“Our comparable store sales for the first quarter, while positive, were below our expectations,” said Ralph Rubio, Rubio’s Chairman and CEO. “However, we believe key sales initiatives that we are pursuing as well as enhancements to the overall guest experience will improve our performance.”
Non-GAAP Term Definitions
Restaurant operating cash flow margins are used by the Company to evaluate the performance of its restaurants and are calculated by dividing restaurant sales less cost of sales, restaurant labor and restaurant occupancy and other by restaurant sales.
EBITDA is a typical non-GAAP measure - i.e., a measure calculated and presented on the basis of methodologies other than in accordance with U.S. generally accepted accounting principles or “GAAP” for companies that issue public debt and certain valuation models used by investors. Although the Company has no debt, we believe the inclusion of EBITDA as a financial measure of the Company’s performance is useful to its investors and securities analysts as a factor in their analysis of the Company. The Company uses EBITDA in it’s evaluation of funding requirements for future development and other needs. EBITDA is not a recognized term under GAAP and does not purport to be an alternative to income from operations or net income, an indicator of cash flows from operations, or a measure of liquidity. The Company calculates EBITDA as net income plus income tax expense, less other income, plus loss on disposal/sale of property and depreciation and amortization.
The differences between EBITDA and GAAP net income for the first quarters are as follows:
| | | 2006 | | 2005 | |
| | | (in thousands) | |
| Net income | | $ | 192 | | $ | 489 | |
| Income tax expense | | | 121 | | | 308 | |
| Other income | | | (101 | ) | | (82 | ) |
| Loss on disposal/sale of property | | | 14 | | | 3 | |
| Depreciation and amortization | | | 1,860 | | | 1,935 | |
| | | $ | 2,086 | | $ | 2,653 | |
Conference Call
The Company will host a conference call on Thursday, May 4, 2006 at 8:00 a.m. - Pacific Time to discuss the financial results. For those wishing to listen, the conference call will be broadcast live over the Internet at www.vcall.com or through our website, www.rubios.com, under the Investor Relations section by clicking on the Vcall logo. A recording of the conference call also will be available for 12 months through our website, www.rubios.com, under the Investor Relations section by clicking on the Vcall logo.
About Rubio's® Restaurants, Inc.
Rubio's Fresh Mexican Grill® (NASDAQ: RUBO) Bold, distinctive, Baja-inspired food is the hallmark of Rubio's Fresh Mexican Grill. The first Rubio's® was opened in Mission Bay, a community of San Diego, in 1983 by Ralph Rubio. Rubio's is credited with introducing fish tacos to Southern California and starting a phenomenon that has spread coast to coast. In addition to all white meat chicken, slow roasted carnitas and lean carne asada, Rubio's menu features seafood items including grilled Mahi Mahi and shrimp. Guacamole and a variety of salsas and proprietary sauces are made from scratch daily. The menu includes Street Tacos(SM), burritos, salads and bowls, tacos, quesadillas, HealthMex® items with less than 20 percent of calories from fat, and domestic and imported beer in most locations. Each restaurant design is reminiscent of the relaxed, warm and inviting atmosphere of Baja California, a coastal state of Mexico. Headquartered in Carlsbad, California, Rubio's operates, licenses or franchises more than 150 restaurants in California, Arizona, Colorado, Utah and Nevada. More information can be found at www.rubios.com.
Safe Harbor Disclosure
Some of the information in this press release or the related conference call may contain forward-looking statements regarding future events or the future financial performance of the Company. Forward-looking statements are based on management’s current plans and assumptions and are subject to known and unknown risks and uncertainties, which may cause actual results to differ materially from expectations. You should not place reliance on forward-looking statements. The following are some of the considerations and factors that could materially affect our results: changes in comparable store sales growth and revenues, increased product costs, labor expense and other restaurant costs, the success of our promotions and marketing strategies, our ability to recruit and retain qualified personnel, adverse effects of weather, adequacy of reserves related to closed stores or stores to be sold, increased depreciation, asset write downs, or implementation costs related to the Rubio’s marketing and concept positioning initiatives, our ability to manage ongoing and unanticipated costs, such as costs to comply with the Sarbanes-Oxley Act and other regulatory initiatives, litigation costs, our ability to implement a franchise strategy, our ability to open additional or maintain existing restaurants in the coming periods and the effects of ever-increasing competition. These and other factors that could materially affect our results can be found in our filings with the SEC including, without limitation, in the “Risk Factors” section of our most recent Annual Report on Form 10-K and subsequent quarterly reports on Form 10-Q. The Company undertakes no obligation to release publicly the results of any revision to these forward-looking statements to reflect events or circumstances following the date of this release.
# # #
RUBIO'S RESTAURANTS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
| | For the Thirteen Weeks Ended | |
| | March 26, 2006 | | | March 27, 2005 | |
| | | | | | | | |
| RESTAURANT SALES | | $ | 35,027 | | $ | 33,698 | |
| FRANCHISE AND LICENSING REVENUES | | | 56 | | | 59 | |
| TOTAL REVENUES | | | 35,083 | | | 33,757 | |
| | | | | | | | |
| COST OF SALES | | | 9,537 | | | 9,110 | |
| RESTAURANT LABOR | | | 11,552 | | | 11,217 | |
| RESTAURANT OCCUPANCY AND OTHER | | | 8,556 | | | 7,786 | |
| GENERAL AND ADMINISTRATIVE EXPENSES | | | 3,319 | | | 2,942 | |
| DEPRECIATION AND AMORTIZATION | | | 1,860 | | | 1,935 | |
| PRE-OPENING EXPENSES | | | 33 | | | 49 | |
| LOSS ON DISPOSAL/SALE OF PROPERTY | | | 14 | | | 3 | |
| | | | | | | | |
| OPERATING INCOME | | | 212 | | | 715 | |
| OTHER INCOME | | | 101 | | | 82 | |
| | | | | | | | |
| INCOME BEFORE INCOME TAXES | | | 313 | | | 797 | |
| INCOME TAX EXPENSE | | | (121 | ) | | (308 | ) |
| | | | | | | | |
| NET INCOME | | $ | 192 | | $ | 489 | |
| | | | | | | | |
| NET INCOME PER SHARE: | | | | | | | |
| Basic and diluted | | $ | 0.02 | | $ | 0.05 | |
| | Percentage of Total Revenues |
| | | For the Thirteen Weeks Ended |
| | | March 26, 2006 | | | March 27, 2005 | |
| | | | | | | | |
| TOTAL REVENUES | | | 100.0 | % | | 100.0 | % |
| | | | | | | | |
| COST OF SALES (1) | | | 27.2 | % | | 27.0 | % |
| RESTAURANT LABOR (1) | | | 33.0 | % | | 33.3 | % |
| RESTAURANT OCCUPANCY AND OTHER (1) | | | 24.4 | % | | 23.1 | % |
| GENERAL AND ADMINISTRATIVE EXPENSES | | | 9.5 | % | | 8.7 | % |
| DEPRECIATION AND AMORTIZATION | | | 5.3 | % | | 5.7 | % |
| PRE-OPENING EXPENSES | | | 0.1 | % | | 0.1 | % |
| LOSS ON DISPOSAL/SALE OF PROPERTY | | | 0.0 | % | | 0.0 | % |
| OPERATING INCOME | | | 0.6 | % | | 2.1 | % |
| OTHER INCOME | | | 0.3 | % | | 0.2 | % |
| INCOME BEFORE INCOME TAXES | | | 0.9 | % | | 2.4 | % |
| INCOME TAX EXPENSE | | | 0.3 | % | | 0.9 | % |
| NET INCOME | | | 0.5 | % | | 1.4 | % |
| | | | | | | | |
| (1) As a percentage of restaurant sales | | | | | | | |
CONDENSED CONSOLIDATED BALANCE SHEETS
| | | March 26, 2006 | | December 25, 2005 | |
| | | | (unaudited) | | | | |
| | | | | | | | |
| CASH AND SHORT-TERM INVESTMENTS | | $ | 12,736 | | $ | 11,071 | |
| OTHER CURRENT ASSETS | | | 4,816 | | | 5,426 | |
| PROPERTY - NET | | | 30,949 | | | 30,601 | |
| LONG-TERM INVESTMENTS | | | 3,026 | | | 3,675 | |
| OTHER ASSETS | | | 8,221 | | | 7,818 | |
| TOTAL ASSETS | | $ | 59,748 | | $ | 58,591 | |
| | | | | | | | |
| CURRENT LIABILITIES | | $ | 13,423 | | $ | 12,398 | |
| OTHER LIABILITIES | | | 4,978 | | | 5,228 | |
| STOCKHOLDERS' EQUITY | | | 41,347 | | | 40,965 | |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | | $ | 59,748 | | $ | 58,591 | |
