Attached files
| file | filename |
|---|---|
| 8-K - RUBIOS RESTAURANTS INC | v178479_8k.htm |
FOR
IMMEDIATE RELEASE
|
Company
Contact:
|
Investor
Relations:
|
|
Frank
Henigman
|
Scott
Liolios or Cody Slach
|
|
Chief
Financial Officer
|
Liolios
Group, Inc.
|
|
Rubio's
Restaurants, Inc.
|
Tel
(949) 574-3860
|
|
Tel
(760) 929-8226
|
info@liolios.com
|
|
fhenigman@rubios.com
|
Rubio’s
Restaurants Reports Fourth Quarter and Fiscal 2009 Results
Record
Fiscal Year 2009 Revenues of $189 Million Up 5%
Year-Over-Year;
Record
Fiscal Year 2009 Adjusted EBITDA of $13.1 Million or $1.30 per
Share
CARLSBAD, CA – March 26, 2010
- Rubio's®
Restaurants, Inc. (NASDAQ: RUBO) reported financial results for the fourth
quarter and fiscal year ended December 27, 2009.
Fourth
Quarter and Fiscal 2009 Financial Highlights
Revenues
in the fourth quarter of 2009 totaled $45.4 million, an increase of 1% from
$45.0 million reported in the same year-ago quarter. Revenue for the full year
of 2009 totaled a record $188.9 million, up 5% from $179.3 million in the same
year-ago period.
Net loss
was $852,000 or $(0.08) per share in the fourth quarter of 2009 versus a net
loss of $295,000 or $(0.03) per basic and diluted share in the same year-ago
quarter. The fourth quarter of 2009 included an asset impairment charge of
$683,000 or a tax-effected $(0.04) per share and non-recurring expenses
associated with the ongoing evaluation of strategic alternatives of $211,000 or
a tax-effected $(0.01) per share. Net loss before non-cash impairment charges
and non-recurring expenses associated with the ongoing evaluation of strategic
alternatives was $311,000 or $(0.03) in the fourth quarter of 2009, versus a net
loss of $295,000 or $(0.03) per share in the same year-ago quarter, during which
there were no impairment charges.
Fiscal
2009 net income was $392,000 or $0.04 per basic and diluted share versus net
income of $84,000 or $0.01 per diluted share in the same year-ago period. Net
income in the full year of 2009 included asset impairment charges of $1.1
million or a tax-effected $(0.06) per basic and diluted share and non-recurring
expenses associated with the ongoing evaluation of strategic alternatives of
$211,000 or a tax-effected $(0.02) per basic and diluted share, versus a store
closure reversal credit of $46,000 or $0.00 per diluted share in 2008. Fiscal
2009 net income before non-cash impairment charges and non-recurring expenses
associated with the ongoing evaluation of strategic alternatives was $1.2
million or $0.12 per basic and diluted share. The asset impairment charges in
both the fourth quarter and full year 2009 relate to units targeted for closure
upon lease expiration and units concentrated in areas particularly hard-hit by
the economic downturn.
Adjusted
EBITDA (a non-GAAP measure as defined below), was $2.4 million or $0.24 per
basic and diluted share in the fourth quarter of 2009, versus $2.6 million or
$0.26 per basic and diluted share in the same year-ago period. Excluding the
above-mentioned $211,000 in non-recurring expenses in Q4 of 2009, adjusted
EBITDA was $2.6 million or $0.26 per basic and diluted share in both the fourth
quarter of 2009 and in the same year-ago period. For the full year of 2009,
adjusted EBITDA was a record $13.1 million or $1.30 per diluted share, versus
$11.6 million or $1.16 per diluted share in the same year-ago period. Excluding
the aforementioned $211,000 in non-recurring expenses, adjusted EBITDA was a
record $13.3 million or $1.32 per basic and diluted share, up 14% from $11.6
million or $1.16 per diluted share in the same year-ago period.
Cash and
cash equivalents at December 27, 2009 totaled $9.5 million, up 29% from $7.4
million in the previous quarter and up 64% from $5.8 million at the end of
fiscal 2008.
Fourth
Quarter and Fiscal 2009 Operating Highlights
Comparable
store sales (stores operating for more than 15 months) decreased 2.7% in the
fourth quarter of 2009 versus a comparable store sales decrease of 0.2% in the
same quarter last year. Comparable store sales for fiscal 2009 decreased 0.7%
versus a comparable store sales decrease of 2.4% in 2008. In both the fourth
quarter and full year 2009, the impact of decreased transaction volume more than
offset an increase in the average check per customer.
Average
unit volume was slightly less than $1.0 million, which was virtually unchanged
from the same year-ago quarter.
Restaurant
operating margin (a non-GAAP measure as defined below) was 17.1%, as compared to
15.3% in the same year-ago quarter. For fiscal 2009, restaurant operating
margin was 16.4% as compared to 15.9% in 2008.
In the
fourth quarter of 2009, as a percentage of restaurant sales, restaurant labor
cost increased by 90 basis points and restaurant occupancy and other costs rose
by 60 basis points versus the same quarter last year, while cost of sales
decreased by 330 basis points. The increase in restaurant labor cost as a
percentage of sales was primarily attributable to deleveraging manager salaries
caused by decreased comp sales. The increase in restaurant occupancy and other
costs was primarily due to higher rent and common area maintenance charges. The
decrease in cost of sales as a percentage of sales was driven primarily by the
impact of menu price increases that the company was able to leverage in
combination with favorable supply agreements and product reformulation
efforts.
General
and administrative expenses for the fourth quarter of 2009 were $5.8 million, as
compared to $4.4 million in the same year-ago quarter. As a percentage of sales,
general and administrative expenses increased to 12.7% from 9.7% for the same
period last year. The quarter-over-quarter increase was due to increased
incentive compensation resulting from the record annual adjusted EBITDA
performance, professional fees associated with the ongoing process of evaluating
strategic alternatives and increased bad debt expense. As a percentage of sales,
general and administrative expenses before non-recurring expenses mentioned
above were 9.9% for the full year of 2009 as compared to 10.0% for
2008.
Rubio’s
opened one restaurant in the fourth quarter of 2009, as compared to five in the
same period a year-ago, increasing the total to ten units opened during 2009.
Pre-opening expenses in the fourth quarter of 2009 were $14,000, a decrease of
93% from $201,000 in the same quarter last year.
Management
Commentary
“Despite
a still challenging economy, we have continued to drive both sales and cash
generation, closing the fiscal year with record annual revenues and adjusted
EBITDA,” said Dan Pittard, Rubio’s president and CEO. “I’m particularly pleased
that we were able to improve restaurant level operating margin from 15.3% in Q4
2008 to 17.1% in Q4 2009, which resulted in flat quarter-over-quarter adjusted
EBITDA despite the decrease in comparable store sales. We attribute our success
to extremely tight cost control and our continued focus on implementing our
winning strategy for the Fast Casual restaurant segment – still the fastest
growing segment of the restaurant industry.”
“Our
market research confirms our guests understand our value proposition, and it
resonates particularly well with our customers in this economy. They appreciate
that we provide an attractive casual ambiance along with a menu selection priced
significantly below casual dining price points. We believe we are very
well-positioned to build our customer base as the economy
improves.”
“Our
fourth quarter performance reflected its typical seasonality, which has been
traditionally the low water mark for the year. However, Q4 also continued the
tradition of surpassing the revenue of the previous year’s fourth quarter,
making Q4 2009 another record revenue fourth quarter. As the first quarter of
2010 approaches its close, we are seeing the traditional seasonal sales increase
following the fourth quarter.”
Rubio’s
CFO Frank Henigman commented: “Our balance sheet remains strong, ending fiscal
year 2009 with $9.5 million in cash and no debt. We generated $11.3 million in
operating cash flow for the year, which provided the opportunity to build cash
during the year while pursuing expansion plans that were tempered due to the
economic environment.”
Conference
Call
Rubio’s
will host a conference later today (March 26, 2010) at 1:30 p.m. Eastern time
(10:30 a.m. Pacific time) to discuss the financial results for the quarter and
full year of 2009.
The
conference call will be broadcast simultaneously and available for replay via
the investor section of the company's Web site at www.rubios.com. If you have
any difficulty connecting with the conference broadcast, please contact the
Liolios Group at 1-949-574-3860.
About
the Presentation of Non-GAAP Financial Information
Regulation
G, “Disclosure of Non-GAAP Financial Measures,” and other provisions of the
Securities Exchange Act of 1934, as amended, define and prescribe the conditions
for use of certain non-GAAP financial information. The company provides two
non-GAAP financial measures, “restaurant operating margins” and “adjusted
EBITDA.”
The
company uses restaurant operating margins to evaluate the performance of its
restaurants. Restaurant operating margin is calculated by dividing (i)
restaurant sales less cost of sales, restaurant labor and restaurant occupancy
and other by (ii) restaurant sales.
The
company also provides adjusted EBITDA, which is not a recognized term under GAAP
and does not purport to be an alternative to income from operations or net
income or a measure of liquidity. The company’s management uses adjusted EBITDA
as a measure of operating performance and in their evaluation of funding
requirements for future development and other needs. Adjusted EBITDA is
calculated as net income (loss) plus (less) income tax expense (benefit), plus
interest, net, plus loss on disposal/sale of property, plus asset impairment and
store closure expense or less store closure reversal, plus depreciation and
amortization, plus share-based compensation expense.
The
differences between adjusted EBITDA and GAAP net income for the 13-week quarters
and 52-weeks of 2008 and 2009 are indicated as follows:
|
For
the Thirteen Weeks Ended
|
||||||||||||||||||||||||||||||||
|
Q1 2009
|
Q2 2009
|
Q3 2009
|
Q4 2009
|
Q1 2008
|
Q2 2008
|
Q3 2008
|
Q4 2008
|
|||||||||||||||||||||||||
|
Net
income (loss)
|
245 | 512 | 487 | (852 | ) | (745 | ) | 335 | 789 | (295 | ) | |||||||||||||||||||||
|
Income
tax expense (benefit)
|
150 | 214 | 151 | (451 | ) | (497 | ) | 244 | 413 | (165 | ) | |||||||||||||||||||||
|
Interest
expense (income) and investment (income), net
|
33 | 38 | 21 | 37 | (1 | ) | 32 | 42 | 60 | |||||||||||||||||||||||
|
Loss
on disposal/sale of property
|
85 | 99 | 75 | 110 | 104 | 58 | 57 | 76 | ||||||||||||||||||||||||
|
Asset
impairment and store closure expense (reversal)
|
- | 359 | 26 | 683 | (91 | ) | 45 | - | - | |||||||||||||||||||||||
|
Depreciation
and amortization
|
2,496 | 2,449 | 2,480 | 2,482 | 2,259 | 2,332 | 2,420 | 2,641 | ||||||||||||||||||||||||
|
Share-based
compensation
|
226 | 247 | 264 | 422 | 349 | 361 | 529 | 279 | ||||||||||||||||||||||||
|
ADJUSTED
EBITDA
|
$ | 3,235 | $ | 3,918 | $ | 3,504 | $ | 2,431 | $ | 1,378 | $ | 3,407 | $ | 4,250 | $ | 2,596 | ||||||||||||||||
|
For
the Fifty-Two
Weeks
Ended
|
|||||||||
|
Q4 2009
|
Q4 2008
|
||||||||
|
Net
income
|
392 | 84 | |||||||
|
Income
tax expense (benefit)
|
64 | (5 | ) | ||||||
|
Interest
expense (income) and investment (income), net
|
129 | 133 | |||||||
|
Loss
on disposal/sale of property
|
369 | 295 | |||||||
|
Asset
impairment and store closure expense (reversal)
|
1,068 | (46 | ) | ||||||
|
Depreciation
and amortization
|
9,907 | 9,652 | |||||||
|
Share-based
compensation
|
1,159 | 1,518 | |||||||
|
ADJUSTED
EBITDA
|
$ | 13,088 | $ | 11,631 | |||||
The differences between adjusted EBITDA including costs incurred for
the evaluation of strategic alternatives and GAAP net income for the 13-week
quarter and 52-weeks ended December 27, 2009 are indicated as follows:
|
For
the Thirteen Weeks Ended
|
For
the Fifty-Two Weeks Ended
|
||||||||
|
Q4 2009
|
Q4 2009
|
||||||||
|
Net
(loss) income
|
(852 | ) | 392 | ||||||
|
Income
tax expense (benefit)
|
(451 | ) | 64 | ||||||
|
Interest
expense (income) and investment (income), net
|
37 | 129 | |||||||
|
Loss
on disposal/sale of property
|
110 | 369 | |||||||
|
Asset
impairment charge
|
683 | 1,068 | |||||||
|
Depreciation
and amortization
|
2,482 | 9,907 | |||||||
|
Share-based
compensation
|
422 | 1,159 | |||||||
|
Costs
for evaluation of strategic alternatives
|
211 | 211 | |||||||
|
ADJUSTED
EBITDA
|
$ | 2,642 | $ | 13,299 | |||||
The differences between net (loss)
income including asset impairment charges and costs incurred for the evaluation
of strategic alternatives, and their respective tax effects, and GAAP net income
for the 13-week quarter and 52-weeks ended December 27, 2009 are indicated as
follows:
|
For
the Thirteen Weeks Ended
|
For
the Fifty-Two Weeks Ended
|
||||||||
|
Q4 2009
|
Q4 2009
|
||||||||
|
Net
(loss) income
|
(852 | ) | 392 | ||||||
|
Asset
impairment charge
|
683 | 1,068 | |||||||
|
Income
tax effect of asset impairment charge
|
(270 | ) | (422 | ) | |||||
|
Costs
for evaluation of strategic alternatives
|
211 | 211 | |||||||
|
Income
tax effect of costs for evaluation of strategic
alternatives
|
(83 | ) | (83 | ) | |||||
|
Net
(loss) income before charges
|
$ | (311 | ) | $ | 1,166 | ||||
Management
believes these non-GAAP financial measures provide important supplemental
information to investors. These measures should be used in addition to, and in
conjunction with, results presented in accordance with GAAP. These measures
should not be relied upon to the exclusion of the company’s GAAP financial
measures. The company strongly encourages investors to review its financial
statements in their entirety and to not rely on any single financial measure.
Because non-GAAP financial measures are not standardized, it may not be possible
to compare these financial measures with other companies’ non-GAAP financial
measures having the same or similar names.
About Rubio's® Restaurants, Inc.
(NASDAQ: RUBO)
Bold,
distinctive, Baja-inspired food is the hallmark of Rubio's Fresh Mexican
Grill(R). The first Rubio's was opened in 1983 in the Mission Bay community
of San Diego by Ralph Rubio and his father, Ray Rubio. Rubio's is credited with
introducing fish tacos to Southern California and starting a phenomenon that has
spread coast to coast. In addition to chargrilled marinated chicken, lean carne
asada steak, and slow-roasted pork carnitas, Rubio's menu features seafood items
including grilled mahi mahi and shrimp. Guacamole and a variety of salsas and
proprietary sauces are made from scratch daily, and Rubio's uses canola oil with
zero grams trans fat per serving. The menu includes tacos, burritos, salads and
bowls, quesadillas, HealthMex(R) offerings which are lower in fat and calories,
and domestic and imported beer in most locations. Each restaurant design is
reminiscent of the relaxed, warm and inviting atmosphere of Baja California, a
coastal state of Mexico. Headquartered in Carlsbad, California, Rubio's
operates, licenses or franchises more than 195 restaurants in California,
Arizona, Colorado, Utah and Nevada. More information can be found at http://www.rubios.com.
Safe
Harbor Disclosure
Some of
the information in this press release or the related conference call may contain
forward-looking statements regarding future events or the future financial
performance of the company. Please note that any statements that may be
considered forward-looking are based on projections; that any projections
involve judgment, and that individual judgments may vary. Moreover, these
projections are based only on limited information available to us now, which is
subject to change. Actual results may differ substantially from any such forward
looking statements as a result of various factors, many of which are beyond the
company’s control, including, among others, the company’s comparable store sales
results and revenues, the adverse effect the significant downturn in the economy
has on the spending and dining out frequency of the company’s customers, the
company’s ability to manage its product, labor expenses and other restaurant
costs, the results of the Company’s evaluation of its strategic alternatives,
the success of the company’s promotions, new product offerings and marketing
strategies, the company’s ability to recruit and retain qualified personnel,
adverse effects of weather and natural disasters, the adequacy of the company’s
reserves related to closed stores or stores to be sold, increased depreciation
or asset write downs, the company’s ability to manage ongoing and unanticipated
costs, such as costs to comply with regulatory compliance and litigation costs,
the company’s ability to implement a franchise strategy, the company’s ability
to open additional restaurants in the coming periods that satisfy the company’s
revenue objectives, the company’s ability to successfully resolve the company’s
class action lawsuits filed in California and the effects of ever-increasing
competition. These and other factors can be found in the company’s filings with
the SEC including, without limitation, in the “Risk Factors” section of the
company’s most recent Annual Report on Form 10-K. The company undertakes no
obligation to release publicly the results of any revision to these
forward-looking statements to reflect events or circumstances following the date
of this release.
RUBIO’S
RESTAURANTS, INC
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(In
thousands, except per share data)
(unaudited)
|
For
the Thirteen Weeks Ended
|
For
the Fifty-Two Weeks Ended
|
|||||||||||||||
|
December
27, 2009
|
December
28, 2008
|
December
27, 2009
|
December
28, 2008
|
|||||||||||||
|
RESTAURANT
SALES
|
$
|
45,417
|
$
|
44,963
|
$
|
188,749
|
$
|
179,130
|
||||||||
|
FRANCHISE
AND LICENSING REVENUES
|
26
|
21
|
129
|
174
|
||||||||||||
|
TOTAL
REVENUES
|
45,443
|
44,984
|
188,878
|
179,304
|
||||||||||||
|
COST
OF SALES
|
11,451
|
12,824
|
49,688
|
51,348
|
||||||||||||
|
RESTAURANT
LABOR
|
14,884
|
14,323
|
61,215
|
56,621
|
||||||||||||
|
RESTAURANT
OCCUPANCY AND OTHER
|
11,331
|
10,938
|
46,863
|
42,591
|
||||||||||||
|
GENERAL
AND ADMINISTRATIVE EXPENSES
|
5,754
|
4,381
|
18,830
|
17,942
|
||||||||||||
|
DEPRECIATION
AND AMORTIZATION
|
2,482
|
2,641
|
9,907
|
9,652
|
||||||||||||
|
PRE-OPENING
EXPENSES
|
14
|
201
|
353
|
689
|
||||||||||||
|
ASSET
IMPAIRMENT AND STORE CLOSURE EXPENSE (REVERSAL)
|
683
|
-
|
1,068
|
(46
|
)
|
|||||||||||
|
LOSS
ON DISPOSAL/SALE OF PROPERTY
|
110
|
76
|
369
|
295
|
||||||||||||
|
OPERATING
(LOSS) INCOME
|
(1,266
|
)
|
(400
|
)
|
585
|
212
|
||||||||||
|
INTEREST
(EXPENSE) INCOME AND INVESTMENT INCOME, NET
|
(37
|
)
|
(60
|
)
|
(129
|
)
|
(133
|
)
|
||||||||
|
(LOSS)
INCOME BEFORE INCOME TAXES
|
(1,303
|
)
|
(460
|
)
|
456
|
79
|
||||||||||
|
INCOME
TAX (BENEFIT) EXPENSE
|
(451
|
)
|
(165
|
)
|
64
|
(5
|
)
|
|||||||||
|
NET
(LOSS) INCOME
|
$
|
(852
|
)
|
$
|
(295
|
)
|
$
|
392
|
$
|
84
|
||||||
|
BASIC
EARNINGS DATA
|
||||||||||||||||
|
EPS
|
$
|
(0.08
|
)
|
$
|
(0.03
|
)
|
$
|
0.04
|
$
|
0.01
|
||||||
|
AVERAGE
SHARES OUTSTANDING
|
10,035
|
9,951
|
9,993
|
9,951
|
||||||||||||
|
DILUTED
EARNINGS DATA
|
||||||||||||||||
|
EPS
|
$
|
(0.08
|
)
|
$
|
(0.03
|
)
|
$
|
0.04
|
$
|
0.01
|
||||||
|
AVERAGE
SHARES OUTSTANDING
|
10,035
|
9,951
|
10,072
|
10,014
|
||||||||||||
RUBIO’S
RESTAURANTS, INC
OPERATING
RESULTS AS A PERCENTAGE OF TOTAL REVENUES
(unaudited)
|
Percentage
of Total Revenues
|
Percentage
of Total Revenues
|
|||||||||||||||
|
For
the Thirteen Weeks Ended
|
For
the Fifty-Two Weeks Ended
|
|||||||||||||||
|
December
27, 2009
|
December
28, 2008
|
December
27, 2009
|
December
28, 2008
|
|||||||||||||
|
TOTAL
REVENUES
|
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
|
COST
OF SALES (1)
|
25.2 | % | 28.5 | % | 26.3 | % | 28.7 | % | ||||||||
|
RESTAURANT
LABOR (1)
|
32.8 | % | 31.9 | % | 32.4 | % | 31.6 | % | ||||||||
|
RESTAURANT
OCCUPANCY AND OTHER (1)
|
24.9 | % | 24.3 | % | 24.8 | % | 23.8 | % | ||||||||
|
GENERAL
AND ADMINISTRATIVE EXPENSES
|
12.7 | % | 9.7 | % | 10.0 | % | 10.0 | % | ||||||||
|
DEPRECIATION
AND AMORTIZATION
|
5.5 | % | 5.9 | % | 5.2 | % | 5.4 | % | ||||||||
|
PRE-OPENING
EXPENSES
|
0.0 | % | 0.4 | % | 0.2 | % | 0.4 | % | ||||||||
|
ASSET
IMPAIRMENT AND STORE CLOSURE EXPENSE (REVERSAL)
|
1.5 | % | 0.0 | % | 0.6 | % | 0.0 | % | ||||||||
|
LOSS
ON DISPOSAL/SALE OF PROPERTY
|
0.2 | % | 0.2 | % | 0.2 | % | 0.2 | % | ||||||||
|
OPERATING
(LOSS) INCOME
|
-2.8 | % | -0.9 | % | 0.3 | % | 0.1 | % | ||||||||
|
INTEREST
(EXPENSE) INCOME AND INVESTMENT INCOME, NET
|
-0.1 | % | -0.1 | % | -0.1 | % | -0.1 | % | ||||||||
|
(LOSS)
INCOME BEFORE INCOME TAXES
|
-2.9 | % | -1.0 | % | 0.2 | % | 0.0 | % | ||||||||
|
INCOME
TAX (BENEFIT) EXPENSE
|
-1.0 | % | -0.4 | % | 0.0 | % | 0.0 | % | ||||||||
|
NET
(LOSS) INCOME
|
-1.9 | % | -0.7 | % | 0.2 | % | 0.0 | % | ||||||||
(1) As
a percentage of restaurant sales
RUBIO’S
RESTAURANTS, INC
CONDENSED
CONSOLIDATED BALANCE SHEETS
(in
thousands)
(unaudited)
|
December
27, 2009
|
December
28, 2008
|
|||||||
|
CASH
AND SHORT-TERM INVESTMENTS
|
$ | 9,544 | $ | 5,816 | ||||
|
OTHER
CURRENT ASSETS
|
9,505 | 10,913 | ||||||
|
PROPERTY
- NET
|
43,086 | 45,947 | ||||||
|
OTHER
ASSETS
|
12,566 | 10,473 | ||||||
|
TOTAL
ASSETS
|
$ | 74,701 | $ | 73,149 | ||||
|
CURRENT
LIABILITIES
|
$ | 20,947 | $ | 19,172 | ||||
|
OTHER
LIABILITIES
|
6,599 | 8,591 | ||||||
|
STOCKHOLDERS'
EQUITY
|
47,155 | 45,386 | ||||||
|
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY
|
$ | 74,701 | $ | 73,149 | ||||