Texas Roadhouse, Inc. Announces First Quarter 2012 Results

Texas Roadhouse
Published: May 1st, 2012

LOUISVILLE, Ky., Apr 30, 2012 (BUSINESS WIRE) --Texas Roadhouse, Inc. (NasdaqGS: TXRH), today announced financial results for the 13 week period ended March 27, 2012.

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Results for the first quarter included:

Before a one-time charge, diluted earnings per share increased 15.3% to $0.31 from $0.27 in the prior year period;
The Company recorded a one-time, pre-tax charge of $5.0 million ($3.1 million after-tax) for a legal settlement, which had a $0.04 impact on diluted earnings per share;
Comparable restaurant sales increased 6.0% at company restaurants and 6.9% at franchise restaurants;
Eight company restaurants were opened;
Restaurant margins, as a percentage of restaurant sales, decreased 13 basis points to 19.1%.

Kent Taylor, Chief Executive Officer of Texas Roadhouse, commented, "We were pleased with our performance during the period and believe that Texas Roadhouse remains very well poised for continued growth. Our sales momentum continued throughout the quarter for both existing and new restaurants, and we remain on track to open 25 restaurants in 2012. Additionally, we continue to work toward at least 25 new restaurant openings in 2013. Finally, our balance sheet remains strong and we will continue to evaluate ways to return capital to shareholders through dividends and share repurchases."

2012 Outlook

The Company reported that comparable restaurant sales at company restaurants for the first four weeks of its second quarter of fiscal 2012 increased approximately 4.8% compared to the prior year period.

The Company currently anticipates that GAAP diluted earnings per share for 2012, which includes the legal settlement charge discussed below, will be $0.91 to $0.93. This compares to diluted earnings per share of $0.88 in 2011. The updated guidance is based, in part, on the following assumptions:

Comparable restaurant sales growth of 4.0% to 5.0%;
25 company restaurant openings;
Food cost inflation of 7.0% to 7.5%, slightly lower than previously expected;
A pre-tax charge of $5.0 million ($3.1 million after-tax) for a legal settlement. This charge is expected to negatively impact 2012 diluted earnings per share by approximately $0.04;
An income tax rate of 32.5% to 33.0%, which is much higher than the prior year rate of 29.5% as a result of the expiration of certain federal tax credits at the end of 2011. The increased tax rate is expected to negatively impact 2012 diluted earnings per share by approximately $0.04; and
Total capital expenditures of $80.0 to $85.0 million.

Settlement of a Legal Matter

The Company reached a settlement agreement, subject to court approval, of a previously disclosed legal matter relating to Massachusetts wage law. Accordingly, a pre-tax charge of $5.0 million, or $0.04 per diluted earnings per share, is included in the Company's financial results for the first quarter. A reconciliation of GAAP and non-GAAP information for the first quarter of fiscal 2012 is included with this release.

Conference Call

The Company is hosting a conference call today, April 30, 2012, at 5:00 p.m. Eastern Time to discuss these results. The dial-in number is (888) 811-5436 or (913) 312-0947 for international calls. A replay of the call will be available for one week following the conference call. To access the replay, please dial (877) 870 -5176 or (858) 384-5517 for international calls, and use 8483988 as the pass code. There will be a simultaneous Web cast conducted at www.texasroadhouse.com.

About Texas Roadhouse

Texas Roadhouse is a casual dining concept that first opened in 1993 and today operates over 370 restaurants system-wide in 47 states and one foreign country. For more information, please visit the Company's Web site at www.texasroadhouse.com.

Forward-looking Statements

Certain statements in this release that are not historical facts, including, without limitation, those relating to our anticipated financial performance, are forward-looking statements that involve risks and uncertainties. Such statements are based upon the current beliefs and expectations of the management of the Company. Actual results may vary materially from those contained in forward-looking statements based on a number of factors including, without limitation, the actual number of restaurants opening, the sales at these and our other company and franchise restaurants, changes in restaurant development or operating costs, such as food and labor, our ability to acquire franchise restaurants, our ability to integrate the franchise restaurants we acquire or other concepts we develop, strength of consumer spending, conditions beyond the Company's control such as weather, natural disasters, disease outbreaks, epidemics or pandemics impacting the Company's customers or food supplies, acts of war or terrorism and other factors disclosed from time to time in the Company's filings with the U.S. Securities and Exchange Commission. Investors should take such risks into account when making investment decisions. Stockholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The Company undertakes no obligation to update any forward-looking statements.

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SOURCE: Texas Roadhouse, Inc.

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