Texas Roadhouse, Inc. Announces First Quarter 2015 Results

LOUISVILLE, Ky. - (BUSINESS WIRE) - May 4, 2015 - Texas Roadhouse, Inc. (NasdaqGS: TXRH), today announced financial results for the 13 week period ended March 31, 2015.

 

 

 

 

 

 

 

 

 

 

 

 

 

First Quarter

($000's)

 

 

2015

 

 

2014

 

 

% Change

 

 

 

 

 

 

 

 

 

 

Total revenue

 

 

$

460,230

 

 

 

397,142

 

 

16

Income from operations

 

 

 

48,600

 

 

 

40,184

 

 

21

Net income

 

 

 

32,292

 

 

 

26,465

 

 

22

Diluted EPS

 

 

$

0.46

 

 

$

0.37

 

 

23

 

 

 

 

 

 

 

 

 

 

 

 

Results for the first quarter included the following highlights:

  • Diluted earnings per share increased 23.0% to $0.46 from $0.37 in the prior year;
  • Comparable restaurant sales increased 8.9% at company restaurants and 8.0% at franchise restaurants;
  • Three company-owned restaurants were opened, including one Bubba's 33 restaurant; and,
  • Restaurant margin, as a percentage of restaurant sales, decreased 20 basis points to 19.0%. The impact of higher average unit volume was more than offset by commodity inflation of approximately 5.2%, mostly driven by beef.

Kent Taylor, Chief Executive Officer of Texas Roadhouse, Inc., commented, "We are off to a strong start for the year with another quarter of solid revenue growth driven by increasing guest counts and new restaurant development. We credit our success to our value proposition with consumers and our ability to execute at the restaurant level even in the face of continued commodity inflation. Our development plans for 2015 remain on track with 25 to 30 company restaurant openings this year."

2015 Outlook

The Company reported that comparable restaurant sales at company restaurants for the first four weeks of its second quarter of fiscal 2015 increased approximately 8.4% compared to the prior year period.

Management reiterated the following expectations for 2015:

  • Positive comparable restaurant sales growth;
  • 25 to 30 company restaurant openings, including as many as five Bubba's 33 restaurants;
  • Food cost inflation of 3% to 4%;
  • An income tax rate of approximately 30.0% to 31.0% depending on the reinstatement of certain federal tax credits; and
  • Total capital expenditures of $135 million to $145 million.

Conference Call

The Company is hosting a conference call today, May 4, 2015 at 5:00 p.m. Eastern Time to discuss these results. The dial-in number is (877) 795-3604 or (719) 325-4804 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 3067251 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 455 restaurants system-wide in 49 states and four foreign countries. 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; our ability to continue to generate the necessary cash flows to fund our new restaurant growth, continue our share repurchase program and pay a quarterly cash dividend; strength of consumer spending; pending or future legal claims; breaches of security; conditions beyond our control such as weather, natural disasters, disease outbreaks, epidemics or pandemics impacting our customers or food supplies; acts of war or terrorism and other factors disclosed from time to time in our filings with the U.S. Securities and Exchange Commission. Investors should take such risks into account when making investment decisions. Shareholders 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. We undertake no obligation to update any forward-looking statements.

 

Texas Roadhouse, Inc. and Subsidiaries

Condensed Consolidated Statements of Income

(in thousands, except per share data)

(unaudited)

 

 

 

 

 

 

 

 

 

 

13 Weeks Ended

 

 

 

March 31, 2015

 

    

April 1, 2014

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

Restaurant sales

 

 

$

456,293

 

 

$

393,956

Franchise royalties and fees

 

 

 

3,937

 

 

 

3,186

 

 

 

 

 

 

 

Total revenue

 

 

 

460,230

 

 

 

397,142

 

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

 

Restaurant operating costs (excluding depreciation and amortization shown separately below):

 

 

 

 

 

 

Cost of sales

 

 

 

159,980

 

 

 

134,812

Labor

 

 

 

131,404

 

 

 

114,672

Rent

 

 

 

8,979

 

 

 

8,042

Other operating

 

 

 

69,317

 

 

 

60,853

Pre-opening

 

 

 

3,818

 

 

 

4,277

Depreciation and amortization

 

 

 

16,335

 

 

 

14,085

Impairment and closure

 

 

 

-

 

 

 

17

General and administrative

 

 

 

21,797

 

 

 

20,200

 

 

 

 

 

 

 

Total costs and expenses

 

 

 

411,630

 

 

 

356,958

 

 

 

 

 

 

 

Income from operations

 

 

 

48,600

 

 

 

40,184

 

 

 

 

 

 

 

Interest expense, net

 

 

 

515

 

 

 

558

Equity income from investments in unconsolidated affiliates

 

 

 

372

 

 

 

212

 

 

 

 

 

 

 

Income before taxes

 

 

 

48,457

 

 

 

39,838

Provision for income taxes

 

 

 

14,876

 

 

 

12,230

 

 

 

 

 

 

 

Net income including noncontrolling interests

 

 

$

33,581

 

 

$

27,608

Less: Net income attributable to noncontrolling interests

 

 

 

1,289

 

 

 

1,143

Net income attributable to Texas Roadhouse, Inc. and subsidiaries

 

 

$

32,292

 

 

$

26,465

 

 

 

 

 

 

 

Net income per common share attributable to Texas Roadhouse, Inc. and subsidiaries:

 

 

 

 

 

 

Basic

 

 

$

0.46

 

 

$

0.38

Diluted

 

 

$

0.46

 

 

$

0.37

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

Basic

 

 

 

69,841

 

 

 

70,132

Diluted

 

 

 

70,528

 

 

 

71,080

 

 

 

 

 

 

 

 

 

 

 

Texas Roadhouse, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

 

 

 

 

 

 

 

 

 

 

March 31, 2015

 

    

December 30, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

$

98,512

 

 

$

86,122

Other current assets

 

 

 

47,044

 

 

 

61,604

Property and equipment, net

 

 

 

668,088

 

 

 

649,637

Goodwill

 

 

 

116,571

 

 

 

116,571

Intangible assets, net

 

 

 

5,859

 

 

 

6,203

Other assets

 

 

 

24,195

 

 

 

23,005

 

 

 

 

 

 

 

Total assets

 

 

$

960,269

 

 

$

943,142

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current maturities of long-term debt

 

 

 

133

 

 

 

129

Other current liabilities

 

 

 

208,170

 

 

 

215,842

Long-term debt, excluding current maturities

 

 

 

50,659

 

 

 

50,693

Other liabilities

 

 

 

61,543

 

 

 

61,522

Texas Roadhouse, Inc. and subsidiaries stockholders' equity

 

 

 

632,583

 

 

 

607,892

Noncontrolling interests

 

 

 

7,181

 

 

 

7,064

 

 

 

 

 

 

 

Total liabilities and equity

 

 

$

960,269

 

 

$

943,142

 

 

 

 

 

 

 

 

 

 

 

Texas Roadhouse, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

 

 

 

 

 

 

 

 

 

13 Weeks Ended

 

 

 

March 31, 2015

 

 

April 1, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from operating activities:

 

 

 

 

 

 

Net income including noncontrolling interests

 

 

$

33,581

 

 

 

$

27,608

 

Adjustments to reconcile net income to net cash provided by operating activities

 

 

 

 

 

 

Depreciation and amortization

 

 

 

16,335

 

 

 

 

14,085

 

Share-based compensation expense

 

 

 

4,904

 

 

 

 

3,621

 

Other noncash adjustments

 

 

 

(41

)

 

 

 

(284

)

Change in working capital

 

 

 

2,913

 

 

 

 

759

 

Net cash provided by operating activities

 

 

 

57,692

 

 

 

 

45,789

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

Capital expenditures - property and equipment

 

 

 

(33,437

)

 

 

 

(23,087

)

Proceeds from sale of property and equipment, including insurance proceeds

 

 

 

9

 

 

 

 

-

 

Net cash used in investing activities

 

 

 

(33,428

)

 

 

 

(23,087

)

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

Repurchase shares of common stock

 

 

 

-

 

 

 

 

(24,172

)

Dividends paid

 

 

 

(10,443

)

 

 

 

-

 

Other financing activities

 

 

 

(1,431

)

 

 

 

(2,708

)

Net cash used in financing activities

 

 

 

(11,874

)

 

 

 

(26,880

)

 

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

 

 

 

12,390

 

 

 

 

(4,178

)

Cash and cash equivalents - beginning of period

 

 

 

86,122

 

 

 

 

94,874

 

Cash and cash equivalents - end of period

 

 

$

98,512

 

 

 

$

90,696

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Texas Roadhouse, Inc. and Subsidiaries

Supplemental Financial and Operating Information

($ amounts in thousands, except weekly sales by group)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Quarter

 

 

Change

 

 

 

2015

 

 

2014

 

 

vs LY

 

 

 

 

 

 

 

 

 

 

 

Restaurant openings

 

 

 

 

 

 

 

 

 

 

Company - Texas Roadhouse

 

 

 

2

 

 

 

 

6

 

 

 

(4

)

Company - Bubba's 33

 

 

 

1

 

 

 

 

0

 

 

 

1

 

Company - Other

 

 

 

0

 

 

 

 

0

 

 

 

0

 

Franchise - Texas Roadhouse

 

 

 

0

 

 

 

 

1

 

 

 

(1

)

Total

 

 

 

3

 

 

 

 

7

 

 

 

(4

)

 

 

 

 

 

 

 

 

 

 

 

Restaurants open at the end of the quarter

 

 

 

 

 

 

 

 

 

 

Company - Texas Roadhouse

 

 

 

370

 

 

 

 

351

 

 

 

19

 

Company - Bubba's 33

 

 

 

4

 

 

 

 

1

 

 

 

3

 

Company - Other

 

 

 

1

 

 

 

 

0

 

 

 

1

 

Franchise - Texas Roadhouse

 

 

 

79

 

 

 

 

75

 

 

 

4

 

Total

 

 

 

454

 

 

 

 

427

 

 

 

27

 

 

 

 

 

 

 

 

 

 

 

 

Company-owned restaurants

 

 

 

 

 

 

 

 

 

 

Restaurant sales

 

 

$

456,293

 

 

 

$

393,956

 

 

 

15.8

%

Store weeks

 

 

 

4,857

 

 

 

 

4,524

 

 

 

7.4

%

Comparable restaurant sales growth (1)

 

 

 

8.9

%

 

 

 

2.8

%

 

 

 

 

Texas Roadhouse restaurants only:

 

 

 

 

 

 

 

 

 

 

Comparable restaurant sales growth (1)

 

 

 

8.8

%

 

 

 

2.8

%

 

 

 

 

Average unit volume (2)

 

 

$

1,220

 

 

 

$

1,120

 

 

 

9.0

%

Weekly sales by group:

 

 

 

 

 

 

 

 

 

 

Comparable restaurants (330 units)

 

 

$

93,756

 

 

 

 

 

 

 

 

Average unit volume restaurants (28 units) (3)

 

 

$

95,047

 

 

 

 

 

 

 

 

Restaurants less than 6 months old (12 units)

 

 

$

101,832

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restaurant operating costs (as a % of restaurant sales)

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

 

 

35.1

%

 

 

 

34.2

%

 

 

84

 bps

Labor

 

 

 

28.8

%

 

 

 

29.1

%

 

 

(31

)bps

Rent

 

 

 

2.0

%

 

 

 

2.0

%

 

 

(7

)bps

Other operating

 

 

 

15.2

%

 

 

 

15.4

%

 

 

(26

)bps

Total

 

 

 

81.0

%

 

 

 

80.8

%

 

 

20

 bps

 

 

 

 

 

 

 

 

 

 

 

Restaurant margin (4)

 

 

 

19.0

%

 

 

 

19.2

%

 

 

(20

)bps

 

 

 

 

 

 

 

 

 

 

 

Restaurant margin ($ in thousands)

 

 

$

86,613

 

 

 

$

75,577

 

 

 

14.6

%

Restaurant margin $/Store week

 

 

$

17,833

 

 

 

$

16,706

 

 

 

6.7

%

 

 

 

 

 

 

 

 

 

 

 

Franchise-owned restaurants

 

 

 

 

 

 

 

 

 

 

Franchise royalties and fees

 

 

$

3,937

 

 

 

$

3,186

 

 

 

23.6

%

Store weeks

 

 

 

1,027

 

 

 

 

962

 

 

 

6.8

%

Comparable restaurant sales growth (1)

 

 

 

8.0

%

 

 

 

3.8

%

 

 

 

 

Average unit volume (2)

 

 

$

1,306

 

 

 

$

1,190

 

 

 

9.8

%

 

 

 

 

 

 

 

 

 

 

 

Pre-opening expense

 

 

$

3,818

 

 

 

$

4,277

 

 

 

(10.7

)%

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

$

16,335

 

 

 

$

14,085

 

 

 

16.0

%

As a % of revenue

 

 

 

3.5

%

 

 

 

3.5

%

 

 

-

 bps

 

 

 

 

 

 

 

 

 

 

 

General and administrative expenses

 

 

$

21,797

 

 

 

$

20,200

 

 

 

7.9

%

As a % of revenue

 

 

 

4.7

%

 

 

 

5.1

%

 

 

(35

)bps

 

 

 

 

 

 

 

 

 

 

 

(1) Comparable restaurant sales growth reflects the change in year-over-year sales for restaurants open a full 18 months before the beginning of the period measured, excluding sales from restaurants closed during the period.

(2) Average unit volume includes sales from Texas Roadhouse restaurants open for a full six months before the beginning of the period measured, excluding any sales at restaurants closed during the period.

(3) Average unit volume restaurants include restaurants open a full six to 18 months before the beginning of the period measured.

(4) Restaurant margin represents restaurant sales less cost of sales, labor, rent and other operating costs (as a percentage of restaurant sales). Restaurant margin is widely regarded in the restaurant industry as a useful metric by which to evaluate restaurant-level operating efficiency and performance. Restaurant margin is not a measurement determined in accordance with GAAP and should not be considered in isolation, or as an alternative, to income from operations or other similarly titled measures of other companies.

 

 

 

 

 

 

 

 

 

 

 

Amounts may not foot due to rounding.

SOURCE Texas Roadhouse, Inc.

Contacts:

Tonya Robinson
Texas Roadhouse, Inc.
Investor Relations
502-515-7269

Travis Doster
Texas Roadhouse, Inc.
Media Relations
502-638-5457

 

###

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