Exhibit 99.1
BJ's Restaurants, Inc. Reports Strong Financial Results for
the First Quarter of Fiscal 2006
HUNTINGTON BEACH, Calif.--(BUSINESS WIRE)--April 27, 2006--BJ's
Restaurants, Inc. (NASDAQ:BJRI) today reported revenues and net income
for the first fiscal quarter ended April 4, 2006.
Highlights for the first quarter, compared to the same quarter
last year, were as follows:
-- Revenues increased 43% to $53.4 million
-- Comparable restaurant sales increased 6.8%
-- Net income increased 39% to $2.3 million
-- Diluted net income per share increased 25% to $0.10
The Company adopted a new accounting standard titled FAS No. 123
(Revised), "Share-Based Payment" during the first quarter of fiscal
2006. FAS No. 123R requires the fair value measurement of all
stock-based payments to employees, including grants of stock options,
and recognition of those expenses in the Company's results of
operations. Including the impact of FAS 123R on a pro-forma basis in
the prior year's first quarter, net income increased 107% to $2.3
million compared to non-GAAP pro forma net income of $1.1 million, and
diluted net income per share increased 100% to $0.10 compared to
non-GAAP pro forma net income per share of $0.05 in the prior year's
first quarter.
"Our management team was very pleased with the Company's results
for the first quarter of 2006," commented Jerry Deitchle, President
and CEO. "Our 6.8% comparable sales increase during the first quarter
represented our 38th consecutive quarter of positive comparisons on
that measure since our 1996 IPO, which is a strong testament to the
sustained popularity of the BJ's restaurant concept. Additionally, the
10 restaurants in our comparable sales base that are located outside
of our home state of California achieved a strong 11.8% sales increase
during the quarter.
"We continued to make excellent progress during the quarter with
respect to the planned implementation of our fiscal 2006 key
initiatives," said Deitchle. "Among other things, our 2006 initiatives
include the design, testing and rollout of state-of-the-art toolsets
that are intended to help our restaurant operators execute with
improved productivity and also achieve a simultaneous improvement in
overall food and service quality. Two of these new toolsets, a kitchen
display system (KDS) and a web-based labor scheduling program should
be rolled out to substantially all of our restaurants by the end of
the second quarter."
The Company continues to expect to open as many as 11 new
restaurants during 2006, of which three new restaurants opened during
the first quarter (Vacaville, CA; Phoenix, AZ; and Westminster, CO).
"Our real estate pipeline remains in excellent shape as of today,"
commented Deitchle. "We have signed leases in hand for as many as
eight more openings during fiscal 2006. Of those eight potential new
restaurants, five are currently under construction as of today.
Additionally, we already have 15 signed leases or signed letters of
intent in hand for potential 2007 and 2008 openings."
In connection with its adoption of FAS 123R, the Company analyzed
its share-based payments (stock option grants) and considered the
related tax effects of those grants. In the past, the Company has
granted both incentive stock options (ISO) and nonqualified stock
options. All compensation expense resulting from the exercise of
nonqualified stock options results in a tax benefit. However, the tax
benefit of compensation expense relating to ISOs ultimately depends on
the timing of when the option is exercised and when the acquired
shares are subsequently sold. As a result, the Company anticipates an
increase of approximately 200 basis points to its fiscal 2006
effective tax rate related to the potential non-deductibility of
compensation expense related to its prior grants of incentive stock
options. The Company now expects the total impact of FAS 123R on
diluted net income per share to be approximately $0.08 during fiscal
2006, excluding any prospective share-based payments granted during
fiscal 2006.
Investor Conference Call and Webcast
BJ's Restaurants, Inc. will conduct a conference call on its first
quarter earnings release today, April 27, 2006, at 2:00 p.m.
(Pacific). The Company will provide an on-line 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 47 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 (4),
Oregon (3), Colorado (2) 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.
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. Such statements
include disclosure regarding implementation of the Company's fiscal
2006 key initiatives, expectations as to restaurant openings and the
effects on FAS 123R on diluted net income per share for future
periods. 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 30 of our current 44 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 first quarter 2006 will be provided in the Company's Form 10-Q
filing, to be filed with the Securities and Exchange Commission by May
15, 2006.
For further information, please contact Greg Levin of BJ's
Restaurants, Inc. (714)848-3747 ext. 240.
Selected Unaudited Consolidated Financial Data
(Dollars in thousands except for per share data)
For the Thirteen Weeks Ended
-------------------------------
April 4, April 3,
Statement of Income Data: 2006 2005
--------------- ---------------
Revenues $53,356 100.0% $37,393 100.0%
Costs and expenses:
Cost of sales 13,685 25.6 9,356 25.0
Labor and benefits 18,390 34.5 13,342 35.7
Operating and occupancy expenses 10,328 19.4 7,077 18.9
General and administrative 4,692 8.8 2,948 7.9
Depreciation and amortization 2,156 4.0 1,405 3.8
Restaurant opening expense 1,035 1.9 966 2.6
-------- ------ -------- ------
Total cost and expenses 50,286 94.2 35,094 93.9
-------- ------ -------- ------
Income from operations 3,070 5.8 2,299 6.1
Other income:
Interest income, net 443 0.8 101 0.3
Other income, net 28 0.1 50 0.1
-------- ------ -------- ------
Total other income 471 0.9 151 0.4
-------- ------ -------- ------
Income before income tax expense 3,541 6.6 2,450 6.6
Income tax expense 1,230 2.3 784 2.1
-------- ------ -------- ------
Net income $2,311 4.3% $1,666 4.5%
======== ====== ======== ======
Net income per share:
Basic $0.10 $0.08
Diluted $0.10 $0.08
Weighted average number of shares
outstanding:
Basic 22,777 20,510
Diluted 23,634 21,666
Selected Consolidated Balance Sheet Information
(Dollars in thousands)
Balance Sheet Data (end of period): April 4, Jan. 3,
2006 2006
(unaudited) (audited)
----------- ----------
Cash, cash equivalents and short-term
investments $41,950 $49,847
Total assets $164,817 $163,958
Total long-term debt, including current portion $- $-
Shareholders' equity $134,650 $129,899
Supplemental Information (1) For the Thirteen Weeks Ended
-----------------------------
April 4, 2006 April 3, 2005
-------------- --------------
Comparable restaurant sales % change 6.8% 2.8%
Restaurants opened during period 3 1
Restaurants open at period-end 47 36
Restaurant operating weeks 582 457
(1) excludes the one licensed restaurant
Reconciliation of Non-GAAP Financial Measures
The following table illustrates the effect on net income and net
income per share if the Company had applied the fair value recognition
provisions of Statement 123R to all periods presented. This pro forma
non-GAAP financial information includes financial measures which the
Company reconciles to the results reported in accordance with GAAP.
The Company believes that pro forma non-GAAP reporting for prior
periods, giving effect to the adjustments shown in the reconciliation
below, is useful to investors to permit them to compare the Company's
results to prior periods using consistent assumptions regarding
stock-based compensation. In addition, the Company believes that its
competitors report similar non-GAAP financial information and, as a
result, investors, analysts and others in the investment community
expect such information to be reported as it allows them to better
compare the Company's results with those of its competitors. The
Company uses such non-GAAP financial measures to analyze and compare
the performance of its core business. The pro forma non-GAAP financial
information presented herein should be considered supplemental to, and
not as a substitute for, or superior to, financial measures calculated
in accordance with GAAP.
(Unaudited, in thousands except per share data)
For the Thirteen Weeks Ended
---------------------------------
April 4, 2006 April 3, 2005
(As Reported) (Pro Forma)
---------------------------------
Net income before stock based
compensation $2,609 4.9% $1,666 4.5% (a)
Stock based compensation:
Labor and benefits (10) (0.0%) (13) (0.0%)
General and administrative (449) (0.8%) (971) (2.6%)
Tax benefit of stock based
compensation 161 0.3% 433 1.2%
---------------------------------
Net income $2,311 4.3% $1,115 3.0% (b)
=================================
Basic net income per share:
Net income before stock based
compensation $0.11 $0.08 (a)
Stock based compensation, net (0.01) (0.03)
------- ------
Diluted net income per share $0.10 $0.05 (b)
======= ======
Diluted net income per share:
Net income before stock based
compensation $0.11 $0.08 (a)
Stock based compensation, net (0.01) (0.03)
------- ------
Diluted net income per share $0.10 $0.05 (b)
======= ======
(a) Represents net income and basic and diluted net income per share
for the 2005 period under GAAP as reported in the Company's
filings with the Securities and Exchange Commission.
(b) Represents pro forma non-GAAP net income and basic and diluted net
income per share for the 2005 period as if the Company had applied
the fair value recognition provisions of Statement 123R to prior
quarters.
CONTACT: BJ's Restaurants, Inc.
Greg Levin, 714-848-3747, ext. 240