SCOTTSDALE, Ariz.--(BUSINESS WIRE)--P.F. Chang's China Bistro, Inc. (NASDAQ:PFCB) today reported financial results for the fourth quarter and fiscal year ended January 1, 2012.
Chairman and CEO Rick Federico commented, “While we were not satisfied with our earnings in the fourth quarter, we were pleased with our progress on the top line. We remain confident in the direction of recent initiatives to restore positive sales momentum, which have shown encouraging early signs in the first half of our first fiscal quarter. We believe 2012 will be an inflection point for our business and look forward to delivering on the goals we have articulated to our shareholders over the past several months.”
Fourth Quarter 2011
Total revenues were $309.8 million in the fourth quarter of fiscal 2011 as compared to $311.2 million in the prior year. Net income for the fourth quarter of fiscal 2011 was $4.1 million, as compared to $14.7 million in 2010, and diluted net income per share was $0.19 and $0.64, respectively. Net income per share for the fourth quarter would have been $0.11 higher (or $0.30 per share) when adjusting for:
- The unfavorable impact of non-cash asset impairment charges related to two Bistro restaurants ($0.17 per share).
- The unfavorable impact of charges related to the closure of three underperforming Pei Wei locations ($0.04 per share). The Company closed these locations at the end of the fourth quarter of fiscal 2011 after recognizing full asset impairment charges during the second and third quarters of fiscal 2011.
- The favorable impact of non-cash share-based compensation expense adjustments ($0.05 per share) primarily related to the final value adjustment of Co-CEO performance unit awards.
- The favorable impact of lowering the full fiscal year effective tax rate ($0.05 per share).
Comparable store sales decreased 2.4% at the Bistro and 1.9% at Pei Wei in the fourth quarter of 2011 due, in both cases, to declines in guest traffic. Monthly comparable store sales trends improved during the course of the fourth quarter. Specifically, on a monthly basis, comparable store sales for October, November and December decreased 3.2%, 3.1%, and 1.1%, respectively, at the Bistro and decreased 3.2%, 0.9%, and 1.4%, respectively, at Pei Wei.
Fiscal Year 2011
Total revenues were $1,238.8 million in fiscal 2011 as compared to $1,242.8 million in the prior year. Net income was $30.1 million in 2011, as compared to $46.6 million in 2010, and diluted net income per share was $1.36 and $2.02, respectively. Net income per share for fiscal 2011 would have been $0.17 higher (or $1.53 per share) when adjusting for:
- The unfavorable impact of non-cash asset impairment and store closure charges related to three Pei Wei restaurants which closed in the fourth quarter and non-cash asset impairment charges related to three Bistro restaurants ($0.39 per share).
- The favorable impact non-cash of share-based compensation expense adjustments ($0.25 per share).
- The unfavorable impact of charges related to the departure of the Bistro's Chief Operating Officer and one-time costs associated with streamlining of certain organizational support functions ($0.03 per share).
2012 Expectations
The Company anticipates that full year fiscal 2012 consolidated revenues will increase 1% to 2% compared to fiscal 2011. Revenue expectations for 2012 assume flat comparable store sales at both concepts, combined with incremental revenues contributed from 14 to 19 anticipated new domestic restaurant openings and restaurant and retail licensing growth in excess of 60%.
The Company expects fiscal 2012 restaurant operating income to increase by approximately 8% to 9% compared to fiscal 2011 levels. Excluding the impact of $11.8 million in asset impairment and store closure charges recognized during fiscal 2011, the Company expects restaurant operating income to decline 1% to 2% in 2012. The Company anticipates commodities inflation of 4% to 5% during fiscal 2012, a portion of which may be offset with slight menu price increases and menu mix shifts. The Company expects incremental revenues from its licensing businesses to provide greater contribution to restaurant operating income and partially offset these cost pressures.
The Company anticipates consolidated general and administrative expenses to range from $78 to $80 million during 2012, which is in line with consolidated general and administrative expenses for fiscal 2011, when adjusting for the benefit of approximately $7.5 million in share-based compensation expense credits recognized during fiscal 2011.
The Company currently expects to open 2 to 3 new Bistro restaurants and 12 to 16 new Pei Wei restaurants during fiscal 2012. As a result, the Company anticipates higher preopening expenses in fiscal 2012 from the increase in Pei Wei new store development compared to fiscal 2011.
In addition, the Company expects its international partners to open 10 to 14 new Bistro restaurants during 2012, an increase of 60% to 80% relative to international Bistros in operation at the end of 2011. The Company also anticipates the opening of 2 to 4 new Pei Wei international restaurants through licensing agreements during fiscal 2012, compared to one international Pei Wei unit in operation at the end of fiscal 2011. Also, through licensing agreements, the Company expects 3 to 5 Pei Wei domestic airport locations to open during fiscal 2012.
During 2012, the Company expects cash flows from operations to approximate $105 million to $115 million, an increase compared to cash flows from operations of $103 million in 2011. Capital expenditures are expected to approximate $55 million to $60 million.
Overall, the Company expects consolidated diluted earnings per share to range from $1.50 to $1.60 for fiscal 2012. Earnings per share for the first quarter of 2012 is expected to range from $0.34 to $0.36.
Commenting on the 2012 outlook, Federico said, “While we remain cautious about the outlook for consumer spending generally, we are beginning to see early signs of progress. We believe our initiatives, aimed at driving restaurant traffic by enhancing our price/value proposition and elevating the guest experience, are gaining traction at both concepts. As a result, we anticipate that our quarterly earnings per share will be higher in the back half of 2012 than the first half of the year. Additionally, we foresee increased contribution from restaurant and retail licensing opportunities in 2012. We will continue to execute on our strategic plan and expect to build on our successes throughout 2012.”
Share Repurchase Program
On February 8, 2012, the Company's Board of Directors increased the authorized amount of the Company's share repurchase program from $100 million to $150 million. The Company plans to fully utilize the $150.0 million share repurchase authorization during fiscal 2012.
Quarterly Dividend
The Board of Directors authorized an increase to the Company's quarterly cash dividend payment from $0.25 to $0.275 per share on the Company's outstanding common stock, an increase of 10%. The next quarterly dividend is payable on March 12, 2012 to shareholders of record at the close of business on February 27, 2012.
True Food Kitchen
During 2009, the Company extended a loan facility to fund early stage development of the True Food Kitchen restaurant concept with a right to convert its loan into a majority equity ownership position. In February 2012, after receiving authorization from its Board of Directors, the Company and True Food Kitchen's partners mutually agreed to exercise the Company's conversion option, which is expected to be completed during the second quarter of fiscal 2012. Upon completion, P.F. Chang's will own 51% of True Food Kitchen, with potential rights and obligations that would enable the Company to increase its ownership to 90% or more in the future.
Conference Call Information
The Company is hosting a conference call today at 8:30 am Eastern Time during which management will provide further details on the fourth quarter results. A webcast of the call can be accessed through the company's website at www.pfcb.com.
Definitions
The following definitions apply to these terms as used throughout this release:
- Net income refers to net income attributable to PFCB common stockholders.
- Comparable store sales changes include company-operated restaurants and represent the change in period-over-period sales for the comparable restaurant base. A restaurant becomes comparable in its eighteenth month of operation.
About the Company
P.F. Chang's China Bistro, Inc. owns and operates two restaurant concepts in the Asian niche. P.F. Chang's China Bistro features a blend of high-quality, Chinese-inspired cuisine and attentive service in a high energy contemporary bistro setting. Pei Wei Asian Diner offers a menu of freshly prepared, wok-seared, contemporary pan-Asian cuisine in a relaxed, warm environment with friendly attentive counter service and take-out flexibility. In addition, the Company has extended its brands to international markets, domestic airport locations and retail products, all of which are operated under licensing agreements.
Note with respect to non-GAAP financial measures contained within Supplemental Financial Information
In addition to using GAAP results in evaluating the Company's business, management measures restaurant operating income to assess the performance of its existing restaurant concepts. Restaurant operating income includes all ongoing costs related to operating the Company's restaurants but excludes preopening expenses and partner investment expense. Preopening and partner investment expenses are excluded because they vary in timing and magnitude and are not related to the health of ongoing operations. Additionally, general and administrative expenses are generally not specifically identifiable to individual business units and are only included in the Company's consolidated financial presentation as these costs relate to support of both restaurant concepts and the extension of the Company's brands into international markets, domestic airports and retail products. As the Company's expansion is funded entirely from its ongoing restaurant operations, restaurant operating income is a consideration of management when determining whether and when to open additional restaurants. The non-GAAP financial information presented herein should be considered in addition to, not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. Please see the non-GAAP to GAAP reconciliation at the bottom of pages 5 through 7 of this press release for a reconciliation of restaurant operating income to the most directly comparable GAAP measure, income from operations.
Note with respect to forward-looking statements
The statements contained in this press release that are not purely historical, including the Company's 2012 expectations, are forward-looking statements. The accuracy of these forward-looking statements may be affected by certain risks and uncertainties, including, but not limited to, failure of our existing or new restaurants to achieve expected results, intense competition in the restaurant industry, damage to our brands or reputation, our ability to successfully expand our operations and changes in general economic and political conditions that affect consumer spending. More detailed information about the Company and the risk factors that may affect the realization of any forward-looking statements is set forth in the Company's filings with the SEC, including its Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement and the Company undertakes no obligation to revise or update this press release to reflect events or circumstances after the date hereof. This caution is made under the safe harbor provisions of Section 21E of the Private Securities Litigation Reform Act of 1995.
| P.F. Chang's China Bistro, Inc. | ||||||||||||||||||||||||
| Consolidated Statements of Operations | ||||||||||||||||||||||||
| (In thousands, except per share amounts) | ||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||
| 13 Weeks Ended | 52 Weeks Ended | |||||||||||||||||||||||
| January 1, | January 2, | January 1, | January 2, | |||||||||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||
| Restaurant sales | $ | 308,155 | $ | 310,260 | $ | 1,233,076 | $ | 1,239,503 | ||||||||||||||||
| Restaurant licensing | 968 | 474 | 3,065 | 2,105 | ||||||||||||||||||||
| Retail licensing | 632 | 446 | 2,614 | 1,191 | ||||||||||||||||||||
| Total revenues | 309,755 | 311,180 | 1,238,755 | 1,242,799 | ||||||||||||||||||||
| Costs and expenses: | ||||||||||||||||||||||||
| Cost of sales | 82,453 | 80,621 | 325,771 | 324,731 | ||||||||||||||||||||
| Labor | 105,371 | 101,610 | 419,302 | 410,000 | ||||||||||||||||||||
| Operating | 53,316 | 51,886 | 214,050 | 208,294 | ||||||||||||||||||||
| Occupancy | 20,368 | 18,756 | 75,864 | 73,707 | ||||||||||||||||||||
| General and administrative (1) | 17,980 | 19,839 | 70,088 | 81,883 | ||||||||||||||||||||
| Depreciation and amortization | 20,462 | 19,832 | 80,355 | 77,486 | ||||||||||||||||||||
| Asset impairment charges | 5,056 | — | 10,486 | — | ||||||||||||||||||||
| Preopening expense | 808 | 439 | 2,048 | 1,976 | ||||||||||||||||||||
| Partner investment expense | — | (47 | ) | (236 | ) | (318 | ) | |||||||||||||||||
| Total costs and expenses | 305,814 | 292,936 | 1,197,728 | 1,177,759 | ||||||||||||||||||||
| Income from operations | 3,941 | 18,244 | 41,027 | 65,040 | ||||||||||||||||||||
| Interest and other income (expense), net | 327 | 333 | (288 | ) | (572 | ) | ||||||||||||||||||
| Income from continuing operations before taxes | 4,268 | 18,577 | 40,739 | 64,468 | ||||||||||||||||||||
| Provision for income taxes | (116 | ) | (3,773 | ) | (10,253 | ) | (17,122 | ) | ||||||||||||||||
| Income from continuing operations, net of tax | 4,152 | 14,804 | 30,486 | 47,346 | ||||||||||||||||||||
| Income (loss) from discontinued operations, net of tax | (44 | ) | 40 | (63 | ) | 46 | ||||||||||||||||||
| Net income | 4,108 | 14,844 | 30,423 | 47,392 | ||||||||||||||||||||
| Less net income attributable to noncontrolling interests | 30 | 165 | 346 | 784 | ||||||||||||||||||||
| Net income attributable to PFCB | $ | 4,078 | $ | 14,679 | $ | 30,077 | $ | 46,608 | ||||||||||||||||
| Basic income per share: | ||||||||||||||||||||||||
| Income from continuing operations attributable to PFCB common stockholders | $ | 0.20 | $ | 0.65 | $ | 1.38 | $ | 2.05 | ||||||||||||||||
| Income (loss) from discontinued operations, net of tax, attributable to PFCB common stockholders | (0.01 | ) | 0.00 | 0.00 | 0.00 | |||||||||||||||||||
| Net income attributable to PFCB common stockholders | $ | 0.19 | $ | 0.65 | $ | 1.38 | $ | 2.05 | ||||||||||||||||
| Diluted income per share: | ||||||||||||||||||||||||
| Income from continuing operations attributable to PFCB common stockholders | $ | 0.19 | $ | 0.64 | $ | 1.36 | $ | 2.01 | ||||||||||||||||
| Income (loss) from discontinued operations, net of tax, attributable to PFCB common stockholders | 0.00 | 0.00 | 0.00 | 0.01 | ||||||||||||||||||||
| Net income attributable to PFCB common stockholders | $ | 0.19 | $ | 0.64 | $ | 1.36 | $ | 2.02 | ||||||||||||||||
| Weighted average shares used in computation: | ||||||||||||||||||||||||
| Basic | 21,071 | 22,599 | 21,831 | 22,689 | ||||||||||||||||||||
| Diluted | 21,175 | 23,011 | 22,104 | 23,115 | ||||||||||||||||||||
| Cash dividends declared per share | $ | 0.28 | $ | 0.29 | $ | 0.99 | $ | 0.92 | ||||||||||||||||
| Amounts attributable to PFCB: | ||||||||||||||||||||||||
| Income from continuing operations, net of tax | $ | 4,122 | $ | 14,639 | $ | 30,140 | $ | 46,562 | ||||||||||||||||
| Income (loss) from discontinued operations, net of tax | (44 | ) | 40 | (63 | ) | 46 | ||||||||||||||||||
| Net income attributable to PFCB | $ | 4,078 | $ | 14,679 | $ | 30,077 | $ | 46,608 | ||||||||||||||||
(1) General and administrative includes the benefit of lower incentive accruals of $4.9 million and lower share-based compensation expense of $7.5 million during the year ended January 1, 2012.
| P.F. Chang's China Bistro, Inc. | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Supplemental Financial Information | |||||||||||||||||||||||||||||||||||||||||||||||||||
| 1Q10 | 2Q10 | 3Q10 | 4Q10 | 2010 | 1Q11 | 2Q11 | 3Q11 | 4Q11 | YTD 2011 | ||||||||||||||||||||||||||||||||||||||||||
| Units | 364 | 366 | 368 | 369 | 369 | 372 | 374 | 375 | 377 | 377 | |||||||||||||||||||||||||||||||||||||||||
| Sales weeks | 4,731 | 4,736 | 4,770 | 4,791 | 19,028 | 4,819 | 4,852 | 4,859 | 4,885 | 19,415 | |||||||||||||||||||||||||||||||||||||||||
| AWS | 65,576 | 65,773 | 64,465 | 64,759 | 65,141 | 65,637 | 63,817 | 61,530 | 63,082 | 63,512 | |||||||||||||||||||||||||||||||||||||||||
| Revenues (1) | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Restaurant sales | 310,242 | 311,502 | 307,499 | 310,260 | 1,239,503 | 316,304 | 309,641 | 298,976 | 308,155 | 1,233,076 | |||||||||||||||||||||||||||||||||||||||||
| Restaurant licensing | 129 | 1,108 | 394 | 474 | 2,105 | 684 | 649 | 764 | 968 | 3,065 | |||||||||||||||||||||||||||||||||||||||||
| Retail licensing | — | 228 | 517 | 446 | 1,191 | 381 | 724 | 877 | 632 | 2,614 | |||||||||||||||||||||||||||||||||||||||||
| Total revenues | 310,371 | 312,838 | 308,410 | 311,180 | 1,242,799 | 317,369 | 311,014 | 300,617 | 309,755 | 1,238,755 | |||||||||||||||||||||||||||||||||||||||||
| Operating costs | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Cost of sales | 84,013 | 81,717 | 78,380 | 80,621 | 324,731 | 83,322 | 82,175 | 77,821 | 82,453 | 325,771 | |||||||||||||||||||||||||||||||||||||||||
| Labor | 104,475 | 102,295 | 101,620 | 101,610 | 410,000 | 106,464 | 105,321 | 102,146 | 105,371 | 419,302 | |||||||||||||||||||||||||||||||||||||||||
| Operating | 52,753 | 51,597 | 52,058 | 51,886 | 208,294 | 53,807 | 52,471 | 54,456 | 53,316 | 214,050 | |||||||||||||||||||||||||||||||||||||||||
| Occupancy | 17,838 | 18,609 | 18,504 | 18,756 | 73,707 | 18,425 | 18,681 | 18,390 | 20,368 | 75,864 | |||||||||||||||||||||||||||||||||||||||||
| Net income attributable to noncontrolling interests | 206 | 241 | 172 | 165 | 784 | 157 | 120 | 39 | 30 | 346 | |||||||||||||||||||||||||||||||||||||||||
| Depreciation & amortization | 19,001 | 19,335 | 19,318 | 19,832 | 77,486 | 19,698 | 20,149 | 20,046 | 20,462 | 80,355 | |||||||||||||||||||||||||||||||||||||||||
| Asset impairment charges | — | — | — | — | — | — | 631 | 4,799 | 5,056 | 10,486 | |||||||||||||||||||||||||||||||||||||||||
| Restaurant operating income | 32,085 | 39,044 | 38,358 | 38,310 | 147,797 | 35,496 | 31,466 | 22,920 | 22,699 | 112,581 | |||||||||||||||||||||||||||||||||||||||||
| Development costs | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Preopening expense | 133 | 832 | 572 | 439 | 1,976 | 398 | 213 | 629 | 808 | 2,048 | |||||||||||||||||||||||||||||||||||||||||
| Partner investment expense | 11 | (135 | ) | (147 | ) | (47 | ) | (318 | ) | (126 | ) | (50 | ) | (60 | ) | — | (236 | ) | |||||||||||||||||||||||||||||||||
| Other expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||
| General and administrative (2) | 19,053 | 19,765 | 23,226 | 19,839 | 81,883 | 20,280 | 19,164 | 12,664 | 17,980 | 70,088 | |||||||||||||||||||||||||||||||||||||||||
| Interest and other (income) expense, net | 415 | 665 | (175 | ) | (333 | ) | 572 | (204 | ) | (128 | ) | 947 | (327 | ) | 288 | ||||||||||||||||||||||||||||||||||||
| Provision for income taxes | 3,788 | 5,144 | 4,417 | 3,773 | 17,122 | 4,555 | 3,143 | 2,439 | 116 | 10,253 | |||||||||||||||||||||||||||||||||||||||||
| Income from continuing operations | 8,685 | 12,773 | 10,465 | 14,639 | 46,562 | 10,593 | 9,124 | 6,301 | 4,122 | 30,140 | |||||||||||||||||||||||||||||||||||||||||
| Income (loss) from discontinued operations, net of tax | 6 | — | — | 40 | 46 | 3 | (32 | ) | 10 | (44 | ) | (63 | ) | ||||||||||||||||||||||||||||||||||||||
| Net income attributable to PFCB | 8,691 | 12,773 | 10,465 | 14,679 | 46,608 | 10,596 | 9,092 | 6,311 | 4,078 | 30,077 | |||||||||||||||||||||||||||||||||||||||||
| Income from continuing operations per FDS | $ | 0.38 | $ | 0.55 | $ | 0.45 | $ | 0.64 | $ | 2.01 | $ | 0.46 | $ | 0.40 | $ | 0.29 | $ | 0.19 | $ | 1.36 | |||||||||||||||||||||||||||||||
| Fully diluted shares (FDS) | 23,104 | 23,277 | 23,070 | 23,011 | 23,115 | 22,901 | 22,581 | 21,758 | 21,175 | 22,104 | |||||||||||||||||||||||||||||||||||||||||
| Revenues | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||||||||||||||||||||||||
| Cost of sales | 27.1 | % | 26.1 | % | 25.4 | % | 25.9 | % | 26.1 | % | 26.3 | % | 26.4 | % | 25.9 | % | 26.6 | % | 26.3 | % | |||||||||||||||||||||||||||||||
| Labor | 33.7 | % | 32.7 | % | 32.9 | % | 32.7 | % | 33.0 | % | 33.5 | % | 33.9 | % | 34.0 | % | 34.0 | % | 33.8 | % | |||||||||||||||||||||||||||||||
| Operating | 17.0 | % | 16.5 | % | 16.9 | % | 16.7 | % | 16.8 | % | 17.0 | % | 16.9 | % | 18.1 | % | 17.2 | % | 17.3 | % | |||||||||||||||||||||||||||||||
| Occupancy | 5.7 | % | 5.9 | % | 6.0 | % | 6.0 | % | 5.9 | % | 5.8 | % | 6.0 | % | 6.1 | % | 6.6 | % | 6.1 | % | |||||||||||||||||||||||||||||||
| Net income attributable to noncontrolling interests | 0.1 | % | 0.1 | % | 0.1 | % | 0.1 | % | 0.1 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | |||||||||||||||||||||||||||||||
| Depreciation & amortization | 6.1 | % | 6.2 | % | 6.3 | % | 6.4 | % | 6.2 | % | 6.2 | % | 6.5 | % | 6.7 | % | 6.6 | % | 6.5 | % | |||||||||||||||||||||||||||||||
| Asset impairment charges | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.2 | % | 1.6 | % | 1.6 | % | 0.8 | % | |||||||||||||||||||||||||||||||
| Restaurant operating income | 10.3 | % | 12.5 | % | 12.4 | % | 12.3 | % | 11.9 | % | 11.2 | % | 10.1 | % | 7.6 | % | 7.3 | % | 9.1 | % | |||||||||||||||||||||||||||||||
| Preopening expenses | 0.0 | % | 0.3 | % | 0.2 | % | 0.1 | % | 0.2 | % | 0.1 | % | 0.1 | % | 0.2 | % | 0.3 | % | 0.2 | % | |||||||||||||||||||||||||||||||
| Partner investment expense | 0.0 | % | (0.0%) | (0.0%) | (0.0%) | (0.0%) | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | |||||||||||||||||||||||||||||||||||
| General and administrative (2) | 6.1 | % | 6.3 | % | 7.5 | % | 6.4 | % | 6.6 | % | 6.4 | % | 6.2 | % | 4.2 | % | 5.8 | % | 5.7 | % | |||||||||||||||||||||||||||||||
| Interest and other (income) expense, net | 0.1 | % | 0.2 | % | (0.1%) | (0.1%) | 0.0 | % | (0.1%) | 0.0 | % | 0.3 | % | (0.1 | )% | 0.0 | % | ||||||||||||||||||||||||||||||||||
| Provision for income taxes | 1.2 | % | 1.6 | % | 1.4 | % | 1.2 | % | 1.4 | % | 1.4 | % | 1.0 | % | 0.8 | % | 0.0 | % | 0.8 | % | |||||||||||||||||||||||||||||||
| Income from continuing operations | 2.8 | % | 4.1 | % | 3.4 | % | 4.7 | % | 3.7 | % | 3.3 | % | 2.9 | % | 2.1 | % | 1.3 | % | 2.4 | % | |||||||||||||||||||||||||||||||
| Income (loss) from discontinued operations, net of tax | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | |||||||||||||||||||||||||||||||
| Net income attributable to PFCB | 2.8 | % | 4.1 | % | 3.4 | % | 4.7 | % | 3.8 | % | 3.3 | % | 2.9 | % | 2.1 | % | 1.3 | % | 2.4 | % | |||||||||||||||||||||||||||||||
|
Reconciliation of Non-GAAP Financial Information to GAAP measures: |
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| Restaurant operating income | 32,085 | 39,044 | 38,358 | 38,310 | 147,797 | 35,496 | 31,466 | 22,920 | 22,699 | 112,581 | |||||||||||||||||||||||||||||||||||||||||
| Add: Net income attributable to noncontrolling interests | 206 | 241 | 172 | 165 | 784 | 157 | 120 | 39 | 30 | 346 | |||||||||||||||||||||||||||||||||||||||||
| Less: General and administrative (2) | (19,053 | ) | (19,765 | ) | (23,226 | ) | (19,839 | ) | (81,883 | ) | (20,280 | ) | (19,164 | ) | (12,664 | ) | (17,980 | ) | (70,088 | ) | |||||||||||||||||||||||||||||||
| Less: Preopening expense | (133 | ) | (832 | ) | (572 | ) | (439 | ) | (1,976 | ) | (398 | ) | (213 | ) | (629 | ) | (808 | ) | (2,048 | ) | |||||||||||||||||||||||||||||||
| Less: Partner investment expense | (11 | ) | 135 | 147 | 47 | 318 | 126 | 50 | 60 | — | 236 | ||||||||||||||||||||||||||||||||||||||||
| Income from operations | 13,094 | 18,823 | 14,879 | 18,244 | 65,040 | 15,101 | 12,259 | 9,726 | 3,941 | 41,027 | |||||||||||||||||||||||||||||||||||||||||
| Note: Consolidated results include the impact of Shared Services and Other as well as the Bistro and Pei Wei concepts. |
| (1) Consolidated revenues include revenues related to the Bistro and Pei Wei concepts as well as Global Brand Development initiatives. |
| (2) Consolidated general and administrative expenses includes the costs of supporting the Company, including all concepts as well as Global Brand Development initiatives. |
| Concept: P.F. Chang's China Bistro | |||||||||||||||||||||
| Supplemental Financial Information | |||||||||||||||||||||
| 1Q10 | 2Q10 | 3Q10 | 4Q10 | 2010 | 1Q11 | 2Q11 | 3Q11 | 4Q11 | YTD 2011 | ||||||||||||
| Units | 197 | 199 | 200 | 201 | 201 | 201 | 201 | 202 | 204 | 204 | |||||||||||
| Sales weeks | 2,561 | 2,565 | 2,593 | 2,607 | 10,326 | 2,613 | 2,613 | 2,610 | 2,636 | 10,472 | |||||||||||
| AWS | 90,077 | 90,964 | 89,202 | 89,726 | 89,989 | 90,181 | 88,487 | 85,494 | 87,725 | 87,972 | |||||||||||
| Total revenues | 230,767 | 233,365 | 231,309 | 233,931 | 929,372 | 235,782 | 231,226 | 223,118 | 231,253 | 921,379 | |||||||||||
| Operating costs | |||||||||||||||||||||
| Cost of sales | 62,711 | 60,914 | 58,135 | 60,008 | 241,768 | 61,333 | 60,759 | 57,677 | 61,660 | 241,429 | |||||||||||
| Labor | 78,192 | 76,769 | 76,533 | 76,667 | 308,161 | 79,792 | 78,442 | 76,273 | 79,120 | 313,627 | |||||||||||
| Operating | 38,546 | 38,183 | 38,554 | 37,804 | 153,087 | 38,783 | 38,442 | 40,602 | 38,367 | 156,194 | |||||||||||
| Occupancy | 12,640 | 13,254 | 13,242 | 13,368 | 52,504 | 13,074 | 13,125 | 12,955 | 13,602 | 52,756 | |||||||||||
| Net income attributable to noncontrolling interests | 71 | 93 | 62 | 70 | 296 | 79 | 69 | 20 | 18 | 186 | |||||||||||
| Depreciation & amortization | 13,854 | 14,043 | 14,018 | 14,519 | 56,434 | 14,384 | 14,550 | 14,455 | 14,989 | 58,378 | |||||||||||
| Asset impairment charges | — | — | — | — | — | — | — | 3,503 | 5,056 | 8,559 | |||||||||||
| Restaurant operating income | 24,753 | 30,109 | 30,765 | 31,495 | 117,122 | 28,337 | 25,839 | 17,633 | 18,441 | 90,250 | |||||||||||
| Total revenues | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |
| Cost of sales | 27.2 | % | 26.1 | % | 25.1 | % | 25.7 | % | 26.0 | % | 26.0 | % | 26.3 | % | 25.9 | % | 26.7 | % | 26.2 | % | |
| Labor | 33.9 | % | 32.9 | % | 33.1 | % | 32.8 | % | 33.2 | % | 33.8 | % | 33.9 | % | 34.2 | % | 34.2 | % | 34.0 | % | |
| Operating | 16.7 | % | 16.4 | % | 16.7 | % | 16.2 | % | 16.5 | % | 16.4 | % | 16.6 | % | 18.2 | % | 16.6 | % | 17.0 | % | |
| Occupancy | 5.5 | % | 5.7 | % | 5.7 | % | 5.7 | % | 5.6 | % | 5.5 | % | 5.7 | % | 5.8 | % | 5.9 | % | 5.7 | % | |
| Net income attributable to noncontrolling interests | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | |
| Depreciation & amortization | 6.0 | % | 6.0 | % | 6.1 | % | 6.2 | % | 6.1 | % | 6.1 | % | 6.3 | % | 6.5 | % | 6.5 | % | 6.3 | % | |
| Asset impairment charges | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 1.6 | % | 2.2 | % | 0.9 | % | |
| Restaurant operating income | 10.7 | % | 12.9 | % | 13.3 | % | 13.5 | % | 12.6 | % | 12.0 | % | 11.2 | % | 7.9 | % | 8.0 | % | 9.8 | % | |
| Reconciliation of Non-GAAP Financial Information to GAAP measures: | |||||||||||||||||||||
| Restaurant operating income | 24,753 | 30,109 | 30,765 | 31,495 | 117,122 | 28,337 | 25,839 | 17,633 | 18,441 | 90,250 | |||||||||||
| Add: Net income attributable to noncontrolling interests | 71 | 93 | 62 | 70 | 296 | 79 | 69 | 20 | 18 | 186 | |||||||||||
| Less: Preopening expense | (26 | ) | (765 | ) | (411 | ) | (265 | ) | (1,467 | ) | 2 | (28 | ) | (604 | ) | (721 | ) | (1,351 | ) | ||
| Less: Partner investment expense | — | — | — | — | — | — | — | — | — | — | |||||||||||
| Income from operations | 24,798 | 29,437 | 30,416 | 31,300 | 115,951 | 28,418 | 25,880 | 17,049 | 17,738 | 89,085 | |||||||||||
Note: General and administrative expenses are reflected in the Company’s consolidated results.
| Concept: Pei Wei Asian Diner (A) | |||||||||||||||||||||||||||||||||||||||||
| Supplemental Financial Information | |||||||||||||||||||||||||||||||||||||||||
| 1Q10 | 2Q10 | 3Q10 | 4Q10 | 2010 | 1Q11 | 2Q11 | 3Q11 | 4Q11 | YTD 2011 | ||||||||||||||||||||||||||||||||
| Units | 167 | 167 | 168 | 168 | 168 | 171 | 173 | 173 | 173 | 173 | |||||||||||||||||||||||||||||||
| Sales weeks | 2,170 | 2,171 | 2,177 | 2,184 | 8,702 | 2,206 | 2,239 | 2,249 | 2,249 | 8,943 | |||||||||||||||||||||||||||||||
| AWS | 36,597 | 35,991 | 34,998 | 34,950 | 35,632 | 36,501 | 35,022 | 33,730 | 34,194 | 34,854 | |||||||||||||||||||||||||||||||
| Total revenues | 79,475 | 78,137 | 76,190 | 76,329 | 310,131 | 80,522 | 78,415 | 75,858 | 76,902 | 311,697 | |||||||||||||||||||||||||||||||
| Operating costs | |||||||||||||||||||||||||||||||||||||||||
| Cost of sales | 21,302 | 20,803 | 20,245 | 20,613 | 82,963 | 21,989 | 21,416 | 20,144 | 20,793 | 84,342 | |||||||||||||||||||||||||||||||
| Labor | 26,283 | 25,526 | 25,087 | 24,943 | 101,839 | 26,672 | 26,879 | 25,873 | 26,251 | 105,675 | |||||||||||||||||||||||||||||||
| Operating | 14,207 | 13,414 | 13,504 | 14,082 | 55,207 | 15,024 | 14,029 | 13,854 | 14,949 | 57,856 | |||||||||||||||||||||||||||||||
| Occupancy | 5,198 | 5,355 | 5,262 | 5,388 | 21,203 | 5,351 | 5,556 | 5,435 | 6,766 | 23,108 | |||||||||||||||||||||||||||||||
| Net income attributable to noncontrolling interests | 135 | 148 | 110 | 95 | 488 | 78 | 51 | 19 | 12 | 160 | |||||||||||||||||||||||||||||||
| Depreciation & amortization | 4,647 | 4,762 | 4,772 | 4,761 | 18,942 | 4,767 | 4,929 | 4,910 | 4,772 | 19,378 | |||||||||||||||||||||||||||||||
| Asset impairment charges | — | — | — | — | — | — | 631 | 1,296 | — | 1,927 | |||||||||||||||||||||||||||||||
| Restaurant operating income | 7,703 | 8,129 | 7,210 | 6,447 | 29,489 | 6,641 | 4,924 | 4,327 | 3,359 | 19,251 | |||||||||||||||||||||||||||||||
| Total revenues | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||||||||||||||
| Cost of sales | 26.8 | % | 26.6 | % | 26.6 | % | 27.0 | % | 26.8 | % | 27.3 | % | 27.3 | % | 26.6 | % | 27.0 | % | 27.1 | % | |||||||||||||||||||||
| Labor | 33.1 | % | 32.7 | % | 32.9 | % | 32.7 | % | 32.8 | % | 33.1 | % | 34.3 | % | 34.1 | % | 34.1 | % | 33.9 | % | |||||||||||||||||||||
| Operating | 17.9 | % | 17.2 | % | 17.7 | % | 18.4 | % | 17.8 | % | 18.7 | % | 17.9 | % | 18.3 | % | 19.4 | % | 18.6 | % | |||||||||||||||||||||
| Occupancy | 6.5 | % | 6.9 | % | 6.9 | % | 7.1 | % | 6.8 | % | 6.6 | % | 7.1 | % | 7.2 | % | 8.8 | % | 7.4 | % | |||||||||||||||||||||
| Net income attributable to noncontrolling interests | 0.2 | % | 0.2 | % | 0.1 | % | 0.1 | % | 0.2 | % | 0.1 | % | 0.1 | % | 0.0 | % | 0.0 | % | 0.1 | % | |||||||||||||||||||||
| Depreciation & amortization | 5.8 | % | 6.1 | % | 6.3 | % | 6.2 | % | 6.1 | % | 5.9 | % | 6.3 | % | 6.5 | % | 6.2 | % | 6.2 | % | |||||||||||||||||||||
| Asset impairment charges | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.8 | % | 1.7 | % | 0.0 | % | 0.6 | % | |||||||||||||||||||||
| Restaurant operating income | 9.7 | % | 10.4 | % | 9.5 | % | 8.4 | % | 9.5 | % | 8.2 | % | 6.3 | % | 5.7 | % | 4.4 | % | 6.2 | % | |||||||||||||||||||||
|
Reconciliation of Non-GAAP Financial Information to GAAP measures: |
|||||||||||||||||||||||||||||||||||||||||
| Restaurant operating income | 7,703 | 8,129 | 7,210 | 6,447 | 29,489 | 6,641 | 4,924 | 4,327 | 3,359 | 19,251 | |||||||||||||||||||||||||||||||
| Add: Net income attributable to noncontrolling interests | 135 | 148 | 110 | 95 | 488 | 78 | 51 | 19 | 12 | 160 | |||||||||||||||||||||||||||||||
| Less: Preopening expense | (107 | ) | (67 | ) | (161 | ) | (174 | ) | (509 | ) | (400 | ) | (185 | ) | (25 | ) | (87 | ) | (697 | ) | |||||||||||||||||||||
| Less: Partner investment expense | (11 | ) | 135 | 147 | 47 | 318 | 126 | 50 | 60 | — | 236 | ||||||||||||||||||||||||||||||
| Income from operations | 7,720 | 8,345 | 7,306 | 6,415 | 29,786 | 6,445 | 4,840 | 4,381 | 3,284 | 18,950 | |||||||||||||||||||||||||||||||
Note: General and administrative expenses are reflected in the Company’s consolidated results.
(A) All results related to the ten Pei Wei restaurants that closed during 2008 are reflected within discontinued operations for all periods presented.
| P.F. Chang's China Bistro | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Supplemental Sales Information (Company Owned) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Year of Unit Opening (1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pre-2003 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | Total | |||||||||||||||||||||||||||||||||||||||||||||
| Units | 78 | 18 | 18 | 18 | 20 | 20 | 17 | 8 | 4 | 3 | 204 | ||||||||||||||||||||||||||||||||||||||||||||
| Sales (000) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 1Q11 | 101,661 | 22,626 | 18,627 | 18,865 | 21,852 | 22,395 | 17,146 | 8,169 | 4,302 | — | 235,643 | ||||||||||||||||||||||||||||||||||||||||||||
| 2Q11 | 99,024 | 22,227 | 18,929 | 18,425 | 21,522 | 22,117 | 16,720 | 7,955 | 4,297 | — | 231,216 | ||||||||||||||||||||||||||||||||||||||||||||
| 3Q11 | 94,837 | 21,456 | 18,708 | 17,793 | 20,618 | 21,425 | 16,052 | 7,847 | 4,047 | 355 | 223,138 | ||||||||||||||||||||||||||||||||||||||||||||
| 4Q11 | 97,922 | 21,562 | 18,437 | 18,345 | 21,225 | 21,426 | 16,601 | 7,876 | 4,070 | 3,779 | 231,243 | ||||||||||||||||||||||||||||||||||||||||||||
| 2011 | 393,444 | 87,871 | 74,701 | 73,428 | 85,217 | 87,363 | 66,519 | 31,847 | 16,716 | 4,134 | 921,240 | ||||||||||||||||||||||||||||||||||||||||||||
| Average Weekly Sales (AWS) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 1Q11 | 100,257 | 96,694 | 79,602 | 80,618 | 84,045 | 86,133 | 77,586 | 78,551 | 82,724 | — | 90,181 | ||||||||||||||||||||||||||||||||||||||||||||
| 2Q11 | 97,656 | 94,987 | 80,896 | 78,739 | 82,778 | 85,066 | 75,658 | 76,490 | 82,627 | — | 88,487 | ||||||||||||||||||||||||||||||||||||||||||||
| 3Q11 | 94,085 | 91,693 | 79,948 | 76,040 | 79,300 | 82,404 | 72,631 | 75,456 | 77,824 | 118,172 | 85,494 | ||||||||||||||||||||||||||||||||||||||||||||
| 4Q11 | 97,532 | 92,145 | 78,790 | 78,399 | 81,637 | 82,407 | 75,114 | 75,730 | 78,278 | 114,522 | 87,725 | ||||||||||||||||||||||||||||||||||||||||||||
|
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| 2011 | 97,387 | 93,880 | 79,809 | 78,449 | 81,940 | 84,003 | 75,247 | 76,557 | 80,363 | 114,826 | 87,972 | ||||||||||||||||||||||||||||||||||||||||||||
| Year-Over-Year Change Comparable Store Sales (2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Units | 78 | 18 | 18 | 18 | 20 | 20 | 17 | 8 | 2 | — | 199 | ||||||||||||||||||||||||||||||||||||||||||||
| 1Q11 | 0.8 | % | 0.4 | % | 2.5 | % | 0.1 | % | 0.6 | % | -0.7 | % | 1.1 | % | -7.3 | % | — | — | 0.5 | % | |||||||||||||||||||||||||||||||||||
| 2Q11 | -2.0 | % | -2.5 | % | -0.5 | % | -3.2 | % | -1.9 | % | -3.5 | % | -4.4 | % | -7.9 | % | — | — | -2.5 | % | |||||||||||||||||||||||||||||||||||
| 3Q11 | -3.5 | % | -4.3 | % | -1.6 | % | -3.5 | % | -2.9 | % | -4.4 | % | -5.7 | % | -6.9 | % | — | — | -3.7 | % | |||||||||||||||||||||||||||||||||||
| 4Q11 | -2.4 | % | -4.1 | % | -0.6 | % | -1.6 | % | -1.8 | % | -3.2 | % | -2.7 | % | -2.8 | % | -8.0 | % | — | -2.4 | % | ||||||||||||||||||||||||||||||||||
| 2011 | -1.8 | % | -2.6 | % | -0.1 | % | -2.1 | % | -1.5 | % | -2.9 | % | -2.9 | % | -6.1 | % | -8.0 | % | — | -2.1 | % | ||||||||||||||||||||||||||||||||||
| (1) Includes all restaurants opened in the period indicated. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (2) A unit becomes comparable in the eighteenth month of operation. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pei Wei Asian Diner | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Supplemental Sales Information (Company Owned) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Year of Unit Opening (1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pre-2003 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | Total | |||||||||||||||||||||||||||||||||||||||||||||
| Units | 16 | 17 | 19 | 23 | 27 | 32 | 25 | 7 | 2 | 5 | 173 | ||||||||||||||||||||||||||||||||||||||||||||
| Sales (000) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 1Q11 | 7,956 | 8,638 | 10,048 | 11,243 | 13,240 | 14,022 | 10,515 | 3,035 | 892 | 933 | 80,522 | ||||||||||||||||||||||||||||||||||||||||||||
| 2Q11 | 7,587 | 8,351 | 9,547 | 10,882 | 12,790 | 13,272 | 10,174 | 2,901 | 807 | 2,104 | 78,415 | ||||||||||||||||||||||||||||||||||||||||||||
| 3Q11 | 7,295 | 8,033 | 9,241 | 10,501 | 12,427 | 12,798 | 9,687 | 2,812 | 795 | 2,269 | 75,858 | ||||||||||||||||||||||||||||||||||||||||||||
| 4Q11 | 7,675 | 8,219 | 9,281 | 10,663 | 12,509 | 12,854 | 9,948 | 2,870 | 752 | 2,131 | 76,902 | ||||||||||||||||||||||||||||||||||||||||||||
| 2011 | 30,513 | 33,241 | 38,117 | 43,289 | 50,966 | 52,946 | 40,324 | 11,618 | 3,246 | 7,437 | 311,697 | ||||||||||||||||||||||||||||||||||||||||||||
| Average Weekly Sales (AWS) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 1Q11 | 38,247 | 39,085 | 40,678 | 37,603 | 37,721 | 33,707 | 32,353 | 33,350 | 34,323 | 42,421 | 36,501 | ||||||||||||||||||||||||||||||||||||||||||||
| 2Q11 | 36,477 | 37,787 | 38,653 | 36,393 | 36,439 | 31,904 | 31,304 | 31,879 | 31,014 | 38,242 | 35,022 | ||||||||||||||||||||||||||||||||||||||||||||
| 3Q11 | 35,074 | 36,347 | 37,414 | 35,121 | 35,404 | 30,764 | 29,807 | 30,904 | 30,587 | 34,903 | 33,730 | ||||||||||||||||||||||||||||||||||||||||||||
| 4Q11 | 36,898 | 37,191 | 37,575 | 35,664 | 35,639 | 30,893 | 30,608 | 31,541 | 28,942 | 32,788 | 34,194 | ||||||||||||||||||||||||||||||||||||||||||||
| 2011 | 36,674 | 37,603 | 38,580 | 36,195 | 36,301 | 31,817 | 31,018 | 31,918 | 31,216 | 35,925 | 34,854 | ||||||||||||||||||||||||||||||||||||||||||||
| Year-Over-Year Change Comparable Store Sales (2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Units | 16 | 17 | 19 | 23 | 27 | 32 | 25 | 7 | 1 | — | 167 | ||||||||||||||||||||||||||||||||||||||||||||
| 1Q11 | -4.2 | % | -1.5 | % | 0.3 | % | 0.8 | % | 0.5 | % | 0.5 | % | 1.1 | % | -0.7 | % | — | — | -0.2 | % | |||||||||||||||||||||||||||||||||||
| 2Q11 | -3.1 | % | -2.5 | % | -3.2 | % | -1.4 | % | -2.3 | % | -3.8 | % | -2.5 | % | -3.5 | % | -9.8 | % | — | -2.7 | % | ||||||||||||||||||||||||||||||||||
| 3Q11 | -2.9 | % | -2.7 | % | -3.6 | % | -2.9 | % | -3.7 | % | -4.6 | % | -3.9 | % | -3.0 | % | -10.3 | % | — | -3.6 | % | ||||||||||||||||||||||||||||||||||
| 4Q11 | -1.8 | % | -1.9 | % | -2.5 | % | -1.3 | % | -1.5 | % | -2.7 | % | -1.2 | % | -2.4 | % | -11.1 | % | — | -1.9 | % | ||||||||||||||||||||||||||||||||||
| 2011 | -3.0 | % | -2.2 | % | -2.2 | % | -1.2 | % | -1.7 | % | -2.6 | % | -1.6 | % | -2.5 | % | -10.6 | % | — | -2.1 | % | ||||||||||||||||||||||||||||||||||
| (1) Includes all restaurants opened in the period indicated. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (2) A unit becomes comparable in the eighteenth month of operation. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||