Delaware | 001-35987 | 84-1303469 | |||
(State or Other Jurisdiction of | (Commission File Number) | (I.R.S. Employer | |||
Incorporation) | Identification No.) | ||||
520 Zang Street, Suite D, Broomfield, CO | 80021 | ||||
(Address of Principal Executive Offices) | (Zip Code) | ||||
Exhibit No. | Description | ||
99.1 | Noodles & Company Press Release dated February 25, 2016 |
Noodles & Company | ||
By: | /s/ DAVE BOENNIGHAUSEN | |
Name: | Dave Boennighausen | |
Title: | Chief Financial Officer |
Exhibit No. | Description | |
99.1 | Noodles & Company Press Release dated February 25, 2016 |
Exhibit 99.1 |
• | Total revenue increased 12.8% to $455.5 million compared to fiscal year 2014. |
• | Comparable restaurant sales decreased 0.2% for company-owned restaurants, 0.9% for franchise restaurants and 0.3% system-wide. |
• | 70 new restaurants opened system-wide in 2015, including 51 company-owned and 19 franchise restaurants. |
• | 16 company-owned and one franchise restaurant were closed in the fourth quarter. |
• | GAAP net loss of $13.8 million, which includes pre-tax closure, impairment, and asset disposal costs of $29.6 million. |
• | Adjusted net income(1) of $3.9 million, or $0.13 per diluted share. |
• | Adjusted EBITDA(1) of $38.0 million. |
• | Restaurant contribution margin of 16.2%. |
• | Total revenue increased 7.9% to $117.1 million compared to the fourth quarter of 2014. |
• | Comparable restaurant sales decreased 0.9% for company-owned restaurants, 2.1% for franchise restaurants and 1.1% system-wide. |
• | 21 new restaurants opened system-wide in the fourth quarter, including 14 company-owned and seven franchise restaurants. 16 company-owned and one franchise restaurant were closed in the quarter. |
• | GAAP net loss of $4.3 million. |
• | Adjusted net loss(1) of $0.1 million, or $0.00 per diluted share. |
• | Adjusted EBITDA(1) of $7.8 million. |
• | Restaurant contribution margin of 14.9%. |
• | Approximately 50 new restaurants system-wide, including 40 to 45 company-owned restaurant openings; |
• | Total revenue of $505.0 to $515.0 million; |
• | Low single digit comparable restaurant sales growth; |
• | Restaurant level contribution margin of 14.0% to 16.0%; |
• | Adjusted EBITDA of $38.0 to $40.0 million, or flat to 5% growth; |
• | Adjusted diluted earnings per share of $0.04 to $0.08; and |
• | An estimated tax rate of approximately 38% to 40%. |
Fiscal Quarter Ended | Fiscal Year Ended | |||||||||||||||
December 29, 2015 | December 30, 2014 | December 29, 2015 | December 30, 2014 | |||||||||||||
Revenue: | ||||||||||||||||
Restaurant revenue | $ | 115,715 | $ | 107,204 | $ | 450,482 | $ | 398,993 | ||||||||
Franchise royalties and fees | 1,413 | 1,342 | 4,969 | 4,748 | ||||||||||||
Total revenue | 117,128 | 108,546 | 455,451 | 403,741 | ||||||||||||
Costs and expenses: | ||||||||||||||||
Restaurant operating costs (exclusive of depreciation and amortization shown separately below): | ||||||||||||||||
Cost of sales | 31,840 | 28,684 | 120,455 | 107,217 | ||||||||||||
Labor | 37,280 | 32,082 | 143,145 | 120,492 | ||||||||||||
Occupancy | 12,691 | 11,426 | 50,300 | 42,540 | ||||||||||||
Other restaurant operating costs | 16,672 | 13,598 | 63,549 | 52,580 | ||||||||||||
General and administrative | 10,209 | 8,588 | 37,244 | 31,394 | ||||||||||||
Depreciation and amortization | 6,842 | 6,818 | 27,802 | 24,787 | ||||||||||||
Pre-opening | 1,257 | 1,143 | 4,407 | 4,425 | ||||||||||||
Restaurant impairments, closure costs and asset disposals | 6,801 | 733 | 29,616 | 1,391 | ||||||||||||
Total costs and expenses | 123,592 | 103,072 | 476,518 | 384,826 | ||||||||||||
(Loss) income from operations | (6,464 | ) | 5,474 | (21,067 | ) | 18,915 | ||||||||||
Interest expense | 613 | 197 | 1,432 | 365 | ||||||||||||
(Loss) income before income taxes | (7,077 | ) | 5,277 | (22,499 | ) | 18,550 | ||||||||||
(Benefit) provision for income taxes | (2,823 | ) | 1,742 | (8,734 | ) | 7,122 | ||||||||||
Net (loss) income | $ | (4,254 | ) | $ | 3,535 | $ | (13,765 | ) | $ | 11,428 | ||||||
Earnings per Class A and Class B common stock, combined | ||||||||||||||||
Basic | $ | (0.15 | ) | $ | 0.12 | $ | (0.48 | ) | $ | 0.38 | ||||||
Diluted | $ | (0.15 | ) | $ | 0.11 | $ | (0.48 | ) | $ | 0.37 | ||||||
Weighted average Class A and Class B common stock outstanding, combined | ||||||||||||||||
Basic | 27,708,421 | 29,798,974 | 28,938,901 | 29,717,304 | ||||||||||||
Diluted | 27,708,421 | 30,884,874 | 28,938,901 | 31,001,099 |
Fiscal Quarter Ended | Fiscal Year Ended | |||||||||||
December 29, 2015 | December 30, 2014 | December 29, 2015 | December 30, 2014 | |||||||||
Revenue: | ||||||||||||
Restaurant revenue | 98.8 | % | 98.8 | % | 98.9 | % | 98.8 | % | ||||
Franchise royalties and fees | 1.2 | 1.2 | 1.1 | 1.2 | ||||||||
Total revenue | 100.0 | 100.0 | 100.0 | 100.0 | ||||||||
Costs and expenses: | ||||||||||||
Restaurant Operating Costs (exclusive of depreciation and amortization shown separately below): (1) | ||||||||||||
Cost of sales | 27.5 | 26.8 | 26.7 | 26.9 | ||||||||
Labor | 32.2 | 29.9 | 31.8 | 30.2 | ||||||||
Occupancy | 11.0 | 10.7 | 11.2 | 10.7 | ||||||||
Other restaurant operating costs | 14.4 | 12.7 | 14.1 | 13.2 | ||||||||
General and administrative | 8.7 | 7.9 | 8.2 | 7.8 | ||||||||
Depreciation and amortization | 5.8 | 6.3 | 6.1 | 6.1 | ||||||||
Pre-opening | 1.1 | 1.1 | 1.0 | 1.1 | ||||||||
Restaurant impairments, closure costs and asset disposals | 5.8 | 0.7 | 6.5 | 0.3 | ||||||||
Total costs and expenses | 105.5 | 95.0 | 104.6 | 95.3 | ||||||||
(Loss) income from operations | (5.5 | ) | 5.0 | (4.6 | ) | 4.7 | ||||||
Interest expense | 0.5 | 0.2 | 0.3 | 0.1 | ||||||||
(Loss) income before income taxes | (6.0 | ) | 4.9 | (4.9 | ) | 4.6 | ||||||
(Benefit) provision for income taxes | (2.4 | ) | 1.6 | (1.9 | ) | 1.8 | ||||||
Net (loss) income | (3.6 | )% | 3.3 | % | (3.0 | )% | 2.8 | % |
(1) | As a percentage of restaurant revenue. |
As of | ||||||||
December 29, 2015 | December 30, 2014 | |||||||
Balance Sheet Data | ||||||||
Total current assets | $ | 25,401 | $ | 22,776 | ||||
Total assets | 239,961 | 238,539 | ||||||
Total current liabilities | 32,914 | 25,831 | ||||||
Total long-term debt | 67,732 | 27,136 | ||||||
Total liabilities | 146,189 | 98,424 | ||||||
Total stockholders' equity | 93,772 | 140,115 |
Fiscal Quarter Ended | ||||||||||||||||
December 29, 2015 | September 29, 2015 | June 30, 2015 | March 31, 2015 | December 30, 2014 | ||||||||||||
Selected Operating Data | ||||||||||||||||
Restaurant Activity: | ||||||||||||||||
Company-owned restaurants at end of period | 422 | 424 | 411 | 399 | 386 | |||||||||||
Franchise restaurants at end of period | 70 | 64 | 61 | 56 | 53 | |||||||||||
Revenue Data: | ||||||||||||||||
Company-owned average unit volumes | $ | 1,103 | 1,111 | 1,123 | 1,136 | 1,147 | ||||||||||
Franchise average unit volumes | $ | 1,121 | 1,128 | 1,138 | 1,134 | 1,131 | ||||||||||
Company-owned comparable restaurant sales | (0.9 | )% | (0.7 | )% | 0.1 | % | 0.8 | % | 1.3 | % | ||||||
Franchise comparable restaurant sales | (2.1 | )% | (1.9 | )% | (0.5 | )% | 1.4 | % | 1.5 | % | ||||||
System-wide comparable restaurant sales | (1.1 | )% | (0.9 | )% | — | % | 0.9 | % | 1.3 | % |
Fiscal Quarter Ended | Fiscal Year Ended | |||||||||||||||
December 29, 2015 | December 30, 2014 | December 29, 2015 | December 30, 2014 | |||||||||||||
(in thousands, unaudited) | ||||||||||||||||
Net (loss) income | $ | (4,254 | ) | $ | 3,535 | $ | (13,765 | ) | $ | 11,428 | ||||||
Depreciation and amortization | 6,842 | 6,818 | 27,802 | 24,787 | ||||||||||||
Interest expense | 613 | 197 | 1,432 | 365 | ||||||||||||
(Benefit) provision for income taxes | (2,823 | ) | 1,742 | (8,734 | ) | 7,122 | ||||||||||
EBITDA | $ | 378 | $ | 12,292 | $ | 6,735 | $ | 43,702 | ||||||||
Restaurant impairments, closure costs and asset disposals | 6,801 | 733 | 29,616 | 1,391 | ||||||||||||
Stock-based compensation expense | 433 | 309 | 1,469 | 1,330 | ||||||||||||
Litigation reserves | 200 | — | 200 | — | ||||||||||||
Transaction costs (a) | — | 42 | — | 100 | ||||||||||||
Adjusted EBITDA | $ | 7,812 | $ | 13,376 | $ | 38,020 | $ | 46,523 |
(a) | Expenses related to the acquisition of 19 franchise restaurants. Sixteen of the restaurants were acquired in July 2014 and three restaurants were acquired in December 2014. |
Fiscal Quarter Ended | Fiscal Year Ended | |||||||||||||||
December 29, 2015 | December 30, 2014 | December 29, 2015 | December 30, 2014 | |||||||||||||
(in thousands, unaudited) | ||||||||||||||||
Net (loss) income | $ | (4,254 | ) | $ | 3,535 | $ | (13,765 | ) | $ | 11,428 | ||||||
Restaurant impairment costs (a) | 6,544 | — | 28,637 | — | ||||||||||||
Litigation reserves | 200 | — | 200 | — | ||||||||||||
Non-recurring stock-based compensation (b) | — | — | — | 147 | ||||||||||||
Transaction costs (c) | — | 42 | — | 100 | ||||||||||||
Obsolete inventory (d) | — | 490 | — | 490 | ||||||||||||
Tax effect of adjustments (e) | (2,602 | ) | (204 | ) | (11,124 | ) | (283 | ) | ||||||||
Adjusted net (loss) income | $ | (112 | ) | $ | 3,863 | $ | 3,948 | $ | 11,882 | |||||||
Adjusted earnings per Class A and Class B common stock, combined (f) | ||||||||||||||||
Basic | $ | — | $ | 0.13 | $ | 0.14 | $ | 0.40 | ||||||||
Diluted | $ | — | $ | 0.13 | $ | 0.13 | $ | 0.38 | ||||||||
Pro forma weighted average Class A and Class B common stock outstanding, combined (f) | ||||||||||||||||
Basic | 27,708,421 | 29,798,974 | 28,938,901 | 29,717,304 | ||||||||||||
Diluted | 27,708,421 | 30,884,874 | 29,616,249 | 31,001,099 |
(a) | Reflects the adjustment to eliminate the impact of impairing six restaurants in the fourth quarter ended December 29, 2015 and 38 restaurants in the fiscal year ended December 29, 2015. This also reflects the adjustments related to closing 16 restaurants in the fourth quarter ended December 29, 2015. These expenses are included in the "Restaurant impairments, closure costs and asset disposals" line in the Consolidated Statements of Income. |
(b) | Reflects the annual vesting of the options granted to the Chief Executive Officer and then-President and Chief Operating Officer prior to our IPO. |
(c) | Transaction-related expenses reflect costs incurred from the purchase of 19 franchise locations. Sixteen of the restaurants were acquired in July 2014 and three restaurants were acquired in December 2014. |
(d) | Reflects the asset write-off from the dissolving of a relationship with an overseas vendor. |
(e) | Reflects the tax expense associated with the adjustments in (a) through (e) above. |
(f) | Adjusted per share amounts are calculated by dividing Adjusted net (loss) income by the adjusted basic and diluted weighted average shares outstanding. |
7U5F9V
MAI:FML;6YO8W1U=G=X>7I[?'U^?W$0 " @$"! 0#! 4&!P<&!34! (1 R$Q
M$@1!46%Q(A,%,H&1%*&Q0B/!4M'P,R1BX7*"DD-3%6-S-/$E!A:BLH,')C7"
MTD235*,79$55-G1EXO*SA,/3=>/S1I2DA;25Q-3D]*6UQ=7E]59F=H:6IK;&
MUN;V)S='5V=WAY>GM\?_V@ , P$ A$#$0 _ ,[+S^H5YV4*\O(8!?: &W6-
M >\"&M>H#K?6&G:.I90(UC[19_Y-"SOZ?E?^&+O_/CUUV!T_'S?J'CL:QIS
MO6MMQO;[WNHNMO?2('O<_&KMKVK/Q0!B* TC;T6;)#%",I1!$I1A_=XOTGF&
M_6'K@&YO5,G;X^LXC\41OUF^L,2WJ>01X[P?RM*ZG/Q<''ZY]8>KVX[+STG&
MH=B8[P#5ZCZW.]1]?\ES6_\ @B$WI73_ *P-Z!U.W'KQ7Y]MM.?7CC8RWT6Y
M%OT9]N]^$]G^E]&_T_5_1UJ3VNFA/EX\+ .:PD<4L51H<4JB>& WTO^,0]J@3II?3LO^\X>*,8X@3,0,?E'\YT_P7F#UOJS
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M;MY_UNQG=:ZCE/Q'W=+ZK371DXKRUML5L]+>US'.9^?;_A?[:KY/UJ WTO^,0]J
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MDXKRUML5L]+>US'.9^?;_A?[:KY/UJ &%P
M+S$N,"\ /#]X<&%C:V5T(&)E9VEN/2+ON[\B(&ED/2)7-4TP37!#96AI2'IR
M95-Z3E1C>FMC.60B/SX-"CQX.GAM<&UE=&$@>&UL;G,Z>#TB861O8F4Z;G,Z
M;65T82\B('@Z>&UP=&L](D%D;V)E(%A-4"!#;W)E(#4N-BUC,#8W(# 0!Z 'L ? !] 'X ?P
M" ($ @@"# (0 A0"& (< B ")$(H0BQ",$(T0CA"/$) 0D1"2$),0E!"5$)
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M%A$6(18Q%D$6419A%G$6@1:1%J$6L1;!%M$6X1;Q%P$7$1!%Y$7H1>Q%\$7T1?A%_$8 1@1&"$8,1A!&%$881AQ&($8D1BA&+$8P1C1
M&.$8\1D!&1$9(1DQ&4$941EA&7$9@1F1&:(9LAG"&=(9XAGR&@(:$AHB&C(:
M0AI2&F(:X6
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M:F.-5=X9]I!>:[MOH;:FV/L]1[;&6^A_/UT_IK:O20;WW>KO\ 3?7_ (-6G_4/ZPMXQ@[^
MK?6?^KKH03]2?K(/^T-OR?C'\N94D3DZQ/V(@>1!B1DUB1*-WIP<4A^C\OK:
M_6^L4=2Q^ETTUV5GIV-]GL=9MASHJ;NJV.?[/T/YZSJ>+O\ POD?^>;%J6_5
M+ZP5?2PO[1Z5G\UZELNI]:KRAU'[-EY-+
MLV_(LX6'5?K+@W8.=B]'P'8-O5SNZC?
M8_<3,FRNEK7/_G=]G^C_ )VW]%^Y?S_KQ@.RK.H].P+6]4=C_9*LB]S=E=>Y
MUN\4UOM]1_J/_M_Z1 /^+[KC:W6.;0T-!)!RC,#7\WISO^J7+8M[,NZFC&Q7
MONR'-92QU[&[G/\ H,WOIKK:Y[O;[GHWE'Z/_16_T$CYI&MS<]0?3PRE^[PQ
M>CHZW]6[.C=-Z9U3!R\@].:0'U/:P$N^F?;?4]_M_?V*3NN_5C,Z=T[#ZMTW
M)R#TVOTF&M[6M .QK]NV^M[_ &TU_36!73E6NJ95@EQR+WXE)^TLVOOK =92
MVW:VK\[VV;_1M_P5BI_M+&U(I:0-"?6)'A])K4+G^[TK]'_OD\7*W8GD'J,Q
MPFN&4M^']UZ?I?UAZ/TJMN7B]+=^V64^@+C9^@<8#77OKW[MS]NZQC:O?_I?
M\*J/1^OYO2O4:UK,FJYV^RNT:%Y]SK&Z/:WWW>KO\ 3?7_ (-6G_4/ZPMXQ@[^K?6?^KKH03]2?K(/^T-OR?C'
M\N94D3DZQ/V(@>1!B1DUB1*-WIP<4A^C\OK:_6^L4=2Q^ETTUV5GIV-]GL=9
MMASHJ;NJV.?[/T/YZSJ>+O\ POD?^>;%J6_5+ZP5?2PO[1Z5G\UZELNI]:KRAU'[-EY-+LV_(LS-_,X,SAS.+,X\SDS.
M7,YLSGS.C,Z