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
Recommend:
