LOUISVILLE, Ky.--(BUSINESS WIRE)--
Texas Roadhouse, Inc. (NasdaqGS: TXRH), today announced financial
results for the 13 week period ended March 29, 2011.
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First Quarter
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($000's)
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2011
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2010
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% Change
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Total revenue
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283,785
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259,624
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9
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Income from operations
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30,209
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30,106
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-
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Net income
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19,793
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19,241
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3
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Diluted EPS
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$0.27
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$0.27
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1
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Results for the first quarter included:
-
Comparable restaurant sales increased 4.6% at company restaurants and
3.8% at franchise restaurants;
-
2 company restaurants opened;
-
Restaurant margins, as a percentage of restaurant sales, decreased 88
basis points to 19.2%;
-
The Company repurchased 1,500,000 shares of its common stock for a
total purchase price of $25.3 million;
-
Diluted earnings per share increased 1% compared to the prior year
period.
G.J. Hart, President and Chief Executive Officer of Texas Roadhouse,
commented, "We were very pleased with yet another quarter of strong,
top-line momentum, driven by rising guest counts and new restaurant
performance. We credit our on-going commitment to Legendary Food and
Legendary Service at an affordable price, our fundamental business
proposition. That said, commodity inflation continues to present
challenges in the marketplace and, although we have modestly raised
prices to address the issue, it has not been enough to fully offset the
rising costs. If appropriate, we believe we are well positioned to take
further modest price increases to help offset inflation.
Hart continued, "We continue to have a lot of confidence in our unit
economics and are excited to continue to ramp our development.
Accordingly, we plan to open more restaurants in 2011 than in 2010, and
we are building a pipeline to open even more units in 2012. This caused
pre-opening costs to increase in the first quarter, something we expect
to persist throughout the year. While negative to earnings per share
short term, we strongly believe the longer term dynamics of new unit and
operating week growth is good for our teams and our shareholders.
Finally, while we continue to invest in our core business, we are
pleased to be returning excess capital to shareholders through dividends
and share repurchases. We remain committed to driving total shareholder
return through our operational performance, our growth and returning
capital to shareholders."
Outlook for 2011
The Company reported that comparable restaurant sales for the first four
weeks of the second quarter of fiscal 2011 increased approximately 5.4%
compared to the prior year period.
The Company's current expectation for 2011 diluted earnings per share
growth is 5% to 10% compared to 2010. This estimate is based, in part,
on the following assumptions:
-
Comparable restaurant sales growth of 3.5% to 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, May 2, 2011, at 5:00
p.m. Eastern Time to discuss these results. The dial-in number is (888)
312-9837 or (719) 325-2192 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 9369386 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, 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.
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Texas Roadhouse, Inc. and Subsidiaries
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Condensed Consolidated Statements of Income
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(in thousands, except per share data)
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(unaudited)
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13 Weeks Ended
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March 29, 2011
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March 30, 2010
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Revenue:
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Restaurant sales
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$
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281,320
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$
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257,342
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Franchise royalties and fees
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2,465
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2,282
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Total revenue
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283,785
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259,624
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Costs and expenses:
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Restaurant operating costs:
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Cost of sales
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93,541
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82,799
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Labor
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82,720
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74,909
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Rent
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5,657
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5,270
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Other operating
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45,281
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42,598
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Pre-opening
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1,890
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1,105
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Depreciation and amortization
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10,600
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10,337
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Impairment and closure
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26
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158
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General and administrative
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13,861
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12,342
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Total costs and expenses
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253,576
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229,518
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Income from operations
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30,209
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30,106
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Interest expense, net
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565
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730
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Equity income from investments in unconsolidated affiliates
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103
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108
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Income before taxes
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29,747
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29,484
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Provision for income taxes
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9,272
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9,606
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Net income including noncontrolling interests
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$
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20,475
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$
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19,878
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Less: Net income attributable to noncontrolling interests
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682
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637
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Net income attributable to Texas Roadhouse, Inc. and subsidiaries
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$
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19,793
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$
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19,241
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Net income per common share attributable to Texas Roadhouse, Inc.
and subsidiaries:
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Basic
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$
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0.27
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$
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0.27
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Diluted
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$
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0.27
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$
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0.27
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Weighted average shares outstanding:
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Basic
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72,052
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70,690
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Diluted
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73,727
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72,226
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Texas Roadhouse, Inc. and Subsidiaries
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Condensed Consolidated Balance Sheet
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(in thousands)
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(unaudited)
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March 29, 2011
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December 28, 2010
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Cash and cash equivalents
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$
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77,420
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$
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82,215
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Other current assets
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29,903
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31,707
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Property and equipment, net
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460,522
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458,983
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Goodwill
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111,785
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111,785
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Intangible asset, net
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9,849
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10,118
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Other assets
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9,325
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7,993
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Total assets
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$
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698,804
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$
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702,801
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Current maturities of long-term debt and obligations under capital
leases
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281
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274
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Other current liabilities
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113,971
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111,784
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Long-term debt and obligations under capital leases, excluding
current maturities
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51,832
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51,906
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Other liabilities
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40,258
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39,455
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Texas Roadhouse, Inc. and subsidiaries stockholders' equity
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489,625
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496,616
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Noncontrolling interests
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2,837
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2,766
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Total liabilities and equity
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$
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698,804
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$
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702,801
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Texas Roadhouse, Inc. and Subsidiaries
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Condensed Consolidated Statements of Cash Flows
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(in thousands, except per share data)
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(unaudited)
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13 Weeks Ended
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March 29, 2011
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March 30, 2010
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Cash flows from operating activities:
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Net income including noncontrolling interests
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$
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20,475
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$
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19,878
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Adjustments to reconcile net income to net cash provided by
operating activities
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Depreciation and amortization
|
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10,600
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|
|
|
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10,337
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|
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Share-based compensation expense
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|
2,960
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|
|
|
1,830
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|
|
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Other noncash adjustments
|
|
|
172
|
|
|
|
|
1,815
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|
|
Change in working capital
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(2,071
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)
|
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|
|
(11,176
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)
|
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|
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Net cash provided by operating activities
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|
32,136
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|
|
|
|
22,684
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|
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|
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Cash flows from investing activities:
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|
|
|
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Capital expenditures - property and equipment
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(12,458
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)
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|
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(7,822
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)
|
|
Proceeds from sale of property and equipment, including insurance
proceeds
|
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|
49
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21
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|
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Net cash used in investing activities
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(12,409
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)
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|
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(7,801
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)
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Cash flows from financing activities:
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|
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Repayments of revolving credit facility, net
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-
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(12,000
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)
|
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Repurchase shares of common stock
|
|
|
(25,269
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)
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|
-
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Other financing activities
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|
747
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|
|
|
|
4,002
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|
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|
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Net cash used in financing activities
|
|
|
(24,522
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)
|
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|
|
(7,998
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)
|
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|
|
|
|
|
|
|
|
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Net (decrease) increase in cash and cash equivalents
|
|
|
(4,795
|
)
|
|
|
|
6,885
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|
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Cash and cash equivalents - beginning of year
|
|
|
82,215
|
|
|
|
|
46,858
|
|
|
Cash and cash equivalents - end of year
|
|
$
|
77,420
|
|
|
|
$
|
53,743
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Texas Roadhouse, Inc. and Subsidiaries
|
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Supplemental Financial and Operating Information
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($ amounts in thousands)
|
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(unaudited)
|
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|
|
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|
|
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|
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|
|
|
|
|
|
|
First Quarter
|
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|
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Change
|
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|
|
|
|
2011
|
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|
|
2010
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|
|
|
vs LY
|
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|
|
|
|
|
|
|
|
|
|
|
|
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|
Restaurant openings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company
|
|
|
2
|
|
|
|
|
3
|
|
|
|
(1
|
)
|
|
|
|
Franchise
|
|
|
0
|
|
|
|
|
0
|
|
|
|
0
|
|
|
|
|
Total
|
|
|
2
|
|
|
|
|
3
|
|
|
|
(1
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)
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Restaurants open at the end of the quarter
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|
|
|
|
|
|
|
|
|
|
|
|
Company
|
|
|
276
|
|
|
|
|
264
|
|
|
|
12
|
|
|
|
|
Franchise
|
|
|
71
|
|
|
|
|
70
|
|
|
|
1
|
|
|
|
|
Total
|
|
|
347
|
|
|
|
|
334
|
|
|
|
13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company-owned restaurants
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restaurant sales
|
|
$
|
281,320
|
|
|
|
$
|
257,342
|
|
|
|
9.3
|
|
%
|
|
|
Store weeks
|
|
|
3,568
|
|
|
|
|
3,412
|
|
|
|
4.6
|
|
%
|
|
|
Comparable restaurant sales growth (1)
|
|
|
4.6
|
|
%
|
|
|
0.4
|
|
%
|
|
|
|
|
|
Average unit volume (2)
|
|
$
|
1,022
|
|
|
|
$
|
975
|
|
|
|
4.8
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restaurant operating costs (as a % of restaurant sales)
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
33.3
|
|
%
|
|
|
32.2
|
|
%
|
|
108
|
|
bps
|
|
|
Labor
|
|
|
29.4
|
|
%
|
|
|
29.1
|
|
%
|
|
30
|
|
bps
|
|
|
Rent
|
|
|
2.0
|
|
%
|
|
|
2.0
|
|
%
|
|
(4
|
)
|
bps
|
|
|
Other operating
|
|
|
16.1
|
|
%
|
|
|
16.6
|
|
%
|
|
(46
|
)
|
bps
|
|
|
Total
|
|
|
80.8
|
|
%
|
|
|
79.9
|
|
%
|
|
88
|
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restaurant margins (3)
|
|
|
19.2
|
|
%
|
|
|
20.1
|
|
%
|
|
(88
|
)
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Franchise-owned restaurants
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Franchise royalties and fees
|
|
$
|
2,465
|
|
|
|
$
|
2,282
|
|
|
|
8.0
|
|
%
|
|
|
Store weeks
|
|
|
897
|
|
|
|
|
910
|
|
|
|
(1.4
|
)
|
%
|
|
|
Comparable restaurant sales growth (1)
|
|
|
3.8
|
|
%
|
|
|
0.9
|
|
%
|
|
|
|
|
|
Average unit volume (2)
|
|
$
|
994
|
|
|
|
$
|
964
|
|
|
|
3.1
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-opening expense
|
|
$
|
1,890
|
|
|
|
$
|
1,105
|
|
|
|
71.0
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
$
|
10,600
|
|
|
|
$
|
10,337
|
|
|
|
2.5
|
|
%
|
|
|
As a % of revenue
|
|
|
3.7
|
|
%
|
|
|
4.0
|
|
%
|
|
(25
|
)
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment and closure
|
|
$
|
26
|
|
|
|
$
|
158
|
|
|
|
NM
|
|
|
|
|
As a % of revenue
|
|
|
0.0
|
|
%
|
|
|
0.1
|
|
%
|
|
(5
|
)
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative expenses
|
|
$
|
13,861
|
|
|
|
$
|
12,342
|
|
|
|
12.3
|
|
%
|
|
|
As a % of revenue
|
|
|
4.9
|
|
%
|
|
|
4.8
|
|
%
|
|
13
|
|
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
or
Media:
Travis Doster, 502-638-5457
Source: Texas Roadhouse, Inc.
News Provided by Acquire Media