EXHIBIT 99
FOR IMMEDIATE RELEASE CONTACT: DONALD J. RADKOSKI
(614) 492-4901
Nov. 14, 2005 or Tammy Roberts Myers (614) 492-4954
BOB EVANS FARMS RELEASES SECOND QUARTER FINANCIAL RESULTS
COLUMBUS, Ohio -- Bob Evans Farms, Inc. (Nasdaq: BOBE) today announced
financial results for the fiscal second quarter and six months ended Oct. 28,
2005.
Total net sales for the quarter were $392.4 million, a 4 percent
increase from $376.0 million in the corresponding period last year. Net income
for the quarter was $13.2 million, or $0.37 per share on a diluted basis,
compared with $10.6 million, or $0.30 per share, a year ago. Results for the
latest period include a net pre-tax gain of $3.7 million on the sale of assets,
which increased earnings per share by $0.07. Excluding the gain, earnings per
share would have been equal to last year's level.
For the first six months of fiscal 2006, total sales were $788.0
million, a 13 percent increase from last year's first half. The increase is
mostly attributable to the Mimi's Cafe acquisition in July 2004. Net income for
the six-month period was $20.3 million, or $0.57 per share, compared with $24.8
million, or $0.70 per share, for the corresponding period last year. Excluding
the gain discussed above, earnings per share would have been $0.50 through six
months this year.
At Bob Evans Restaurants, same-store sales for the quarter decreased
3.1 percent from the same period a year ago, with average menu prices up 1.0
percent. At Mimi's Cafe, same-store sales increased 1.8 percent, with average
menu prices up 1.5 percent. The restaurant segment's total sales for the quarter
rose 4 percent, and reported operating income was up 5 percent. Excluding the
gain on the sale of assets, however, the segment's operating income would have
been down approximately 17 percent.
Larry C. Corbin, interim chief executive officer and president, said,
"We made encouraging progress during the second quarter controlling costs in a
very tough sales environment. Food and labor costs improved sequentially from
the first quarter and just as importantly, customer satisfaction scores have
remained high. However, we remain concerned with our continued softness in
same-store sales."
The company opened six new Bob Evans Restaurants and two new Mimi's
Cafes during the second quarter and plans to open approximately 20 Bob Evans and
12 Mimi's for the full fiscal year. However, during the quarter, the company
closed 11 under-performing Bob Evans Restaurants and has now closed 15 year to
date.
Corbin commented, "The decision to close these under-performing
restaurants was driven by an evaluation of performance as well as the future
potential on a location-by-location basis. Proceeds from these asset sales will
be used to purchase new property and reduce short-term debt. We will continue to
evaluate all of our restaurants, and while we may have some additional closings
in the second half of the fiscal year, we don't anticipate as many as we closed
in the first half of the year."
In the food products segment, profitability for the quarter benefited
from sales increases and moderating raw material costs in the company's sausage
business. Hog costs averaged $46.00 per hundredweight for the quarter, compared
with $50.00 in last year's second quarter. Pounds sold from comparable products
(principally sausage and refrigerated potatoes) increased 10 percent. The
segment's total sales for the quarter rose 8 percent, and operating income more
than doubled, to $4.4 million from $1.8 million a year ago.
"We remain pleased with the solid momentum in our food products
business," Corbin said. "With the early signs of improved profitability in the
restaurant segment, we continue to expect that the
company's overall earnings comparisons may be more favorable over the next few
quarters. However, we are well aware that to restore our financial performance
to historical levels over the longer term, we need to stabilize and gradually
rebuild Bob Evans Restaurants' customer traffic."
On Nov. 8, 2005, the Bob Evans Farms, Inc. board of directors declared
a quarterly cash dividend of 12 cents ($0.12) per share on the company's
outstanding common stock. The dividend is payable Dec. 1, 2005, to stockholders
of record at the close of business on Nov. 18, 2005.
Bob Evans Farms, Inc. owns and operates 588 full-service, family
restaurants in 20 states. Bob Evans Restaurants are primarily located in the
Midwest, mid-Atlantic and Southeast regions of the United States, while Owens
Restaurants operate in Texas. In addition, the company operates 95 Mimi's Cafe
casual restaurants located in 13 states, primarily in California and other
western states. Bob Evans Farms, Inc. is also a leading producer and distributor
of pork sausage and a variety of complementary homestyle convenience food items
under the Bob Evans and Owens brand names. For more information about Bob Evans
Farms, Inc., visit the company's Web site at www.bobevans.com.
CONSOLIDATED FINANCIAL RESULTS (UNAUDITED)
(Thousands, except per share data)
Three Months Ended Six Months Ended
------------------ ----------------
Oct. 28, 2005 Oct. 29, 2004 Oct. 28, 2005 Oct. 29, 2004
------------- ------------- ------------- -------------
Net Sales
Restaurant Segment $332,254 $320,170 $673,286 $589,785
Food Products Segment 60,109 55,850 114,717 106,850
-------- -------- -------- --------
Total $392,363 $376,020 $788,003 $696,635
Operating Income
Restaurant Segment $ 18,185 $ 17,380 $ 30,497 $ 41,297
Food Products Segment 4,403 1,804 6,092 971
-------- -------- -------- --------
Total $ 22,588 $ 19,184 $ 36,589 $ 42,268
Net Interest Expense $ 3,068 $ 2,695 $ 6,037 $ 3,571
Income Before Income Taxes $ 19,520 $ 16,489 $ 30,552 $ 38,697
Provisions for Income Taxes $ 6,364 $ 5,920 $ 10,236 $ 13,892
Net Income $ 13,156 $ 10,569 $ 20,316 $ 24,805
Earnings Per Share
Basic $ 0.37 $ 0.30 $ 0.57 $ 0.70
Diluted $ 0.37 $ 0.30 $ 0.57 $ 0.70
Average Shares Outstanding
Basic 35,567 35,302 35,494 35,281
Diluted 35,779 35,654 35,712 35,658
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES (UNAUDITED)
Three Months Ended Six Months Ended
------------------ ----------------
Oct. 28, 2005 Oct. 29, 2004 Oct. 28, 2005 Oct. 29, 2004
------------- ------------- ------------- -------------
Operating income, GAAP $22,588 $19,184 $36,589 $42,268
Less special item - net gain on asset
disposals 3,735 0 3,735 0
------- ------- ------- -------
Operating income, non-GAAP $18,853 $19,184 $32,854 $42,268
Net income, GAAP $13,156 $10,569 $20,316 $24,805
Less special item - net gain on asset
disposals, net of tax 2,517 0 2,517 0
------- ------- ------- -------
Net income, non-GAAP $10,639 $10,569 $17,799 $24,805
Basic earnings per share, GAAP $ 0.37 $ 0.30 $ 0.57 $ 0.70
Basic earnings per share, non-GAAP $ 0.30 $ 0.30 $ 0.50 $ 0.70
Diluted earnings per share, GAAP $ 0.37 $ 0.30 $ 0.57 $ 0.70
Diluted earnings per share, non-GAAP $ 0.30 $ 0.30 $ 0.50 $ 0.70
Safe Harbor Statement Under the Private Securities Litigation Reform
Act of 1995 Statements in this report that are not historical facts are
forward-looking statements and are based on current expectations.
Forward-looking statements involve various important assumptions, risks and
uncertainties. Actual results may differ materially from those predicted by the
forward-looking statements because of various factors and possible events,
including, without limitation:
o Changing business and/or economic conditions, including energy
costs
o Competition in the restaurant and food products industries
o Ability to control restaurant operating costs, which are
impacted by market changes in the cost or availability of
labor and food, minimum wage and other employment laws, fuel
and utility costs and general inflation
o Changes in the cost or availability of acceptable new
restaurant sites
o Adverse weather conditions in locations where the company
operates its restaurants
o Consumer acceptance of changes in menu, price, atmosphere
and/or service procedures
o Consumer acceptance of the company's restaurant concepts in
new geographic areas
o Changes in hog and other commodity costs.
There is also the risk that the company may incorrectly analyze these risks or
that the strategies developed by the company to address them will be
unsuccessful.
Additional discussion of these factors is included in the company's periodic
filings with the Securities and Exchange Commission. Forward-looking statements
speak only as of the date on which they are made, and the company undertakes no
obligation to update any forward-looking statement to reflect circumstances or
events that occur after the date on which the statement is made to reflect
unanticipated events. All subsequent written and oral forward-looking statements
attributable to the company or any person acting on behalf of the company are
qualified by the cautionary statements in this section.
Company executives will discuss the results during a conference call
Tuesday, Nov. 15, 2005, at 10 a.m. ET. To listen, call (888) 394-8033
(conference ID number 6694935) or log-in to the webcast at www.bobevans.com and
then click on "investors." The call will be available for replay for 48 hours,
beginning Tuesday, Nov. 15, 2005, immediately following the call by calling toll
free (877) 519-4471, pin code 6694935. The webcast version will also be archived
on the company's Web site.