HOUSTON - May 4, 2016 - (BUSINESS WIRE) - Ignite Restaurant Group (NASDAQ:IRG) today reported financial results for the first quarter ended March 28, 2016.
Highlights for the first quarter of 2016 were as follows:
Robert S. Merritt, Chief Executive Officer of Ignite Restaurant Group, stated, "We are encouraged by the results that we continue to experience from our weekday value initiatives including the All You Can Eat crab offering on Wednesdays. We generated positive comparable restaurant sales at Joe's for most of the quarter but were negatively affected by the Easter holiday shift into March this year. We rolled out a new menu this week at Joe's and Brick House that we believe will positively impact sales and execution in both brands. Both of the menus have a reduced number of items which will provide an opportunity to reduce ticket times while also offering the items that are most popular with our guests."
Total revenues were $117.9 million in the first quarter of 2016, a decrease of 3.5% compared to $122.2 million in the first quarter of last year.
Loss from continuing operations for the first quarter of 2016 was $1.6 million, or $0.06 per diluted share. The Company's loss from continuing operations for the first quarter of 2016 included certain non-recurring items, the most significant of which is a $0.5 million deferred tax valuation allowance. Excluding the impact of these items, adjusted loss from continuing operations and adjusted loss from continuing operations per diluted share (which are non-GAAP financial measures), net of tax, were $1.1 million and $0.04, respectively, in the first quarter of 2016.
Loss from continuing operations for the first quarter of 2015 was $3.2 million, or $0.12 per diluted share. The Company's loss from continuing operations for the first quarter of 2015 also included certain non-recurring items, the most significant of which is a $2.1 million deferred tax valuation allowance. Excluding the impact of these items, adjusted loss from continuing operations and adjusted loss from continuing operations per diluted share (which are non-GAAP financial measures), net of tax, were $1.0 million and $0.04, respectively, in the first quarter of 2015.
During the first quarter of 2016, the Company opened three Brick House restaurants (located in Latham, NY, Sugarland, TX, and Methuen, MA), all of which were conversions from Joe's restaurants.
At March 28, 2016, the Company had $7.5 million of cash and approximately $25.9 million of available borrowing capacity under its current credit facility. The Company was in compliance with the financial covenants under the credit facility.
Ignite will host a conference call to discuss first quarter financial results today at 5:00 PM Eastern Standard Time. Hosting the call will be Robert S. Merritt, Chief Executive Officer, and Brad Leist, Chief Financial Officer.
The conference call can be accessed live over the phone by dialing 800-289-0438 or for international callers by dialing 913-312-0636. 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 4318629. The replay will be available until Wednesday, May 11, 2016. The call will also be webcast live from the Company's website at www.igniterestaurants.com under the "Investors" section.
Ignite Restaurant Group, Inc., headquartered in Houston, Texas, operates a portfolio of restaurant concepts, including Joe's Crab Shack and Brick House Tavern + Tap, in a diverse set of markets across the United States. Each brand offers a variety of high-quality food in a distinctive, casual, high-energy atmosphere. For more information on Ignite and its distinctive brands, visit www.igniterestaurants.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 28, 2015 (which can be found at the SEC's website www.sec.gov). 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 weeks ended March 28, 2016 and March 30, 2015, and selected consolidated balance sheet information as of March 28, 2016 and December 28, 2015:
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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 May 4, 2016.
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SOURCE Ignite Restaurant Group
Fitzhugh Taylor
Investor Relations
Ignite Restaurant Group, Inc.
203-682-8261
fitzhugh.taylor@icrinc.com
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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.