LOUISVILLE, Ky.--(BUSINESS WIRE)--
Texas Roadhouse, Inc. (NasdaqGS: TXRH), today announced financial
results for the 13 week period ended April 1, 2014.
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First Quarter
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($000's)
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2014
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2013
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% Change
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Total revenue
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397,142
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359,676
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10
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Income from operations
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40,184
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38,168
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5
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Net income
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26,465
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26,171
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1
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Diluted EPS
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$0.37 |
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$0.37 |
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0
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Results for the first quarter included:
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Comparable restaurant sales increased 2.8% at company restaurants and
3.8% at franchise restaurants;
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Six company and one franchise restaurant were opened;
-
Restaurant margin, as a percentage of restaurant sales, increased 25
basis points to 19.2%;
-
Income tax rate increased 280 basis points to 30.7%, primarily due to
the expiration of certain federal tax credits at the end of 2013;
-
Diluted earnings per share was flat at $0.37 compared to the prior
period due largely to the increase in the income tax rate mentioned
above; and
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Repurchased 960,000 shares of our common stock for $24.2 million.
Kent Taylor, Chief Executive Officer of Texas Roadhouse, Inc.,
commented, "Our operating momentum continued during the first quarter
with double-digit revenue growth. Positive comparable restaurant sales
growth, including solid traffic growth, once again drove our top-line
results and we are pleased to see our sales momentum extend into the
second quarter. As we look ahead, we believe we are well-positioned for
long-term success. We continue to open restaurants with six openings so
far this year. Beyond new restaurant development, our balance sheet and
cash flow remain healthy as we continue to internally fund our growth
while returning excess capital to our shareholders through dividend
payments and share repurchases."
2014 Outlook
The Company reported that comparable restaurant sales at company
restaurants for the first four weeks of its second quarter of fiscal
2014 increased approximately 1.6% compared to the prior year period.
Additionally, the Company noted that these results were negatively
impacted by approximately 1.5% due to the calendar shift of Easter
weekend to this four week April period as compared to the Company's
first quarter of the prior year.
Management reiterated the following expectations for 2014:
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Positive comparable restaurant sales growth;
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25 to 30 company restaurant openings;
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Low single digit food cost inflation;
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An income tax rate of approximately 30.0% to 31.0% which is higher
than the 2013 income tax rate primarily as a result of the expiration
of certain federal tax credits at the end of 2013; and
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Total capital expenditures of $100.0 to $110.0 million.
Conference Call
The Company is hosting a conference call today, May 5, 2014 at 5:00 p.m.
Eastern Time to discuss these results. The dial-in number is (877)
719-9801 or (719) 325-4834 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 8578726 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 425 restaurants system-wide in 48 states and three
foreign countries. 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; our ability to continue to
generate the necessary cash flows to fund our new restaurant growth,
continue our share repurchase program and pay a quarterly cash dividend;
strength of consumer spending; pending or future legal claims;
conditions beyond our control such as weather, natural disasters,
disease outbreaks, epidemics or pandemics impacting our customers or
food supplies; acts of war or terrorism and other factors disclosed from
time to time in our filings with the U.S. Securities and Exchange
Commission. Investors should take such risks into account when making
investment decisions. Shareholders 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. We undertake 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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April 1, 2014 |
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March 26, 2013 |
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Revenue:
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Restaurant sales
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$
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393,956
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$
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356,564
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Franchise royalties and fees
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3,186
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3,112
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Total revenue
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397,142
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359,676
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Costs and expenses:
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Restaurant operating costs (excluding depreciation and amortization
shown separately below):
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Cost of sales
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134,812
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124,552
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Labor
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114,672
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101,661
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Rent
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8,042
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7,057
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Other operating
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60,853
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55,778
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Pre-opening
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4,277
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2,824
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Depreciation and amortization
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14,085
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12,212
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Impairment and closure
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17
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57
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General and administrative
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20,200
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17,367
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Total costs and expenses
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356,958
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321,508
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Income from operations
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40,184
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38,168
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Interest expense, net
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558
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595
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Equity income from investments in unconsolidated affiliates
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212
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180
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Income before taxes
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39,838
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37,753
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Provision for income taxes
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12,230
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10,534
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Net income including noncontrolling interests
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$
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27,608
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$
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27,219
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Less: Net income attributable to noncontrolling interests
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1,143
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1,048
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Net income attributable to Texas Roadhouse, Inc. and subsidiaries
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$
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26,465
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$
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26,171
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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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0.38
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$
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0.38
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Diluted
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$
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0.37
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$
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0.37
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Weighted average shares outstanding:
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Basic
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70,132
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69,359
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Diluted
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71,080
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70,583
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Texas Roadhouse, Inc. and Subsidiaries
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Condensed Consolidated Balance Sheets
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(in thousands)
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(unaudited)
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(As Adjusted) (1)
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April 1, 2014 |
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December 31, 2013 |
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Cash and cash equivalents
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$
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90,696
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$
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94,874
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Other current assets
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42,654
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50,869
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Property and equipment, net
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596,656
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586,212
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Goodwill
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117,197
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117,197
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Intangible assets, net
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7,433
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7,876
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Other assets
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19,903
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20,616
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Total assets
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$
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874,539
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$
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877,644
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Current maturities of long-term debt and obligations under capital
leases
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240
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243
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Other current liabilities
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177,925
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174,937
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Long-term debt and obligations under capital leases, excluding
current maturities
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50,922
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50,990
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Other liabilities
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57,112
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57,614
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Texas Roadhouse, Inc. and subsidiaries stockholders' equity
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582,140
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587,659
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Noncontrolling interests
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6,200
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6,201
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Total liabilities and equity
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$
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874,539
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$
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877,644
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(1)
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December 31, 2013 revised to reflect the impact of adjustments to
purchase price accounting related to 2013 acquisitions in accordance
with generally accepted accounting principles ("GAAP").
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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)
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(unaudited)
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13 Weeks Ended
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April 1, 2014 |
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March 26, 2013 |
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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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27,608
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$
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27,219
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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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14,085
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12,212
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Share-based compensation expense
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3,621
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3,512
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Other noncash adjustments
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(284
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)
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(110
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)
|
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Change in working capital
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(66
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)
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(4,062
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)
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Net cash provided by operating activities
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44,964
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38,771
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Cash flows from investing activities:
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Capital expenditures - property and equipment
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(23,087
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)
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(14,955
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)
|
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Proceeds from sale of property and equipment, including insurance
proceeds
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-
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132
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Net cash used in investing activities
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(23,087
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)
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(14,823
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)
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Cash flows from financing activities:
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Repurchase of shares of common stock
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(24,172
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)
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-
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Dividends paid
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-
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(13,135
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)
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Other financing activities
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(1,883
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)
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2,894
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Net cash used in financing activities
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(26,055
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)
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(10,241
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)
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Net (decrease) increase in cash and cash equivalents
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(4,178
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)
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13,707
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Cash and cash equivalents - beginning of year
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94,874
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|
|
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81,746
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Cash and cash equivalents - end of period
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|
$
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90,696
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$
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95,453
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Texas Roadhouse, Inc. and Subsidiaries
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Supplemental Financial and Operating Information
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($ amounts in thousands, except weekly sales by group and
restaurant margin per store week)
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(unaudited)
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First Quarter
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Change
|
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2014
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2013
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vs LY
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|
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Restaurant openings
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Company - Texas Roadhouse |
|
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6
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|
3
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|
3
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|
|
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Company - Other
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0
|
|
|
|
|
0
|
|
|
|
0
|
|
|
|
|
Franchise - Texas Roadhouse |
|
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|
1
|
|
|
|
|
2
|
|
|
|
(1
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)
|
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|
Total
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|
|
7
|
|
|
|
|
5
|
|
|
|
2
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Restaurants open at the end of the quarter
|
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|
|
|
|
|
|
|
|
|
|
|
|
Company - Texas Roadhouse |
|
|
|
351
|
|
|
|
|
321
|
|
|
|
30
|
|
|
|
|
Company - Other
|
|
|
|
1
|
|
|
|
|
2
|
|
|
|
(1
|
)
|
|
|
|
Franchise - Texas Roadhouse |
|
|
|
75
|
|
|
|
|
74
|
|
|
|
1
|
|
|
|
|
Total
|
|
|
|
427
|
|
|
|
|
397
|
|
|
|
30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company-owned restaurants
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restaurant sales
|
|
|
$
|
393,956
|
|
|
|
$
|
356,564
|
|
|
|
10.5
|
|
%
|
|
|
Store weeks
|
|
|
|
4,524
|
|
|
|
|
4,174
|
|
|
|
8.4
|
|
%
|
|
|
Comparable restaurant sales growth (1)
|
|
|
|
2.8
|
|
%
|
|
|
3.5
|
|
%
|
|
|
|
|
|
Texas Roadhouse restaurants only:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable restaurant sales growth (1)
|
|
|
|
2.8
|
|
%
|
|
|
3.5
|
|
%
|
|
|
|
|
|
|
Average unit volume (2)
|
|
|
$
|
1,121
|
|
|
|
$
|
1,096
|
|
|
|
2.2
|
|
%
|
|
|
|
Weekly sales by group:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable restaurants (310 units)
|
|
|
$
|
86,670
|
|
|
|
|
|
|
|
|
|
|
|
|
Average unit volume restaurants (19 units)
|
|
|
$
|
78,958
|
|
|
|
|
|
|
|
|
|
|
|
|
Restaurants less than 6 months old (22 units)
|
|
|
$
|
102,589
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restaurant operating costs (as a % of restaurant sales)
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
|
34.2
|
|
%
|
|
|
34.9
|
|
%
|
|
(71
|
)
|
bps
|
|
Labor
|
|
|
|
|
29.1
|
|
%
|
|
|
28.5
|
|
%
|
|
60
|
|
bps
|
|
Rent
|
|
|
|
|
2.0
|
|
%
|
|
|
2.0
|
|
%
|
|
6
|
|
bps
|
|
Other operating
|
|
|
|
15.4
|
|
%
|
|
|
15.6
|
|
%
|
|
(20
|
)
|
bps
|
|
Total
|
|
|
|
|
80.8
|
|
%
|
|
|
81.1
|
|
%
|
|
(25
|
)
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restaurant margin (3)
|
|
|
|
19.2
|
|
%
|
|
|
18.9
|
|
%
|
|
25
|
|
bps
|
|
|
Restaurant margin $/Store week
|
|
|
$
|
16,706
|
|
|
|
$
|
16,175
|
|
|
|
3.3
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Franchise-owned restaurants
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Franchise royalties and fees
|
|
|
$
|
3,186
|
|
|
|
$
|
3,112
|
|
|
|
2.4
|
|
%
|
|
|
Store weeks
|
|
|
|
962
|
|
|
|
|
945
|
|
|
|
1.8
|
|
%
|
|
|
Comparable restaurant sales growth (1)
|
|
|
|
3.8
|
|
%
|
|
|
4.5
|
|
%
|
|
|
|
|
|
Average unit volume (2)
|
|
|
$
|
1,191
|
|
|
|
$
|
1,124
|
|
|
|
5.9
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-opening expense
|
|
|
$
|
4,277
|
|
|
|
$
|
2,824
|
|
|
|
51.5
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
$
|
14,085
|
|
|
|
$
|
12,212
|
|
|
|
15.3
|
|
%
|
|
|
As a % of revenue
|
|
|
|
3.5
|
|
%
|
|
|
3.4
|
|
%
|
|
15
|
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative expenses
|
|
|
$
|
20,200
|
|
|
|
$
|
17,367
|
|
|
|
16.3
|
|
%
|
|
|
As a % of revenue
|
|
|
|
5.1
|
|
%
|
|
|
4.8
|
|
%
|
|
26
|
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Comparable restaurant sales growth reflects the change in sales
over the same period of the prior year and 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 Texas Roadhouse
restaurants open six months as of the beginning of the measurement
period, excluding sales from restaurants closed during the period.
|
|
|
|
(3) Restaurant margin represents restaurant sales less cost of
sales, labor, rent and other operating costs (as a percentage of
restaurant sales). Restaurant margin is widely regarded in the
restaurant industry as a useful metric by which to evaluate
restaurant-level operating efficiency and performance. Restaurant
margin is not a measurement determined in accordance with GAAP and
should not be considered in isolation, or as an alternative, to
income from operations or other similarly titled measures of other
companies.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts may not foot due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
Texas Roadhouse, Inc.
Investor Relations:
Tonya Robinson,
502-515-7300
or
Media:
Travis Doster, 502-638-5457
Source: Texas Roadhouse, Inc.
News Provided by Acquire Media