LOUISVILLE, Ky.--(BUSINESS WIRE)--
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
Source: Texas Roadhouse, Inc.
News Provided by Acquire Media