Bojangles’, Inc. (Bojangles’) (NASDAQ:BOJA) today announced
financial results for the 13-week fourth fiscal quarter and 52-week
fiscal year ended December 27, 2015. We also introduced
guidance for the fiscal year 2016, which is a 52-week period ending
on December 25, 2016.
Financial Highlights for the Fourth
Fiscal Quarter 2015 Compared to the Fourth Fiscal Quarter
2014
- System-wide comparable restaurant sales increased 0.6%;
- Total revenues increased 9.6% to $128.8 million from $117.4
million;
- 16 system-wide restaurants were opened -- 9 company-operated
restaurants and 7 franchised restaurants;
- Net Income decreased slightly to $7.8 million from $7.9
million;
- Pro Forma Net Income* increased 6.9% to $8.2 million from $7.7
million;
- Pro Forma Diluted Net Income per Share* increased 4.8% to $0.22
compared to $0.21; and
- Adjusted EBITDA* increased 4.8% to $21.3 million from $20.3
million.
Financial Highlights for the Fiscal Year
2015 Compared to the Fiscal Year 2014
- System-wide comparable restaurant sales increased 4.1%;
- Total revenues increased 13.4% to $488.2 million from $430.5
million;
- 63 system-wide restaurants were opened -- 29 company-operated
restaurants and 34 franchised restaurants;
- Net Income increased to $26.5 million from $26.1 million;
- Pro Forma Net Income* increased 29.6% to $31.1 million from
$24.0 million;
- Pro Forma Diluted Net Income per Share* increased 29.7% to
$0.83 compared to $0.64; and
- Adjusted EBITDA* increased 15.1% to $79.3 million from $68.9
million.
* Pro Forma Net Income, Pro Forma Diluted Net
Income per Share and Adjusted EBITDA are non-GAAP measures.
Please see “Use and Definition of Non-GAAP Measures” and the
reconciliation tables accompanying this release.
“We exceeded our previously-raised annual
adjusted EBITDA and earnings guidance, and we extended our record
of positive system-wide comparable restaurant sales to 23
consecutive quarters in the face of significant competitive
discounting, a competitor introducing breakfast all day, and
catastrophic flooding in the Carolinas during the fourth fiscal
quarter. Our two- and three-year stacked system-wide
comparable restaurant sales for the fourth fiscal quarter increased
7.7% and 10.6%, respectively. I am delighted in what our team
accomplished in fiscal 2015 and look forward to what we can achieve
in fiscal 2016. Our iconic Bojangles’® brand connects well
with customers across all generations with a menu and diversified
day-part mix that is distinct from our peers. Bojangles’ is
further blessed with strong leadership executing a strategy to
create the best guest experience possible at all our restaurants
and grow the organization in a smart and measured way,” said
Bojangles’ President and CEO Clifton Rutledge.
“We expect to continue delivering on our stated
goals through targeted plans for fiscal 2016 that build upon our
solid fiscal 2015 performance. We intend to grow the
Bojangles’ system by approximately 8% in net unit count this year
through development in adjacent areas within the Southeast and
infilling in our core North and South Carolina markets. While
doing so, we intend to uphold our commitment to operational
excellence based upon our people and Bo-Size Service strategies,
enhance our technological platform, and foster better awareness and
stronger loyalty through social and digital engagement. My
enthusiasm for this brand and the opportunities ahead of us is
shared by our team members and franchise partners across more than
660 Bojangles’ restaurants,” he concluded.
Fourth Fiscal Quarter 2015 Financial
ReviewSystem-wide comparable restaurant sales increased
0.6%, consisting of company-operated and franchised comparable
restaurant sales growth of 0.7% and 0.6%, respectively.
Comparable restaurant sales growth at company-operated
restaurants was due to increases in price, offset by lower
transactions and mix.
Total revenues increased 9.6% to $128.8 million
in the fourth fiscal quarter of 2015 from $117.4 million in the
prior year fiscal quarter. The increase was primarily due to
an additional net 40 system-wide restaurants at December 27, 2015
compared to December 28, 2014, and comparable restaurant sales
growth at our company-operated and franchised restaurants.
Company restaurant revenues increased 9.9% to
$122.2 million in the fourth fiscal quarter of 2015 from $111.2
million in the prior year fiscal quarter. Franchise royalty
revenues increased 5.0% to $6.4 million in the fourth fiscal
quarter of 2015 from $6.1 million in the prior year fiscal
quarter.
Restaurant contribution, a non-GAAP measure,
increased 5.8% to $23.1 million in the fourth fiscal quarter of
2015 from $21.8 million in the prior year fiscal quarter. As
a percentage of company restaurant revenues, restaurant
contribution margin, a non-GAAP measure, decreased to 18.9% in the
fourth fiscal quarter of 2015 from 19.6% in the prior year fiscal
quarter.
General and administrative expenses increased
8.8% to $10.2 million in the fourth fiscal quarter of 2015 from
$9.3 million in the prior year fiscal quarter. The increase
was primarily due to additional positions added to support an
increased number of restaurants in our system, additional costs as
a result of operating as a public company, and $0.4 million in
expenses incurred in connection with the transition to a new
distributor, partially offset by a reduction in performance-based
incentive compensation.
Adjusted EBITDA increased 4.8% to $21.3 million
in the fourth fiscal quarter of 2015 from $20.3 million in the
prior year fiscal quarter.
Net Income was $7.8 million in the fourth fiscal
quarter of 2015 compared to $7.9 million in the prior year fiscal
quarter.
Pro Forma Net Income increased 6.9% to $8.2
million in the fourth fiscal quarter of 2015 compared to $7.7
million in the prior year fiscal quarter. Pro Forma Diluted
Net Income per Share was $0.22 in the fourth fiscal quarter of 2015
compared to $0.21 in the prior year fiscal quarter.
Fiscal Year 2016 Guidance
Bojangles’ introduced its annual guidance for
the 52-week period ending on December 25, 2016:
- Total revenues of $533.0 million to $543.0 million;
- System-wide comparable restaurant sales growth of low-single
digits;
- The opening of 60 to 65 system-wide restaurants;
- 28 to 29 company-operated restaurants;
- 32 to 36 franchised restaurants;
- Net increase of 53 to 58 system-wide restaurants;
- 26 to 27 net increase of company-operated restaurants;
- 27 to 31 net increase of franchised restaurants;
- Restaurant contribution margin of 17.6% to 18.1%;
- General and administrative expenses between $40.0 million and
$41.5 million;
- Pro Forma Diluted Net Income per Share of $0.86 to $0.90;
and
- Adjusted EBITDA of $83.5 million to $86.5 million.
Conference Call and Webcast
TodayBojangles’ will host a conference call and webcast to
discuss the fourth fiscal quarter and fiscal year 2015 results and
fiscal year 2016 guidance today at 5:00 p.m. Eastern Time.
The conference call dial-in numbers are 1-877-705-6003 for domestic
toll-free calls and 1-201-493-6725 for international. A
telephone replay will be available through April 10, 2016 and may
be accessed by dialing 1-877-870-5176 for domestic toll-free calls
and 1-858-384-5517 for international. The conference ID is
13630426.
The conference call will also be webcast live
and later archived on the Investor Relations section of our website
at www.bojangles.com.
Conference
ParticipationBojangles’ will participate in the Bank of
America Merrill Lynch 2016 Consumer & Retail Tech Conference on
Wednesday, March 16, 2016 at The New York Palace Hotel in New York
City. In addition to holding investor meetings, we will
webcast our presentation live beginning at 8:50 a.m. Eastern Time.
The presentation will later be archived on the Investor
Relations section of the Company's website at
www.bojangles.com.
About Bojangles’,
Inc.Bojangles', Inc. is a highly differentiated and
growing restaurant operator and franchisor dedicated to serving
customers high-quality, craveable food made from our Southern
recipes. Founded in 1977 in Charlotte, NC, Bojangles' serves
menu items such as delicious, famous chicken, made-from-scratch
buttermilk biscuits, flavorful fixin's and Legendary Iced
Tea®. At December 27, 2015, Bojangles' had 662 system-wide
restaurants, of which 281 were company-operated and 381 were
franchised restaurants, primarily located in the Southeastern
United States. For more information, visit www.bojangles.com
or follow Bojangles' on Facebook and Twitter.
Use and Definition of Non-GAAP
MeasuresWe utilize certain non-GAAP measures when
assessing the operational strength and the performance of our
business. Bojangles’ cautions that non-GAAP measures should
be considered in addition to, but not as a substitute for, reported
GAAP results.
Comparable restaurant sales reflects the change
in year-over-year sales for the comparable restaurant base (as
applicable, system-wide, franchised or company-operated
restaurants). A restaurant enters our comparable restaurant
base the first full day of the month after being open for 15 months
using a mid-month convention.
Restaurant contribution is defined as company
restaurant revenues less food and supplies costs, restaurant labor
costs and operating costs, as identified by the reconciliation
table below. Restaurant contribution margin is defined as
restaurant contribution as a percentage of company restaurant
revenues. Restaurant contribution and restaurant contribution
margin are supplemental measures of operating performance of our
company-operated restaurants and our calculations thereof may not
be comparable to those reported by other companies.
Restaurant contribution and restaurant contribution margin have
limitations as analytical tools, and should not be considered in
isolation or as substitutes for analysis of our results as reported
under GAAP.
Pro Forma Net Income represents company net
income before items that we do not consider representative of our
ongoing operating performance, as well as an estimate of recurring
incremental legal, accounting, insurance and other operating and
compliance costs we expect to incur as a public company for those
periods where they had not yet been incurred, both as identified in
the reconciliation table below. Pro Forma Diluted Net Income
per Share represents company diluted net income per share before
items that we do not consider representative of our ongoing
operating performance, as well as an estimate of recurring
incremental legal, accounting, insurance and other operating and
compliance costs we expect to incur as a public company for those
periods where they had not yet been incurred, both as identified in
the reconciliation table below.
EBITDA represents company net income before
interest expense (net of interest income), provision for income
taxes and depreciation and amortization. Adjusted EBITDA represents
company net income before interest expense (net of interest
income), provision for income taxes, depreciation and amortization,
items that we do not consider representative of our ongoing
operating performance and certain non-cash items, as identified in
the reconciliation table below.
Pro Forma Net Income, Pro Forma Diluted Net
Income per Share, EBITDA and Adjusted EBITDA are supplemental
measures of our performance that are neither required by, nor
presented in accordance with, GAAP. Pro Forma Net Income, Pro
Forma Diluted Net Income per Share, EBITDA and Adjusted EBITDA are
not measurements of our financial performance under GAAP and should
not be considered as alternatives to net income, operating income
or any other performance measures derived in accordance with GAAP
or as alternatives to cash flow from operating activities as a
measure of our liquidity. In addition, in evaluating Pro
Forma Net Income, Pro Forma Diluted Net Income per Share, EBITDA
and Adjusted EBITDA, you should be aware that in the future we will
incur expenses or charges such as those added back to calculate Pro
Forma Net Income, Pro Forma Diluted Net Income per Share, EBITDA
and Adjusted EBITDA.
Forward-Looking StatementsThis
release contains forward-looking statements. All statements
other than statements of historical fact included in this release
are forward-looking statements. Forward-looking statements
discuss our current expectations, projections and guidance relating
to our financial condition, results of operations, plans,
objectives, future performance and business. These statements
may be preceded by, followed by or include the words “aim,”
“anticipate,” “believe,” “estimate,” “expect,” “forecast,”
“intend,” “outlook,” “plan,” “potential,” “project,” “projection,”
“seek,” “may,” “could,” “would,” “will,” “should,” “can,” “can
have,” “likely,” the negatives thereof and other words and terms of
similar meaning.
Forward-looking statements are inherently
subject to risks, uncertainties and assumptions; they are not
guarantees of performance. Actual results may differ
materially from these expectations due to risks relating to our
vulnerability to changes in consumer preferences and economic
conditions; our ability to open new restaurants and expand our
franchise system; our ability to generate comparable restaurant
sales growth; financial or other difficulties which could cause our
restaurants and our franchisees’ restaurants to close; our ability
to generate increased sales or profits from new menu items,
advertising campaigns and restaurant designs and remodels;
cancellation or delay in anticipated future restaurant openings;
our reliance on, limited degree of control over and potential
liability for, our franchisees; increases in the cost of chicken,
pork, dairy, wheat, corn and other products; our ability to compete
successfully with other quick-service and fast-casual restaurants;
our vulnerability to conditions in the Southeastern United States;
negative publicity, whether or not valid; concerns about food
safety and quality and about food-borne illnesses, including
adverse public perception due to the occurrence of avian flu, swine
flu or other food-borne illnesses; and our dependence upon frequent
and timely deliveries of restaurant food and other supplies.
For further details and discussion of these and other risks
and uncertainties, see our registration statement on Form S-1
(commission file number 333-203268), which was declared effective
by the Securities and Exchange Commission on May 7, 2015, our
periodic reports, including our current reports on Form 8-K and
quarterly reports on Form 10-Q, furnished or filed with the
Securities and Exchange Commission and available at
www.sec.gov. You should not place undue reliance on these
statements. We have based these forward-looking statements on our
current expectations and projections about future events.
Although we believe that our assumptions made in connection
with the forward-looking statements are reasonable, we cannot
assure you that the assumptions and expectations will prove to be
correct.
All forward-looking statements are expressly
qualified in their entirety by the foregoing cautionary statements.
In addition, all forward-looking statements speak only as of
the date of this earnings release. We undertake no
obligations to update or revise publicly any forward-looking
statements, whether as a result of new information, future events
or otherwise other than as required under the federal securities
laws.
BOJANGLES’, INC. AND
SUBSIDIARIES |
|
Unaudited Condensed Consolidated Balance
Sheets |
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
December 27, 2015 |
|
December 28, 2014 |
|
Current
assets: |
|
|
|
|
|
|
|
Cash and
cash equivalents |
$ |
14,263 |
|
|
13,201 |
|
|
|
Accounts
and vendor receivables, net |
|
4,736 |
|
|
4,285 |
|
|
|
Accounts
receivable, related parties, net |
|
403 |
|
|
736 |
|
|
|
Inventories, net |
|
3,080 |
|
|
2,743 |
|
|
|
Other
current assets |
|
5,639 |
|
|
2,669 |
|
|
|
|
|
|
|
Total
current assets |
|
28,121 |
|
|
23,634 |
|
|
|
Property
and equipment, net |
|
48,137 |
|
|
42,478 |
|
|
|
Goodwill |
|
|
|
161,140 |
|
|
161,140 |
|
|
|
Brand |
|
|
|
|
290,500 |
|
|
290,500 |
|
|
|
Franchise
rights, net |
|
25,341 |
|
|
26,438 |
|
|
|
Favorable
leases, net |
|
1,394 |
|
|
1,908 |
|
|
|
Deferred
debt issuance costs, net |
|
2,459 |
|
|
2,726 |
|
|
|
Other
noncurrent assets |
|
3,673 |
|
|
3,819 |
|
|
|
|
|
|
|
Total
assets |
$ |
560,765 |
|
|
552,643 |
|
|
Liabilities and Stockholders’
Equity |
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
Accounts
payable |
$ |
17,893 |
|
|
15,639 |
|
|
|
Accrued
expenses |
|
19,086 |
|
|
18,479 |
|
|
|
Current
maturities of long-term debt |
|
— |
|
|
— |
|
|
|
Current
maturities of capital lease obligations |
|
5,968 |
|
|
4,365 |
|
|
|
Other
current liabilities |
|
2,155 |
|
|
1,655 |
|
|
|
|
|
|
|
Total
current liabilities |
|
45,102 |
|
|
40,138 |
|
|
|
Long-term
debt, less current maturities |
|
200,194 |
|
|
228,249 |
|
|
|
Deferred
income taxes |
|
115,028 |
|
|
116,589 |
|
|
|
Capital
lease obligations, less current maturities |
|
21,483 |
|
|
20,144 |
|
|
|
Other
noncurrent liabilities |
|
11,834 |
|
|
9,771 |
|
|
|
|
|
|
|
Total
liabilities |
|
393,641 |
|
|
414,891 |
|
|
Stockholders’ equity: |
|
|
|
|
|
|
Preferred
stock |
|
— |
|
|
172,691 |
|
|
|
Common
stock |
|
360 |
|
|
— |
|
|
|
Additional
paid-in capital |
|
119,084 |
|
|
(56,220 |
) |
|
|
Retained
earnings |
|
47,661 |
|
|
21,135 |
|
|
|
Accumulated
other comprehensive income |
|
19 |
|
|
146 |
|
|
|
|
|
|
|
Total
stockholders’ equity |
|
167,124 |
|
|
137,752 |
|
|
|
|
|
|
|
Total
liabilities and stockholders’ equity |
$ |
560,765 |
|
|
552,643 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BOJANGLES’, INC. AND
SUBSIDIARIES |
Unaudited Condensed Consolidated Statements of
Operations |
(in thousands, except per share
amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks Ended |
|
|
Fiscal Year Ended |
|
|
|
|
|
|
|
|
December 27, 2015 |
|
December 28, 2014 |
|
|
December 27, 2015 |
|
December 28, 2014 |
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
Company
restaurant revenues |
$ |
|
122,223 |
|
|
|
111,199 |
|
|
|
|
462,138 |
|
|
|
406,788 |
|
|
Franchise
royalty revenues |
|
|
6,364 |
|
|
|
6,059 |
|
|
|
|
25,104 |
|
|
|
22,746 |
|
|
Other
franchise revenues |
|
|
193 |
|
|
|
191 |
|
|
|
|
960 |
|
|
|
938 |
|
|
|
|
|
|
Total
revenues |
|
|
128,780 |
|
|
|
117,449 |
|
|
|
|
488,202 |
|
|
|
430,472 |
|
Company
restaurant operating expenses: |
|
|
|
|
|
|
|
|
|
|
Food and
supplies costs |
|
|
40,055 |
|
|
|
36,604 |
|
|
|
|
150,563 |
|
|
|
133,191 |
|
|
Restaurant
labor costs |
|
|
32,305 |
|
|
|
29,881 |
|
|
|
|
126,380 |
|
|
|
112,506 |
|
|
Operating
costs |
|
|
26,796 |
|
|
|
22,909 |
|
|
|
|
100,916 |
|
|
|
88,476 |
|
|
Depreciation and amortization |
|
|
3,078 |
|
|
|
2,568 |
|
|
|
|
11,456 |
|
|
|
9,713 |
|
|
|
|
|
|
Total
Company restaurant operating expenses |
|
|
102,234 |
|
|
|
91,962 |
|
|
|
|
389,315 |
|
|
|
343,886 |
|
|
|
|
|
|
Operating
income before other operating expenses |
|
|
26,546 |
|
|
|
25,487 |
|
|
|
|
98,887 |
|
|
|
86,586 |
|
Other
operating expenses: |
|
|
|
|
|
|
|
|
|
|
General and
administrative |
|
|
10,150 |
|
|
|
9,333 |
|
|
|
|
42,844 |
|
|
|
32,107 |
|
|
Depreciation and amortization |
|
|
735 |
|
|
|
649 |
|
|
|
|
2,809 |
|
|
|
2,372 |
|
|
Impairment |
|
|
|
1,002 |
|
|
|
484 |
|
|
|
|
1,210 |
|
|
|
484 |
|
|
Loss on
disposal of property and equipment |
|
|
104 |
|
|
|
31 |
|
|
|
|
336 |
|
|
|
60 |
|
|
|
|
|
|
Total other
operating expenses |
|
|
11,991 |
|
|
|
10,497 |
|
|
|
|
47,199 |
|
|
|
35,023 |
|
|
|
|
|
|
Operating
income |
|
|
14,555 |
|
|
|
14,990 |
|
|
|
|
51,688 |
|
|
|
51,563 |
|
Amortization of deferred debt issuance costs |
|
|
(198 |
) |
|
|
(186 |
) |
|
|
|
(821 |
) |
|
|
(733 |
) |
Interest
income |
|
|
|
1 |
|
|
|
1 |
|
|
|
|
7 |
|
|
|
2 |
|
Interest
expense |
|
|
(1,920 |
) |
|
|
(2,279 |
) |
|
|
|
(8,314 |
) |
|
|
(9,123 |
) |
|
|
|
|
|
Income
before income taxes |
|
|
12,438 |
|
|
|
12,526 |
|
|
|
|
42,560 |
|
|
|
41,709 |
|
Income
taxes |
|
|
|
4,594 |
|
|
|
4,615 |
|
|
|
|
16,034 |
|
|
|
15,589 |
|
|
|
|
|
|
Net
income |
$ |
|
7,844 |
|
|
|
7,911 |
|
|
|
|
26,526 |
|
|
|
26,120 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
|
0.22 |
|
|
|
— |
|
|
|
|
1.15 |
|
|
|
— |
|
|
|
|
|
|
Diluted |
$ |
|
0.21 |
|
|
|
0.21 |
|
|
|
|
0.71 |
|
|
|
0.70 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares used in computing net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
35,979 |
|
|
|
— |
|
|
|
|
23,118 |
|
|
|
— |
|
|
|
|
|
|
Diluted |
|
|
37,436 |
|
|
|
37,348 |
|
|
|
|
37,464 |
|
|
|
37,429 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BOJANGLES’, INC. AND
SUBSIDIARIES |
|
Unaudited Condensed Consolidated Statements of
Cash Flows |
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended |
|
|
|
|
|
|
|
|
|
December 27, 2015 |
|
December 28, 2014 |
|
Cash flows
from operating activities: |
|
|
|
|
|
|
Net
income |
|
$ |
|
26,526 |
|
|
|
26,120 |
|
|
|
Adjustments
to reconcile net income to net cash provided by operating
activities: |
|
|
|
|
|
|
|
|
Deferred
income tax benefit |
|
|
(1,992 |
) |
|
|
(980 |
) |
|
|
|
|
Depreciation and amortization |
|
|
14,265 |
|
|
|
12,085 |
|
|
|
|
|
Amortization of deferred debt issuance costs |
|
|
821 |
|
|
|
733 |
|
|
|
|
|
Impairment |
|
|
1,210 |
|
|
|
484 |
|
|
|
|
|
Loss on
disposal of property and equipment |
|
|
336 |
|
|
|
60 |
|
|
|
|
|
Provision
for doubtful accounts |
|
|
239 |
|
|
|
78 |
|
|
|
|
|
Provision
for inventory spoilage |
|
|
23 |
|
|
|
9 |
|
|
|
|
|
Provision
for closed stores |
|
|
36 |
|
|
|
102 |
|
|
|
|
|
Stock-based
compensation |
|
|
1,963 |
|
|
|
1,420 |
|
|
|
|
|
Excess tax
benefit from stock-based compensation |
|
|
(680 |
) |
|
|
(49 |
) |
|
|
|
|
Changes in
operating assets and liabilities |
|
|
2,779 |
|
|
|
1,581 |
|
|
|
|
|
|
|
Net cash
provided by operating activities |
|
|
45,526 |
|
|
|
41,643 |
|
|
Cash flows
from investing activities: |
|
|
|
|
|
|
Purchases
of franchisee's assets |
|
|
(186 |
) |
|
|
(3,187 |
) |
|
|
Purchases
of property and equipment |
|
|
(12,047 |
) |
|
|
(7,495 |
) |
|
|
Proceeds
from disposition of property and equipment |
|
|
47 |
|
|
|
13 |
|
|
|
|
|
|
|
Net cash
used in investing activities |
|
|
(12,186 |
) |
|
|
(10,669 |
) |
|
Cash flows
from financing activities: |
|
|
|
|
|
|
Proceeds
from borrowings on long-term debt |
|
|
|
|
|
|
50,000 |
|
|
|
Principal
payments on long-term debt |
|
|
(28,055 |
) |
|
|
(21,376 |
) |
|
|
Debt
issuance costs |
|
|
(554 |
) |
|
|
(720 |
) |
|
|
Distribution to stockholders |
|
|
— |
|
|
|
(50,000 |
) |
|
|
Stock
option settlement |
|
|
— |
|
|
|
(172 |
) |
|
|
Stock
option exercise |
|
|
330 |
|
|
|
— |
|
|
|
Excess tax
benefit from stock-based compensation |
|
|
680 |
|
|
|
49 |
|
|
|
Principal
payments on capital lease obligations |
|
|
(4,679 |
) |
|
|
(4,010 |
) |
|
|
|
|
|
|
Net cash
used in financing activities |
|
|
(32,278 |
) |
|
|
(26,229 |
) |
|
|
|
|
|
|
Net
increase in cash and cash equivalents |
|
|
1,062 |
|
|
|
4,745 |
|
|
Cash and
cash equivalents balance, beginning of fiscal year |
|
|
13,201 |
|
|
|
8,456 |
|
|
Cash and
cash equivalents balance, end of fiscal year |
$ |
|
14,263 |
|
|
|
13,201 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BOJANGLES’, INC. AND
SUBSIDIARIES |
|
Unaudited Reconciliation of Net Income to
EBITDA and Adjusted EBITDA |
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks Ended |
|
|
Fiscal Year Ended |
|
|
|
|
|
|
|
|
|
December 27, 2015 |
|
December 28, 2014 |
|
|
December 27, 2015 |
|
December 28, 2014 |
|
Net
income |
|
|
$ |
7,844 |
|
7,911 |
|
|
26,526 |
|
|
26,120 |
|
|
Income
taxes |
|
|
|
4,594 |
|
4,615 |
|
|
16,034 |
|
|
15,589 |
|
|
Interest
expense, net |
|
1,919 |
|
2,278 |
|
|
8,307 |
|
|
9,121 |
|
|
Depreciation and amortization (a) |
|
4,011 |
|
3,403 |
|
|
15,086 |
|
|
12,818 |
|
|
EBITDA |
|
|
|
|
|
18,368 |
|
18,207 |
|
|
65,953 |
|
|
63,648 |
|
|
Non-cash
rent (b) |
|
|
474 |
|
371 |
|
|
1,642 |
|
|
1,513 |
|
|
Stock-based
compensation (c) |
|
264 |
|
336 |
|
|
1,991 |
|
|
1,420 |
|
|
Preopening
expenses (d) |
|
475 |
|
373 |
|
|
1,540 |
|
|
1,358 |
|
|
Sponsor and
board member fees and expenses (e) |
|
— |
|
297 |
|
|
166 |
|
|
1,059 |
|
|
Certain
professional, transaction and other costs (f) |
|
213 |
|
233 |
|
|
5,254 |
|
|
805 |
|
|
Employee
contract expense (g) |
|
25 |
|
— |
|
|
533 |
|
|
— |
|
|
Distributor
transition costs (h) |
|
377 |
|
— |
|
|
594 |
|
|
— |
|
|
Impairment
and dispositions (i) |
|
1,117 |
|
525 |
|
|
1,592 |
|
|
557 |
|
|
Gain from
termination of a vendor contract (j) |
|
— |
|
— |
|
|
— |
|
|
(1,475 |
) |
|
Adjusted EBITDA |
$ |
21,313 |
|
20,342 |
|
|
79,265 |
|
|
68,885 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Includes amortization of deferred debt issuance
costs. |
|
(b) Includes deferred rent, which represents the extent
to which our rent expense has been above or below our cash rent
payments, amortization of favorable (unfavorable) leases and closed
store reserves for rent net of cash payments. |
|
(c) Includes non-cash, stock-based compensation, as well
as employer payroll taxes associated with stock option exercises
related to stock options that were outstanding prior to our initial
public offering. |
|
(d) Includes expenses directly associated with the
opening of company-operated restaurants and incurred prior to the
opening of a company-operated restaurant. |
|
(e) Includes reimbursement of expenses to our sponsor
prior to our initial public offering, compensation and expense
reimbursement to members of our board prior to our initial public
offering and certain non-recurring executive search firm fees
incurred on behalf of our board. |
|
(f) Includes certain professional fees and transaction
costs related to financing transactions, acquisitions and public
offering expenses, third-party consultants for one-time projects
and certain executive relocation costs. |
|
(g) Represents a payment liability pursuant to an
employment agreement. |
|
(h) Includes legal and other expenses incurred in
connection with the transition to our new distributor. |
|
(i) Includes loss on disposal of property and equipment,
impairment and cash proceeds on disposals from disposition of
property and equipment. |
|
(j) Represents the elimination of a gain from the
termination of a contract with a beverage vendor. |
|
BOJANGLES’, INC. AND
SUBSIDIARIES |
|
Unaudited Reconciliation of Net Income to Pro
Forma Net Income |
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks Ended |
|
|
Fiscal Year Ended |
|
|
|
|
|
|
|
|
|
December 27, 2015 |
|
December 28, 2014 |
|
|
December 27, 2015 |
|
December 28, 2014 |
|
Net
income |
|
|
$ |
|
7,844 |
|
|
|
7,911 |
|
|
|
|
26,526 |
|
|
|
26,120 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certain
professional and transaction costs (a) |
|
|
213 |
|
|
|
247 |
|
|
|
|
5,254 |
|
|
|
453 |
|
|
Incremental
public company costs (b) |
|
|
(41 |
) |
|
|
(600 |
) |
|
|
|
(940 |
) |
|
|
(2,400 |
) |
|
Stock-based
compensation (c) |
|
|
12 |
|
|
|
— |
|
|
|
|
736 |
|
|
|
— |
|
|
Employee
contract expense (d) |
|
|
25 |
|
|
|
— |
|
|
|
|
533 |
|
|
|
— |
|
|
Distributor
transition costs (e) |
|
|
377 |
|
|
|
— |
|
|
|
|
594 |
|
|
|
— |
|
|
Gain from
termination of a vendor contract (f) |
|
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
(1,475 |
) |
|
State
income tax rate change (g) |
|
|
— |
|
|
|
— |
|
|
|
|
(903 |
) |
|
|
— |
|
|
Tax impact
of adjustments (h) |
|
|
(204 |
) |
|
|
137 |
|
|
|
|
(673 |
) |
|
|
1,329 |
|
|
Total adjustments |
|
|
382 |
|
|
|
(216 |
) |
|
|
|
4,601 |
|
|
|
(2,093 |
) |
|
Pro
Forma Net Income |
$ |
|
8,226 |
|
|
|
7,695 |
|
|
|
|
31,127 |
|
|
|
24,027 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BOJANGLES’, INC. AND
SUBSIDIARIES |
|
Unaudited Reconciliation of Diluted Net Income
Per Share to Pro Forma Diluted Net Income Per Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks Ended |
|
|
Fiscal Year Ended |
|
|
|
|
|
|
|
|
|
December 27, 2015 |
|
December 28, 2014 |
|
|
December 27, 2015 |
|
December 28, 2014 |
|
Diluted net income per share |
$ |
|
0.21 |
|
|
|
0.21 |
|
|
|
|
0.71 |
|
|
|
0.70 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certain
professional and transaction costs (a) |
|
|
0.01 |
|
|
|
0.01 |
|
|
|
|
0.14 |
|
|
|
0.01 |
|
|
Incremental
public company costs (b) |
|
|
— |
|
|
|
(0.02 |
) |
|
|
|
(0.03 |
) |
|
|
(0.07 |
) |
|
Stock-based
compensation (c) |
|
|
— |
|
|
|
— |
|
|
|
|
0.02 |
|
|
|
— |
|
|
Employee
contract expense (d) |
|
|
— |
|
|
|
— |
|
|
|
|
0.01 |
|
|
|
— |
|
|
Distributor
transition costs (e) |
|
|
0.01 |
|
|
|
— |
|
|
|
|
0.02 |
|
|
|
— |
|
|
Gain from
termination of a vendor contract (f) |
|
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
(0.04 |
) |
|
State
income tax rate change (g) |
|
|
— |
|
|
|
— |
|
|
|
|
(0.02 |
) |
|
|
— |
|
|
Tax impact
of adjustments (h) |
|
|
(0.01 |
) |
|
|
0.01 |
|
|
|
|
(0.02 |
) |
|
|
0.04 |
|
|
Total adjustments |
|
|
0.01 |
|
|
|
0.00 |
|
|
|
|
0.12 |
|
|
|
(0.06 |
) |
|
Pro
Forma Diluted Net Income per Share |
$ |
|
0.22 |
|
|
|
0.21 |
|
|
|
|
0.83 |
|
|
|
0.64 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Includes certain professional fees and transaction
costs related to financing transactions, acquisitions and public
offering expenses and third-party consultants for one-time
projects. |
|
(b) Reflects an estimate of recurring incremental legal,
accounting, insurance and other operating and compliance costs we
expect to incur as a public company in addition to actual amounts
incurred. By its nature, this adjustment involves risks and
uncertainties, and the actual costs incurred could be different
than this adjustment. |
|
(c) Includes non-cash, stock-based compensation related
to the vesting of certain performance based stock option awards, as
well as employer payroll taxes associated with stock option
exercises related to stock options that were outstanding prior to
our initial public offering. |
|
(d) Represents a payment liability pursuant to an
employment agreement. |
|
(e) Includes legal and other expenses incurred in
connection with the transition to our new distributor. |
|
(f) Represents the elimination of a gain from the
termination of a contract with a beverage vendor. |
|
(g) As a result of the recently enacted reduction to the
North Carolina corporate income tax rate, we adjusted our deferred
income taxes by applying the lower rate, which resulted in a
corresponding decrease to income tax expense. |
|
(h) Represents the income tax (expense) benefit
associated with the adjustments in (a) through (g) that are
deductible for income tax purposes. |
|
BOJANGLES’, INC. AND
SUBSIDIARIES |
|
Unaudited Reconciliation of Company Restaurant
Revenues to Restaurant Contribution |
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks Ended |
|
|
Fiscal Year Ended |
|
|
|
|
|
|
|
|
|
December 27, 2015 |
|
December 28, 2014 |
|
|
December 27, 2015 |
|
December 28, 2014 |
|
Company
restaurant revenues |
$ |
|
122,223 |
|
|
|
111,199 |
|
|
|
|
462,138 |
|
|
|
406,788 |
|
|
Food and
supplies costs |
|
|
(40,055 |
) |
|
|
(36,604 |
) |
|
|
|
(150,563 |
) |
|
|
(133,191 |
) |
|
Restaurant
labor costs |
|
|
(32,305 |
) |
|
|
(29,881 |
) |
|
|
|
(126,380 |
) |
|
|
(112,506 |
) |
|
Operating
costs |
|
|
(26,796 |
) |
|
|
(22,909 |
) |
|
|
|
(100,916 |
) |
|
|
(88,476 |
) |
|
Restaurant contribution |
$ |
|
23,067 |
|
|
|
21,805 |
|
|
|
|
84,279 |
|
|
|
72,615 |
|
|
Restaurant contribution margin |
|
|
18.9 |
% |
|
|
19.6 |
% |
|
|
|
18.2 |
% |
|
|
17.9 |
% |
|
For Investor Relations Inquiries:
Raphael Gross of ICR
203.682.8253
For Media Inquiries:
Brian Little of Bojangles’ Restaurants, Inc.
704.519.2118
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