Exhibit 99.1
BJ's Restaurants Inc. Reports Strong Financial Results for the Second Quarter of
Fiscal 2006
HUNTINGTON BEACH, Calif.--(BUSINESS WIRE)--July 27, 2006--BJ's
Restaurants Inc. (NASDAQ:BJRI) today reported revenues and net income
for the second quarter ended July 4, 2006.
Highlights for the 13 weeks ended July 4, 2006, compared to the 13
weeks ended July 3, 2005, were as follows:
-- Revenues increased approximately 32% to $57.8 million
-- Comparable restaurant sales increased 5.9%
-- Net income increased approximately 14% to $2.3 million
-- Diluted net income per share increased 11% to $0.10
During the first quarter of fiscal 2006, the company adopted SFAS
No. 123 (Revised), "Share-Based Payment." SFAS 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
No. 123R on a pro-forma basis in the prior year's second quarter, net
income increased approximately 64% to $2.3 million compared to
non-GAAP pro-forma net income of $1.4 million, and diluted net income
per share increased approximately 67% to $0.10 compared to non-GAAP
pro-forma net income per share of $0.06 in the prior year's second
quarter.
"We were pleased with our financial results for the second quarter
of 2006," commented Jerry Deitchle, president and CEO. "Our 5.9%
comparable sales increase during the second quarter represented our
39th consecutive quarter of positive comparisons on that measure since
our 1996 IPO, and was achieved in spite of a very difficult sales and
operating environment for casual dining restaurants in general. We
believe that our positive sales trends can be principally attributed
to BJ's continuing favorable price/value relationship as perceived by
our guests, coupled with improving operational execution."
The company completed the initial rollouts of its new kitchen
display system (KDS) and Web-based labor scheduling system ahead of
schedule during the second quarter. "These state-of-the-art toolsets
should enable our restaurant operators to continue improving their
execution in a more productive and efficient manner, while
simultaneously improving the overall quality of the dining experience
for our guests," said Deitchle. "Once we overcome the expected
learning curve associated with these new tools during the next few
months or so, we should begin to gradually realize their benefits
going forward. Additionally, we continue to work on two additional
operational tools -- an automated theoretical food cost system and an
automated table management system -- that we anticipate testing in
selected restaurants by the end of this year."
During the second quarter, the company opened two new restaurants
in the Sacramento market (Elk Grove, CA and Natomas, CA). "We remain
on track to open as many as 11 new restaurants during fiscal 2006, of
which six have already opened as of today and five more are currently
under construction," commented Deitchle. "In addition to our strong
opening in El Paso, TX on July 11, we currently anticipate one more
restaurant opening during the upcoming third quarter in Temecula, CA
in early September. Our remaining 2006 potential openings are
currently expected to occur during the fourth quarter prior to
Thanksgiving, which is on track with our initial fiscal 2006
development plan.
"Our fiscal 2007 development plan is nearly completed, with five
signed leases and several signed letters of intent already in hand for
as many as 13 openings next year," said Deitchle. "Our primary growth
goal is to achieve a 20 percent to 25 percent increase in total
restaurant operating weeks during each of 2006 and 2007. We remain
very confident that we can achieve that goal in a high-quality manner.
BJ's stands for high-quality restauranteuring -- high-quality food,
beverages, service, locations, facilities and ambience -- at an
outstanding value for our guests. We will settle for nothing less as
we continue to execute our growth plan."
Investor Conference Call and Webcast
BJ's Restaurants Inc. will conduct a conference call on its second
quarter earnings release today, July 27, 2006, at 2 p.m. (Pacific).
The company will provide an 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 Web site at http://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 50 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 11 microbreweries which produce and
distribute BJ's critically acclaimed handcrafted beers throughout the
chain. The company's restaurants are located in California (33), Texas
(7), 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 No. 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 33 of our current 50 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 second quarter 2006 will be provided in the company's Form 10-Q
filing, to be filed with the Securities and Exchange Commission by
Aug. 13, 2006.
For further information, please contact Greg Levin of BJ's
Restaurants Inc., 714-848-3747, ext. 240.
BJ's Restaurants Inc.
Unaudited Consolidated Statements of Income
(Dollars in thousands except for per share data)
Thirteen Weeks Ended
-------------------------------
July 4, July 3,
2006 2005
--------------- ---------------
Revenues $57,843 100.0% $43,985 100.0%
Costs and expenses:
Cost of sales 14,797 25.6 11,257 25.6
Labor and benefits 20,312 35.1 15,735 35.8
Occupancy and operating expenses 10,896 18.8 8,334 18.9
General and administrative 5,026 8.7 3,176 7.2
Depreciation and amortization 2,292 4.0 1,662 3.8
Restaurant opening expense 1,304 2.3 1,138 2.6
-------- ------ -------- ------
Total costs and expenses 54,627 94.5 41,302 93.9
-------- ------ -------- ------
Income from operations 3,216 5.5 2,683 6.1
Other income:
Interest income, net 325 0.6 292 0.7
Other income, net 4 - 70 0.1
-------- ------ -------- ------
Total other income 329 0.6 362 0.8
-------- ------ -------- ------
Income before income taxes 3,545 6.1 3,045 6.9
Income tax expense 1,205 2.1 984 2.2
-------- ------ -------- ------
Net income $2,340 4.0% $2,061 4.7%
======== ====== ======== ======
Net income per share:
Basic $0.10 $0.09
======== ========
Diluted $0.10 $0.09
======== ========
Weighted average number of shares
outstanding:
Basic 22,909 22,593
======== ========
Diluted 23,812 23,845
======== ========
Twenty-Six Weeks Ended
--------------------------------
July 4, July 3,
2006 2005
---------------- ---------------
Revenues $111,199 100.0% $81,378 100.0%
Costs and expenses:
Cost of sales 28,482 25.6 20,613 25.3
Labor and benefits 38,702 34.8 29,077 35.7
Occupancy and operating expenses 21,224 19.1 15,410 18.9
General and administrative 9,718 8.7 6,122 7.5
Depreciation and amortization 4,448 4.0 3,067 3.8
Restaurant opening expense 2,339 2.1 2,104 2.6
--------- ------ -------- ------
Total costs and expenses 104,913 94.3 76,393 93.8
--------- ------ -------- ------
Income from operations 6,286 5.7 4,985 6.2
Other income:
Interest income, net 768 0.7 393 0.5
Other income, net 32 - 117 0.1
--------- ------ -------- ------
Total other income 800 0.7 510 0.6
--------- ------ -------- ------
Income before income taxes 7,086 6.4 5,495 6.8
Income tax expense 2,435 2.2 1,768 2.2
--------- ------ --------- -----
Net income $4,651 4.2% $3,727 4.6%
========= ====== ======== ======
Net income per share:
Basic $0.20 $0.17
========= ========
Diluted $0.20 $0.16
========= ========
Weighted average number of shares
outstanding:
Basic 22,845 21,552
========= ========
Diluted 23,774 22,736
========= ========
Selected Balance Sheet Information
(Dollars in thousands)
Balance Sheet Data (end of period): July 4, Jan. 3,
2006 2006
(unaudited) (audited)
----------- ----------
Cash, cash equivalents and short-term
investments $35,617 $49,847
Total assets $170,906 $163,958
Total long-term debt, including current portion $- $-
Shareholders' equity $137,607 $129,899
Thirteen Weeks Twenty-Six Weeks
Ended Ended
----------------- -----------------
July 4, July 3, July 4, July 3,
Supplemental Information (1) 2006 2005 2006 2005
-------- -------- -------- --------
Comparable restaurant sales %
change 5.9% 4.8% 6.3% 3.8%
Restaurants opened during period 2 4 5 5
Restaurants open at period-end 49 40 49 40
Restaurant operating weeks 616 496 1,198 953
(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, dollars in thousands except per share data)
Thirteen Weeks Ended
--------------------------------
July 4, 2006 July 3, 2005
(As Reported) (Pro Forma)
------------- ------------------
Net income before stock-based
compensation $2,605 4.5% $2,061 4.7%(a)
Stock-based compensation:
Labor and benefits (9) - (6) -
General and administrative (399) (0.7) (993) (2.3)
Tax benefit of stock-based
compensation 143 0.2 361 0.8
------- ----- ------- -----
Net income $2,340 4.0% $1,423 3.2%(b)
======= ===== ======= ========
Basic net income per share:
Net income before stock-based
compensation $0.11 $0.09 (a)
Stock-based compensation, net (0.01) (0.03)
------- -------
Basic net income per share $0.10 $0.06 (b)
======= =======
Diluted net income per share:
Net income before stock-based
compensation $0.11 $0.09 (a)
Stock-based compensation, net (0.01) (0.03)
------- -------
Diluted net income per share $0.10 $0.06 (b)
======= =======
Twenty-Six Weeks Ended
--------------------------------
July 4, 2006 July 3, 2005
(As Reported) (Pro Forma)
------------- ------------------
Net income before stock-based
compensation $5,214 4.7% $3,727 4.6%(a)
Stock-based compensation:
Labor and benefits (19) - (19) -
General and administrative (848) (0.8) (1,964) (2.4)
Tax benefit of stock- based
compensation 304 0.3 716 0.9
------- ----- ------- -----
Net income $4,651 4.2% $2,460 3.1%(b)
======= ===== ======= ========
Basic net income per share:
Net income before stock-based
compensation $0.23 $0.17 (a)
Stock-based compensation, net (0.03) (0.06)
------- -------
Basic net income per share $0.20 $0.11 (b)
======= =======
Diluted net income per share:
Net income before stock-based
compensation $0.22 $0.16 (a)
Stock-based compensation, net (0.02) (0.06)
------- -------
Diluted net income per share $0.20 $0.10 (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