EX-99.1 2 a10-12606_2ex99d1.htm EX-99.1

Exhibit 99.1

 

Texas Roadhouse, Inc. Announces Second Quarter 2010 Results

 

LOUISVILLE, Ky (August 2, 2010) — Texas Roadhouse, Inc. (NasdaqGS: TXRH), today announced financial results for the 13 and 26 week periods ended June 29, 2010.

 

 

 

Second Quarter

 

Year to Date

 

($000’s)

 

2010

 

2009

 

% Change

 

2010

 

2009

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue

 

255,162

 

242,423

 

5

 

514,786

 

488,496

 

5

 

Income from operations

 

23,329

 

21,494

 

9

 

53,435

 

43,777

 

22

 

Net income

 

15,036

 

13,741

 

9

 

34,277

 

28,075

 

22

 

Diluted EPS

 

$

0.21

 

$

0.19

 

7

 

$

0.47

 

$

0.40

 

19

 

 

Results for the quarter included:

 

·                  Comparable restaurant sales increased 1.4% at company restaurants and 2.0% at franchise restaurants;

·                  One company restaurant and one franchise restaurant opened while one company restaurant closed;

·                  Restaurant margins increased 45 basis points to 18.8%;

·                  Diluted earnings per share increased 7% to $0.21 from $0.19 in the prior year period.

 

Results year-to-date included:

 

·                  Comparable restaurant sales increased 0.9% at company restaurants and 1.4% at franchise restaurants;

·                  Four company restaurants and one franchise restaurant opened while one company restaurant closed;

·                  Restaurant margins increased 132 basis points to 19.5%;

·                  Diluted earnings per share increased 19% to $0.47 from $0.40 in the prior period.

 

G.J. Hart, President and Chief Executive Officer of Texas Roadhouse, commented, “We are pleased to report another quarter of diluted earnings per share growth led by both positive comparable restaurant sales and continued restaurant-level margin expansion.  Positive guest counts drove the increase in comparable restaurant sales, while lower commodity costs continued to pave the way for margin expansion.  In addition, sales at our newer restaurants continue to perform at or above our expectations and we are experiencing lower new unit investment costs.  Our goal is to continue driving positive traffic growth through our continued commitment to legendary food and service.”

 

Outlook for 2010

 

The Company reported that comparable restaurant sales for the first four weeks of the third quarter of fiscal 2010 increased 3.0% compared to the same period a year ago.

 

The Company estimates 2010 diluted earnings per share growth will be approximately 16% to 20% compared to 2009.  This estimate is based, in part, on the following assumptions:

 

·                  Comparable restaurant sales growth of approximately 1.0%;

·                  14 to 15 company restaurant openings;

·                  Food cost deflation of approximately 2.5% to 3.0%; and

·                  Total capital expenditures of approximately $50 million.

 



 

Conference Call

 

The Company is hosting a conference call today, August 2, 2010, at 5:00 p.m. Eastern Time to discuss these results.  The dial-in number is (877) 723-9517 or (719) 325-4819 for international calls. A replay of the call will be available for one week following the conference call.  To access the replay, please dial (888) 203-1112 or (719) 457-0820 for international calls, and use 8534928 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 330 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.

 

# # #

 

Contacts:

 

Investor Relations

Price Cooper

502-515-7300

 

Media

Travis Doster

502-638-5457

 



 

Texas Roadhouse, Inc. and Subsidiaries

Condensed Consolidated Statements of Income

(in thousands, except per share data)

(unaudited)

 

 

 

13 Weeks Ended

 

26 Weeks Ended

 

 

 

June 29, 2010

 

June 30, 2009

 

June 29, 2010

 

June 30, 2009

 

 

 

 

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

 

 

 

Restaurant sales

 

$

252,835

 

$

240,301

 

$

510,177

 

$

484,391

 

Franchise royalties and fees

 

2,327

 

2,122

 

4,609

 

4,105

 

 

 

 

 

 

 

 

 

 

 

Total revenue

 

255,162

 

242,423

 

514,786

 

488,496

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

Restaurant operating costs:

 

 

 

 

 

 

 

 

 

Cost of sales

 

82,660

 

80,314

 

165,459

 

163,355

 

Labor

 

74,497

 

71,074

 

149,406

 

142,573

 

Rent

 

5,287

 

4,929

 

10,557

 

9,841

 

Other operating

 

42,767

 

39,812

 

85,365

 

80,672

 

Pre-opening

 

1,307

 

933

 

2,412

 

3,217

 

Depreciation and amortization

 

10,262

 

10,616

 

20,599

 

21,087

 

Impairment and closure

 

100

 

14

 

258

 

(72

)

General and administrative

 

14,953

 

13,237

 

27,295

 

24,046

 

 

 

 

 

 

 

 

 

 

 

Total costs and expenses

 

231,833

 

220,929

 

461,351

 

444,719

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

23,329

 

21,494

 

53,435

 

43,777

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

704

 

876

 

1,434

 

1,733

 

Equity income from investments in unconsolidated affiliates

 

92

 

64

 

200

 

149

 

 

 

 

 

 

 

 

 

 

 

Income before taxes

 

22,717

 

20,682

 

52,201

 

42,193

 

Provision for income taxes

 

7,049

 

6,436

 

16,655

 

13,151

 

 

 

 

 

 

 

 

 

 

 

Net income including noncontrolling interests

 

$

15,668

 

$

14,246

 

$

35,546

 

$

29,042

 

Less: Net income attributable to noncontrolling interests

 

632

 

505

 

1,269

 

967

 

Net income attributable to Texas Roadhouse, Inc. and subsidiaries

 

$

15,036

 

$

13,741

 

$

34,277

 

$

28,075

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

Basic

 

$

0.21

 

$

0.20

 

$

0.48

 

$

0.40

 

Diluted

 

$

0.21

 

$

0.19

 

$

0.47

 

$

0.40

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

71,471

 

69,909

 

71,076

 

69,666

 

Diluted

 

72,961

 

71,361

 

72,587

 

70,948

 

 



 

Texas Roadhouse, Inc. and Subsidiaries

Condensed Consolidated Balance Sheet

(in thousands)

 

 

 

June 29, 2010

 

December 29, 2009

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

60,235

 

$

46,858

 

Other current assets

 

27,763

 

27,458

 

Property and equipment, net

 

453,365

 

456,281

 

Goodwill

 

113,465

 

113,465

 

Intangible asset, net

 

10,656

 

11,194

 

Other assets

 

7,103

 

6,817

 

 

 

 

 

 

 

Total assets

 

$

672,587

 

$

662,073

 

 

 

 

 

 

 

Current maturities of long-term debt and obligations under capital leases

 

260

 

247

 

Other current liabilities

 

91,416

 

107,956

 

Long-term debt and obligations under capital leases, excluding current maturities

 

79,046

 

101,179

 

Other liabilities

 

36,342

 

29,741

 

Texas Roadhouse, Inc. and subsidiaries stockholders’ equity

 

462,835

 

420,372

 

Noncontrolling interests

 

2,688

 

2,578

 

 

 

 

 

 

 

Total liabilities and equity

 

$

672,587

 

$

662,073

 

 



 

Texas Roadhouse, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(in thousands, except per share data)

(unaudited)

 

 

 

26 Weeks Ended

 

 

 

June 29, 2010

 

June 30, 2009

 

 

 

 

 

 

 

Cash flows from operating activities:

 

 

 

 

 

Net income including noncontrolling interests

 

$

35,546

 

$

29,042

 

Adjustments to reconcile net income to net cash provided by operating activities

 

 

 

 

 

Depreciation and amortization

 

20,599

 

21,087

 

Share-based compensation expense

 

3,736

 

3,814

 

Other noncash adjustments

 

300

 

1,497

 

Change in working capital

 

(11,853

)

(8,914

)

Net cash provided by operating activities

 

48,328

 

46,526

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

Capital expenditures - property and equipment

 

(17,967

)

(22,526

)

Acquisition of franchise restaurants, net of cash acquired

 

 

50

 

Proceeds from sale of property and equipment, including insurance proceeds

 

51

 

120

 

Net cash used in investing activities

 

(17,916

)

(22,356

)

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

Repayments of revolving credit facility, net

 

(22,000

)

(6,000

)

Other financing activities

 

4,965

 

1,551

 

Net cash used in financing activities

 

(17,035

)

(4,449

)

 

 

 

 

 

 

Net increase in cash and cash equivalents

 

13,377

 

19,721

 

Cash and cash equivalents - beginning of year

 

46,858

 

5,258

 

Cash and cash equivalents - end of year

 

$

60,235

 

$

24,979

 

 



 

Supplemental Financial and Operating Information

($ amounts in thousands)

(unaudited)

 

 

 

Second Quarter

 

Change

 

Year to Date

 

Change

 

 

 

2010

 

2009

 

vs LY

 

2010

 

2009

 

vs LY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restaurant openings

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

1

 

2

 

(1

)

4

 

11

 

(7

)

Franchise

 

1

 

1

 

0

 

1

 

1

 

0

 

Total

 

2

 

3

 

(1

)

5

 

12

 

(7

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restaurant closures

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

(1

)

0

 

(1

)

(1

)

0

 

(1

)

Franchise

 

0

 

(1

)

1

 

0

 

(1

)

1

 

Total

 

(1

)

(1

)

0

 

(1

)

(1

)

0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restaurants open at the end of the quarter

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

264

 

256

 

8

 

 

 

 

 

 

 

Franchise

 

71

 

69

 

2

 

 

 

 

 

 

 

Total

 

335

 

325

 

10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company-owned restaurants

 

 

 

 

 

 

 

 

 

 

 

 

 

Restaurant sales

 

$

252,835

 

$

240,301

 

5.2

%

$

510,177

 

$

484,391

 

5.3

%

Store weeks

 

3,432

 

3,313

 

3.6

%

6,844

 

6,562

 

4.3

%

Comparable restaurant sales growth (1)

 

1.4

%

(3.7

)%

 

 

0.9

%

(2.4

)%

 

 

Average unit volume (2)

 

$

952

 

$

939

 

1.4

%

$

1,925

 

$

1,914

 

0.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restaurant operating costs (as a % of restaurant sales)

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

32.7

%

33.4

%

(73

)bps

32.4

%

33.7

%

(129

)bps

Labor

 

29.5

%

29.6

%

(11

)bps

29.3

%

29.4

%

(15

)bps

Rent

 

2.1

%

2.1

%

4

bps

2.1

%

2.0

%

4

bps

Other operating

 

16.9

%

16.6

%

35

bps

16.7

%

16.7

%

8

bps

Total

 

81.2

%

81.6

%

(45

)bps

80.5

%

81.8

%

(132

)bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restaurant margins (3)

 

18.8

%

18.4

%

45

bps

19.5

%

18.2

%

132

bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Franchise-owned restaurants

 

 

 

 

 

 

 

 

 

 

 

 

 

Franchise royalties and fees

 

$

2,327

 

$

2,122

 

9.7

%

$

4,609

 

$

4,105

 

12.3

%

Store weeks

 

911

 

897

 

1.6

%

1,821

 

1,794

 

1.5

%

Comparable restaurant sales growth (1)

 

2.0

%

(3.5

)%

 

 

1.4

%

(2.7

)%

 

 

Average unit volume (2)

 

$

951

 

$

927

 

2.6

%

$

1,900

 

$

1,873

 

1.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-opening expense

 

$

1,307

 

$

933

 

40.1

%

$

2,412

 

$

3,217

 

(25.0

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

$

10,262

 

$

10,616

 

(3.3

)%

$

20,599

 

$

21,087

 

(2.3

)%

As a % of revenue

 

4.0

%

4.4

%

(36

)bps

4.0

%

4.3

%

(32

)bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impairment and closure

 

$

100

 

$

14

 

NM

 

$

258

 

$

(72

)

NM

 

As a % of revenue

 

0.0

%

0.0

%

3

bps

0.1

%

(0.0

)%

6

bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expenses

 

$

14,953

 

$

13,237

 

13.0

%

$

27,295

 

$

24,046

 

13.5

%

As a % of revenue

 

5.9

%

5.5

%

40

bps

5.3

%

4.9

%

38

bps

 


(1)  Comparable restaurant sales growth includes sales from restaurants open 18 months as of the beginning of the measurement period.

 

(2)  Average unit volume includes sales from restaurants open six months as of the beginning of the measurement period.  For comparative purposes, average unit volumes for Q2 2009 and 2009 YTD were adjusted to reflect restaurant sales of any acquired franchise restaurants as part of Company-owned restaurants average unit volume and were excluded from franchise-owned restaurants average unit volume.

 

(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.