Bojangles’, Inc. (Bojangles’) (NASDAQ:BOJA) today announced
financial results for the 14-week fourth fiscal quarter and 53-week
fiscal year ended December 31, 2017. Bojangles’ also provided
annual guidance for the 52-week fiscal year 2018 ending on December
30, 2018.
Highlights for the
Fourteen-Week Fourth Fiscal Quarter
2017 Compared to the
Thirteen-Week Fourth Fiscal Quarter
2016
- Total revenues increased 6.2% to $148.1 million from $139.4
million in the prior year fiscal quarter;
- System-wide comparable restaurant sales decreased 3.1%, while
company-operated comparable restaurant sales decreased 4.4% and
franchised comparable restaurant sales decreased 2.2%;
- 15 system-wide restaurants were opened – 9 company-operated
restaurants and 6 franchised restaurants;
- Net Income* was $48.8 million as compared to $9.8 million in
the prior year fiscal quarter;
- Diluted Net Income per Share* was $1.27 as compared to $0.26 in
the prior year fiscal quarter;
- Adjusted Net Income** was $8.7 million as compared to $10.6
million in the prior year fiscal quarter;
- Adjusted Diluted Net Income per Share** was $0.23 as compared
to $0.28 in the prior year fiscal quarter; and
- Adjusted EBITDA** was $21.9 million as compared to $24.6
million in the prior year fiscal quarter.
Highlights for the Fifty-Three Week
Fiscal Year 2017 Compared to the Fifty-Two Week Fiscal Year
2016
- Total revenues increased 2.9% to $547.4 million from $531.9
million in the prior fiscal year;
- System-wide comparable restaurant sales decreased 2.1%, while
company-operated comparable restaurant sales decreased 3.7% and
franchised comparable restaurant sales decreased 1.1%;
- 52 system-wide restaurants were opened – 26 company-operated
restaurants and 26 franchised restaurants; 4 company-operated
restaurants closed, of which 3 were relocations, and 6 units were
refranchised from company-operated to franchised;
- Net Income* was $72.0 million as compared to $37.7 million in
the prior fiscal year;
- Diluted Net Income per Share* was $1.87 as compared to $1.00 in
the prior fiscal year;
- Adjusted Net Income** was $31.9 million as compared to $37.9
million in the prior fiscal year;
- Adjusted Diluted Net Income per Share** was $0.83 as compared
to $1.00 in the prior fiscal year; and
- Adjusted EBITDA** was $76.7 million as compared to $88.9
million in the prior fiscal year.
* The fourth fiscal quarter ended December 31,
2017 and the fiscal year ended December 31, 2017 each included a
deferred income tax benefit of $40.1 million, or $1.04 per diluted
share, related to the Tax Cuts and Jobs Act.
** Descriptions of Adjusted Net Income, Adjusted
Diluted Net Income per Share, Adjusted EBITDA and other non-GAAP
financial measures are provided in this release under “Use and
Definition of Non-GAAP Measures,” and reconciliations to GAAP
figures are provided in the tables at the end of this release.
Fourth Fiscal Quarter 2017 Financial
Review
System-wide comparable restaurant sales
decreased 3.1%, consisting of a 4.4% decrease in company-operated
comparable restaurant sales and a 2.2% decrease in franchised
comparable restaurant sales. The comparable restaurant sales
decrease at company-operated restaurants was composed of a decrease
in transactions, partially offset by increases in price and
mix.
Total revenues increased 6.2% to $148.1 million
in the fourth fiscal quarter of 2017 from $139.4 million in the
prior year fiscal quarter. The increase was primarily due to a net
additional 48 system-wide restaurants at December 31, 2017 compared
to December 25, 2016 and an incremental fourteenth operating week
during the fourth fiscal quarter 2017, partially offset by
comparable restaurant sales declines at our company-operated and
franchised restaurants.
Company-operated restaurant revenues increased
6.1% to $140.3 million in the fourth fiscal quarter of 2017 from
$132.2 million in the prior year fiscal quarter. Franchise royalty
revenues increased 11.3% to $7.6 million in the fourth fiscal
quarter of 2017 from $6.8 million in the prior year fiscal
quarter.
Restaurant contribution, a non-GAAP measure,
decreased 13.2% to $22.5 million in the fourth fiscal quarter of
2017 from $26.0 million in the prior year fiscal quarter. As a
percentage of company restaurant revenues, restaurant contribution
margin, a non-GAAP measure, decreased to 16.1% in the fourth fiscal
quarter of 2017 from 19.6% in the prior year fiscal quarter.
General and administrative expenses decreased
9.6% to $9.8 million in the fourth fiscal quarter of 2017 from
$10.9 million in the prior year fiscal quarter.
Net Income increased to $48.8 million in the
fourth fiscal quarter of 2017 compared to $9.8 million in the prior
year fiscal quarter. During the fourth fiscal quarter of 2017, the
Company recognized a deferred income tax benefit of $40.1 million
as a result of the revaluation of its deferred tax assets and
liabilities associated with the enactment of the Tax Cuts and Jobs
Act. Diluted Net Income per Share increased to $1.27 in the fourth
fiscal quarter of 2017 compared to $0.26 in the prior year fiscal
quarter.
Adjusted Net Income, a non-GAAP measure,
decreased 17.9% to $8.7 million in the fourth fiscal quarter of
2017 compared to $10.6 million in the prior year fiscal quarter.
Adjusted Diluted Net Income per Share decreased 17.9% to $0.23 in
the fourth fiscal quarter of 2017 compared to $0.28 in the prior
year fiscal quarter.
Adjusted EBITDA, a non-GAAP measure, decreased
10.8% to $21.9 million in the fourth fiscal quarter of 2017 from
$24.6 million in the prior year fiscal quarter.
Fiscal Year 2018
Guidance
Bojangles’ is providing an annual outlook for
the 52-week period ending on December 30, 2018:
- Total revenues of $550.0 million to $560.0 million (including
approximately $11.0 million of franchise marketing and co-op
advertising contribution revenues due to the change in the revenue
recognition rules);
- System-wide comparable restaurant sales of negative low-single
digits to flat;
- The opening of 30 to 40 system-wide restaurants, comprised of 6
to 10 company-operated restaurants and 24 to 30 franchised
restaurants;
- Restaurant contribution margin of 14.0% to 14.5%;
- General and administrative expenses of $43.0 million to $43.5
million;
- Cash capital expenditures of $11.5 million to $12.5
million;
- Adjusted Diluted Net Income per Share of $0.64 to $0.72;
and
- Adjusted EBITDA of $64.0 million to $68.0 million.
We have not reconciled guidance for Adjusted
Diluted Net Income per Share or Adjusted EBITDA to the
corresponding GAAP financial measures because we do not provide
guidance for the various reconciling items. We are unable to
provide guidance for these reconciling items because we cannot
determine their probable significance, as certain items are outside
of our control and cannot be reasonably predicted due to the fact
that these items could vary significantly from period to period.
Accordingly, reconciliations to the corresponding GAAP financial
measures are not available without unreasonable effort.
Conference Call and Webcast
Today
Bojangles’ will host a conference call and
webcast to discuss the fourth fiscal quarter 2017 and fiscal year
2017 results, as well as fiscal year 2018 guidance today at 5:00
p.m. Eastern Time. The conference call dial-in number is
201-493-6725. A telephone replay will be available through Friday,
April 6, 2018 and may be accessed by dialing 412-317-6671. The
conference ID is 13675579.
The conference call will also be webcast live
and later archived on the Investors section of our website at
www.bojangles.com.
About Bojangles’, Inc.
Bojangles’, Inc. is a highly differentiated and
growing restaurant operator and franchisor dedicated to serving
customers high-quality, craveable food made from our Southern
recipes, including breakfast served All Day, Every Day. Founded in
1977 in Charlotte, N.C., Bojangles’® serves menu items such as
made-from-scratch biscuit breakfast sandwiches, delicious
hand-breaded bone-in chicken, flavorful fixin’s (sides) and
Legendary Iced Tea®. At December 31, 2017, Bojangles’ had 764
system-wide restaurants, of which 325 were company-operated and 439
were franchised restaurants, primarily located in the Southeastern
United States. For more information, visit www.bojangles.com or
follow Bojangles’ on Facebook and Twitter.
Use and Definition of
Non-GAAP Measures
We utilize certain non-GAAP measures when
assessing the operational strength and the performance of our
business. We believe these non-GAAP measures assist our board of
directors, management and investors in comparing our operating
performance, on a consistent basis from period to period, by
isolating the effects of certain items that vary from period to
period without any correlation to core operating performance or
that vary significantly among similar companies. Bojangles’
cautions that non-GAAP measures should be considered in addition
to, but not as a substitute for, reported GAAP results.
Restaurant contribution represents our operating
income excluding the impact of franchise royalty revenues, other
franchise revenues, general and administrative expenses,
depreciation and amortization, impairment and (gain) loss on
disposal of property and equipment and other, as identified by the
reconciliation table below. Restaurant contribution margin is
defined as restaurant contribution as a percentage of
company-operated restaurant revenues. Restaurant contribution and
restaurant contribution margin are supplemental measures of
operating performance of our company-operated restaurants and our
calculations thereof may not be comparable to those reported by
other companies. Restaurant contribution and restaurant
contribution margin have limitations as analytical tools and should
not be considered in isolation or as substitutes for analysis of
our results as reported under GAAP. Included with the
reconciliations to GAAP figures provided in the tables at the end
of this release is a reconciliation of our restaurant contribution
to the line item on the condensed consolidated statements of
operations entitled “Company-operated restaurant revenues,” which
we believe is the most directly comparable GAAP measure on our
condensed consolidated statements of operations.
Adjusted Net Income represents company net
income before items that we do not consider representative of our
ongoing operating performance as identified in the reconciliation
table below. Adjusted Diluted Net Income per Share represents
company diluted net income per share before items that we do not
consider representative of our ongoing operating performance as
identified in the reconciliation table below.
EBITDA represents company net income before
interest expense (net of interest income), provision for income
taxes and depreciation and amortization. Adjusted EBITDA represents
company net income before interest expense (net of interest
income), provision for income taxes, depreciation and amortization,
items that we do not consider representative of our ongoing
operating performance and certain non-cash items, as identified in
the reconciliation table below.
Adjusted Net Income, Adjusted Diluted Net Income
per Share, EBITDA and Adjusted EBITDA are supplemental measures of
our performance that are neither required by, nor presented in
accordance with, GAAP. Adjusted Net Income, Adjusted Diluted Net
Income per Share, EBITDA and Adjusted EBITDA are not measurements
of our financial performance under GAAP and should not be
considered as alternatives to net income, operating income or any
other performance measures derived in accordance with GAAP or as
alternatives to cash flow from operating activities as a measure of
our liquidity. Adjusted Net Income, Adjusted Diluted Net Income per
Share, EBITDA and Adjusted EBITDA have limitations as analytical
tools, and should not be considered in isolation, or as substitutes
for analysis of our results as reported under GAAP. In addition, in
evaluating Adjusted Net Income, Adjusted Diluted Net Income per
Share, EBITDA and Adjusted EBITDA, you should be aware that in the
future we will incur expenses or charges such as those added back
to calculate Adjusted Net Income, Adjusted Diluted Net Income per
Share, EBITDA and Adjusted EBITDA.
Forward-Looking Statements
This release contains forward-looking
statements. All statements other than statements of historical or
current facts included in this release are forward-looking
statements. Forward-looking statements discuss our current
expectations, projections and guidance relating to our financial
condition, results of operations, plans, objectives, future
performance and business. These statements may be preceded by,
followed by or include the words “aim,” “anticipate,” “believe,”
“estimate,” “expect,” “forecast,” “intend,” “outlook,” “plan,”
“potential,” “project,” “projection,” “seek,” “may,” “could,”
“would,” “will,” “should,” “can,” “can have,” “likely,” the
negatives thereof and other words and terms of similar meaning.
Forward-looking statements are inherently
subject to risks, uncertainties and assumptions; they are not
guarantees of performance. Actual results may differ materially
from these expectations due to risks relating to, among other
risks, our vulnerability to changes in consumer preferences and
economic conditions; our ability to open restaurants in new and
existing markets and expand our franchise system; our ability to
generate comparable restaurant sales growth; financial or other
difficulties, which could cause our restaurants and our
franchisees’ restaurants to close; our ability to generate
increased sales or profits from new menu items, advertising
campaigns, changes in discounting strategy, technology initiatives
or restaurant designs and remodels; cancellation of or delay in
anticipated future restaurant openings; our reliance on, limited
degree of control over and potential responsibility for, our
franchisees; increases in the cost of chicken, pork, dairy, wheat,
corn and other products; our ability to compete successfully with
other quick-service and fast-casual restaurants; our vulnerability
to conditions in the Southeastern United States; negative
publicity, whether or not valid; concerns about food safety and
quality and about food-borne illnesses, including adverse public
perception due to the occurrence of avian flu, swine flu or other
food-borne illnesses, such as salmonella, E. coli, or others;
changes in employment and labor laws; labor shortages and increases
in labor costs; the impact of litigation, including wage and hour
class action lawsuits; and our dependence upon frequent and timely
deliveries of restaurant food and other supplies. For further
details and discussion of these and other risks and uncertainties,
see our Annual Report on Form 10-K for the fiscal year ended
December 25, 2016, which was filed with the SEC on March 7, 2017,
and which is available at www.sec.gov. You should not place undue
reliance on these statements. We have based these forward-looking
statements on our current expectations and projections about future
events. Although we believe that our assumptions made in connection
with the forward-looking statements are reasonable, we cannot
assure you that the assumptions and expectations will prove to be
correct.
All forward-looking statements are expressly
qualified in their entirety by the foregoing cautionary statements.
In addition, all forward-looking statements speak only as of the
date of this earnings release. We undertake no obligation to update
or revise publicly any forward-looking statements, whether as a
result of new information, future events or otherwise other than as
required under the federal securities laws.
BOJANGLES’, INC. AND
SUBSIDIARIES |
|
Unaudited Condensed Consolidated Balance
Sheets |
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
December
31, 2017 |
|
December
25, 2016 |
|
Current
assets: |
|
|
|
|
|
|
|
Cash and
cash equivalents |
$ |
14,052 |
|
|
13,898 |
|
|
Accounts
and vendor receivables, net |
|
5,863 |
|
|
5,421 |
|
|
Accounts
receivable, related parties, net |
|
553 |
|
|
386 |
|
|
Inventories, net |
|
3,619 |
|
|
3,326 |
|
|
Other
current assets |
|
2,408 |
|
|
3,033 |
|
|
|
|
|
|
Total
current assets |
|
26,495 |
|
|
26,064 |
|
|
Property
and equipment, net |
|
49,423 |
|
|
52,275 |
|
|
Goodwill |
|
|
|
161,140 |
|
|
161,140 |
|
|
Brand |
|
|
|
|
290,500 |
|
|
290,500 |
|
|
Franchise
rights, net |
|
23,146 |
|
|
24,243 |
|
|
Favorable
leases, net |
|
688 |
|
|
981 |
|
|
Other
noncurrent assets |
|
4,076 |
|
|
4,569 |
|
|
|
|
|
|
Total
assets |
$ |
555,468 |
|
|
559,772 |
|
Liabilities and Stockholders’
Equity |
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
Accounts
payable |
$ |
12,956 |
|
|
16,818 |
|
|
Accrued
expenses |
|
17,797 |
|
|
17,940 |
|
|
Current
maturities of long-term debt |
|
— |
|
|
2,132 |
|
|
Current
maturities of capital lease obligations |
|
8,502 |
|
|
7,299 |
|
|
Other
current liabilities |
|
651 |
|
|
4,390 |
|
|
|
|
|
|
Total
current liabilities |
|
39,906 |
|
|
48,579 |
|
|
Long-term
debt, less current maturities and deferred debt issuance costs,
net |
|
123,376 |
|
|
153,630 |
|
|
Deferred
income taxes |
|
71,190 |
|
|
111,312 |
|
|
Capital
lease obligations, less current maturities |
|
22,434 |
|
|
22,524 |
|
|
Other
noncurrent liabilities |
|
13,458 |
|
|
12,937 |
|
|
|
|
|
|
Total
liabilities |
|
270,364 |
|
|
348,982 |
|
Stockholders’ equity: |
|
|
|
|
|
|
Preferred
stock |
|
— |
|
|
— |
|
|
Common
stock |
|
370 |
|
|
365 |
|
|
Treasury
stock |
|
(2,000 |
) |
|
— |
|
|
Additional
paid-in capital |
|
128,895 |
|
|
124,802 |
|
|
Retained
earnings |
|
157,383 |
|
|
85,377 |
|
|
Accumulated
other comprehensive income |
|
456 |
|
|
246 |
|
|
|
|
|
|
Total
stockholders’ equity |
|
285,104 |
|
|
210,790 |
|
|
|
|
|
|
Total
liabilities and stockholders’ equity |
$ |
555,468 |
|
|
559,772 |
|
|
|
|
|
|
|
|
|
|
|
|
|
BOJANGLES’, INC. AND
SUBSIDIARIES |
|
|
|
Unaudited Condensed Consolidated Statements of
Operations |
|
|
|
(in thousands, except per share
amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Quarter Ended
(a) |
|
|
Fiscal Year Ended
(a) |
|
|
|
|
|
|
|
|
|
|
|
December 31,
2017 |
|
December
25, 2016 |
|
|
December
31, 2017 |
|
December
25, 2016 |
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated restaurant revenues |
$ |
140,332 |
|
|
132,219 |
|
|
|
518,380 |
|
|
504,664 |
|
|
|
|
|
Franchise
royalty revenues |
|
7,604 |
|
|
6,832 |
|
|
|
28,113 |
|
|
26,364 |
|
|
|
|
|
Other
franchise revenues |
|
207 |
|
|
383 |
|
|
|
945 |
|
|
853 |
|
|
|
|
|
|
|
|
|
Total
revenues |
|
148,143 |
|
|
139,434 |
|
|
|
547,438 |
|
|
531,881 |
|
|
|
|
Company-operated restaurant operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Food and
supplies costs |
|
45,458 |
|
|
41,772 |
|
|
|
164,666 |
|
|
158,644 |
|
|
|
|
|
Restaurant
labor costs |
|
40,847 |
|
|
35,862 |
|
|
|
151,212 |
|
|
138,839 |
|
|
|
|
|
Operating
costs |
|
31,494 |
|
|
28,611 |
|
|
|
121,935 |
|
|
112,256 |
|
|
|
|
|
Depreciation and amortization |
|
3,550 |
|
|
3,278 |
|
|
|
13,632 |
|
|
12,709 |
|
|
|
|
|
|
|
|
|
Total
Company-operated restaurant operating expenses |
|
121,349 |
|
|
109,523 |
|
|
|
451,445 |
|
|
422,448 |
|
|
|
|
|
|
|
|
|
Operating
income before other operating expenses |
|
26,794 |
|
|
29,911 |
|
|
|
95,993 |
|
|
109,433 |
|
|
|
|
Other
operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative |
|
9,813 |
|
|
10,852 |
|
|
|
38,397 |
|
|
39,041 |
|
|
|
|
|
Depreciation and amortization |
|
693 |
|
|
739 |
|
|
|
2,918 |
|
|
2,917 |
|
|
|
|
|
Impairment |
|
|
919 |
|
|
947 |
|
|
|
2,041 |
|
|
1,927 |
|
|
|
|
|
(Gain) loss
on disposal of property and equipment and other |
|
(67 |
) |
|
98 |
|
|
|
(305 |
) |
|
47 |
|
|
|
|
|
|
|
|
|
Total other
operating expenses |
|
11,358 |
|
|
12,636 |
|
|
|
43,051 |
|
|
43,932 |
|
|
|
|
|
|
|
|
|
Operating
income |
|
15,436 |
|
|
17,275 |
|
|
|
52,942 |
|
|
65,501 |
|
|
|
|
Amortization of deferred debt issuance costs |
|
(174 |
) |
|
(196 |
) |
|
|
(614 |
) |
|
(763 |
) |
|
|
|
Interest
income |
|
|
1 |
|
|
1 |
|
|
|
16 |
|
|
4 |
|
|
|
|
Interest
expense |
|
|
(1,687 |
) |
|
(1,708 |
) |
|
|
(6,463 |
) |
|
(7,489 |
) |
|
|
|
|
|
|
|
|
Income
before income taxes |
|
13,576 |
|
|
15,372 |
|
|
|
45,881 |
|
|
57,253 |
|
|
|
|
Income tax
benefit (expense) |
|
35,239 |
|
|
(5,550 |
) |
|
|
26,125 |
|
|
(19,537 |
) |
|
|
|
|
|
|
|
|
Net
income |
$ |
48,815 |
|
|
9,822 |
|
|
|
72,006 |
|
|
37,716 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
1.32 |
|
|
0.27 |
|
|
|
1.95 |
|
|
1.04 |
|
|
|
|
|
|
|
|
|
Diluted |
$ |
1.27 |
|
|
0.26 |
|
|
|
1.87 |
|
|
1.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares used in computing net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
37,055 |
|
|
36,448 |
|
|
|
36,838 |
|
|
36,258 |
|
|
|
|
|
|
|
|
|
Diluted |
|
38,411 |
|
|
37,806 |
|
|
|
38,524 |
|
|
37,684 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
The fiscal quarter ended December 31, 2017 consisted of
fourteen weeks, and the fiscal quarter ended December 25, 2016
consisted of thirteen weeks. The fiscal year ended December 31,
2017 consisted of fifty-three weeks, and the fiscal year ended
December 25, 2016 consisted of fifty-two weeks. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BOJANGLES’, INC. AND
SUBSIDIARIES |
|
Unaudited Condensed Consolidated Statements of
Cash Flows |
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended
(a) |
|
|
|
|
|
|
|
|
|
December
31, 2017 |
|
December
25, 2016 |
|
Cash flows
from operating activities: |
|
|
|
|
|
|
Net
income |
|
$ |
72,006 |
|
|
37,716 |
|
|
|
Adjustments
to reconcile net income to net cash provided by operating
activities: |
|
|
|
|
|
|
|
|
Deferred
income tax benefit |
|
(40,247 |
) |
|
(2,177 |
) |
|
|
|
|
Depreciation and amortization |
|
16,550 |
|
|
15,626 |
|
|
|
|
|
Amortization of deferred debt issuance costs |
|
614 |
|
|
763 |
|
|
|
|
|
Impairment |
|
2,041 |
|
|
1,927 |
|
|
|
|
|
(Gain) loss
on disposal of property and equipment and other |
|
(305 |
) |
|
47 |
|
|
|
|
|
Provision
(benefit) for doubtful accounts |
|
156 |
|
|
(72 |
) |
|
|
|
|
Provision
for inventory spoilage |
|
15 |
|
|
20 |
|
|
|
|
|
Benefit for
closed stores |
|
— |
|
|
(51 |
) |
|
|
|
|
Stock-based
compensation |
|
1,745 |
|
|
1,827 |
|
|
|
|
|
Excess tax
benefit from stock-based compensation |
|
— |
|
|
(2,686 |
) |
|
|
|
|
Changes in
operating assets and liabilities |
|
(2,830 |
) |
|
1,360 |
|
|
|
|
|
|
|
Net cash
provided by operating activities |
|
49,745 |
|
|
54,300 |
|
|
Cash flows
from investing activities: |
|
|
|
|
|
|
Purchases
of franchisee's assets |
|
— |
|
|
(100 |
) |
|
|
Purchases
of property and equipment |
|
(9,616 |
) |
|
(9,695 |
) |
|
|
Proceeds
from disposition of property and equipment |
|
163 |
|
|
51 |
|
|
|
|
|
|
|
Net cash
used in investing activities |
|
(9,453 |
) |
|
(9,744 |
) |
|
Cash flows
from financing activities: |
|
|
|
|
|
|
Principal
payments on long-term debt |
|
(32,357 |
) |
|
(42,736 |
) |
|
|
Debt
issuance costs |
|
(643 |
) |
|
— |
|
|
|
Stock
option exercises |
|
2,456 |
|
|
1,210 |
|
|
|
Vesting of
restricted stock units |
|
(103 |
) |
|
— |
|
|
|
Excess tax
benefit from stock-based compensation |
|
— |
|
|
2,686 |
|
|
|
Purchases
of treasury stock |
|
(2,000 |
) |
|
— |
|
|
|
Principal
payments on capital lease obligations |
|
(7,491 |
) |
|
(6,081 |
) |
|
|
|
|
|
|
Net cash
used in financing activities |
|
(40,138 |
) |
|
(44,921 |
) |
|
|
|
|
|
|
Net
increase (decrease) in cash and cash equivalents |
|
154 |
|
|
(365 |
) |
|
Cash and
cash equivalents balance, beginning of fiscal year |
|
13,898 |
|
|
14,263 |
|
|
Cash and
cash equivalents balance, end of fiscal year |
$ |
14,052 |
|
|
13,898 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
The fiscal year ended December 31, 2017 consisted of
fifty-three weeks, and the fiscal year ended December 25, 2016
consisted of fifty-two weeks. |
|
BOJANGLES’, INC. AND
SUBSIDIARIES |
|
|
Unaudited Reconciliation of Net Income to
Adjusted Net Income |
|
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Quarter Ended
(a) |
|
|
Fiscal Year Ended
(a) |
|
|
|
|
|
|
|
|
|
|
December
31, 2017 |
|
December
25, 2016 |
|
|
December
31, 2017 |
|
December
25, 2016 |
|
|
Net
income |
|
|
$ |
48,815 |
|
|
9,822 |
|
|
|
72,006 |
|
|
37,716 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certain
professional, transaction and other costs (b) |
|
— |
|
|
398 |
|
|
|
3 |
|
|
464 |
|
|
|
Payroll
taxes associated with stock option exercises (c) |
|
— |
|
|
44 |
|
|
|
122 |
|
|
124 |
|
|
|
Vesting of
performance-based stock options (d) |
|
— |
|
|
495 |
|
|
|
— |
|
|
495 |
|
|
|
Distributor
transition costs (e) |
|
— |
|
|
— |
|
|
|
— |
|
|
81 |
|
|
|
Executive
separation expenses (f) |
|
— |
|
|
81 |
|
|
|
551 |
|
|
278 |
|
|
|
Federal
income tax rate change (g) |
|
(40,113 |
) |
|
— |
|
|
|
(40,113 |
) |
|
— |
|
|
|
State
income tax rate change (h) |
|
— |
|
|
— |
|
|
|
(367 |
) |
|
(908 |
) |
|
|
Tax impact
of adjustments (i) |
|
— |
|
|
(236 |
) |
|
|
(253 |
) |
|
(392 |
) |
|
|
Total adjustments |
|
(40,113 |
) |
|
782 |
|
|
|
(40,057 |
) |
|
142 |
|
|
|
Adjusted Net Income |
$ |
8,702 |
|
|
10,604 |
|
|
|
31,949 |
|
|
37,858 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BOJANGLES’, INC. AND
SUBSIDIARIES |
|
|
Unaudited Reconciliation of Diluted Net Income
Per Share to Adjusted Diluted Net Income Per Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Quarter Ended
(a) |
|
|
Fiscal Year Ended
(a) |
|
|
|
|
|
|
|
|
|
|
December
31, 2017 |
|
December
25, 2016 |
|
|
December
31, 2017 |
|
December
25, 2016 |
|
|
Diluted net income per share |
$ |
1.27 |
|
|
0.26 |
|
|
|
1.87 |
|
|
1.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certain
professional, transaction and other costs (b) |
|
— |
|
|
0.01 |
|
|
|
— |
|
|
0.01 |
|
|
|
Payroll
taxes associated with stock option exercises (c) |
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
Vesting of
performance-based stock options (d) |
|
— |
|
|
0.01 |
|
|
|
— |
|
|
0.01 |
|
|
|
Distributor
transition costs (e) |
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
Executive
separation expenses (f) |
|
— |
|
|
— |
|
|
|
0.02 |
|
|
0.01 |
|
|
|
Federal
income tax rate change (g) |
|
(1.04 |
) |
|
— |
|
|
|
(1.04 |
) |
|
— |
|
|
|
State
income tax rate change (h) |
|
— |
|
|
— |
|
|
|
(0.01 |
) |
|
(0.02 |
) |
|
|
Tax impact
of adjustments (i) |
|
— |
|
|
— |
|
|
|
(0.01 |
) |
|
(0.01 |
) |
|
|
Total adjustments |
|
(1.04 |
) |
|
0.02 |
|
|
|
(1.04 |
) |
|
— |
|
|
|
Adjusted Diluted Net Income per Share |
$ |
0.23 |
|
|
0.28 |
|
|
|
0.83 |
|
|
1.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
The fiscal quarter ended December 31, 2017 consisted of
fourteen weeks, and the fiscal quarter ended December 25, 2016
consisted of thirteen weeks. The fiscal year ended December 31,
2017 consisted of fifty-three weeks, and the fiscal year ended
December 25, 2016 consisted of fifty-two weeks. |
|
(b) |
Includes costs associated with third-party consultants for
one-time projects, public offering expenses and certain
professional fees and transaction costs related to financing
transactions. We could incur similar expenses in future periods if
we commence additional public offerings, financing transactions or
other one-time projects. |
|
|
(c) |
Represents payroll taxes associated with stock option
exercises related to stock options that were outstanding prior to
our initial public offering. We expect to incur similar expenses in
future periods when stock options that were outstanding prior to
our initial public offering are exercised. |
|
|
(d) |
Includes non-cash, stock-based compensation related to the
vesting of certain performance based stock option awards. We could
incur similar expenses in future periods upon the achievement of
the performance metrics indicated in the stock option grants. |
|
|
(e) |
Includes expenses incurred in connection with the transition
to our new distributor. |
|
|
(f) |
Represents severance and legal fees associated with former
executives departing the Company. |
|
|
(g) |
As a result of enacted reductions to the federal corporate
income tax rate, we adjusted our deferred income taxes by applying
the lower rate, which resulted in a corresponding decrease to
income tax expense. |
|
|
(h) |
As a result of the enacted reductions to the North Carolina
corporate income tax rate, we adjusted our deferred income taxes by
applying the lower rate, which resulted in a corresponding decrease
to income tax expense. |
|
|
(i) |
Represents the income tax expense associated with the
adjustments in (a) through (h) that are deductible for income tax
purposes. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BOJANGLES’, INC. AND
SUBSIDIARIES |
|
|
Unaudited Reconciliation of Net Income to
EBITDA and Adjusted EBITDA |
|
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Quarter Ended
(a) |
|
|
Fiscal Year Ended
(a) |
|
|
|
|
|
|
|
|
|
|
December
31, 2017 |
|
December
25, 2016 |
|
|
December
31, 2017 |
|
December
25, 2016 |
|
|
Net
income |
|
|
$ |
48,815 |
|
|
9,822 |
|
|
72,006 |
|
|
37,716 |
|
|
Income
taxes |
|
|
|
(35,239 |
) |
|
5,550 |
|
|
(26,125 |
) |
|
19,537 |
|
|
Interest
expense, net |
|
1,686 |
|
|
1,707 |
|
|
6,447 |
|
|
7,485 |
|
|
Depreciation and amortization (b) |
|
4,417 |
|
|
4,213 |
|
|
17,164 |
|
|
16,389 |
|
|
EBITDA |
|
|
|
|
|
19,679 |
|
|
21,292 |
|
|
69,492 |
|
|
81,127 |
|
|
Non-cash
rent (c) |
|
|
282 |
|
|
370 |
|
|
1,372 |
|
|
1,556 |
|
|
Stock-based
compensation (d) |
|
560 |
|
|
874 |
|
|
1,745 |
|
|
1,827 |
|
|
Payroll
taxes associated with stock option exercises (e) |
|
— |
|
|
44 |
|
|
122 |
|
|
124 |
|
|
Preopening
expenses (f) |
|
523 |
|
|
465 |
|
|
1,550 |
|
|
1,407 |
|
|
Certain
professional, transaction and other costs (g) |
|
— |
|
|
398 |
|
|
3 |
|
|
464 |
|
|
Distributor
transition costs (h) |
|
— |
|
|
— |
|
|
— |
|
|
81 |
|
|
Executive
separation expenses (i) |
|
— |
|
|
81 |
|
|
551 |
|
|
278 |
|
|
Impairment
and dispositions (j) |
|
868 |
|
|
1,047 |
|
|
1,899 |
|
|
2,025 |
|
|
Adjusted EBITDA |
$ |
21,912 |
|
|
24,571 |
|
|
76,734 |
|
|
88,889 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
The fiscal quarter ended December 31, 2017 consisted of
fourteen weeks, and the fiscal quarter ended December 25, 2016
consisted of thirteen weeks. The fiscal year ended December 31,
2017 consisted of fifty-three weeks, and the fiscal year ended
December 25, 2016 consisted of fifty-two weeks. |
|
(b) |
Includes amortization of deferred debt issuance costs. |
|
|
(c) |
Includes deferred rent, which represents the extent to which
our rent expense has been above or below our cash rent payments,
amortization of favorable (unfavorable) leases and closed store
reserves for rent net of cash payments. We expect to continue to
incur similar expenses in future periods as we record rent expense
in accordance with GAAP, as well as continue to amortize favorable
(unfavorable) leases and record closed store reserves. |
|
(d) |
Represents non-cash, stock-based compensation. We expect to
incur similar expenses in future periods as we record stock-based
compensation related to existing grants (and any potential future
grants) in accordance with GAAP. |
|
|
(e) |
Represents payroll taxes associated with stock option
exercises related to stock options that were outstanding prior to
our initial public offering. We expect to incur similar expenses in
future periods when stock options that were outstanding prior to
our initial public offering are exercised. |
|
|
(f) |
Includes expenses directly associated with the opening of
company-operated restaurants and incurred prior to the opening of a
company-operated restaurant. We expect to continue to incur similar
expenses as we open company-operated restaurants. |
|
|
(g) |
Includes costs associated with third-party consultants for
one-time projects, public offering expenses and certain
professional fees and transaction costs related to financing
transactions. We could incur similar expenses in future periods if
we commence additional public offerings, financing transactions or
other one-time projects. |
|
|
(h) |
Includes expenses incurred in connection with the transition
to our new distributor. |
|
|
(i) |
Represents severance and legal fees associated with former
executives departing the Company. |
|
|
(j) |
Includes (gain) loss on disposal of property and equipment and
other, impairment and cash proceeds on disposals from disposition
of property and equipment. We could continue to record impairment
expense in future periods if performance of company-operated
restaurants is not sufficient to recover the carrying amount of the
related long-lived assets. We may incur future (gains) losses and
receive cash proceeds on disposal of property and equipment
associated with retirement, replacement or write-off of fixed
assets. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BOJANGLES’, INC. AND
SUBSIDIARIES |
|
Unaudited Reconciliation of Operating Income
to Restaurant Contribution |
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Quarter Ended
(a) |
|
|
Fiscal Year Ended
(a) |
|
|
|
|
|
|
|
|
|
December
31, 2017 |
|
December
25, 2016 |
|
|
December
31, 2017 |
|
December
25, 2016 |
|
Operating
income |
|
$ |
15,436 |
|
|
17,275 |
|
|
|
52,942 |
|
|
65,501 |
|
|
Less: |
|
Franchise
royalty revenues |
|
(7,604 |
) |
|
(6,832 |
) |
|
|
(28,113 |
) |
|
(26,364 |
) |
|
|
|
|
Other
franchise revenues |
|
(207 |
) |
|
(383 |
) |
|
|
(945 |
) |
|
(853 |
) |
|
Plus: |
|
General and
administrative |
|
9,813 |
|
|
10,852 |
|
|
|
38,397 |
|
|
39,041 |
|
|
|
|
|
Depreciation and amortization |
|
4,243 |
|
|
4,017 |
|
|
|
16,550 |
|
|
15,626 |
|
|
|
|
|
Impairment |
|
919 |
|
|
947 |
|
|
|
2,041 |
|
|
1,927 |
|
|
|
|
|
(Gain) loss
on disposal of property and equipment and other |
|
(67 |
) |
|
98 |
|
|
|
(305 |
) |
|
47 |
|
|
Restaurant contribution |
$ |
22,533 |
|
|
25,974 |
|
|
|
80,567 |
|
|
94,925 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated restaurant revenues |
$ |
140,332 |
|
|
132,219 |
|
|
|
518,380 |
|
|
504,664 |
|
|
Restaurant contribution margin |
|
16.1 |
% |
|
19.6 |
% |
|
|
15.5 |
% |
|
18.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
The fiscal quarter ended December 31, 2017 consisted of
fourteen weeks, and the fiscal quarter ended December 25, 2016
consisted of thirteen weeks. The fiscal year ended December 31,
2017 consisted of fifty-three weeks, and the fiscal year ended
December 25, 2016 consisted of fifty-two weeks. |
|
|
|
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For Investor Relations Inquiries:Raphael Gross
of ICR203.682.8253
For Media Inquiries:Brian Little of Bojangles’
Restaurants, Inc.704.519.2118
BOJANGLES', INC. (NASDAQ:BOJA)
Historical Stock Chart
From Jun 2024 to Jul 2024
BOJANGLES', INC. (NASDAQ:BOJA)
Historical Stock Chart
From Jul 2023 to Jul 2024