Investor Conference Call Moved Up To 8:30
a.m. Eastern Time on August 9
Red Robin Gourmet Burgers, Inc., (NASDAQ:RRGB), a casual dining
restaurant chain serving an innovative selection of high-quality
gourmet burgers in a family-friendly atmosphere, today reported
financial results for the quarter ended July 10, 2016.
Second Quarter 2016 Financial Highlights Compared to Second
Quarter 2015
- Total revenues were $305.5 million, an
increase of 4.3%
- Comparable restaurant revenue decreased
3.2% (using constant currency rates)
- Restaurant-level operating profit
margin was 20.9% compared to 22.5% (see Schedule II)
- Adjusted EBITDA was $34.5 million
compared to $35.0 million (see Schedule III)
- Net income was $7.6 million compared to
$11.2 million. Adjusted net income was $10.3 million (see Schedule
I)
- GAAP earnings per diluted share were
$0.55 compared to $0.78. Adjusted earnings per diluted share
were $0.75 (see Schedule I)
- The Company repurchased $20 million of
its common stock
Net income for the second quarter ended July 10, 2016, was
$7.6 million compared to $11.2 million for the same period a year
ago. Earnings per diluted share for the second quarter 2016 were
$0.55 compared to $0.78 in second quarter 2015. Year to date net
income for the twenty-eight weeks ended July 10, 2016, was
$21.8 million compared to $27.7 million for the same period a year
ago. Year to date earnings per diluted share for the twenty-eight
weeks ended July 10, 2016, were $1.59 compared to $1.94 a year
ago.
Excluding the impact of a charge of $0.20 per diluted share for
restaurant impairment, adjusted earnings per diluted share for the
second quarter ended July 10, 2016, were $0.75
compared to $0.78 for the same period a year ago. Year to date
adjusted net income for the twenty-eight weeks ended July 10, 2016,
was $27.9 million, an increase of 3.9% from $26.8 million for the
same period a year ago. See Schedule I for a reconciliation of
adjusted net income and adjusted earnings per share (each, a
non-GAAP financial measure) to net income and earnings per share,
respectively.
“While Red Robin's overall results during the second quarter
fell short of our expectations, we anticipate that our relative
performance will improve by the fourth quarter of this year and we
will regain market share,” said Steve Carley, Red Robin Gourmet
Burgers, Inc. chief executive officer. “Given the challenges facing
our industry, we are addressing immediate opportunities by focusing
on things we can control. These include increasing speed of
service, accentuating everyday value, and fostering more ‘top of
mind’ awareness through local marketing initiatives and a new media
campaign that will launch in the fourth quarter with incremental
spending in select, high penetration markets. We will also remain
disciplined in allocating capital, investing in initiatives to
improve performance and open new restaurants while returning excess
cash to shareholders via stock repurchases.”
Operating Results
Total Company revenues, which primarily include Company-owned
restaurant revenue and franchise royalties, increased 4.3% to
$305.5 million in the second quarter of 2016 from $293.0 million in
the second quarter of 2015. Restaurant revenues increased $23.7
million due to new restaurant openings and acquired
restaurants, partially offset by a $9.5 million, or 3.4%, decrease
in comparable restaurant revenue, which included a $0.5 million, or
0.2%, unfavorable foreign exchange impact, and $0.8 million from
closed restaurants. Franchise and other revenue decreased $0.8
million, primarily driven by a decrease the number of franchisees
from the same period a year ago.
System-wide restaurant revenue (including franchised units) for
the second quarter of 2016 totaled $366.0 million, compared to
$363.2 million for the second quarter in 2015.
Using constant currency rates, comparable revenue decreased 3.2%
in the second quarter of 2016 compared to the same period a year
ago, driven by a 3.9% decrease in guest counts, which was partially
offset by a 0.7% increase in average guest check. Comparable
restaurants are those Company-owned restaurants that have operated
five full quarters during the period presented, and such
restaurants are only included in the comparable metrics if they are
comparable for the entirety of both periods presented.
Restaurant-level operating profit margin (a non-GAAP financial
measure) was 20.9% in the second quarter of 2016 compared to 22.5%
in the same period a year ago. The 160 basis point margin decrease
in the second quarter of 2016 resulted from a 160 basis point
increase in labor costs, a 110 basis point increase in other
restaurant operating expenses, and a 30 basis point increase in
occupancy costs, partially offset by a 140 basis point decrease in
cost of sales. Schedule II of this earnings release defines
restaurant-level operating profit, discusses why it is a useful
metric for investors, and reconciles this metric to income from
operations and net income.
Restaurant Revenue Performance
(1)
Q2 2016
Q2 2015
Average weekly sales per unit: Company-owned – Total (2) $ 55,912 $
58,208 Company-owned – Comparable (2) $ 56,373 $ 58,171 Franchised
units – Comparable $ 61,866 $ 63,750 Total operating weeks:
Company-owned units 5,372 4,916 Franchised units
1,032
1,188
_________________________________________________________
(1)
Excludes Red Robin Burger Works® fast
casual restaurants, which had 132 and 120 total operating weeks in
the second quarter of 2016 and 2015.
(2)
Calculated using constant currency rates.
Using historical currency rates, the average weekly sales per unit
in the second quarter of 2015 for Company-owned – Total and
Company-owned – Comparable was $58,321 and $58,285.
Other Results
Depreciation and amortization costs increased to $19.2 million
in the second quarter of 2016 from $17.3 million in the second
quarter of 2015. The increased depreciation was primarily related
to new restaurants opened and acquired since the second quarter
2015 and restaurants remodeled under the Brand Transformation
Initiative.
General and administrative costs were $20.0 million, or 6.5% of
total revenues, in the second quarter of 2016, compared to $23.0
million, or 7.9% of total revenues in the same period a year ago.
The decrease of $3.0 million resulted primarily from decreased
incentive compensation and professional services.
Selling expenses were $11.0 million, or 3.6% of total revenues,
in the second quarter of 2016, compared to $11.1 million, or 3.8%,
of total revenues during the same period in the prior year.
Pre-opening costs were $2.2 million in the second quarter of
2016, compared to $1.4 million in the same period a year ago. The
increase was primarily due to timing of restaurant openings.
The Company had an effective tax rate of 15.4% in the second
quarter of fiscal year 2016, compared to a 28.3% effective tax rate
in the same period a year ago.
Restaurant Development and Acquisitions
As of the end of the second quarter of 2016, there were 449
Company-owned Red Robin® restaurants, 11 Red Robin Burger Works®,
and 86 franchised Red Robin restaurants, for a total of 546
restaurants. During the second quarter, the Company opened seven
Red Robin restaurants and relocated one Red Robin restaurant.
Under the Brand Transformation Initiative, the Company completed
30 restaurant remodels during the second quarter 2016. The Company
has over 390 restaurants conforming to its new brand standards,
including new restaurant openings, and will substantially complete
the remodeling of Company-owned restaurants by the end of 2016.
Balance Sheet and Liquidity
On June 30, 2016, the Company replaced its existing credit
facility with a new Credit Agreement that provides a $400 million
revolving line of credit.
During the second quarter of 2016, the Company purchased 388,913
shares of the Company’s common stock for $20.0 million. As of July
10, 2016, there was approximately $80.0 million remaining under the
current board authorization for stock repurchases.
As of July 10, 2016, the Company had cash and cash equivalents
of $25.9 million and total debt of $305.1 million, including $11.7
million of capital lease liabilities. The Company funded the share
repurchases, restaurant remodels, construction of new restaurants,
and other capital expenditures with cash flow from operations and
incremental borrowings of $39.0 million on its credit facility
during the second quarter 2016. As of July 10, 2016, the Company
had outstanding borrowings under its credit facility of $292.5
million, in addition to amounts issued under letters of credit
of $8.5 million, which reduce the amount available under its
credit facility but were not recorded as debt.
Outlook for 2016
Red Robin’s 2016 fiscal year consists of 52 weeks, which will
end on December 25, 2016 (“2016”).
The Company expects total revenues to grow around 5.0% in 2016,
driven by increased operating weeks associated with locations
opened and acquired in 2015 and 2016, partially offset by lower
comparable restaurant revenue of almost 2.0%. The Company plans to
open approximately 24 new Red Robins and three Burger Works in
2016.
Restaurant-level operating profit margin in fiscal year 2016 is
expected to be around 21.0%.
General and administrative costs are expected to be between $94
million and $96 million, while selling expenses are expected to be
approximately 3.2% of total revenues. Pre-opening and acquisition
costs are expected to total near $8.5 million in fiscal year
2016.
Depreciation and amortization is projected to be between $83
million and $85 million.
Interest expense is expected to be approximately $7 million,
while the income tax rate in fiscal year 2016 is expected to be
between 20.0% and 21.0%.
Adjusted earnings before interest, taxes and depreciation
(EBITDA) is expected to range between $145 million and $150 million
in 2016. EBITDA is a non-GAAP number and defined in Schedule
III.
The Company expects capital investments between $190 million and
$195 million, which includes the 13 restaurants acquired in the
first quarter. In addition to new restaurant openings, the Company
expects to remodel around 70 locations as part of its Brand
Transformation Initiative, with 62 locations completed as of the
end of the second quarter.
The sensitivity of the Company’s earnings per diluted share to a
1% change in guest counts for fiscal year 2016 is estimated to be
$0.40 on an annualized basis. Additionally, a 10 basis point change
in restaurant-level operating profit margin is expected to impact
earnings per diluted share by approximately $0.10, and a change of
approximately $135,000 in pre-tax income or expense is equivalent
to approximately $0.01 per diluted share.
Investor Conference Call and Webcast
Red Robin will host an investor conference call to discuss its
second quarter 2016 results on August 9, 2016 at 8:30 a.m. ET. The
conference call number is (888) 205-6705, or for international
callers (913) 312-1378. The financial information that the Company
intends to discuss during the conference call is included in this
press release and will be available in the “Company” section of the
Company’s website at www.redrobin.com by selecting the "Investor
Relations" link, then the “News Releases” link. Prior to the
conference call, the Company will post supplemental financial
information that will be discussed during the call and live
webcast.
To access the supplemental financial information and webcast,
please visit www.redrobin.com and select the “Investors” link from
the menu. A replay of the live conference call will be available
from two hours after the call until midnight on Tuesday, August 16,
2016. The replay can be accessed by dialing (877) 870-5176, or
(858) 384-5517 for international callers. The conference ID is
2474834.
About Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB)
Red Robin Gourmet Burgers, Inc. (www.redrobin.com), a casual dining restaurant
chain founded in 1969 that operates through its wholly-owned
subsidiary, Red Robin International, Inc., and under the trade
name Red Robin Gourmet Burgers and Brews, is the Gourmet
Burger Authority™, famous for serving more than two dozen
craveable, high-quality burgers with Bottomless Steak
Fries® in a fun environment welcoming to guests of all
ages. Whether a family dining with kids, adults grabbing a
drink at the bar, or teens enjoying a meal, Red Robin offers an
unparalleled experience for its guests. In addition to its
many burger offerings, Red Robin serves a wide variety of salads,
soups, appetizers, entrees, desserts, and signature
beverages. Red Robin offers a variety of options behind the
bar, including its extensive selection of local and regional beers,
and innovative adult beer shakes and cocktails, earning the
restaurant a VIBE Vista Award for Best Beer Program in a
Multi-Unit Chain Restaurant. There are more than 540 Red Robin
restaurants across the United States and Canada, including Red
Robin Burger Works® locations and those operating under
franchise agreements. Red Robin… YUMMM®! Connect with Red Robin on
Facebook, Instagram, and Twitter.
Forward-Looking Statements
Forward-looking statements in this press release regarding our
strategic initiatives, future performance, revenues, EBITDA,
capital investments, anticipated number and timing of new
restaurant openings (including Red Robin Burger Works) and
operating weeks, the anticipated number and timing of restaurant
remodels under the Brand Transformation Initiative, anticipated
costs, expenses including depreciation, amortization, and interest
expense, tax rate, sensitivity of earnings per share and other
projected financial measures, statements under the heading “Outlook
for 2016”, and all other statements that are not historical facts,
are made under the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. These statements are based on
assumptions believed by the Company to be reasonable and speak only
as of the date on which such statements are made. Without limiting
the generality of the foregoing, words such as “expect,” “believe,”
“anticipate,” “intend,” “plan,” “project,” “will” or “estimate,” or
the negative or other variations thereof or comparable terminology
are intended to identify forward-looking statements. We undertake
no obligation to update such statements to reflect events or
circumstances arising after such date, and we caution investors not
to place undue reliance on any such forward-looking statements.
Forward-looking statements involve risks and uncertainties that
could cause actual results to differ materially from those
described in the statements based on a number of factors, including
but not limited to the following: the effectiveness of our business
improvement initiatives; the ability to fulfill planned expansion
and restaurant remodeling; the effectiveness of our marketing
strategies and initiatives to achieve restaurant sales growth; the
cost and availability of key food products, labor, and energy; our
ability to achieve anticipated revenue and cost savings from our
anticipated new technology systems and tools in the restaurants and
other initiatives; availability of capital or credit facility
borrowings; our ability to increase our to-go and other offerings;
the adequacy of cash flows or available debt resources to fund
operations and growth opportunities; federal, state, and local
regulation of our business; and other risk factors described from
time to time in the Company’s Form 10-K, Form 10-Q and Form 8-K
reports (including all amendments to those reports) filed with the
U.S. Securities and Exchange Commission.
RED ROBIN GOURMET BURGERS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
(In thousands, except per share
data)
(Unaudited)
Twelve Weeks Ended Twenty-eight
Weeks Ended July 10, 2016 July 12, 2015
July 10, 2016 July 12, 2015 Revenues:
Restaurant revenue $ 302,117 $ 288,704 $ 698,887 $
677,213
Franchise royalties, fees and other revenue 3,432 4,275
8,788 10,667 Total revenues 305,549
292,979 707,675 687,880 Costs and
expenses:
Restaurant operating costs (exclusive of
depreciation and amortization shown separately below):
Cost of sales 70,831 71,665 163,156 169,615 Labor 102,847 93,513
235,831 217,869 Other operating 40,275 35,356 89,983 81,940
Occupancy 24,905 23,210 57,403 53,357 Depreciation and amortization
19,159 17,260 43,110 40,263 General and administrative 19,972
23,044 55,852 58,039 Selling 11,047 11,082 22,455 24,148
Pre-opening costs and acquisition costs 2,238 1,369 4,610 2,324
Asset impairment 3,860 — 4,685 — Total
costs and expenses 295,134 276,499 677,085
647,555 Income from operations 10,415 16,480 30,590
40,325 Other expense: Interest expense, net and other 1,486
904 3,124 1,964 Income before
income taxes 8,929 15,576 27,466 38,361 Provision for income taxes
1,377 4,410 5,689 10,630 Net income $
7,552 $ 11,166 $ 21,777 $ 27,731
Earnings per share: Basic $ 0.56 $ 0.79 $ 1.60
$ 1.96 Diluted $ 0.55 $ 0.78 $ 1.59 $
1.94 Weighted average shares outstanding: Basic 13,511
14,142 13,582 14,134 Diluted 13,644 14,311 13,724 14,322
RED ROBIN GOURMET BURGERS, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In thousands, except per share
amounts)
(Unaudited)
December 27,
July 10, 2016
2015
Assets: Current Assets: Cash and cash equivalents $ 25,942 $ 22,705
Accounts receivable, net 15,630 27,760 Inventories 28,674 28,223
Prepaid expenses and other current assets 17,684 18,052
Total current assets 87,930 96,740
Property and equipment, net 673,063 603,686 Goodwill 97,118 81,957
Intangible assets, net 43,897 39,573 Other assets, net 24,516
18,023 Total assets $ 926,524 $ 839,979
Liabilities and Stockholders’ Equity: Current Liabilities:
Trade accounts payable $ 19,408 $ 23,392 Construction related
payables 26,211 28,692 Accrued payroll and payroll related
liabilities 37,363 47,587 Unearned revenue 33,480 48,392 Accrued
liabilities and other 37,870 29,610 Total current
liabilities 154,332 177,673 Deferred rent
69,973 66,470 Long-term debt 293,375 202,875 Long-term portion of
capital lease obligations 11,092 7,441 Other non-current
liabilities 16,845 11,209 Total liabilities 545,617
465,668 Stockholders’ Equity: Common stock;
$0.001 par value: 45,000 shares authorized; 17,851 and 17,851
shares issued; 13,292 and 13,628 shares outstanding 18 18 Preferred
stock, $0.001 par value: 3,000 shares authorized; no shares issued
and outstanding — — Treasury stock 4,559 and 4,223 shares, at cost
(185,228 ) (167,339 ) Paid-in capital 207,565 205,995 Accumulated
other loss, net of tax (4,241 ) (5,379 ) Retained earnings 362,793
341,016 Total stockholders’ equity 380,907
374,311 Total liabilities and stockholders’ equity $ 926,524
$ 839,979
Schedule I
Reconciliation of Non-GAAP Results to GAAP
Results(In thousands, except per share data)
In addition to the results provided in accordance with Generally
Accepted Accounting Principles (“GAAP”) throughout this press
release, the Company has provided non-GAAP measurements which
present the 12 and 28 weeks ended July 10, 2016 and July 12, 2015,
net income and basic and diluted earnings per share, excluding the
effects of litigation contingencies, asset impairment charges, and
a change in accounting estimate for gift card breakage. The Company
believes that the presentation of net income and earnings per share
exclusive of the identified item gives the reader additional
insight into the ongoing operational results of the Company. This
supplemental information will assist with comparisons of past and
future financial results against the present financial results
presented herein. Income tax expense related to the change in
accounting estimate was calculated based on the change in the total
tax provision calculation after adjusting for the identified item.
The non-GAAP measurements are intended to supplement the
presentation of the Company’s financial results in accordance with
GAAP.
Twelve Weeks Ended Twenty-eight Weeks
Ended July 10, 2016 July 12, 2015 July
10, 2016 July 12, 2015 Net income as reported $
7,552 $ 11,166 $ 21,777 $ 27,731 Litigation contingencies — — 3,900
— Asset impairment 3,860 — 4,685 — Change in estimate for gift card
breakage — — — (1,369 ) Income tax benefit (expense) (1,153 ) —
(2,509 ) 439 Adjusted net income $ 10,259 $
11,166 $ 27,853 $ 26,801 Basic net
income per share: Net income as reported $ 0.56 $ 0.79 $ 1.60 $
1.96 Litigation contingencies — — 0.29 — Asset impairment 0.29 —
0.34 — Change in estimate for gift card breakage — — — (0.10 )
Income tax benefit (expense) (0.09 ) — (0.18 ) 0.03
Adjusted earnings per share - basic $ 0.76 $ 0.79 $
2.05 $ 1.89 Diluted net income per share: Net
income as reported $ 0.55 $ 0.78 $ 1.59 $ 1.94 Litigation
contingencies — — 0.28 — Asset impairment 0.28 — 0.34 — Change in
estimate for gift card breakage — — — (0.09 ) Income tax benefit
(expense) (0.08 ) — (0.18 ) 0.03 Adjusted earnings
per share - diluted $ 0.75 $ 0.78 $ 2.03 $
1.88 Weighted average shares outstanding Basic 13,511
14,142 13,582 14,134 Diluted 13,644 14,311 13,724 14,322
Schedule II
Reconciliation of Non-GAAP Restaurant-Level
Operating Profit to Incomefrom Operations and Net
Income(In thousands)
The Company believes that restaurant-level operating profit is
an important measure for management and investors because it is
widely regarded in the restaurant industry as a useful metric by
which to evaluate restaurant-level operating efficiency and
performance. The Company defines restaurant-level operating profit
to be restaurant revenue minus restaurant-level operating costs,
excluding restaurant impairment and closure costs. The measure
includes restaurant- level occupancy costs, which include fixed
rents, percentage rents, common area maintenance charges, real
estate and personal property taxes, general liability insurance,
and other property costs, but excludes depreciation related to
restaurant buildings and leasehold improvements. The measure
excludes depreciation and amortization expense, substantially all
of which is related to restaurant-level assets, because such
expenses represent historical sunk costs which do not reflect
current cash outlay for the restaurants. The measure also excludes
selling, general, and administrative costs, and therefore excludes
occupancy costs associated with selling, general, and
administrative functions, and pre-opening costs. The Company
excludes restaurant closure costs as they do not represent a
component of the efficiency of continuing operations. Restaurant
impairment costs are excluded, because, similar to depreciation and
amortization, they represent a non-cash charge for the Company’s
investment in its restaurants and not a component of the efficiency
of restaurant operations. Restaurant-level operating profit is not
a measurement determined in accordance with GAAP and should not be
considered in isolation, or as an alternative, to income from
operations or net income as indicators of financial performance.
Restaurant-level operating profit as presented may not be
comparable to other similarly titled measures of other companies in
our industry. The table below sets forth certain unaudited
information for the 12 and 28 weeks ended July 10, 2016 and July
12, 2015, expressed as a percentage of total revenues, except for
the components of restaurant-level operating profit, which are
expressed as a percentage of restaurant revenue.
Twelve Weeks Ended Twenty-eight Weeks
Ended July 10, 2016 July 12, 2015 July
10, 2016 July 12, 2015 Restaurant revenue $
302,117 98.9 % $ 288,704 98.5 % $
698,887 98.8 % $ 677,213 98.4 %
Restaurant operating costs (1): Cost of sales 70,831 23.4 % 71,665
24.8 % 163,156 23.3 % 169,615 25.0 % Labor 102,847 34.0 % 93,513
32.4 % 235,831 33.7 % 217,869 32.2 % Other operating 40,275 13.4 %
35,356 12.3 % 89,983 13.0 % 81,940 12.1 % Occupancy 24,905
8.3 % 23,210 8.0 % 57,403 8.2 %
53,357 7.9 % Restaurant-level operating profit 63,259
20.9 % 64,960 22.5 % 152,514
21.8 % 154,432 22.8 % Add – Franchise
royalties, fees and other revenue 3,432 1.1 % 4,275 1.5 % 8,788 1.2
% 10,667 1.6 % Deduct – other operating: Depreciation and
amortization 19,159 6.3 % 17,260 5.9 % 43,110 6.1 % 40,263 5.9 %
General and administrative expenses 19,972 6.5 % 23,044 7.9 %
55,852 7.9 % 58,039 8.4 % Selling 11,047 3.6 % 11,082 3.8 % 22,455
3.2 % 24,148 3.5 % Pre-opening & acquisition costs 2,238 0.7 %
1,369 0.5 % 4,610 0.7 % 2,324 0.3 % Asset impairment 3,860
1.3 % — 0.0 % 4,685 0.7 % —
0.0 % Total other operating 56,276 18.4
% 52,755 18.0 % 130,712 18.6 % 124,774
18.1 % Income from operations 10,415 3.4 %
16,480 5.6 % 30,590 4.3 % 40,325 5.9 % Interest expense, net
and other 1,486 0.5 % 904 0.3 % 3,124 0.4 % 1,964 0.3 % Income tax
expense 1,377 0.4 % 4,410 1.5 % 5,689
0.8 % 10,630 1.6 % Total other 2,863
0.9 % 5,314 1.8 % 8,813
1.2 % 12,594 1.9 % Net income $ 7,552
2.5 % $ 11,166 3.8 % 21,777 3.1
% 27,731 4.0 %
(1) Excluding depreciation and
amortization which is shown separately
Certain percentage amounts in the table above do not total due
to rounding as well as the fact that components of restaurant-level
operating profit are expressed as a percentage of restaurant
revenue and not total revenues.
We have not provided a reconciliation of our restaurant-level
operating profit outlook to the most comparable GAAP measure of net
income. Providing net income guidance is potentially misleading and
not practical given the difficulty of projecting event driven
transactional and other non-core operating items that are included
in net income, including asset impairments and income tax valuation
adjustments. The reconciliation restaurant-level operating profit
to income from operations and net income for the historical periods
presented above are indicative of the reconciliations that will be
prepared upon completion of the periods covered by the non-GAAP
guidance.
Schedule III
Reconciliation of Net Income to EBITDA and
Adjusted EBITDA(In thousands, unaudited)
The Company defines EBITDA as net income before interest
expense, provision for income taxes, depreciation and amortization,
and non-cash stock based compensation. EBITDA and adjusted EBITDA
are presented because the Company believes that investors'
understanding of our performance is enhanced by including these
non-GAAP financial measures as a reasonable basis for evaluating
our ongoing results of operations without the effect of non-cash
charges such as depreciation and amortization expenses and asset
disposals, stock-based compensation, and asset impairment charges.
EBITDA and adjusted EBITDA are supplemental measures of operating
performance that do not represent and should not be considered as
alternatives to net income or cash flow from operations, as
determined by GAAP, and our calculation thereof may not be
comparable to that reported by other companies in our industry or
otherwise. Adjusted EBITDA further adjusts EBITDA to reflect the
additions and eliminations shown in the table below. The use of
adjusted EBITDA as a performance measure permits a comparative
assessment of our operating performance relative to our performance
based on our GAAP results, while isolating the effects of some
items that vary from period to period without any correlation to
core operating performance. Adjusted EBITDA as presented may not be
comparable to other similarly-titled measures of other companies,
and our presentation of adjusted EBITDA should not be construed as
an inference that our future results will be unaffected by excluded
or unusual items. We have not provided a reconciliation of our
adjusted EBITDA outlook to the most comparable GAAP measure of net
income. Providing net income guidance is potentially misleading and
not practical given the difficulty of projecting event driven
transactional and other non-core operating items that are included
in net income, including asset impairments and income tax valuation
adjustments. The reconciliations of adjusted EBITDA to net income
for the historical periods presented below are indicative of the
reconciliations that will be prepared upon completion of the
periods covered by the non-GAAP guidance.
Twelve Weeks Ended Twenty-eight Weeks
Ended July 10, 2016 July 12, 2015 July
10, 2016 July 12, 2015 Net income as reported $
7,552 $ 11,166 $ 21,777 $ 27,731 Interest expense, net 1,555 805
3,210 1,893 Provision for income taxes 1,377 4,410 5,689 10,630
Depreciation and amortization 19,159 17,260 43,110 40,263 Non-cash
stock based compensation 989 1,403 3,079 2,849
EBITDA 30,632 35,044 76,865 83,366
Litigation contingencies — — 3,900 — Asset impairment
3,860 — 4,685 — Change in estimate for gift card breakage —
— — (1,369 ) Adjusted EBITDA $ 34,492 $ 35,044
$ 85,450 $ 81,997
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160808006039/en/
For media relations questions:Coyne PRJennifer DeNick,
973-588-2000orFor investor relations questions:Red Robin
Gourmet Burgers, Inc.Terry Harryman, 303-846-6000Chief Accounting
Officer and Interim Chief Financial Officer
Red Robin Gourmet Burgers (NASDAQ:RRGB)
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