Bojangles’, Inc. (Bojangles’) (NASDAQ:BOJA) today announced
financial results for the 13-week fourth fiscal quarter and 52-week
fiscal year ended December 25, 2016. Bojangles’ also provided
annual guidance for the 53-week fiscal year 2017 ending on December
31, 2017.
Highlights for the Fourth Fiscal Quarter
2016 Compared to the Fourth Fiscal Quarter 2015
- System-wide comparable restaurant sales increased 2.4%, while
company-operated comparable restaurant sales increased 1.1% and
franchised comparable restaurant sales increased 3.2%;
- Total revenues increased 8.3% to $139.4 million from $128.8
million;
- 21 system-wide restaurants were opened – 9 company-operated
restaurants and 12 franchised restaurants;
- Net Income increased 25.2% to $9.8 million from $7.8
million;
- Diluted Net Income per Share increased 23.8% to $0.26 from
$0.21;
- Adjusted Net Income* increased 28.9% to $10.6 million from $8.2
million;
- Adjusted Diluted Net Income per Share* increased 27.3% to $0.28
from $0.22; and
- Adjusted EBITDA* increased 15.3% to $24.6 million from $21.3
million.
Highlights for Fiscal Year 2016 Compared
to Fiscal Year 2015
- System-wide comparable restaurant sales increased 1.3%, while
company-operated comparable restaurant sales increased 1.1% and
franchised comparable restaurant sales increased 1.5%;
- Total revenues increased 8.9% to $531.9 million from $488.2
million;
- 58 system-wide restaurants were opened – 29 company-operated
restaurants and 29 franchised restaurants;
- Net Income increased 42.2% to $37.7 million from $26.5
million;
- Diluted Net Income per Share increased 40.8% to $1.00 from
$0.71;
- Adjusted Net Income* increased 21.6% to $37.9 million from
$31.1 million;
- Adjusted Diluted Net Income per Share* increased 20.5% to $1.00
from $0.83; and
- Adjusted EBITDA* increased 12.1% to $88.9 million from $79.3
million.
* Descriptions of Adjusted Net Income, Adjusted
Diluted Net Income per Share, Adjusted EBITDA and other non-GAAP
financial measures are provided in “Use and Definition of Non-GAAP
Measures,” and reconciliations to GAAP figures are provided in the
tables at the end of this release.
“We are pleased the Bojangles’® system has now
achieved 27 consecutive quarters of comparable restaurant sales
growth through the fourth fiscal quarter of 2016 and that Adjusted
Diluted Net Income per Share growth for fiscal year 2016 exceeded
our annual guidance despite widespread softness affecting the
limited service restaurant category,” said Bojangles’ President and
CEO Clifton Rutledge.
“Ahead of Bojangles’ 40th anniversary
celebration in July, we are as focused as ever on executing our
strategic plans and building the brand in a measured and
sustainable way. We will continue developing restaurants in
core and adjacent markets through our company-operated and
franchised model, with our long-term goal of franchising leading
our expansion efforts over time. We are striving to offer the
best dining experience possible through exceptional service, menu
innovation, and compelling limited time offers that solidify our
reputation for unique, great tasting, freshly-made food, at an
exceptional value. Together with our franchisees, we are also
exploring technology solutions such as mobile payment, apps and
loyalty programs that will elevate our customer interactions,” he
added.
“Our first ‘Bojangles’ of the Future’ restaurant
in Greenville, South Carolina is getting rave reviews and it will
be followed by the opening of a second location in Charlotte, North
Carolina later this year. We expect this exciting new
restaurant prototype to set the standard for Bojangles' restaurants
as we continue testing the various elements of this new
design. Although we recognize and are addressing near-term
headwinds affecting our business, we have also never been more
energized about the future of this Company,” he concluded.
Fourth Fiscal Quarter 2016 Financial
ReviewSystem-wide comparable restaurant sales increased
2.4%, consisting of a 1.1% increase in company-operated comparable
restaurant sales and a 3.2% increase in franchised comparable
restaurant sales. The comparable restaurant sales increase at
company-operated restaurants was composed of increases in price,
partially offset by a decrease in transactions and mix.
Total revenues increased 8.3% to $139.4 million
in the fourth fiscal quarter of 2016 from $128.8 million in the
prior year fiscal quarter. The increase was primarily due to
a net additional 54 system-wide restaurants at December 25, 2016
compared to December 27, 2015, and comparable restaurant sales
growth at our company-operated and franchised restaurants.
Company restaurant revenues increased 8.2% to
$132.2 million in the fourth fiscal quarter of 2016 from $122.2
million in the prior year fiscal quarter. Franchise royalty
revenues increased 7.4% to $6.8 million in the fourth fiscal
quarter of 2016 from $6.4 million in the prior year fiscal
quarter.
Restaurant contribution, a non-GAAP measure,
increased 12.6% to $26.0 million in the fourth fiscal quarter of
2016 from $23.1 million in the prior year fiscal quarter. As
a percentage of company restaurant revenues, restaurant
contribution margin, a non-GAAP measure, increased to 19.6% in the
fourth fiscal quarter of 2016 from 18.9% in the prior year fiscal
quarter.
General and administrative expenses increased
6.9% to $10.9 million in the fourth fiscal quarter of 2016 from
$10.2 million in the prior year fiscal quarter. The increase
was primarily due to higher stock-based compensation expense as a
result of the vesting of certain performance awards, legal,
accounting, and other expenses directly related to public offerings
and headcount added to support our growing restaurant system.
These increases were partially offset by expenses incurred in
connection with the transition to a new distributor in the prior
year fiscal quarter.
Net Income increased 25.2% to $9.8 million in
the fourth fiscal quarter of 2016 compared to $7.8 million in the
prior year fiscal quarter. Diluted Net Income per Share
increased 23.8% to $0.26 in the fourth fiscal quarter of 2016
compared to $0.21 in the prior year fiscal quarter.
Adjusted Net Income, a non-GAAP measure,
increased 28.9% to $10.6 million in the fourth fiscal quarter of
2016 compared to $8.2 million in the prior year fiscal
quarter. Adjusted Diluted Net Income per Share increased
27.3% to $0.28 in the fourth fiscal quarter of 2016 compared to
$0.22 in the prior year fiscal quarter.
Adjusted EBITDA, a non-GAAP measure, increased
15.3% to $24.6 million in the fourth fiscal quarter of 2016 from
$21.3 million in the prior year fiscal quarter.
Fiscal Year 2017
GuidanceBojangles’ is providing an annual outlook for the
53-week period ending on December 31, 2017:
- Total revenues of $560.0 million to $569.0 million, which
includes the impact of our planned refranchising of five
company-operated restaurants;
- System-wide comparable restaurant sales of negative low-single
digits to flat;
- The opening of 57 to 62 system-wide restaurants;
- 27 to 28 company-operated restaurants;
- 30 to 34 franchised restaurants;
- Net increase of 49 to 54 system-wide restaurants;
- Net increase of 19 to 20 company-operated restaurants, which
includes the impact of our planned refranchising of five
company-operated restaurants;
- Net increase of 30 to 34 franchised restaurants, which includes
the impact of our planned refranchising of five company-operated
restaurants;
- Restaurant contribution margin of 17.0% to 17.5%;
- General and administrative expenses of $40.5 million to $41.5
million;
- Adjusted Diluted Net Income per Share of $0.87 to $0.93;
and
- Adjusted EBITDA of $84.0 million to $89.0 million.
We have not reconciled guidance for Adjusted
Diluted Net Income per Share or Adjusted EBITDA to the
corresponding GAAP financial measures because we do not provide
guidance for the various reconciling items. We are unable to
provide guidance for these reconciling items because we cannot
determine their probable significance, as certain items are outside
of our control and cannot be reasonably predicted due to the fact
that these items could vary significantly from period to period.
Accordingly, reconciliations to the corresponding GAAP
financial measures are not available without unreasonable
effort.
Conference Call and Webcast
TodayBojangles’ will host a conference call and webcast to
discuss the fourth fiscal quarter 2016 results and fiscal year 2016
results, as well as fiscal year 2017 guidance today at 5:00 p.m.
Eastern Time. The conference call dial-in number is
201-493-6725. A telephone replay will be available through
Friday, April 7, 2017 and may be accessed by dialing
858-384-5517. The conference ID is 13653614.
The conference call will also be webcast live
and later archived on the Investors section of our website at
www.bojangles.com.
Conference ParticipationBojangles’ will
participate in the Bank of America Merrill Lynch 2017 Consumer
& Retail Tech Conference on Tuesday, March 14, 2017 at the
Lotte New York Palace hotel in New York City. In addition to
holding investor meetings, we will webcast our presentation live
beginning at 2:40 p.m. Eastern Time on the Investors section of the
Company's website at www.bojangles.com. The presentation will
later be archived.
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, N.C., Bojangles'
serves menu items such as delicious, famous chicken,
made-from-scratch buttermilk biscuits, flavorful fixin's and
Legendary Iced Tea®. At December 25, 2016, Bojangles' had 716
system-wide restaurants, of which 309 were company-operated and 407
were franchised restaurants, primarily located in the Southeastern
United States. For more information, visit www.bojangles.com
or follow Bojangles' on Facebook and Twitter.
Note Regarding Comparable Restaurant
SalesComparable 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. If a company-operated restaurant is
temporarily closed for a full calendar week due to items such as a
remodel, scrape and rebuild, casualty event, severe weather
conditions or any other short-term closure, it is removed from the
comparable restaurant sales calculations for such period it is
temporarily closed. If a franchised restaurant is temporarily
closed for a full calendar week due to items such as a remodel,
scrape and rebuild, casualty event, severe weather conditions or
any other short-term closure, it is removed from the comparable
restaurant sales calculations for the entire month(s) impacted by
the temporary closure.
Use and Definition of Non-GAAP
MeasuresWe utilize certain non-GAAP measures when
assessing the operational strength and the performance of our
business. We believe these non-GAAP measures assist our board
of directors, management and investors in comparing our operating
performance, on a consistent basis from period to period, by
isolating the effects of certain items that vary from period to
period without any correlation to core operating performance or
that vary significantly among similar companies. Bojangles’
cautions that non-GAAP measures should be considered in addition
to, but not as a substitute for, reported GAAP results.
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.
Adjusted 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. Adjusted 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.
Adjusted Net Income, Adjusted 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. Adjusted Net Income, Adjusted 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. Adjusted Net Income, Adjusted Diluted Net
Income per Share, EBITDA and Adjusted EBITDA have limitations as
analytical tools, and should not be considered in isolation, or as
substitutes for analysis of our results as reported under
GAAP. In addition, in evaluating Adjusted Net Income,
Adjusted 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 Adjusted Net Income,
Adjusted Diluted Net Income per Share, EBITDA and Adjusted
EBITDA.
Forward-Looking StatementsThis
release contains forward-looking statements. All statements
other than statements of historical or current facts 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, among
other risks, our vulnerability to changes in consumer preferences
and economic conditions; our ability to open restaurants in new and
existing markets 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, changes in discounting strategy or restaurant designs
and remodels; cancellation of or delay in anticipated future
restaurant openings; our reliance on, limited degree of control
over and potential responsibility 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, such as salmonella, E. coli, or others; changes in
employment and labor laws; labor shortages and increases in labor
costs; 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
Annual Report on Form 10-K for the fiscal year ended December 25,
2016, which we expect to file with the Securities and Exchange
Commission on March 7, 2017, and which will be 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 obligation
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 25,
2016 |
|
December 27, 2015 |
|
Current
assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
13,898 |
|
14,263 |
|
|
Accounts and vendor receivables, net |
|
5,421 |
|
4,736 |
|
|
Accounts receivable, related parties, net |
|
386 |
|
403 |
|
|
Inventories, net |
|
3,326 |
|
3,080 |
|
|
Other current assets |
|
3,033 |
|
5,639 |
|
|
|
|
Total
current assets |
|
26,064 |
|
28,121 |
|
|
Property
and equipment, net |
|
52,275 |
|
48,137 |
|
|
Goodwill |
|
|
|
161,140 |
|
161,140 |
|
|
Brand |
|
|
|
|
290,500 |
|
290,500 |
|
|
Franchise rights, net |
|
24,243 |
|
25,341 |
|
|
Favorable leases, net |
|
981 |
|
1,394 |
|
|
Other noncurrent assets |
|
4,569 |
|
3,673 |
|
|
|
|
Total
assets |
$ |
559,772 |
|
558,306 |
|
Liabilities and Stockholders’
Equity |
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
Accounts payable |
$ |
16,818 |
|
17,893 |
|
|
Accrued expenses |
|
17,940 |
|
19,086 |
|
|
Current maturities of long-term debt |
|
2,132 |
|
— |
|
|
Current maturities of capital lease obligations |
|
7,299 |
|
5,968 |
|
|
Other current liabilities |
|
4,390 |
|
2,155 |
|
|
|
|
Total
current liabilities |
|
48,579 |
|
45,102 |
|
|
Long-term debt, less current maturities and deferred debt
issuance costs, net |
|
153,630 |
|
197,735 |
|
|
Deferred income taxes |
|
111,312 |
|
115,028 |
|
|
Capital lease obligations, less current maturities |
|
22,524 |
|
21,483 |
|
|
Other noncurrent liabilities |
|
12,937 |
|
11,834 |
|
|
|
|
Total
liabilities |
|
348,982 |
|
391,182 |
|
Stockholders’ equity: |
|
|
|
|
|
|
Preferred stock |
|
— |
|
— |
|
|
Common stock |
|
365 |
|
360 |
|
|
Additional paid-in capital |
|
124,802 |
|
119,084 |
|
|
Retained earnings |
|
85,377 |
|
47,661 |
|
|
Accumulated other comprehensive income |
|
246 |
|
19 |
|
|
|
|
Total
stockholders’ equity |
|
210,790 |
|
167,124 |
|
|
|
|
Total
liabilities and stockholders’ equity |
$ |
559,772 |
|
558,306 |
|
|
|
|
|
|
|
|
|
|
|
|
|
BOJANGLES’, INC. AND
SUBSIDIARIES |
|
Unaudited Condensed Consolidated Statements of
Operations |
|
(in thousands, except per share
amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks Ended |
|
|
Fiscal Year Ended |
|
|
|
|
|
|
|
|
|
December 25,
2016 |
|
December 27,
2015 |
|
|
December 25,
2016 |
|
December 27,
2015 |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Company
restaurant revenues |
$ |
132,219 |
|
|
122,223 |
|
|
|
504,664 |
|
|
462,138 |
|
|
|
Franchise
royalty revenues |
|
6,832 |
|
|
6,364 |
|
|
|
26,364 |
|
|
25,104 |
|
|
|
Other
franchise revenues |
|
383 |
|
|
193 |
|
|
|
853 |
|
|
960 |
|
|
|
|
|
|
|
Total
revenues |
|
139,434 |
|
|
128,780 |
|
|
|
531,881 |
|
|
488,202 |
|
|
Company
restaurant operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
Food and
supplies costs |
|
41,772 |
|
|
40,055 |
|
|
|
158,644 |
|
|
150,563 |
|
|
|
Restaurant
labor costs |
|
35,862 |
|
|
32,305 |
|
|
|
138,839 |
|
|
126,380 |
|
|
|
Operating
costs |
|
28,611 |
|
|
26,796 |
|
|
|
112,256 |
|
|
100,916 |
|
|
|
Depreciation and amortization |
|
3,278 |
|
|
3,078 |
|
|
|
12,709 |
|
|
11,456 |
|
|
|
|
|
|
|
Total
Company restaurant operating expenses |
|
109,523 |
|
|
102,234 |
|
|
|
422,448 |
|
|
389,315 |
|
|
|
|
|
|
|
Operating
income before other operating expenses |
|
29,911 |
|
|
26,546 |
|
|
|
109,433 |
|
|
98,887 |
|
|
Other
operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
General and
administrative |
|
10,852 |
|
|
10,150 |
|
|
|
39,041 |
|
|
42,844 |
|
|
|
Depreciation and amortization |
|
739 |
|
|
735 |
|
|
|
2,917 |
|
|
2,809 |
|
|
|
Impairment |
|
|
947 |
|
|
1,002 |
|
|
|
1,927 |
|
|
1,210 |
|
|
|
Loss on
disposal of property and equipment |
|
98 |
|
|
104 |
|
|
|
47 |
|
|
336 |
|
|
|
|
|
|
|
Total other
operating expenses |
|
12,636 |
|
|
11,991 |
|
|
|
43,932 |
|
|
47,199 |
|
|
|
|
|
|
|
Operating
income |
|
17,275 |
|
|
14,555 |
|
|
|
65,501 |
|
|
51,688 |
|
|
Amortization of deferred debt issuance costs |
|
(196 |
) |
|
(198 |
) |
|
|
(763 |
) |
|
(821 |
) |
|
Interest
income |
|
|
1 |
|
|
1 |
|
|
|
4 |
|
|
7 |
|
|
Interest
expense |
|
(1,708 |
) |
|
(1,920 |
) |
|
|
(7,489 |
) |
|
(8,314 |
) |
|
|
|
|
|
|
Income
before income taxes |
|
15,372 |
|
|
12,438 |
|
|
|
57,253 |
|
|
42,560 |
|
|
Income
taxes |
|
|
5,550 |
|
|
4,594 |
|
|
|
19,537 |
|
|
16,034 |
|
|
|
|
|
|
|
Net
income |
$ |
9,822 |
|
|
7,844 |
|
|
|
37,716 |
|
|
26,526 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.27 |
|
|
0.22 |
|
|
|
1.04 |
|
|
1.15 |
|
|
|
|
|
|
|
Diluted |
$ |
0.26 |
|
|
0.21 |
|
|
|
1.00 |
|
|
0.71 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares used in computing net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
36,448 |
|
|
35,979 |
|
|
|
36,258 |
|
|
23,118 |
|
|
|
|
|
|
|
Diluted |
|
37,806 |
|
|
37,436 |
|
|
|
37,684 |
|
|
37,464 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BOJANGLES’, INC. AND
SUBSIDIARIES |
|
Unaudited Condensed Consolidated Statements of
Cash Flows |
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended |
|
|
|
|
|
|
|
|
|
December 25,
2016 |
|
December 27,
2015 |
|
Cash flows
from operating activities: |
|
|
|
|
|
|
Net income |
$ |
37,716 |
|
|
26,526 |
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
|
|
|
|
Deferred income tax benefit |
|
(2,177 |
) |
|
(1,992 |
) |
|
|
|
|
Depreciation and amortization |
|
15,626 |
|
|
14,265 |
|
|
|
|
|
Amortization of deferred debt issuance costs |
|
763 |
|
|
821 |
|
|
|
|
|
Impairment |
|
1,927 |
|
|
1,210 |
|
|
|
|
|
Loss on disposal of property and equipment |
|
47 |
|
|
336 |
|
|
|
|
|
(Benefit) provision for doubtful accounts |
|
(72 |
) |
|
239 |
|
|
|
|
|
Provision for inventory spoilage |
|
20 |
|
|
23 |
|
|
|
|
|
(Benefit) provision for closed stores |
|
(51 |
) |
|
36 |
|
|
|
|
|
Stock-based compensation |
|
1,827 |
|
|
1,963 |
|
|
|
|
|
Excess tax benefit from stock-based compensation |
|
(2,686 |
) |
|
(680 |
) |
|
|
|
|
Changes in operating assets and liabilities |
|
1,360 |
|
|
2,779 |
|
|
|
|
|
|
|
Net cash provided by operating activities |
|
54,300 |
|
|
45,526 |
|
|
Cash flows
from investing activities: |
|
|
|
|
|
|
Purchases of franchisee's assets |
|
(100 |
) |
|
(186 |
) |
|
|
Purchases of property and equipment |
|
(9,695 |
) |
|
(12,047 |
) |
|
|
Proceeds from disposition of property and equipment |
|
51 |
|
|
47 |
|
|
|
|
|
|
|
Net cash used in investing activities |
|
(9,744 |
) |
|
(12,186 |
) |
|
Cash flows
from financing activities: |
|
|
|
|
|
|
Principal payments on long-term debt |
|
(42,736 |
) |
|
(28,055 |
) |
|
|
Debt issuance costs |
|
— |
|
|
(554 |
) |
|
|
Stock option exercises |
|
1,210 |
|
|
330 |
|
|
|
Excess tax benefit from stock-based compensation |
|
2,686 |
|
|
680 |
|
|
|
Principal payments on capital lease obligations |
|
(6,081 |
) |
|
(4,679 |
) |
|
|
|
|
|
|
Net cash used in financing activities |
|
(44,921 |
) |
|
(32,278 |
) |
|
|
|
|
|
|
Net (decrease) increase in cash and cash equivalents |
|
(365 |
) |
|
1,062 |
|
|
Cash and
cash equivalents balance, beginning of fiscal year |
|
14,263 |
|
|
13,201 |
|
|
Cash and
cash equivalents balance, end of fiscal year |
$ |
13,898 |
|
|
14,263 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BOJANGLES’, INC. AND
SUBSIDIARIES |
|
Unaudited Reconciliation of Net Income to
Adjusted Net Income |
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks Ended |
|
|
Fiscal Year Ended |
|
|
|
December 25,
2016 |
|
December 27,
2015 |
|
|
December 25,
2016 |
|
December 27,
2015 |
|
Net
income |
$ |
9,822 |
|
|
7,844 |
|
|
|
37,716 |
|
|
26,526 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Certain
professional and transaction costs (a) |
|
398 |
|
|
213 |
|
|
|
464 |
|
|
5,254 |
|
|
Incremental
public company costs (b) |
|
— |
|
|
(41 |
) |
|
|
— |
|
|
(940 |
) |
|
Vesting of
performance-based stock options (c) |
|
495 |
|
|
— |
|
|
|
495 |
|
|
708 |
|
|
Payroll
taxes associated with stock option exercises (d) |
|
44 |
|
|
12 |
|
|
|
124 |
|
|
28 |
|
|
Distributor
transition costs (e) |
|
— |
|
|
377 |
|
|
|
81 |
|
|
594 |
|
|
Executive
separation expenses (f) |
|
81 |
|
|
25 |
|
|
|
278 |
|
|
533 |
|
|
State
income tax rate change (g) |
|
— |
|
|
— |
|
|
|
(908 |
) |
|
(903 |
) |
|
Tax impact
of adjustments (h) |
|
(236 |
) |
|
(204 |
) |
|
|
(392 |
) |
|
(673 |
) |
|
Total adjustments |
|
782 |
|
|
382 |
|
|
|
142 |
|
|
4,601 |
|
|
Adjusted Net Income |
$ |
10,604 |
|
|
8,226 |
|
|
|
37,858 |
|
|
31,127 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BOJANGLES’, INC. AND
SUBSIDIARIES |
|
Unaudited Reconciliation of Diluted Net Income
Per Share to Adjusted Diluted Net Income Per Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks Ended |
|
|
Fiscal Year Ended |
|
|
|
December 25,
2016 |
|
December 27,
2015 |
|
|
December 25,
2016 |
|
December 27,
2015 |
|
Diluted net income per share |
$ |
0.26 |
|
|
0.21 |
|
|
|
1.00 |
|
|
0.71 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Certain
professional and transaction costs (a) |
|
0.01 |
|
|
0.01 |
|
|
|
0.01 |
|
|
0.14 |
|
|
Incremental
public company costs (b) |
|
— |
|
|
— |
|
|
|
— |
|
|
(0.03 |
) |
|
Vesting of
performance-based stock options (c) |
|
0.01 |
|
|
— |
|
|
|
0.01 |
|
|
0.02 |
|
|
Payroll
taxes associated with stock option exercises (d) |
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
Distributor
transition costs (e) |
|
— |
|
|
0.01 |
|
|
|
— |
|
|
0.02 |
|
|
Executive
separation expenses (f) |
|
— |
|
|
— |
|
|
|
0.01 |
|
|
0.01 |
|
|
State
income tax rate change (g) |
|
— |
|
|
— |
|
|
|
(0.02 |
) |
|
(0.02 |
) |
|
Tax impact
of adjustments (h) |
|
— |
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
(0.02 |
) |
|
Total adjustments |
|
0.02 |
|
|
0.01 |
|
|
|
0.00 |
|
|
0.12 |
|
|
Adjusted Diluted Net Income per Share |
$ |
0.28 |
|
|
0.22 |
|
|
|
1.00 |
|
|
0.83 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Includes costs associated with third-party consultants for
one-time projects, public offering expenses and certain
professional fees and transaction costs related to financing
transactions. We could incur similar expenses in future periods if
we commence additional public offerings, financing transactions or
other 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. No adjustments will be made beyond the second
fiscal quarter 2016 since the one year anniversary of our initial
public offering occurred during the thirteen weeks ended June 26,
2016. |
|
(c) |
Includes non-cash, stock-based compensation related to the
vesting of certain performance based stock option awards. We could
incur similar expenses in future periods upon the achievement of
the performance metrics indicated in the stock option grants. |
|
(d) |
Represents payroll taxes associated with stock option
exercises related to stock options that were outstanding prior to
our initial public offering. We expect to incur similar expenses in
future periods when our directors or employees exercise stock
options that were outstanding prior to our initial public
offering. |
|
(e) |
Includes expenses incurred in connection with the transition
to our new distributor. |
|
(f) |
Represents severance and legal fees associated with a former
executive's departure from the Company. |
|
(g) |
As a result of the enacted reductions 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 associated with the
adjustments in (a) through (g) that are deductible for income tax
purposes. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BOJANGLES’, INC. AND
SUBSIDIARIES |
|
Unaudited Reconciliation of Net Income to
EBITDA and Adjusted EBITDA |
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks Ended |
|
|
Fiscal Year Ended |
|
|
|
|
|
|
|
|
|
December 25,
2016 |
|
December 27,
2015 |
|
|
December 25,
2016 |
|
December 27,
2015 |
|
Net
income |
|
|
$ |
9,822 |
|
7,844 |
|
|
37,716 |
|
26,526 |
|
Income
taxes |
|
|
|
5,550 |
|
4,594 |
|
|
19,537 |
|
16,034 |
|
Interest
expense, net |
|
1,707 |
|
1,919 |
|
|
7,485 |
|
8,307 |
|
Depreciation and amortization (a) |
|
4,213 |
|
4,011 |
|
|
16,389 |
|
15,086 |
|
EBITDA |
|
|
|
|
|
21,292 |
|
18,368 |
|
|
81,127 |
|
65,953 |
|
Non-cash
rent (b) |
|
|
370 |
|
474 |
|
|
1,556 |
|
1,642 |
|
Stock-based
compensation (c) |
|
874 |
|
252 |
|
|
1,827 |
|
1,963 |
|
Payroll
taxes associated with stock option exercises (d) |
|
44 |
|
12 |
|
|
124 |
|
28 |
|
Preopening
expenses (e) |
|
465 |
|
475 |
|
|
1,407 |
|
1,540 |
|
Sponsor and
board member fees and expenses (f) |
|
— |
|
— |
|
|
— |
|
166 |
|
Certain
professional, transaction and other costs (g) |
|
398 |
|
213 |
|
|
464 |
|
5,254 |
|
Distributor
transition costs (h) |
|
— |
|
377 |
|
|
81 |
|
594 |
|
Executive
separation expenses (i) |
|
81 |
|
25 |
|
|
278 |
|
533 |
|
Impairment
and dispositions (j) |
|
1,047 |
|
1,117 |
|
|
2,025 |
|
1,592 |
|
Adjusted EBITDA |
$ |
24,571 |
|
21,313 |
|
|
88,889 |
|
79,265 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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. We expect to continue to
incur similar expenses in future periods as we record rent expense
in accordance with GAAP, as well as continue to amortize favorable
(unfavorable) leases and record closed store reserves. |
|
(c) |
Represents non-cash, stock-based compensation. We expect to
incur similar expenses in future periods as we record stock-based
compensation related to existing grants (and any potential future
grants) in accordance with GAAP. |
|
(d) |
Represents payroll taxes associated with stock option
exercises related to stock options that were outstanding prior to
our initial public offering. We expect to incur similar expenses in
future periods when our directors or employees exercise stock
options that were outstanding prior to our initial public
offering. |
|
(e) |
Includes expenses directly associated with the opening of
company-operated restaurants and incurred prior to the opening of a
company-operated restaurant. We expect to continue to incur similar
expenses as we open company-operated restaurants. |
|
(f) |
Includes reimbursement of expenses to our sponsor prior to our
initial public offering and compensation and expense reimbursement
to members of our board prior to our initial public
offering. |
|
(g) |
Includes costs associated with third-party consultants for
one-time projects, public offering expenses and certain
professional fees and transaction costs related to financing
transactions. We could incur similar expenses in future periods if
we commence additional public offerings, financing transactions or
other one-time projects. |
|
(h) |
Includes expenses incurred in connection with the transition
to our new distributor. |
|
(i) |
Represents severance and legal fees associated with a former
executive's departure from the Company. |
|
(j) |
Includes loss (gain) on disposal of property and equipment,
impairment and cash proceeds on disposals from disposition of
property and equipment. We could continue to record impairment
expense in future periods if performance of company-operated
restaurants is not sufficient to recover the carrying amount of the
related long-lived assets. We may incur future losses (gains) and
receive cash proceeds on disposal of property and equipment
associated with retirement, replacement or write-off of fixed
assets. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BOJANGLES’, INC. AND
SUBSIDIARIES |
|
Unaudited Reconciliation of Company Restaurant
Revenues to Restaurant Contribution |
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks Ended |
|
|
Fiscal Year Ended |
|
|
|
|
|
|
|
|
|
December 25,
2016 |
|
December 27,
2015 |
|
|
December 25,
2016 |
|
December 27,
2015 |
|
Company
restaurant revenues |
$ |
132,219 |
|
|
122,223 |
|
|
|
504,664 |
|
|
462,138 |
|
|
Food and
supplies costs |
|
(41,772 |
) |
|
(40,055 |
) |
|
|
(158,644 |
) |
|
(150,563 |
) |
|
Restaurant
labor costs |
|
(35,862 |
) |
|
(32,305 |
) |
|
|
(138,839 |
) |
|
(126,380 |
) |
|
Operating
costs |
|
(28,611 |
) |
|
(26,796 |
) |
|
|
(112,256 |
) |
|
(100,916 |
) |
|
Restaurant contribution |
$ |
25,974 |
|
|
23,067 |
|
|
|
94,925 |
|
|
84,279 |
|
|
Restaurant contribution margin |
|
19.6 |
% |
|
18.9 |
% |
|
|
18.8 |
% |
|
18.2 |
% |
|
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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