Revises Fiscal Year 2016 Outlook
Announces Time and Date for Fiscal Third
Quarter 2016 Earnings Conference Call
Red Robin Gourmet Burgers, Inc., (NASDAQ:RRGB), a casual dining
restaurant chain focused on serving an innovative selection of
high-quality gourmet burgers in a family-friendly atmosphere,
today announced preliminary results for its fiscal third
quarter ended October 2, 2016. The Company also revised its outlook
for fiscal year 2016.
The Company expects to report the following estimated financial
results for the fiscal third quarter 2016:
- Total revenues of approximately $297
million
- Comparable restaurant revenue decrease
of 3.6%
- Net loss of approximately $3.0 million
or $0.23 per diluted share
- Adjusted net income of approximately
$5.1 million or $0.38 per diluted share (excluding restaurant
impairment and closure costs of $8.1 million, net of tax, or $0.61
per diluted share)(1)
Preliminary results remain subject to the completion of the
Company’s quarter-end accounting procedures and adjustments and are
subject to change.
“We are making real progress in improving guest traffic and
service, fueled by investments in select initiatives
focused on guest engagement, technology and
operational efficiencies,” said Denny Marie Post, Red Robin Gourmet
Burgers, Inc. chief executive officer. “During the third
quarter, we outperformed the industry benchmark on
guest traffic. Our investment in regaining our edge on
everyday value has come at a cost to profits, further undermined by
weakening industry trends. In addition to acting on
improvements in our core business, we have identified and
begun implementing a path forward to strengthen our
earnings performance, which we will discuss
during our third quarter 2016 earnings conference call
on November 2nd.”
Revised Outlook for Fiscal Year 2016
The Company revised its guidance for full fiscal year 2016,
lowering adjusted EBITDA to an estimated range of $141 million to
$145 million(1). Additional details regarding the Company’s 2016
outlook will be provided on the third quarter 2016 earnings
conference call.
Fiscal Third Quarter 2016 Earnings Conference Call
Final results for the fiscal third quarter of 2016 will be
released shortly after 4:00 p.m. ET on Wednesday, November 2, 2016.
The Company will also host an investor conference call to discuss
these results at 5:00 p.m. ET that same day. The conference call
number is (888) 211-0226, or for international callers (913)
312-0944. The call will also be webcast live from the Company's
website at www.redrobin.com under the investor relations
section.
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
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 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 “Revised Outlook for Fiscal Year
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.
(1) Non-GAAP Financial Information
In addition to the preliminary results provided in accordance
with Generally Accepted Accounting Principles (“GAAP”) throughout
this press release, the Company has provided non-GAAP measurements
that present the 12 weeks ended October 2, 2016, net income and
diluted earnings per share, excluding the effects of restaurant
closure costs and asset impairment charges. 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 was calculated based on the
change in the total tax provision calculation after adjusting for
the identified items. The non-GAAP measurements are intended to
supplement the presentation of the Company’s financial results in
accordance with GAAP.
The Company defines EBITDA as net income before interest
expense, provision for income taxes, depreciation and amortization,
and non-cash stock based compensation. Adjusted EBITDA further
adjusts EBITDA to reflect the additions and eliminations of
litigation contingencies, asset impairment, change in gift card
breakage and restaurant closure costs. Adjusted EBITDA is presented
because the Company believes that investors' understanding of our
performance is enhanced by including this non-GAAP financial
measure 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. 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.
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version on businesswire.com: http://www.businesswire.com/news/home/20161020006548/en/
For media relations questions:Coyne PRJoanna DiNizio,
973-588-2000orFor investor relations questions:ICRRaphael
Gross/Dara Dierks, 203-682-8200
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