TXRH Texas Roadhouse Inc

Texas Roadhouse, Inc. (NasdaqGS: TXRH), today announced financial results for the 13 week period ended March 31, 2015.

            First Quarter ($000's) 2015 2014 % Change   Total revenue $ 460,230 397,142 16 Income from operations 48,600 40,184 21 Net income 32,292 26,465 22 Diluted EPS $ 0.46 $ 0.37 23  

Results for the first quarter included the following highlights:

• Diluted earnings per share increased 23.0% to $0.46 from $0.37 in the prior year;
• Comparable restaurant sales increased 8.9% at company restaurants and 8.0% at franchise restaurants;
• Three company–owned restaurants were opened, including one Bubba's 33 restaurant; and,
• Restaurant margin, as a percentage of restaurant sales, decreased 20 basis points to 19.0%. The impact of higher average unit volume was more than offset by commodity inflation of approximately 5.2%, mostly driven by beef.

Kent Taylor, Chief Executive Officer of Texas Roadhouse, Inc., commented, "We are off to a strong start for the year with another quarter of solid revenue growth driven by increasing guest counts and new restaurant development. We credit our success to our value proposition with consumers and our ability to execute at the restaurant level even in the face of continued commodity inflation. Our development plans for 2015 remain on track with 25 to 30 company restaurant openings this year."

2015 Outlook

The Company reported that comparable restaurant sales at company restaurants for the first four weeks of its second quarter of fiscal 2015 increased approximately 8.4% compared to the prior year period.

Management reiterated the following expectations for 2015:

• Positive comparable restaurant sales growth;
• 25 to 30 company restaurant openings, including as many as five Bubba's 33 restaurants;
• Food cost inflation of 3% to 4%;
• An income tax rate of approximately 30.0% to 31.0% depending on the reinstatement of certain federal tax credits; and
• Total capital expenditures of $135 million to $145 million.

Conference Call

The Company is hosting a conference call today, May 4, 2015 at 5:00 p.m. Eastern Time to discuss these results. The dial-in number is (877) 795-3604 or (719) 325-4804 for international calls. A replay of the call will be available for one week following the conference call. To access the replay, please dial (877) 870-5176 or (858) 384-5517 for international calls, and use 3067251 as the pass code. There will be a simultaneous Web cast conducted at www.texasroadhouse.com.

About the Company

Texas Roadhouse is a casual dining concept that first opened in 1993 and today operates over 455 restaurants system-wide in 49 states and four foreign countries. For more information, please visit the Company’s Web site at www.texasroadhouse.com.

Forward-looking Statements

Certain statements in this release that are not historical facts, including, without limitation, those relating to our anticipated financial performance, are forward-looking statements that involve risks and uncertainties. Such statements are based upon the current beliefs and expectations of the management of the Company. Actual results may vary materially from those contained in forward-looking statements based on a number of factors including, without limitation, the actual number of restaurants opening; the sales at these and our other company and franchise restaurants; changes in restaurant development or operating costs, such as food and labor; our ability to acquire franchise restaurants; our ability to integrate the franchise restaurants we acquire or other concepts we develop; our ability to continue to generate the necessary cash flows to fund our new restaurant growth, continue our share repurchase program and pay a quarterly cash dividend; strength of consumer spending; pending or future legal claims; breaches of security; conditions beyond our control such as weather, natural disasters, disease outbreaks, epidemics or pandemics impacting our customers or food supplies; acts of war or terrorism and other factors disclosed from time to time in our filings with the U.S. Securities and Exchange Commission. Investors should take such risks into account when making investment decisions. Shareholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update any forward-looking statements.

  Texas Roadhouse, Inc. and Subsidiaries Condensed Consolidated Statements of Income (in thousands, except per share data) (unaudited)         13 Weeks Ended March 31, 2015 April 1, 2014   Revenue: Restaurant sales $ 456,293 $ 393,956 Franchise royalties and fees   3,937   3,186   Total revenue   460,230   397,142   Costs and expenses: Restaurant operating costs (excluding depreciation and amortization shown separately below): Cost of sales 159,980 134,812 Labor 131,404 114,672 Rent 8,979 8,042 Other operating 69,317 60,853 Pre-opening 3,818 4,277 Depreciation and amortization 16,335 14,085 Impairment and closure - 17 General and administrative   21,797   20,200   Total costs and expenses   411,630   356,958   Income from operations 48,600 40,184   Interest expense, net 515 558

Equity income from investments in unconsolidated affiliates

  372   212   Income before taxes 48,457 39,838 Provision for income taxes   14,876   12,230   Net income including noncontrolling interests $ 33,581 $ 27,608 Less: Net income attributable to noncontrolling interests   1,289   1,143 Net income attributable to Texas Roadhouse, Inc. and subsidiaries $ 32,292 $ 26,465  

Net income per common share attributable to Texas Roadhouse, Inc. and subsidiaries:

Basic $ 0.46 $ 0.38 Diluted $ 0.46 $ 0.37   Weighted average shares outstanding: Basic   69,841   70,132 Diluted   70,528   71,080     Texas Roadhouse, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (in thousands) (unaudited)         March 31, 2015 December 30, 2014     Cash and cash equivalents $ 98,512 $ 86,122 Other current assets 47,044 61,604 Property and equipment, net 668,088 649,637 Goodwill 116,571 116,571 Intangible assets, net 5,859 6,203 Other assets 24,195 23,005     Total assets $ 960,269 $ 943,142     Current maturities of long-term debt 133 129 Other current liabilities 208,170 215,842 Long-term debt, excluding current maturities 50,659 50,693 Other liabilities 61,543 61,522 Texas Roadhouse, Inc. and subsidiaries stockholders' equity 632,583 607,892 Noncontrolling interests 7,181 7,064     Total liabilities and equity $ 960,269 $ 943,142     Texas Roadhouse, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited)         13 Weeks Ended March 31, 2015 April 1, 2014     Cash flows from operating activities: Net income including noncontrolling interests $ 33,581 $ 27,608 Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization 16,335 14,085 Share-based compensation expense 4,904 3,621 Other noncash adjustments (41 ) (284 ) Change in working capital   2,913     759   Net cash provided by operating activities   57,692     45,789     Cash flows from investing activities: Capital expenditures - property and equipment (33,437 ) (23,087 ) Proceeds from sale of property and equipment, including insurance proceeds   9     -   Net cash used in investing activities   (33,428 )   (23,087 )   Cash flows from financing activities: Repurchase shares of common stock - (24,172 ) Dividends paid (10,443 ) - Other financing activities   (1,431 )   (2,708 ) Net cash used in financing activities   (11,874 )   (26,880 )   Net increase (decrease) in cash and cash equivalents 12,390 (4,178 ) Cash and cash equivalents - beginning of period   86,122     94,874   Cash and cash equivalents - end of period $ 98,512   $ 90,696       Texas Roadhouse, Inc. and Subsidiaries Supplemental Financial and Operating Information ($ amounts in thousands, except weekly sales by group) (unaudited)             First Quarter Change 2015 2014 vs LY   Restaurant openings Company - Texas Roadhouse 2 6 (4 ) Company - Bubba's 33 1 0 1 Company - Other 0 0 0 Franchise - Texas Roadhouse 0 1 (1 ) Total 3 7 (4 )   Restaurants open at the end of the quarter Company - Texas Roadhouse 370 351 19 Company - Bubba's 33 4 1 3 Company - Other 1 0 1 Franchise - Texas Roadhouse 79 75 4 Total 454 427 27   Company-owned restaurants Restaurant sales $ 456,293 $ 393,956 15.8 % Store weeks 4,857 4,524 7.4 % Comparable restaurant sales growth (1) 8.9 % 2.8 % Texas Roadhouse restaurants only: Comparable restaurant sales growth (1) 8.8 % 2.8 % Average unit volume (2) $ 1,220 $ 1,120 9.0 % Weekly sales by group: Comparable restaurants (330 units) $ 93,756 Average unit volume restaurants (28 units) (3) $ 95,047 Restaurants less than 6 months old (12 units) $ 101,832   Restaurant operating costs (as a % of restaurant sales) Cost of sales 35.1 % 34.2 %

84

 bps

Labor 28.8 % 29.1 %

(31

)bps

Rent 2.0 % 2.0 %

(7

)bps

Other operating 15.2 % 15.4 %

(26

)bps

Total 81.0 % 80.8 %

20

 bps

  Restaurant margin (4) 19.0 % 19.2 %

(20

)bps

  Restaurant margin ($ in thousands) $ 86,613 $ 75,577 14.6 % Restaurant margin $/Store week $ 17,833 $ 16,706 6.7 %   Franchise-owned restaurants Franchise royalties and fees $ 3,937 $ 3,186 23.6 % Store weeks 1,027 962 6.8 % Comparable restaurant sales growth (1) 8.0 % 3.8 % Average unit volume (2) $ 1,306 $ 1,190 9.8 %   Pre-opening expense $ 3,818 $ 4,277 (10.7 )%   Depreciation and amortization $ 16,335 $ 14,085 16.0 % As a % of revenue 3.5 % 3.5 %

-

 bps

  General and administrative expenses $ 21,797 $ 20,200 7.9 % As a % of revenue 4.7 % 5.1 %

(35

)bps

  (1) Comparable restaurant sales growth reflects the change in year-over-year sales for restaurants open a full 18 months before the beginning of the period measured, excluding sales from restaurants closed during the period. (2) Average unit volume includes sales from Texas Roadhouse restaurants open for a full six months before the beginning of the period measured, excluding any sales at restaurants closed during the period. (3) Average unit volume restaurants include restaurants open a full six to 18 months before the beginning of the period measured. (4) Restaurant margin represents restaurant sales less cost of sales, labor, rent and other operating costs (as a percentage of restaurant sales). Restaurant margin is widely regarded in the restaurant industry as a useful metric by which to evaluate restaurant-level operating efficiency and performance. Restaurant margin 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 other similarly titled measures of other companies.   Amounts may not foot due to rounding.  

Texas Roadhouse, Inc.Investor RelationsTonya Robinson, 502-515-7269orMediaTravis Doster, 502-638-5457