CALABASAS HILLS, Calif.--(BUSINESS WIRE)--Feb. 20, 2013--
The Cheesecake Factory Incorporated (NASDAQ: CAKE) today reported
financial results for the fourth quarter of fiscal 2012, which ended on
January 1, 2013.
Total revenues were $464.7 million in the fourth quarter of fiscal 2012
as compared to $477.7 million in the prior year fourth quarter (13 weeks
vs. 14 weeks). Net income and diluted net income per share were $22.1
million and $0.40, respectively, in the fourth quarter of fiscal 2012.
The Company recorded a pre-tax charge of $9.5 million related to
discontinuing operations of three Grand Lux Cafe restaurants and
impairing one The Cheesecake Factory restaurant during the fourth
quarter of fiscal 2012. These items decreased diluted net income per
share by approximately $0.11. Excluding these items, net income was
$27.9 million and diluted net income per share was $0.51.
Operating Results
Comparable restaurant sales at The Cheesecake Factory and Grand Lux Cafe
increased 0.9% in the fourth quarter of fiscal 2012, but were negatively
impacted by approximately 0.6% due to Hurricane Sandy. Excluding this
weather impact, comparable restaurant sales increased 1.5%.
By concept, comparable restaurant sales grew 1.3% at The Cheesecake
Factory and declined 3.2% at Grand Lux Cafe.
“The fourth quarter marks the twelfth consecutive quarter in which we
delivered positive comparable restaurant sales. Our sales were
competitively quite strong and within our expected range, absent the
hurricane. Our operators did a great job of maintaining high guest
satisfaction scores while managing their cost structures to deliver
higher year-over-year restaurant-level margins. Our fourth quarter
results are the culmination of strong performance this year, including a
solid increase in comparable restaurant sales, a significant step
forward in returning to peak operating margins and execution of our
longer-term earnings per share growth goal,” said David Overton,
Chairman and Chief Executive Officer.
“We expect 2013 to be another year of growth, through the expansion of
our restaurants, both domestically and internationally. Strategically,
we will continue to focus on food quality and service as key
differentiators and business drivers, contributing to our expectation
for higher comparable restaurant sales, higher earnings per share and
increasing shareholder value,” concluded Overton.
Development
The Company opened four new restaurants in the fourth quarter of fiscal
2012, executing on its objective to open eight new restaurants for the
full year.
Internationally, two new The Cheesecake Factory restaurants opened in
the Middle East in the fourth quarter of fiscal 2012, for a total of
three new international locations opened during the year under a
licensing agreement.
In fiscal 2013, the Company continues to expect it will open as many as
eight to ten new restaurants. Internationally, the Company expects as
many as three new restaurants to open under a licensing agreement.
Capital Allocation
The Company’s Board of Directors declared a quarterly cash dividend of
$0.12 per share on the Company’s common stock. The dividend is payable
on March 19, 2013 to shareholders of record at the close of business on
March 6, 2013.
During the fourth quarter of fiscal 2012, the Company repurchased
787,995 shares of its common stock at a cost of $26.4 million. For the
full year of fiscal 2012, the Company repurchased 3,218,094 shares at a
cost of $101.4 million. Including dividends, the Company returned $114.3
million in cash to shareholders in fiscal 2012, exceeding its plan for
the year.
The Company expects that it will return the majority of its free cash
flow to shareholders in fiscal 2013 in the form of dividends and share
repurchases.
Financial Reporting Dates for Fiscal 2013
The Company plans to announce quarterly financial results and hold
conference calls to discuss its results for the first three quarters of
fiscal 2013 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 2, 2013
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April 24, 2013
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July 2, 2013
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July 24, 2013
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October 1, 2013
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October 23, 2013
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Conference Call and Webcast
A conference call to review the Company’s results for the fourth quarter
of fiscal 2012 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 20,
2013. 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 177 full-service, casual dining restaurants throughout
the U.S., including 162 restaurants under The Cheesecake Factory® mark;
14 restaurants under the Grand Lux Cafe® mark; and one restaurant under
the RockSugar Pan Asian Kitchen® mark. Internationally, three The
Cheesecake Factory® restaurants operate under a licensing agreement. 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: future charges
associated with discontinuing operations at three Grand Lux Cafe
restaurants; the Company’s ability to deliver comparable sales
increases; the Company’s ability to outperform the casual dining
industry; the Company’s ability to maintain or increase its food quality
and overall guest satisfaction scores; the Company’s ability to manage
its cost structure; the Company’s ability to expand domestically and
internationally; the Company’s ability to deliver higher comparable
sales, higher earnings per share and increase shareholder value in the
future; 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
Consolidated Financial Statements
(unaudited; in thousands, except per share and statistical data)
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13 Weeks Ended
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14 Weeks Ended
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52 Weeks Ended
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53 Weeks Ended
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Consolidated Statements of Operations
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January 1, 2013
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January 3, 2012
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January 1, 2013
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January 3, 2012
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Amounts
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Percent of
Revenue
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Amounts
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Percent of
Revenue
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Amounts
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Percent of
Revenue
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Amounts
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Percent of
Revenue
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Revenues
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$
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464,695
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100.0
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%
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$ 477,696
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100.0
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%
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$1,809,017
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100.0
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%
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$
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1,757,624
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100.0
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%
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Costs and expenses:
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Cost of sales
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119,916
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25.8
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%
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124,606
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26.1
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%
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450,153
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24.9
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%
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448,468
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25.5
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%
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Labor expenses
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145,496
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31.3
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%
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151,306
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31.7
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%
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580,192
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32.1
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%
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567,358
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32.3
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%
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Other operating costs and expenses
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111,101
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23.9
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%
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115,266
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24.1
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%
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439,559
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24.3
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%
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428,442
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24.3
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%
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General and administrative expenses
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26,763
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5.8
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%
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24,348
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5.1
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%
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104,156
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5.7
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%
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96,263
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5.5
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%
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Depreciation and amortization expenses
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18,893
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4.1
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%
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19,434
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4.1
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%
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74,433
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4.1
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%
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71,958
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4.1
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%
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Impairment of assets and lease terminations(1)
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9,536
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2.0
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%
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1,547
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0.3
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%
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9,536
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0.5
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%
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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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4,804
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1.0
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%
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3,006
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0.6
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%
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12,289
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0.7
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%
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10,138
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0.6
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%
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Total costs and expenses
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436,509
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93.9
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%
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439,513
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92.0
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%
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1,670,318
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92.3
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%
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1,624,174
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92.4
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%
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Income from operations
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28,186
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6.1
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%
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38,183
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8.0
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%
|
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|
138,699
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7.7
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%
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133,450
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7.6
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%
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Interest and other (expense)/income, net
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(1,029
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)
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(0.3
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)%
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(610
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(0.1
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)%
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(4,725
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)
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(0.3
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)%
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(4,307
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)
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(0.3
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)%
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Income before income taxes
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27,157
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5.8
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%
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37,573
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7.9
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%
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|
133,974
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7.4
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%
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|
129,143
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7.3
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%
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Income tax provision
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|
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5,018
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1.1
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%
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|
|
7,631
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|
1.6
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%
|
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|
35,551
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2.0
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%
|
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|
|
33,423
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1.9
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%
|
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Net income
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$
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22,139
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4.8
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%
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$ 29,942
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6.3
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%
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$ 98,423
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5.4
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%
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$
|
95,720
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|
5.4
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%
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Basic net income per share
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$
|
0.42
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|
|
$ 0.55
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|
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|
|
|
$ 1.85
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|
|
|
|
|
$
|
1.70
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|
|
|
|
|
Basic weighted average shares outstanding
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|
|
|
52,948
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|
|
|
|
|
|
54,267
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|
|
|
|
|
|
53,185
|
|
|
|
|
|
|
|
56,378
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income per share
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|
|
|
$
|
0.40
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|
|
|
|
|
|
$ 0.54
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|
|
|
|
|
|
$ 1.78
|
|
|
|
|
|
|
$
|
1.64
|
|
|
|
|
|
Diluted weighted average shares outstanding
|
|
|
|
|
55,079
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|
|
|
|
|
|
55,894
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|
|
|
|
|
|
55,211
|
|
|
|
|
|
|
|
58,190
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|
|
|
|
|
|
|
|
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|
|
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|
Selected Segment Information
|
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|
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|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
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|
|
|
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restaurants
|
|
|
|
$
|
437,998
|
|
|
|
|
|
|
$ 448,270
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|
|
|
|
|
|
$1,743,806
|
|
|
|
|
|
|
$
|
1,685,037
|
|
|
|
|
|
Bakery
|
|
|
|
|
41,411
|
|
|
|
|
|
|
44,301
|
|
|
|
|
|
|
129,122
|
|
|
|
|
|
|
|
131,264
|
|
|
|
|
|
Intercompany bakery sales
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|
|
|
|
(14,714
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)
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|
|
|
|
|
(14,875
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)
|
|
|
|
|
|
(63,911
|
)
|
|
|
|
|
|
|
(58,677
|
)
|
|
|
|
|
|
|
|
|
$
|
464,695
|
|
|
|
|
|
|
$ 477,696
|
|
|
|
|
|
|
$1,809,017
|
|
|
|
|
|
|
$
|
1,757,624
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations:
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restaurants(1)
|
|
|
|
$
|
48,088
|
|
|
|
|
|
|
$ 56,566
|
|
|
|
|
|
|
$ 225,993
|
|
|
|
|
|
|
$
|
215,803
|
|
|
|
|
|
Bakery
|
|
|
|
|
4,797
|
|
|
|
|
|
|
3,496
|
|
|
|
|
|
|
10,784
|
|
|
|
|
|
|
|
8,670
|
|
|
|
|
|
Corporate
|
|
|
|
|
(24,699
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)
|
|
|
|
|
|
(21,879
|
)
|
|
|
|
|
|
(98,078
|
)
|
|
|
|
|
|
|
(91,023
|
)
|
|
|
|
|
|
|
|
|
$
|
28,186
|
|
|
|
|
|
|
$ 38,183
|
|
|
|
|
|
|
$ 138,699
|
|
|
|
|
|
|
$
|
133,450
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Consolidated Balance Sheet Information
|
|
|
|
January 1, 2013
|
|
|
January 3, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
$
|
|
|
|
83,569
|
|
|
|
|
|
|
$
|
48,211
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
|
|
|
|
1,092,167
|
|
|
|
|
|
|
|
1,022,570
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
|
|
|
|
512,441
|
|
|
|
|
|
|
|
479,817
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity
|
|
|
|
|
|
|
579,726
|
|
|
|
|
|
|
|
542,753
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13 Weeks Ended
|
|
|
14 Weeks Ended
|
|
|
52 Weeks Ended
|
|
|
53 Weeks Ended
|
|
Supplemental Information
|
|
|
|
January 1, 2013
|
|
|
January 3, 2012
|
|
|
January 1, 2013
|
|
|
January 3, 2012
|
|
Comparable restaurant sales percentage change
|
|
|
|
|
|
0.9
|
%
|
|
|
|
|
|
|
2.7
|
%
|
|
|
|
|
|
1.9
|
%
|
|
|
|
|
|
1.8
|
%
|
|
Restaurants opened during period
|
|
|
|
|
|
|
4
|
|
|
|
|
|
|
|
2
|
|
|
|
|
|
|
8
|
|
|
|
|
|
|
7
|
|
|
Restaurants open at period-end
|
|
|
|
|
|
|
177
|
|
|
|
|
|
|
|
170
|
|
|
|
|
|
|
177
|
|
|
|
|
|
|
170
|
|
|
Restaurant operating weeks
|
|
|
|
|
|
|
2,271
|
|
|
|
|
|
|
|
2,367
|
|
|
|
|
|
|
8,957
|
|
|
|
|
|
|
8,777
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
Includes impairment of one The Cheesecake Factory restaurant in the
fourth quarter of fiscal 2012 and two The Cheesecake Factory
restaurants and one Grand Lux Cafe in the fourth quarter of fiscal
2011. The amounts associated with these items were $5,469 and
$1,547, respectively. Also includes partial reimbursement to
landlords of tenant improvement allowances and broker fees for three
Grand Lux Cafe locations where the Company is discontinuing
operations in March 2013. The amount associated with this item was
$4,067 and was recorded in the fourth quarter of fiscal 2012.
|
|
|
|
|
|
|
|
|
|
|
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 2012 and fiscal 2011 net income and diluted
net income per share excluding the impact from certain items. Additional
detail regarding the fourth quarter fiscal 2012 items can be found on
the first page of this press release and in the footnote to the
Consolidated Financial Statements on the previous page.
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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13 Weeks Ended
|
|
|
|
14 Weeks Ended
|
|
|
|
52 Weeks Ended
|
|
|
|
53 Weeks Ended
|
|
|
|
|
|
January 1, 2013
|
|
|
|
January 3, 2012
|
|
|
|
January 1, 2013
|
|
|
|
January 3, 2012
|
|
|
|
|
|
(unaudited; in thousands, except per share data)
|
|
Net income (GAAP)
|
|
|
|
$
|
22,139
|
|
|
|
$
|
29,942
|
|
|
|
|
$
|
98,423
|
|
|
|
|
$
|
95,720
|
|
|
After-tax impact from:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Impairment of assets and lease terminations(1)
|
|
|
|
|
5,722
|
|
|
|
|
928
|
|
|
|
|
|
5,722
|
|
|
|
|
|
928
|
|
|
- Proceeds from variable life insurance contract(2)
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
(419
|
)
|
|
|
|
|
-
|
|
|
- Partial IRS settlement(3)
|
|
|
|
|
-
|
|
|
|
|
(1,506
|
)
|
|
|
|
|
-
|
|
|
|
|
|
(1,506
|
)
|
|
Net income (non-GAAP)
|
|
|
|
$
|
27,861
|
|
|
|
$
|
29,364
|
|
|
|
|
$
|
103,726
|
|
|
|
|
$
|
95,142
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income per share (GAAP)
|
|
|
|
$
|
0.40
|
|
|
|
$
|
0.54
|
|
|
|
|
$
|
1.78
|
|
|
|
|
$
|
1.64
|
|
|
After-tax impact from:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Impairment of assets and lease terminations(1)
|
|
|
|
|
0.11
|
|
|
|
|
0.02
|
|
|
|
|
|
0.11
|
|
|
|
|
|
0.02
|
|
|
- Proceeds from variable life insurance contract(2)
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
(0.01
|
)
|
|
|
|
|
-
|
|
|
- Partial IRS settlement(3)
|
|
|
|
|
-
|
|
|
|
|
(0.03
|
)
|
|
|
|
|
-
|
|
|
|
|
|
(0.03
|
)
|
|
Diluted net income per share (non-GAAP)(4)
|
|
|
|
$
|
0.51
|
|
|
|
$
|
0.53
|
|
|
|
|
$
|
1.88
|
|
|
|
|
$
|
1.64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
The pre-tax amounts associated with this item were $9,536 in the
fourth quarter of fiscal 2012 and $1,547 in the fourth quarter of
fiscal 2011, and were recorded in impairment of assets and lease
terminations.
|
|
(2)
|
|
|
This item is non-taxable and is recorded in interest and other
(expense)/income, net.
|
|
(3)
|
|
|
The pre-tax amounts associated with this item were $719 and $1,075
and were recorded in interest and other (expense)/income, net and
income tax provision, respectively.
|
|
(4)
|
|
|
Diluted net income per share may not add due to rounding.
|
Source: The Cheesecake Factory Incorporated
The Cheesecake Factory Incorporated
Jill Peters, (818) 871-3000
investorrelations@thecheesecakefactory.com