UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
February 9, 2015
THE CHEESECAKE FACTORY INCORPORATED
(Exact Name of Registrant as Specified in its Charter)
Delaware |
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0-20574 |
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51-0340466 |
(State or other jurisdiction of incorporation) |
|
(Commission File Number) |
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(IRS Employer Identification No.) |
26901 Malibu Hills Road
Calabasas Hills, California 91301
(Address of principal executive offices) (Zip Code)
Registrants telephone number, including area code:
(818) 871-3000
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14.d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION
The following information is intended to be furnished under Item 2.02 of Form 8-K, Results of Operations and Financial Condition. This information shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date of this report, regardless of any general incorporation language in the filing.
In a press release dated February 11, 2015, The Cheesecake Factory Incorporated (the Company) announced financial results for the Companys fourth quarter of fiscal 2014, which ended on December 30, 2014. The Company also made available a Power Point slide entitled, Five-Year Plan, Sustainable Long-Term Growth on its website at http://investors.thecheesecakefactory.com and referenced in item 7.01 below. The Company intends to discuss the content provided on the slide as part of its long-term strategy discussion on its earnings conference call scheduled for today, February 11, 2015 at 2:00 p.m. Pacific Time. The full text of the press release is furnished as Exhibit 99.1 to this Report and is incorporated by reference into this item 2.02.
ITEM 7.01 REGULATION FD DISCLOSURE
The Power Point slide entitled, Five-Year Plan, Sustainable Long-Term Growth has been posted at http://investors.thecheesecakefactory.com and will be discussed during the earnings conference call.
The content of this Power Point slide constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and known and unknown risks, uncertainties and other factors may cause the actual results, performance or achievements of the Company to be materially different from the future results, performance or achievements expressed or implied by the contents of this slide. The contents of this slide should be read in conjunction with the risks and uncertainties that are detailed from time to time in the Companys filings with the Securities and Exchange Commission (SEC), including without limitation the discussion of risk factors contained in the Companys latest Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, which are available at www.sec.gov.
The text of the Power Point slide is furnished as Exhibit 99.2 to this Report and is incorporated by reference into this Item 7.01.
ITEM 8.01 OTHER EVENTS
On February 9, 2015, the Board of Directors of the Company declared a quarterly cash dividend to its stockholders. A dividend of $0.165 per share will be paid on March 10, 2015 to the stockholders of record at the close of business on February 25, 2015 of each share of the Companys common stock. Future dividends, if any, will be subject to Board approval. On February 11, 2015, the Company included in its press release, attached hereto as Exhibit 99.1 and described in Item 2.02 above, an announcement of the declaration of the dividend. The full text of the press release is furnished as Exhibit 99.1 to this Report and is hereby incorporated by reference.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
(d) Exhibits
99.1 |
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Press release dated February 11, 2015 entitled, The Cheesecake Factory Reports Results for Fourth Quarter of Fiscal 2014 |
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99.2 |
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Power Point slide dated February 11, 2015 entitled Five Year Plan, Sustainable Long-Term Growth |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: February 11, 2015 |
THE CHEESECAKE FACTORY INCORPORATED |
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|
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By: |
/s/ W. Douglas Benn |
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W. Douglas Benn |
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Executive Vice President and Chief Financial Officer |
EXHIBIT INDEX
Exhibit |
|
Description |
99.1 |
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Press release dated February 11, 2015 entitled, The Cheesecake Factory Reports Results for Fourth Quarter of Fiscal 2014 |
|
|
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99.2 |
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Power Point slide dated February 11, 2015 entitled Five Year Plan, Sustainable Long-Term Growth |
EXHIBIT 99.1
PRESS RELEASE
FOR IMMEDIATE RELEASE |
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Contact: Jill Peters |
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(818) 871-3000 |
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investorrelations@thecheesecakefactory.com |
THE CHEESECAKE FACTORY REPORTS RESULTS FOR
FOURTH QUARTER OF FISCAL 2014
Company to Discuss Long-Term Strategy During Todays Conference Call
Calabasas Hills, CA February 11, 2015 The Cheesecake Factory Incorporated (NASDAQ: CAKE) today reported financial results for the fourth quarter of fiscal 2014, which ended on December 30, 2014.
Total revenues were $499.7 million in the fourth quarter of fiscal 2014 as compared to $475.1 million in the prior year fourth quarter. Net income and diluted net income per share were $24.5 million and $0.48, respectively, in the fourth quarter of fiscal 2014.
Operating Results
Comparable restaurant sales at The Cheesecake Factory restaurants increased 1.4% in the fourth quarter of fiscal 2014.
We continued to achieve a consistent level of sales at our existing Cheesecake Factory restaurants, with the fourth quarter completing our fifth consecutive year of delivering positive quarterly comparable sales. In addition, our newer restaurants continue to outperform our Company average in sales per square foot, which speaks to the strength of our brand and multi-generational appeal, said David Overton, Chairman and Chief Executive Officer.
Looking back on 2014, there were many high points during the year, including our first restaurant opening in Mexico, continued expansion in the Middle East and execution of a licensing agreement for growth in Asia, in addition to a strong slate of domestic openings. However, the operating environment was challenging and the fourth quarter was another in which we were impacted by cost pressures. As we look forward to this year and beyond, we believe our future is bright with multiple opportunities for us to continue our leadership in casual dining and continue to grow our Company with the best talent in the industry to successfully execute our strategy, concluded Overton.
26901 Malibu Hills Road, Calabasas Hills, CA 91301 · Telephone (818) 871-3000 · Fax (818) 871-3100
Development
The Company opened five new restaurants in the fourth quarter of fiscal 2014, delivering on its objective to open 10 Company-owned restaurants during fiscal 2014.
Internationally, one new Cheesecake Factory restaurant opened in the Middle East in the fourth quarter of fiscal 2014, for a total of four new international locations opened during the year under licensing agreements.
In fiscal 2015, the Company continues to expect to open as many as 11 Company-owned restaurants domestically. In addition, the Company also continues to expect as many as four restaurants to open in the Middle East and Mexico under licensing agreements.
Capital Allocation
In fiscal 2014, the Company repurchased 3.1 million shares of its common stock at a cost of $140.5 million, including 3,232 shares repurchased in the fourth quarter of fiscal 2014. The Company returned $170.8 million in cash to shareholders in fiscal 2014 in the form of share repurchases and dividends.
The Companys Board of Directors declared a quarterly cash dividend of $0.165 per share on the Companys common stock. The dividend is payable on March 10, 2015 to shareholders of record at the close of business on February 25, 2015.
For fiscal 2015, the Company continues to expect that it will return its free cash flow to shareholders in the form of share repurchases and dividends.
Financial Reporting Dates for Fiscal 2015
The Company plans to announce quarterly financial results and hold conference calls to discuss its results for the first three quarters of fiscal 2015 as outlined below. The earnings press releases will be issued at approximately 1:15 p.m. Pacific Time and the conference calls will follow at 2:00 p.m. Pacific Time on the same day. Dates and times could be subject to change.
Quarter Ending |
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Earnings Release and Conference Call Dates |
March 31, 2015 |
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April 22, 2015 |
June 30, 2015 |
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July 22, 2015 |
September 29, 2015 |
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October 21, 2015 |
Conference Call and Webcast
The Company will hold a conference call to review its results for the fourth quarter of fiscal 2014 and discuss its long-term strategy today at 2:00 p.m. Pacific Time. The conference call will be webcast live on the Companys website at investors.thecheesecakefactory.com and a replay of the webcast will be available through March 11, 2015. Supplemental material will be made available on the Companys website prior to the start of the conference call.
About The Cheesecake Factory Incorporated
The Cheesecake Factory Incorporated created the upscale casual dining segment in 1978 with the introduction of its namesake concept. The Company operates 189 full-service, casual dining restaurants throughout the U.S. and Puerto Rico, including 177 restaurants under The Cheesecake Factory® mark; 11 restaurants under the Grand Lux Cafe® mark; and one restaurant under the RockSugar Pan Asian Kitchen® mark. Internationally, eight The Cheesecake Factory® restaurants operate under licensing agreements. The Company also operates two bakery production facilities in Calabasas Hills, CA and Rocky Mount, NC that produce quality cheesecakes and other baked products. In 2014, the Company was named to Fortune magazines 100 Best Companies to Work For list. To learn more about the Company, visit thecheesecakefactory.com.
26901 Malibu Hills Road, Calabasas Hills, CA 91301 · Telephone (818) 871-3000 · Fax (818) 871-3100
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements, including uncertainties related to: the Companys ability to deliver consistent and dependable comparable sales results over a sustained period of time; the Companys ability to successfully open new restaurants with sales performance above the Companys average; the Companys ability to remain relevant to consumers, to maintain high quality standards and provide guests with an exceptional experience; the Companys ability to operate efficiently and effectively; the Companys ability to expand its concepts domestically and work with its licensees to expand its concept internationally; the Companys ability to execute its long-term strategy; the Companys ability to utilize its capital effectively and increase shareholder value through dividends and share repurchases; factors outside of the Companys control that impact consumer confidence and spending; current and future macroeconomic conditions; acceptance and success of The Cheesecake Factory in international markets; changes in unemployment rates; the economic health of the Companys landlords and other tenants in retail centers in which its restaurants are located; the economic health of suppliers, licensees, vendors and other third parties providing goods or services to the Company; adverse weather conditions in regions in which the Companys restaurants are located; factors that are under the control of government agencies, landlords and other third parties; and other risks and uncertainties detailed from time to time in the Companys filings with the Securities and Exchange Commission (SEC), as set forth below. Investors are cautioned that forward-looking statements are not guarantees of future performance and that undue reliance should not be placed on such statements. Forward-looking statements speak only as of the dates on which they are made and the Company undertakes no obligation to publicly update or revise any forward-looking statements or to make any other forward-looking statements, whether as a result of new information, future events or otherwise, unless required to do so by securities laws. Investors are referred to the full discussion of risks and uncertainties associated with forward-looking statements and the discussion of risk factors contained in the Companys latest Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K as filed with the SEC, which are available at www.sec.gov.
26901 Malibu Hills Road, Calabasas Hills, CA 91301 · Telephone (818) 871-3000 · Fax (818) 871-3100
The Cheesecake Factory Incorporated and Subsidiaries
Consolidated Financial Statements
(unaudited; in thousands, except per share and statistical data)
|
|
13 Weeks Ended |
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13 Weeks Ended |
|
52 Weeks Ended |
|
52 Weeks Ended |
Consolidated Statements of Operations |
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December 30, 2014 |
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December 31, 2013 |
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December 30, 2014 |
|
December 31, 2013 |
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Amounts |
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Percent of Revenue |
|
Amounts |
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Percent of Revenue |
|
Amounts |
|
Percent of Revenue |
|
Amounts |
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Percent of Revenue |
Revenues |
|
$ |
499,673 |
|
100.0% |
|
$ |
475,075 |
|
100.0% |
|
$ |
1,976,624 |
|
100.0% |
|
$ |
1,877,910 |
|
100.0% |
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Cost of sales |
|
126,249 |
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25.3% |
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116,015 |
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24.4% |
|
490,306 |
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24.9% |
|
455,685 |
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24.2% |
Labor expenses |
|
162,596 |
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32.5% |
|
150,014 |
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31.6% |
|
646,102 |
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32.7% |
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603,069 |
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32.1% |
Other operating costs and expenses |
|
120,199 |
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24.1% |
|
113,833 |
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24.0% |
|
478,504 |
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24.2% |
|
452,571 |
|
24.1% |
General and administrative expenses |
|
29,169 |
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5.8% |
|
29,323 |
|
6.2% |
|
119,094 |
|
6.0% |
|
114,728 |
|
6.1% |
Depreciation and amortization expenses |
|
21,120 |
|
4.2% |
|
20,452 |
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4.3% |
|
82,835 |
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4.2% |
|
78,558 |
|
4.2% |
Impairment of assets and lease terminations |
|
- |
|
0.0% |
|
(3,807) |
|
(0.8)% |
|
696 |
|
0.0% |
|
(561) |
|
(0.0)% |
Preopening costs |
|
5,548 |
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1.1% |
|
4,879 |
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1.0% |
|
14,356 |
|
0.7% |
|
12,906 |
|
0.7% |
Total costs and expenses |
|
464,881 |
|
93.0% |
|
430,709 |
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90.7% |
|
1,831,893 |
|
92.7% |
|
1,716,956 |
|
91.4% |
Income from operations |
|
34,792 |
|
7.0% |
|
44,366 |
|
9.3% |
|
144,731 |
|
7.3% |
|
160,954 |
|
8.6% |
Interest and other (expense)/income, net |
|
(1,871) |
|
(0.4)% |
|
(1,196) |
|
(0.2)% |
|
(6,187) |
|
(0.3)% |
|
(4,504) |
|
(0.3)% |
Income before income taxes |
|
32,921 |
|
6.6% |
|
43,170 |
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9.1% |
|
138,544 |
|
7.0% |
|
156,450 |
|
8.3% |
Income tax provision |
|
8,435 |
|
1.7% |
|
10,170 |
|
2.2% |
|
37,268 |
|
1.9% |
|
42,094 |
|
2.2% |
Net income |
|
$ |
24,486 |
|
4.9% |
|
$ |
33,000 |
|
6.9% |
|
$ |
101,276 |
|
5.1% |
|
$ |
114,356 |
|
6.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income per share |
|
$ |
0.50 |
|
|
|
$ |
0.64 |
|
|
|
$ |
2.04 |
|
|
|
$ |
2.19 |
|
|
Basic weighted average shares outstanding |
|
49,198 |
|
|
|
51,352 |
|
|
|
49,567 |
|
|
|
52,229 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income per share |
|
$ |
0.48 |
|
|
|
$ |
0.62 |
|
|
|
$ |
1.96 |
|
|
|
$ |
2.10 |
|
|
Diluted weighted average shares outstanding |
|
51,207 |
|
|
|
53,604 |
|
|
|
51,584 |
|
|
|
54,377 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Selected Segment Information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Cheesecake Factory restaurants |
|
$ |
450,465 |
|
|
|
$ |
425,556 |
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|
|
$ |
1,792,796 |
|
|
|
$ |
1,688,036 |
|
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Other |
|
49,208 |
|
|
|
49,519 |
|
|
|
183,828 |
|
|
|
189,874 |
|
|
|
|
$ |
499,673 |
|
|
|
$ |
475,075 |
|
|
|
$ |
1,976,624 |
|
|
|
$ |
1,877,910 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Cheesecake Factory restaurants |
|
$ |
58,524 |
|
|
|
$ |
66,589 |
|
|
|
$ |
240,774 |
|
|
|
$ |
250,230 |
|
|
Other |
|
3,550 |
|
|
|
5,652 |
|
|
|
14,983 |
|
|
|
19,985 |
|
|
Corporate |
|
(27,282) |
|
|
|
(27,875) |
|
|
|
(111,026) |
|
|
|
(109,261) |
|
|
|
|
$ |
34,792 |
|
|
|
$ |
44,366 |
|
|
|
$ |
144,731 |
|
|
|
$ |
160,954 |
|
|
Selected Consolidated Balance Sheet Information |
|
December 30, 2014 |
|
December 31, 2013 |
|
|
|
|
Cash and cash equivalents |
|
$ 58,018 |
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$ 61,751 |
|
|
|
|
Total assets |
|
1,176,452 |
|
1,124,114 |
|
|
|
|
Total liabilities |
|
619,942 |
|
546,761 |
|
|
|
|
Stockholders equity |
|
556,510 |
|
577,353 |
|
|
|
|
|
|
13 Weeks Ended |
|
13 Weeks Ended |
|
52 Weeks Ended |
|
52 Weeks Ended |
Supplemental Information |
|
December 30, 2014 |
|
December 31, 2013 |
|
December 30, 2014 |
|
December 31, 2013 |
The Cheesecake Factory comparable restaurant sales |
|
1.4% |
|
1.1% |
|
1.5% |
|
1.1% |
Restaurants opened during period |
|
5 |
|
6 |
|
10 |
|
9 |
Restaurants open at period-end |
|
189 |
|
180 |
|
189 |
|
180 |
Restaurant operating weeks |
|
2,425 |
|
2,315 |
|
9,510 |
|
9,156 |
26901 Malibu Hills Road, Calabasas Hills, CA 91301 · Telephone (818) 871-3000 · Fax (818) 871-3100
Reconciliation of Non-GAAP Results to GAAP Results
In addition to the results provided in accordance with Generally Accepted Accounting Principles (GAAP) in this press release, the Company is providing non-GAAP measurements which present net income and diluted net income per share excluding the impact from certain items.
The non-GAAP measurements are intended to supplement the presentation of the Companys financial results in accordance with GAAP. The Company believes that the presentation of these items provides additional information to facilitate the comparison of past and present financial results.
|
|
13 Weeks Ended |
|
13 Weeks Ended |
|
52 Weeks Ended |
|
52 Weeks Ended |
|
|
December 30, 2014 |
|
December 31, 2013 |
|
December 30, 2014 |
|
December 31, 2013 |
|
|
(unaudited; in thousands, except per share data) |
Net income (GAAP) |
|
$24,486 |
|
$33,000 |
|
$101,276 |
|
$114,356 |
After-tax impact from: |
|
|
|
|
|
|
|
|
- Impairment of assets and lease terminations (1) |
|
- |
|
(2,284) |
|
418 |
|
(337) |
Net income (non-GAAP) |
|
$24,486 |
|
$30,716 |
|
$101,694 |
|
$114,019 |
|
|
|
|
|
|
|
|
|
Diluted net income per share (GAAP) |
|
$ 0.48 |
|
$ 0.62 |
|
$ 1.96 |
|
$ 2.10 |
After-tax impact from: |
|
|
|
|
|
|
|
|
- Impairment of assets and lease terminations (1) |
|
- |
|
(0.04) |
|
0.01 |
|
(0.01) |
Diluted net income per share (non-GAAP) (2) |
|
$ 0.48 |
|
$ 0.57 |
|
$ 1.97 |
|
$ 2.10 |
(1) The pre-tax amounts associated with these items in fiscal 2014 were $510 in the second quarter and $186 in the first quarter. The pre-tax amounts associated with these items in fiscal 2013 were $(3,807) in the fourth quarter, $1,097 in the third quarter, $1,505 in the second quarter and $644 in the first quarter. All items were recorded in impairment of assets and lease terminations.
(2) Diluted net income per share may not add due to rounding.
###
26901 Malibu Hills Road, Calabasas Hills, CA 91301 · Telephone (818) 871-3000 · Fax (818) 871-3100
|
Five-Year Plan
Sustainable Long-Term Growth WASO Reduction Margin Expansion Revenue Growth
Low Single Digit Mid-Teens Low/Mid Single Digit Earnings Per Share Growth
High Single Digit Mid-Teens+ Total Shareholder Return Expansion of CCF
Comparable sales Additional concepts Flow thru on international Includes
dividends This document contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These
statements involve known and unknown risks, uncertainties and other factors
that may cause the actual results, performance or achievements of the Company
to be materially different from any future results, performance or
achievements expressed or implied by forward-looking statements.
Forward-looking statements speak only as of the dates on which they are made
and the Company undertakes no obligation to publicly update or revise any
forward-looking statements or to make any other forward-looking statements,
whether as a result of new information, future events or otherwise, unless
required to do so by securities laws. Investors are referred to the full
discussion of risks and uncertainties associated with forward-looking
statements and the discussion of risk factors contained in the Companys
latest Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current
Reports on Form 8-K as filed with the SEC, which are available at
www.sec.gov. EXHIBIT 99.2 February 11, 2015
|
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