BBQ Holdings, Inc. Reports Results for First Quarter 2022
MINNEAPOLIS, May 10, 2022 (GLOBE NEWSWIRE) — BBQ Holdings, Inc. (NASDAQ: BBQ) (the “Company”), an innovating global franchisor, owner and operator of restaurants, today reported financial results for the first fiscal quarter ended April 3, 2022.
First Quarter Highlights:
| First Quarter | |||||||||||||
| (dollars in thousands, except per share data) | 2022 | 2021 | 2020 | 2019 | |||||||||
| Total revenue | $ | 64,184 | $ | 37,319 | $ | 23,855 | $ | 14,193 | |||||
| Net income (loss) | $ | 767 | $ | 799 | $ | 13,707 | $ | 82 | |||||
| Earnings (loss) per diluted share | $ | 0.07 | $ | 0.08 | $ | 1.49 | $ | 0.01 | |||||
| Adjusted net income (loss) | $ | 1,138 | $ | 811 | $ | (484 | ) | $ | 489 | ||||
| Adjusted earnings (loss) per diluted share | $ | 0.11 | $ | 0.09 | $ | (0.05 | ) | $ | 0.05 | ||||
| Cash EBITDA | $ | 3,748 | $ | 3,220 | $ | (457 | ) | $ | 1,030 | ||||
| Restaurant-level margins | 6.4 | % | 9.1 | % | (1.9 | )% | (1.7 | )% | |||||
| Prime costs | 64.3 | % | 60.4 | % | 69.9 | % | 71.0 | % | |||||
| Free cash flow | $ | 3,026 | $ | 2,529 | $ | (1,406 | ) | $ | 809 | ||||
| First Quarter Same Store Sales | ||||||
| 2022 vs. 2021 | 2022 vs. 2020 | 2022 vs. 2019 | ||||
| Famous Dave’s Company-owned | 7.9 | % | 22.6 % | 12.6 % | ||
| Famous Dave’s Franchise-operated* | 8.6 | % | 21.3 % | 5.6 % | ||
| Granite City** | 24.1 | % | 21.4 % | (1.7)% | ||
| Village Inn Company-owned** | 19.1 | % | 8.8 % | (8.0)% | ||
| Village Inn Franchise-operated* | 19.9 | % | NA% | NA% | ||
| Bakers Square** | 17.0 | % | (12.5)% | (17.7)% | ||
| Clark Crew | 5.0 | % | 5.8 % | NA% | ||
| Real Urban BBQ** | 11.0 | % | NA% | NA% | ||
| Tahoe Joe’s** | 6.0 | % | NA% | NA% | ||
* as reported by franchisees
** includes sales under prior ownership
*** it is our policy to include in our same store net sales base, restaurants that have been open for 12 months under our company’s ownership
Subsequent Events:
On April 11, 2022, we closed the purchase of the Barrio Queen Restaurant Business. The purchase price of approximately $28.5 million was funded with cash and debt. See 8-K filed with the SEC on March 14, 2022 for additional information regarding this acquisition, including the Asset Purchase Agreement.
On November 23, 2021, the Company, entered into a credit agreement (the “Credit Agreement”) with JPMorgan Chase Bank, N.A. The Credit Agreement had a five-year term and provided for up to a $5.0 million revolving line of credit and a $15.0 million term loan. On April 11, 2022 (the “First Amendment Date”), the Company amended the Credit Agreement (the “Amended Credit Agreement”), increasing the revolving line of credit to $25.0 million and the term loan to $25.0 million. The Amended Credit Agreement as well as additional information can be seen in the 8-K filed by the Company on April 13, 2022.
Current and Projected (“PF”) Portfolio:
| FAMOUS DAVE’S | VILLAGE INN | GRANITE CITY | BAKERS SQUARE | REAL URBAN BBQ | CLARK CREW BBQ | TAHOE JOE’S | BARRIO QUEEN | BAR CONCEPTS | TOTAL | |||||||||||
| 2022 Q1 | 2022 PF | 2022 Q1 | 2022 PF | 2022 Q1 | 2022 PF | 2022 Q1 | 2022 PF | 2022 Q1 | 2022 PF | 2022 Q1 | 2022 PF | 2022 Q1 | 2022 PF | 2022 Q1 | 2022 PF | 2022 Q1 | 2022 PF | 2022 Q1 | 2022 PF | |
| Corporate Locations | 40 | 43 | 22 | 22 | 18 | 18 | 14 | 31 | 2 | 2 | 1 | 1 | 4 | 4 | 7 | 3 | 4 | 104 | 132 | |
| Brick & Mortar | 31 | 33 | 21 | 21 | 17 | 17 | 11 | 11 | 2 | 2 | 1 | 1 | 4 | 4 | 7 | 3 | 4 | 90 | 100 | |
| Dual Concept | 1 | 1 | 1 | 1 | 1 | 1 | 3 | 3 | ||||||||||||
| Ghost Kitchens | 8 | 9 | 3 | 20 | 11 | 29 | ||||||||||||||
| Franchise/License Locations | 104 | 105 | 103 | 105 | 4 | 24 | 211 | 234 | ||||||||||||
| Brick & Mortar | 85 | 85 | 103 | 105 | 188 | 190 | ||||||||||||||
| Dual Concept | 1 | 0 | 1 | |||||||||||||||||
| Ghost Kitchens | 19 | 19 | 4 | 24 | 23 | 43 | ||||||||||||||
| Total Locations | 144 | 148 | 125 | 127 | 18 | 18 | 18 | 55 | 2 | 2 | 1 | 1 | 4 | 4 | 7 | 3 | 4 | 315 | 366 | |
| Growth Plan | New line serve / drive thru and Ghost locations | New trendy breakfast prototype | Dual concept with new breakfast brand | Sell pies in retail, kiosk and other restaurants | New line serve locations and CPGs | CPGs | Dual Concept with FDs | Franchise and Corporate | Corporate | |||||||||||
| # Opening in 2022 | Q1: 3 | Q1: 1 | n/a | Q1: 1 | n/a | n/a | Q1: – | n/a | Q1: – | Total: | 47 | |||||||||
| Q2: 1 | Q2: 1 | Q2: 5 | Q2: – | Q2: 1 | ||||||||||||||||
| Q3: 1 | Q3: 1 | Q3: 25 | Q3: – | Q3: – | ||||||||||||||||
| Q4: 1 | Q4: 2 | Q4: 3 | Q4: 1 | Q4: – | ||||||||||||||||
Filling Latent Capacity:
- Dual concept Granite City/Village Inn opened in Maple Grove, MN in March 2022.
- Famous Dave’s ghost kitchen opened in Granite City in Fargo, ND in April 2022.
Organic Unit Growth:
- Famous Dave’s Drive thru in Salt Lake City, UT opened in March 2022.
- Famous Dave’s franchisee opened an additional restaurant in Grand Forks, ND in April 2022.
- Famous Dave’s franchisee opened an additional restaurant in the United Arab Emirates in February 2022.
- New Village Inn prototype expected to open in Omaha, NE in the third quarter of 2022.
Mergers and Acquisitions:
- Closed the purchase of Barrio Queen in April 2022.
- Closed the purchase of three bar-centric company-owned locations in March 2022.
- Signed an asset purchase agreement for an additional bar-centric location in April 2022.
Updated 2022 Guidance:
- Net restaurant revenue of $280mm to $290mm
- Net income and adjusted net income range from $12.5mm to $15.5mm
- We expect to exhaust our deferred tax assets mid-2022
- Diluted earnings per share and adjusted earnings per diluted share of $1.15 to $1.45
- Cash EBITDA range from $23mm to $25mm
- Free cash flow range from $13.5mm to $15.5mm
12-Month Pro Forma Guidance*:
- Net restaurant revenue of $290mm to $310mm
- Net income and adjusted net income range from $14.0mm to $17.0mm
- Diluted earnings per share and adjusted earnings per diluted share of $1.30 to $1.60
- Cash EBITDA range from $25.5mm to $27.5mm
- Free cash flow range from $15.5mm to $17.5mm
*Projected results for the next 12 months inclusive of expected results of all completed acquisitions
Executive Comments
Jeff Crivello, CEO, commented, “The beginning of 2022 marked another successful quarter executing on our three core growth initiatives which include filling latent capacity of our current restaurants, organic unit growth, and building a diversified portfolio of food and beverage brands via accretive M&A.
The Company diversified into authentic Mexican cuisine with the Barrio Queen purchase, which closed in April 2022. Barrio Queen adds a vibrant, growing brand to our portfolio. We are excited to build on Barrio Queen’s success.
Despite a challenging inflationary environment, and acknowledge continued headwinds, we continue to deliver consistent results, and look forward to a successful 2022.”
Key Operating Metrics
| Three Months Ended | |||||||
| April 3, 2022 | April 4, 2021 | ||||||
| Restaurant count: | |||||||
| Franchise-operated | 211 | 100 | |||||
| Company-owned | 104 | 47 | |||||
| Total | 315 | 147 | |||||
| Same store net restaurant sales %: | |||||||
| Franchise-operated | 8.6 | % | 16.0 | % | |||
| Company-owned | 14.5 | % | 17.7 | % | |||
| Total | 11.0 | % | 13.1 | % | |||
| (in thousands, expect per share data) | |||||||
| System-wide restaurant sales(1) | $ | 158,731 | $ | 87,040 | |||
| Net income attributable to shareholders | $ | 767 | $ | 799 | |||
| Net income attributable to shareholders, per diluted share | $ | 0.07 | $ | 0.08 | |||
| Cash EBITDA(2) | $ | 3,748 | $ | 3,220 | |||
(1) System-wide restaurant sales include sales for all Company-owned and franchise-operated restaurants, as reported by franchisees. Restaurant sales for franchise-operated restaurants are not revenues of the Company and are not included in the Company’s consolidated financial statements.
(2) Cash EBITDA is a non-GAAP measure. A reconciliation of all non-GAAP measures to the most directly comparable GAAP measure is included in the accompanying financial tables. See “Non-GAAP Reconciliation.”
First Quarter 2022 Review
Total revenue for the first quarter of 2022 was $64.2 million, up 72.0% from the first quarter of 2021. The increase in year-over-year revenue was driven primarily by the acquisitions of the Village Inn and Bakers Square brands, four additional Famous Dave’s restaurants, and the Tahoe Joe’s Steakhouse brand and an increase in dine-in traffic across our brands.
Net income attributable to shareholders was approximately $767,000, or $0.07 per diluted share, in the first quarter of fiscal 2022 compared to an income of approximately $799,000, or $0.08 per diluted share, in the first quarter of fiscal 2021. This decrease in net income was mainly attributable to increased food and beverage costs and increased labor costs, as well as an impairment charge related to store closure of approximately $409,000. Cash EBITDA, a non-GAAP measure, increased $528,000 from $3.2 million in the first quarter of 2021 to $3.7 million in the first quarter of 2022. A reconciliation between cash EBITDA and its most directly comparable GAAP measure is included in the accompanying financial tables.
Restaurant-level operating margin as a percentage of restaurant net sales, a non-GAAP measure, was 6.4% for Company-owned restaurants in the first quarter of fiscal year 2022, compared to 9.1% in the first quarter of fiscal year 2021. This decrease in restaurant-level operating margin as a percentage of net restaurant sales was due primarily to increases in the cost of food and labor throughout 2021 and the first quarter of 2022. A reconciliation of restaurant sales to restaurant-level margin is included in the accompanying financial tables. General and administrative expenses for the quarter ended April 3, 2022, and April 4, 2021, represented approximately 8.2% and 10.8% of total revenues, respectively. This decrease in general and administrative expenses as a percentage of total revenues was due primarily to the larger increase in total revenue relative to the increase in general and administrative expenses.
About BBQ Holdings
BBQ Holdings, Inc. (NASDAQ: BBQ) is a national restaurant company engaged in franchising, ownership and operation of casual and fast dining restaurants. As of May 10, 2022, BBQ Holdings had multiple brands with over 100 Company-owned locations and over 200 franchised locations, including ghost kitchens operating out of the kitchen of another restaurant location or shared kitchen space. While BBQ Holdings continues to diversify its ownership in the restaurant community, it was founded with the principle of combining the “art and science” of barbecue to serve up the very best of the best to barbecue lovers everywhere. Along with a wide variety of BBQ favorites served at their BBQ restaurants, BBQ Holdings also operates Granite City Food and Brewery restaurants which offer award winning craft beer and a made-from-scratch, chef driven menu featuring contemporary American cuisine. Village Inn and Bakers Square add a legendary Family Dining element to BBQ Holdings, with these concepts specializing in breakfast and pies. Tahoe Joe’s is known for their pellet-broiler cooked and smoked infused steak.
Non-GAAP Financial Measures
To supplement its condensed consolidated financial statements, which are prepared and presented in accordance with accounting principles generally accepted in the United States (“GAAP”), the Company uses non-GAAP measures including those indicated below. These non-GAAP measures exclude significant expenses and income that are required by GAAP to be recorded in the Company’s consolidated financial statements and are subject to inherent limitations. By providing non-GAAP measures, together with a reconciliation to the most comparable GAAP measure, the Company believes that it is enhancing investors’ understanding of the Company’s business and results of operations. These measures are not intended to be considered in isolation of, as substitutes for, or superior to, financial measures prepared and presented in accordance with GAAP. The non-GAAP measures presented may be different from the measures used by other companies. The Company urges investors to review the reconciliation of its non-GAAP measures to the most directly comparable GAAP measure, included in the accompanying financial tables.
Cash EBITDA is net income plus asset impairment, estimated lease termination charges and other closing costs, depreciation and amortization, net interest expense, net (gain) loss on disposal of equipment, stock-based compensation, acquisition costs, pre-opening costs, severance, gain on debt forgiveness, gain on bargain purchase, provision (benefit) for income taxes, and non-cash rent.
Free cash flow is the Cash EBITDA less cash paid for property, equipment and leasehold improvements. Adjusted net income (loss) is net income plus asset impairment, estimated lease termination charges and other closing costs, less gain on debt forgiveness and gain on bargain purchase. Adjusted earnings per diluted share equals adjusted net income (loss) divided by the weighted average shares outstanding, assuming dilution.
Restaurant-level operating margins are equal to net restaurant sales, less restaurant-level food and beverage costs, labor and benefit costs, and operating expenses for Company-owned restaurants.
Forward-Looking Statements
Statements in this press release that are not strictly historical, including but not limited to statements regarding the timing of the Company’s restaurant openings, the timing of refreshes and the timing or success of refranchising plans, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, which may cause the Company’s actual results to differ materially from expected results. Although the Company believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectation will be attained. Factors that could cause actual results to differ materially from the Company’s expectation include the impact of the COVID-19 virus pandemic, financial performance, inflation, restaurant industry conditions, execution of restaurant development and construction programs, franchisee performance, changes in local or national economic conditions, availability of financing, governmental approvals and other risks detailed from time to time in the Company’s SEC reports.
Contact:
Jeff Crivello – Chief Executive Officer
[email protected]
BBQ HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(Unaudited)
| Three Months Ended | |||||||||
| April 3, 2022 | April 4, 2021 | ||||||||
| Revenue: | |||||||||
| Restaurant sales, net | $ | 58,731 | $ | 33,603 | |||||
| Franchise royalty and fee revenue | 3,607 | 2,374 | |||||||
| Franchisee national advertising fund contributions | 490 | 328 | |||||||
| Licensing and other revenue | 1,356 | 1,014 | |||||||
| Total revenue | 64,184 | 37,319 | |||||||
| Costs and expenses: | |||||||||
| Food and beverage costs | 18,357 | 10,057 | |||||||
| Labor and benefits costs | 19,386 | 10,254 | |||||||
| Operating expenses | 17,239 | 10,249 | |||||||
| Depreciation and amortization expenses | 2,423 | 1,552 | |||||||
| General and administrative expenses | 5,291 | 4,038 | |||||||
| National advertising fund expenses | 490 | 328 | |||||||
| Asset impairment, estimated lease termination charges and other closing costs, net | 409 | 12 | |||||||
| Pre-opening expenses | 65 | 28 | |||||||
| Loss (gain) on disposal of property, net | 44 | (8 | ) | ||||||
| Total costs and expenses | 63,704 | 36,510 | |||||||
| Income from operations | 480 | 809 | |||||||
| Other income (expense): | |||||||||
| Interest expense | (120 | ) | (54 | ) | |||||
| Interest income | 8 | 24 | |||||||
| Gain on bargain purchase | 38 | — | |||||||
| Total other income (expense) | (74 | ) | (30 | ) | |||||
| Income before income taxes | 406 | 779 | |||||||
| Income tax (expense) benefit | 241 | (82 | ) | ||||||
| Net income | 647 | 697 | |||||||
| Net (income) loss attributable to non-controlling interest | 120 | 102 | |||||||
| Net income attributable to shareholders | $ | 767 | $ | 799 | |||||
| Income per common share: | |||||||||
| Basic net income per share attributable to shareholders | $ | 0.07 | $ | 0.09 | |||||
| Diluted net income per share attributable to shareholders | $ | 0.07 | $ | 0.08 | |||||
| Weighted average shares outstanding – basic | 10,552 | 9,208 | |||||||
| Weighted average shares outstanding – diluted | 10,649 | 9,501 | |||||||
BBQ HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
(unaudited)
| ASSETS | ||||||||
| Current assets: | April 3, 2022 | January 2, 2022 | ||||||
| Cash and cash equivalents | $ | 35,431 | $ | 40,309 | ||||
| Restricted cash | 1,677 | 1,152 | ||||||
| Accounts receivable, net of allowance for doubtful accounts of $301,000 and $270,000, respectively | 3,188 | 5,476 | ||||||
| Inventories | 3,281 | 3,316 | ||||||
| Prepaid expenses and other current assets | 4,313 | 3,919 | ||||||
| Total current assets | 47,890 | 54,172 | ||||||
| Property, equipment and leasehold improvements, net | 39,748 | 39,943 | ||||||
| Other assets: | ||||||||
| Operating lease right-of-use assets | 81,248 | 78,843 | ||||||
| Goodwill | 5,676 | 3,037 | ||||||
| Intangible assets, net | 23,714 | 23,444 | ||||||
| Deferred tax asset, net | 3,922 | 3,692 | ||||||
| Other assets | 1,493 | 1,292 | ||||||
| Total assets | $ | 203,691 | $ | 204,423 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 6,951 | $ | 7,661 | ||||
| Current portion of operating lease liabilities | 12,511 | 11,904 | ||||||
| Current portion of long-term debt and finance lease liabilities | 1,488 | 1,621 | ||||||
| Accrued compensation and benefits | 6,157 | 7,121 | ||||||
| Gift card liability | 8,809 | 11,257 | ||||||
| Other current liabilities | 8,752 | 8,510 | ||||||
| Total current liabilities | 44,668 | 48,074 | ||||||
| Long-term liabilities: | ||||||||
| Operating lease liabilities, less current portion | 79,362 | 77,729 | ||||||
| Finance lease liabilities, less current portion | 292 | 79 | ||||||
| Long-term debt, less current portion | 12,819 | 13,197 | ||||||
| Other liabilities | 1,087 | 997 | ||||||
| Total liabilities | 138,228 | 140,076 | ||||||
| Shareholders’ equity: | ||||||||
| Common stock, $.01 par value, 100,000 shares authorized, 10,750 and 10,495 shares issued and outstanding at April 3, 2022 and January 2, 2022, respectively | 108 | 105 | ||||||
| Additional paid-in capital | 22,248 | 21,782 | ||||||
| Retained earnings | 44,158 | 43,391 | ||||||
| Total shareholders’ equity | 66,514 | 65,278 | ||||||
| Non-controlling interest | (1,051 | ) | (931 | ) | ||||
| Total equity | 65,463 | 64,347 | ||||||
| Total liabilities and equity | $ | 203,691 | $ | 204,423 | ||||
BBQ HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
| Three Months Ended | ||||||||
| April 3, 2022 | April 4, 2021 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 647 | $ | 697 | ||||
| Adjustments to reconcile net income to cash flows provided by operations: | ||||||||
| Depreciation and amortization | 2,423 | 1,552 | ||||||
| Stock-based compensation | 384 | 318 | ||||||
| Net (gain) loss on disposal | 44 | (8 | ) | |||||
| Asset impairment, estimated lease termination charges and other closing costs, net | 409 | 12 | ||||||
| Gain on bargain purchase | (38 | ) | — | |||||
| Amortization of operating right-of-use assets | 2,894 | 2,134 | ||||||
| Deferred tax asset | (230 | ) | 82 | |||||
| Other non-cash items | (6 | ) | 186 | |||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable, net | 2,296 | 598 | ||||||
| Prepaid expenses and other assets | (114 | ) | (1,197 | ) | ||||
| Accounts payable | (710 | ) | 1,635 | |||||
| Accrued compensation and benefits | (871 | ) | 1,678 | |||||
| Lease liabilities | (3,258 | ) | (1,513 | ) | ||||
| Gift card liability | (2,544 | ) | (1,563 | ) | ||||
| Accrued and other liabilities | 62 | (425 | ) | |||||
| Cash flows provided by operating activities | 1,388 | 4,186 | ||||||
| Cash flows from investing activities: | ||||||||
| Purchases of property, equipment and leasehold improvements | (722 | ) | (691 | ) | ||||
| Payments for acquired restaurants | (4,434 | ) | — | |||||
| Payments received on note receivable | — | 6 | ||||||
| Cash flows provided by (used for) investing activities | (5,156 | ) | (685 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Payments on long-term debt | (562 | ) | (519 | ) | ||||
| Tax payments for restricted stock units and stock options exercised | (130 | ) | — | |||||
| Proceeds from exercise of stock options | 107 | — | ||||||
| Cash flows provided by (used for) financing activities | (585 | ) | (519 | ) | ||||
| Increase (decrease) in cash, cash equivalents and restricted cash | (4,353 | ) | 2,982 | |||||
| Cash, cash equivalents and restricted cash, beginning of period | 41,461 | 19,603 | ||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 37,108 | $ | 22,585 | ||||
| Supplemental Disclosures | ||||||||
| Cash paid for interest, net | $ | 107 | $ | 116 | ||||
| Non-cash investing and financing activities: | ||||||||
| Operating right-of-use assets acquired | 4,533 | — | ||||||
| Lease liabilities assumed pursuant to acquisitions | 4,574 | — | ||||||
| Gift card liability assumed pursuant to acquisitions | 96 | — | ||||||
| Inventory acquired pursuant to acquisitions | 85 | — | ||||||
BBQ HOLDINGS, INC. AND SUBSIDIARIES
OPERATING RESULTS
(unaudited)
| Three Months Ended | |||||
| April 3, 2022 | April 4, 2021 | ||||
| Food and beverage costs(1) | 31.3 | % | 29.9 | % | |
| Labor and benefits costs(1) | 33.0 | % | 30.5 | % | |
| Operating expenses(1) | 29.3 | % | 30.5 | % | |
| Restaurant-level operating margin(1)(2) | 6.4 | % | 9.1 | % | |
| Depreciation and amortization expenses(3) | 3.8 | % | 4.2 | % | |
| General and administrative expenses(3) | 8.2 | % | 10.8 | % | |
| Income (loss) from operations(3) | 0.7 | % | 2.2 | % | |
(1) As a percentage of restaurant sales, net
(2) Restaurant-level operating margins are equal to restaurant sales, net, less restaurant-level food and beverage costs, labor and benefit costs, and operating expenses.
(3) As a percentage of total revenue
BBQ HOLDINGS, INC. AND SUBSIDIARIES
RESTAURANT-LEVEL PROFIT AND RESTAURANT-LEVEL MARGIN (1)
NON-GAAP RECONCILIATION
(in thousands)
| Three Months Ended | |||||||||
| April 3, 2022 | April 4, 2021 | ||||||||
| Restaurant sales, net | $ | 58,731 | $ | 33,603 | |||||
| Restaurant operating costs(1) | 54,982 | 30,560 | |||||||
| Restaurant-level profit | $ | 3,749 | $ | 3,043 | |||||
| Restaurant-level margin | 6.4 | % | 9.1 | % | |||||
(1) For company-owned restaurants.
(2) Restaurant operating costs consist of food and beverage costs, labor and benefits costs and operating expenses.
BBQ HOLDINGS, INC. AND SUBSIDIARIES
CASH EBITDA AND FREE CASH FLOW
NON-GAAP RECONCILIATION
(in thousands, except per share data)
(unaudited)
| Three Months Ended | ||||||||||||||||
| April 3, 2022 | April 4, 2021 | March 29, 2020 | March 31, 2019 | |||||||||||||
| (dollars in thousands) | ||||||||||||||||
| Net income | $ | 647 | $ | 697 | $ | 13,311 | $ | 82 | ||||||||
| Asset impairment and estimated lease termination charges and other closing costs | 409 | 12 | 173 | 407 | ||||||||||||
| Depreciation and amortization | 2,423 | 1,552 | 1,045 | 264 | ||||||||||||
| Interest expense, net | 112 | 30 | 76 | 17 | ||||||||||||
| Net loss (gain) on disposal of equipment | 44 | (8 | ) | (477 | ) | (6 | ) | |||||||||
| Stock-based compensation | 384 | 318 | 137 | 83 | ||||||||||||
| Acquisition costs | 167 | – | (62 | ) | 163 | |||||||||||
| Pre-opening costs | 65 | 28 | 25 | – | ||||||||||||
| Severance | – | – | 28 | 3 | ||||||||||||
| Gain on bargain purchase | (38 | ) | – | (14,364 | ) | – | ||||||||||
| Provision for income taxes | (241 | ) | 82 | (349 | ) | 17 | ||||||||||
| Non-cash rent | (224 | ) | 509 | – | – | |||||||||||
| Cash EBITDA | $ | 3,748 | $ | 3,220 | $ | (457 | ) | $ | 1,030 | |||||||
| Less cash paid for property, equipment and leasehold improvements | (722 | ) | (691 | ) | (949 | ) | (221 | ) | ||||||||
| Free cash flow | $ | 3,026 | $ | 2,529 | $ | (1,406 | ) | $ | 809 | |||||||
BBQ HOLDINGS, INC. AND SUBSIDIARIES
ADJUSTED NET INCOME (LOSS) AND EARNINGS (LOSS) PER DILUTED SHARE
NON-GAAP RECONCILIATION
(in thousands, except per share data)
(unaudited)
| Three Months Ended | ||||||||||||||
| (dollars in thousands) | April 3, 2022 | April 4, 2021 | March 29, 2020 | March 31, 2019 | ||||||||||
| Net income (loss) attributable to shareholders | $ | 767 | $ | 799 | $ | 13,707 | $ | 82 | ||||||
| Asset impairment, estimated lease termination charges and other closing costs | 409 | 12 | 173 | 407 | ||||||||||
| Gain on bargain purchase | (38 | ) | — | (14,364 | ) | — | ||||||||
| Adjusted net income (loss) | 1,138 | 811 | (484 | ) | 489 | |||||||||
| Weighted average shares outstanding – diluted | 10,649 | 9,501 | 9,202 | 9,189 | ||||||||||
| Adjusted earnings (loss) per diluted share | $ | 0.11 | $ | 0.09 | $ | (0.05 | ) | $ | 0.05 | |||||
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