CALABASAS HILLS, Calif.--(BUSINESS WIRE)--Feb. 21, 2012--
The Cheesecake Factory Incorporated (NASDAQ: CAKE) today reported
financial results for the fourth quarter of fiscal 2011, which ended on
January 3, 2012.
Total revenues were $477.7 million in the fourth quarter of fiscal 2011
as compared to $416.7 million in the prior year fourth quarter (14 weeks
vs. 13 weeks). The additional week in the fourth quarter of fiscal 2011
contributed approximately $43 million of sales. Net income and diluted
net income per share were $29.9 million and $0.54, respectively.
In compliance with accounting rules, the Company recorded a pre-tax,
non-cash charge of $1.5 million related to the impairment of three
restaurants during the fourth quarter of fiscal 2011. In addition, the
Company recorded a pre-tax benefit of $0.7 million and a reduction to
its income tax provision of $1.1 million, both related to a partial
settlement with the Internal Revenue Service. On a combined basis, the
items above increased diluted net income per share by approximately
$0.01. Excluding these items, net income was $29.4 million and diluted
net income per share was $0.53.
Operating Results
Comparable restaurant sales at The Cheesecake Factory and Grand Lux Cafe
increased 2.7% in the fourth quarter of fiscal 2011 (14 weeks vs. 14
weeks). By concept, comparable restaurant sales grew 2.7% at The
Cheesecake Factory and 1.9% at Grand Lux Cafe.
“We delivered our best comparable sales and highest guest traffic levels
of the year, driving 36 percent earnings per share growth. The
Cheesecake Factory offers the strongest, most consistent guest
experience in the industry – and our numbers confirm it. We have always
been an operating company, and over the past few years, our level of
excellence in food, service and overall execution has become even
better, further separating our concept from others in the industry. This
places us in an extremely strong competitive position,” said David
Overton, Chairman and CEO.
“Continued focus on an exceptional guest experience will be a key to
extending our market share, and we expect that 2012 will represent our
third consecutive year of comparable sales and guest traffic growth.
“This year also marks the beginning of our global expansion, which will
be an important component to our future earnings potential, adding to
our confidence that mid-teens earnings per share growth is a realistic
and achievable goal going forward,” concluded Overton.
Development
The Company now expects it will open as many as seven to eight new
restaurants in the U.S. in fiscal 2012. In addition, the Company expects
that as many as three restaurants in the Middle East will open this year
under a license agreement.
Capital Allocation
During the fourth quarter of fiscal 2011, the Company repurchased
973,243 shares of its common stock at a cost of approximately $27
million. For the full year of fiscal 2011, the Company repurchased
5,992,024 shares, returning approximately $172 million in cash to
shareholders, exceeding its plan for the year.
Financial Reporting Dates for Fiscal 2012
The Company plans to announce quarterly financial results and hold
conference calls to discuss its results for the first three quarters of
fiscal 2012 as outlined below. The earnings press releases will be
issued at approximately 1:15 p.m. Pacific Time and the conference calls
will follow at 2:00 p.m. Pacific Time on the same day. Dates and times
could be subject to change.
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Quarter Ending
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Earnings Release and Conference Call Dates
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April 3, 2012
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April 25, 2012
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July 3, 2012
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July 25, 2012
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October 2, 2012
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October 24, 2012
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Conference Call and Webcast
A conference call to review the Company’s results for the fourth quarter
of fiscal 2011 will be held today at 2:00 p.m. Pacific Time. The
conference call will be broadcast live over the Internet and a replay
will be available shortly after the call and continue through March 21,
2012. To listen to the conference call, please go to the Company’s
website at www.thecheesecakefactory.com
at least 15 minutes prior to the start of the call to register and
download any necessary audio software. Click on the “Investors” link on
the home page and select the conference call link at the top of the page.
About The Cheesecake Factory Incorporated
The Cheesecake Factory Incorporated created the upscale casual dining
segment in 1978 with the introduction of its namesake concept. The
Company operates 170 full-service, casual dining restaurants throughout
the U.S., including 156 restaurants under The Cheesecake Factory® mark;
13 restaurants under the Grand Lux Cafe® mark; and one restaurant under
the RockSugar Pan Asian Kitchen® mark. The Company also operates two
bakery production facilities in Calabasas Hills, CA and Rocky Mount, NC
that produce over 70 varieties of quality cheesecakes and other baked
products. To learn more about the Company, visit www.thecheesecakefactory.com.
Safe Harbor Statement
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These
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, including uncertainties related to: the Company’s ability to
increase guest traffic levels in its restaurants, deliver positive
comparable restaurant sales and effectively leverage incremental sales;
the Company’s ability to manage expenses and increase profit margins;
the Company’s ability to deliver financial results within the range that
it has publicly disclosed; the Company’s ability to meet its new
restaurant opening target; the Company’s ability to generate high levels
of cash flow and utilize it to repurchase the Company’s common stock;
factors outside of the Company’s control that impact consumer confidence
and spending; current and future macro national and regional economic
and credit market conditions; changes in national and regional
unemployment rates; the economic health of the Company’s landlords and
other tenants in retail centers in which its restaurants are located;
the economic health of suppliers, vendors and other third parties
providing goods or services to the Company; adverse weather conditions
in regions in which the Company’s restaurants are located; factors that
are under the control of government agencies, landlords and other third
parties; and other risks and uncertainties detailed from time to time in
the Company’s filings with the Securities and Exchange Commission
(“SEC”), as set forth below. Investors are cautioned that
forward-looking statements are not guarantees of future performance and
that undue reliance should not be placed on such statements.
Forward-looking statements speak only as of the dates on which they are
made and 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 securities laws.
Investors are referred to the full discussion of risks and uncertainties
associated with forward-looking statements and the discussion of risk
factors contained in the Company’s latest Annual Report on Form 10-K,
Quarterly Reports on Form 10-Q and Current Reports on Form 8-K as filed
with the SEC, which are available at www.sec.gov.
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The Cheesecake Factory Incorporated and Subsidiaries
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Consolidated Financial Statements
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(unaudited; in thousands, except per share and statistical data)
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|
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|
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14 Weeks Ended
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13 Weeks Ended
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53 Weeks Ended
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52 Weeks Ended
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Consolidated Statements of Operations
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January 3, 2012
|
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December 28, 2010
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January 3, 2012
|
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December 28, 2010
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Amounts
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Percent of Revenue
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Amounts
|
Percent of Revenue
|
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Amounts
|
Percent of Revenue
|
|
Amounts
|
Percent of Revenue
|
|
Revenues
|
|
$
|
477,696
|
|
|
100.0
|
%
|
|
$
|
416,710
|
|
|
100.0
|
%
|
|
$
|
1,757,624
|
|
100.0
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%
|
|
$
|
1,659,404
|
|
100.0
|
%
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
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Cost of sales
|
|
|
124,606
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|
|
26.1
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%
|
|
|
109,427
|
|
|
26.3
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%
|
|
|
448,468
|
|
25.5
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%
|
|
|
412,855
|
|
24.9
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%
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Labor expenses
|
|
|
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151,306
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|
|
31.7
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%
|
|
|
128,479
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|
|
30.8
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%
|
|
|
567,358
|
|
32.3
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%
|
|
|
536,954
|
|
32.4
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%
|
|
Other operating costs and expenses
|
|
|
115,266
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|
|
24.1
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%
|
|
|
104,452
|
|
|
25.1
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%
|
|
|
428,442
|
|
24.3
|
%
|
|
|
408,362
|
|
24.6
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%
|
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General and administrative expenses
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|
|
24,348
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|
|
5.1
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%
|
|
|
24,582
|
|
|
5.9
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%
|
|
|
96,263
|
|
5.5
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%
|
|
|
95,729
|
|
5.8
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%
|
|
Depreciation and amortization expenses
|
|
|
19,434
|
|
|
4.1
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%
|
|
|
18,057
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|
|
4.3
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%
|
|
|
71,958
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4.1
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%
|
|
|
72,140
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4.3
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%
|
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Impairment of assets
|
|
|
1,547
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|
|
0.3
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%
|
|
|
–
|
|
|
–
|
|
|
|
1,547
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0.1
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%
|
|
|
–
|
|
–
|
|
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Preopening costs
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|
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3,006
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|
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0.6
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%
|
|
|
883
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|
|
0.2
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%
|
|
|
10,138
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|
0.6
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%
|
|
|
5,153
|
|
0.3
|
%
|
|
Total costs and expenses
|
|
|
439,513
|
|
|
92.0
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%
|
|
|
385,880
|
|
|
92.6
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%
|
|
|
1,624,174
|
|
92.4
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%
|
|
|
1,531,193
|
|
92.3
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%
|
|
Income from operations
|
|
|
38,183
|
|
|
8.0
|
%
|
|
|
30,830
|
|
|
7.4
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%
|
|
|
133,450
|
|
7.6
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%
|
|
|
128,211
|
|
7.7
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%
|
|
Interest expense
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|
|
(1,265
|
)
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|
(0.3
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)%
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|
|
(1,504
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)
|
|
(0.4
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)%
|
|
|
(4,918
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)
|
(0.3
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)%
|
|
|
(16,808
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)
|
(1.0
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)%
|
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Interest income
|
|
|
730
|
|
|
0.2
|
%
|
|
|
4
|
|
|
–
|
|
|
|
842
|
|
–
|
|
|
|
192
|
|
–
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|
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Other (expense)/income, net
|
|
|
(75
|
)
|
|
–
|
|
|
|
(652
|
)
|
|
(0.1
|
)%
|
|
|
(231
|
)
|
–
|
|
|
|
(506
|
)
|
–
|
|
|
Income before income taxes
|
|
|
37,573
|
|
|
7.9
|
%
|
|
|
28,678
|
|
|
6.9
|
%
|
|
|
129,143
|
|
7.3
|
%
|
|
|
111,089
|
|
6.7
|
%
|
|
Income tax provision
|
|
|
7,631
|
|
|
1.6
|
%
|
|
|
6,813
|
|
|
1.7
|
%
|
|
|
33,423
|
|
1.9
|
%
|
|
|
29,376
|
|
1.8
|
%
|
|
Net income
|
|
|
$
|
29,942
|
|
|
6.3
|
%
|
|
$
|
21,865
|
|
|
5.2
|
%
|
|
$
|
95,720
|
|
5.4
|
%
|
|
$
|
81,713
|
|
4.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income per share
|
|
$
|
0.55
|
|
|
|
$
|
0.37
|
|
|
|
$
|
1.70
|
|
|
|
$
|
1.39
|
|
|
|
Basic weighted average shares outstanding
|
|
|
54,267
|
|
|
|
|
58,452
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|
|
|
|
56,378
|
|
|
|
|
58,905
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income per share
|
|
$
|
0.54
|
|
|
|
$
|
0.36
|
|
|
|
$
|
1.64
|
|
|
|
$
|
1.35
|
|
|
|
Diluted weighted average shares outstanding
|
|
|
55,894
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|
|
|
|
60,563
|
|
|
|
|
58,190
|
|
|
|
|
60,446
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Segment Information
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|
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|
|
|
|
|
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|
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Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restaurants
|
|
|
$
|
448,270
|
|
|
|
$
|
384,780
|
|
|
|
$
|
1,685,037
|
|
|
|
$
|
1,586,274
|
|
|
|
Bakery
|
|
|
|
44,301
|
|
|
|
|
45,691
|
|
|
|
|
131,264
|
|
|
|
|
128,527
|
|
|
|
Intercompany bakery sales
|
|
|
(14,875
|
)
|
|
|
|
(13,761
|
)
|
|
|
|
(58,677
|
)
|
|
|
|
(55,397
|
)
|
|
|
|
|
|
$
|
477,696
|
|
|
|
$
|
416,710
|
|
|
|
$
|
1,757,624
|
|
|
|
$
|
1,659,404
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restaurants
|
|
|
$
|
58,113
|
|
|
|
$
|
48,041
|
|
|
|
$
|
217,350
|
|
|
|
$
|
208,117
|
|
|
|
Bakery
|
|
|
|
3,496
|
|
|
|
|
4,951
|
|
|
|
|
8,670
|
|
|
|
|
12,122
|
|
|
|
Impairment
|
|
|
|
(1,547
|
)
|
|
|
|
–
|
|
|
|
|
(1,547
|
)
|
|
|
|
–
|
|
|
|
Corporate
|
|
|
|
(21,879
|
)
|
|
|
|
(22,162
|
)
|
|
|
|
(91,023
|
)
|
|
|
|
(92,028
|
)
|
|
|
|
|
|
$
|
38,183
|
|
|
|
$
|
30,830
|
|
|
|
$
|
133,450
|
|
|
|
$
|
128,211
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Consolidated Balance Sheet Information
|
|
January 3, 2012
|
|
December 28, 2010
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
48,211
|
|
|
|
$
|
81,619
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
|
|
1,022,570
|
|
|
|
|
1,037,307
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
|
479,817
|
|
|
|
|
444,970
|
|
|
|
|
|
|
|
|
Stockholders' equity
|
|
|
|
542,753
|
|
|
|
|
592,337
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14 Weeks Ended
|
|
13 Weeks Ended
|
|
53 Weeks Ended
|
|
52 Weeks Ended
|
|
Supplemental Information
|
|
January 3, 2012
|
|
December 28, 2010
|
|
January 3, 2012
|
|
December 28, 2010
|
|
Comparable restaurant sales percentage change
|
|
|
2.7
|
%
|
|
|
|
0.9
|
%
|
|
|
1.8
|
%
|
|
|
2.0
|
%
|
|
Restaurants opened during period
|
|
|
|
2
|
|
|
|
|
-
|
|
|
|
7
|
|
|
|
3
|
|
|
Restaurants open at period-end
|
|
|
|
170
|
|
|
|
|
163
|
|
|
|
170
|
|
|
|
163
|
|
|
Restaurant operating weeks
|
|
|
|
2,367
|
|
|
|
|
2,119
|
|
|
|
8,777
|
|
|
|
8,426
|
|
Reconciliation of Non-GAAP Results to GAAP Results
In addition to the results provided in accordance with Generally
Accepted Accounting Principles ("GAAP") in this press release, the
Company is providing non-GAAP measurements which present the fourth
quarter and full year fiscal 2011 and fiscal 2010 net income and diluted
net income per share excluding the impact from certain items. Additional
detail regarding the fourth quarter fiscal 2011 items can be found on
the first page of this press release.
The non-GAAP measurements are intended to supplement the presentation of
the Company’s financial results in accordance with GAAP. The Company
believes that the presentation of these items provides additional
information to facilitate the comparison of past and present financial
results.
|
|
|
14 Weeks Ended
|
|
13 Weeks Ended
|
|
53 Weeks Ended
|
|
52 Weeks Ended
|
|
|
|
January 3, 2012
|
|
December 28, 2010
|
|
January 3, 2012
|
|
December 28, 2010
|
|
|
|
(unaudited; in thousands, except per share data)
|
|
Net income (GAAP)
|
|
$
|
29,942
|
|
|
$
|
21,865
|
|
$
|
95,720
|
|
|
$
|
81,713
|
|
After-tax impact from:
|
|
|
|
|
|
|
|
|
|
- Impairment of assets (1)
|
|
|
928
|
|
|
|
-
|
|
|
928
|
|
|
|
-
|
|
- Partial IRS settlement (2)
|
|
|
(1,506
|
)
|
|
|
-
|
|
|
(1,506
|
)
|
|
|
-
|
|
- Unwinding of interest rate collar (3)
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
|
4,425
|
|
Net income (non-GAAP)
|
|
$
|
29,364
|
|
|
$
|
21,865
|
|
$
|
95,142
|
|
|
$
|
86,138
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income per share (GAAP)
|
|
$
|
0.54
|
|
|
$
|
0.36
|
|
$
|
1.64
|
|
|
$
|
1.35
|
|
After-tax impact from:
|
|
|
|
|
|
|
|
|
|
- Impairment of assets
|
|
|
0.02
|
|
|
|
-
|
|
|
0.02
|
|
|
|
-
|
|
- Partial IRS settlement
|
|
|
(0.03
|
)
|
|
|
-
|
|
|
(0.03
|
)
|
|
|
-
|
|
- Unwinding of interest rate collar
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
|
0.07
|
|
Diluted net income per share (non-GAAP) (4)
|
$ 0.53
|
|
|
$
|
0.36
|
|
$
|
1.64
|
|
|
$
|
1.42
|
(1) The pre-tax amount associated with this item was $1,547 and was
recorded in impairment of assets.
(2) The pre-tax amounts associated with this item were $719 and $1,075
and were recorded in interest income and income tax provision,
respectively.
(3) The pre-tax amount associated with this item was $7,376 and was
recorded in interest expense.
(4) Diluted net income per share may not add due to rounding.
Source: The Cheesecake Factory Incorporated
The Cheesecake Factory Incorporated
Jill Peters, 818) 871-8342
jpeters@thecheesecakefactory.com