BBQ Holdings, Inc. (NASDAQ: BBQ) (the “Company”), an innovating
global owner and operator of restaurants today reported financial
results for the fourth fiscal quarter and year ended December 29,
2019.
On March 9, 2020, the acquisition of the assets
of Granite City Food & Brewery became official and BBQ Holdings
now owns and operates 18 Granite City restaurants in 10 states. The
price for the assets purchased was $3,650,000 plus assumed
liabilities.
Fourth Quarter 2019
Highlights:
- Company-owned same store net sales increased 4.7%, driven by a
6.4% increase in To-Go same store net sales and a 26.0% increase in
Catering, marking nine of the ten prior quarters experiencing
positive comparable sales.
- Franchise-operated same store net sales increased 0.4%
year-over-year.
- Achieved 54% of restaurant sales, net in growing off-premise
lines of business and 46% dine-in.
- Net loss of $1.8 million, driven by acquisition and pre-opening
costs.
- Formed a subsidiary with Clark Championship Products LLC with
an exclusive license to sell Clark Crew BBQ sauces, rubs and other
consumer packaged goods, and opened the first Clark Crew BBQ
restaurant in Oklahoma City, Oklahoma.
- Opened a 3,000 square foot Famous Dave’s restaurant in
Minneapolis, Minnesota.
Full Year 2019 Highlights
2019:
- Company-owned same store net sales increased 2.0%, driven by a
6.9% increase in To-Go same store net sales and a 13.7% increase in
Catering.
- Franchise-operated same store net sales increased 1.0%
year-over-year.
- 51% of net restaurant revenue was generated from off-premise
sales with 49% from dine-in sales.
- Net loss of $649,000, driven by acquisition and pre-opening
costs.
- Adjusted EBITDA of $3.8 million.
- Approximately 167,178 signups for our loyalty app since it was
launched in December 2018, which generated $4.6 million of
system-wide sales in 2019.
- Reacquired 17 Famous Dave’s franchise stores
Executive Comments
Jeff Crivello, CEO, commented, “The fourth
quarter and full year 2019 was focused on moving our growth
initiatives forward. We expect a twelve-month transition period to
make all necessary improvements to the Famous Dave’s restaurants
that we reacquired. In December, we opened the first Clark Crew BBQ
in Oklahoma City, which is seeing an enormous amount of demand.
Also in December, we opened a 3,000 sqft, bar-centric Famous Dave’s
in Uptown Minneapolis, which is tracking toward our
goals.
Our company-owned restaurants have generated
positive comparable sales for nine of the last ten quarters, a
statistic that separates us from almost every other multi-location
restaurant operator within our industry, and our franchisees have
sustained their positive comparable sales trend for this
year.
Subsequently, we closed on the acquisition of
eighteen Granite City Food and Brewery locations and one Real Urban
BBQ.
The effect of the Coronavirus on our business,
and restaurant industry will be drastic, but we have taken
operational and financial measures to help navigate through the
next few difficult months. The ultimate financial impairment is
unknown without knowing the duration of the forced dining room
closures. We remain committed to our Famous guests and staff
members that we will get through this tough period.”
Key Operating Metrics
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Three Months Ended |
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Year Ended |
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December 29, 2019 |
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December 30, 2018 |
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December 29, 2019 |
|
|
December 30, 2018 |
|
Restaurant count: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Franchise-operated |
|
|
96 |
|
|
|
127 |
|
|
|
|
96 |
|
|
|
127 |
|
|
Company-owned |
|
|
32 |
|
|
|
17 |
|
|
|
|
32 |
|
|
|
17 |
|
|
Total |
|
|
128 |
|
|
|
144 |
|
|
|
|
128 |
|
|
|
144 |
|
|
Same store net restaurant
sales %: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Franchise-operated, domestic |
|
|
0.7 |
|
% |
|
(1.0 |
) |
% |
|
|
1.2 |
|
% |
|
(1.9 |
) |
% |
Franchise-operated, international(1) |
|
|
(9.9 |
) |
% |
|
(25.8 |
) |
% |
|
|
(7.3 |
) |
% |
|
(12.0 |
) |
% |
Franchise-operated total |
|
|
0.4 |
|
% |
|
(1.8 |
) |
% |
|
|
1.0 |
|
% |
|
(2.9 |
) |
% |
Company-owned |
|
|
4.7 |
|
% |
|
2.2 |
|
% |
|
|
2.0 |
|
% |
|
2.7 |
|
% |
Total |
|
|
0.9 |
|
% |
|
(1.3 |
) |
% |
|
|
1.1 |
|
% |
|
(1.5 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands, expect per
share data) |
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|
|
|
|
|
|
|
|
|
|
|
System-wide restaurant
sales(2) |
|
$ |
76,940 |
|
|
$ |
83,412 |
|
|
|
$ |
333,695 |
|
|
$ |
358,073 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to
shareholders |
|
$ |
(1,788 |
) |
|
$ |
1,070 |
|
|
|
$ |
(649 |
) |
|
$ |
4,862 |
|
|
Adjusted net income
attributable to shareholders(3) |
|
|
(729 |
) |
|
|
1,138 |
|
|
|
|
1,410 |
|
|
|
5,304 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income attributable
to shareholders, per diluted share |
|
$ |
(0.20 |
) |
|
$ |
0.12 |
|
|
|
$ |
(0.07 |
) |
|
$ |
0.57 |
|
|
Adjusted net income
attributable to shareholders, per diluted share(3) |
|
|
(0.08 |
) |
|
|
0.13 |
|
|
|
|
0.15 |
|
|
|
0.62 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA(3) |
|
$ |
(754 |
) |
|
$ |
1,226 |
|
|
|
$ |
3,751 |
|
|
$ |
7,736 |
|
|
(1) International franchise comparable sales
declines are primarily related to Puerto Rico, which closed as a
result of effects of the hurricanes.(2) System-wide restaurant
sales include sales for all Company-owned and franchise-operated
restaurants, as reported by franchisees. Restaurant sales for
franchise-operated restaurants are not revenues of the Company and
are not included in the Company’s consolidated financial
statements.(3) Adjusted net income (loss) from continuing
operations and adjusted EBITDA are non-GAAP measures. A
reconciliation of all non-GAAP measures to the most directly
comparable GAAP measure is included in the accompanying financial
tables. See “Non-GAAP Reconciliation.”
Fourth Quarter 2019 Review
Total revenue for the fourth quarter of 2019 was
$23.3 million, up 73.2% from the fourth quarter of 2018. The
increase in year-over-year restaurant net sales for the quarter
ended December 29, 2019 was driven primarily by the
acquisition of Famous Dave’s stores in Colorado, Michigan, Ohio,
Wisconsin, Indiana, Kentucky, Iowa, and Arizona and a 4.7% increase
in company-owned same store net sales.
On a weighted basis, same store net sales for
our To-Go and Catering lines of business increased 6.4% and 26.0%,
respectively, in the fourth quarter of fiscal 2019 as compared to
the prior year period, partially offset by a decline net sales,
while To Go and Catering represented 36% and 18% of restaurant net
sales, respectively.
Restaurant-level operating margin, as a
percentage of restaurant net sales, for Company-owned restaurants
was (3.1)% in the fourth quarter of fiscal 2019 compared to (2.9)%
in the fourth quarter of fiscal 2018. This decline in
restaurant-level operating margin was primarily a result of
acquisitions of new stores in 2019.
General and administrative expenses for the
quarter ended December 29, 2019 and December 30, 2018 represented
approximately 14.8% and 15.4% of total revenues, respectively.
While as a percentage of revenues general and administrative
expenses decreased year over year, we incurred additional
expenditures for acquisition costs and ongoing oversight of our new
restaurants.
Net loss attributable to shareholders was
approximately $1.8 million, or $0.20 per share, in the fourth
quarter of fiscal 2019 compared to net income attributable to
shareholders of approximately $1.1 million, or $0.12 per share, in
the fourth quarter of fiscal 2018. Adjusted net loss
attributable to shareholders, a non-GAAP measure, was approximately
$729,000, or $0.08 per share, compared to adjusted net income
attributable to shareholders of approximately $1.1 million, or
$0.12 per diluted share, in the fourth quarter of fiscal 2018. A
reconciliation between adjusted net income attributable to
shareholders and its most directly comparable GAAP measure is
included in the accompanying financial tables.
Fiscal Year 2019 Review
Total revenue for fiscal year 2019 was $82.3
million, up 49.9% from fiscal year 2018. The increase in
year-over-year restaurant net sales for the year ended
December 29, 2019 was driven primarily by the acquisition of
Famous Dave’s stores in Colorado, Michigan, Ohio, Wisconsin,
Indiana, Kentucky, Iowa, and Arizona and an increase in
company-owned same store net sales of 2.0%, partially offset by
corporate restaurant closures.
On a weighted basis, same store net sales for
our To-Go and Catering lines of business increased 6.9% and 13.7%,
respectively, in fiscal 2019 as compared to fiscal 2018, partially
offset by a decline in our Dine In line of business of 4.3%. During
fiscal 2019, Dine In represented approximately 49% of our total
restaurant net sales, while To Go and Catering represented 36% and
15% of restaurant net sales, respectively.
Restaurant-level operating margin, as a
percentage of restaurant net sales, for Company-owned restaurants
was (0.1)% in fiscal 2019 compared to 1.3% in fiscal 2018. This
decline in restaurant-level operating margin in 2019 was primarily
a result of the acquisitions of new restaurants which our company
committed additional expenditures in order to improve
operations.
General and administrative expenses for the
fiscal years ended December 29, 2019 and December 30, 2018
represented approximately 13.4% and 14.6% of total revenues,
respectively. While as a percentage of revenues general and
administrative expenses decreased year over year, we incurred
additional expenditures for acquisition costs and ongoing oversight
of our new restaurants.
Net loss attributable to shareholders was
approximately $649,000, or $0.07 per share, in fiscal 2019 compared
to net income attributable to shareholders of approximately $4.9
million, or $0.56 per diluted share, in fiscal 2018. Adjusted net
income attributable to shareholders, a non-GAAP measure, was
approximately $1.4 million, or $0.15 per diluted share, compared to
adjusted net income attributable to shareholders of approximately
$5.3 million, or $0.62 per diluted share, in fiscal 2018. A
reconciliation between adjusted net income attributable to
shareholders and its most directly comparable GAAP measure is
included in the accompanying financial tables.
About BBQ Holdings
BBQ Holdings, Inc. (NASDAQ: BBQ) BBQ Holdings is
a national restaurant company engaged in the ownership and
operation of casual and fast dining restaurants. As of March
27, 2020, BBQ Holdings had four brands with 139 overall locations
in 28 states and three countries, including 48 company-owned and 91
franchise-operated restaurants. While BBQ Holdings continues to
diversify its ownership in the restaurant community, it was founded
with the principle of combining the “art and science” of barbecue
to serve up the very best of the best to barbecue lovers
everywhere. BBQ Holdings, through partnerships, has extended Travis
Clark’s award winning line of barbecue sauces, rubs and seasonings
into the retail market. Along with a wide variety of BBQ favorites
served at their BBQ restaurants, BBQ Holdings newest addition,
Granite City Food and Brewery, offers award winning craft beer and
a made-from-scratch, chef driven menu featuring contemporary
American cuisine.
Non-GAAP Financial Measures
To supplement its consolidated financial
statements, which are prepared and presented in accordance with
accounting principles generally accepted in the United States
(“GAAP”), the Company uses non-GAAP measures including those
indicated below. These non-GAAP measures exclude significant
expenses and income that are required by GAAP to be recorded in the
Company’s consolidated financial statements and are subject to
inherent limitations. By providing non-GAAP measures, together with
a reconciliation to the most comparable GAAP measure, the Company
believes that it is enhancing investors’ understanding of the
Company’s business and results of operations. These measures are
not intended to be considered in isolation of, as substitutes for,
or superior to, financial measures prepared and presented in
accordance with GAAP. The non-GAAP measures presented may be
different from the measures used by other companies. The Company
urges investors to review the reconciliation of its non-GAAP
measures to the most directly comparable GAAP measure, included in
the accompanying financial tables.
Adjusted net income attributable to shareholders
is net income attributable to shareholders, plus asset impairment,
estimated lease termination charges and other closing costs,
settlement agreements, net (loss) gain on disposal of equipment,
stock-based compensation, severance, acquisition costs, and the
related tax impact. This number is divided by the weighted-average
number of diluted shares of common stock outstanding during each
period presented to arrive at adjusted net income, per share.
Adjusted EBITDA is net income (loss), plus asset impairment,
estimated lease termination charges and other closing costs,
settlement agreements, depreciation and amortization, interest
expense, net, net (loss) gain on disposal of equipment, stock-based
compensation, severance, acquisition costs and provision (benefit)
for income taxes.
Forward-Looking Statements
Statements in this press release that are not
strictly historical, including but not limited to statements
regarding the timing of the Company’s restaurant openings, the
timing of refreshes and the timing or success of refranchising
plans, are forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. These
forward-looking statements involve known and unknown risks, which
may cause the Company’s actual results to differ materially from
expected results. Although the Company believes the expectations
reflected in any forward-looking statements are based on reasonable
assumptions, it can give no assurance that its expectation will be
attained. Factors that could cause actual results to differ
materially from the Company’s expectation include the impact of the
COVID-19 virus pandemic, financial performance, restaurant industry
conditions, execution of restaurant development and construction
programs, franchisee performance, changes in local or national
economic conditions, availability of financing, governmental
approvals and other risks detailed from time to time in the
Company’s SEC reports.
Contact: Jeff Crivello – Chief Executive Officer952-294-1300
Darrow Associates, Inc.Peter Seltzberg – Managing
Director516-419-9915pseltzberg@darrowir.com
BBQ HOLDINGS, INC. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF
OPERATIONS (in thousands, except per share
data)(Unaudited)
|
Three Months Ended |
|
Year Ended |
|
|
December 29, 2019 |
|
December 30, 2018 |
|
December 29, 2019 |
|
December 30, 2018 |
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
Restaurant sales, net |
$ |
19,952 |
|
|
$ |
9,480 |
|
|
$ |
67,278 |
|
|
$ |
38,051 |
|
|
Franchise royalty and fee revenue |
|
2,566 |
|
|
|
3,248 |
|
|
|
12,126 |
|
|
|
13,871 |
|
|
Franchisee national advertising fund contributions |
|
341 |
|
|
|
437 |
|
|
|
1,616 |
|
|
|
1,932 |
|
|
Licensing and other revenue |
|
410 |
|
|
|
268 |
|
|
|
1,249 |
|
|
|
1,034 |
|
|
Total revenue |
|
23,269 |
|
|
|
13,433 |
|
|
|
82,269 |
|
|
|
54,888 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Food and beverage costs |
|
6,473 |
|
|
|
3,066 |
|
|
|
21,541 |
|
|
|
11,973 |
|
|
Labor and benefits costs |
|
7,312 |
|
|
|
3,505 |
|
|
|
24,565 |
|
|
|
13,663 |
|
|
Operating expenses |
|
6,780 |
|
|
|
3,186 |
|
|
|
21,269 |
|
|
|
11,932 |
|
|
Depreciation and amortization expenses |
|
876 |
|
|
|
281 |
|
|
|
2,231 |
|
|
|
1,264 |
|
|
General and administrative expenses |
|
3,445 |
|
|
|
2,066 |
|
|
|
10,992 |
|
|
|
7,988 |
|
|
National advertising fund expenses |
|
341 |
|
|
|
437 |
|
|
|
1,616 |
|
|
|
1,932 |
|
|
Asset impairment, estimated lease termination charges and other
closing costs, net |
|
578 |
|
|
|
2 |
|
|
|
1,296 |
|
|
|
145 |
|
|
Pre-opening expenses |
|
366 |
|
|
|
— |
|
|
|
460 |
|
|
|
— |
|
|
(Gain) loss on disposal of property and bargain purchases, net |
|
100 |
|
|
|
— |
|
|
|
(74 |
) |
|
|
29 |
|
|
Total costs and expenses |
|
26,271 |
|
|
|
12,543 |
|
|
|
83,896 |
|
|
|
48,926 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from
operations |
|
(3,002 |
) |
|
|
890 |
|
|
|
(1,627 |
) |
|
|
5,962 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense): |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
(102 |
) |
|
|
(71 |
) |
|
|
(494 |
) |
|
|
(493 |
) |
|
Interest income |
|
101 |
|
|
|
43 |
|
|
|
215 |
|
|
|
122 |
|
|
Total other expense |
|
(1 |
) |
|
|
(28 |
) |
|
|
(279 |
) |
|
|
(371 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income before
income taxes |
|
(3,003 |
) |
|
|
862 |
|
|
|
(1,906 |
) |
|
|
5,591 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax benefit
(expense) |
|
684 |
|
|
|
208 |
|
|
|
659 |
|
|
|
(729 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income |
|
(2,319 |
) |
|
|
1,070 |
|
|
|
(1,247 |
) |
|
|
4,862 |
|
|
Less: Net loss
attributable to non-controlling interest |
|
531 |
|
|
|
— |
|
|
|
598 |
|
|
|
— |
|
|
Net (loss) income
attributable to shareholders |
$ |
(1,788 |
) |
|
$ |
1,070 |
|
|
$ |
(649 |
) |
|
$ |
4,862 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net (loss)
income per share attributable to shareholders |
$ |
(0.20 |
) |
|
$ |
0.12 |
|
|
$ |
(0.07 |
) |
|
$ |
0.57 |
|
|
Diluted net (loss)
income per share attributable to shareholders |
$ |
(0.20 |
) |
|
$ |
0.12 |
|
|
$ |
(0.07 |
) |
|
$ |
0.56 |
|
|
Weighted average
shares outstanding - basic |
|
9,117 |
|
|
|
9,092 |
|
|
|
9,099 |
|
|
|
8,599 |
|
|
Weighted average
shares outstanding - diluted |
|
9,117 |
|
|
|
9,098 |
|
|
|
9,099 |
|
|
|
8,624 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BBQ HOLDINGS, INC. AND
SUBSIDIARIES OPERATING
RESULTS (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Year Ended |
|
|
|
|
December 29, 2019 |
|
December 30, 2018 |
|
|
December 29, 2019 |
|
December 30, 2018 |
|
|
Food and beverage costs(1) |
|
32.4 |
|
% |
32.3 |
|
% |
|
32.0 |
|
% |
31.5 |
% |
|
Labor and benefits
costs(1) |
|
36.6 |
|
% |
37.0 |
|
% |
|
36.5 |
|
% |
35.9 |
% |
|
Operating expenses(1) |
|
34.0 |
|
% |
33.6 |
|
% |
|
31.6 |
|
% |
31.4 |
% |
|
Restaurant level operating margin(1)(3) |
|
(3.1 |
) |
% |
(2.9 |
) |
% |
|
(0.1 |
) |
% |
1.3 |
% |
|
Depreciation and amortization
expenses(2) |
|
3.8 |
|
% |
2.1 |
|
% |
|
2.7 |
|
% |
2.3 |
% |
|
General and administrative
expenses(2) |
|
14.8 |
|
% |
15.4 |
|
% |
|
13.4 |
|
% |
14.6 |
% |
|
(Loss) income from
operations(2) |
|
(12.9 |
) |
% |
6.6 |
|
% |
|
(2.0 |
) |
% |
10.9 |
% |
|
(1) As a percentage of restaurant sales,
net(2) As a percentage of total revenue(3) Restaurant
level margins are equal to restaurant sales, net, less restaurant
level food and beverage costs, labor and benefit costs, and
operating expenses.
BBQ HOLDINGS, INC. AND
SUBSIDIARIESCONSOLIDATED BALANCE
SHEETS (in thousands, except per share
data)(unaudited)
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
Current
assets: |
|
December 29, 2019 |
|
December 30, 2018 |
Cash and cash equivalents |
|
$ |
5,325 |
|
|
$ |
11,598 |
Restricted cash |
|
|
761 |
|
|
|
842 |
Accounts receivable, net of allowance for doubtful accounts of
$132,000 and $192,000, respectively |
|
|
4,379 |
|
|
|
4,300 |
Inventories |
|
|
1,346 |
|
|
|
722 |
Prepaid income taxes and income taxes receivable |
|
|
264 |
|
|
|
377 |
Prepaid expenses and other current assets |
|
|
1,356 |
|
|
|
1,363 |
Assets held for sale |
|
|
2,842 |
|
|
|
— |
Total current
assets |
|
|
16,273 |
|
|
|
19,202 |
|
|
|
|
|
|
|
Property, equipment and leasehold improvements,
net |
|
|
19,756 |
|
|
|
10,385 |
|
|
|
|
|
|
|
Other
assets: |
|
|
|
|
|
|
Operating lease right-of-use assets |
|
|
25,962 |
|
|
|
— |
Goodwill |
|
|
640 |
|
|
|
61 |
Intangible assets, net |
|
|
2,213 |
|
|
|
1,428 |
Deferred tax asset, net |
|
|
6,646 |
|
|
|
5,747 |
Other assets |
|
|
1,591 |
|
|
|
1,533 |
|
|
$ |
73,081 |
|
|
$ |
38,356 |
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
Accounts payable |
|
$ |
3,967 |
|
|
$ |
3,765 |
Current portion of lease liabilities |
|
|
4,230 |
|
|
|
— |
Current portion of long-term debt and financing lease
obligations |
|
|
616 |
|
|
|
1,369 |
Accrued compensation and benefits |
|
|
2,694 |
|
|
|
808 |
Other current liabilities |
|
|
4,975 |
|
|
|
2,970 |
Total current liabilities |
|
|
16,482 |
|
|
|
8,912 |
|
|
|
|
|
|
|
Long-term
liabilities: |
|
|
|
|
|
|
Lease liabilities, less current portion |
|
|
26,957 |
|
|
|
— |
Long-term debt, less current portion |
|
|
6,258 |
|
|
|
2,411 |
Other liabilities |
|
|
1,610 |
|
|
|
4,492 |
Total liabilities |
|
|
51,307 |
|
|
|
15,815 |
|
|
|
|
|
|
|
Shareholders’
equity: |
|
|
|
|
|
|
Common stock, $.01 par value, 100,000 shares authorized, 9,272 and
9,085 shares issued and outstanding at December 29, 2019
and December 30, 2018, respectively |
|
|
93 |
|
|
|
91 |
Additional paid-in capital |
|
|
7,856 |
|
|
|
7,375 |
Retained earnings |
|
|
14,423 |
|
|
|
15,075 |
Total shareholders’
equity |
|
|
22,372 |
|
|
|
22,541 |
Non-controlling interest |
|
|
(598 |
) |
|
|
— |
Total
equity |
|
|
21,774 |
|
|
|
22,541 |
|
|
$ |
73,081 |
|
|
$ |
38,356 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BBQ HOLDINGS, INC. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH
FLOWS (in thousands)(unaudited)
|
|
|
|
|
|
|
|
|
Year Ended |
|
|
December 29, 2019 |
|
December 30, 2018 |
Cash flows from
operating activities: |
|
|
|
|
|
|
Net (loss) income |
|
$ |
(1,247 |
) |
|
$ |
4,862 |
|
Adjustments to reconcile net income to cash flows provided by
operations: |
|
|
|
|
|
|
Depreciation and amortization |
|
|
2,231 |
|
|
|
1,264 |
|
Stock-based compensation |
|
|
463 |
|
|
|
278 |
|
Net (gain) loss on disposal of property and bargain purchases |
|
|
(74 |
) |
|
|
29 |
|
Asset impairment, estimated lease termination charges and other
closing costs (gain), net |
|
|
1,273 |
|
|
|
(46 |
) |
Bad debts recovery |
|
|
239 |
|
|
|
(30 |
) |
Deferred income taxes |
|
|
(688 |
) |
|
|
639 |
|
Other non-cash items |
|
|
291 |
|
|
|
(515 |
) |
Changes in operating assets and liabilities: |
|
|
|
|
|
|
Accounts receivable, net |
|
|
(1,582 |
) |
|
|
(225 |
) |
Other assets |
|
|
(449 |
) |
|
|
(389 |
) |
Accounts payable |
|
|
258 |
|
|
|
(600 |
) |
Accrued and other liabilities |
|
|
1,867 |
|
|
|
(1,390 |
) |
Cash flows provided by operating activities |
|
|
2,582 |
|
|
|
3,877 |
|
|
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
|
|
Proceeds from the sale of assets |
|
|
33 |
|
|
|
1,187 |
|
Purchases of property, equipment and leasehold improvements |
|
|
(6,755 |
) |
|
|
(953 |
) |
Payments for acquired restaurants |
|
|
(6,188 |
) |
|
|
(229 |
) |
Advances on notes receivable |
|
|
(150 |
) |
|
|
(750 |
) |
Purchases of held to maturity securities |
|
|
— |
|
|
|
(6,995 |
) |
Maturity of held to maturity securities |
|
|
— |
|
|
|
6,995 |
|
Payments received on note receivable |
|
|
31 |
|
|
|
— |
|
Cash flows used for investing activities |
|
|
(13,029 |
) |
|
|
(745 |
) |
|
|
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
|
|
Proceeds from long-term debt |
|
|
4,300 |
|
|
|
— |
|
Payments for debt issuance costs |
|
|
(54 |
) |
|
|
— |
|
Payments on long-term debt and financing lease obligations |
|
|
(175 |
) |
|
|
(6,758 |
) |
Proceeds from sale of common stock, net of offering costs |
|
|
— |
|
|
|
5,120 |
|
Proceeds from exercise of stock options |
|
|
22 |
|
|
|
520 |
|
Cash provided by (used for) financing activities |
|
|
4,093 |
|
|
|
(1,118 |
) |
|
|
|
|
|
|
|
(Decrease) increase in
cash, cash equivalents and restricted cash |
|
|
(6,354 |
) |
|
|
2,014 |
|
Cash, cash equivalents
and restricted cash, beginning of period |
|
|
12,440 |
|
|
|
10,426 |
|
Cash, cash equivalents
and restricted cash, end of period |
|
$ |
6,086 |
|
|
$ |
12,440 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BBQ HOLDINGS, INC. AND
SUBSIDIARIESNON-GAAP RECONCILIATION(in
thousands, except per share data)(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
Year Ended |
(dollars in thousands) |
|
December 29, 2019 |
|
December 30, 2018 |
|
|
|
December 29, 2019 |
|
|
December 30, 2018 |
Net income attributable to shareholders |
|
$ |
(1,788 |
) |
|
$ |
1,070 |
|
|
|
|
(649 |
) |
|
|
4,862 |
|
Asset impairment and estimated
lease termination charges and other closing costs |
|
|
578 |
|
|
|
2 |
|
|
|
|
1,296 |
|
|
|
145 |
|
Net gain on disposal of
equipment |
|
|
100 |
|
|
|
— |
|
|
|
|
(74 |
) |
|
|
29 |
|
Stock-based compensation |
|
|
109 |
|
|
|
53 |
|
|
|
|
463 |
|
|
|
278 |
|
Acquisition costs |
|
|
301 |
|
|
|
— |
|
|
|
|
1,071 |
|
|
|
— |
|
Pre-opening costs |
|
|
284 |
|
|
|
— |
|
|
|
|
378 |
|
|
|
— |
|
Severance |
|
|
— |
|
|
|
— |
|
|
|
|
13 |
|
|
|
58 |
|
Tax adjustment |
|
|
(312 |
) |
|
|
13 |
|
|
|
|
(1,088 |
) |
|
|
(68 |
) |
Adjusted net income |
|
$ |
(729 |
) |
|
$ |
1,138 |
|
|
|
$ |
1,410 |
|
|
$ |
5,304 |
|
Basic adjusted net income per
common share |
|
$ |
(0.08 |
) |
|
$ |
0.13 |
|
|
|
$ |
0.15 |
|
|
$ |
0.62 |
|
Diluted adjusted net income
per common share |
|
$ |
(0.08 |
) |
|
$ |
0.13 |
|
|
|
$ |
0.15 |
|
|
$ |
0.62 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common share
outstanding - basic |
|
|
9,117 |
|
|
|
9,092 |
|
|
|
|
9,099 |
|
|
|
8,599 |
|
Weighted average common share
outstanding - diluted |
|
|
9,117 |
|
|
|
9,098 |
|
|
|
|
9,099 |
|
|
|
8,624 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
(2,319 |
) |
|
$ |
1,070 |
|
|
|
$ |
(1,247 |
) |
|
$ |
4,862 |
|
Asset impairment and estimated
lease termination charges and other closing costs |
|
|
578 |
|
|
|
2 |
|
|
|
|
1,296 |
|
|
|
145 |
|
Depreciation and
amortization |
|
|
876 |
|
|
|
281 |
|
|
|
|
2,231 |
|
|
|
1,264 |
|
Interest expense, net |
|
|
1 |
|
|
|
28 |
|
|
|
|
279 |
|
|
|
371 |
|
Net (gain) loss on disposal of
equipment |
|
|
100 |
|
|
|
— |
|
|
|
|
(74 |
) |
|
|
29 |
|
Stock-based compensation |
|
|
109 |
|
|
|
53 |
|
|
|
|
463 |
|
|
|
278 |
|
Acquisition costs |
|
|
301 |
|
|
|
— |
|
|
|
|
1,071 |
|
|
|
— |
|
Pre-opening costs |
|
|
284 |
|
|
|
— |
|
|
|
|
378 |
|
|
|
— |
|
Severance |
|
|
— |
|
|
|
— |
|
|
|
|
13 |
|
|
|
58 |
|
Provision for income
taxes |
|
|
(684 |
) |
|
|
(208 |
) |
|
|
|
(659 |
) |
|
|
729 |
|
Adjusted EBITDA |
|
$ |
(754 |
) |
|
$ |
1,226 |
|
|
|
$ |
3,751 |
|
|
$ |
7,736 |
|
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