Exhibit 99.1
P.F. CHANG’S EARNS $0.40 PER SHARE
SCOTTSDALE, Arizona, April 27, 2005– P.F. Chang’s China Bistro, Inc. (NASDAQ:PFCB) today reported earnings of $10.8 million for the first quarter ended April 3, 2005 compared to a net loss of $(0.7) million in the first quarter of the prior year after giving effect to certain special charges relating to partnership accounting changes. Earnings per share for the first quarter increased to $0.40 from a loss per share of $(0.03) in the first quarter of the prior year. The company had an additional week in fiscal 2004 (a 53-week year versus the typical 52-week year) which is included in the fourth quarter 2004 earnings amounts noted below.
(000 except per share data) | 1Q05 | 4Q04 | 1Q04 (1) | |||||||||
Revenues | $ | 194,214 | $ | 199,270 | $ | 164,056 | ||||||
Net Income (loss) | $ | 10,826 | $ | 10,165 | $ | (678 | ) | |||||
Diluted Earnings Per Share | $ | 0.40 | $ | 0.38 | $ | (0.03 | ) | |||||
Shares Used in EPS calculation | 26,893 | 26,786 | 25,559 |
(1) | The company’s first quarter 2004 net loss included non-recurring charges totaling $7.6 million (after-tax) relating to the modification of the company’s partnership agreements as well as certain legal settlement costs. First quarter 2004 amounts also reflect our lease accounting restatement which is more fully described in our annual report on Form 10-K filed on April 1, 2005. |
2005 Expectations
The company anticipates opening 18 new Bistro units and 26 new Pei Wei units in 2005. Based on this development schedule, and modest revenue growth from existing stores of approximately 2%, the company expects consolidated revenues of $822 million, net income of $41 million and earnings per share of $1.52. Lease accounting changes decreased previous earnings per share expectations by $0.04 for 2005. The company will release its second quarter 2005 revenue results on July 7, 2005 and its second quarter 2005 earnings results on July 27, 2005.
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The company is hosting a conference call today at 1:00 pm ET in which management will provide further details on the first quarter. A webcast of the call can be accessed through the company’s website athttp://www.pfchangs.com.
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 operate its restaurants profitably; the company’s ability to hire, train and retain skilled management and other personnel; changes in consumer tastes and trends, and national, regional and local economic and weather conditions; changes in costs related to food, utilities and labor; changes to existing accounting rules or differing interpretations to our current accounting practices 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: | Bert Vivian | bertv@pfchangs.com |
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P.F. Chang’s China Bistro, Inc.
Consolidated Statements of Operations
13 Weeks Ended | 14 Weeks Ended | 13 Weeks Ended | ||||||||||
Apr 3 | Jan 2 | Mar 28 | ||||||||||
2005 | 2005 | 2004 | ||||||||||
Restated | ||||||||||||
Revenues | $ | 194,214 | $ | 199,270 | $ | 164,056 | ||||||
Cost of sales | 53,982 | 57,157 | 46,860 | |||||||||
Labor | 63,404 | 64,235 | 54,632 | |||||||||
Partner bonus expense, imputed | 466 | 508 | 378 | |||||||||
Operating | 28,364 | 28,430 | 22,617 | |||||||||
Occupancy | 10,274 | 10,816 | 8,507 | |||||||||
Restaurant operating profit | 37,724 | 38,124 | 31,062 | |||||||||
General & administrative | 10,126 | 8,766 | 8,709 | |||||||||
Depreciation & amortization | 8,134 | 8,316 | 6,523 | |||||||||
Preopening expenses | 1,334 | 2,218 | 2,355 | |||||||||
Partner investment expense | 273 | 1,615 | 13,471 | |||||||||
Income from operations | 17,857 | 17,209 | 4 | |||||||||
Interest income, net and other income | 458 | 374 | 91 | |||||||||
Minority interest | (2,276 | ) | (2,831 | ) | (2,280 | ) | ||||||
Income (losses) before (provision for) benefit from income taxes | 16,039 | 14,752 | (2,185 | ) | ||||||||
(Provision for) benefit from income taxes | (5,213 | ) | (4,587 | ) | 1,507 | |||||||
Net income (loss) | $ | 10,826 | $ | 10,165 | $ | (678 | ) | |||||
Basic net income (loss) per share | $ | 0.41 | $ | 0.39 | $ | (0.03 | ) | |||||
Diluted net income (loss) per share | $ | 0.40 | $ | 0.38 | $ | (0.03 | ) | |||||
Shares used in calculation of basic EPS | 26,117 | 25,977 | 25,559 | |||||||||
Shares used in calculation of diluted EPS | 26,893 | 26,786 | 25,559 | |||||||||
Percentage of Revenues | ||||||||||||
Apr 3 | Jan 2 | Mar 28 | ||||||||||
2005 | 2005 | 2004 | ||||||||||
Restated | ||||||||||||
Revenues | 100.0 | % | 100.0 | % | 100.0 | % | ||||||
Cost of sales | 27.8 | % | 28.7 | % | 28.6 | % | ||||||
Labor | 32.6 | % | 32.2 | % | 33.3 | % | ||||||
Partner bonus expense, imputed | 0.2 | % | 0.3 | % | 0.2 | % | ||||||
Operating | 14.6 | % | 14.3 | % | 13.8 | % | ||||||
Occupancy | 5.3 | % | 5.4 | % | 5.2 | % | ||||||
Restaurant operating profit | 19.4 | % | 19.1 | % | 18.9 | % | ||||||
General & administrative | 5.2 | % | 4.4 | % | 5.3 | % | ||||||
Depreciation & amortization | 4.2 | % | 4.2 | % | 4.0 | % | ||||||
Preopening expenses | 0.7 | % | 1.1 | % | 1.4 | % | ||||||
Partner investment expense | 0.1 | % | 0.8 | % | 8.2 | % | ||||||
Income from operations | 9.2 | % | 8.6 | % | 0.0 | % | ||||||
Interest income, net and other income | 0.2 | % | 0.2 | % | 0.1 | % | ||||||
Minority interest | -1.2 | % | -1.4 | % | -1.4 | % | ||||||
Income (loss) before (provision for) benefit from income taxes | 8.3 | % | 7.4 | % | -1.3 | % | ||||||
(Provision for) benefit from income taxes | -2.7 | % | -2.3 | % | 0.9 | % | ||||||
Net income (loss) | 5.6 | % | 5.1 | % | -0.4 | % | ||||||
Certain percentage amounts do not sum to total due to rounding.
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P.F. Chang’s China Bistro, Inc.
Supplemental Financial Information
13 Weeks Ended April 3, 2005 | ||||||||||||||||
Shared | ||||||||||||||||
Total | Bistro | Pei Wei | Services | |||||||||||||
Revenues | $ | 194,214 | $ | 163,579 | $ | 30,635 | $ | — | ||||||||
Cost of sales | 53,982 | 45,317 | 8,665 | — | ||||||||||||
Labor | 63,404 | 53,439 | 9,965 | — | ||||||||||||
Partner bonus expense, imputed | 466 | 431 | 35 | — | ||||||||||||
Operating | 28,364 | 23,711 | 4,653 | — | ||||||||||||
Occupancy | 10,274 | 8,465 | 1,809 | — | ||||||||||||
Restaurant operating profit | 37,724 | 32,216 | 5,508 | — | ||||||||||||
General & administrative | 10,126 | 3,705 | 1,526 | 4,895 | ||||||||||||
Depreciation & amortization | 8,134 | 6,679 | 1,306 | 149 | ||||||||||||
Preopening expenses | 1,334 | 965 | 369 | — | ||||||||||||
Partner investment expense | 273 | 208 | 65 | — | ||||||||||||
Income (loss) from operations | 17,857 | 20,659 | 2,242 | (5,044 | ) | |||||||||||
Interest income, net and other income | 458 | 115 | — | 343 | ||||||||||||
Minority interest | (2,276 | ) | (1,935 | ) | (341 | ) | — | |||||||||
Income (loss) before provision for income taxes | 16,039 | 18,839 | 1,901 | (4,701 | ) | |||||||||||
Provision for income taxes | (5,213 | ) | ||||||||||||||
Net income | $ | 10,826 | ||||||||||||||
Basic net income per share | $ | 0.41 | ||||||||||||||
Diluted net income per share | $ | 0.40 | ||||||||||||||
Shares used in calculation of basic EPS | 26,117 | |||||||||||||||
Shares used in calculation of diluted EPS | 26,893 |
Percentage of Revenues | ||||||||||||||||
Total * | Bistro | Pei Wei | ||||||||||||||
Revenues | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
Cost of sales | 27.8 | % | 27.7 | % | 28.3 | % | ||||||||||
Labor | 32.6 | % | 32.7 | % | 32.5 | % | ||||||||||
Partner bonus expense, imputed | 0.2 | % | 0.3 | % | 0.1 | % | ||||||||||
Operating | 14.6 | % | 14.5 | % | 15.2 | % | ||||||||||
Occupancy | 5.3 | % | 5.2 | % | 5.9 | % | ||||||||||
Restaurant operating profit | 19.4 | % | 19.7 | % | 18.0 | % | ||||||||||
General & administrative | 5.2 | % | 2.3 | % | 5.0 | % | ||||||||||
Depreciation & amortization | 4.2 | % | 4.1 | % | 4.3 | % | ||||||||||
Preopening expenses | 0.7 | % | 0.6 | % | 1.2 | % | ||||||||||
Partner investment expense | 0.1 | % | 0.1 | % | 0.2 | % | ||||||||||
Income from operations | 9.2 | % | 12.6 | % | 7.3 | % | ||||||||||
Interest income, net and other income | 0.2 | % | 0.1 | % | 0.0 | % | ||||||||||
Minority interest | -1.2 | % | -1.2 | % | -1.1 | % | ||||||||||
Income before provision for income taxes | 8.3 | % | 11.5 | % | 6.2 | % | ||||||||||
Provision for income taxes | -2.7 | % | ||||||||||||||
Net income | 5.6 | % | ||||||||||||||
Certain percentage amounts do not sum to total due to rounding.
* Includes Shared Services. Beginning in fiscal year 2005, the Company began classifying certain general and administrative expenses which benefit both the Bistro and Pei Wei within Shared Services.
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P.F. Chang’s China Bistro, Inc.
Development Schedule
P. F. Chang’s China Bistro | ||||||||||||||||
1Q05 | 2Q05 | 3Q05 | 4Q05 | |||||||||||||
Units opened | 2 | 1 | ||||||||||||||
Units under construction | 4 | 5 | ||||||||||||||
Units in development | 6 | |||||||||||||||
Units closed | (1 | ) | ||||||||||||||
Total new unit development | 1 | 5 | 5 | 6 | ||||||||||||
Existing units | 115 | 116 | 121 | 126 | ||||||||||||
Total units | 116 | 121 | 126 | 132 | ||||||||||||
Pei Wei Asian Diner | ||||||||||||||||
1Q05 | 2Q05 | 3Q05 | 4Q05 | |||||||||||||
Units opened | 1 | 1 | ||||||||||||||
Units under construction | 5 | 4 | ||||||||||||||
Units in development | 4 | 11 | ||||||||||||||
Total new unit development | 1 | 6 | 8 | 11 | ||||||||||||
Existing units | 53 | 54 | 60 | 68 | ||||||||||||
Total units | 54 | 60 | 68 | 79 | ||||||||||||
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