Texas Roadhouse, Inc. Announces First Quarter 2013 Results

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 revenue

359,676

324,869

11

Income from operations (1)

38,168

29,402

30

Net income (1)

26,171

18,869

39

Diluted EPS (1)

$

0.37

$

0.27

39

(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, 2013

March 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 sales

124,552

109,655

Labor

101,661

93,347

Rent

7,057

6,252

Other operating

55,778

51,229

Pre-opening

2,824

3,585

Depreciation and amortization

12,212

11,347

Impairment and closure

57

19

General and administrative (1)

17,367

20,033

Total costs and expenses

321,508

295,467

Income from operations

38,168

29,402

Interest expense, net

595

605

Equity income from investments in

unconsolidated affiliates

180

41

Income before taxes

37,753

28,838

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, 2013

December 25, 2012

Cash and cash equivalents

$

95,453

$

81,746

Other current assets

33,626

40,726

Property and equipment, net

534,670

531,654

Goodwill

113,543

113,435

Intangible assets, net

8,689

9,264

Other assets

15,447

14,429

Total assets

$

801,428

$

791,254

Current maturities of long-term debt

and obligations under capital leases

337

338

Other current liabilities

142,006

158,324

Long-term debt and obligations under

capital leases, excluding current maturities

51,183

51,264

Other liabilities

51,465

50,591

Texas Roadhouse, Inc. and subsidiaries stockholders' equity

550,684

525,084

Noncontrolling interests

5,753

5,653

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, 2013

March 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 amortization

12,212

11,347

Share-based compensation expense

3,512

3,053

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 equivalents

13,707

2,725

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 Quarter

Change

2013

2012

vs LY

Restaurant openings

Company - Texas Roadhouse

3

8

(5

)

Company - Aspen Creek

0

0

0

Franchise - Texas Roadhouse

2

0

2

Total

5

8

(3

)

Restaurants open at the end of the quarter

Company - Texas Roadhouse

321

299

22

Company - Aspen Creek

2

3

(1

)

Franchise - Texas Roadhouse

74

72

2

Total

397

374

23

Company-owned restaurants

Restaurant sales

$

356,564

$

322,012

10.7

%

Store weeks

4,174

3,851

8.4