Exhibit 99.1
BJ's Restaurants, Inc. Reports Strong
Financial Results for the Fourth Quarter of Fiscal 2005
HUNTINGTON BEACH, Calif.--(BUSINESS WIRE)--Feb. 23, 2006--BJ's
Restaurants, Inc. (NASDAQ:BJRI) today reported strong financial
results for the fourth quarter and fiscal year ended January 3, 2006.
Highlights for the 13-week fourth quarter of 2005 compared to the
14-week fourth quarter of 2004 were as follows:
-- Revenues increased 30% to $49.3 million
-- Comparable restaurant sales increased 5.3%
-- Net income increased 80% to $2.3 million
-- Diluted net income per share increased 67% to $0.10
Highlights for the 52-week fiscal year ended January 3, 2006
compared to the 53-week fiscal year ended January 2, 2005 were as
follows:
-- Revenues increased 38% to $178.2 million
-- Comparable restaurant sales increased 4.6%
-- Net income increased 33% to $8.4 million
-- Net income of $8.4 million increased 65% excluding the
one-time gain from the disposal of the Company's former
Pietro's Restaurants in fiscal 2004
-- Diluted net income per share increased 20% to $0.36
-- Diluted net income of $0.36 per share increased 44% excluding
the one-time gain from the disposal of the Company's former
Pietro's Restaurants in fiscal 2004
"Our management team was very pleased with our financial results
for the fourth quarter," commented Jerry Deitchle, President and CEO.
"Comparable restaurant sales increased 5.3% during the quarter, which
represented our 37th consecutive quarter of positive comparisons on
that measure since our 1996 IPO. We were also pleased with the sales
of our comparable restaurants located outside of our core market of
California, which collectively achieved a sales increase of 7.8%
during the quarter. Our Company also achieved record levels of new
restaurant openings, revenues, net income and diluted net income per
share during 2005. We continue to have solid confidence in our ability
to continue executing our growth plan during the upcoming year in a
carefully controlled and profitable manner."
Three new BJ's Restaurants were opened during the fourth quarter
of 2005 (San Bruno, CA; San Mateo, CA and Sugar Land, TX), bringing
the total number of new restaurant openings during fiscal 2005 to
nine. "We successfully achieved our stated goal at the beginning of
2005 to open as many as eight to nine new restaurants during the
year," said Deitchle. "Sales volumes for substantially all of our 2005
openings have continued stronger than we initially expected."
The Company's primary growth goal for 2006 is to achieve a 20%-25%
increase in total restaurant operating weeks compared to 2005. "During
2006, we currently plan to open as many as 11 new restaurants, of
which one has already opened and five more are currently under
construction," commented Deitchle. "Additionally, we already have
three signed leases and 11 signed letters of intent on hand for
potential 2007 and 2008 openings, thanks to the hard work of our
outstanding development team led by Greg Lynds. We are very pleased
with the quality of all of our potential new restaurant locations."
During fiscal 2005, the Company's operating margin expanded
approximately 130 basis points to 6.2%, excluding the impact of the
one-time gain from the disposal of the Company's former Pietro's
Restaurants in fiscal 2004. Including this one-time gain, the
operating margin expanded 10 basis points from 6.1% to 6.2%. "There is
clearly room for further, gradual improvement in our operating margin
over time," said Deitchle. "During fiscal 2006, we plan to install a
streamlined kitchen display system (KDS), a powerful web-based labor
scheduling and analysis system, and a new theoretical food cost system
in substantially all of our restaurants. These state-of-the-art
toolsets should provide our restaurant operators with a greater
ability to process our business in a more productive and efficient
manner, while simultaneously improving the quality and consistency of
the BJ's dining experience for our guests."
The results for both the fourth quarter and fiscal year ended
January 3, 2006 and January 2, 2005 include the reclassification of
certain non-food related costs from cost of sales to operating and
occupancy expenses, and the reclassification of managers-in-training
salaries from restaurant labor to general and administrative expenses.
The reclassifications were made to conform to the prevalent practice
in the casual dining industry for these costs and do not affect income
from operations, net income or net income per share.
Beginning with the first quarter of 2006, the Company will adopt
FASB Staff Position (FSP) 13-1, "Accounting for Rental Costs Incurred
During Construction" which was issued by the Financial Accounting
Standards Board on October 6, 2005. Under FSP 13-1, the Company will
be required to expense non-cash rent during the construction period
for its new restaurants. The typical BJ's restaurant takes
approximately four months to construct, once the site has been made
available. Accordingly, the Company anticipates that its adoption of
FSP 13-1 will result in an increase in preopening costs per restaurant
in the range of $50,000 to $60,000. However, these costs could vary
from restaurant to restaurant, depending on the length of the actual
construction period as a result of obtaining permits, weather and
other issues that may be beyond the Company's control, as well as the
specific terms of each restaurant's lease.
Additionally, beginning with the first quarter of 2006, the
Company is required to expense stock-based compensation in accordance
with FASB 123R, "Share-Based Payment." Excluding any prospective
equity award grants in 2006, equity-based compensation expense is
currently estimated to approximate $1.5 million, net of taxes, or
$0.06 per diluted share during 2006.
Investor Conference Call and Webcast
BJ's Restaurants, Inc. will conduct a conference call on its
fourth quarter earnings release today, February 23, 2006, at 2:00 p.m.
(Pacific). The Company will provide an online Internet simulcast, as
well as a replay, of the conference call. The link to the simulcast
and rebroadcast can be found on the Company's website at
www.bjsrestaurants.com. The rebroadcast will be available following
the live broadcast and continue for 30 days.
BJ's Restaurants, Inc. currently owns and operates 45 casual
dining restaurants under the BJ's Restaurant and Brewery, BJ's
Restaurant and Brewhouse or BJ's Pizza & Grill brand names. BJ's
restaurants offer an innovative and broad menu featuring
award-winning, signature deep-dish pizza complemented with generously
portioned salads, sandwiches, soups, pastas, entrees and desserts.
Quality, flavor, value, moderate prices and sincere service remain
distinct attributes of the BJ's experience. The Company operates
eleven microbreweries which produce and distribute BJ's critically
acclaimed handcrafted beers throughout the chain. The Company's
restaurants are located in California (31), Texas (6), Arizona (3),
Oregon (3), Colorado (1) and Nevada (1). The Company also has a
licensing interest in a BJ's restaurant in Lahaina, Maui. Visit BJ's
Restaurants, Inc. on the web at http://www.bjsrestaurants.com.
This press release may contain non-GAAP financial information.
Management believes that the presentation of non-GAAP information may
provide useful information to investors because the Company
understands that some investors consider it useful in evaluating the
performance of the Company's core business. Management also uses this
non-GAAP information, along with the GAAP information, in evaluating
the performance of the Company's core business. The non-GAAP results
should not be considered a substitute for financial information
presented in accordance with GAAP, and may be different from non-GAAP
or other pro forma measures used by other companies.
Certain statements in the preceding paragraphs and all other
statements that are not purely historical constitute "forward-looking
statements" for purposes of the Securities Act of 1933 and the
Securities and Exchange Act of 1934, as amended, and are intended to
be covered by the safe harbors created thereby. These forward-looking
statements involve known and unknown risks, uncertainties and other
factors which may cause actual results to be materially different from
those projected or anticipated. Factors that might cause such
differences include, but are not limited to: (i) our ability to manage
an increasing number of new restaurant openings, (ii) construction
delays, (iii) labor shortages, (iv) minimum wage increases (v) food
quality and health concerns, (vi) factors that impact California,
where 31 of our current 45 restaurants are located, (vii) restaurant
and brewery industry competition, (viii) impact of certain brewery
business considerations, including without limitation, dependence upon
suppliers and related hazards, (ix) consumer trends, (x) potential
uninsured losses and liabilities, (xi) fluctuating commodity costs
including food and energy, (xii) trademark and servicemark risks,
(xiii) government regulations, (xiv) licensing costs (xv) beer and
liquor regulations, (xvi) loss of key personnel, (xvii) inability to
secure acceptable sites, (xviii) limitations on insurance coverage,
(xix) legal proceedings, (xx) other general economic and regulatory
conditions and requirements, (xxi) and numerous other matters
discussed in the Company's filings with the Securities and Exchange
Commission. BJ's Restaurants, Inc. undertakes no obligation to update
or alter its forward-looking statements whether as a result of new
information, future events or otherwise.
Further information concerning the Company's results of operations
for the fourth quarter and fiscal year 2005 will be provided in the
Company's Form 10-K filing, to be filed with the Securities and
Exchange Commission by March 20, 2006.
Selected Unaudited Consolidated Financial Data
(Dollars in thousands except for per share data)
-------------------------------
13-Weeks Ended 14-Weeks Ended
January 3, January 2,
Statement of Income Data: 2006 2005
--------------- ---------------
Revenues $49,254 100.0% $37,890 100.0%
Costs and expenses:
Cost of sales 12,788 26.0 9,631 25.4
Labor and benefits 17,589 35.7 13,461 35.5
Operating and occupancy expenses 9,473 19.2 7,197 19.0
General and administrative 3,736 7.6 3,898 10.3
Depreciation and amortization 2,082 4.2 1,578 4.2
Restaurant opening expense 517 1.0 1,105 2.9
Gain from sale of Pietro's restaurants - - - -
-------- ------ -------- ------
Total cost and expenses 46,185 93.7 36,870 97.3
-------- ------ -------- ------
Income from operations 3,069 6.3 1,020 2.7
Other income:
Interest income, net 357 0.7 87 0.2
Other income, net 25 0.1 9 0.0
-------- ------ -------- ------
Total other income 382 0.8 96 0.2
-------- ------ -------- ------
Income before income tax
expense 3,451 7.1 1,116 2.9
Income tax expense 1,136 2.3 (167) (0.4)
-------- ------ -------- ------
Net income $2,315 4.8% $1,283 3.3%
======== ====== ======== ======
Net income per share:
Basic $0.10 $0.07
Diluted $0.10 $0.06
Weighted average number of shares
outstanding:
Basic 22,738 19,498
Diluted 24,057 20,574
---------------------------------
52-Weeks Ended 53-Weeks Ended
January 3, January 2,
Statement of Income Data: 2006 (1) 2005
---------------- ----------------
Revenues $178,210 100.0% $129,049 100.0%
Costs and expenses:
Cost of sales 45,458 25.5 32,193 24.9
Labor and benefits 63,867 35.8 45,775 35.5
Operating and occupancy expenses 33,987 19.1 25,242 19.6
General and administrative 13,290 7.5 11,365 8.8
Depreciation and amortization 6,984 3.9 5,249 4.1
Restaurant opening expense 3,520 2.0 2,918 2.3
Gain from sale of Pietro's
restaurants - - (1,658) (1.3)
--------- ------ --------- ------
Total cost and expenses 167,106 93.8 121,084 93.9
--------- ------ --------- ------
Income from operations 11,104 6.2 7,965 6.1
Other income:
Interest income, net 1,119 0.6 421 0.3
Other income, net 149 0.1 165 0.1
--------- ------ --------- ------
Total other income 1,268 0.7 586 0.4
--------- ------ --------- ------
Income before income tax
expense 12,372 6.9 8,551 6.5
Income tax expense 4,021 2.3 2,286 1.8
--------- ------ --------- ------
Net income $8,351 4.6% $6,265 4.7%
========= ====== ========= ======
Net income per share:
Basic $0.38 $0.32
Diluted $0.36 $0.30
Weighted average number of shares
outstanding:
Basic 22,134 19,498
Diluted 23,381 20,570
(1) The Company changed its fiscal week-end from Sunday to Tuesday
effective its third quarter ending October 4, 2005. This change
resulted in two additional days of operations in the third
quarter; therefore fiscal year 2005 includes two additional days
of operations.
Selected Balance Sheet Information
(Dollars in thousands)
January 3, January 2,
2006 2005
Balance Sheet Data (end of period): (Unaudited) (Audited)
----------- ----------
Cash, cash equivalents and short-term
investments $49,847 $19,541
Total assets $163,958 $100,866
Total long-term debt, including current portion $- $-
Shareholders' equity $129,899 $78,780
Supplemental Information (1)
--------------------------------------------
13-Weeks 14-Weeks 52-Weeks 53-Weeks
Ended Ended Ended Ended
January 3, January 2, January 3, January 2,
2006 2005 2006 2005
--------------------------------------------
Comparable restaurant
sales % change 5.3% 1.1% 4.6% 3.8%
Restaurants opened during
period 3 3 9 7
Restaurants open at
period-end 44 36 44 36
Restaurant operating weeks 568 489 2,062 1,722
(1) excludes the one licensed restaurant
Supplemental Information (2)
The following reconciliation is provided to assist readers with an
understanding of the reclassifications made between cost of sales and
operating and occupancy expenses for certain non-food related items
and the reclassification of manager-in-training salaries between
restaurant labor and general and administrative expenses:
Fiscal 2005 Quarters
Q1 Q2
-------------------- --------------------
As As
Previously Previously
Reported Adjusted Reported Adjusted
----------- -------- ----------- --------
Revenues 37,393 37,393 43,985 43,985
Cost of sales (1) 9,835 9,356 11,834 11,257
Labor and benefits (2) 13,389 13,342 16,002 15,735
Operating and occupancy (1) 6,598 7,077 7,757 8,334
General and administrative
(2) 2,901 2,948 2,909 3,176
Depreciation and amortization 1,405 1,405 1,662 1,662
Restaurant opening expenses 966 966 1,138 1,138
Gain from sale of Pietro's
restaurants - - - -
Interest Income, net 101 101 292 292
Other Income (expense), net 50 50 70 70
Income tax expense 784 784 984 984
Net income 1,666 1,666 2,061 2,061
Q3
--------------------
As
Previously
Reported Adjusted
----------- --------
Revenues 47,578 47,578
Cost of sales (1) 12,695 12,057
Labor and benefits (2) 17,496 17,201
Operating and occupancy (1) 8,465 9,103
General and administrative (2) 3,135 3,430
Depreciation and amortization 1,835 1,835
Restaurant opening expenses 899 899
Gain from sale of Pietro's restaurants - -
Interest Income, net 369 369
Other Income (expense), net 4 4
Income tax expense 1,117 1,117
Net income 2,309 2,309
Fiscal 2004 Quarters
Q1 Q2
-------------------- --------------------
As As
Previously Previously
Reported Adjusted Reported Adjusted
----------- -------- ----------- --------
Revenues 28,977 28,977 29,315 29,315
Cost of sales (1) 7,409 7,040 7,624 7,259
Labor and benefits (2) 10,576 10,527 10,185 10,041
Operating and occupancy (1) 5,323 5,692 5,405 5,770
General and administrative
(2) 2,520 2,569 2,213 2,357
Depreciation and amortization 1,158 1,158 1,183 1,183
Restaurant opening expenses 239 239 770 770
Gain from sale of Pietro's
restaurants (1,658) (1,658) - -
Interest Income, net 103 103 121 121
Other Income (expense), net 85 85 29 29
Income tax expense 1,222 1,222 682 682
Net income 2,376 2,376 1,403 1,403
Q3 Q4
-------------------- --------------------
As As
Previously Previously
Reported Adjusted Reported Adjusted
----------- -------- ----------- --------
Revenues 32,867 32,867 37,890 37,890
Cost of sales (1) 8,668 8,263 10,118 9,631
Labor and benefits (2) 11,813 11,746 13,756 13,461
Operating and occupancy (1) 6,178 6,583 6,710 7,197
General and administrative
(2) 2,474 2,541 3,603 3,898
Depreciation and amortization 1,330 1,330 1,578 1,578
Restaurant opening expenses 804 804 1,105 1,105
Gain from sale of Pietro's
restaurants - - - -
Interest Income, net 110 110 87 87
Other Income (expense), net 42 42 9 9
Income tax expense 549 549 (167) (167)
Net income 1,203 1,203 1,283 1,283
(1) The change is due to the reclassification of non-food related
costs from restaurant cost of sales to restaurant operating and
occupancy expenses to better conform to casual dining industry
practices
(2) The change is due to the reclassification of manager-in-training
salaries from restaurant labor and benefits to general and
administrative costs to better conform to casual dining industry
practices
CONTACT: BJ's Restaurants, Inc.
Greg Levin, 714-848-3747, ext. 240