CALABASAS HILLS, Calif., Jan 31, 2002 (BUSINESS WIRE) -- The Cheesecake Factory
Incorporated (Nasdaq:CAKE) today reported record financial results for the
fiscal fourth quarter and year ended January 1, 2002.
Highlights for the 13-week fiscal fourth quarter ended January 1, 2002 compared
to the 14-week fiscal fourth quarter ended January 2, 2001:
- Total revenues increased 18% to $148.8 million (total revenues
would have increased 28% after adjusting for the extra week in
the same quarter last year)
- Net income increased 16% to $10.9 million
- Diluted net income per share increased 22% to $0.22
- Average weekly sales per restaurant increased 4% to $205,800
Highlights for the 52-week fiscal year ended January 1, 2002 compared to the
53-week fiscal year ended January 2, 2001:
- Total revenues increased 23% to $539.1 million (total revenues
would have increased 26% after adjusting for the extra week in
the prior fiscal year)
- Net income increased 22% to $39.3 million
- Diluted net income per share increased 23% to $0.79
- Average weekly sales per restaurant increased 3% to $206,200
The Company estimates that the extra week in fiscal 2000 benefited diluted net
income per share for both the fourth quarter and year by approximately $0.02 per
share. Accordingly, diluted net income per share would have increased by 38% and
27% for the fiscal quarter and year ended January 1, 2002, respectively, after
adjusting for the extra week.
"We were very pleased with our strong fourth quarter results," said David
Overton, Chairman and CEO. "The events of September 11 created a difficult
operating environment for most consumer businesses going into the December
quarter. We were able to successfully overcome this challenging environment and
once again achieve record levels of sales and earnings, thanks to the hard work
and dedication of our entire team. The results for the quarter were particularly
impressive when considering that our restaurant business model does not rely on
media advertising to drive sales volumes. Instead, our success continues to be
driven by the unique brand identity and competitive positioning of our concepts,
coupled with excellent operational execution to build and maintain our
reputation with consumers for consistent creativity and value in upscale casual
dining."
"Our industry-leading sales productivity metrics also set new record highs
during fiscal 2001," commented Overton. "Compared to the comparable 52-week
period of fiscal 2000, average sales per full-service restaurant open the entire
year increased 4% to $11,018,000. Average sales per productive square foot for
those restaurants increased 3% to $1,000 and average sales per productive seat
rose 6% to $34,353. Our consistent gains in these key productivity measures
continue to give us confidence as we move forward to execute our restaurant
growth plan in both new and existing markets."
The Company currently plans to open as many as 12 new full-service restaurants
during 2002. In addition to Bellevue, Washington that opened on January 29,
2002, the Company has signed leases and development work is underway for the
following potential restaurant locations for 2002: San Antonio, TX; Boston, MA;
Chicago, IL (Grand Lux Cafe); Edina, MN; Ft. Lauderdale, FL; Las Vegas, NV;
Orlando, FL; San Jose, CA; St. Louis, MO and Austin, TX. Signed letters of
intent are also in hand with final lease negotiations underway for potential
locations in Charlotte, NC and Edison, NJ.
The Company's quarterly investor conference call will be available to the public
live through the Internet at 2:00 PM Pacific Time on Thursday, January 31. To
access, select the "Audio Webcasts" option under the "Investor" section of the
Company's website located at www.thecheesecakefactory.com at least 15 minutes
prior to the start of the call to register and download any necessary audio
software. An archived webcast of the call will be available through February 15,
2002.
This press release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward-looking statements
involve known and unknown risks, uncertainties and other factors that may cause
the actual results, performance or achievements of the Company to be materially
different from any future results, performance or achievements expressed or
implied by forward-looking statements. Investors are cautioned that
forward-looking statements are not guarantees of future performance and that
undue reliance should not be placed on such statements. In particular,
forward-looking statements regarding the Company's sales and earnings trends are
subject to risks and uncertainties due to national and regional economic and
public safety conditions that impact consumer confidence and spending.
Additionally, forward-looking statements regarding the number and timing of the
Company's anticipated new restaurant openings are subject to factors both within
and outside of its control, including factors that are under the influence and
control of government agencies and the Company's landlords. Forward-looking
statements speak only as of the dates on which they were made. The Company
undertakes no obligation to publicly update or revise any forward-looking
statements or to make any other forward-looking statements, whether as a result
of new information, future events or otherwise unless required to do so by the
securities laws. Investors are referred to the full discussion of risks and
uncertainties associated with forward-looking statements contained in the
Company's filings with the Securities and Exchange Commission.
The Cheesecake Factory Incorporated operates 49 upscale, casual dining
restaurants under The Cheesecake Factory(R) name that offer an extensive menu of
more than 200 items with an average check of approximately $15.70. The Company
also operates a bakery production facility that produces over 50 varieties of
quality cheesecakes and other baked products for the Company's restaurants and
for other leading foodservice operators, retailers and distributors.
Additionally, the Company operates two upscale casual dining restaurants under
the Grand Lux Cafe(R) name in Los Angeles, California and Las Vegas, Nevada; one
self-service, limited menu "express" foodservice operation under The Cheesecake
Factory Express(R) mark inside the DisneyQuest(R) family entertainment center in
Orlando, Florida; and licenses three bakery cafe outlets to another foodservice
operator under The Cheesecake Factory Bakery Cafe(R) name.
The Cheesecake Factory Incorporated and Subsidiaries
Consolidated Financial Statements
(unaudited; in thousands, except per share and statistical data)
Consolidated Statements of Operations
13 Weeks Ended 14 Weeks Ended
January 1, January 2,
2002 2001
Revenues: Amounts Percents Amounts Percents
Restaurant sales $134,377 90.3% $114,519 91.2%
Bakery sales to other
foodservice operators,
retailers and distributors 14,377 9.7% 11,114 8.8%
Total revenues 148,754 100.0% 125,633 100.0%
Costs and expenses:
Restaurant cost of
sales (1) 33,756 22.7% 29,429 23.4%
Third-party bakery cost
of sales (2) 6,770 4.5% 5,119 4.0%
Labor 44,418 29.9% 37,801 30.1%
Other operating expenses 33,379 22.4% 27,126 21.6%
General and administrative 7,723 5.2% 6,775 5.4%
Depreciation and
amortization 4,932 3.3% 3,981 3.2%
Preopening costs 2,208 1.5% 2,394 1.9%
Total costs and
expenses 133,186 89.5% 112,625 89.6%
Income from operations 15,568 10.5% 13,008 10.4%
Interest income, net 878 0.6% 1,409 1.1%
Other income (expense), net 656 0.4% (490) -0.4%
Income before income taxes 17,102 11.5% 13,927 11.1%
Income tax provision 6,157 4.1% 4,503 3.6%
Net income $10,945 7.4% $ 9,424 7.5%
Basic net income per share (3) $ 0.23 $ 0.20
Basic weighted average shares
outstanding (3) 47,698 46,975
Diluted net income per
share (3) $ 0.22 $ 0.18
Diluted weighted average
shares outstanding (3) 50,212 51,209
52 Weeks Ended 53 Weeks Ended
January 1, January 2,
2002 2001
Revenues: Amounts Percents Amounts Percents
Restaurant sales $499,519 92.7% $406,947 92.9%
Bakery sales to other
foodservice operators,
retailers and distributors 39,611 7.3% 31,334 7.1%
Total revenues 539,130 100.0% 438,281 100.0%
Costs and expenses:
Restaurant cost of
sales (1) 127,005 23.5% 102,994 23.5%
Third-party bakery cost
of sales (2) 19,153 3.6% 14,466 3.3%
Labor 164,372 30.5% 133,287 30.4%
Other operating expenses 120,706 22.4% 95,941 21.9%
General and administrative 27,929 5.2% 25,831 5.9%
Depreciation and
amortization 17,457 3.2% 13,682 3.1%
Preopening costs 7,069 1.3% 5,943 1.4%
Total costs and
expenses 483,691 89.7% 392,144 89.5%
Income from operations 55,439 10.3% 46,137 10.5%
Interest income, net 4,328 0.8% 4,660 1.1%
Other income (expense), net 1,654 0.3% (439) -0.1%
Income before income taxes 61,421 11.4% 50,538 11.5%
Income tax provision 22,112 4.1% 18,257 4.2%
Net income $39,309 7.3% $32,101 7.3%
Basic net income per share (3)$ 0.83 $ 0.69
Basic weighted average shares
outstanding (3) 47,466 46,247
Diluted net income per
share (3) $ 0.79 $ 0.64
Diluted weighted average
shares outstanding (3) 49,897 50,192
Selected Consolidated Balance Sheet Information
January 1, 2002 January 2, 2001
Cash and marketable securities $92,284 $85,314
Total assets 356,927 288,392
Total liabilities 67,456 47,556
Stockholders' equity 289,471 240,836
Supplemental Information
13 Weeks Ended 14 Weeks Ended
January 1, 2002 January 2, 2001
Comparable sales % change 1.5% 3.0%
Restaurant cost of sales % of
restaurant sales 25.1% 25.7%
Bakery cost of sales % of
bakery sales 47.1% 46.1%
Restaurants opened during period 3 3
Restaurants open at period-end 51 43
Restaurant operating weeks (4) 653 580
Operating income before preopening
costs $17,776 $15,402
Operating income margin before
preopening costs 12.0% 12.3%
52 Weeks Ended 53 Weeks Ended
January 1, 2002 January 2, 2001
Comparable sales % change 1.4% 4.5%
Restaurant cost of sales % of
restaurant sales 25.4% 25.3%
Bakery cost of sales % of
bakery sales 48.4% 46.2%
Restaurants opened during period 9 7
Restaurants open at period-end 51 43
Restaurant operating weeks (4) 2,422 2,039
Operating income before preopening
costs $62,508 $52,080
Operating income margin before
preopening costs 11.6% 11.9%
Notes:
(1) Consists of restaurant food, beverage and dessert costs.
(2) Consists of bakery ingredient, packaging and supply costs.
(3) Reflects a 3-for-2 stock split effective June 18, 2001.
(4) After omitting the extra week, restaurant operating weeks for
the fiscal quarter and year ended 1/2/01 were 537 and 1,996,
respectively.
CONTACT: The Cheesecake Factory Incorporated, Calabasas Hills
Jane Vallaire, 818/871-3000
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