Texas Roadhouse, Inc. Announces First Quarter 2013 Results

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Texas Roadhouse, Inc. Announces First Quarter 2013 Results

LOUISVILLE, Ky.--(BUSINESS WIRE)-- Texas Roadhouse, Inc. (NasdaqGS: TXRH), today announced financial results for the 13 week period ended March 26, 2013.

          
First Quarter
($000's)

2013

2012

% Change

 
Total revenue359,676324,86911
Income from operations (1)38,16829,40230
Net income (1)26,17118,86939
Diluted EPS (1)$0.37$0.2739
 
(1) First Quarter 2012 results include a one-time charge as discussed below.
 

Results for the first quarter included:

  • Excluding the impact of a prior year charge, diluted earnings per share increased 19.8% to $0.37 from $0.31 in the prior year period. The first quarter 2012 results included a pre-tax charge of $5.0 million ($3.1 million after-tax) which had a negative $0.04 impact on diluted earnings per share;
  • Comparable restaurant sales increased 3.5% at company restaurants and 4.5% at franchise restaurants;
  • Three company and two franchise restaurants were opened;
  • Restaurant margin, as a percentage of restaurant sales, decreased 17 basis points to 18.9% primarily due to higher commodity costs.

Kent Taylor, Chief Executive Officer of Texas Roadhouse, Inc., commented, "Our operating momentum continued during the first quarter with double-digit revenue and diluted earnings per share growth. Additionally, we are encouraged by positive comparable restaurant sales and traffic growth in the first quarter, which continued through the first four weeks of our second quarter. Our success is a direct result of our team's ongoing commitment to providing legendary food and service to our guests. Texas Roadhouse remains well-positioned through the combination of our continued focus on operations, new restaurant growth and our commitment to returning capital to shareholders, which we believe will drive shareholder value over the long-term."

2013 Outlook

The Company reported that comparable restaurant sales at company restaurants for the first four weeks of its second quarter of fiscal 2013 increased approximately 5.7% compared to the prior year period.

Management reiterated the following expectations for 2013:

  • Positive comparable restaurant sales growth;
  • Approximately 28 company restaurant openings;
  • Food cost inflation of 6.0% to 7.0%;
  • An income tax rate of approximately 31.0%; and
  • Total capital expenditures of $100.0 to $105.0 million.

Conference Call

The Company is hosting a conference call today, April 29, 2013, at 5:00 p.m. Eastern Time to discuss these results. The dial-in number is (888) 637-7734 or (913) 312-0970 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 7306796 as the pass code. There will be a simultaneous Web cast conducted at www.texasroadhouse.com.

About the Company

Texas Roadhouse is a casual dining concept that first opened in 1993 and today operates over 395 restaurants system-wide in 47 states and two 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; 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 26, 2013March 27, 2012
 
Revenue:
Restaurant sales$356,564$322,012
Franchise royalties and fees 3,112 2,857
 
Total revenue 359,676 324,869
 
Costs and expenses:

Restaurant operating costs (excluding depreciation and

amortization shown separately below):

Cost of sales124,552109,655
Labor101,66193,347
Rent7,0576,252
Other operating55,77851,229
Pre-opening2,8243,585
Depreciation and amortization12,21211,347
Impairment and closure5719
General and administrative (1) 17,367 20,033
 
Total costs and expenses 321,508 295,467
 
Income from operations38,16829,402
 
Interest expense, net595605
Equity income from investments in
unconsolidated affiliates 180 41
 
Income before taxes37,75328,838
Provision for income taxes 10,534 9,085
 
Net income including noncontrolling interests (1)$27,219$19,753
Less: Net income attributable to noncontrolling interests 1,048 884
Net income attributable to Texas Roadhouse, Inc. and subsidiaries (1)$26,171$18,869
 
Net income per common share attributable to Texas Roadhouse, Inc.
and subsidiaries:
Basic$0.38$0.27
Diluted$0.37$0.27
 
Weighted average shares outstanding:
Basic 69,359 69,405
Diluted 70,583 70,830

 

(1) Results for the 13 weeks ended March 27, 2012 include a $5.0 million charge, before the statutory income tax rate, relating to the settlement of a legal matter. The settlement is included in general and administrative costs.

    
Texas Roadhouse, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
 
 
 
March 26, 2013December 25, 2012
 
 
Cash and cash equivalents$95,453$81,746
Other current assets33,62640,726
Property and equipment, net534,670531,654
Goodwill113,543113,435
Intangible assets, net8,6899,264
Other assets15,44714,429
  
Total assets$801,428$791,254
 
 
Current maturities of long-term debt
and obligations under capital leases337338
Other current liabilities142,006158,324
Long-term debt and obligations under
capital leases, excluding current maturities51,18351,264
Other liabilities51,46550,591
Texas Roadhouse, Inc. and subsidiaries stockholders' equity550,684525,084
Noncontrolling interests5,7535,653
  
Total liabilities and equity$801,428$791,254
 
    
Texas Roadhouse, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
 
 
13 Weeks Ended
March 26, 2013March 27, 2012
 
 
Cash flows from operating activities:
Net income including noncontrolling interests$27,219$19,753
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization12,21211,347
Share-based compensation expense3,5123,053
Other noncash adjustments(110)(1,781)
Change in working capital (3,416) 5,522 
Net cash provided by operating activities 39,417  37,894 
 
Cash flows from investing activities:
Capital expenditures - property and equipment(15,601)(22,839)
Proceeds from sale of property and equipment, including insurance proceeds 132  98 
Net cash used in investing activities (15,469) (22,741)
 
Cash flows from financing activities:
Repayments of revolving credit facility, net-(10,000)
Dividends paid(13,135)(5,535)
Other financing activities 2,894  3,107 
Net cash used in financing activities (10,241) (12,428)
 
Net increase in cash and cash equivalents13,7072,725
Cash and cash equivalents - beginning of year 81,746  78,777 
Cash and cash equivalents - end of period$95,453 $81,502 
 
         
Texas Roadhouse, Inc. and Subsidiaries
Supplemental Financial and Operating Information
($ amounts in thousands, except weekly sales by group)
(unaudited)
 
 
First QuarterChange
20132012vs LY
 
Restaurant openings
Company - Texas Roadhouse38(5)
Company - Aspen Creek000
Franchise - Texas Roadhouse202
Total58(3)
 
 
Restaurants open at the end of the quarter
Company - Texas Roadhouse32129922
Company - Aspen Creek23(1)
Franchise - Texas Roadhouse74722
Total39737423
 
Company-owned restaurants
Restaurant sales$356,564$322,01210.7%
Store weeks4,1743,8518.4 Read Full Story

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