HOUSTON - March 4, 2014 - (BUSINESS WIRE) - Ignite Restaurant Group (NASDAQ:IRG) today reported financial results for the fourth quarter and fiscal year ended December 30, 2013.
Highlights for the fourth quarter of 2013 were as follows:
Highlights for the fiscal year of 2013 were as follows:
Beginning with the first quarter of fiscal 2013, the Company adjusted its quarterly reporting calendar to four 13-week operating periods. Previously, the first three quarters of the Company's fiscal year consisted of 12 weeks each and the fourth quarter consisted of 16 weeks. As a result, financial results for the 13-week quarter ended December 30, 2013 may not be directly comparable to those of the corresponding 16-week quarter ended December 31, 2012. We are able to recast revenues for the fourth quarter of 2012 on a 13-week basis. Each of the full fiscal year periods of 2013 and 2012 consist of 52 weeks.
"Our Joe's Crab Shack and Brick House Tavern + Tap brands continue to perform well in a challenging environment, reflecting our focus on delivering unique, innovative menu items to our guests in an exciting, comfortable atmosphere," commented Ray Blanchette, Chief Executive Officer of Ignite Restaurant Group. "As a result, we've delivered 6 straight years of annual comparable sales growth at Joe's and 8 straight quarters of comparable sales growth at Brick House."
"As we finish our first fiscal year with Macaroni Grill in the Ignite Restaurant portfolio, we believe we have positioned this brand for revenue and margin growth. Under David Catalano's leadership, we strengthened our restaurant leadership, improved our unit level margin management and prepared the concept for the next level of growth. With the recently announced addition of John Gilbert to the Macaroni Grill team and David's transition to lead Brick House, we are excited about the on-going development and refinement of the Macaroni Grill brand and the continued evolution of Brick House."
Total revenues were $186.9 million in the 13-week fourth quarter of 2013. Total revenues in the 16-week fourth quarter of 2012 were $112.6 million. Adjusting 2012 revenues to a comparable 13-week quarterly reporting period, total revenues in the fourth quarter of 2012 increased approximately $97.9 million, or 110.2%. The increase was driven by the acquisition of the Macaroni Grill restaurants, new restaurant development and a 2.5% increase in comparable restaurant sales associated with the Company's legacy concepts when comparing the thirteen weeks ending December 30, 2013 to the comparable thirteen week period in the prior year.
Net loss for the 13-week fourth quarter of 2013 was $4.4 million, or $0.17 per diluted share. The Company's net loss for the fourth quarter of 2013 included approximately $1.1 million related to asset impairments and losses on disposal of assets, partially offset by a $0.6 million gain on an insurance settlement. Excluding the impact of these items, adjusted net loss and adjusted net loss per diluted share (which are non-GAAP financial measures) were $4.1 million and $0.16, respectively, in the 13-week fourth quarter of 2013. Net loss for the 16-week fourth quarter of 2012 was $7.6 million, or $0.30 per diluted share. The Company incurred approximately $6.1 million of charges in the fourth quarter of 2012 related primarily to its debt refinancing, restatement related costs, a restaurant closure and losses associated with damage caused by Hurricane Sandy. Excluding the impact of these items, adjusted net loss and adjusted net loss per diluted share in the 16-week fourth quarter of 2012 was $3.9 million and $0.15, respectively. A reconciliation between GAAP net income (loss) and adjusted net income (loss) is included in the accompanying financial data.
During the fourth quarter of 2013, we successfully opened four Brick House restaurants: one new location in Neptune, New Jersey; one restaurant converted from a Joe's Crab Shack in Houston, Texas; and two locations converted from Macaroni Grill restaurants in San Antonio, Texas and Clearwater, Florida. We also closed three additional Macaroni Grill locations in the fourth quarter of 2013. For the full fiscal year 2013, we opened 14 restaurants: nine Joe's Crab Shacks and five Brick Houses, and closed nine restaurants: two Joe's Crab Shacks (one converted to a Brick House) and seven Macaroni Grills (two converted to Brick Houses).
We will host a conference call to discuss our third quarter financial results today at 5:00 PM Eastern Standard Time. Hosting the call will be Ray Blanchette, Chief Executive Officer, and Michael Dixon, President and Chief Financial Officer. The conference call can be accessed live over the phone by dialing 877-852-6581 or for international callers by dialing 719-325-4750. A replay will be available one hour after the call and can be accessed by dialing 877-870-5176 or 858-384-5517 for international callers; the password is 1355662. The replay will be available until March 11, 2014. The call will also be webcast live from the Company's website at www.igniterestaurants.com under the investor relations section.
At December 30, 2013, Ignite Restaurant Group, Inc. owned and operated 136 Joe's Crab Shacks, 20 Brick House Tavern + Taps and 179 Romano's Macaroni Grills, and franchised 24 Romano's Macaroni Grills within the United States and foreign countries. Each brand offers a variety of high-quality, chef-inspired food and beverages in a distinctive, casual, high-energy atmosphere.
This press release includes "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond the Company's control. The Company cautions you that the forward-looking information presented in this press release is not a guarantee of future events, and that actual events and results may differ materially from those made in or suggested by the forward-looking information contained in this press release. In addition, forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "plan," "seek," "comfortable with," "will," "expect," "intend," "estimate," "anticipate," "believe" or "continue" or the negative thereof or variations thereon or similar terminology. Examples of forward-looking statements and beliefs in this press release include those related to expectations for revenue and margin growth for the Romano's Macaroni Grill concept under new leadership.
A number of important factors could cause actual events and results to differ materially from those contained in or implied by the forward-looking statements included in this press release, including the risk factors discussed in the Company's Form 10-K for the year ended December 30, 2013 as supplemented by the risk factors included in the Company's Quarterly Report on Form 10-Q for the quarterly period ended July 1, 2013 (which can both be found at the SEC's website www.sec.gov) and each such risk factor is specifically incorporated into this press release. Any forward-looking information presented herein is made only as of the date of this press release, and the Company does not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.
With the change in our fiscal quarters, as noted above, the fourth quarter of 2013 represents 13 weeks of activity, while the fourth quarter of 2012 represents 16 weeks of activity. As such, the fourth quarter results of each year may not be comparable. We did not believe it was practicable to fully recast the prior year quarter to 13 weeks. The only financial information that we were able to recast on a 13-week basis for the fourth quarter of 2012 was revenues. We are also able to report restaurant operating weeks and change in comparable restaurant sales for the comparable 13-week period of fiscal year 2012. We believe it is impracticable to recast other financial information because we do not have weekly cutoff procedures that would allow us to distribute expenses or cash flows to the appropriate periods in order to report the prior year fourth quarter on a 13-week basis. Each of the full fiscal year periods of 2013 and 2012 consist of 52 weeks.
The following tables present the consolidated statement of operations for the thirteen and fifty-two weeks ended December 30, 2013 and the sixteen and fifty-two weeks ended December 31, 2012:
View Original for Full Data Table
View Original for Full Data Table
View Original for Full Data Table
View Original for Full Data Table
View Original for Full Data Table
Reconciliation of Non-GAAP Results to GAAP Results
The Company provided detailed explanations of these non-GAAP financial measures, including a discussion of the usefulness and purposes of each measure, in its Form 8-K filed with the Securities and Exchange Commission on March 4, 2014.
View Original for Full Data Table
Fitzhugh Taylor
203-682-8261
fitzhugh.taylor@icrinc.com
SOURCE Ignite Restaurant Group
News Provided by Acquire Media
Ignite Restaurant Group, Inc. (NASDAQ: IRG) owns, and operates restaurants throughout the U.S. Headquartered in Houston, Ignite's portfolio of restaurant concepts currently includes Joe's Crab Shack and Brick House Tavern + Tap.