Buffalo Wild Wings, Inc. announces 2nd quarter 2005 Results

Buffalo Wild Wings, Inc. announces 2nd quarter 2005 Results
Tags: Burger/Steak/BBQ, Food & Beverage
July 25, 2005

Three months ended Six months ended ------------------- ------------------- June 27, June 26, June 27, June 26, 2004 2005 2004 2005 --------- --------- --------- --------- Revenue: Restaurant sales $35,291 42,570 71,217 87,643 Franchise royalties and fees 4,261 5,653 8,518 11,373 --------- --------- --------- --------- Total revenue 39,552 48,223 79,735 99,016 --------- --------- --------- --------- Costs and expenses: Restaurant operating costs: Cost of sales: 12,342 13,291 24,769 28,522 Labor: 10,095 12,976 20,054 26,193 Operating: 5,358 6,666 10,780 13,523 Occupancy: 2,582 3,395 4,875 6,551 Depreciation: 2,156 2,832 4,189 5,507 General and administrative: (1) 4,569 5,634 8,623 11,260 Preopening 451 600 794 913 Restaurant closures and impairment: 28 4 39 22 --------- --------- --------- --------- Total costs and expenses: 37,581 45,398 74,123 92,491 --------- --------- --------- --------- Income from operations: 1,971 2,825 5,612 6,525 --------- --------- --------- --------- Other income: Interest income: 155 337 288 609 --------- --------- --------- --------- 155 337 288 609 --------- --------- --------- --------- Earnings before income taxes 2,126 3,162 5,900 7,134 Income tax expense 829 1,226 2,301 2,747 --------- --------- --------- --------- Net earnings 1,297 1,936 3,599 4,387 ========= ========= ========= ========= Earnings per common share-- basic $0.16 0.23 0.45 0.52 Earnings per common share-- diluted 0.15 0.22 0.42 0.51 Weighted average shares outstanding--basic 8,096,981 8,448,459 8,044,525 8,407,764 Weighted average shares outstanding--diluted 8,575,186 8,674,507 8,565,395 8,671,148 (1) Contains stock-based compensation of $127, $330, $127, and $854 The following table expresses results of operations as a percentage of total revenue for the periods presented, except for restaurant operating costs which are expressed as a percentage of restaurant sales: Three months ended Six months ended ----------------- ----------------- June 27, June 26, June 27, June 26, 2004 2005 2004 2005 -------- -------- -------- -------- Revenue: Restaurant sales 89.2% 88.3% 89.3% 88.5% Franchising royalties and fees 10.8 11.7 10.7 11.5 -------- -------- -------- -------- Total revenue: 100.0 100.0 100.0 100.0 -------- -------- -------- -------- Costs and expenses: Restaurant operating costs: Cost of sales 35.0 31.2 34.8 32.5 Labor 28.6 30.5 28.2 29.9 Operating 15.2 15.7 15.1 15.4 Occupancy 7.3 8.0 6.8 7.5 Depreciation 5.5 5.9 5.3 5.6 General and administrative 11.6 11.7 10.8 11.4 Preopening 1.1 1.2 1.0 0.9 Restaurant closures and asset impairment 0.1 0.0 0.0 0.0 -------- -------- -------- -------- Total costs and expenses: 95.0 94.1 93.0 93.4 -------- -------- -------- -------- Income from operations: 5.0 5.9 7.0 6.6 -------- -------- -------- -------- Other income: Interest income 0.4 0.7 0.4 0.6 -------- -------- -------- -------- Earnings before income taxes: 5.4 6.6 7.4 7.2 Income tax expense: 2.1 2.5 2.9 2.8 -------- -------- -------- -------- Net earnings: 3.3 4.0 4.5 4.4 ======== ======== ======== ========

BUFFALO WILD WINGS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Dollar amounts in thousands, except share data) (unaudited) December 26, June 26, 2004 2005 ------------ ------------ Assets Current assets: Cash and cash equivalents $12,557 4,501 Marketable securities 36,454 46,482 Accounts receivable--franchisees, net of allowance of $25 689 726 Accounts receivable--other 2,077 2,792 Inventory 1,207 1,122 Income taxes receivable 1,727 745 Prepaid expenses 1,470 758 Deferred income taxes 840 1,059 ------------ ------------ Total current assets: 57,021 58,185 Property and equipment: net 59,649 62,581 Restricted cash: 782 3,017 Other assets: 774 792 Goodwill: 759 759 ------------ ------------ Total assets $118,985 125,334 ============ ============ Liabilities and Stockholders' Equity Current liabilities: Unearned franchise fees: $2,433 2,138 Accounts payable: 5,383 5,023 Accrued compensation and benefits: 6,339 5,715 Accrued expenses: 3,663 3,315 Current portion of deferred lease credits: 509 488 ------------ ------------ Total current liabilities 18,327 16,679 Long-term liabilities: Marketing fund payables: 782 3,017 Deferred income taxes: 6,298 5,625 Deferred lease credits, net of current portion: 7,871 8,674 ------------ ------------ Total liabilities: 33,278 33,995 ------------ ------------ Commitments and contingencies Common stockholders' equity: Undesignated stock, 5,600,000 shares authorized -- -- Common stock, no par value. Authorized 15,600,000 shares; issued and outstanding 8,425,771 and 8,600,010, respectively 71,491 74,348 Deferred compensation (1,817) (3,429) Retained earnings 16,033 20,420 ------------ ------------ Total common stockholders' equity 85,707 91,339 ------------ ------------ Total liabilities and stockholders' equity: $118,985 125,334 ============ ============