|BJ's Restaurants, Inc. Reports First Quarter Diluted Net Income Per Share of $0.16 and Adjusted Diluted Net Income Per Share of $0.20|
First Quarter 2014 Highlights:
"Our sales and operating trends improved during the second half of the quarter after several weeks of severe weather and industry-wide traffic headwinds at the beginning of 2014," commented
"Our first quarter results also reflect a more balanced promotional spend compared to the fourth quarter of 2013 and benefited from our ongoing cost optimization initiatives to eliminate certain non-strategic expenses, while preserving the unique dining experience we deliver to our guests. While first quarter restaurant level margins improved on a quarterly sequential basis to 17.1% from 15.1%, we remain focused on returning to our historical restaurant level margins of at least 19% by leveraging our industry-leading guest traffic levels, improving our kitchen efficiencies through Project Q, implementing our new sales driving initiatives and maintaining a strong focus on managing restaurant operating costs. At the same time, we are focused on growing returns on invested capital as we've lowered our initial capital cost to build new restaurants with our 7,400 square foot prototype, which is expected to cost approximately
In the first quarter of 2014, BJ's opened two new restaurants in
Based on the timing of the 11 new restaurant openings this year, BJ's expects total restaurant operating weeks will grow approximately 11% in 2014. The Company currently anticipates opening at least 15 new restaurants in fiscal 2015, all of which will feature the new prototype design.
Trojan concluded, "With significant cash flow from operations and a strong balance sheet, we are positioned with the financial capacity and flexibility to continue our long-term growth strategy of increasing restaurant operating weeks by at least 10% annually, while continuing to execute the recently announced sales building and brand initiatives and returning capital to shareholders through the
Investor Conference Call and Webcast
Certain statements in the preceding paragraphs and all other statements that are not purely historical constitute "forward-looking" statements for purposes of the Securities Act of 1933 and the Securities and Exchange Act of 1934, as amended, and are intended to be covered by the safe harbors created thereby. Such statements include, but are not limited to, those regarding expected comparable restaurant sales and margin growth in future periods, total potential domestic capacity, the success of various sales-building and productivity initiatives, future guest traffic trends, construction cost savings initiatives and the number and timing of new restaurants expected to be opened in future periods. These "forward-looking" statements involve known and unknown risks, uncertainties and other factors which may cause actual results to be materially different from those projected or anticipated. Factors that might cause such differences include, but are not limited to: (i) our ability to manage an increasing number of new restaurant openings, (ii) construction delays, (iii) labor shortages, (iv) increase in minimum wage and other employment related costs, including the potential impact of the Patient Protection and Affordable Care Act on our operations, (v) the effect of credit and equity market disruptions on our ability to finance our continued expansion on acceptable terms, (vi) food quality and health concerns, (vii) factors that impact
Reconciliation of Selected GAAP Financial Measures to Non-GAAP Adjusted Financial Measures
To supplement the consolidated financial statements presented in accordance with U.S. generally accepted accounting principles ("GAAP"), the Company has included the following non-GAAP adjusted financial measures in this press release or in the webcast to discuss the Company's financial results for first quarter 2014 which may be accessed via the Company's website at http://www.bjsrestaurants.com: (i) non-GAAP adjusted net income and (ii) non-GAAP adjusted diluted net income per share. Each of these non-GAAP adjusted financial measures is adjusted from results based on GAAP to exclude certain expenses. As a general matter, the Company uses these non-GAAP adjusted financial measures in addition to and in conjunction with results presented in accordance with GAAP to help analyze the performance of its core business. The Company believes that such non-GAAP adjusted financial information is provided by its competitors and such information is used by analysts and others in the investment community to analyze the Company's results and in formulating estimates of future performance and that failure to report these non-GAAP adjusted measures could result in confusion among analysts and others and a misplaced perception that the Company's results have underperformed or exceeded expectations.
These non-GAAP adjusted financial measures reflect an additional way of viewing aspects of the Company's operations that, when viewed with the GAAP results and the reconciliations to corresponding GAAP financial measures, provide a more complete understanding of the Company's results of operations and the factors and trends affecting the Company's business. However, these non-GAAP adjusted financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP.
For the first quarter 2014, non-GAAP adjusted net income and non-GAAP adjusted diluted net income per share exclude professional fees incurred in connection with the shareholder settlement agreement announced on
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