HOUSTON - October 29, 2014 - (BUSINESS WIRE) - Ignite Restaurant Group (NASDAQ:IRG) today reported financial results for the third quarter ended September 29, 2014.
Ray Blanchette, Chief Executive Officer of Ignite Restaurant Group, stated, “With the new credit facility we put in place early in the quarter, we believe we have the near term financial flexibility to grow Brick House Tavern + Tap, while addressing brand specific issues at Joe’s and Mac Grill. I am excited to announce a major new counter service initiative at Romano’s Macaroni Grill. This program was just rolled out nationwide and will be publicly introduced with national TV advertising starting the week of November third.”
Mr. Blanchette continued, “Romano’s Macaroni Grill’s third quarter results reflected the conscious decision to walk away from unprofitable sales by not repeating the heavy discounting we tested in the prior year. Joe’s Crab Shack’s decrease in comparable store sales was largely focused in the northeast, where the markets are settling in after three years of heavy regional growth. Brick House Tavern + Tap continued its strong run with its eleventh consecutive quarter of same store sales growth.”
Net loss for the third quarter of 2014 was $6.5 million, or $0.25 per diluted share. The Company’s net loss for the third quarter of 2014 included approximately $3.0 million of closure-related expenses due to restaurant conversions and closures; approximately $2.2 million of expenses related to a debt issuance write-off; a $1.8 million asset impairment charge; and approximately $0.4 million in transaction expenses. Excluding the impact of these items, adjusted net loss and adjusted net loss per diluted share (which are non-GAAP financial measures) were $2.1 million and $0.08, respectively, in the third quarter of 2014.
Net loss for the third quarter of 2013 was $1.9 million, or a loss of $0.08 per diluted share. The Company incurred approximately $0.8 million of acquisition related costs in connection with the acquisition of Macaroni Grill; an approximate $0.6 million loss on the disposal of fixed assets related to restaurant conversions, remodels and closures; approximately $0.5 million of expenses related to a proposed secondary stock offering and a $0.3 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 $1.0 million and $0.04, respectively.
A reconciliation between GAAP net income (loss) and adjusted net income (loss) is included in the accompanying financial data.
During the third quarter of 2014, the Company opened two Joe’s Crab Shack restaurants, and one Brick House Tavern + Tap converted from a Macaroni Grill. Seven company-owned and one franchised Macaroni Grill locations closed during the quarter. Subsequent to the end of the third quarter, two additional company-owned Macaroni Grill locations were closed for a total of 14 Macaroni Grill closures during 2014. One Macaroni Grill that closed in a previous quarter is currently under construction and will re-open as a Brick House restaurant in late 2014 or early 2015.
At September 29, 2014, the Company had $32.9 million of cash and approximately $23.7 million of available borrowing capacity under its current credit facility. The company was in compliance with the credit facility’s financial covenants.
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 888-221-9542 or for international callers by dialing 913-312-1513. 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 6720636. The replay will be available until November 5, 2014. The call will also be webcast live from the Company's website at www.igniterestaurants.com under the “Investors” section.
Ignite Restaurant Group, Inc. (NASDAQ:IRG) owns and operates over 300 restaurants throughout the U.S. Headquartered in Houston, Ignite's portfolio of restaurant concepts includes Joe's Crab Shack, Romano's Macaroni Grill and Brick House Tavern + Tap. Each brand offers a variety of high-quality, chef-inspired food and beverages in a distinctive, casual, high-energy atmosphere. The Company is also a franchisor for Macaroni Grill in locations in the U.S., U.S. territories and internationally. For more information on Ignite and its distinctive brands visit www.igniterestaurantgroup.com.
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.
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 (which can 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.
The following tables present the consolidated statements of operations and selected other data for the thirteen and thirty-nine weeks ended September 29, 2014 and September 30, 2013, and selected consolidated balance sheet information as of September 29, 2014 and December 30, 2013:
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Reconciliation of Non-GAAP Results to GAAP Results
The Company provided detailed explanation of this non-GAAP financial measure, including a discussion of the usefulness and purpose of the measure, in its Form 8-K filed with the Securities and Exchange Commission on October 29, 2014.
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SOURCE Ignite Restaurant Group
Fitzhugh Taylor
Investor Relations
203-682-8261
fitzhugh.taylor@icrinc.com
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.