,301 | $ | 10,465 | $ | 26,018 | $ | 31,923 | ||||||||
Income (loss) from discontinued operations, net of tax | 10 | — | (19 | ) | 6 | |||||||||||
Net income attributable to PFCB | $ | 6,311 | $ | 10,465 | $ | 25,999 | $ | 31,929 |
(1) | General and administrative includes the benefit of lower share-based compensation expense of $6.2 million and charges related to separation agreements of $1.0 million during the three months ended October 2, 2011. |
(2) | Depreciation and amortization includes the impact of non-cash asset impairment charges of $4.8 million related to three restaurants that continue to operate during the three months ended October 2, 2011. |
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P.F. Chang's China Bistro, Inc. | ||||||||||||||||||||||||||||||||
Supplemental Financial Information | ||||||||||||||||||||||||||||||||
2009 (3) | 1Q10 | 2Q10 | 3Q10 | 4Q10 | 2010 | 1Q11 | 2Q11 | 3Q11 | YTD Q3 2011 | |||||||||||||||||||||||
Units | 363 | 364 | 366 | 368 | 369 | 369 | 372 | 374 | 375 | 375 | ||||||||||||||||||||||
Sales weeks | 18,756 | 4,731 | 4,736 | 4,770 | 4,791 | 19,028 | 4,819 | 4,852 | 4,859 | 14,530 | ||||||||||||||||||||||
AWS | 65,482 | 65,604 | 66,055 | 64,656 | 64,951 | 65,314 | 65,858 | 64,100 | 61,868 | 63,937 | ||||||||||||||||||||||
Revenues (1) | ||||||||||||||||||||||||||||||||
Restaurant sales | 1,228,045 | 310,242 | 311,502 | 307,499 | 310,260 | 1,239,503 | 316,304 | 309,641 | 298,976 | 924,921 | ||||||||||||||||||||||
Restaurant licensing | 134 | 129 | 1,108 | 394 | 474 | 2,105 | 684 | 649 | 764 | 2,097 | ||||||||||||||||||||||
Retail licensing | — | — | 228 | 517 | 446 | 1,191 | 381 | 724 | 877 | 1,982 | ||||||||||||||||||||||
Total revenues | 1,228,179 | 310,371 | 312,838 | 308,410 | 311,180 | 1,242,799 | 317,369 | 311,014 | 300,617 | 929,000 | ||||||||||||||||||||||
Operating costs | ||||||||||||||||||||||||||||||||
Cost of sales | 326,421 | 84,013 | 81,717 | 78,380 | 80,621 | 324,731 | 83,322 | 82,175 | 77,821 | 243,318 | ||||||||||||||||||||||
Labor | 401,583 | 104,475 | 102,295 | 101,620 | 101,610 | 410,000 | 106,464 | 105,321 | 102,146 | 313,931 | ||||||||||||||||||||||
Operating | 203,859 | 52,753 | 51,597 | 52,058 | 51,886 | 208,294 | 53,807 | 52,471 | 54,456 | 160,734 | ||||||||||||||||||||||
Occupancy | 70,635 | 17,838 | 18,609 | 18,504 | 18,756 | 73,707 | 18,425 | 18,681 | 18,390 | 55,496 | ||||||||||||||||||||||
Net income attributable to noncontrolling interests | 1,408 | 206 | 241 | 172 | 165 | 784 | 157 | 120 | 39 | 316 | ||||||||||||||||||||||
Depreciation & amortization | 74,429 | 19,001 | 19,335 | 19,318 | 19,832 | 77,486 | 19,698 | 20,780 | 24,845 | 65,323 | ||||||||||||||||||||||
Restaurant operating income | 149,844 | 32,085 | 39,044 | 38,358 | 38,310 | 147,797 | 35,496 | 31,466 | 22,920 | 89,882 | ||||||||||||||||||||||
Development costs | ||||||||||||||||||||||||||||||||
Preopening expense | 3,919 | 133 | 832 | 572 | 439 | 1,976 | 398 | 213 | 629 | 1,240 | ||||||||||||||||||||||
Partner investment expense | (629 | ) | 11 | (135 | ) | (147 | ) | (47 | ) | (318 | ) | (126 | ) | (50 | ) | (60 | ) | (236 | ) | |||||||||||||
Other expenses | ||||||||||||||||||||||||||||||||
General and administrative (2) | 82,749 | 19,053 | 19,765 | 23,226 | 19,839 | 81,883 | 20,280 | 19,164 | 12,664 | 52,108 | ||||||||||||||||||||||
Interest and other (income) expense, net | 1,637 | 415 | 665 | (175 | ) | (333 | ) | 572 | (204 | ) | (128 | ) | 947 | 615 | ||||||||||||||||||
Provision for income taxes | 18,492 | 3,788 | 5,144 | 4,417 | 3,773 | 17,122 | 4,555 | 3,143 | 2,439 | 10,137 | ||||||||||||||||||||||
Income from continuing operations | 43,676 | 8,685 | 12,773 | 10,465 | 14,639 | 46,562 | 10,593 | 9,124 | 6,301 | 26,018 | ||||||||||||||||||||||
Income (loss) from discontinued operations, net of tax | (479 | ) | 6 | — | — | 40 | 46 | 3 | (32 | ) | 10 | (19 | ) | |||||||||||||||||||
Net income attributable to PFCB | 43,197 | 8,691 | 12,773 | 10,465 | 14,679 | 46,608 | 10,596 | 9,092 | 6,311 | 25,999 | ||||||||||||||||||||||
Income from continuing operations per FDS | $ | 1.87 | $ | 0.38 | $ | 0.55 | $ | 0.45 | $ | 0.64 | $ | 2.01 | $ | 0.46 | $ | 0.40 | $ | 0.29 | $ | 1.16 | ||||||||||||
Fully diluted shares (FDS) | 23,413 | 23,104 | 23,277 | 23,070 | 23,011 | 23,115 | 22,901 | 22,581 | 21,758 | 22,413 | ||||||||||||||||||||||
Revenues | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||
Cost of sales | 26.6 | % | 27.1 | % | 26.1 | % | 25.4 | % | 25.9 | % | 26.1 | % | 26.3 | % | 26.4 | % | 25.9 | % | 26.2 | % | ||||||||||||
Labor | 32.7 | % | 33.7 | % | 32.7 | % | 32.9 | % | 32.7 | % | 33.0 | % | 33.5 | % | 33.9 | % | 34.0 | % | 33.8 | % | ||||||||||||
Operating | 16.6 | % | 17.0 | % | 16.5 | % | 16.9 | % | 16.7 | % | 16.8 | % | 17.0 | % | 16.9 | % | 18.1 | % | 17.3 | % | ||||||||||||
Occupancy | 5.8 | % | 5.7 | % | 5.9 | % | 6.0 | % | 6.0 | % | 5.9 | % | 5.8 | % | 6.0 | % | 6.1 | % | 6.0 | % | ||||||||||||
Net income attributable to noncontrolling interests | 0.1 | % | 0.1 | % | 0.1 | % | 0.1 | % | 0.1 | % | 0.1 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | ||||||||||||
Depreciation & amortization | 6.1 | % | 6.1 | % | 6.2 | % | 6.3 | % | 6.4 | % | 6.2 | % | 6.2 | % | 6.7 | % | 8.3 | % | 7.0 | % | ||||||||||||
Restaurant operating income | 12.2 | % | 10.3 | % | 12.5 | % | 12.4 | % | 12.3 | % | 11.9 | % | 11.2 | % | 10.1 | % | 7.6 | % | 9.7 | % | ||||||||||||
Preopening expenses | 0.3 | % | 0.0 | % | 0.3 | % | 0.2 | % | 0.1 | % | 0.2 | % | 0.1 | % | 0.1 | % | 0.2 | % | 0.1 | % | ||||||||||||
Partner investment expense | (0.1%) | 0.0 | % | (0.0%) | (0.0%) | (0.0%) | (0.0%) | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | |||||||||||||||||
General and administrative (2) | 6.7 | % | 6.1 | % | 6.3 | % | 7.5 | % | 6.4 | % | 6.6 | % | 6.4 | % | 6.2 | % | 4.2 | % | 5.6 | % | ||||||||||||
Interest and other (income) expense, net | 0.1 | % | 0.1 | % | 0.2 | % | (0.1%) | (0.1%) | 0.0 | % | (0.1%) | 0.0 | % | 0.3 | % | 0.1 | % | |||||||||||||||
Provision for income taxes | 1.5 | % | 1.2 | % | 1.6 | % | 1.4 | % | 1.2 | % | 1.4 | % | 1.4 | % | 1.0 | % | 0.8 | % | 1.1 | % | ||||||||||||
Income from continuing operations | 3.6 | % | 2.8 | % | 4.1 | % | 3.4 | % | 4.7 | % | 3.7 | % | 3.3 | % | 2.9 | % | 2.1 | % | 2.8 | % | ||||||||||||
Income (loss) from discontinued operations, net of tax | (0.0%) | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | |||||||||||||
Net income attributable to PFCB | 3.5 | % | 2.8 | % | 4.1 | % | 3.4 | % | 4.7 | % | 3.8 | % | 3.3 | % | 2.9 | % | 2.1 | % | 2.8 | % | ||||||||||||
Reconciliation of Non-GAAP Financial Information to GAAP measures: | ||||||||||||||||||||||||||||||||
Restaurant operating income | 149,844 | 32,085 | 39,044 | 38,358 | 38,310 | 147,797 | 35,496 | 31,466 | 22,920 | 89,882 | ||||||||||||||||||||||
Add: Net income attributable to noncontrolling interests | 1,408 | 206 | 241 | 172 | 165 | 784 | 157 | 120 | 39 | 316 | ||||||||||||||||||||||
Less: General and administrative (2) | (82,749 | ) | (19,053 | ) | (19,765 | ) | (23,226 | ) | (19,839 | ) | (81,883 | ) | (20,280 | ) | (19,164 | ) | (12,664 | ) | (52,108 | ) | ||||||||||||
Less: Preopening expense | (3,919 | ) | (133 | ) | (832 | ) | (572 | ) | (439 | ) | (1,976 | ) | (398 | ) | (213 | ) | (629 | ) | (1,240 | ) | ||||||||||||
Less: Partner investment expense | 629 | (11 | ) | 135 | 147 | 47 | 318 | 126 | 50 | 60 | 236 | |||||||||||||||||||||
Income from operations | 65,213 | 13,094 | 18,823 | 14,879 | 18,244 | 65,040 | 15,101 | 12,259 | 9,726 | 37,086 |
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 |
(3) 2009 results were comprised of a 53 week operating year |
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Concept: P.F. Chang's China Bistro | ||||||||||||||||||||||
Supplemental Financial Information | ||||||||||||||||||||||
2009 | 1Q10 | 2Q10 | 3Q10 | 4Q10 | 2010 | 1Q11 | 2Q11 | 3Q11 | YTD Q3 2011 | |||||||||||||
Units | 197 | 197 | 199 | 200 | 201 | 201 | 201 | 201 | 202 | 202 | ||||||||||||
Sales weeks | 10,150 | 2,561 | 2,565 | 2,593 | 2,607 | 10,326 | 2,613 | 2,613 | 2,610 | 7,836 | ||||||||||||
AWS | 91,161 | 90,077 | 90,964 | 89,202 | 89,726 | 89,989 | 90,181 | 88,487 | 85,494 | 88,055 | ||||||||||||
Total revenues | 925,321 | 230,767 | 233,365 | 231,309 | 233,931 | 929,372 | 235,782 | 231,226 | 223,118 | 690,126 | ||||||||||||
Operating costs | ||||||||||||||||||||||
Cost of sales | 244,816 | 62,711 | 60,914 | 58,135 | 60,008 | 241,768 | 61,333 | 60,759 | 57,677 | 179,769 | ||||||||||||
Labor | 300,775 | 78,192 | 76,769 | 76,533 | 76,667 | 308,161 | 79,792 | 78,442 | 76,273 | 234,507 | ||||||||||||
Operating | 150,883 | 38,546 | 38,183 | 38,554 | 37,804 | 153,087 | 38,783 | 38,442 | 40,602 | 117,827 | ||||||||||||
Occupancy | 50,186 | 12,640 | 13,254 | 13,242 | 13,368 | 52,504 | 13,074 | 13,125 | 12,955 | 39,154 | ||||||||||||
Net income attributable to noncontrolling interests | 538 | 71 | 93 | 62 | 70 | 296 | 79 | 69 | 20 | 168 | ||||||||||||
Depreciation & amortization | 54,521 | 13,854 | 14,043 | 14,018 | 14,519 | 56,434 | 14,384 | 14,550 | 17,958 | 46,892 | ||||||||||||
Restaurant operating income | 123,602 | 24,753 | 30,109 | 30,765 | 31,495 | 117,122 | 28,337 | 25,839 | 17,633 | 71,809 | ||||||||||||
Total revenues | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||
Cost of sales | 26.5 | % | 27.2 | % | 26.1 | % | 25.1 | % | 25.7 | % | 26.0 | % | 26.0 | % | 26.3 | % | 25.9 | % | 26.0 | % | ||
Labor | 32.5 | % | 33.9 | % | 32.9 | % | 33.1 | % | 32.8 | % | 33.2 | % | 33.8 | % | 33.9 | % | 34.2 | % | 34.0 | % | ||
Operating | 16.3 | % | 16.7 | % | 16.4 | % | 16.7 | % | 16.2 | % | 16.5 | % | 16.4 | % | 16.6 | % | 18.2 | % | 17.1 | % | ||
Occupancy | 5.4 | % | 5.5 | % | 5.7 | % | 5.7 | % | 5.7 | % | 5.6 | % | 5.5 | % | 5.7 | % | 5.8 | % | 5.7 | % | ||
Net income attributable to noncontrolling interests | 0.1 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | ||
Depreciation & amortization | 5.9 | % | 6.0 | % | 6.0 | % | 6.1 | % | 6.2 | % | 6.1 | % | 6.1 | % | 6.3 | % | 8.0 | % | 6.8 | % | ||
Restaurant operating income | 13.4 | % | 10.7 | % | 12.9 | % | 13.3 | % | 13.5 | % | 12.6 | % | 12.0 | % | 11.2 | % | 7.9 | % | 10.4 | % | ||
Reconciliation of Non-GAAP Financial Information to GAAP measures: | ||||||||||||||||||||||
Restaurant operating income | 123,602 | 24,753 | 30,109 | 30,765 | 31,495 | 117,122 | 28,337 | 25,839 | 17,633 | 71,809 | ||||||||||||
Add: Net income attributable to noncontrolling interests | 538 | 71 | 93 | 62 | 70 | 296 | 79 | 69 | 20 | 168 | ||||||||||||
Less: Preopening expense | (2,835 | ) | (26 | ) | (765 | ) | (411 | ) | (265 | ) | (1,467 | ) | 2 | (28 | ) | (604 | ) | (630 | ) | |||
Less: Partner investment expense | 236 | — | — | — | — | — | — | — | — | — | ||||||||||||
Income from operations | 121,541 | 24,798 | 29,437 | 30,416 | 31,300 | 115,951 | 28,418 | 25,880 | 17,049 | 71,347 |
Note: General and administrative expenses are reflected in the Company’s consolidated results
6
Concept: Pei Wei Asian Diner (A) | ||||||||||||||||||||||
Supplemental Financial Information | ||||||||||||||||||||||
2009 | 1Q10 | 2Q10 | 3Q10 | 4Q10 | 2010 | 1Q11 | 2Q11 | 3Q11 | YTD Q3 2011 | |||||||||||||
Units | 166 | 167 | 167 | 168 | 168 | 168 | 171 | 173 | 173 | 173 | ||||||||||||
Sales weeks | 8,606 | 2,170 | 2,171 | 2,177 | 2,184 | 8,702 | 2,206 | 2,239 | 2,249 | 6,694 | ||||||||||||
AWS | 35,171 | 36,597 | 35,991 | 34,998 | 34,950 | 35,632 | 36,501 | 35,022 | 33,730 | 35,075 | ||||||||||||
Total revenues | 302,724 | 79,475 | 78,137 | 76,190 | 76,329 | 310,131 | 80,522 | 78,415 | 75,858 | 234,795 | ||||||||||||
Operating costs | ||||||||||||||||||||||
Cost of sales | 81,605 | 21,302 | 20,803 | 20,245 | 20,613 | 82,963 | 21,989 | 21,416 | 20,144 | 63,549 | ||||||||||||
Labor | 100,808 | 26,283 | 25,526 | 25,087 | 24,943 | 101,839 | 26,672 | 26,879 | 25,873 | 79,424 | ||||||||||||
Operating | 52,976 | 14,207 | 13,414 | 13,504 | 14,082 | 55,207 | 15,024 | 14,029 | 13,854 | 42,907 | ||||||||||||
Occupancy | 20,449 | 5,198 | 5,355 | 5,262 | 5,388 | 21,203 | 5,351 | 5,556 | 5,435 | 16,342 | ||||||||||||
Net income attributable to noncontrolling interests | 870 | 135 | 148 | 110 | 95 | 488 | 78 | 51 | 19 | 148 | ||||||||||||
Depreciation & amortization | 18,103 | 4,647 | 4,762 | 4,772 | 4,761 | 18,942 | 4,767 | 5,560 | 6,206 | 16,533 | ||||||||||||
Restaurant operating income | 27,913 | 7,703 | 8,129 | 7,210 | 6,447 | 29,489 | 6,641 | 4,924 | 4,327 | 15,892 | ||||||||||||
Total revenues | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||
Cost of sales | 27.0 | % | 26.8 | % | 26.6 | % | 26.6 | % | 27.0 | % | 26.8 | % | 27.3 | % | 27.3 | % | 26.6 | % | 27.1 | % | ||
Labor | 33.3 | % | 33.1 | % | 32.7 | % | 32.9 | % | 32.7 | % | 32.8 | % | 33.1 | % | 34.3 | % | 34.1 | % | 33.8 | % | ||
Operating | 17.5 | % | 17.9 | % | 17.2 | % | 17.7 | % | 18.4 | % | 17.8 | % | 18.7 | % | 17.9 | % | 18.3 | % | 18.3 | % | ||
Occupancy | 6.8 | % | 6.5 | % | 6.9 | % | 6.9 | % | 7.1 | % | 6.8 | % | 6.6 | % | 7.1 | % | 7.2 | % | 7.0 | % | ||
Net income attributable to noncontrolling interests | 0.3 | % | 0.2 | % | 0.2 | % | 0.1 | % | 0.1 | % | 0.2 | % | 0.1 | % | 0.1 | % | 0.0 | % | 0.1 | % | ||
Depreciation & amortization | 6.0 | % | 5.8 | % | 6.1 | % | 6.3 | % | 6.2 | % | 6.1 | % | 5.9 | % | 7.1 | % | 8.2 | % | 7.0 | % | ||
Restaurant operating income | 9.2 | % | 9.7 | % | 10.4 | % | 9.5 | % | 8.4 | % | 9.5 | % | 8.2 | % | 6.3 | % | 5.7 | % | 6.8 | % | ||
Reconciliation of Non-GAAP Financial Information to GAAP measures: | ||||||||||||||||||||||
Restaurant operating income | 27,913 | 7,703 | 8,129 | 7,210 | 6,447 | 29,489 | 6,641 | 4,924 | 4,327 | 15,892 | ||||||||||||
Add: Net income attributable to noncontrolling interests | 870 | 135 | 148 | 110 | 95 | 488 | 78 | 51 | 19 | 148 | ||||||||||||
Less: Preopening expense | (1,084 | ) | (107 | ) | (67 | ) | (161 | ) | (174 | ) | (509 | ) | (400 | ) | (185 | ) | (25 | ) | (610 | ) | ||
Less: Partner investment expense | 393 | (11 | ) | 135 | 147 | 47 | 318 | 126 | 50 | 60 | 236 | |||||||||||
Income from operations | 28,092 | 7,720 | 8,345 | 7,306 | 6,415 | 29,786 | 6,445 | 4,840 | 4,381 | 15,666 |
Note: General and administrative expenses are reflected in the Company’s consolidated results
(A) All current and historical operating results related to closed Pei Wei restaurants are reflected within discontinued operations for all periods presented
7
P.F. Chang's China Bistro | ||||||||||||||
Supplemental Sales Information (Company Owned) | ||||||||||||||
Year of Unit Opening (1) | ||||||||||||||
Pre-2003 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | Total | ||||
Units | 78 | 18 | 18 | 18 | 20 | 20 | 17 | 8 | 4 | 1 | 202 | |||
Sales (000) | ||||||||||||||
1Q11 | 101,661 | 22,626 | 18,627 | 18,865 | 21,852 | 22,395 | 17,146 | 8,169 | 4,302 | — | 235,643 | |||
2Q11 | 99,024 | 22,227 | 18,929 | 18,425 | 21,522 | 22,117 | 16,720 | 7,955 | 4,297 | — | 231,216 | |||
3Q11 | 94,837 | 21,456 | 18,708 | 17,793 | 20,618 | 21,425 | 16,052 | 7,847 | 4,047 | 355 | 223,138 | |||
2011 | 295,522 | 66,309 | 56,264 | 55,083 | 63,992 | 65,937 | 49,918 | 23,971 | 12,646 | 355 | 689,997 | |||
Average Weekly Sales (AWS) | ||||||||||||||
1Q11 | 100,257 | 96,694 | 79,602 | 80,618 | 84,045 | 86,133 | 77,586 | 78,551 | 82,724 | — | 90,181 | |||
2Q11 | 97,656 | 94,987 | 80,896 | 78,739 | 82,778 | 85,066 | 75,658 | 76,490 | 82,627 | — | 88,487 | |||
3Q11 | 94,085 | 91,693 | 79,948 | 76,040 | 79,300 | 82,404 | 72,631 | 75,456 | 77,824 | 118,172 | 85,494 | |||
2011 | 97,339 | 94,458 | 80,148 | 78,466 | 82,041 | 84,534 | 75,292 | 76,832 | 81,058 | 118,172 | 88,055 | |||
Year-Over-Year Change Comparable Store Sales (2) | ||||||||||||||
Units | 78 | 18 | 18 | 18 | 20 | 20 | 17 | 8 | — | — | 197 | |||
1Q11 | 0.8% | 0.4% | 2.5% | 0.1% | 0.6% | -0.7% | 1.1% | -7.3% | — | — | 0.5% | |||
2Q11 | -2.0% | -2.5% | -0.5% | -3.2% | -1.9% | -3.5% | -4.4% | -7.9% | — | — | -2.5% | |||
3Q11 | -3.5% | -4.3% | -1.6% | -3.5% | -2.9% | -4.4% | -5.7% | -6.9% | — | — | -3.7% | |||
2011 | -1.6% | -2.1% | 0.1% | -2.2% | -1.4% | -2.8% | -3.0% | -7.4% | — | — | -1.9% | |||
(1) Includes all restaurants opened in the period indicated. | ||||||||||||||
(2) A unit becomes comparable in the eighteenth month of operation. | ||||||||||||||
8
Pei Wei Asian Diner | ||||||||||||
Supplemental Sales Information | ||||||||||||
Year of Unit Opening (1) | ||||||||||||
Pre-2003 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | Total | ||
Units | 16 | 17 | 19 | 23 | 27 | 32 | 25 | 7 | 2 | 5 | 173 | |
Sales (000) | ||||||||||||
1Q11 | 7,956 | 8,638 | 10,048 | 11,243 | 13,240 | 14,022 | 10,515 | 3,035 | 892 | 933 | 80,522 | |
2Q11 | 7,587 | 8,351 | 9,547 | 10,882 | 12,790 | 13,272 | 10,174 | 2,901 | 807 | 2,104 | 78,415 | |
3Q11 | 7,295 | 8,033 | 9,241 | 10,501 | 12,427 | 12,798 | 9,687 | 2,812 | 795 | 2,269 | 75,858 | |
2011 | 22,838 | 25,022 | 28,836 | 32,626 | 38,457 | 40,092 | 30,376 | 8,748 | 2,494 | 5,306 | 234,795 | |
Average Weekly Sales (AWS) | ||||||||||||
1Q11 | 38,247 | 39,085 | 40,678 | 37,603 | 37,721 | 33,707 | 32,353 | 33,350 | 34,323 | 42,421 | 36,501 | |
2Q11 | 36,477 | 37,787 | 38,653 | 36,393 | 36,439 | 31,904 | 31,304 | 31,879 | 31,014 | 38,242 | 35,022 | |
3Q11 | 35,074 | 36,347 | 37,414 | 35,121 | 35,404 | 30,764 | 29,807 | 30,904 | 30,587 | 34,903 | 33,730 | |
2011 | 36,600 | 37,740 | 38,915 | 36,372 | 36,521 | 32,125 | 31,155 | 32,044 | 31,974 | 37,361 | 35,075 | |
Year-Over-Year Change Comparable Store Sales (2) | ||||||||||||
Units | 16 | 17 | 19 | 23 | 27 | 32 | 25 | 7 | 1 | — | 167 | |
1Q11 | -4.2% | -1.5% | 0.3% | 0.8% | 0.5% | 0.5% | 1.1% | -0.7% | — | — | -0.2% | |
2Q11 | -3.1% | -2.5% | -3.2% | -1.4% | -2.3% | -3.8% | -2.5% | -3.5% | -9.8% | — | -2.7% | |
3Q11 | -2.9% | -2.7% | -3.6% | -2.9% | -3.7% | -4.6% | -3.9% | -3.0% | -10.3% | — | -3.6% | |
2011 | -3.4% | -2.2% | -2.1% | -1.1% | -1.8% | -2.6% | -1.7% | -2.5% | -10.2% | — | -2.1% | |
(1) Includes all restaurants opened in the period indicated. | ||||||||||||
(2) A unit becomes comparable in the eighteenth month of operation. | ||||||||||||
9