Exhibit 99.1
BJ's Restaurants, Inc. Reports Solid
Financial Results for the First Quarter of Fiscal 2007
HUNTINGTON BEACH, Calif.--(BUSINESS WIRE)--April 26, 2007--BJ's
Restaurants, Inc. (NASDAQ:BJRI) today reported revenues and net income
for the first fiscal quarter ended April 3, 2007.
Highlights for the first quarter, compared to the same quarter
last year, were as follows:
-- Revenues increased approximately 33% to $71.2 million
-- Comparable restaurant sales increased 6.9%
-- Total operating weeks increased approximately 24%
-- Net income of $3.0 million and diluted net income per share of
$0.11, excluding a previously announced non-cash, pre-tax
charge of $2.0 million ($0.05 per diluted share) related to
asset disposals
-- Net income of $1.6 million and diluted net income per share of
$0.06
"Our leadership team was very pleased with the Company's results
for the first quarter of 2007," commented Jerry Deitchle, President
and CEO. "In spite of a continuing 'headwind' due to the difficult
operating environment in general for most casual dining restaurant
companies, BJ's was able to achieve a strong 6.9% increase in
comparable restaurant sales for the quarter (our 42nd consecutive
quarter of positive comparable sales comparisons), successfully
hurdling a solid 6.8% increase for the same quarter last year. That
adds up to an impressive 13.7% two-year increase in first quarter
comparable sales. We believe our continued positive sales trends are
the result of the improved quality, differentiation, overall value and
broad 'approachability' of the BJ's concept, coupled with improved
operational execution as a result of our recently implemented toolsets
and initiatives."
The Company opened two new restaurants in the first quarter of
2007 in Tampa, Florida and Columbus, Ohio. These two restaurants
represent BJ's initial entry into the Midwest and Southeast regions of
the United States. "Sales volumes for these two new restaurants are
currently running in excess of $100,000 per week, which is stronger
than we expected and is very encouraging," commented Deitchle.
Additionally, the Company opened its second Florida restaurant on
April 17, 2007 in Orlando, across from the Mall at Millenia.
The Company continues to target as many as 13 new restaurants for
2007 and thereby will increase its operating week capacity by 20% to
25% during the year. All prospective locations for potential 2007
openings have been secured, and seven new restaurants are currently
under construction. The Company currently anticipates opening as many
as four new restaurants in the second quarter, of which one has
already opened; as many as three new restaurants in the third quarter;
and as many as four new restaurants in the fourth quarter. 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.
As previously announced, the Company incurred a one-time,
non-cash, pre-tax charge of $2.0 million (approximately $1.3 million
net of the related tax effect or approximately $0.05 per diluted
share) related to the disposal of certain assets as a result of
certain initiatives to further improve the quality, productivity,
efficiency and capacity of its restaurant, brewing and infrastructure
support operations. In the Company's restaurants, existing televisions
were replaced with new flat panel, high definition televisions.
Additionally, the current china/silverware/glassware package in the
restaurants is being upgraded with a more contemporary package that
significantly enhances BJ's food and beverage presentations. The
Company also decommissioned four of its older, smaller and inefficient
"legacy" breweries to take advantage of the economies of scale offered
by the Company's new, large-capacity brewery in Reno, Nevada. The
Company also 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 resulted in
the disposal of certain nonproductive support-related assets.
Investor Conference Call and Webcast
BJ's Restaurants, Inc. will conduct a conference call on its first
quarter earnings release today, April 26, 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 58 casual
dining restaurants under the BJ's Restaurant & Brewery, BJ's
Restaurant & 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 eight
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), Nevada (2), Florida (2) and Ohio (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
2007 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 58 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 2007 will be provided in the Company's Form 10-Q
filing, to be filed with the Securities and Exchange Commission by no
later than May 14, 2007.
For further information, please contact Greg Levin of BJ's
Restaurants, Inc. (714) 500-2440.
Selected Unaudited Consolidated Financial Data
(Dollars in thousands except for per share data)
For the Thirteen Weeks Ended
-------------------------------
April 3, April 4,
Statement of Income Data: 2007 2006
--------------- ---------------
Revenues $71,203 100.0% $53,356 100.0%
Costs and expenses:
Cost of sales 18,028 25.3 13,685 25.6
Labor and benefits 25,628 36.0 18,390 34.5
Operating and occupancy expenses 13,406 18.8 10,328 19.4
General and administrative 6,238 8.8 4,692 8.8
Depreciation and amortization 3,052 4.3 2,156 4.0
Restaurant opening expense 1,420 2.0 1,035 1.9
Loss on disposal of assets 2,004 2.8 0 0.0
-------- ------ -------- ------
Total cost and expenses 69,776 98.0 50,286 94.2
-------- ------ -------- ------
Income from operations 1,427 2.0 3,070 5.8
Other income:
Interest income, net 976 1.4 443 0.8
Other income, net 34 0.0 28 0.1
-------- ------ -------- ------
Total other income 1,010 1.4 471 0.9
-------- ------ -------- ------
Income before income tax expense 2,437 3.4 3,541 6.7
Income tax expense 811 1.1 1,230 2.3
-------- ------ -------- ------
Net income $1,626 2.3% $2,311 4.4%
======== ====== ======== ======
Net income per share:
Basic $0.06 $0.10
Diluted $0.06 $0.10
Weighted average number of shares
outstanding:
Basic 26,072 22,777
Diluted 26,813 23,634
Selected Consolidated Balance Sheet Information
(Dollars in thousands)
Balance Sheet Data (end of period): April 3, January 2,
2007 2007
(unaudited) (audited)
----------- ----------
Cash, cash equivalents and short-term
investments $68,388 $84,653
Total assets $241,934 $249,849
Total long-term debt, including current portion $- $-
Shareholders' equity $205,360 $202,862
Supplemental (Unaudited) Information For the Thirteen Weeks Ended
(1)
-----------------------------
April 3, 2007 April 4, 2006
-------------- --------------
Comparable restaurant sales % change 6.9% 6.8%
Restaurants opened during period 2 3
Restaurants open at period-end 57 47
Restaurant operating weeks 721 582
(1) excludes the one licensed restaurant
Reconciliation of Non-GAAP Financial Measures
The following reconciliation of net income is provided to assist
the reader with an understanding of the financial impact for stock
based compensation and the loss on disposal of assets during the
quarter. 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
---------------------------
April 3, 2007 April 4, 2006
------------- -------------
Net income as reported $1,626 2.3% $2,311 4.4%
Stock based compensation:
Labor and benefits (a) 161 0.2 10 -
General and administrative 539 0.8 449 0.8
Loss on disposal of assets 2,004 2.8 - -
Tax effect (900) (1.3) (161) (0.3)
------- ----- ------- -----
Pro-forma net income $3,430 4.8% $2,609 4.9%
======= ===== ======= =====
Basic net income per share $0.06 $0.10
Stock based compensation 0.03 0.02
Loss on disposal of assets 0.08 -
Tax effect (0.03) (0.01)
------- -------
Pro-forma basic net income per share $0.14 $0.11
======= =======
Diluted net income per share $0.06 $0.10
Stock based compensation 0.03 0.02
Loss on disposal of assets 0.07 -
Tax effect (0.03) (0.01)
------- -------
Pro-forma diluted net income per share $0.13 $0.11
======= =======
(a) Beginning fiscal year 2007, the Company implemented its Gold
Standard Stock Ownership Program ("GSSOP") to reward gold standard
performance to its restaurant managers, executive kitchen managers and
field supervision. The initial grant of restricted stock units for
each participant in the GSSOP was granted on the first business day of
the 2007 fiscal year. Prior to the GSSOP plan the Company did not have
a formal equity incentive program for its restaurant personnel.
CONTACT: BJ's Restaurants, Inc.
Greg Levin, 714-500-2440