Exhibit 99.1
P.F. CHANG’S EARNS $0.27 PER SHARE
SCOTTSDALE, Arizona, July 23, 2003– P.F. Chang’s China Bistro, Inc. (NASDAQ:PFCB) today reported earnings of $7.1 million for the second quarter ended June 29, 2003 compared to $4.9 million in the second quarter of the prior year. Earnings per share for the second quarter increased to $0.27 from $0.19 in the second quarter of the prior year after taking into consideration the two-for-one stock dividend paid on May 1, 2002.
(000 except per share data) | 2Q03 | 1Q03 | 2Q02 | |||||||||
Revenues | $ | 136,605 | $ | 131,595 | $ | 101,650 | ||||||
Net Income | $ | 7,077 | $ | 6,797 | $ | 4,871 | ||||||
Diluted Earnings Per Share | $ | 0.27 | $ | 0.26 | $ | 0.19 | ||||||
Shares Used in EPS calculation | 26,228 | 26,038 | 26,008 |
2003 Expectations
The company anticipates opening 18 new Bistro units (six of which are already open) and 15 new Pei Wei units (seven of which are already open) in 2003. Based on this development schedule, and assuming comparable store sales growth at the Bistro units of 2% to 3% for the balance of the year, the company expects consolidated revenues of $555 million in fiscal 2003, a 32% increase over fiscal 2002. Net income is anticipated to be $28 million, which equates to earnings per share of $1.07. Included in these assumptions are Pei Wei pre-tax losses of approximately $300,000. The company will report its third quarter 2003 revenue results on October 1st, 2003 and its third quarter earnings results on October 23rd, 2003.
2004 Expectations
The company anticipates opening 16 new Bistro units and 22 new Pei Wei units in 2004. Based on this development schedule, the company expects consolidated revenues of $692 million, net income of $36 million and earnings per share of $1.32. This includes a $200,000 profit at Pei Wei Asian Diner.
The company is hosting a conference call today at 1:00 pm ET. A webcast of the call can be accessed through the company’s website athttp://www.pfchangs.com.
Page 1 of 11
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, traditional Chinese cuisine and American hospitality in a sophisticated, contemporary bistro setting. Pei Wei Asian Diner offers a modest menu of freshly prepared Asian cuisine in a relaxed, warm environment offering attentive counter service and take-out flexibility.
The statements contained in this press release that are not purely historical, including the company’s estimates of its revenues, earnings and comparable sales, as well as statements concerning the company’s development schedule, are forward looking statements. The accuracy of these forward-looking statements may be affected by certain risks and uncertainties, including, but not limited to, the company’s ability to locate acceptable restaurant sites, open new restaurants and operate its restaurants profitably; the company’s ability to hire, train and retain skilled management and other personnel; the company’s ability to access sufficient financing on acceptable terms; changes in consumer tastes and trends, and national, regional and local economic and weather conditions; changes in costs related to food, utilities and labor; and other risks described in the company’s recent SEC filings. In addition, the supplemental sales information is provided to investors to help gauge the company’s performance and is not indicative of future results.
Contact: | P.F. Chang’s China Bistro, Inc. | (602) 957-8986 | ||||
Media: | Laura Cherry | laurac@pfchangs.com | ||||
Investor: | Kristina Cashman | kristinac@pfchangs.com |
Page 2 of 11
P.F. Chang’s China Bistro, Inc.
Consolidated Statements of Income
(In thousands, except per share amounts)
(Unaudited)
13 Weeks Ended | 13 Weeks Ended | 13 Weeks Ended | ||||||||||
Jun 29 | Mar 30 | Jun 30 | ||||||||||
2003 | 2003 | 2002 | ||||||||||
Revenues | $ | 136,605 | $ | 131,595 | $ | 101,650 | ||||||
Cost of sales | 37,207 | 35,249 | 26,704 | |||||||||
Labor | 42,776 | 41,668 | 32,122 | |||||||||
Operating | 22,772 | 21,608 | 17,032 | |||||||||
Occupancy | 7,617 | 7,419 | 6,223 | |||||||||
Restaurant operating profit | 26,233 | 25,651 | 19,569 | |||||||||
General & administrative | 7,345 | 6,782 | 5,480 | |||||||||
Depreciation & amortization | 4,646 | 4,288 | 3,485 | |||||||||
Preopening expenses | 1,176 | 1,984 | 1,479 | |||||||||
Income from operations | 13,066 | 12,597 | 9,125 | |||||||||
Interest (expense) income and other income | (3 | ) | 41 | (18 | ) | |||||||
Minority interests | (2,340 | ) | (2,340 | ) | (1,613 | ) | ||||||
Income before provision for income taxes | 10,723 | 10,298 | 7,494 | |||||||||
Provision for income taxes | (3,646 | ) | (3,501 | ) | (2,623 | ) | ||||||
Net income | $ | 7,077 | $ | 6,797 | $ | 4,871 | ||||||
Basic net income (loss) per share | $ | 0.28 | $ | 0.27 | $ | 0.20 | ||||||
Diluted net income (loss) per share | $ | 0.27 | $ | 0.26 | $ | 0.19 | ||||||
Shares used in calculation of basic EPS | 25,338 | 25,137 | 24,727 | |||||||||
Shares used in calculation of diluted EPS | 26,228 | 26,038 | 26,008 |
Percentage of Revenues | ||||||||||||
Jun 29 | Mar 30 | Jun 30 | ||||||||||
2003 | 2003 | 2002 | ||||||||||
Revenues | 100.0 | % | 100.0 | % | 100.0 | % | ||||||
Cost of sales | 27.2 | % | 26.8 | % | 26.3 | % | ||||||
Labor | 31.3 | % | 31.7 | % | 31.6 | % | ||||||
Operating | 16.7 | % | 16.4 | % | 16.7 | % | ||||||
Occupancy | 5.6 | % | 5.6 | % | 6.1 | % | ||||||
Restaurant operating profit | 19.2 | % | 19.5 | % | 19.3 | % | ||||||
General & administrative | 5.4 | % | 5.2 | % | 5.4 | % | ||||||
Depreciation & amortization | 3.4 | % | 3.3 | % | 3.4 | % | ||||||
Preopening expenses | 0.9 | % | 1.5 | % | 1.5 | % | ||||||
Income from operations | 9.6 | % | 9.6 | % | 9.0 | % | ||||||
Interest (expense) income and other income | 0.0 | % | 0.0 | % | 0.0 | % | ||||||
Minority interests | -1.7 | % | -1.8 | % | -1.6 | % | ||||||
Income before provision for income taxes | 7.8 | % | 7.8 | % | 7.4 | % | ||||||
Provision for income taxes | -2.7 | % | -2.7 | % | -2.6 | % | ||||||
Net income | 5.2 | % | 5.2 | % | 4.8 | % | ||||||
Certain percentage amounts do not sum to total due to rounding.
Page 3 of 11
P.F. Chang’s China Bistro, Inc.
Consolidated Statements of Income
(In thousands, except per share amounts)
(Unaudited)
26 Weeks Ended | 26 Weeks Ended | |||||||
Jun 29 | Jun 30 | |||||||
2003 | 2002 | |||||||
Revenues | $ | 268,200 | $ | 199,150 | ||||
Cost of sales | 72,456 | 53,153 | ||||||
Labor | 84,444 | 62,805 | ||||||
Operating | 44,380 | 33,058 | ||||||
Occupancy | 15,036 | 12,343 | ||||||
Restaurant operating profit | 51,884 | 37,791 | ||||||
General & administrative | 14,127 | 10,415 | ||||||
Depreciation & amortization | 8,934 | 6,821 | ||||||
Preopening expenses | 3,160 | 2,099 | ||||||
Income from operations | 25,663 | 18,456 | ||||||
Interest (expense) income and other income | 38 | (27 | ) | |||||
Minority interests | (4,680 | ) | (3,056 | ) | ||||
Income before provision for income taxes | 21,021 | 15,373 | ||||||
Provision for income taxes | (7,147 | ) | (5,380 | ) | ||||
Net income | $ | 13,874 | $ | 9,993 | ||||
Basic net income (loss) per share | $ | 0.55 | $ | 0.41 | ||||
Diluted net income (loss) per share | $ | 0.53 | $ | 0.39 | ||||
Shares used in calculation of basic EPS | 25,237 | 24,407 | ||||||
Shares used in calculation of diluted EPS | 26,133 | 25,951 |
Jun 29 | Jun 30 | |||||||
2003 | 2002 | |||||||
Revenues | 100.0 | % | 100.0 | % | ||||
Cost of sales | 27.0 | % | 26.7 | % | ||||
Labor | 31.5 | % | 31.5 | % | ||||
Operating | 16.5 | % | 16.6 | % | ||||
Occupancy | 5.6 | % | 6.2 | % | ||||
Restaurant operating profit | 19.3 | % | 19.0 | % | ||||
General & administrative | 5.3 | % | 5.2 | % | ||||
Depreciation & amortization | 3.3 | % | 3.4 | % | ||||
Preopening expenses | 1.2 | % | 1.1 | % | ||||
Income from operations | 9.6 | % | 9.3 | % | ||||
Interest (expense) income and other income | 0.0 | % | 0.0 | % | ||||
Minority interests | -1.7 | % | -1.6 | % | ||||
Income before provision for income taxes | 7.8 | % | 7.7 | % | ||||
Provision for income taxes | -2.7 | % | -2.7 | % | ||||
Net income | 5.2 | % | 5.0 | % | ||||
Certain percentage amounts do not sum to total due to rounding.
Page 4 of 11
P.F. Chang’s China Bistro, Inc.
Supplemental Financial Information
(In thousands, except per share amounts)
(Unaudited)
13 Weeks Ended June 29, 2003 | ||||||||||||
Total | Bistro | Pei Wei | ||||||||||
Revenues | $ | 136,605 | $ | 123,919 | $ | 12,686 | ||||||
Cost of sales | 37,207 | 33,477 | 3,730 | |||||||||
Labor | 42,776 | 38,666 | 4,110 | |||||||||
Operating | 22,772 | 20,823 | 1,949 | |||||||||
Occupancy | 7,617 | 6,797 | 820 | |||||||||
Restaurant operating profit | 26,233 | 24,156 | 2,077 | |||||||||
General & administrative | 7,345 | 6,426 | 919 | |||||||||
Depreciation & amortization | 4,646 | 4,174 | 472 | |||||||||
Preopening expenses | 1,176 | 864 | 312 | |||||||||
Income (loss) from operations | 13,066 | 12,692 | 374 | |||||||||
Interest (expense) income and other income | (3 | ) | (8 | ) | 5 | |||||||
Minority interests | (2,340 | ) | (2,173 | ) | (167 | ) | ||||||
Income (loss) before provision for income taxes | 10,723 | 10,511 | 212 | |||||||||
Provision for income taxes | (3,646 | ) | ||||||||||
Net income | $ | 7,077 | ||||||||||
Basic net income per share | $ | 0.28 | ||||||||||
Diluted net income per share | $ | 0.27 | ||||||||||
Shares used in calculation of basic EPS | 25,338 | |||||||||||
Shares used in calculation of diluted EPS | 26,228 |
Percentage of Revenues | ||||||||||||
Total | Bistro | Pei Wei | ||||||||||
Revenues | 100.0 | % | 100.0 | % | 100.0 | % | ||||||
Cost of sales | 27.2 | % | 27.0 | % | 29.4 | % | ||||||
Labor | 31.3 | % | 31.2 | % | 32.4 | % | ||||||
Operating | 16.7 | % | 16.8 | % | 15.4 | % | ||||||
Occupancy | 5.6 | % | 5.5 | % | 6.5 | % | ||||||
Restaurant operating profit | 19.2 | % | 19.5 | % | 16.4 | % | ||||||
General & administrative | 5.4 | % | 5.2 | % | 7.2 | % | ||||||
Depreciation & amortization | 3.4 | % | 3.4 | % | 3.7 | % | ||||||
Preopening expenses | 0.9 | % | 0.7 | % | 2.5 | % | ||||||
Income (loss) from operations | 9.6 | % | 10.2 | % | 2.9 | % | ||||||
Interest (expense) income and other income | 0.0 | % | 0.0 | % | 0.0 | % | ||||||
Minority interests | -1.7 | % | -1.8 | % | -1.3 | % | ||||||
Income (loss) before provision for income taxes | 7.8 | % | 8.5 | % | 1.7 | % | ||||||
Provision for income taxes | -2.7 | % | ||||||||||
Net income | 5.2 | % | ||||||||||
Certain percentage amounts do not sum to total due to rounding.
Page 5 of 11
P.F. Chang’s China Bistro, Inc.
Supplemental Financial Information
(In thousands, except per share amounts)
(Unaudited)
26 Weeks Ended June 29, 2003 | ||||||||||||
Total | Bistro | Pei Wei | ||||||||||
Revenues | $ | 268,200 | $ | 244,659 | $ | 23,541 | ||||||
Cost of sales | 72,456 | 65,601 | 6,855 | |||||||||
Labor | 84,444 | 76,728 | 7,716 | |||||||||
Operating | 44,380 | 40,774 | 3,606 | |||||||||
Occupancy | 15,036 | 13,496 | 1,540 | |||||||||
Restaurant operating profit | 51,884 | 48,060 | 3,824 | |||||||||
General & administrative | 14,127 | 12,361 | 1,766 | |||||||||
Depreciation & amortization | 8,934 | 8,063 | 871 | |||||||||
Preopening expenses | 3,160 | 2,535 | 625 | |||||||||
Income (loss) from operations | 25,663 | 25,101 | 562 | |||||||||
Interest (expense) income and other income | 38 | 33 | 5 | |||||||||
Minority interests | (4,680 | ) | (4,376 | ) | (304 | ) | ||||||
Income (loss) before provision for income taxes | 21,021 | 20,758 | 263 | |||||||||
Provision for income taxes | (7,147 | ) | ||||||||||
Net income | $ | 13,874 | ||||||||||
Basic net income per share | $ | 0.55 | ||||||||||
Diluted net income per share | $ | 0.53 | ||||||||||
Shares used in calculation of basic EPS | 25,237 | |||||||||||
Shares used in calculation of diluted EPS | 26,133 |
Percentage of Revenues | ||||||||||||
Total | Bistro | Pei Wei | ||||||||||
Revenues | 100.0 | % | 100.0 | % | 100.0 | % | ||||||
Cost of sales | 27.0 | % | 26.8 | % | 29.1 | % | ||||||
Labor | 31.5 | % | 31.4 | % | 32.8 | % | ||||||
Operating | 16.5 | % | 16.7 | % | 15.3 | % | ||||||
Occupancy | 5.6 | % | 5.5 | % | 6.5 | % | ||||||
Restaurant operating profit | 19.3 | % | 19.6 | % | 16.2 | % | ||||||
General & administrative | 5.3 | % | 5.1 | % | 7.5 | % | ||||||
Depreciation & amortization | 3.3 | % | 3.3 | % | 3.7 | % | ||||||
Preopening expenses | 1.2 | % | 1.0 | % | 2.7 | % | ||||||
Income (loss) from operations | 9.6 | % | 10.3 | % | 2.4 | % | ||||||
Interest (expense) income and other income | 0.0 | % | 0.0 | % | 0.0 | % | ||||||
Minority interests | -1.7 | % | -1.8 | % | -1.3 | % | ||||||
Income (loss) before provision for income taxes | 7.8 | % | 8.5 | % | 1.1 | % | ||||||
Provision for income taxes | -2.7 | % | ||||||||||
Net income | 5.2 | % | ||||||||||
Certain percentage amounts do not sum to total due to rounding.
Page 6 of 11
P.F. Chang’s China Bistro
Supplemental Sales Information
Year of Unit Opening (1)
Pre-1996 | 1996 | 1997 | 1998 | 1999 | 2000 | 2001 | 2002 | 2003 | Total | |||||||||||||||||||||||||||||||
Units | 4 | 3 | 6 | 10 | 13 | 16 | 13 | 14 | 6 | 85 | ||||||||||||||||||||||||||||||
Sales (000) | ||||||||||||||||||||||||||||||||||||||||
1Q03 | 6,434 | 5,908 | 9,060 | 15,753 | 18,800 | 23,236 | 18,815 | 17,983 | 4,751 | 120,740 | ||||||||||||||||||||||||||||||
2Q03 | 6,238 | 5,955 | 9,180 | 15,545 | 19,037 | 23,754 | 18,576 | 17,214 | 8,420 | 123,919 | ||||||||||||||||||||||||||||||
2003 | 12,672 | 11,863 | 18,240 | 31,298 | 37,837 | 46,990 | 37,391 | 35,197 | 13,171 | 244,659 | ||||||||||||||||||||||||||||||
Average Weekly Sales (AWS) | ||||||||||||||||||||||||||||||||||||||||
1Q03 | 123,738 | 151,474 | 116,157 | 121,175 | 111,239 | 111,713 | 111,331 | 98,808 | 143,980 | 113,906 | ||||||||||||||||||||||||||||||
2Q03 | 119,958 | 152,695 | 117,695 | 119,575 | 112,647 | 114,202 | 109,915 | 94,582 | 125,666 | 113,271 | ||||||||||||||||||||||||||||||
2003 | 121,848 | 152,084 | 116,926 | 120,375 | 111,943 | 112,957 | 110,623 | 96,695 | 131,709 | 113,583 | ||||||||||||||||||||||||||||||
Year-Over-Year Change in AWS | ||||||||||||||||||||||||||||||||||||||||
1Q03 | 0.2 | % | 3.7 | % | 6.0 | % | 5.1 | % | 5.0 | % | 11.0 | % | 5.4 | % | -1.7 | % | — | 4.4 | % | |||||||||||||||||||||
2Q03 | -0.4 | % | 1.9 | % | 7.3 | % | 1.4 | % | 5.3 | % | 10.4 | % | 5.1 | % | -6.1 | % | — | 3.1 | % | |||||||||||||||||||||
2003 | -0.1 | % | 2.8 | % | 6.6 | % | 3.2 | % | 5.2 | % | 10.7 | % | 5.3 | % | -4.0 | % | — | 3.7 | % | |||||||||||||||||||||
Year-Over-Year Change Comp Store Sales (2) | ||||||||||||||||||||||||||||||||||||||||
Units | 4 | 3 | 6 | 10 | 13 | 16 | 13 | 1 | — | 66 | ||||||||||||||||||||||||||||||
1Q03 | 0.2 | % | 3.7 | % | 6.0 | % | 5.1 | % | 5.0 | % | 11.0 | % | 6.6 | % | — | — | 6.4 | % | ||||||||||||||||||||||
2Q03 | -0.4 | % | 1.9 | % | 7.3 | % | 1.4 | % | 5.3 | % | 10.4 | % | 5.2 | % | 5.4 | % | — | 5.4 | % | |||||||||||||||||||||
2003 | -0.1 | % | 2.8 | % | 6.6 | % | 3.2 | % | 5.2 | % | 10.7 | % | 5.8 | % | 5.4 | % | — | 5.9 | % |
(1) Includes all restaurants opened in the period indicated.
(2) A unit becomes comparable in the eighteenth month of operation
Page 7 of 11
Pei Wei Asian Diner
Supplemental Sales Information
Year of Unit Opening (1)
2000 | 2001 | 2002 | 2003 | Total | ||||||||||||||||
Units | 1 | 4 | 11 | 7 | 23 | |||||||||||||||
Sales (000) | ||||||||||||||||||||
1Q03 | 868 | 2,390 | 5,762 | 1,835 | 10,855 | |||||||||||||||
2Q03 | 841 | 2,241 | 5,722 | 3,882 | 12,686 | |||||||||||||||
2003 | 1,709 | 4,631 | 11,484 | 5,717 | 23,541 | |||||||||||||||
Average Weekly Sales (AWS) | ||||||||||||||||||||
1Q03 | 66,787 | 45,956 | 40,295 | 52,437 | 44,673 | |||||||||||||||
2Q03 | 64,652 | 43,092 | 40,017 | 53,176 | 45,144 | |||||||||||||||
2003 | 65,720 | 44,524 | 40,156 | 52,937 | 44,926 | |||||||||||||||
Year-Over-Year Change in AWS | ||||||||||||||||||||
1Q03 | 3.0 | % | 6.4 | % | -15.1 | % | — | -6.0 | % | |||||||||||
2Q03 | 4.2 | % | -0.3 | % | 11.3 | % | — | 3.4 | % | |||||||||||
2003 | 3.6 | % | 3.0 | % | 1.9 | % | — | -1.1 | % |
Year-Over-Year Change Comp Store Sales (2)
Units | 1 | 4 | 1 | — | 6 | |||||||||||||||
1Q03 | 3.0 | % | -1.2 | % | — | — | 1.1 | % | ||||||||||||
2Q03 | 4.2 | % | -2.5 | % | 2.1 | % | — | -0.1 | % | |||||||||||
2003 | 3.6 | % | -2.1 | % | 2.1 | % | — | 0.3 | % |
(1) Includes all restaurants opened in the period indicated.
(2) A unit becomes comparable in the eighteenth month of operation
Page 8 of 11
P.F. Chang’s China Bistro, Inc.
Development Schedule
P. F. Chang’s China Bistro | ||||||||||||||||
1Q03 | 2Q03 | 3Q03 | 4Q03 | |||||||||||||
Units opened | 5 | 1 | ||||||||||||||
Units under construction | 5 | 7 | ||||||||||||||
Units in development | ||||||||||||||||
Total new unit development | 5 | 1 | 5 | 7 | ||||||||||||
Existing units | 79 | 84 | 85 | 90 | ||||||||||||
Total units | 84 | 85 | 90 | 97 | ||||||||||||
Pei Wei Asian Diner | ||||||||||||||||
1Q03 | 2Q03 | 3Q03 | 4Q03 | |||||||||||||
Units opened | 4 | 3 | ||||||||||||||
Units under construction | 4 | 2 | ||||||||||||||
Units in development | 2 | |||||||||||||||
Total new unit development | 4 | 3 | 4 | 4 | ||||||||||||
Existing units | 16 | 20 | 23 | 27 | ||||||||||||
Total units | 20 | 23 | 27 | 31 | ||||||||||||
Page 9 of 11