Exhibit 99.1
P.F. CHANG’S EARNS $0.31 PER SHARE
SCOTTSDALE, Arizona, October 26, 2005— P.F. Chang’s China Bistro, Inc. (NASDAQ:PFCB) today reported earnings of $8.4 million for the third quarter ended October 2, 2005 compared to $8.2 million for the third quarter of the prior year. Earnings per share for the third quarter remained at $0.31 as compared to the third quarter of the prior year.
(000 except per share data) | 3Q05 | 2Q05 | 3Q04 | |||||||||
Revenues | $ | 203,049 | $ | 198,056 | $ | 174,013 | ||||||
Net Income | $ | 8,439 | $ | 9,252 | $ | 8,171 | ||||||
Diluted Earnings Per Share | $ | 0.31 | $ | 0.34 | $ | 0.31 | ||||||
Shares Used in diluted EPS calculation | 27,073 | 26,977 | 26,589 |
Fourth Quarter Expectations
The Company has lowered its fourth quarter revenue expectations from $219 million to $214 million due to slightly lower traffic expectations, fewer new unit sales weeks and the continued closure of its Bistro restaurant in Metairie, Louisiana. Accordingly, the Company’s earnings expectations have been reduced to $0.33 per share versus the previous forecast of $0.38 per share.
2006 Expectations
The company expects to increase revenues from fiscal 2005 by approximately 20% in fiscal 2006. This estimate is based on an increase in new restaurants (19 company-owned Bistros, 1 joint-ventured Bistro, 30 new Pei Wei Asian Diners and 1 Taneko Japanese Tavern) as well as comparable store sales growth assumptions of 1 to 2%. Earnings in fiscal 2006 (before any impact from stock option expensing or new lease accounting rules) should grow commensurate with revenues.
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Management Changes
Separately, the Company announced that it had commenced a search to identify a replacement for its Chief Financial Officer, Kristina Cashman. Kristina commented “I love this Company and most especially the people who are a part of it. I have thoroughly enjoyed every moment I have spent here. However, I would like to have the opportunity to spend more time with my young children and to pursue other personal interests. I obviously will devote my full attention to this position until such time as a replacement has been identified and fully integrated.”
Chief Executive Officer, Rick Federico, noted that “the Company is in great debt to Kristina for her efforts over the last nine years. While we respect her decision, we are hopeful that she will stay in touch and perhaps maintain a more limited role with the Company. The search for a replacement has commenced immediately and we are confident that many quality candidates will be interested in leading our finance team as the Company moves forward.”
Pei Wei Transaction
The Company also announced its intention to purchase the 13% minority interest held by key employees in its Pei Wei Asian Diner subsidiary. While a definitive price has not been established, the Company anticipates that the consideration given for the outstanding Pei Wei Asian Diner common shares and options will be a combination of cash and options to purchase shares in P.F. Chang’s China Bistro, Inc. The transaction will not involve any changes in management or key positions in Pei Wei. The Company anticipates the purchase will occur in the first quarter of fiscal 2006 and will be slightly dilutive to fiscal 2006 earnings per share. The Company has engaged an independent third party investment banker who will help with the valuation of this interest and provide the Company with a fairness opinion on the transaction from a financial point of view.
The Company is hosting a conference call today at 1:00 pm ET in which management will provide further details on the third quarter results as well as its expectations for the balance of the year. A webcast of the call can be accessed through the company’s website at http://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.
Contact: | P.F. Chang’s China Bistro, Inc. (480) 888-3000 | |||||
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 (In thousands, except per share amounts) (Unaudited)
13 Weeks Ended | 13 Weeks Ended | 13 Weeks Ended | ||||||||||
Oct 2 | Jul 3 | Sept 26 | ||||||||||
2005 | 2005 | 2004 | ||||||||||
(Restated) | ||||||||||||
Revenues | $ | 203,049 | $ | 198,056 | $ | 174,013 | ||||||
Cost of sales | 56,010 | 54,493 | 48,853 | |||||||||
Labor | 67,770 | 64,636 | 56,223 | |||||||||
Partner bonus expense, imputed | 440 | 470 | 455 | |||||||||
Operating | 31,619 | 29,634 | 24,770 | |||||||||
Occupancy | 11,182 | 10,767 | 9,372 | |||||||||
Restaurant operating profit | 36,028 | 38,056 | 34,340 | |||||||||
General & administrative | 9,256 | 10,025 | 8,893 | |||||||||
Depreciation & amortization | 9,258 | 8,519 | 7,330 | |||||||||
Preopening expenses | 2,712 | 2,496 | 2,056 | |||||||||
Partner investment expense | 1,472 | 1,581 | 1,675 | |||||||||
Income from operations | 13,330 | 15,435 | 14,386 | |||||||||
Interest income, net and other income | 530 | 447 | 91 | |||||||||
Minority interest | (1,974 | ) | (2,176 | ) | (2,574 | ) | ||||||
Income before provision for income taxes | 11,886 | 13,706 | 11,903 | |||||||||
Provision for income taxes | (3,447 | ) | (4,454 | ) | (3,732 | ) | ||||||
Net income | $ | 8,439 | $ | 9,252 | $ | 8,171 | ||||||
Basic net income per share | $ | 0.32 | $ | 0.35 | $ | 0.32 | ||||||
Diluted net income per share | $ | 0.31 | $ | 0.34 | $ | 0.31 | ||||||
Shares used in calculation of basic EPS | 26,359 | 26,221 | 25,768 | |||||||||
Shares used in calculation of diluted EPS | 27,073 | 26,977 | 26,589 |
Percentage of Revenues | ||||||||||||
Oct 2 | Jul 3 | Sept 26 | ||||||||||
2005 | 2005 | 2004 | ||||||||||
(Restated) | ||||||||||||
Revenues | 100.0 | % | 100.0 | % | 100.0 | % | ||||||
Cost of sales | 27.6 | % | 27.5 | % | 28.1 | % | ||||||
Labor | 33.4 | % | 32.6 | % | 32.3 | % | ||||||
Partner bonus expense, imputed | 0.2 | % | 0.2 | % | 0.3 | % | ||||||
Operating | 15.6 | % | 15.0 | % | 14.2 | % | ||||||
Occupancy | 5.5 | % | 5.4 | % | 5.4 | % | ||||||
Restaurant operating profit | 17.7 | % | 19.2 | % | 19.7 | % | ||||||
General & administrative | 4.6 | % | 5.1 | % | 5.1 | % | ||||||
Depreciation & amortization | 4.6 | % | 4.3 | % | 4.2 | % | ||||||
Preopening expenses | 1.3 | % | 1.3 | % | 1.2 | % | ||||||
Partner investment expense | 0.7 | % | 0.8 | % | 1.0 | % | ||||||
Income from operations | 6.6 | % | 7.8 | % | 8.3 | % | ||||||
Interest income, net and other income | 0.3 | % | 0.2 | % | 0.1 | % | ||||||
Minority interest | -1.0 | % | -1.1 | % | -1.5 | % | ||||||
Income before provision for income taxes | 5.9 | % | 6.9 | % | 6.8 | % | ||||||
Provision for income taxes | -1.7 | % | -2.2 | % | -2.1 | % | ||||||
Net income | 4.2 | % | 4.7 | % | 4.7 | % | ||||||
Certain percentage amounts do not sum to total due to rounding.
Page 3 of 9
P.F. Chang’s China Bistro, Inc.
Consolidated Statements of Operations (In thousands, except per share amounts) (Unaudited)
39 Weeks Ended | 39 Weeks Ended | |||||||||||
Oct 2 | Sept 26 | |||||||||||
2005 | 2004 | |||||||||||
(Restated) | ||||||||||||
Revenues | $ | 595,319 | $ | 507,671 | ||||||||
Cost of sales | 164,485 | 143,579 | ||||||||||
Labor | 195,810 | 167,340 | ||||||||||
Partner bonus expense, imputed | 1,376 | 1,242 | ||||||||||
Operating | 89,617 | 71,098 | ||||||||||
Occupancy | 32,223 | 26,877 | ||||||||||
Restaurant operating profit | 111,808 | 97,535 | ||||||||||
General & administrative | 29,407 | 25,896 | ||||||||||
Depreciation & amortization | 25,911 | 20,839 | ||||||||||
Preopening expenses | 6,542 | 5,777 | ||||||||||
Partner investment expense | 3,326 | 16,056 | ||||||||||
Income from operations | 46,622 | 28,967 | ||||||||||
Interest income and other income | 1,435 | 238 | ||||||||||
Minority interest | (6,426 | ) | (7,247 | ) | ||||||||
Income before provision for income taxes | 41,631 | 21,958 | ||||||||||
Provision for income taxes | (13,114 | ) | (6,069 | ) | ||||||||
Net income | $ | 28,517 | $ | 15,889 | ||||||||
Basic net income per share | $ | 1.09 | $ | 0.62 | ||||||||
Diluted net income per share | $ | 1.06 | $ | 0.60 | ||||||||
Shares used in calculation of basic EPS | 26,232 | 25,644 | ||||||||||
Shares used in calculation of diluted EPS | 26,981 | 26,505 |
Percentage of Revenues | ||||||||
Oct 2 | Sept 26 | |||||||
2005 | 2004 | |||||||
Revenues | 100.0 | % | 100.0 | % | ||||
Cost of sales | 27.6 | % | 28.3 | % | ||||
Labor | 32.9 | % | 33.0 | % | ||||
Partner bonus expense, imputed | 0.2 | % | 0.2 | % | ||||
Operating | 15.1 | % | 14.0 | % | ||||
Occupancy | 5.4 | % | 5.3 | % | ||||
Restaurant operating profit | 18.8 | % | 19.2 | % | ||||
General & administrative | 4.9 | % | 5.1 | % | ||||
Depreciation & amortization | 4.4 | % | 4.1 | % | ||||
Preopening expenses | 1.1 | % | 1.1 | % | ||||
Partner investment expense | 0.6 | % | 3.2 | % | ||||
Income from operations | 7.8 | % | 5.7 | % | ||||
Interest income and other income | 0.2 | % | 0.0 | % | ||||
Minority interest | -1.1 | % | -1.4 | % | ||||
Income before provision for income taxes | 7.0 | % | 4.3 | % | ||||
Provision for income taxes | -2.2 | % | -1.2 | % | ||||
Net income | 4.8 | % | 3.1 | % | ||||
Certain percentage amounts do not sum to total due to rounding.
Page 4 of 9
P.F. Chang’s China Bistro, Inc.
Supplemental Financial Information (In thousands, except per share amounts) (Unaudited)
13 Weeks Ended Oct 2, 2005 | ||||||||||||||||
Shared | ||||||||||||||||
Total | Bistro | Pei Wei | Services | |||||||||||||
Revenues | $ | 203,049 | $ | 168,612 | $ | 34,437 | $ | — | ||||||||
Cost of sales | 56,010 | 46,359 | 9,651 | — | ||||||||||||
Labor | 67,770 | 55,808 | 11,962 | — | ||||||||||||
Partner bonus expense, imputed | 440 | 412 | 28 | — | ||||||||||||
Operating | 31,619 | 25,770 | 5,849 | — | ||||||||||||
Occupancy | 11,182 | 9,102 | 2,080 | — | ||||||||||||
Restaurant operating profit | 36,028 | 31,161 | 4,867 | — | ||||||||||||
General & administrative | 9,256 | 3,278 | 1,594 | 4,384 | ||||||||||||
Depreciation & amortization | 9,258 | 7,462 | 1,533 | 263 | ||||||||||||
Preopening expenses | 2,712 | 1,651 | 1,061 | — | ||||||||||||
Partner investment expense | 1,472 | 1,303 | 169 | — | ||||||||||||
Income from operations | 13,330 | 17,467 | 510 | (4,647 | ) | |||||||||||
Interest income, net and other income | 530 | 146 | 3 | 381 | ||||||||||||
Minority interest | (1,974 | ) | (1,723 | ) | (251 | ) | — | |||||||||
Income before provision for income taxes | 11,886 | 15,890 | 262 | (4,266 | ) | |||||||||||
Provision for income taxes | (3,447 | ) | ||||||||||||||
Net income | $ | 8,439 | ||||||||||||||
Basic net income per share | $ | 0.32 | ||||||||||||||
Diluted net income per share | $ | 0.31 | ||||||||||||||
Shares used in calculation of basic EPS | 26,359 | |||||||||||||||
Shares used in calculation of diluted EPS | 27,073 |
Percentage of Revenues | ||||||||||||||||
Total * | Bistro | Pei Wei | ||||||||||||||
Revenues | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
Cost of sales | 27.6 | % | 27.5 | % | 28.0 | % | ||||||||||
Labor | 33.4 | % | 33.1 | % | 34.7 | % | ||||||||||
Partner bonus expense, imputed | 0.2 | % | 0.2 | % | 0.1 | % | ||||||||||
Operating | 15.6 | % | 15.3 | % | 17.0 | % | ||||||||||
Occupancy | 5.5 | % | 5.4 | % | 6.0 | % | ||||||||||
Restaurant operating profit | 17.7 | % | 18.5 | % | 14.1 | % | ||||||||||
General & administrative | 4.6 | % | 1.9 | % | 4.6 | % | ||||||||||
Depreciation & amortization | 4.6 | % | 4.4 | % | 4.5 | % | ||||||||||
Preopening expenses | 1.3 | % | 1.0 | % | 3.1 | % | ||||||||||
Partner investment expense | 0.7 | % | 0.8 | % | 0.5 | % | ||||||||||
Income from operations | 6.6 | % | 10.4 | % | 1.5 | % | ||||||||||
Interest income, net and other income | 0.3 | % | 0.1 | % | 0.0 | % | ||||||||||
Minority interest | -1.0 | % | -1.0 | % | -0.7 | % | ||||||||||
Income before provision for income taxes | 5.9 | % | 9.4 | % | 0.8 | % | ||||||||||
Provision for income taxes | -1.7 | % | ||||||||||||||
Net income | 4.2 | % | ||||||||||||||
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.
Supplemental Financial Information(In thousands, except per share amounts)(Unaudited)
39 Weeks Ended Oct 2, 2005 | ||||||||||||||||
Shared | ||||||||||||||||
Total | Bistro | Pei Wei | Services | |||||||||||||
Revenues | $ | 595,319 | $ | 498,609 | $ | 96,710 | $ | — | ||||||||
Cost of sales | 164,485 | 137,402 | 27,083 | — | ||||||||||||
Labor | 195,810 | 163,313 | 32,497 | — | ||||||||||||
Partner bonus expense, imputed | 1,376 | 1,284 | 92 | — | ||||||||||||
Operating | 89,617 | 73,901 | 15,716 | — | ||||||||||||
Occupancy | 32,223 | 26,450 | 5,773 | — | ||||||||||||
Restaurant operating profit | 111,808 | 96,259 | 15,549 | — | ||||||||||||
General & administrative | 29,407 | 10,420 | 4,802 | 14,185 | ||||||||||||
Depreciation & amortization | 25,911 | 21,174 | 4,183 | 554 | ||||||||||||
Preopening expenses | 6,542 | 4,160 | 2,382 | — | ||||||||||||
Partner investment expense | 3,326 | 2,637 | 689 | — | ||||||||||||
Income from operations | 46,622 | 57,868 | 3,493 | (14,739 | ) | |||||||||||
Interest income, net and other income | 1,435 | 281 | 10 | 1,144 | ||||||||||||
Minority interest | (6,426 | ) | (5,539 | ) | (887 | ) | — | |||||||||
Income before provision for income taxes | 41,631 | 52,610 | 2,616 | (13,595 | ) | |||||||||||
Provision for income taxes | (13,114 | ) | ||||||||||||||
Net income | $ | 28,517 | ||||||||||||||
Basic net income per share | $ | 1.09 | ||||||||||||||
Diluted net income per share | $ | 1.06 | ||||||||||||||
Shares used in calculation of basic EPS | 26,232 | |||||||||||||||
Shares used in calculation of diluted EPS | 26,981 |
Percentage of Revenues | ||||||||||||||||
Total | Bistro | Pei Wei | ||||||||||||||
Revenues | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
Cost of sales | 27.6 | % | 27.6 | % | 28.0 | % | ||||||||||
Labor | 32.9 | % | 32.8 | % | 33.6 | % | ||||||||||
Partner bonus expense, imputed | 0.2 | % | 0.3 | % | 0.1 | % | ||||||||||
Operating | 15.1 | % | 14.8 | % | 16.3 | % | ||||||||||
Occupancy | 5.4 | % | 5.3 | % | 6.0 | % | ||||||||||
Restaurant operating profit | 18.8 | % | 19.3 | % | 16.1 | % | ||||||||||
General & administrative | 4.9 | % | 2.1 | % | 5.0 | % | ||||||||||
Depreciation & amortization | 4.4 | % | 4.2 | % | 4.3 | % | ||||||||||
Preopening expenses | 1.1 | % | 0.8 | % | 2.5 | % | ||||||||||
Partner investment expense | 0.6 | % | 0.5 | % | 0.7 | % | ||||||||||
Income from operations | 7.8 | % | 11.6 | % | 3.6 | % | ||||||||||
Interest income, net and other income | 0.2 | % | 0.1 | % | 0.0 | % | ||||||||||
Minority interest | -1.1 | % | -1.1 | % | -0.9 | % | ||||||||||
Income before provision for income taxes | 7.0 | % | 10.6 | % | 2.7 | % | ||||||||||
Provision for income taxes | -2.2 | % | ||||||||||||||
Net income | 4.8 | % | ||||||||||||||
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 | 5 | 5 | |||||||||||||
Units under construction | 6 | |||||||||||||||
Units in development | ||||||||||||||||
Units closed | (1 | ) | (1 | ) | ||||||||||||
Total new unit development | 1 | 5 | 4 | 6 | ||||||||||||
Existing units | 115 | 116 | 121 | 125 | ||||||||||||
Total units | 116 | 121 | 125 | 131 | ||||||||||||
Pei Wei Asian Diner | ||||||||||||||||
1Q05 | 2Q05 | 3Q05 | 4Q05 | |||||||||||||
Units opened | 1 | 7 | 7 | 3 | ||||||||||||
Units under construction | 6 | |||||||||||||||
Units in development | ||||||||||||||||
Total new unit development | 1 | 7 | 7 | 9 | ||||||||||||
Existing units | 53 | 54 | 61 | 68 | ||||||||||||
Total units | 54 | 61 | 68 | 77 | ||||||||||||
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P.F. Chang’s China Bistro, Inc.
2005 Forecast
1Q05A | 2Q05A | 3Q05A | 4Q05E | 2005E | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shared | Shared | Shared | Shared | Shared | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bistro | Pei Wei | Svcs | Total | Bistro | Pei Wei | Svcs | Total | Bistro | Pei Wei | Svcs | Total | Bistro | Pei Wei | Svcs | Total | Bistro | Pei Wei | Svcs | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Store weeks | 1,492 | 698 | 2,190 | 1,531 | 746 | 2,277 | 1,594 | 844 | 2,438 | 1,649 | 952 | 2,601 | 6,266 | 3,240 | 9,506 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average weekly sales (000) | 109.6 | 43.9 | 88.7 | 108.7 | 42.4 | 87.0 | 105.8 | 40.8 | 83.3 | 106.2 | 40.7 | 82.2 | 107.5 | 41.8 | 85.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues (millions) | 163.6 | 30.6 | — | 194.2 | 166.4 | 31.6 | — | 198.1 | 168.6 | 34.4 | — | 203.0 | 175.1 | 38.7 | — | 213.9 | 673.7 | 135.5 | — | 809.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restaurant operating profit | 32.2 | 5.5 | — | 37.7 | 32.9 | 5.2 | — | 38.1 | 31.2 | 4.9 | — | 36.0 | 33.7 | 5.6 | — | 39.2 | 130.0 | 21.1 | — | 151.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General & administrative | 3.7 | 1.5 | 4.9 | 10.1 | 3.4 | 1.7 | 4.9 | 10.0 | 3.3 | 1.6 | 4.4 | 9.3 | 3.6 | 1.8 | 4.8 | 10.2 | 14.0 | 6.6 | 19.0 | 39.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation & amortization | 6.7 | 1.3 | 0.1 | 8.1 | 7.0 | 1.3 | 0.1 | 8.5 | 7.5 | 1.5 | 0.3 | 9.3 | 7.4 | 1.8 | 0.6 | 9.7 | 28.6 | 6.0 | 1.1 | 35.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preopening expenses | 1.0 | 0.4 | 1.3 | 1.5 | 1.0 | 2.5 | 1.7 | 1.1 | 2.7 | 1.7 | 0.8 | 2.5 | 5.9 | 3.2 | — | 9.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Partner investment expense | 0.2 | 0.1 | 0.3 | 1.1 | 0.5 | 1.6 | 1.3 | 0.2 | 1.5 | 1.4 | 0.6 | 2.0 | 4.0 | 1.3 | — | 5.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other income | (0.1 | ) | — | (0.3 | ) | (0.5 | ) | 0.0 | 0.0 | (0.4 | ) | (0.4 | ) | (0.1 | ) | — | (0.4 | ) | (0.5 | ) | — | — | (0.5 | ) | (0.5 | ) | (0.2 | ) | 0.0 | (1.6 | ) | (1.9 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Minority interest | 1.9 | 0.3 | 2.3 | 1.9 | 0.3 | 2.2 | 1.7 | 0.3 | 2.0 | 1.8 | 0.3 | 2.1 | 7.4 | 1.2 | — | 8.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before tax provision | 18.8 | 1.9 | (4.7 | ) | 16.0 | 17.8 | 0.4 | (4.6 | ) | 13.7 | 15.9 | 0.3 | (4.3 | ) | 11.9 | 17.8 | 0.3 | (4.9 | ) | 13.2 | 70.4 | 2.9 | (18.5 | ) | 54.8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax provision | 6.1 | 0.6 | (1.5 | ) | 5.2 | 5.8 | 0.1 | (1.5 | ) | 4.4 | 4.6 | 0.1 | (1.2 | ) | 3.4 | 5.6 | 0.1 | (1.5 | ) | 4.2 | 22.1 | 0.9 | (5.8 | ) | 17.2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | 12.7 | 1.3 | (3.2 | ) | 10.8 | 12.0 | 0.3 | (3.1 | ) | 9.2 | 11.3 | 0.2 | (3.0 | ) | 8.4 | 12.2 | 0.2 | (3.3 | ) | 9.0 | 48.2 | 1.9 | (12.7 | ) | 37.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
FD shares | 26.9 | 26.9 | 26.9 | 26.9 | 27.0 | 27.0 | 27.0 | 27.0 | 27.1 | 27.1 | 27.1 | 27.1 | 27.1 | 27.1 | 27.1 | 27.1 | 27.0 | 27.0 | 27.0 | 27.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EPS | $ | 0.47 | $ | 0.05 | $ | (0.12 | ) | $ | 0.40 | $ | 0.45 | $ | 0.01 | $ | (0.12 | ) | $ | 0.34 | $ | 0.42 | $ | 0.01 | $ | (0.11 | ) | $ | 0.31 | $ | 0.45 | $ | 0.01 | $ | (0.12 | ) | $ | 0.33 | $ | 1.79 | $ | 0.07 | $ | (0.47 | ) | $ | 1.39 | |||||||||||||||||||||||||||||||||||
Revenues | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Restaurant operating profit | 19.7 | % | 18.0 | % | 19.4 | % | 19.8 | % | 16.4 | % | 19.2 | % | 18.5 | % | 14.1 | % | 17.7 | % | 19.2 | % | 14.3 | % | 18.3 | % | 19.3 | % | 15.6 | % | 18.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
General & administrative | 2.3 | % | 5.0 | % | 5.2 | % | 2.1 | % | 5.3 | % | 5.1 | % | 1.9 | % | 4.6 | % | 4.6 | % | 2.1 | % | 4.7 | % | 4.8 | % | 2.1 | % | 4.9 | % | 4.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation & amortization | 4.1 | % | 4.3 | % | 4.2 | % | 4.2 | % | 4.2 | % | 4.3 | % | 4.4 | % | 4.5 | % | 4.6 | % | 4.2 | % | 4.6 | % | 4.6 | % | 4.2 | % | 4.4 | % | 4.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Preopening expenses | 0.6 | % | 1.2 | % | 0.7 | % | 0.9 | % | 3.0 | % | 1.3 | % | 1.0 | % | 3.1 | % | 1.3 | % | 1.0 | % | 2.0 | % | 1.2 | % | 0.9 | % | 2.3 | % | 1.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Partner investment expense | 0.1 | % | 0.2 | % | 0.1 | % | 0.7 | % | 1.4 | % | 0.8 | % | 0.8 | % | 0.5 | % | 0.7 | % | 0.8 | % | 1.5 | % | 0.9 | % | 0.6 | % | 0.9 | % | 0.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other income | -0.1 | % | 0.0 | % | -0.2 | % | 0.0 | % | 0.0 | % | -0.2 | % | -0.1 | % | 0.0 | % | -0.3 | % | 0.0 | % | 0.0 | % | -0.2 | % | 0.0 | % | 0.0 | % | -0.2 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Minority interest | 1.2 | % | 1.1 | % | 1.2 | % | 1.1 | % | 0.9 | % | 1.1 | % | 1.0 | % | 0.7 | % | 1.0 | % | 1.0 | % | 0.9 | % | 1.0 | % | 1.1 | % | 0.9 | % | 1.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Income before tax provision | 11.5 | % | 6.2 | % | 8.3 | % | 10.7 | % | 1.4 | % | 6.9 | % | 9.4 | % | 0.8 | % | 5.9 | % | 10.2 | % | 0.7 | % | 6.2 | % | 10.4 | % | 2.1 | % | 6.8 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Tax provision | 32.5 | % | 32.5 | % | 32.5 | % | 32.5 | % | 32.5 | % | 32.5 | % | 29.0 | % | 29.0 | % | 29.0 | % | 31.5 | % | 31.5 | % | 31.5 | % | 31.5 | % | 31.5 | % | 31.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 7.8 | % | 4.2 | % | 5.6 | % | 7.2 | % | 0.9 | % | 4.7 | % | 6.7 | % | 0.5 | % | 4.2 | % | 7.0 | % | 0.4 | % | 4.2 | % | 7.2 | % | 1.4 | % | 4.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Page 8 of 9
P.F. Chang’s China Bistro, Inc.
2005 Forecast vs 2004 Actual
1Q04 | 1Q05A | Change | 2Q04 | 2Q05A | Change | 3Q04 | 3Q05A | Change | 4Q04 | 4Q05E | Change | 2004 | 2005E | Change | ||||||||||||||||||||||||||||||||||||||||||||||
Store weeks | 1,761 | 2,190 | 24.4 | % | 1,896 | 2,277 | 20.1 | % | 1,979 | 2,438 | 23.2 | % | 2,295 | 2,601 | 13.3 | % | 7,931 | 9,506 | 19.9 | % | ||||||||||||||||||||||||||||||||||||||||
Average weekly sales (000) | 93.2 | 88.7 | -4.8 | % | 89.5 | 87.0 | -2.8 | % | 87.9 | 83.3 | -5.3 | % | 86.8 | 82.2 | -5.3 | % | 89.1 | 85.1 | -4.5 | % | ||||||||||||||||||||||||||||||||||||||||
Revenues (millions) | 164.1 | 194.2 | 18.4 | % | 169.6 | 198.1 | 16.8 | % | 174.0 | 203.0 | 16.7 | % | 199.3 | 213.9 | 7.3 | % | 707.0 | 809.2 | 14.5 | % | ||||||||||||||||||||||||||||||||||||||||
Restaurant operating profit | 31.1 | 37.7 | 32.1 | 38.1 | 34.3 | 36.0 | 38.2 | 39.2 | 135.7 | 151.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||
General & administrative | 7.9 | 10.1 | 8.3 | 10.0 | 8.9 | 9.3 | 8.7 | 10.2 | 33.8 | 39.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation & amortization | 6.5 | 8.1 | 7.0 | 8.5 | 7.3 | 9.3 | 8.4 | 9.7 | 29.2 | 35.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Preopening expenses | 2.4 | 1.3 | 1.4 | 2.5 | 2.0 | 2.7 | 2.2 | 2.5 | 8.0 | 9.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Partner investment expense | 2.0 | 0.3 | 0.9 | 1.6 | 1.7 | 1.5 | 1.6 | 2.0 | 6.2 | 5.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other income | (0.1 | ) | (0.5 | ) | (0.1 | ) | (0.4 | ) | (0.1 | ) | (0.5 | ) | (0.3 | ) | (0.5 | ) | (0.6 | ) | (1.9 | ) | ||||||||||||||||||||||||||||||||||||||||
Minority interest | 2.3 | 2.3 | 2.4 | 2.2 | 2.6 | 2.0 | 2.8 | 2.1 | 10.1 | 8.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Income before tax provision | 10.1 | 16.0 | 12.2 | 13.7 | 11.9 | 11.9 | 14.8 | 13.2 | 49.0 | 54.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Tax provision | 3.1 | 5.2 | 3.8 | 4.4 | 3.7 | 3.4 | 4.6 | 4.2 | 15.2 | 17.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 7.0 | 10.8 | 54.7 | % | 8.4 | 9.2 | 9.2 | % | 8.2 | 8.4 | 3.1 | % | 10.2 | 9.0 | -11.2 | % | 33.8 | 37.5 | 11.0 | % | ||||||||||||||||||||||||||||||||||||||||
FD shares | 26.4 | 26.9 | 26.5 | 27.0 | 26.6 | 27.1 | 26.8 | 27.1 | 26.6 | 27.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||
EPS | $ | 0.27 | $ | 0.40 | 51.8 | % | $ | 0.32 | $ | 0.34 | 7.3 | % | $ | 0.31 | $ | 0.31 | 1.3 | % | $ | 0.38 | $ | 0.33 | -12.3 | % | $ | 1.27 | $ | 1.39 | 9.2 | % | ||||||||||||||||||||||||||||||
Legal settlement (net of tax) | 0.5 | — | — | — | — | — | — | — | 0.5 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Prior year partner investment expense (net of tax) | 7.1 | — | — | — | — | — | — | — | 7.1 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) after special charges | (0.7 | ) | — | — | — | — | — | — | — | 26.1 | — | |||||||||||||||||||||||||||||||||||||||||||||||||
EPS (after special charges) | $ | (0.03 | ) | $ | 0.40 | $ | 0.32 | $ | 0.34 | $ | 0.31 | $ | 0.31 | $ | 0.38 | $ | 0.33 | $ | 0.98 | $ | 1.39 | |||||||||||||||||||||||||||||||||||||||
Revenues | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||||||||||||||||||||||||||||
Restaurant operating profit | 19.0 | % | 19.4 | % | 18.9 | % | 19.2 | % | 19.7 | % | 17.7 | % | 19.2 | % | 18.3 | % | 19.2 | % | 18.7 | % | ||||||||||||||||||||||||||||||||||||||||
General & administrative | 4.8 | % | 5.2 | % | 4.9 | % | 5.1 | % | 5.1 | % | 4.6 | % | 4.4 | % | 4.8 | % | 4.8 | % | 4.9 | % | ||||||||||||||||||||||||||||||||||||||||
Depreciation & amortization | 4.0 | % | 4.2 | % | 4.1 | % | 4.3 | % | 4.2 | % | 4.6 | % | 4.2 | % | 4.6 | % | 4.1 | % | 4.4 | % | ||||||||||||||||||||||||||||||||||||||||
Preopening expenses | 1.5 | % | 0.7 | % | 0.8 | % | 1.3 | % | 1.1 | % | 1.3 | % | 1.1 | % | 1.2 | % | 1.1 | % | 1.1 | % | ||||||||||||||||||||||||||||||||||||||||
Partner investment expense | 1.2 | % | 0.1 | % | 0.5 | % | 0.8 | % | 1.0 | % | 0.7 | % | 0.8 | % | 0.9 | % | 0.9 | % | 0.7 | % | ||||||||||||||||||||||||||||||||||||||||
Other income | -0.1 | % | -0.2 | % | -0.1 | % | -0.2 | % | -0.1 | % | -0.3 | % | -0.2 | % | -0.2 | % | -0.1 | % | -0.2 | % | ||||||||||||||||||||||||||||||||||||||||
Minority interest | 1.4 | % | 1.2 | % | 1.4 | % | 1.1 | % | 1.5 | % | 1.0 | % | 1.4 | % | 1.0 | % | 1.4 | % | 1.1 | % | ||||||||||||||||||||||||||||||||||||||||
Income before tax provision and special charges | 6.2 | % | 8.3 | % | 7.2 | % | 6.9 | % | 6.8 | % | 5.9 | % | 7.4 | % | 6.2 | % | 6.9 | % | 6.8 | % | ||||||||||||||||||||||||||||||||||||||||
Tax provision before special charges | 31.5 | % | 32.5 | % | 31.5 | % | 32.5 | % | 31.5 | % | 29.0 | % | 31.5 | % | 31.5 | % | 31.5 | % | 31.5 | % | ||||||||||||||||||||||||||||||||||||||||
Net income before special charges | 4.3 | % | 5.6 | % | 5.0 | % | 4.7 | % | 4.7 | % | 4.2 | % | 5.1 | % | 4.2 | % | 4.8 | % | 4.6 | % | ||||||||||||||||||||||||||||||||||||||||
Page 9 of 9