Delaware (State or other jurisdiction of incorporation or organization) 26950 Agoura Road Calabasas Hills, California (Address of principal executive offices) |
51-0340466 (IRS Employer Identification No.) 91301 (Zip Code) |
Registrants telephone number, including area code: (818) 871-3000 _________________ Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [_] As of October 23, 2001, 48,449,846 shares of the registrants Common Stock, $.01 par value, were outstanding. |
THE CHEESECAKE FACTORY INCORPORATED AND SUBSIDIARIESINDEX |
Page Number | |||||||
PART I. | FINANCIAL INFORMATION | ||||||
Item 1. | Financial Statements: | ||||||
Consolidated Balance Sheets - October 2, 2001 and January 2, 2001 | 1 | ||||||
Consolidated Statements of Operations - Thirteen and thirty-nine weeks ended October 2, 2001 and September 26, 2000 |
2 | ||||||
Consolidated Statements of Cash Flows - Thirty-nine weeks ended October 2, 2001 and September 26, 2000 |
3 | ||||||
Notes to Consolidated Financial Statements | 4 | ||||||
Item 2. | Managements Discussion and Analysis of Financial Condition and Results of Operations |
6 | |||||
Item 3. | Quantitative and Qualitative Disclosures about Market Risk | 12 | |||||
PART II. | OTHER INFORMATION | ||||||
Item 6. | Exhibits and Reports on Form 8-K | 13 | |||||
Signatures | 14 |
PART I. FINANCIAL INFORMATIONItem 1. Financial Statements THE CHEESECAKE FACTORY
INCORPORATED AND SUBSIDIARIES
|
October 2, 2001 |
January 2, 2001 | ||||||||
---|---|---|---|---|---|---|---|---|---|
(unaudited) | |||||||||
ASSETS | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ 5,981 | $ 34,284 | |||||||
Investments and marketable securities | 16,482 | 16,822 | |||||||
Accounts receivable | 4,170 | 4,877 | |||||||
Other receivables | 9,220 | 15,112 | |||||||
Inventories | 11,813 | 9,328 | |||||||
Prepaid expenses | 2,170 | 1,411 | |||||||
Deferred income taxes | 520 | 773 | |||||||
Total current assets | 50,356 | 82,607 | |||||||
Property and equipment, net | 201,109 | 161,223 | |||||||
Other assets: | |||||||||
Marketable securities | 58,789 | 34,208 | |||||||
Other receivables | 6,628 | 5,276 | |||||||
Trademarks | 1,955 | 1,905 | |||||||
Other | 3,726 | 3,173 | |||||||
Total other assets | 71,098 | 44,562 | |||||||
Total assets | $ 322,563 | $ 288,392 | |||||||
LIABILITIES AND STOCKHOLDERS EQUITY | |||||||||
Current liabilities: | |||||||||
Accounts payable | $ 12,765 | $ 17,712 | |||||||
Income taxes payable | 7,814 | 993 | |||||||
Other accrued expenses | 25,376 | 24,422 | |||||||
Total current liabilities | 45,955 | 43,127 | |||||||
Deferred income taxes | 4,429 | 4,429 | |||||||
Stockholders equity: | |||||||||
Preferred stock, $.01 par value, 5,000,000 shares authorized; none issued and outstanding |
| | |||||||
Junior participating cumulative preferred stock, $.01 par value, 150,000 shares authorized; none issued and outstanding | | | |||||||
Common stock, $.01 par value, 150,000,000 shares authorized; 48,449,846 and 47,887,211 issued at October 2, 2001 and January 2, 2001, respectively | 484 | 319 | |||||||
Additional paid-in capital | 152,289 | 147,694 | |||||||
Retained earnings | 127,756 | 99,581 | |||||||
Unrealized gain on available-for-sale securities | 971 | 365 | |||||||
Treasury stock, 850,500 and 756,000 shares at cost at October 2, 2001 and January 2, 2001, respectively | (9,321 | ) | (7,123 | ) | |||||
Total stockholders equity | 272,179 | 240,836 | |||||||
Total liabilities and stockholders equity | $ 322,563 | $ 288,392 | |||||||
The accompanying notes are an integral part of these consolidated financial statements. |
1 |
THE CHEESECAKE FACTORY INCORPORATED AND SUBSIDIARIES
|
Thirteen Weeks Ended October 2, 2001 |
Thirteen Weeks Ended September 26, 2000 |
Thirty-nine Weeks Ended October 2, 2001 |
Thirty-nine Weeks Ended September 26, 2000 | ||||||
---|---|---|---|---|---|---|---|---|---|
Revenues: | |||||||||
Restaurant sales | $128,552 | $104,364 | $365,142 | $292,428 | |||||
Bakery sales to other foodservice | |||||||||
operators, retailers and distributors | 9,068 | 6,957 | 25,234 | 20,220 | |||||
Total revenues | 137,620 | 111,321 | 390,376 | 312,648 | |||||
Costs and expenses: | |||||||||
Restaurant cost of sales | 32,774 | 26,240 | 93,249 | 73,565 | |||||
Bakery cost of sales | 4,470 | 3,324 | 12,383 | 9,347 | |||||
Labor expenses | 42,163 | 33,565 | 119,954 | 95,486 | |||||
Other operating costs and expenses | 30,559 | 24,365 | 87,327 | 68,815 | |||||
General and administrative expenses | 6,898 | 6,204 | 20,206 | 19,056 | |||||
Depreciation and amortization expenses | 4,551 | 3,547 | 12,525 | 9,701 | |||||
Preopening costs | 2,013 | 1,618 | 4,861 | 3,549 | |||||
Total costs and expenses | 123,428 | 98,863 | 350,505 | 279,519 | |||||
Income from operations | 14,192 | 12,458 | 39,871 | 33,129 | |||||
Interest income, net | 1,012 | 1,203 | 3,450 | 3,251 | |||||
Other income (expense), net | 73 | 79 | 998 | 51 | |||||
Income before income taxes | 15,277 | 13,740 | 44,319 | 36,431 | |||||
Income tax provision | 5,500 | 5,188 | 15,955 | 13,754 | |||||
Net income | $ 9,777 | $ 8,552 | $ 28,364 | $ 22,677 | |||||
Net income per share: | |||||||||
Basic | $ 0.21 | $ 0.18 | $ 0.60 | $ 0.49 | |||||
Diluted | $ 0.20 | $ 0.17 | $ 0.57 | $ 0.46 | |||||
Weighted average shares outstanding: | |||||||||
Basic | 47,512 | 46,511 | 47,388 | 45,986 | |||||
Diluted | 49,986 | 50,517 | 49,782 | 49,677 | |||||
The accompanying notes are an integral part of these consolidated financial statements. |
2 |
THE CHEESECAKE FACTORY INCORPORATED AND SUBSIDIARIES
|
Thirty-nine Weeks Ended October 2, 2001 |
Thirty-nine Weeks Ended September 26, 2000 | ||||
---|---|---|---|---|---|
Cash flows from operating activities: | |||||
Net income | $ 28,364 | $ 22,677 | |||
Adjustments to reconcile net income to net cash provided by | |||||
operating activities: | |||||
Depreciation and amortization | 12,525 | 9,701 | |||
Deferred income taxes | (88 | ) | 5 | ||
Gain on available-for-sale securities | (987 | ) | (34 | ) | |
Loss on asset sale | | 3 | |||
Changes in assets and liabilities: | |||||
Accounts receivable | 707 | 1,369 | |||
Other receivables | 4,540 | (5,888 | ) | ||
Inventories | (2,485 | ) | (1,100 | ) | |
Prepaid expenses | (759 | ) | 1,547 | ||
Trademarks | (114 | ) | (163 | ) | |
Other | (633 | ) | (518 | ) | |
Accounts payable | (4,947 | ) | 1,129 | ||
Income taxes payable | 6,821 | 6,436 | |||
Other accrued expenses | 953 | 633 | |||
Net cash provided by operating activities | 43,897 | 35,797 | |||
Cash flows from investing activities: | |||||
Additions to property and equipment | (52,266 | ) | (23,190 | ) | |
Investments in available-for-sale securities | (92,006 | ) | (46,844 | ) | |
Sales of available-for-sale securities | 69,699 | 26,730 | |||
Net cash used in investing activities | (74,573 | ) | (43,304 | ) | |
Cash flows from financing activities: | |||||
Common stock issued | 4 | 10 | |||
Dividends paid for fractional shares | (28 | ) | (30 | ) | |
Proceeds from exercise of employee stock options | 4,595 | 11,212 | |||
Purchase of treasury stock | (2,198 | ) | (1,318 | ) | |
Net cash provided by financing activities | 2,373 | 9,874 | |||
Net change in cash and cash equivalents | (28,303 | ) | 2,367 | ||
Cash and cash equivalents at beginning of period | 34,284 | 24,026 | |||
Cash and cash equivalents at end of period | $ 5,981 | $ 26,393 | |||
Supplemental disclosures: | |||||
Interest paid | $ | $ 10 | |||
Income taxes paid | $ 9,143 | $ 7,300 | |||
The accompanying notes are an integral part of these consolidated financial statements. |
3 |
Classification |
Cost |
Fair Value |
Unrealized Gain/(Loss) |
Balance Sheet Amount |
Maturity | ||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Current assets: | |||||||||||
Available-for-sale securities: | |||||||||||
Corporate debt securities | $16,374 | $16,482 | $ 108 | $16,482 | November 2001 to August 2002 | ||||||
Other assets: | |||||||||||
Available-for-sale securities: | |||||||||||
Corporate debt securities | $51,256 | $52,541 | $1,285 | $52,541 | January 2003 to July 2004 | ||||||
U.S. Treasury securities | 6,124 | 6,248 | 124 | 6,248 | October 2002 to August 2004 | ||||||
Total | $57,380 | $58,789 | $1,409 | $58,789 | |||||||
NOTE C - NET INCOME PER SHAREBasic net income per share is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted net income per share includes the dilutive effect of potential stock option exercises, calculated using the treasury stock method. 4 |
Thirteen Weeks Ended October 2, 2001 |
Thirteen Weeks Ended September 26, 2000 |
Thirty-nine Weeks Ended October 2, 2001 |
Thirty-nine Weeks Ended September 26, 2000 | ||||||
---|---|---|---|---|---|---|---|---|---|
% |
% |
% |
% | ||||||
Revenues: | |||||||||
Restaurant sales | 93.4 | 93.8 | 93.5 | 93.5 | |||||
Bakery sales to other foodservice | |||||||||
operators, retailers and distributors | 6.6 | 6.2 | 6.5 | 6.5 | |||||
Total revenues | 100.0 | 100.0 | 100.0 | 100.0 | |||||
Costs and expenses: | |||||||||
Restaurant cost of sales | 23.8 | 23.6 | 23.9 | 23.5 | |||||
Bakery cost of sales | 3.3 | 3.0 | 3.2 | 3.0 | |||||
Labor expenses | 30.6 | 30.1 | 30.7 | 30.6 | |||||
Other operating costs and expenses | 22.2 | 21.9 | 22.4 | 22.0 | |||||
General and administrative expenses | 5.0 | 5.6 | 5.2 | 6.1 | |||||
Depreciation and amortization expenses | 3.3 | 3.2 | 3.2 | 3.1 | |||||
Preopening costs | 1.5 | 1.4 | 1.2 | 1.1 | |||||
Total costs and expenses | 89.7 | 88.8 | 89.8 | 89.4 | |||||
Income from operations | 10.3 | 11.2 | 10.2 | 10.6 | |||||
Interest income, net | 0.7 | 1.1 | 0.9 | 1.0 | |||||
Other income (expense), net | 0.1 | | 0.3 | | |||||
Income before income taxes | 11.1 | 12.3 | 11.4 | 11.6 | |||||
Income tax provision | 4.0 | 4.6 | 4.1 | 4.4 | |||||
Net income | 7.1 | 7.7 | 7.3 | 7.2 | |||||
October 2, 2001 |
January 2, 2001 | |||||
---|---|---|---|---|---|---|
(dollar amounts in millions) | ||||||
Cash and marketable securities on hand | $81.3 | $85.3 | ||||
Adjusted net working capital, including all marketable securities | $63.2 | $73.7 | ||||
Adjusted current ratio, including all marketable securities | 2.4:1 | 2.7:1 | ||||
Long-term debt | | |
During the thirty-nine weeks ended October 2, 2001, our balance of cash and marketable securities on hand decreased by $4.0 million to $81.3 million from the January 2, 2001 balance. This decrease was primarily attributable to the timing of certain working capital requirements and capital expenditures associated with new restaurant openings and restaurant-level technology upgrades. As of October 23, 2001, there were no borrowings outstanding under the Companys $25 million revolving credit and term loan facility (the Credit Facility). Borrowings under the Credit Facility will bear interest at variable rates based, at our option, on either the prime rate of interest, the lending institutions cost of funds rate plus 0.75% or the applicable LIBOR rate plus 0.75%. The Credit Facility expires on May 31, 2003. On that date, a maximum of $25 million of any borrowings outstanding under the Credit Facility automatically convert into a four-year term loan, payable in equal quarterly installments at interest rates of 0.5% higher than the applicable revolving credit rates. The Credit Facility is not collateralized and requires us to maintain certain financial ratios and to observe certain restrictive covenants with respect to the conduct of our operations, with which we are currently in compliance. 11 |
Item 6. Exhibits and Reports on Form 8-K (a) Exhibits. None. (b) Reports on Form 8-K. None. 13 |
SIGNATURESPursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. |
Date: October 23, 2001 | THE CHEESECAKE FACTORY INCORPORATED By: /s/ David M. Overton David M. Overton Chairman of the Board, President and Chief Executive Officer |
|
By: /s/ Gerald W. Deitchle Gerald W. Deitchle Executive Vice President, Corporate Operations and Chief Financial Officer |
14 |