EX-99.1 2 a15-4244_1ex99d1.htm EX-99.1

EXHIBIT 99.1

 

 

PRESS RELEASE

 

FOR IMMEDIATE RELEASE

 

Contact: Jill Peters

 

 

(818) 871-3000

 

 

investorrelations@thecheesecakefactory.com

 

 

 

THE CHEESECAKE FACTORY REPORTS RESULTS FOR

FOURTH QUARTER OF FISCAL 2014

 

Company to Discuss Long-Term Strategy During Today’s Conference Call

 

 

Calabasas Hills, CA – February 11, 2015 – The Cheesecake Factory Incorporated (NASDAQ: CAKE) today reported financial results for the fourth quarter of fiscal 2014, which ended on December 30, 2014.

 

Total revenues were $499.7 million in the fourth quarter of fiscal 2014 as compared to $475.1 million in the prior year fourth quarter.  Net income and diluted net income per share were $24.5 million and $0.48, respectively, in the fourth quarter of fiscal 2014.

 

Operating Results

 

Comparable restaurant sales at The Cheesecake Factory restaurants increased 1.4% in the fourth quarter of fiscal 2014.

 

“We continued to achieve a consistent level of sales at our existing Cheesecake Factory restaurants, with the fourth quarter completing our fifth consecutive year of delivering positive quarterly comparable sales.  In addition, our newer restaurants continue to outperform our Company average in sales per square foot, which speaks to the strength of our brand and multi-generational appeal,” said David Overton, Chairman and Chief Executive Officer.

 

“Looking back on 2014, there were many high points during the year, including our first restaurant opening in Mexico, continued expansion in the Middle East and execution of a licensing agreement for growth in Asia, in addition to a strong slate of domestic openings.  However, the operating environment was challenging and the fourth quarter was another in which we were impacted by cost pressures.  As we look forward to this year and beyond, we believe our future is bright with multiple opportunities for us to continue our leadership in casual dining and continue to grow our Company with the best talent in the industry to successfully execute our strategy,” concluded Overton.

 

 

 

 

26901 Malibu Hills Road, Calabasas Hills, CA 91301 · Telephone (818) 871-3000 · Fax (818) 871-3100

 


 

Development

 

The Company opened five new restaurants in the fourth quarter of fiscal 2014, delivering on its objective to open 10 Company-owned restaurants during fiscal 2014.

 

Internationally, one new Cheesecake Factory restaurant opened in the Middle East in the fourth quarter of fiscal 2014, for a total of four new international locations opened during the year under licensing agreements.

 

In fiscal 2015, the Company continues to expect to open as many as 11 Company-owned restaurants domestically.  In addition, the Company also continues to expect as many as four restaurants to open in the Middle East and Mexico under licensing agreements.

 

Capital Allocation

 

In fiscal 2014, the Company repurchased 3.1 million shares of its common stock at a cost of $140.5 million, including 3,232 shares repurchased in the fourth quarter of fiscal 2014. The Company returned $170.8 million in cash to shareholders in fiscal 2014 in the form of share repurchases and dividends.

 

The Company’s Board of Directors declared a quarterly cash dividend of $0.165 per share on the Company’s common stock.  The dividend is payable on March 10, 2015 to shareholders of record at the close of business on February 25, 2015.

 

For fiscal 2015, the Company continues to expect that it will return its free cash flow to shareholders in the form of share repurchases and dividends.

 

Financial Reporting Dates for Fiscal 2015

 

The Company plans to announce quarterly financial results and hold conference calls to discuss its results for the first three quarters of fiscal 2015 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.

 

Quarter Ending

 

Earnings Release and Conference Call Dates

March 31, 2015

 

April 22, 2015

June 30, 2015

 

July 22, 2015

September 29, 2015

 

October 21, 2015

 

Conference Call and Webcast

 

The Company will hold a conference call to review its results for the fourth quarter of fiscal 2014 and discuss its long-term strategy today at 2:00 p.m. Pacific Time.  The conference call will be webcast live on the Company’s website at investors.thecheesecakefactory.com and a replay of the webcast will be available through March 11, 2015.  Supplemental material will be made available on the Company’s website prior to the start of the conference call.

 

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 189 full-service, casual dining restaurants throughout the U.S. and Puerto Rico, including 177 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, eight The Cheesecake Factory® restaurants operate under licensing agreements.  The Company also operates two bakery production facilities in Calabasas Hills, CA and Rocky Mount, NC that produce quality cheesecakes and other baked products.  In 2014, the Company was named to Fortune magazine’s “100 Best Companies to Work For” list. To learn more about the Company, visit thecheesecakefactory.com.

 

 

 

 

26901 Malibu Hills Road, Calabasas Hills, CA 91301 · Telephone (818) 871-3000 · Fax (818) 871-3100

 


 

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 consistent and dependable comparable sales results over a sustained period of time; the Company’s ability to successfully open new restaurants with sales performance above the Company’s average; the Company’s ability to remain relevant to consumers, to maintain high quality standards and provide guests with an exceptional experience; the Company’s ability to operate efficiently and effectively; the Company’s ability to expand its concepts domestically and work with its licensees to expand its concept internationally; the Company’s ability to execute its long-term strategy; 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 macroeconomic conditions; acceptance and success of The Cheesecake Factory in international markets; changes in 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, licensees, 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.

 

 

 

 

26901 Malibu Hills Road, Calabasas Hills, CA 91301 · Telephone (818) 871-3000 · Fax (818) 871-3100

 


 

The Cheesecake Factory Incorporated and Subsidiaries

Consolidated Financial Statements

(unaudited; in thousands, except per share and statistical data)

 

 

 

13 Weeks Ended

 

13 Weeks Ended

 

52 Weeks Ended

 

52 Weeks Ended

Consolidated Statements of Operations

 

December 30, 2014

 

December 31, 2013

 

December 30, 2014

 

December 31, 2013

 

 

Amounts

 

Percent of
Revenue

 

Amounts

 

Percent of
Revenue

 

Amounts

 

Percent of
Revenue

 

Amounts

 

Percent of
Revenue

Revenues

 

 $

499,673

 

100.0%

 

 $

475,075

 

100.0%

 

 $

1,976,624

 

100.0%

 

 $

1,877,910

 

100.0%

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

126,249

 

25.3%

 

116,015

 

24.4%

 

490,306

 

24.9%

 

455,685

 

24.2%

Labor expenses

 

162,596

 

32.5%

 

150,014

 

31.6%

 

646,102

 

32.7%

 

603,069

 

32.1%

Other operating costs and expenses

 

120,199

 

24.1%

 

113,833

 

24.0%

 

478,504

 

24.2%

 

452,571

 

24.1%

General and administrative expenses

 

29,169

 

5.8%

 

29,323

 

6.2%

 

119,094

 

6.0%

 

114,728

 

6.1%

Depreciation and amortization expenses

 

21,120

 

4.2%

 

20,452

 

4.3%

 

82,835

 

4.2%

 

78,558

 

4.2%

Impairment of assets and lease terminations

 

-

 

0.0%

 

(3,807)

 

(0.8)%

 

696

 

0.0%

 

(561)

 

(0.0)%

Preopening costs

 

5,548

 

1.1%

 

4,879

 

1.0%

 

14,356

 

0.7%

 

12,906

 

0.7%

Total costs and expenses

 

464,881

 

93.0%

 

430,709

 

90.7%

 

1,831,893

 

92.7%

 

1,716,956

 

91.4%

Income from operations

 

34,792

 

7.0%

 

44,366

 

9.3%

 

144,731

 

7.3%

 

160,954

 

8.6%

Interest and other (expense)/income, net

 

(1,871)

 

(0.4)%

 

(1,196)

 

(0.2)%

 

(6,187)

 

(0.3)%

 

(4,504)

 

(0.3)%

Income before income taxes

 

32,921

 

6.6%

 

43,170

 

9.1%

 

138,544

 

7.0%

 

156,450

 

8.3%

Income tax provision

 

8,435

 

1.7%

 

10,170

 

2.2%

 

37,268

 

1.9%

 

42,094

 

2.2%

Net income

 

 $

24,486

 

4.9%

 

 $

33,000

 

6.9%

 

 $

101,276

 

5.1%

 

 $

114,356

 

6.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income per share

 

 $

0.50

 

 

 

 $

0.64

 

 

 

 $

2.04

 

 

 

 $

2.19

 

 

Basic weighted average shares outstanding

 

49,198

 

 

 

51,352

 

 

 

49,567

 

 

 

52,229

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted net income per share

 

 $

0.48

 

 

 

 $

0.62

 

 

 

 $

1.96

 

 

 

 $

2.10

 

 

Diluted weighted average shares outstanding

 

51,207

 

 

 

53,604

 

 

 

51,584

 

 

 

54,377

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Segment Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Cheesecake Factory restaurants

 

 $

450,465

 

 

 

 $

425,556

 

 

 

 $

1,792,796

 

 

 

 $

1,688,036

 

 

Other

 

49,208

 

 

 

49,519

 

 

 

183,828

 

 

 

189,874

 

 

 

 

 $

499,673

 

 

 

 $

475,075

 

 

 

 $

1,976,624

 

 

 

 $

1,877,910

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Cheesecake Factory restaurants

 

 $

58,524

 

 

 

 $

66,589

 

 

 

 $

240,774

 

 

 

 $

250,230

 

 

Other

 

3,550

 

 

 

5,652

 

 

 

14,983

 

 

 

19,985

 

 

Corporate

 

(27,282)

 

 

 

(27,875)

 

 

 

(111,026)

 

 

 

(109,261)

 

 

 

 

 $

34,792

 

 

 

 $

44,366

 

 

 

 $

144,731

 

 

 

 $

160,954

 

 

 

 

Selected Consolidated Balance Sheet Information

 

December 30, 2014

 

December 31, 2013

 

 

 

 

Cash and cash equivalents

 

$        58,018

 

$        61,751

 

 

 

 

Total assets

 

1,176,452

 

1,124,114

 

 

 

 

Total liabilities

 

619,942

 

546,761

 

 

 

 

Stockholders’ equity

 

556,510

 

577,353

 

 

 

 

 

 

 

13 Weeks Ended

 

13 Weeks Ended

 

52 Weeks Ended

 

52 Weeks Ended

Supplemental Information

 

December 30, 2014

 

December 31, 2013

 

December 30, 2014

 

December 31, 2013

The Cheesecake Factory comparable restaurant sales

 

1.4%

 

1.1%

 

1.5%

 

1.1%

Restaurants opened during period

 

5

 

6

 

10

 

9

Restaurants open at period-end

 

189

 

180

 

189

 

180

Restaurant operating weeks

 

2,425

 

2,315

 

9,510

 

9,156

 

 

 

 

26901 Malibu Hills Road, Calabasas Hills, CA 91301 · Telephone (818) 871-3000 · Fax (818) 871-3100

 


 

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 net income and diluted net income per share excluding the impact from certain items.

 

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

 

52 Weeks Ended

 

52 Weeks Ended

 

 

December 30, 2014

 

December 31, 2013

 

December 30, 2014

 

December 31, 2013

 

 

(unaudited; in thousands, except per share data)

Net income (GAAP)

 

$24,486

 

$33,000

 

$101,276

 

$114,356

After-tax impact from:

 

 

 

 

 

 

 

 

  - Impairment of assets and lease terminations (1)

 

-

 

(2,284)

 

418

 

(337)

Net income (non-GAAP)

 

$24,486

 

$30,716

 

$101,694

 

$114,019

 

 

 

 

 

 

 

 

 

Diluted net income per share (GAAP)

 

$    0.48

 

$    0.62

 

$      1.96

 

$      2.10

After-tax impact from:

 

 

 

 

 

 

 

 

  - Impairment of assets and lease terminations (1)

 

-

 

(0.04)

 

0.01

 

(0.01)

Diluted net income per share (non-GAAP) (2)

 

$    0.48

 

$    0.57

 

$      1.97

 

$      2.10

 

(1)   The pre-tax amounts associated with these items in fiscal 2014 were $510 in the second quarter and $186 in the first quarter.  The pre-tax amounts associated with these items in fiscal 2013 were $(3,807) in the fourth quarter, $1,097 in the third quarter, $1,505 in the second quarter and $644 in the first quarter.  All items were recorded in impairment of assets and lease terminations.

(2)   Diluted net income per share may not add due to rounding.

###

 

 

 

 

26901 Malibu Hills Road, Calabasas Hills, CA 91301 · Telephone (818) 871-3000 · Fax (818) 871-3100