Bravo Brio Restaurant Group, Inc. (Nasdaq:BBRG), owner and operator of the BRAVO! Cucina Italiana (BRAVO!) and BRIO Tuscan Grille (BRIO) restaurant concepts, today reported financial results for the 13 weeks and 52 weeks ended December 26, 2010. The Company also provided its outlook for the full year 2011.
Selected Highlights for the Fourth Quarter Compared to the Prior Year Period Include the Following:
- Revenues increased by 8.6% to $88.3 million from $81.4 million.
- Total comparable restaurant sales increased 2.2%.
- BRIO comparable restaurant sales increased 4.7% and BRAVO! comparable restaurant sales decreased 0.3%.
- Restaurant-level operating profit increased 6.4% to $18.0 million from $16.9 million.
- GAAP net loss attributed to common shareholders was ($6.5) million, or ($0.42) per basic and diluted share, compared to GAAP net loss attributed to common shareholders of ($3.8) million, or ($0.52) per basic and diluted share for the prior year period.
- Modified pro forma net income was $5.5 million, or $0.27 per diluted share, compared to modified pro forma net income of $4.6 million, or $0.22 per diluted share for the prior year period. Please see the accompanying financial table for a reconciliation from GAAP net loss to modified pro forma (non-GAAP) net income.
Selected Highlights for the Full Year 2010 Compared to the Prior Year Period Include the Following:
- Revenues increased by 10.0% to $343.0 million from $311.7 million.
- Total comparable restaurant sales increased 1.6%.
- BRIO comparable restaurant sales increased 3.2% and BRAVO! comparable restaurant sales decreased 0.1%.
- Restaurant-level operating profit increased 16.3% to $63.0 million from $54.2 million.
- GAAP net loss attributed to common shareholders was ($5.0) million, or ($0.54) per basic and diluted share, compared to GAAP net loss attributed to common shareholders of ($8.2) million, or ($1.13) per basic and diluted share for the prior year period.
- Modified pro forma net income was $15.5 million, or $0.75 per diluted share, compared to modified pro forma net income of $8.1 million, or $0.39 per diluted share for fiscal 2009. Please see the accompanying financial table for a reconciliation from GAAP net loss to modified pro forma (non-GAAP) net income.
“We attribute our strong financial performance, both in the recent quarter as well as for the full year, to the dedication of our team in creating highly satisfied guests and to the effective management of costs in a challenging operational environment. As we enter 2011, we are very excited about our opportunity for continued growth and will remain focused on the fundamentals as well as executing across all facets of our business,” said Saed Mohseni, Chief Executive Officer and President, Bravo Brio Restaurant Group, Inc.
Fourth Quarter 2010 Financial Results
Revenues increased 8.6% to $88.3 million in the fourth quarter of 2010, from $81.4 million in the fourth quarter of 2009. The increase in revenues was primarily due to an additional 63 operating weeks provided by five new restaurants opened in 2010 and two new restaurants opened in the fourth quarter of 2009. Total comparable restaurant sales increased 2.2%, which was driven by an increase in both guest counts as well as comparable average check.
Total restaurant operating costs increased 9.2% to $70.3 million in the fourth quarter of 2010, from $64.5 million in the prior year period. Total restaurant-level operating profit increased 6.4% to $18.0 million from $16.9 million. The Company benefitted from lower cost of sales and labor costs, but faced higher operating and occupancy costs during the period.
GAAP net loss attributed to common shareholders in the fourth quarter of 2010 was $(6.5) million, or $(0.42) per basic and diluted share, compared to GAAP net loss attributed to common shareholders of $(3.8) million, or $(0.52) per basic and diluted share in the prior year period.
On a modified pro forma basis, a measure that management believes offers a more useful year-over-year performance comparison, modified pro forma net income for the fourth quarter of 2010 was $5.5 million, or $0.27 per diluted share, compared to modified pro forma net income of $4.6 million, or $0.22 per diluted share, in the prior year period.
Please see the accompanying financial tables for a reconciliation from GAAP net loss attributed to common shareholders to modified pro forma (non-GAAP) net income.
Fourth Quarter 2010 Brand Operating Highlights
Comparable restaurant sales at BRIO increased 4.7% in the fourth quarter of 2010 and average weekly sales were $97,400. At BRAVO!, comparable restaurant sales decreased 0.3% and average weekly sales were $64,300.
During the fourth quarter of 2010, the Company opened a BRIO in Delaware, its first location in the state. As of December 26, 2010, the Company owned and operated 47 BRAVO!, 38 BRIO and one Bon Vie restaurant across 29 states.
Outlook
The Company is providing the following outlook for the full year 2011:
- Revenues are expected in the $365 million to $370 million range.
- Total comparable restaurant sales are expected to increase in the 1% to 3% range.
- Development of six to seven new restaurants, an increase of one opening from previous expectations.
- Preopening costs of approximately $4 million, which primarily reflects the increase in openings.
- Modified pro forma earnings of $0.75 to $0.80 per diluted share.
- Capital expenditures of $22 million to $24 million.
- Diluted share count of approximately 20.6 million.
Investor Conference Call and Webcast
The Company will host an investor conference call to discuss financial results for the fourth quarter and full year 2010 today, February 16, 2011, at 5:00 PM ET. The call will be hosted by Saed Mohseni, Chief Executive Officer, and Jim O’Connor, Chief Financial Officer.
The conference call can be accessed live over the phone by dialing (888) 516-2377, or for international callers (719) 325-2191. A replay will be available one hour after the call and can be accessed by dialing (877) 870-5176 or (858) 384-5517 for international callers; the conference ID is 5090606. The replay will be available until Wednesday, March 2, 2011.
The call will also be webcast live from the Company’s investor relations website at http://investors.bbrg.com.
About Bravo Brio Restaurant Group, Inc.
Bravo Brio Restaurant Group, Inc. is a leading owner and operator of two distinct Italian restaurant brands, BRAVO! Cucina Italiana and BRIO Tuscan Grille. BBRG has positioned its brands as multifaceted culinary destinations that deliver the ambiance, design elements and food quality reminiscent of fine dining restaurants at a value typically offered by casual dining establishments, a combination known as the upscale affordable dining segment. Each of BBRG’s brands provides its guests with a fine dining experience and value by serving affordable cuisine prepared using fresh flavorful ingredients and authentic Italian cooking methods, combined with attentive service in an attractive, lively atmosphere. BBRG strives to be the best Italian restaurant company in America and is focused on providing its guests an excellent dining experience through consistency of execution.