Member access

4-Traders Homepage  >  Shares  >  Nasdaq  >  Texas Roadhouse Inc    TXRH   US8826811098

SummaryQuotesChart AnalysisNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 

TEXAS ROADHOUSE : Texas Roadhouse, Inc. Announces Second Quarter 2011 Results

08/01/2011 | 04:05pm US/Eastern
Recommend:
0

Texas Roadhouse, Inc. (NasdaqGS: TXRH), today announced financial results for the 13 and 26 week periods ended June 28, 2011.

  Second Quarter   Year to Date
($000's)   2011     2010 % Change   2011     2010 % Change
 
Total revenue 279,572 255,162 10 563,357 514,786 9
Income from operations 23,748 23,329 2 53,957 53,435 1
Net income 16,076 15,036 7 35,869 34,277 5
Diluted EPS $ 0.22 $ 0.21 7 $ 0.49 $ 0.47 4

Results for the second quarter included:

  • Comparable restaurant sales increased 4.4% at company restaurants and 3.6% at franchise restaurants;
  • Three company restaurants opened;
  • Restaurant margins, as a percentage of restaurant sales, decreased 69 basis points to 18.1%;
  • Diluted earnings per share increased 7% to $0.22 from $0.21 in the prior year period.

Results year-to-date included:

  • Comparable restaurant sales increased 4.5% at company restaurants and 3.8% at franchise restaurants;
  • Five company restaurants opened;
  • Restaurant margins decreased 79 basis points to 18.7%;
  • Diluted earnings per share increased 4% to $0.49 from $0.47 in the prior period.

G.J. Hart, President and Chief Executive Officer of Texas Roadhouse, commented, "We maintained our positive sales momentum through the second quarter generating double digit revenue gains and a seven percent increase in earnings per share. In addition, sales performance at newer restaurants was a highlight as they continued to outpace our system. We continue to build an increasing pipeline of new locations and expect to open at least 25 restaurants in 2012, a 25% increase over our forecast for this year. Finally, our cash flow remains healthy, allowing us to not only fund new development internally, but also return capital to shareholders through share repurchases and our second quarterly dividend in July. We are pleased with our overall progress in an otherwise uncertain environment and we continue to believe Texas Roadhouse is among the best positioned companies in the casual dining sector."

Outlook for 2011

The Company reported that comparable restaurant sales at company restaurants for the first four weeks of the third quarter of fiscal 2011 increased approximately 3.9% compared to the prior year period.

The Company moderated its current expectation for 2011 diluted earnings per share growth from 5 to 10% to approximately 5% compared to 2010. This resulted from slightly moderated sales and moderated margin expectations due to higher overall inflationary pressures. Additionally, this full year 2011 estimate is based, in part, on the following assumptions:

  • Comparable company restaurant sales growth of 4.0% to 4.5%;
  • Approximately 20 company restaurant openings;
  • Food cost inflation of approximately 4.0%; and
  • Total capital expenditures of $65 to $70 million.

Conference Call

The Company is hosting a conference call today, August 1, 2011, at 5:00 p.m. Eastern Time to discuss these results. The dial-in number is (888) 286-2317 or (719) 325-2143 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 3919112 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 345 restaurants system-wide in 46 states. 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, strength of consumer spending, conditions beyond the Company's control such as weather, natural disasters, disease outbreaks, epidemics or pandemics impacting the Company's customers or food supplies, acts of war or terrorism and other factors disclosed from time to time in the Company's filings with the U.S. Securities and Exchange Commission. Investors should take such risks into account when making investment decisions. Stockholders 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. The Company undertakes 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 26 Weeks Ended
June 28, 2011   June 29, 2010 June 28, 2011   June 29, 2010
 
Revenue:
Restaurant sales $ 277,089 $ 252,835 $ 558,409 $ 510,177
Franchise royalties and fees   2,483   2,327   4,948   4,609
 
Total revenue   279,572   255,162   563,357   514,786
 
Costs and expenses:
Restaurant operating costs:
Cost of sales 92,266 82,660 185,807 165,459
Labor 82,912 74,497 165,632 149,406
Rent 5,700 5,287 11,357 10,557
Other operating 45,938 42,767 91,219 85,365
Pre-opening 2,196 1,307 4,086 2,412
Depreciation and amortization 10,553 10,262 21,153 20,599
Impairment and closure 20 100 46 258
General and administrative   16,239   14,953   30,100   27,295
 
Total costs and expenses   255,824   231,833   509,400   461,351
 
Income from operations 23,748 23,329 53,957 53,435
 
Interest expense, net 542 704 1,107 1,434
Equity income from investments in
unconsolidated affiliates   97   92   200   200
 
Income before taxes 23,303 22,717 53,050 52,201
Provision for income taxes   6,604   7,049   15,876   16,655
 
Net income including noncontrolling interests $ 16,699 $ 15,668 $ 37,174 $ 35,546
Less: Net income attributable to noncontrolling interests   623   632   1,305   1,269

Net income attributable to
Texas Roadhouse, Inc. and
subsidiaries

$ 16,076 $ 15,036 $ 35,869 $ 34,277
 

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

Basic $ 0.23 $ 0.21 $ 0.50 $ 0.48
Diluted $ 0.22 $ 0.21 $ 0.49 $ 0.47
 
Weighted average shares outstanding:
Basic   71,261   71,471   71,654   71,076
Diluted   72,791   72,961   73,256   72,587

Texas Roadhouse, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(in thousands, except per share data)
(unaudited)
         
26 Weeks Ended
June 28, 2011   June 29, 2010
 
 
Cash flows from operating activities:
Net income including noncontrolling interests $ 37,174 $ 35,546
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization 21,153 20,599
Share-based compensation expense 5,733 3,736
Other noncash adjustments 2,075 2,395
Change in working capital   (9,784 )   (13,948 )
Net cash provided by operating activities   56,351     48,328  
 
Cash flows from investing activities:
Capital expenditures - property and equipment (29,093 ) (17,967 )
Proceeds from sale of property and equipment, including insurance proceeds   75     51  
Net cash used in investing activities   (29,018 )   (17,916 )
 
Cash flows from financing activities:
Repayments of revolving credit facility, net - (22,000 )
Repurchase shares of common stock (25,269 ) -
Dividends paid (5,692 ) -
Other financing activities   789     4,965  
Net cash used in financing activities   (30,172 )   (17,035 )
 
Net (decrease) increase in cash and cash equivalents (2,839 ) 13,377
Cash and cash equivalents - beginning of year   82,215     46,858  
Cash and cash equivalents - end of year $ 79,376   $ 60,235  
Texas Roadhouse, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands)
       
(unaudited)
June 28, 2011   December 28, 2010
 
 
Cash and cash equivalents $ 79,376 $ 82,215
Other current assets 29,218 31,707
Property and equipment, net 467,378 458,983
Goodwill 111,785 111,785
Intangible assets, net 9,580 10,118
Other assets 10,872 7,993
   
Total assets $ 708,209 $ 702,801
 
 
Current maturities of long-term debt
and obligations under capital leases 289 274
Other current liabilities 104,905 111,784
Long-term debt and obligations under
capital leases, excluding current maturities 51,757 51,906
Other liabilities 44,813 39,455
Texas Roadhouse, Inc. and subsidiaries stockholders' equity 502,632 496,616
Noncontrolling interests 3,813 2,766
   
Total liabilities and equity $ 708,209 $ 702,801
Texas Roadhouse, Inc. and Subsidiaries
Supplemental Financial and Operating Information
($ amounts in thousands)
(unaudited)
           
Second Quarter Change Year to Date Change
  2011   2010 vs LY   2011   2010 vs LY
 
Restaurant openings
Company 3 1 2 5 4 1
Franchise 0 1 (1 ) 0 1 (1 )
Total 3 2 1 5 5 0
 
Restaurants open at the end of the quarter
Company 279 264 15
Franchise 71 71 0
Total 350 335 15
 
Company-owned restaurants
Restaurant sales $ 277,089 $ 252,835 9.6 % $ 558,409 $ 510,177 9.5 %
Store weeks 3,607 3,432 5.1 % 7,175 6,844 4.8 %
Comparable restaurant sales growth (1) 4.4 % 1.4 % 4.5 % 0.9 %
Average unit volume (2) $ 995 $ 952 4.6 % $ 2,017 $ 1,925 4.8 %
 

Restaurant operating costs
(as a % of restaurant
sales)

Cost of sales 33.3 % 32.7 % 61 bps 33.3 % 32.4 % 84 bps
Labor 29.9 % 29.5 % 46 bps 29.7 % 29.3 % 38 bps
Rent 2.1 % 2.1 % (3 ) bps 2.0 % 2.1 % (4 ) bps
Other operating 16.6 % 16.9 % (34 ) bps 16.3 % 16.7 % (40 ) bps
Total 81.9 % 81.2 % 69 bps 81.3 % 80.5 % 79 bps
 
Restaurant margins (3) 18.1 % 18.8 % (69 ) bps 18.7 % 19.5 % (79 ) bps
 
Franchise-owned restaurants
Franchise royalties and fees $ 2,483 $ 2,327 6.7 % $ 4,948 $ 4,609 7.4 %
Store weeks 923 911 1.3 % 1,846 1,821 1.4 %
Comparable restaurant sales growth (1) 3.6 % 2.0 % 3.8 % 1.4 %
Average unit volume (2) $ 981 $ 951 3.2 % $ 1,979 $ 1,919 3.1 %
 
Pre-opening expense $ 2,196 $ 1,307 68.0 % $ 4,086 $ 2,412 69.4 %
 
Impairment and closure $ 20 $ 100 NM $ 46 $ 258 NM
 
Depreciation and amortization $ 10,553 $ 10,262 2.8 % $ 21,153 $ 20,599 2.7 %
As a % of revenue 3.8 % 4.0 % (25 ) bps 3.8 % 4.0 % (25 ) bps
 
General and administrative expenses $ 16,239 $ 14,953 8.6 % $ 30,100 $ 27,295 10.3 %
As a % of revenue 5.8 % 5.9 % (5 ) bps 5.3 % 5.3 % 4 bps
(1) Comparable restaurant sales growth includes sales from restaurants open 18 months as of the beginning of the measurement period, excluding sales from restaurants closed during the period.
   
(2) Average unit volume includes sales from restaurants open six months as of the beginning of the measurement period, excluding sales from restaurants closed during the period.
(3) Restaurant margins represent restaurant sales less restaurant operating costs (as a percentage of restaurant sales).
 
NM - Not meaningful
Amounts may not foot due to rounding.

Texas Roadhouse, Inc.
Investor Relations
Price Cooper, 502-515-7300
Media
Travis Doster, 502-638-5457


© Business Wire 2011
Recommend :
0
React to this article
Latest news on TEXAS ROADHOUSE INC
04/15 TEXAS ROADHOUSE : Ranks on Forbes' List of America's 100 Most Trustworthy Compan..
04/14 TEXAS ROADHOUSE : Husson softball players balancing athletics, academics, work s..
04/10 TEXAS ROADHOUSE : Debuts on Forbes’ List of America’s 100 Most Trust..
04/09 TEXAS ROADHOUSE : lunch to raise money for Special Olympics Iowa
04/08 TEXAS ROADHOUSE : to Announce First Quarter Earnings on May 5, 2014
03/17 TEXAS ROADHOUSE INC : ex-dividend day
03/13 TEXAS ROADHOUSE : Your guide to St. Pat's fun ; Festivities will be Saturday, 2 ..
02/28 TEXAS ROADHOUSE INC : Texas roadhouse, inc. - 10-k - management's discussion and..
02/25 TEXAS ROADHOUSE INC : TEXAS ROADHOUSE, INC. FILES (8-K) Disclosing Results of Op..
02/24 TEXAS ROADHOUSE INC : Texas Roadhouse, Inc. Announces Fourth Quarter 2013 Result..
Advertisement
Chart
Duration : Period :
Texas Roadhouse Inc Technical Analysis Chart | TXRH | US8826811098 | 4-Traders
Income Statement Evolution
Texas Roadhouse Inc : Income Statement Evolution
More Financials
Dynamic quotes  
ON
| OFF