Exhibit 99.1
BJ's Restaurants, Inc. Reports Strong Financial Results for the
Fourth Quarter and Fiscal Year Ended 2006
HUNTINGTON BEACH, Calif.--(BUSINESS WIRE)--Feb. 15, 2007--BJ's
Restaurants, Inc. (NASDAQ:BJRI) today reported revenues and net income
for the fourth quarter and fiscal year ended January 2, 2007.
Highlights for the 13 weeks ended January 2, 2007 compared to the
13 weeks ended January 3, 2006 were as follows:
-- Revenues increased approximately 34% to $65.9 million
-- Comparable restaurant sales increased 5.5%
-- Net income increased approximately 22% to $2.8 million
-- Diluted net income per share increased 10% to $0.11
Highlights for the 52 weeks ended January 2, 2007 compared to the
52 weeks ended January 3, 2006 were as follows:
-- Revenues increased approximately 34% to $238.9 million
-- Comparable restaurant sales increased 5.8%
-- Net income increased approximately 18% to $9.8 million
-- Diluted net income per share increased 14% to $0.41
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. The results for fiscal 2005 do
not include the impact of SFAS No. 123R. If the impact of SFAS No.
123R was included on a pro-forma non-GAAP basis in the prior year's
fourth quarter, net income and diluted net income per share for the
fourth quarter of fiscal 2006 would have increased approximately 41%
and 38%, respectively. If the impact of SFAS No. 123R was included on
a pro-forma non-GAAP basis for all of fiscal 2005, net income and
diluted net income per share for fiscal 2006 would have increased
approximately 52% and 46%, respectively. Reconciliations between GAAP
and non-GAAP results are included in the accompanying financial data.
"Our leadership team is very pleased with BJ's continued strong
performance during the fourth quarter and for the full fiscal year,"
commented Jerry Deitchle, President and Chief Executive Officer. "Our
5.5% increase in comparable restaurant sales for the fourth quarter
represents our 41st consecutive quarter of positive comparisons on
that measure since our 1996 IPO, which is a strong testament to the
broad consumer 'approachability' and sustained popularity of the BJ's
concept. Additionally, during 2006, we successfully implemented
several operational initiatives and toolsets, such as our automated
kitchen display system and web-based labor scheduler and productivity
analyzer, which enabled our restaurant operators to more efficiently
process all of the business being offered to us and simultaneously
improve the overall dining experience at BJ's."
During the first six weeks of the first quarter of fiscal 2007,
comparable sales increased approximately 5% and successfully hurdled
an approximate 8% increase for the same period last year. "Of course,
while quarter-to-date results may not be indicative of results for the
entire quarter, we are very pleased with our continuing positive sales
comparisons in a difficult operating environment," commented Greg
Levin, Chief Financial Officer. "All of the great consumer growth
companies are sales builders, first and foremost, and that is our
unwavering mindset here at BJ's. We are implementing additional
sales-building initiatives as we move through fiscal 2007 including,
among other things, selected capacity additions to existing
restaurants, complete re-launches of our off-premise and large-party
sales channels, the rollout of an automated table management and
seating system in our higher-volume restaurants and contemporary
upgrades to our beverage offerings."
Four new restaurants were opened during the fourth quarter of
fiscal 2006 (Bakersfield, CA; Arlington, TX; Aurora, CO and Reno, NV),
bringing the total number of new restaurant openings during fiscal
2006 to 11. "We successfully achieved our stated goal at the beginning
of 2006 to open as many as 11 new restaurants during the year and,
thereby, increased our total restaurant operating weeks by
approximately 24%," said Greg Lynds, Chief Development Officer.
"Additionally, as we previously announced, our new Reno restaurant
includes a 15,000 barrel state-of-the-art brewery which should be able
to provide BJ's premium handcrafted beer to as many as 20 of our
restaurants. One of our key initiatives for fiscal 2007 is to take
full advantage of the favorable production economies of scale
available in our Reno brewery by rebalancing all of our internal beer
production activities, with the opportunity to achieve a reduced
delivered cost per barrel of beer to all of our restaurants during the
second half of the year."
The Company continues to target capacity growth of 20% to 25%
during fiscal 2007, measured in terms of total restaurant operating
weeks. As many as 13 new restaurants are currently planned for 2007
openings. All prospective locations for 2007 new restaurants have been
identified and secured with signed leases, purchase agreements or
letters of intent. Additionally, 10 signed letters of intent are
already in hand for potential 2008 openings. Weather permitting, the
Company currently expects to open two restaurants (Tampa, FL and
Columbus, OH) in mid-March 2007, approximately four restaurants in the
second quarter of 2007, approximately three new restaurants in the
third quarter of 2007 and approximately four new restaurants in the
fourth quarter of 2007. The actual timing of restaurant openings is
inherently difficult to precisely predict and is subject to a number
of factors that are outside of the Company's control, including
factors that are under the control of the Company's landlords and
contractors.
During the first quarter of 2007, the Company is evaluating
certain initiatives related to its strategic business and growth plan,
including increased brewery productivity and improved support of its
expanding restaurant operations, that may result in a one-time pretax
charge in the range of $1.8 to $2.2 million (approximately $1.2 to
$1.5 million net of the related tax effect) or approximately $0.05 per
diluted share. First, as a result of the previously announced
rebalancing of the Company's internal brewing activities associated
with the planned ramp-up of Reno's brewing operations, the Company may
de-commission as many as four of its older, smaller and inefficient
"legacy" breweries during 2007. Second, as a result of the Company's
quality-enhancing and sales-building initiatives in its restaurants,
the Company is evaluating a more contemporary
china/silverware/glassware program, as well as image enhancements to
certain restaurant facilities, which may result in the one-time
disposal of the replaced assets. Finally, the Company relocated its
home office support activities to a larger leased facility during the
first quarter of 2007 to more effectively accommodate the Company's
planned future expansion that may result in the disposal of certain
nonproductive support-related assets and associated relocation costs.
Management intends to have the plans for these strategic initiatives
finalized during this first quarter and implemented before the end of
fiscal 2007.
Investor Conference Call and Webcast
BJ's Restaurants, Inc. will conduct a conference call on its
fourth quarter earnings release today, February 15, 2007, at 2:00 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 website 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 55 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 12
microbreweries which produce and distribute BJ's critically acclaimed
handcrafted beers throughout the chain. The Company's restaurants are
located in California (35), Texas (8), Arizona (4), Oregon (3),
Colorado (3) and Nevada (2). 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 SFAS 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 35 of our current 55 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 fourth quarter 2006 will be provided in the Company's Form 10-K
filing, to be filed with the Securities and Exchange Commission by no
later than March 19, 2007.
For further information, please contact Greg Levin of BJ's
Restaurants, Inc. (714) 500-2440.
BJ's Restaurants, Inc.
Unaudited Consolidated Statements of Income
(Dollars in thousands except for per share data)
Thirteen Weeks Ended
-------------------------------
January 2, January 3,
2007 2006
-------------------------------
Revenues $65,933 100.0% $49,254 100.0%
Costs and expenses:
Cost of sales 16,895 25.6 12,788 26.0
Labor and benefits 23,163 35.1 17,589 35.7
Occupancy and operating expenses 12,935 19.6 9,473 19.2
General and administrative 5,015 7.6 3,736 7.6
Depreciation and amortization 2,916 4.4 2,082 4.2
Restaurant opening expense 1,606 2.4 517 1.0
-------------------------------
Total costs and expenses 62,530 94.7 46,185 93.7
-------------------------------
Income from operations 3,403 5.3 3,069 6.3
Other income:
Interest income, net 601 0.9 357 0.7
Other income, net 2 - 25 0.1
-------------------------------
Total other income 603 0.9 382 0.8
-------------------------------
Income before income taxes 4,006 6.2 3,451 7.1
Income tax expense 1,184 1.8 1,136 2.3
-------------------------------
Net income $2,822 4.4% $2,315 4.8%
===============================
Net income per share:
Basic $0.11 $0.10
======== ========
Diluted $0.11 $0.10
======== ========
Weighted average number of shares
outstanding:
Basic 24,540 22,738
======== ========
Diluted 25,297 24,057
======== ========
Fifty-Two Weeks Ended
---------------------------------
January 2, January 3,
2007 2006 (1)
---------------------------------
Revenues $238,928 100.0% $178,210 100.0%
Costs and expenses:
Cost of sales 61,420 25.7 45,458 25.5
Labor and benefits 83,292 34.9 63,867 35.8
Occupancy and operating expenses 46,198 19.3 33,987 19.1
General and administrative 19,832 8.3 13,290 7.5
Depreciation and amortization 9,983 4.2 6,984 3.9
Restaurant opening expense 5,253 2.2 3,520 2.0
---------------------------------
Total costs and expenses 225,978 94.6 167,106 93.8
---------------------------------
Income from operations 12,950 5.4 11,104 6.2
Other income:
Interest income, net 1,690 0.7 1,119 0.6
Other income, net 39 - 149 0.1
---------------------------------
Total other income 1,729 0.7 1,268 0.7
---------------------------------
Income before income taxes 14,679 6.1 12,372 6.9
Income tax expense 4,834 2.0 4,021 2.3
---------------------------------
Net income $9,845 4.1% $8,351 4.6%
=================================
Net income per share:
Basic $0.42 $0.38
========= =========
Diluted $0.41 $0.36
========= =========
Weighted average number of shares
outstanding:
Basic 23,287 22,134
========= =========
Diluted 24,131 23,381
========= =========
(1) The Company changed its fiscal week-end from Sunday to Tuesday
effective its third quarter ending October 4, 2005; therefore fiscal
2005 includes two additional days of operations.
Selected Balance Sheet Information
(Dollars in thousands)
January 2, January 3,
Balance Sheet Data (end of period): 2007 2006
---------- ----------
Cash, cash equivalents and short-term
investments $84,653 $49,847
Total assets $249,849 $163,958
Total long-term debt, including current portion $- $-
Shareholders' equity $202,862 $129,899
Thirteen Weeks Ended Fifty-Two Weeks Ended
--------------------- ----------------------
January 2, January 3, January 2, January 3,
Supplemental Information
(1) 2007 2006 2007 2006
--------------------- ----------------------
Comparable restaurant
sales % change 5.5% 5.3% 5.8% 4.6%
Restaurants opened during
period 4 3 11 9
Restaurants open at
period-end 55 44 55 44
Restaurant operating
weeks 703 568 2,554 2,062
(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 SFAS No. 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, not
superior to or as a substitute for financial measures calculated in
accordance with GAAP.
(Unaudited, dollars in thousands except per share data)
Thirteen Weeks Ended
---------------------------------
January 2, January 3,
2007 2006
(As Reported) (Pro-Forma)
---------------------------------
Net income before stock based
compensation $3,065 4.7% $2,315 4.8%(a)
Stock based compensation:
Labor and benefits (7) - (8) -
General and administrative (355) (0.5) (479) (1.0)
Tax benefit of stock based
compensation 119 0.2 173 0.4
---------------------------------
Net income $2,822 4.4% $2,001 4.2%(b)
=================================
Basic net income per share:
Net income before stock based
compensation $0.12 $0.10 (a)
Stock based compensation, net (0.01) (0.01)
------- -------
Basic net income per share $0.11 $0.09 (b)
======= =======
Diluted net income per share:
Net income before stock based
compensation $0.12 $0.10 (a)
Stock based compensation, net (0.01) (0.02)
------- -------
Diluted net income per share $0.11 $0.08 (b)
======= =======
Fifty-Two Weeks Ended
----------------------------------
January 2, January 3,
2007 2006
(As Reported) (Pro-Forma)
----------------------------------
Net income before stock based
compensation $10,934 4.6% $8,351 4.6%(a)
Stock based compensation:
Labor and benefits (36) - (30) -
General and administrative (1,628) (0.7) (2,884) (1.6)
Tax benefit of stock based
compensation 575 0.2 1,049 0.6
----------------------------------
Net income $9,845 4.1% $6,486 3.6%(b)
==================================
Basic net income per share:
Net income before stock based
compensation $0.47 $0.38 (a)
Stock based compensation, net (0.05) (0.09)
-------- -------
Basic net income per share $0.42 $0.29 (b)
======== =======
Diluted net income per share:
Net income before stock based
compensation $0.46 $0.36 (a)
Stock based compensation, net (0.05) (0.08)
-------- -------
Diluted net income per share $0.41 $0.28 (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 SFAS No. 123R to prior
quarters.
CONTACT: BJ's Restaurants, Inc.
Greg Levin, 714-500-2440