Exhibit 99.1
P.F. CHANG’S CHINA BISTRO, INC.
P.F. CHANG’S EARNS $0.39 PER SHARE
SCOTTSDALE, ARIZONA, (July 23, 2008) — P.F. Chang’s China Bistro, Inc. (NASDAQ: PFCB) today reported consolidated net income of $9.4 million for the second quarter ended June 29, 2008 compared to $9.3 million for the second quarter of the prior year. Net income per diluted share for the second quarter of fiscal 2008 was $0.39 and the prior year was $0.36.
(000 except per share data) | 2Q08 | 2Q07 | ||||||
Revenues | $ | 304,079 | $ | 266,823 | ||||
Income from continuing operations | $ | 9,631 | $ | 9,630 | ||||
Net income | $ | 9,398 | $ | 9,277 | ||||
Income from continuing operations per diluted share | $ | 0.40 | $ | 0.37 | ||||
Net income per diluted share | $ | 0.39 | $ | 0.36 | ||||
Weighted average shares — diluted | 24,247 | 26,129 |
For the second quarter of 2008, consolidated revenues were $304.1 million compared to $266.8 million for the second quarter of 2007. Sales at company-owned P.F. Chang’s China Bistro restaurants accounted for $231.8 million of consolidated revenues and sales at the Company’s Pei Wei Asian Diner restaurants accounted for $72.1 million of consolidated revenues.
For the 13 weeks ended June 29, 2008, comparable store sales decreased 2.3% at the Bistro as a reduction in overall guest traffic more than offset the benefit of a 4% to 5% average check increase reflecting the net impact of price increases and menu mix changes. Comparable store sales at the Bistro decreased 2.5%, 1.4%, and 2.9% in April, May and June, respectively.
For the 13 weeks ended June 29, 2008, comparable store sales decreased 3.2% at Pei Wei as a reduction in overall guest traffic more than offset the benefit of a slightly higher average check reflecting the net impact of price increases and menu mix changes. Comparable store sales at Pei Wei decreased 2.2%, 4.2%, and 3.5% for April, May and June, respectively.
Net income for both years includes a loss from discontinued operations related to the Company’s previously announced decision to exit operation of its Taneko business. The Company has reached an agreement to sell Taneko’s long-lived assets and the transaction is expected to close on August 1, 2008.
During the second quarter of 2008, the Company opened five new Bistro restaurants and four new Pei Wei restaurants.
2008 Expectations
“Revenues at both concepts for the second quarter were slightly below our expectations and we continue to believe that consumers will remain under economic pressure for the rest of the year”, noted Rick Federico, CEO. “Despite our lower than anticipated revenue performance, we are pleased with our second quarter earnings which reflect better than anticipated operating results, as we continued to focus on improving operating margins and general & administrative costs, both of which were more favorable than expected during the quarter. We continue to remain optimistic about our business and given our better than expected results for the past two quarters, we are modestly increasing our earnings expectations for the year from a range of $1.34 — $1.40 per share to a range of $1.36- $1.42 per share.”
The Company plans to open a total of 17 new Bistro restaurants and 25 new Pei Wei restaurants during 2008 and expects full year fiscal 2008 consolidated revenues to increase 12 to 13 percent.
Page 1 of 10
2009 Development
The Company has reduced its planned 2009 development and currently expects to open 12 to 14 new Bistro restaurants and 6 to 10 new Pei Wei restaurants during fiscal 2009 primarily reflecting the current macroeconomic environment.
Share Repurchase Program
During the second quarter of fiscal 2008, the Company repurchased a total of 0.4 million shares of common stock for $10.0 million at an average price of $25.38 using cash on hand. The Company’s current remaining share repurchase authorization was $40.0 million at June 29, 2008.
The Company is hosting a conference call today at 1:00 pm ET in which management will provide further details on the second quarter results. A webcast of the call can be accessed through the company’s website at http://www.pfcb.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.
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. Because these costs are solely related to expansion of the Company’s business, they make an accurate assessment of the health of its ongoing operations more difficult and are therefore excluded. Additionally, general and administrative expenses are only included in the Company’s consolidated financial presentation as these costs relate to support of both restaurant concepts and are generally not specifically identifiable to individual restaurant operations. As the Company’s expansion is funded entirely from its ongoing restaurant operations, restaurant operating income is a primary 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 6 through 8 of this press release for a reconciliation of restaurant operating income to the most directly comparable GAAP measure, income from operations.
Page 2 of 10
Note with respect to forward looking statements
The statements contained in this press release that are not purely historical, including the Company’s estimates of its earnings, revenues and anticipated new restaurants 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; customer acceptance of new concepts; 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.
Contact: P.F. Chang’s China Bistro, Inc. | (480) 888-3000 | |||||
Media: | Laura Cherry | laura.cherry@pfcb.com | ||||
Investor: | Mark Mumford | mark.mumford@pfcb.com |
Page 3 of 10
P.F. Chang’s China Bistro, Inc.
Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
(In thousands, except per share amounts)
(Unaudited)
13 Weeks Ended | ||||||||
June 29, | July 1, | |||||||
2008 | 2007 | |||||||
Revenues | $ | 304,079 | $ | 266,823 | ||||
Costs and expenses: | ||||||||
Cost of sales | 82,869 | 72,766 | ||||||
Labor | 101,109 | 90,307 | ||||||
Operating | 49,907 | 42,198 | ||||||
Occupancy | 17,836 | 15,561 | ||||||
General & administrative | 19,128 | 15,684 | ||||||
Depreciation & amortization | 17,431 | 13,500 | ||||||
Preopening expense | 1,809 | 3,296 | ||||||
Partner investment expense | (500 | ) | (468 | ) | ||||
Total costs and expenses | 289,589 | 252,844 | ||||||
Income from operations | 14,490 | 13,979 | ||||||
Interest and other income (expense), net | (949 | ) | 179 | |||||
Minority interest | (487 | ) | (1,121 | ) | ||||
Income from continuing operations before provision for income taxes | 13,054 | 13,037 | ||||||
Provision for income taxes | (3,423 | ) | (3,407 | ) | ||||
Income from continuing operations | 9,631 | 9,630 | ||||||
Loss from discontinued operations, net of tax | (233 | ) | (353 | ) | ||||
Net income | $ | 9,398 | $ | 9,277 | ||||
Basic income per share: | ||||||||
Income from continuing operations | $ | 0.40 | $ | 0.37 | ||||
Loss from discontinued operations, net of tax | (0.01 | ) | (0.01 | ) | ||||
Net income | $ | 0.39 | $ | 0.36 | ||||
Diluted income per share: | ||||||||
Income from continuing operations | $ | 0.40 | $ | 0.37 | ||||
Loss from discontinued operations, net of tax | (0.01 | ) | (0.01 | ) | ||||
Net income | $ | 0.39 | $ | 0.36 | ||||
Weighted average shares used in computation — basic | 23,898 | 25,708 | ||||||
Weighted average shares used in computation — diluted | 24,247 | 26,129 | ||||||
Page 4 of 10
P.F. Chang’s China Bistro, Inc.
Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
(In thousands, except per share amounts)
(Unaudited)
26 Weeks Ended | ||||||||
June 29, | July 1, | |||||||
2008 | 2007 | |||||||
Revenues | $ | 612,659 | $ | 530,507 | ||||
Costs and expenses: | ||||||||
Cost of sales | 167,173 | 145,398 | ||||||
Labor | 205,667 | 179,170 | ||||||
Operating | 98,569 | 83,264 | ||||||
Occupancy | 35,755 | 30,414 | ||||||
General & administrative | 37,649 | 32,178 | ||||||
Depreciation & amortization | 34,083 | 26,078 | ||||||
Preopening expense | 4,633 | 5,835 | ||||||
Partner investment expense | (89 | ) | (1,869 | ) | ||||
Total costs and expenses | 583,440 | 500,468 | ||||||
Income from operations | 29,219 | 30,039 | ||||||
Interest and other income (expense), net | (1,883 | ) | 522 | |||||
Minority interest | (1,192 | ) | (2,768 | ) | ||||
Income from continuing operations before provision for income taxes | 26,144 | 27,793 | ||||||
Provision for income taxes | (6,849 | ) | (7,405 | ) | ||||
Income from continuing operations | 19,295 | 20,388 | ||||||
Loss from discontinued operations, net of tax | (276 | ) | (646 | ) | ||||
Net income | $ | 19,019 | $ | 19,742 | ||||
Basic income per share: | ||||||||
Income from continuing operations | $ | 0.81 | $ | 0.80 | ||||
Loss from discontinued operations, net of tax | (0.02 | ) | (0.03 | ) | ||||
Net income | $ | 0.79 | $ | 0.77 | ||||
Diluted income per share: | ||||||||
Income from continuing operations | $ | 0.79 | $ | 0.78 | ||||
Loss from discontinued operations, net of tax | (0.01 | ) | (0.02 | ) | ||||
Net income | $ | 0.78 | $ | 0.76 | ||||
Weighted average shares used in computation — basic | 23,935 | 25,598 | ||||||
Weighted average shares used in computation — diluted | 24,271 | 26,088 | ||||||
Page 5 of 10
P.F. Chang’s China Bistro, Inc.
Supplemental Financial Information
2006 | 1Q07 | 2Q07 | 3Q07 | 4Q07 | 2007 | 1Q08 | 2Q08 | YTD Q2 2008 | ||||||||||||||||||||||||||||
Units | 259 | 269 | 283 | 299 | 316 | 316 | 332 | 341 | 341 | |||||||||||||||||||||||||||
Sales weeks | 11,848 | 3,425 | 3,588 | 3,776 | 4,060 | 14,849 | 4,252 | 4,386 | 8,638 | |||||||||||||||||||||||||||
AWS | 79,074 | 76,988 | 74,365 | 71,579 | 71,905 | 73,589 | 72,573 | 69,329 | 70,926 | |||||||||||||||||||||||||||
Revenues | 936,864 | 263,684 | 266,823 | 270,282 | 291,933 | 1,092,722 | 308,580 | 304,079 | 612,659 | |||||||||||||||||||||||||||
Operating costs | ||||||||||||||||||||||||||||||||||||
Cost of sales | 256,259 | 72,632 | 72,766 | 73,865 | 80,450 | 299,713 | 84,304 | 82,869 | 167,173 | |||||||||||||||||||||||||||
Labor | 309,774 | 88,863 | 90,307 | 91,789 | 97,100 | 368,059 | 104,558 | 101,109 | 205,667 | |||||||||||||||||||||||||||
Operating | 146,247 | 41,066 | 42,198 | 43,816 | 46,913 | 173,993 | 48,662 | 49,907 | 98,569 | |||||||||||||||||||||||||||
Occupancy | 52,408 | 14,853 | 15,561 | 15,970 | 16,727 | 63,111 | 17,919 | 17,836 | 35,755 | |||||||||||||||||||||||||||
Minority interest | 8,116 | 1,647 | 1,121 | 808 | 593 | 4,169 | 705 | 487 | 1,192 | |||||||||||||||||||||||||||
Depreciation & amortization | 44,793 | 12,578 | 13,500 | 14,749 | 16,005 | 56,832 | 16,652 | 17,431 | 34,083 | |||||||||||||||||||||||||||
Restaurant operating income | 119,267 | 32,045 | 31,370 | 29,285 | 34,145 | 126,845 | 35,780 | 34,440 | 70,220 | |||||||||||||||||||||||||||
Development costs | ||||||||||||||||||||||||||||||||||||
Preopening expenses | 12,286 | 2,539 | 3,296 | 4,939 | 4,209 | 14,983 | 2,824 | 1,809 | 4,633 | |||||||||||||||||||||||||||
Partner investment expense | 4,371 | (1,401 | ) | (468 | ) | (71 | ) | (72 | ) | (2,012 | ) | 411 | (500 | ) | (89 | ) | ||||||||||||||||||||
Other expenses | ||||||||||||||||||||||||||||||||||||
General and administrative (1) | 56,030 | 16,494 | 15,684 | 17,186 | 17,604 | 66,968 | 18,521 | 19,128 | 37,649 | |||||||||||||||||||||||||||
Interest and other (income) expense, net | (1,315 | ) | (343 | ) | (179 | ) | 10 | 612 | 100 | 934 | 949 | 1,883 | ||||||||||||||||||||||||
Provision for income taxes | 13,712 | 3,998 | 3,407 | 1,618 | 2,540 | 11,563 | 3,398 | 3,451 | 6,849 | |||||||||||||||||||||||||||
Income from continuing operations | 34,183 | 10,758 | 9,630 | 5,603 | 9,252 | 35,243 | 9,692 | 9,603 | 19,295 | |||||||||||||||||||||||||||
Loss from discontinued operations, net of tax | (930 | ) | (293 | ) | (353 | ) | (328 | ) | (2,206 | ) | (3,180 | ) | (43 | ) | (233 | ) | (276 | ) | ||||||||||||||||||
Net income | 33,253 | 10,465 | 9,277 | 5,275 | 7,046 | 32,063 | 9,649 | 9,370 | 19,019 | |||||||||||||||||||||||||||
Income from continuing operations per FDS | $ | 1.28 | $ | 0.41 | $ | 0.37 | $ | 0.21 | $ | 0.37 | $ | 1.36 | $ | 0.40 | $ | 0.40 | $ | 0.79 | ||||||||||||||||||
Fully diluted shares (FDS) | 26,737 | 26,046 | 26,129 | 26,105 | 25,257 | 25,899 | 24,295 | 24,247 | 24,271 | |||||||||||||||||||||||||||
Revenues | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||||||
Cost of sales | 27.4 | % | 27.5 | % | 27.3 | % | 27.3 | % | 27.6 | % | 27.4 | % | 27.3 | % | 27.3 | % | 27.3 | % | ||||||||||||||||||
Labor | 33.1 | % | 33.7 | % | 33.8 | % | 34.0 | % | 33.3 | % | 33.7 | % | 33.9 | % | 33.3 | % | 33.6 | % | ||||||||||||||||||
Operating | 15.6 | % | 15.6 | % | 15.8 | % | 16.2 | % | 16.1 | % | 15.9 | % | 15.8 | % | 16.4 | % | 16.1 | % | ||||||||||||||||||
Occupancy | 5.6 | % | 5.6 | % | 5.8 | % | 5.9 | % | 5.7 | % | 5.8 | % | 5.8 | % | 5.9 | % | 5.8 | % | ||||||||||||||||||
Minority interest | 0.9 | % | 0.6 | % | 0.4 | % | 0.3 | % | 0.2 | % | 0.4 | % | 0.2 | % | 0.2 | % | 0.2 | % | ||||||||||||||||||
Depreciation & amortization | 4.8 | % | 4.8 | % | 5.1 | % | 5.5 | % | 5.5 | % | 5.2 | % | 5.4 | % | 5.7 | % | 5.6 | % | ||||||||||||||||||
Restaurant operating income | 12.7 | % | 12.2 | % | 11.8 | % | 10.8 | % | 11.7 | % | 11.6 | % | 11.6 | % | 11.3 | % | 11.5 | % | ||||||||||||||||||
Preopening expenses | 1.3 | % | 1.0 | % | 1.2 | % | 1.8 | % | 1.4 | % | 1.4 | % | 0.9 | % | 0.6 | % | 0.8 | % | ||||||||||||||||||
Partner investment expense | 0.5 | % | (0.5 | %) | (0.2 | %) | (0.0 | %) | (0.0 | %) | (0.2 | %) | 0.1 | % | (0.2 | %) | (0.0 | %) | ||||||||||||||||||
General and administrative (1) | 6.0 | % | 6.3 | % | 5.9 | % | 6.4 | % | 6.0 | % | 6.1 | % | 6.0 | % | 6.3 | % | 6.1 | % | ||||||||||||||||||
Interest and other (income) expense, net | (0.1 | %) | (0.1 | %) | (0.1 | %) | 0.0 | % | 0.2 | % | 0.0 | % | 0.3 | % | 0.3 | % | 0.3 | % | ||||||||||||||||||
Provision for income taxes | 1.5 | % | 1.5 | % | 1.3 | % | 0.6 | % | 0.9 | % | 1.1 | % | 1.1 | % | 1.1 | % | 1.1 | % | ||||||||||||||||||
Income from continuing operations | 3.6 | % | 4.1 | % | 3.6 | % | 2.1 | % | 3.2 | % | 3.2 | % | 3.1 | % | 3.2 | % | 3.1 | % | ||||||||||||||||||
Loss from discontinued operations, net of tax | (0.1 | %) | (0.1 | %) | (0.1 | %) | (0.1 | %) | (0.8 | %) | (0.3 | %) | (0.0 | %) | (0.1 | %) | (0.0 | %) | ||||||||||||||||||
Net income | 3.5 | % | 4.0 | % | 3.5 | % | 2.0 | % | 2.4 | % | 2.9 | % | 3.1 | % | 3.1 | % | 3.1 | % | ||||||||||||||||||
Reconciliation of Non-GAAP Financial Information to GAAP measures: | ||||||||||||||||||||||||||||||||||||
Restaurant operating income | 119,267 | 32,045 | 31,370 | 29,285 | 34,145 | 126,845 | 35,780 | 34,440 | 70,220 | |||||||||||||||||||||||||||
Add: Minority interest | 8,116 | 1,647 | 1,121 | 808 | 593 | 4,169 | 705 | 487 | 1,192 | |||||||||||||||||||||||||||
Less: General and administrative (1) | (56,030 | ) | (16,494 | ) | (15,684 | ) | (17,186 | ) | (17,604 | ) | (66,968 | ) | (18,521 | ) | (19,128 | ) | (37,649 | ) | ||||||||||||||||||
Less: Preopening expenses | (12,286 | ) | (2,539 | ) | (3,296 | ) | (4,939 | ) | (4,209 | ) | (14,983 | ) | (2,824 | ) | (1,809 | ) | (4,633 | ) | ||||||||||||||||||
Less: Partner investment expense | (4,371 | ) | 1,401 | 468 | 71 | 72 | 2,012 | (411 | ) | 500 | 89 | |||||||||||||||||||||||||
Income from operations | 54,696 | 16,060 | 13,979 | 8,039 | 12,997 | 51,075 | 14,729 | 14,490 | 29,219 | |||||||||||||||||||||||||||
Note : Consolidated results include the impact of Shared Services and Other as well as the Bistro and Pei Wei concepts
(1) | Consolidated general and administrative expenses includes the costs of supporting the Company, including all concepts |
Page 6 of 10
Concept: P.F. Chang’s China Bistro
Supplemental Financial Information
2006 | 1Q07 | 2Q07 | 3Q07 | 4Q07 | 2007 | 1Q08 | 2Q08 | YTD Q2 2008 | ||||||||||||||||||||||||||||
Units | 152 | 153 | 157 | 162 | 172 | 172 | 177 | 182 | 182 | |||||||||||||||||||||||||||
Sales weeks | 7,187 | 1,979 | 2,028 | 2,078 | 2,204 | 8,289 | 2,275 | 2,330 | 4,605 | |||||||||||||||||||||||||||
AWS | 105,265 | 104,592 | 102,615 | 100,325 | 102,514 | 102,486 | 103,763 | 99,502 | 101,607 | |||||||||||||||||||||||||||
Revenues | 756,634 | 207,028 | 208,174 | 208,544 | 225,997 | 849,743 | 236,089 | 231,972 | 468,061 | |||||||||||||||||||||||||||
Operating costs | ||||||||||||||||||||||||||||||||||||
Cost of sales | 206,567 | 56,781 | 56,696 | 56,943 | 62,158 | 232,578 | 64,410 | 62,999 | 127,409 | |||||||||||||||||||||||||||
Labor | 247,097 | 69,312 | 69,827 | 69,946 | 73,834 | 282,919 | 79,318 | 76,153 | 155,471 | |||||||||||||||||||||||||||
Operating | 115,465 | 31,684 | 32,194 | 32,981 | 35,004 | 131,863 | 36,324 | 36,603 | 72,927 | |||||||||||||||||||||||||||
Occupancy | 40,683 | 11,217 | 11,598 | 11,739 | 12,505 | 47,059 | 12,981 | 12,730 | 25,711 | |||||||||||||||||||||||||||
Minority interest | 6,993 | 1,333 | 837 | 599 | 582 | 3,351 | 497 | 370 | 867 | |||||||||||||||||||||||||||
Depreciation & amortization | 34,451 | 9,483 | 10,054 | 10,861 | 11,896 | 42,294 | 12,265 | 12,794 | 25,059 | |||||||||||||||||||||||||||
Restaurant operating income | 105,378 | 27,218 | 26,968 | 25,475 | 30,018 | 109,679 | 30,294 | 30,323 | 60,617 | |||||||||||||||||||||||||||
Revenues | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||||||
Cost of sales | 27.3 | % | 27.4 | % | 27.2 | % | 27.3 | % | 27.5 | % | 27.4 | % | 27.3 | % | 27.2 | % | 27.2 | % | ||||||||||||||||||
Labor | 32.7 | % | 33.5 | % | 33.5 | % | 33.5 | % | 32.7 | % | 33.3 | % | 33.6 | % | 32.8 | % | 33.2 | % | ||||||||||||||||||
Operating | 15.3 | % | 15.3 | % | 15.5 | % | 15.8 | % | 15.5 | % | 15.5 | % | 15.4 | % | 15.8 | % | 15.6 | % | ||||||||||||||||||
Occupancy | 5.4 | % | 5.4 | % | 5.6 | % | 5.6 | % | 5.5 | % | 5.5 | % | 5.5 | % | 5.5 | % | 5.5 | % | ||||||||||||||||||
Minority interest | 0.9 | % | 0.6 | % | 0.4 | % | 0.3 | % | 0.3 | % | 0.4 | % | 0.2 | % | 0.2 | % | 0.2 | % | ||||||||||||||||||
Depreciation & amortization | 4.6 | % | 4.6 | % | 4.8 | % | 5.2 | % | 5.3 | % | 5.0 | % | 5.2 | % | 5.5 | % | 5.4 | % | ||||||||||||||||||
Restaurant operating income | 13.9 | % | 13.1 | % | 13.0 | % | 12.2 | % | 13.3 | % | 12.9 | % | 12.8 | % | 13.1 | % | 13.0 | % | ||||||||||||||||||
Reconciliation of Non-GAAP Financial Information to GAAP measures: | ||||||||||||||||||||||||||||||||||||
Restaurant operating income | 105,378 | 27,218 | 26,968 | 25,475 | 30,018 | 109,679 | 30,294 | 30,323 | 60,617 | |||||||||||||||||||||||||||
Add: Minority interest | 6,993 | 1,333 | 837 | 599 | 582 | 3,351 | 497 | 370 | 867 | |||||||||||||||||||||||||||
Less: Preopening expenses | (8,004 | ) | (1,256 | ) | (1,790 | ) | (2,974 | ) | (2,992 | ) | (9,012 | ) | (1,729 | ) | (1,271 | ) | (3,000 | ) | ||||||||||||||||||
Less: Partner investment expense | (3,475 | ) | 1,926 | 753 | 433 | 246 | 3,358 | 245 | 500 | 745 | ||||||||||||||||||||||||||
Income from operations | 100,892 | 29,221 | 26,768 | 23,533 | 27,854 | 107,376 | 29,307 | 29,922 | 59,229 | |||||||||||||||||||||||||||
Note: General and administrative expenses are reflected in the Company’s consolidated results
Page 7 of 10
Concept: Pei Wei Asian Diner
Supplemental Financial Information
2006 | 1Q07 | 2Q07 | 3Q07 | 4Q07 | 2007 | 1Q08 | 2Q08 | YTD Q2 2008 | ||||||||||||||||||||||||||||
Units | 107 | 116 | 126 | 137 | 144 | 144 | 155 | 159 | 159 | |||||||||||||||||||||||||||
Sales weeks | 4,661 | 1,446 | 1,560 | 1,698 | 1,856 | 6,560 | 1,977 | 2,056 | 4,033 | |||||||||||||||||||||||||||
AWS | 38,668 | 39,177 | 37,592 | 36,359 | 35,523 | 37,037 | 36,667 | 35,071 | 35,854 | |||||||||||||||||||||||||||
Revenues | 180,230 | 56,656 | 58,649 | 61,738 | 65,936 | 242,979 | 72,491 | 72,107 | 144,598 | |||||||||||||||||||||||||||
Operating costs | ||||||||||||||||||||||||||||||||||||
Cost of sales | 49,692 | 15,851 | 16,070 | 16,922 | 18,292 | 67,135 | 19,894 | 19,870 | 39,764 | |||||||||||||||||||||||||||
Labor | 62,677 | 19,551 | 20,480 | 21,843 | 23,266 | 85,140 | 25,240 | 24,956 | 50,196 | |||||||||||||||||||||||||||
Operating | 30,782 | 9,382 | 10,004 | 10,835 | 11,909 | 42,130 | 12,338 | 13,304 | 25,642 | |||||||||||||||||||||||||||
Occupancy | 11,725 | 3,636 | 3,963 | 4,231 | 4,222 | 16,052 | 4,938 | 5,106 | 10,044 | |||||||||||||||||||||||||||
Minority interest | 1,123 | 314 | 284 | 209 | 11 | 818 | 208 | 117 | 325 | |||||||||||||||||||||||||||
Depreciation & amortization | 9,205 | 2,823 | 3,164 | 3,417 | 3,718 | 13,122 | 4,056 | 4,276 | 8,332 | |||||||||||||||||||||||||||
Restaurant operating income | 15,026 | 5,099 | 4,684 | 4,281 | 4,518 | 18,582 | 5,817 | 4,478 | 10,295 | |||||||||||||||||||||||||||
Revenues | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||||||
Cost of sales | 27.6 | % | 28.0 | % | 27.4 | % | 27.4 | % | 27.7 | % | 27.6 | % | 27.4 | % | 27.6 | % | 27.5 | % | ||||||||||||||||||
Labor | 34.8 | % | 34.5 | % | 34.9 | % | 35.4 | % | 35.3 | % | 35.0 | % | 34.8 | % | 34.6 | % | 34.7 | % | ||||||||||||||||||
Operating | 17.1 | % | 16.6 | % | 17.1 | % | 17.5 | % | 18.1 | % | 17.3 | % | 17.0 | % | 18.5 | % | 17.7 | % | ||||||||||||||||||
Occupancy | 6.5 | % | 6.4 | % | 6.8 | % | 6.9 | % | 6.4 | % | 6.6 | % | 6.8 | % | 7.1 | % | 6.9 | % | ||||||||||||||||||
Minority interest | 0.6 | % | 0.6 | % | 0.5 | % | 0.3 | % | 0.0 | % | 0.3 | % | 0.3 | % | 0.2 | % | 0.2 | % | ||||||||||||||||||
Depreciation & amortization | 5.1 | % | 5.0 | % | 5.4 | % | 5.5 | % | 5.6 | % | 5.4 | % | 5.6 | % | 5.9 | % | 5.8 | % | ||||||||||||||||||
Restaurant operating income | 8.3 | % | 9.0 | % | 8.0 | % | 6.9 | % | 6.9 | % | 7.6 | % | 8.0 | % | 6.2 | % | 7.1 | % | ||||||||||||||||||
Reconciliation of Non-GAAP Financial Information to GAAP measures: | ||||||||||||||||||||||||||||||||||||
Restaurant operating income | 15,026 | 5,099 | 4,684 | 4,281 | 4,518 | 18,582 | 5,817 | 4,478 | 10,295 | |||||||||||||||||||||||||||
Add: Minority interest | 1,123 | 314 | 284 | 209 | 11 | 818 | 208 | 117 | 325 | |||||||||||||||||||||||||||
Less: Preopening expenses | (4,283 | ) | (1,283 | ) | (1,506 | ) | (1,965 | ) | (1,217 | ) | (5,971 | ) | (1,095 | ) | (538 | ) | (1,633 | ) | ||||||||||||||||||
Less: Partner investment expense | (896 | ) | (525 | ) | (285 | ) | (362 | ) | (174 | ) | (1,346 | ) | (656 | ) | — | (656 | ) | |||||||||||||||||||
Income from operations | 10,970 | 3,605 | 3,177 | 2,163 | 3,138 | 12,083 | 4,274 | 4,057 | 8,331 | |||||||||||||||||||||||||||
Note: | General and administrative expenses are reflected in the Company’s consolidated results |
Page 8 of 10
P.F. Chang’s China Bistro
Supplemental Sales Information (Company Owned)
Supplemental Sales Information (Company Owned)
Year of Unit Opening (1)
Pre-2001 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | Total | |||||||||||||||||||||||||||||||
Units | 51 | 13 | 14 | 18 | 18 | 18 | 20 | 20 | 10 | 182 | ||||||||||||||||||||||||||||||
Sales (000) | ||||||||||||||||||||||||||||||||||||||||
1Q08 | 77,380 | 19,067 | 18,306 | 25,155 | 20,281 | 21,118 | 23,785 | 26,976 | 3,992 | 236,060 | ||||||||||||||||||||||||||||||
2Q08 | 74,274 | 18,060 | 17,363 | 24,390 | 19,911 | 20,332 | 23,076 | 25,122 | 9,312 | 231,840 | ||||||||||||||||||||||||||||||
2008 | 151,654 | 37,127 | 35,669 | 49,545 | 40,192 | 41,450 | 46,861 | 52,098 | 13,304 | 467,900 | ||||||||||||||||||||||||||||||
Average Weekly Sales (AWS) | ||||||||||||||||||||||||||||||||||||||||
1Q08 | 116,712 | 112,823 | 100,580 | 107,502 | 86,670 | 90,248 | 91,482 | 103,752 | 102,364 | 103,763 | ||||||||||||||||||||||||||||||
2Q08 | 112,028 | 106,861 | 95,399 | 104,231 | 85,088 | 86,890 | 88,754 | 96,623 | 99,059 | 99,502 | ||||||||||||||||||||||||||||||
2008 | 114,370 | 109,842 | 97,990 | 105,867 | 85,879 | 88,569 | 90,118 | 100,187 | 100,028 | 101,607 | ||||||||||||||||||||||||||||||
Year-Over-Year Change in AWS (2) | ||||||||||||||||||||||||||||||||||||||||
1Q08 | -0.4 | % | 1.4 | % | 0.6 | % | 0.8 | % | 0.6 | % | 0.2 | % | -7.9 | % | 3.5 | % | — | -0.8 | % | |||||||||||||||||||||
2Q08 | -3.0 | % | -0.5 | % | 0.0 | % | -0.5 | % | -2.8 | % | -2.1 | % | -4.9 | % | -13.9 | % | — | -2.7 | % | |||||||||||||||||||||
2008 | -1.7 | % | 0.5 | % | 0.3 | % | 0.1 | % | -1.1 | % | -1.0 | % | -6.4 | % | -13.1 | % | — | -1.7 | % | |||||||||||||||||||||
Year-Over-Year Change Comp Store Sales (3) | ||||||||||||||||||||||||||||||||||||||||
Units | 51 | 13 | 14 | 18 | 18 | 18 | 20 | — | — | 152 | ||||||||||||||||||||||||||||||
1Q08 | -0.4 | % | 1.4 | % | 0.6 | % | 0.8 | % | 0.6 | % | 0.2 | % | -2.0 | % | — | — | 0.1 | % | ||||||||||||||||||||||
2Q08 | -3.0 | % | -0.5 | % | 0.0 | % | -0.5 | % | -2.8 | % | -2.1 | % | -4.7 | % | — | — | -2.3 | % | ||||||||||||||||||||||
2008 | -1.7 | % | 0.5 | % | 0.3 | % | 0.1 | % | -1.1 | % | -1.0 | % | -3.8 | % | — | — | -1.1 | % |
(1) | Includes all restaurants opened in the period indicated. | |
(2) | A unit is included in the year-over-year change in AWS in the thirteenth month of operation. | |
(3) | A unit becomes comparable in the eighteenth month of operation. |
Page 9 of 10
Pei Wei Asian Diner
Supplemental Sales Information
Supplemental Sales Information
Year of Unit Opening (1)
2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | Total | |||||||||||||||||||||||||||||||
Units | 1 | 4 | 11 | 17 | 20 | 24 | 30 | 37 | 15 | 159 | ||||||||||||||||||||||||||||||
Sales (000) | ||||||||||||||||||||||||||||||||||||||||
1Q08 | 730 | 2,086 | 5,725 | 8,942 | 10,617 | 11,441 | 13,494 | 15,167 | 4,289 | 72,491 | ||||||||||||||||||||||||||||||
2Q08 | 697 | 1,988 | 5,393 | 8,570 | 10,296 | 11,049 | 13,121 | 14,515 | 6,478 | 72,107 | ||||||||||||||||||||||||||||||
2008 | 1,427 | 4,074 | 11,118 | 17,512 | 20,913 | 22,490 | 26,615 | 29,682 | 10,767 | 144,598 | ||||||||||||||||||||||||||||||
Average Weekly Sales (AWS) | ||||||||||||||||||||||||||||||||||||||||
1Q08 | 56,165 | 40,115 | 40,034 | 40,460 | 40,833 | 36,669 | 34,599 | 31,531 | 40,863 | 36,667 | ||||||||||||||||||||||||||||||
2Q08 | 53,587 | 38,234 | 37,713 | 38,776 | 39,601 | 35,412 | 33,645 | 30,178 | 35,204 | 35,071 | ||||||||||||||||||||||||||||||
2008 | 54,876 | 39,175 | 38,874 | 39,618 | 40,217 | 36,040 | 34,122 | 30,855 | 37,260 | 35,854 | ||||||||||||||||||||||||||||||
Year-Over-Year Change in AWS (2) | ||||||||||||||||||||||||||||||||||||||||
1Q08 | -6.7 | % | -8.4 | % | -7.6 | % | -4.7 | % | -0.7 | % | -0.5 | % | -2.1 | % | -18.7 | % | — | -3.5 | % | |||||||||||||||||||||
2Q08 | -5.5 | % | -5.1 | % | -8.1 | % | -7.0 | % | -1.7 | % | -0.9 | % | -1.6 | % | -14.8 | % | — | -4.5 | % | |||||||||||||||||||||
2008 | -6.1 | % | -6.8 | % | -7.9 | % | -5.8 | % | -1.2 | % | -0.7 | % | -1.9 | % | -15.8 | % | — | -4.0 | % | |||||||||||||||||||||
Year-Over-Year Change Comp Store Sales (3) | ||||||||||||||||||||||||||||||||||||||||
Units | 1 | 4 | 11 | 17 | 20 | 24 | 30 | 3 | — | 110 | ||||||||||||||||||||||||||||||
1Q08 | -6.7 | % | -8.4 | % | -7.6 | % | -4.7 | % | -0.7 | % | -0.5 | % | 1.4 | % | — | — | -2.4 | % | ||||||||||||||||||||||
2Q08 | -5.5 | % | -5.1 | % | -8.1 | % | -7.0 | % | -1.7 | % | -0.9 | % | -1.3 | % | -0.9 | % | — | -3.2 | % | |||||||||||||||||||||
2008 | -6.1 | % | -6.8 | % | -7.9 | % | -5.8 | % | -1.2 | % | -0.7 | % | -0.2 | % | -0.9 | % | — | -2.8 | % |
(1) | Includes all restaurants opened in the period indicated. | |
(2) | A unit is included in the year-over-year change in AWS in the thirteenth month of operation. | |
(3) | A unit becomes comparable in the eighteenth month of operation. |
Page 10 of 10