CALABASAS HILLS, Calif.--(BUSINESS WIRE)--Oct. 23, 2013--
The Cheesecake Factory Incorporated (NASDAQ: CAKE) today reported
financial results for the third quarter of fiscal 2013, which ended on
October 1, 2013.
Total revenues were $469.7 million in the third quarter of fiscal 2013
as compared to $453.8 million in the prior year third quarter. Net
income and diluted net income per share were $27.5 million and $0.50,
respectively, in the third quarter of fiscal 2013.
The Company recorded a $1.1 million pre-tax charge during the third
quarter of fiscal 2013 related to the planned relocation of three The
Cheesecake Factory restaurants. Excluding this item, net income was
$28.1 million and diluted net income per share was $0.52.
Operating Results
Comparable restaurant sales at The Cheesecake Factory and Grand Lux Cafe
increased 0.8% in the third quarter of fiscal 2013.
By concept, comparable restaurant sales grew 1.0% at The Cheesecake
Factory and declined 2.6% at Grand Lux Cafe.
“We continued to take market share with our 15th consecutive
quarter of positive comparable sales. Our performance outpaced the
industry by one of its widest margins during this time frame, which is
noteworthy in the context of soft industry trends and a highly
promotional environment,” said David Overton, Chairman and Chief
Executive Officer. “Consumer demand for our brand was also evident in
our two new restaurant openings during the third quarter. First week
sales in Novi, Michigan and San Juan, Puerto Rico set Company records.
We are focused on quality growth, and we are making excellent site
selection decisions,” continued Overton.
Development
The Company expects to open as many as nine new restaurants in fiscal
2013, of which four restaurants are open. One restaurant opened in the
second quarter, two restaurants opened in the third quarter and one
restaurant relocated on the first day of the fourth quarter.
Internationally, the Company continues to expect one new The Cheesecake
Factory restaurant to open in the Middle East during fiscal 2013 under a
licensing agreement.
Capital Allocation
The Company’s Board of Directors declared a quarterly cash dividend of
$0.14 per share on the Company’s common stock. The dividend is payable
on November 19, 2013 to shareholders of record at the close of business
on November 6, 2013.
During the third quarter of fiscal 2013, the Company repurchased 2.1
million shares of its common stock at a cost of $90.2 million.
Year-to-date, the Company repurchased 3.4 million shares of its common
stock at a cost of $135.5 million.
The Company expects to allocate as much as $65 million toward share
repurchases in the fourth quarter of fiscal 2013, representing an
incremental $30 million of capital relative to the Company’s prior
expectations. For fiscal 2013, the Company is now planning for up to
$200 million in share repurchases.
“A differentiating feature of The Cheesecake Factory is our ability to
generate strong cash flows. Equally as important, we are utilizing our
cash to create value for shareholders both through continued investments
in our business and through share repurchases. We completed the majority
of our repurchase commitment for the second half of the year during the
third quarter and are allocating substantially more capital toward
repurchases for the remainder of the year,” concluded Overton.
Conference Call and Webcast
A conference call to review the Company’s results for the third quarter
of fiscal 2013 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 November
23, 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. and Puerto Rico, including 165 restaurants under The Cheesecake
Factory® mark; 11 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: the Company’s ability to
deliver comparable sales increases and leverage those sales increases;
the Company’s ability to increase its market share and continue
outperforming the casual dining industry; the Company’s ability to
increase sales at full margins; the Company’s ability to continue to
appeal to consumers; the Company’s ability to maintain quality growth,
identify and select high quality restaurant sites; the Company’s ability
to continue to generate high levels of cash flow; the Company’s ability
to utilize its capital effectively and increase shareholder value
through dividends and share repurchases; 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.
|
The Cheesecake Factory Incorporated and Subsidiaries
Consolidated Financial Statements
(unaudited; in thousands, except per share and statistical data)
|
|
|
|
|
|
|
|
13 Weeks Ended
|
|
13 Weeks Ended
|
|
|
39 Weeks Ended
|
39 Weeks Ended
|
|
Consolidated Statements of Operations
|
October 1, 2013
|
|
October 2, 2012
|
|
|
October 1, 2013
|
|
|
October 2, 2012
|
|
|
|
|
Amounts
|
|
Percent of Revenue
|
|
Amounts
|
|
Percent of Revenue
|
|
Amounts
|
|
Percent of Revenue
|
|
Amounts
|
|
Percent of Revenue
|
|
Revenues
|
|
$ 469,699
|
|
|
100.0
|
%
|
|
$
|
453,819
|
|
|
|
100.0
|
%
|
|
|
$
|
1,402,835
|
|
|
100.0
|
%
|
|
|
$ 1,344,322
|
|
|
100.0
|
%
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
112,430
|
|
|
24.0
|
%
|
|
|
111,620
|
|
|
|
24.6
|
%
|
|
|
|
339,670
|
|
|
24.3
|
%
|
|
|
330,237
|
|
|
24.6
|
%
|
|
Labor expenses
|
|
|
150,910
|
|
|
32.1
|
%
|
|
|
145,630
|
|
|
|
32.1
|
%
|
|
|
|
453,055
|
|
|
32.3
|
%
|
|
|
434,696
|
|
|
32.3
|
%
|
|
Other operating costs and expenses
|
|
113,955
|
|
|
24.3
|
%
|
|
|
113,700
|
|
|
|
25.1
|
%
|
|
|
|
338,738
|
|
|
24.1
|
%
|
|
|
328,458
|
|
|
24.4
|
%
|
|
General and administrative expenses
|
|
28,805
|
|
|
6.1
|
%
|
|
|
22,450
|
|
|
|
4.9
|
%
|
|
|
|
85,405
|
|
|
6.1
|
%
|
|
|
77,393
|
|
|
5.8
|
%
|
|
Depreciation and amortization expenses
|
|
19,661
|
|
|
4.2
|
%
|
|
|
18,733
|
|
|
|
4.1
|
%
|
|
|
|
58,106
|
|
|
4.1
|
%
|
|
|
55,540
|
|
|
4.1
|
%
|
|
Impairment of assets and lease terminations
|
|
1,097
|
|
|
0.2
|
%
|
|
|
-
|
|
|
|
-
|
|
|
|
|
3,246
|
|
|
0.2
|
%
|
|
|
-
|
|
|
-
|
|
|
Preopening costs
|
|
4,210
|
|
|
0.9
|
%
|
|
|
2,362
|
|
|
|
0.5
|
%
|
|
|
|
8,027
|
|
|
0.6
|
%
|
|
|
7,485
|
|
|
0.6
|
%
|
|
Total costs and expenses
|
|
431,068
|
|
|
91.8
|
%
|
|
|
414,495
|
|
|
|
91.3
|
%
|
|
|
|
1,286,247
|
|
|
91.7
|
%
|
|
|
1,233,809
|
|
|
91.8
|
%
|
|
Income from operations
|
|
38,631
|
|
|
8.2
|
%
|
|
|
39,324
|
|
|
|
8.7
|
%
|
|
|
|
116,588
|
|
|
8.3
|
%
|
|
|
110,513
|
|
|
8.2
|
%
|
|
Interest and other (expense)/income, net
|
|
(727
|
)
|
|
(0.1
|
)%
|
|
|
(1,710
|
)
|
|
|
(0.4
|
)%
|
|
|
|
(3,308
|
)
|
|
(0.2
|
)%
|
|
|
(3,696
|
)
|
|
(0.3
|
)%
|
|
Income before income taxes
|
|
37,904
|
|
|
8.1
|
%
|
|
|
37,614
|
|
|
|
8.3
|
%
|
|
|
|
113,280
|
|
|
8.1
|
%
|
|
|
106,817
|
|
|
7.9
|
%
|
|
Income tax provision
|
|
10,423
|
|
|
2.2
|
%
|
|
|
10,451
|
|
|
|
2.3
|
%
|
|
|
|
31,924
|
|
|
2.3
|
%
|
|
|
30,533
|
|
|
2.2
|
%
|
|
Net income
|
|
|
$ 27,481
|
|
|
5.9
|
%
|
|
$
|
27,163
|
|
|
|
6.0
|
%
|
|
|
$
|
81,356
|
|
|
5.8
|
%
|
|
|
$ 76,284
|
|
|
5.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income per share
|
|
$ 0.52
|
|
|
|
|
$
|
0.51
|
|
|
|
|
|
$
|
1.55
|
|
|
|
|
|
$ 1.43
|
|
|
|
|
Basic weighted average shares outstanding
|
52,416
|
|
|
|
|
|
52,958
|
|
|
|
|
|
|
52,521
|
|
|
|
|
|
53,264
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income per share
|
|
$ 0.50
|
|
|
|
|
$
|
0.49
|
|
|
|
|
|
$
|
1.49
|
|
|
|
|
|
$ 1.38
|
|
|
|
|
Diluted weighted average shares outstanding
|
54,612
|
|
|
|
|
|
55,126
|
|
|
|
|
|
|
54,654
|
|
|
|
|
|
55,271
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Segment Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Cheesecake Factory restaurants
|
|
|
$ 425,084
|
|
|
|
|
$
|
402,493
|
|
|
|
|
|
$
|
1,262,480
|
|
|
|
|
|
$ 1,202,173
|
|
|
|
|
Other
|
|
44,615
|
|
|
|
|
|
51,326
|
|
|
|
|
|
|
140,355
|
|
|
|
|
|
142,149
|
|
|
|
|
|
|
|
$ 469,699
|
|
|
|
|
$
|
453,819
|
|
|
|
|
|
$
|
1,402,835
|
|
|
|
|
|
$ 1,344,322
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Cheesecake Factory restaurants
|
|
|
$ 61,686
|
|
|
|
|
$
|
55,771
|
|
|
|
|
|
$
|
183,641
|
|
|
|
|
|
$ 174,402
|
|
|
|
|
Other
|
|
|
4,727
|
|
|
|
|
|
2,761
|
|
|
|
|
|
|
14,333
|
|
|
|
|
|
9,490
|
|
|
|
|
Corporate
|
|
|
(27,782
|
)
|
|
|
|
|
(19,208
|
)
|
|
|
|
|
|
(81,386
|
)
|
|
|
|
|
(73,379
|
)
|
|
|
|
|
|
|
$ 38,631
|
|
|
|
|
$
|
39,324
|
|
|
|
|
|
$
|
116,588
|
|
|
|
|
|
$ 110,513
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Consolidated Balance Sheet Information
|
October 1, 2013
|
|
January 1, 2013
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$ 82,625
|
|
|
|
|
$
|
83,569
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
|
1,101,138
|
|
|
|
|
|
1,092,167
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
517,967
|
|
|
|
|
|
512,441
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity
|
|
|
583,171
|
|
|
|
|
|
579,726
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13 Weeks Ended
|
|
13 Weeks Ended
|
|
|
39 Weeks Ended
|
|
|
39 Weeks Ended
|
|
Supplemental Information
|
October 1, 2013
|
|
October 2, 2012
|
|
|
October 1, 2013
|
|
|
October 2, 2012
|
|
Comparable restaurant sales percentage change
|
|
0.8
|
%
|
|
|
|
|
2.5
|
%
|
|
|
|
|
1.0
|
%
|
|
|
|
2.2
|
%
|
|
Restaurants opened during period
|
|
|
|
2
|
|
|
|
|
|
2
|
|
|
|
|
|
3
|
|
|
|
|
4
|
|
|
Restaurants open at period-end
|
|
|
|
176
|
|
|
|
|
|
173
|
|
|
|
|
|
176
|
|
|
|
|
173
|
|
|
Restaurant operating weeks
|
|
|
|
2,287
|
|
|
|
|
|
2,249
|
|
|
|
|
|
6,841
|
|
|
|
|
6,686
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 third
quarter and year-to-date fiscal 2013 and fiscal 2012 net income and
diluted net income per share excluding the impact from certain items.
Additional detail regarding the third quarter fiscal 2013 item 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.
|
|
|
13 Weeks Ended
|
|
13 Weeks Ended
|
|
39 Weeks Ended
|
|
39 Weeks Ended
|
|
|
|
October 1, 2013
|
|
October 2, 2012
|
|
October 1, 2013
|
|
October 2, 2012
|
|
|
|
(unaudited; in thousands, except per share data)
|
|
Net income (GAAP)
|
|
$
|
27,481
|
|
$
|
27,163
|
|
$
|
81,356
|
|
$
|
76,284
|
|
|
After-tax impact from:
|
|
|
|
|
|
|
|
|
|
- Impairment of assets and lease terminations (1)
|
|
|
658
|
|
|
-
|
|
|
1,948
|
|
|
-
|
|
|
- Proceeds from variable life insurance contract (2)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(419
|
)
|
|
Net income (non-GAAP)
|
|
$
|
28,139
|
|
$
|
27,163
|
|
$
|
83,304
|
|
$
|
75,865
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income per share (GAAP)
|
|
$
|
0.50
|
|
$
|
0.49
|
|
$
|
1.49
|
|
$
|
1.38
|
|
|
After-tax impact from:
|
|
|
|
|
|
|
|
|
|
- Impairment of assets and lease terminations (1)
|
|
|
0.01
|
|
|
-
|
|
|
0.04
|
|
|
-
|
|
|
- Proceeds from variable life insurance contract (2)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(0.01
|
)
|
|
Diluted net income per share (non-GAAP) (3)
|
$ 0.52
|
|
$
|
0.49
|
|
$
|
1.52
|
|
$
|
1.37
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The pre-tax amounts associated with this item were $1,097 in the
third quarter of fiscal 2013, $1,505 in the second quarter of fiscal
2013 and $644 in the first quarter of fiscal 2013, and were recorded in
impairment of assets and lease terminations.
(2) This item was non-taxable and was recorded in interest and other
(expense)/income, net.
(3) 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