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Buffalo Wild Wings, Inc. Announces Fourth Quarter Earnings per Share of $1.10

(February 04, 2014)

MINNEAPOLIS, Feb. 4, 2014 (GLOBE NEWSWIRE) -- Buffalo Wild Wings, Inc. (Nasdaq:BWLD) announced today financial results for the fourth quarter and fiscal year ended December 29, 2013. Highlights for the fourth quarter versus the same period a year ago were:




  • Total revenue increased 12.4% to $341.5 million

     


  • Company-owned restaurant sales grew 13.1% to $319.8 million

     


  • Same-store sales increased 5.2% at company-owned restaurants and 3.1% at franchised locations

     


  • Net earnings increased 24.9% to $20.8 million from $16.7 million, and earnings per diluted share increased 23.6% to $1.10 from $0.89



As a reminder, Buffalo Wild Wings utilizes a 52- or 53-week fiscal year. The fiscal year ended December 29, 2013 was a 52-week year, with the fourth quarter of 2013 having thirteen weeks. The fiscal year ended December 30, 2012 was a 53-week year, with the fourth quarter of 2012 including fourteen weeks.



Sally Smith, President and Chief Executive Officer, commented, "The fourth quarter completed a great year for Buffalo Wild Wings. In 2013 we continued to build the brand for future success by focusing on several key initiatives, including selling chicken wings by portion, our new Stadia restaurant design, continued rollout of our guest experience model, launch of Game Changer beer brewed by Redhook, continued international expansion, and a minority investment in PizzaRev."


Ms. Smith continued, "Same-store sales growth, along with 53 additional company-owned and 49 franchised restaurants, helped drive the total revenue increase of 12.4% in the fourth quarter. Excluding the fourteenth week of the fourth quarter of 2012, total revenue increased 22.0%. Cost of sales and labor improved as a percentage of company-owned restaurant sales in the fourth quarter compared to last year. As a result, our net earnings grew 24.9% and earnings per diluted share increased 23.6% for the quarter when compared to the fourth quarter of 2012. Excluding the fourteenth week in fourth quarter last year, our 2013 fourth quarter net earnings grew 59.6% and earnings per diluted share increased 57.1%."




Total revenue increased 12.4% to $341.5 million in the fourth quarter compared to $303.8 million in the fourth quarter of 2012. Company-owned restaurant sales for the quarter increased 13.1% over the same period in 2012, to $319.8 million, driven by a company-owned same-store sales increase of 5.2% and 53 additional company-owned restaurants at the end of fourth quarter 2013 relative to the same period in 2012. Franchise royalties and fees increased 2.7% to $21.7 million for the quarter versus $21.1 million in the fourth quarter of 2012. This increase is attributed to a franchised same-store sales increase of 3.1% and 49 additional franchised restaurants at the end of the period versus a year ago. The revenue increases were calculated using the thirteen weeks of operation in the fourth quarter of 2013 compared to the fourteen weeks of operation in the fourth quarter of 2012.



Average weekly sales for company-owned restaurants were $58,204 for the fourth quarter of 2013 compared to $55,595 for the same quarter last year, a 4.7% increase. Franchised restaurants averaged $61,167 for the period versus $58,490 in the fourth quarter a year ago, a 4.6% increase.



For the fourth quarter, net earnings increased 24.9% to $20.8 million versus $16.7 million in the fourth quarter of 2012. Earnings per diluted share were $1.10 as compared to fourth quarter 2012 earnings per diluted share of $0.89.



2014 Outlook



Ms. Smith remarked, "With our wall-to-wall televisions and big screens, Buffalo Wild Wings was the place for our guests to Tablegate™ and watch football - from NCAA bowl games to the NFL playoffs culminating with the Super Bowl. Same-store sales for the first five weeks of 2014 were 4.8% at company-owned restaurants and 2.1% at franchised locations compared to (0.2%) and 1.0%, respectively, for the same period last year. The excitement of March Madness is just around the corner and we'll launch our Blazin' Bracket Challenge to engage guests online and in restaurant. In the first quarter we expect to open nine company-owned restaurants, we anticipate our franchise partners in the United States will open 13 locations, and our international franchisees in Mexico have already opened two restaurants."



Ms. Smith concluded, "We continue to evolve Buffalo Wild Wings as a vibrant and strong brand. We recently achieved a significant milestone with the opening of our 1,000th location. We are rolling out new guest-facing technologies, including tabletop tablets and proprietary TV content, to further enhance guest engagement. In addition to continued unit growth, net earnings will be driven by same-store sales momentum and continued operational diligence. We reaffirm our 20% net earnings growth goal for 2014."



Buffalo Wild Wings will be hosting a conference call today, February 4, 2014 at 4:00 p.m. Central Standard Time to discuss these results. There will be a simultaneous webcast conducted at our investor website ir.buffalowildwings.com.



A replay of the call will be available until February 11, 2014. To access this replay, please dial 1-858-384-5517 password 4659693.



About the Company



Buffalo Wild Wings, Inc., founded in 1982 and headquartered in Minneapolis, Minnesota, is a growing owner, operator and franchisor of Buffalo Wild Wings® restaurants featuring a variety of boldly-flavored, made-to-order menu items including its namesake Buffalo, New York-style chicken wings. The Buffalo Wild Wings' menu specializes in 21 mouth-watering signature sauces and seasonings with flavor sensations ranging from Sweet BBQ to Blazin'®. Guests enjoy a welcoming neighborhood atmosphere that includes an extensive multi-media system for watching their favorite sporting events. Buffalo Wild Wings is the recipient of hundreds of "Best Wings" and "Best Sports Bar" awards from across the country. There are currently more than 1,000 Buffalo Wild Wings locations across 49 states in the United States, Canada and Mexico.



Forward-looking Statements



Various remarks we make about future expectations, plans, and prospects for the company constitute forward-looking statements for purposes of the Safe Harbor provisions under the Private Securities Litigation Reform Act of 1995. These statements relate to our future financial and store performance measures and growth goals for 2014 and beyond, including but not limited to those relating to our first quarter sales trends and projected unit and net earnings growth rates for 2014 and beyond. All statements other than statements of historical fact are statements that could be deemed forward-looking statements and are based upon the current beliefs and expectations of our management. We have attempted to identify forward-looking statements by terminology, including "anticipates," "believes," "can," "continue," "could," "estimates," "expects," "intends," "may," "plans," "potential," "predicts," "should" or "will" or the negative of these terms or other comparable terminology. Actual results may vary materially from those contained in forward-looking statements based on a number of factors, including, but not limited to, our ability to achieve and manage our planned expansion, the ability of our franchisees to open and manage new restaurants, market acceptance in the new geographic regions we enter (particularly non-U.S. locations), success of acquired restaurants and  investments in new or emerging concepts, unforeseen obstacles in developing nontraditional sites or non-U.S. locations, our ability to obtain and maintain licenses and permits necessary to operate our existing and new restaurants, our franchisees' adherence to our system standards, the cost of commodities such as traditional chicken wings, the success of our key initiatives and our advertising and marketing campaigns, our ability to control restaurant labor and other restaurant operating costs, the continued service of key management personnel, our ability to protect our name and logo and other proprietary information, economic conditions (including changes in consumer preferences or consumer discretionary spending), the impact of federal, state or local government regulations relating to our employees, the sale of food and alcoholic beverages, the effect of competition in the restaurant industry, and other factors disclosed from time to time in our filings with the U.S. Securities and Exchange Commission, including the factors described under "Risk Factors" in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 30, 2012, as updated in subsequent reports filed with the SEC. 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.



 




























































































































































































































 

 

 

 

 

BUFFALO WILD WINGS, INC. AND SUBSIDIARIES

 

CONSOLIDATED STATEMENTS OF EARNINGS

 

(Dollar and share amounts in thousands except per share data)

 

(unaudited)

 

 

 

 

 

 

 

Three months ended

Twelve months ended  

 

December 29,

2013
 

December 30,

2012
 

December 29,

2013
 

December 30,

2012
 

Revenue: 

 

 

 

 

Restaurant sales 

$ 319,830 

 282,679

 1,185,351

 963,963

Franchise royalties and fees 

 21,717 

 21,147

 81,368

 76,567

Total revenue 

 341,547 

 303,826

 1,266,719

 1,040,530

Costs and expenses: 

 

 

 

 

Restaurant operating costs: 

 

 

 

 

Cost of sales 

 95,345 

 90,440

 363,755

 303,653

Labor 

 95,802 

 85,457

 360,302

 289,167

Operating 

 47,353 

 41,645

 174,338

 141,417

Occupancy 

 18,127 

 14,798

 68,394

 54,147

Depreciation and amortization 

 22,164 

 19,023

 84,978

 67,462

General and administrative  

 26,620 

 21,936

 96,182

 84,149

Preopening 

 4,965 

 5,968

 14,647

 14,630

Loss on asset disposals and impairment 

 1,560 

 1,169

 3,262

 3,291

Total costs and expenses 

 311,936 

 280,436

 1,165,858

 957,916

Income from operations 

 29,611 

 23,390

 100,861

 82,614

Investment income 

 30 

 41

 674

 754

Earnings before income taxes 

 29,641 

 23,431

 101,535

 83,368

Income tax expense 

 8,826 

 6,771

 29,981

 26,093

Net earnings 

$ 20,815 

 16,660

 71,554

 57,275

Earnings per common share – basic 

$ 1.11 

 0.90

 3.81

 3.08

Earnings per common share – diluted 

 1.10 

 0.89

 3.79

 3.06

Weighted average shares outstanding – basic 

 18,787 

 18,608

 18,770

 18,582

Weighted average shares outstanding – diluted 

 18,965 

 18,789

 18,872

 18,705

 

 

 

 

 

 

 

 

 

 


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

Twelve months ended

 

December 29,

2013

December 30,

2012

December 29,

2013

December 30,

2012 

Revenue:

 

 

 

 

Restaurant sales

93.6%

93.0%

93.6%

92.6%

Franchising royalties and fees

6.4

7.0

6.4

7.4

Total revenue

100.0

100.0

100.0

100.0

Costs and expenses:

 

 

 

 

Restaurant operating costs:

 

 

 

 

Cost of sales

29.8

32.0

30.7

31.5

Labor

30.0

30.2

30.4

30.0

Operating

14.8

14.7

14.7

14.7

Occupancy

5.7

5.2

5.8

5.6

Depreciation and amortization

6.5

6.3

6.7

6.5

General and administrative

7.8

7.2

7.6

8.1

Preopening

1.5

2.0

1.2

1.4

Loss on asset disposals and impairment

0.5

0.4

0.3

0.3

Total costs and expenses

91.3

92.3

92.0

92.1

Income from operations

8.7

7.7

8.0

7.9

Investment income

0.0

0.0

0.1

0.1

Earnings before income taxes

8.7

7.7

8.0

8.0

Income tax expense

2.6

2.2

2.4

2.5

Net earnings

6.1

5.5

5.6

5.5


 


































































































































































































































 

 

 

BUFFALO WILD WINGS, INC. AND SUBSIDIARIES



CONSOLIDATED BALANCE SHEETS



(Dollar amounts in thousands)



(unaudited)

 

 

 

 

 

 

 

 

 

December 29,

2013
 

December 30,

2012
 

Assets

 

 

Current assets:

 

 

Cash and cash equivalents

$ 57,502

 21,340

Marketable securities

7,584

9,579

Accounts receivable – net of allowance of $25

21,845

20,203

Inventory

9,492

7,820

Prepaid expenses

4,509

3,869

Refundable income taxes

4,329

4,122

Deferred income taxes

9,287

5,774

Restricted assets

68,208

52,829

Total current assets

182,756

125,536

 

 

 

Property and equipment, net

440,538

386,570

Reacquired franchise rights, net

33,403

37,370

Goodwill

32,533

32,365

Other assets

16,498

9,246

Total assets

$ 705,728

591,087

Liabilities and Stockholders' Equity

 

 

Current liabilities:

 

 

Unearned franchise fees

$ 1,818

 1,763

Accounts payable

 31,806

 36,418

Accrued compensation and benefits

 52,049

 39,637

Accrued expenses

 13,784

 11,461

System-wide payables

 67,017

 51,564

Total current liabilities

166,474

140,843

 

 

 

Long-term liabilities:

 

 

Other liabilities

 1,913

 1,752

Deferred income taxes

 37,822

 37,128

Deferred lease credits

 33,711

 27,992

Total liabilities

 239,920

 207,715

Commitments and contingencies

 

 

Stockholders' equity:

 

 

Undesignated stock, 1,000,000 shares authorized; none issued

 —

 —

Common stock, no par value. Authorized 44,000,000 shares; issued and outstanding 18,803,663 and 18,623,370, respectively

 133,203

 121,450

Retained earnings

 333,601

 262,047

Accumulated other comprehensive loss

(996)

(125)

Total stockholders' equity

 465,808

 383,372

Total liabilities and stockholders' equity

$ 705,728

 591,087


 
































































































































































































































 

 

 

 

BUFFALO WILD WINGS, INC. AND SUBSIDIARIES



CONSOLIDATED STATEMENTS OF CASH FLOWS



(Dollar amounts in thousands)



(unaudited)

 

 

 

 

 

Twelve months ended 

 

December 29,

2013

December 30,

2012
 

Cash flows from operating activities: 

 

 

Net earnings 

$ 71,554

 57,275

Adjustments to reconcile net earnings to cash provided by operations: 

 

 

Depreciation 

 79,881

 64,154

Amortization 

 5,097

 3,308

Loss on asset disposals and impairment 

 3,253

 2,883

Deferred lease credits 

 5,247

 4,322

Deferred income taxes 

 (2,209)

 (835)

Stock-based compensation 

 11,496

 8,119

Excess tax benefit from stock issuance 

  (5,471)

 (4,151)

Change in operating assets and liabilities: 

 

 

Trading securities 

 (1,287)

 (992)

Accounts receivable 

 (2,012)

 (11,797)

Inventory 

 (1,581)

 (1,088)

Prepaid expenses 

 (647)

 (46)

Other assets 

 (1,218)

 (2,071)

Unearned franchise fees 

 55

 (89)

Accounts payable 

 (1,467)

 3,172

Income taxes 

 5,264

 7,590

Accrued expenses 

 13,405

 15,434

Net cash provided by operating activities 

 179,360

 145,188

Cash flows for investing activities: 

 

 

Acquisition of property and equipment 

(138,735)

(130,542)

Acquisition of businesses/investments in affiliates

 (10,288)

 (43,580)

Purchase of marketable securities 

 —

(132,140)

Proceeds from marketable securities 

 3,282

 163,509

Net cash used in investing activities 

(145,741)

(142,753)

Cash flows for financing activities: 

 

 

Proceeds from line of credit

 5,000

 —

Repayments of line of credit

 (5,000)

 —

Issuance of common stock 

 2,514

 2,783

Excess tax benefit from stock issuance

 5,471

 4,151

Tax payments for restricted stock units 

 (4,946)

 (8,522)

Net cash provided by (used in) financing activities 

 3,039

 (1,588)

Effect of exchange rate changes on cash and cash equivalents

 (496)

 (37)

Net increase in cash and cash equivalents 

 36,162

 810

Cash and cash equivalents at beginning of year 

 21,340

 20,530

Cash and cash equivalents at end of year 

$ 57,502

 21,340


































































































































































































































































































































 

 

 

 

 

 

BUFFALO WILD WINGS, INC. AND SUBSIDIARIES

Supplemental Information

 

 

 

 

 

Restaurant Count

 

 

 

 

 

 

 

Company-owned Restaurants:

 

 

 

 

 

 

 

 

Q1

Q2

Q3

Q4

 

2013

397

407

415

434

 

2012

327

330

343

381

 

2011

263

277

288

319

 

2010

235

234

244

259

 

2009

206

215

220

232

 

 

 

 

 

 

 

Franchised Restaurants:

 

 

 

 

 

 

 

 

Q1

Q2

Q3

Q4

 

2013

514

525

534

559

 

2012

505

505

511

510

 

2011

488

492

498

498

 

2010

430

447

457

473

 

2009

373

383

400

420

 

 

 

 

 

 

 

 

 

 

 

 

 

Same-Store Sales

 

 

 

 

 

 

Company-owned Restaurants:

 

 

 

 

 

 

 

Q1

Q2

Q3

Q4

Year

2013

1.4%

3.8%

4.8%

5.2%

3.9%

2012

9.2%

5.3%

6.2%

5.8%

6.6%

2011

3.9%

5.9%

5.7%

8.9%

6.1%

2010

0.1%

(0.1%)

2.6%

(0.3%)

0.6%

2009

6.4%

2.8%

0.8%

2.6%

3.1%

 

 

 

 

 

 

Franchised Restaurants:

 

 

 

 

 

 

 

Q1

Q2

Q3

Q4

Year

2013

2.2%

4.1%

3.9%

3.1%

3.3%

2012

7.3%

5.5%

5.8%

7.4%

6.5%

2011

1.6%

2.7%

4.2%

5.9%

3.6%

2010

0.7%

(0.7%)

0.3%

(1.1%)

(0.2%)

2009

6.0%

3.7%

1.9%

2.0%

3.4%










































































































































































 

 

 

BUFFALO WILD WINGS, INC. AND SUBSIDIARIES

Supplemental Information

 

 

 

 

 

 

 

 

 

 

 

 

Average Weekly Sales Volumes

 

 

 

 

 

 

Company-owned Restaurants:

 

 

 

 

 

 

 

Q1

Q2

Q3

Q4

Year

2013

$56,953

54,759

55,592

58,204

56,392

2012

55,131

51,524

52,561

55,595

53,783

2011

48,845

47,970

49,461

51,983

49,627

2010

45,327

43,021

44,394

45,595

44,601

2009

45,593

42,938

42,602

44,583

43,912

 

 

 

 

 

 

Franchised Restaurants:

 

 

 

 

 

 

 

Q1

Q2

Q3

Q4

Year

2013

$60,050

58,186

58,926

61,167

59,594

2012

57,282

54,766

55,608

58,490

56,570

2011

52,744

50,995

51,350

53,385

52,081

2010

51,532

 49,051

49,005

49,837

49,835

2009

50,729

 48,619

48,458

50,115

49,479

CONTACT: Investor Relations Contact:
Heather Pribyl
952.253.0731

Page: 1


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