BBQ Holdings, Inc. Announces Acquisition Of Village Inn and Bakers Square
Restaurants and Updates Earnings Guidance For Fiscal Year 2021
MINNEAPOLIS, June 28, 2021 // GLOBE NEWSWIRE // - BBQ Holdings, Inc. (NASDAQ: BBQ) (the “Company”), an innovating global owner and operator of restaurants, provided revenue and earnings guidance in an updated investor presentation filed via Form 8-K on June 25, 2021, reflecting the announcement of the acquisition of Village Inn and Bakers Square, as well as improved operations within BBQ Holdings, Inc’s existing brands. Guidance for its fiscal year 2021 is as follows:
Included in the transaction are 114 franchised Village Inn restaurants, 21 Corporate Village Inn restaurants, and 13 Corporate Bakers Square restaurants.
We are increasing 2021 guidance as follows:
- Net Restaurant Revenue from $155-$160 mm to $180-$185 mm
- Net Income from $2.8-$3.2 mm to $5.1-$5.5 mm
- Cash EBITDA from $10.0-$10.5 mm to $13.5-$14.0 mm ($12.0-$12.5 mm from current BBQ operations and $1.5 mm 2021 pro-rata contribution from the Acquisition)
- An Investor Presentation can be found online.
We plan to launch the new Village Inn prototype for growth in early 2022 and begin expanding the sale of Bakers Square pies through retail and other restaurant kiosks in Q4 of 2021.
Jeff Crivello, CEO, commented, “We are excited to increase our revenue, and earnings guidance for fiscal year 2021. This guidance is a reflection of our organic and M&A growth plans. We believe this acquisition will be accretive to our earnings and that there is a significant amount of pent-up demand for dining, and we expect that demand to grow throughout the year at our existing brands. We will provide future guidance as the year develops.”
Non-GAAP Financial Measures
To supplement its consolidated financial statements, which are prepared and presented in accordance with accounting principles generally accepted in the United States (“GAAP”), the Company uses non-GAAP measures including those indicated below. These non-GAAP measures exclude significant expenses and income that are required by GAAP to be recorded in the Company’s consolidated financial statements and are subject to inherent limitations. By providing non-GAAP measures, together with a reconciliation to the most comparable GAAP measure, the Company believes that it is enhancing investors’ understanding of the Company’s business and results of operations. These measures are not intended to be considered in isolation of, as substitutes for, or superior to, financial measures prepared and presented in accordance with GAAP. The non-GAAP measures presented may be different from the measures used by other companies. The Company urges investors to review the reconciliation of its non-GAAP measures to the most directly comparable GAAP measure, included in the foregoing financial information.
Cash EBITDA is net income (loss), plus asset impairment, estimated lease termination and other closing costs, settlement agreements, depreciation and amortization, interest expense, net, net (loss) gain on disposal of equipment, stock-based compensation, severance and provision (benefit) for income taxes.
Statements in this press release that are not strictly historical, including but not limited to statements regarding the timing of the Company’s restaurant openings and the timing or success of refranchising plans, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, which may cause the Company’s actual results to differ materially from expected results. Although the Company believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectation will be attained. Factors that could cause actual results to differ materially from Famous Dave’s expectation include financial performance, restaurant industry conditions, execution of restaurant development and construction programs, franchisee performance, changes in local or national economic conditions, availability of financing, governmental approvals and other risks detailed from time to time in the Company’s SEC reports.
Cash EBITDA Non-GAAP Reconciliation
Cash EBITDA Guidance Range
|(dollars in thousands)||FY 2021||Pro-forma
|Depreciation and amortization||4,690||700||5,390||4,690||700||5,390|
|Interest expense, net||500||0||500||500||0||500|
|Provision for income taxes||1,612||0||1,612||1,737||0||1,737|
SOURCE BBQ Holdings, Inc.
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