Fogo de Chão, Inc. (NASDAQ:FOGO) today reported financial results
for its 13-week fiscal second quarter ended July 2, 2017.
Key Highlights for the Second Quarter of
2017 compared to the Second Quarter of 2016 Include:
- Total revenue was $77.8 million, which represents 11.8% growth
on a reported basis and 10.4% growth on a constant currency
basis(1).
- Consolidated comparable restaurant sales increased 0.3%.
- U.S. comparable restaurant sales increased 0.5%.
- GAAP net income was $5.4 million, or $0.19 per
diluted share.
- Adjusted net income(2) was $6.0 million, or $0.21 per
diluted share.
- The Company opened its 48th restaurant in Bellevue,
Washington.(1) In order to assess how the business performed
in the current period, the Company has adjusted the prior period on
a constant currency basis. Constant currency calculations compare
results between periods as if exchange rates had remained constant
period-over-period. The Company compares the percent change in the
results from one period to another period using constant currency
to exclude the effects of foreign currency fluctuations. A
reconciliation of GAAP revenue to constant currency revenue is
included in the accompanying financial data. See also "Non-GAAP
Financial Measures" below.(2) Adjusted net income is a
non-GAAP measure. A reconciliation of GAAP net income to adjusted
net income is included in the accompanying financial data. See also
"Non-GAAP Financial Measures" below.
“The team is successfully executing its sales
and traffic building initiatives while also opening strong new
units like the recent Bellevue, Washington site,” said Larry
Johnson, Chief Executive Officer of Fogo de Chao, Inc. “We
are pleased to be on the path for a fourth consecutive year of
positive traffic in the US.”
Second Quarter 2017 Financial
Results
Total revenue for the second quarter of Fiscal
2017 was $77.8 million compared to $69.6 million in the second
quarter of Fiscal 2016. The $8.2 million increase is
primarily attributable to new restaurant locations opened in the
last 18 months, a favorable foreign exchange impact and a
comparable sales increase of 0.3%. Excluding the impact of the
favorable foreign exchange impact, total revenues for the first
quarter increased 10.4% over the prior year period.
U.S. restaurant revenue for the second quarter
of Fiscal 2017 was $66.7 million compared to $59.3 million for the
second quarter of Fiscal 2016. The $7.4 million increase is due to
new restaurant locations opened in the last 18 months and a U.S.
comparable restaurant sales increase of 0.5%.
Brazil restaurant revenue for the second quarter
of Fiscal 2017 was $11.0 million compared to $10.2 million in the
second quarter of Fiscal 2016. The $0.8 million increase is
attributable to a favorable foreign exchange impact, offset by a
Brazil comparable restaurant sales decrease of 0.9%.
GAAP net income for the second quarter of Fiscal
2017 was $5.4 million, or $0.19 per diluted share, compared to $6.2
million, or $0.21 per diluted share in the second quarter of Fiscal
2016. Adjusted net income in the second quarter of Fiscal
2017 was $6.0 million, or $0.21 per diluted share, compared to $6.3
million, or $0.22 per diluted share in the second quarter of Fiscal
2016. A reconciliation between GAAP net income and adjusted net
income is included in the accompanying financial data.
Development Update
As of July 2, 2017, the Company operated 48
restaurants, 10 of which are in Brazil, and two joint venture
restaurants in Mexico City.
The Company opened its 48th location in
Bellevue, Washington in May 2017. The Company plans to open
at least two additional Company-owned restaurants during the
remainder of Fiscal 2017, and up to two additional international
joint venture restaurants. The Company has three signed leases and
is negotiating multiple letters of intent for planned 2018 and 2019
Company-owned locations.
Investors are reminded that the actual number
and timing of new restaurant openings is subject to a number of
factors outside of the Company's control including, but not limited
to, weather conditions and factors under the control of landlords,
contractors and regulatory/licensing authorities.
2017 Outlook
The Company is reiterating its guidance for the
52-week fiscal year 2017, which ends on December 31, 2017. Diluted
net income per share is expected to range between $0.92 and $0.95,
which represents growth of 7.0% to 12.0% over diluted net income
per share of $0.85, or adjusted diluted net income per share of
$0.86(1) in Fiscal 2016. Diluted net income per share guidance for
Fiscal 2017 is based, in part, on the following annual
assumptions:
- Total revenue of $315 million to $320 million, assuming an
exchange rate of 3.25 Brazilian reais to 1 U.S. dollar, which
represents 10% to 12% growth on a constant currency and Olympics
adjusted basis;
- Company-owned comparable restaurant sales of -0.5% to
0.5%;
- Restaurant contribution margin of 28.8% to 29.2%;
- Pre-opening expenses of $3.0 million to $3.5 million;
- General and administrative expenses of $20 million to $22
million;
- Opening up to seven restaurants, including up to two
international joint venture locations;
- Capital expenditures, net of tenant allowances, of $26 million
to $30 million;
- Depreciation expense of $18.5 million to $19.0 million;
and
- Tax rate of 32% to 33%.(1) The Company’s 2016 results are
adjusted for comparison to 2017 by ($0.02) to exclude the estimated
effects of the Olympics benefit and by $0.01 to adjust 2016 to the
same Brazilian Real exchange rate that has been projected for 2017
guidance (3.25 reais to 1 U.S. dollar).
Guidance Policy
The Company intends to provide annual guidance
as it relates to revenue, comparable restaurant sales growth,
restaurant contribution margin, general and administrative expense,
tax expense, and development schedule. The Company expressly
disclaims any duty to update this guidance.
Conference Call/ Webcast
The Company will host a conference call to
discuss its second quarter 2017 financial results today at 5:00 PM
Eastern Time. Hosting the call will be Larry Johnson, Chief
Executive Officer, Barry McGowan, President, and Tony Laday, Chief
Financial Officer.
The conference call can be accessed live over
the phone by dialing (877) 407-0789 or for international callers by
dialing (201) 689-8562. A replay will be available two hours after
the call and can be accessed by dialing (844) 512-2921 or for
international callers by dialing (412) 317-6671; the passcode is
13652685. The replay will be available through Tuesday, August 15,
2017. The conference call will also be webcast live and later
archived on Fogo’s corporate website at ir.fogodechao.com under the
‘News & Events’ section.
About Fogo de Chão
Fogo de Chão (fogo-dee-shown) is a leading
Brazilian steakhouse, or churrascaria, which has specialized for
more than 37 years in fire-roasting high-quality meats utilizing
the centuries-old Southern Brazilian cooking technique of
churrasco. Fogo delivers a distinctive and authentic Brazilian
dining experience through the combination of high-quality Brazilian
cuisine and a differentiated service model known as espeto corrido
(Portuguese for "continuous service") delivered by gaucho chefs.
Fogo offers its guests a tasting menu of a variety of meats
including beef, lamb, pork and chicken, simply seasoned and
carefully fire-roasted to expose their natural flavors, a gourmet
Market Table with seasonal salads, soup and fresh vegetables,
seafood, desserts, signature cocktails and an award-winning wine
list. The first Fogo de Chão opened in Brazil in 1979. The Company
currently operates 36 restaurants in the United States, 10 in
Brazil and two joint venture restaurants in Mexico. Visit FOGO.com
for more information.
Safe Harbor Statement
This release contains forward-looking
statements, within the meaning of the Private Securities Litigation
Reform Act of 1995, which are subject to risks and uncertainties.
Forward-looking statements relate to expectations, beliefs,
projections, guidance, future plans, objectives and strategies,
anticipated events or trends and similar expressions concerning
matters that are not historical facts, such as statements regarding
our future financial condition or results of operations, our
prospects and strategies for future growth, the development and
introduction of new products, and the implementation of our
marketing and branding strategies. Forward-looking statements can
also be identified by words such as “may,” “will,” “should,”
“expects,” “plans,” “anticipates,” “believes,” “estimates,”
“predicts,” “potential,” “seeks,” “intends,” “targets” or the
negative of these terms or other comparable
terminology. Forward-looking statements are not guarantees of
future performance and actual results may differ significantly from
the results discussed in the forward-looking statements. Factors
that might cause such differences include, but are not limited to,
those discussed in the section entitled "Risk Factors" in our
recent annual report on Form 10-K for the fiscal year ended January
1, 2017 filed with the Securities and Exchange Commission, and our
discussion of risks in our quarterly reports on From 10-Q. The
forward-looking statements included in this press release are made
only as of the date hereof. Except as required by applicable
securities law, we undertake no obligation to update any
forward-looking statement to reflect events or circumstances after
the date on which the statement is made or to reflect the
occurrence of unanticipated events.
Non-GAAP Financial Measures
The Company uses the following non-GAAP
financial measures: EBITDA, Adjusted EBITDA, Adjusted net income
(loss), and constant currency (collectively the "non-GAAP financial
measures"). The Company also presents certain results of operations
on a constant currency basis to exclude the effects of foreign
currency fluctuations. The Company uses these non-GAAP financial
measures for financial and operational decision making and as a
means to evaluate period-to-period comparisons. The Company
believes that they provide useful information about operating
results, enhance the overall understanding of past financial
performance and future prospects, and allow for greater
transparency with respect to key metrics used by management in its
financial and operational decision making. The non-GAAP measures
used by the Company in this press release may be different from the
methods used by other companies.
|
|
Key Financial
Data - Fiscal Quarter |
|
Fiscal Quarter Ended |
|
|
Constant Currency (a) |
|
(in thousands,
except restaurant and per share amounts) |
|
July 2,2017 |
|
|
July 3,2016 |
|
|
Change |
|
|
Change |
|
|
July 3,2016 |
|
|
Change |
|
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
store sales: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. |
|
|
0.5 |
% |
|
|
-1.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brazil |
|
|
-0.9 |
% |
|
|
-4.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated |
|
|
0.3 |
% |
|
|
-1.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restaurants
opened during period |
|
|
1 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restaurants
open at period end |
|
|
48 |
|
|
|
42 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue(b): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.(c) |
|
$ |
66,743 |
|
|
$ |
59,326 |
|
|
$ |
7,417 |
|
|
|
12.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Brazil |
|
$ |
10,983 |
|
|
$ |
10,203 |
|
|
$ |
780 |
|
|
|
7.6 |
% |
|
$ |
11,098 |
|
|
$ |
(115 |
) |
|
|
-1.0 |
% |
Consolidated |
|
$ |
77,758 |
|
|
$ |
69,550 |
|
|
$ |
8,208 |
|
|
|
11.8 |
% |
|
$ |
70,445 |
|
|
$ |
7,313 |
|
|
|
10.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
attributable to Fogo de
Chão, Inc. |
|
$ |
14,927 |
|
|
$ |
14,795 |
|
|
$ |
132 |
|
|
|
0.9 |
% |
|
$ |
14,985 |
|
|
$ |
(58 |
) |
|
|
-0.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Fogo de Chão,
Inc. |
|
$ |
5,414 |
|
|
$ |
6,190 |
|
|
$ |
(776 |
) |
|
|
-12.5 |
% |
|
$ |
6,336 |
|
|
$ |
(922 |
) |
|
|
-14.6 |
% |
Adjusted net
income attributable to Fogo de
Chão, Inc. |
|
$ |
5,989 |
|
|
$ |
6,272 |
|
|
$ |
(283 |
) |
|
|
-4.5 |
% |
|
$ |
6,418 |
|
|
$ |
(429 |
) |
|
|
-6.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
earnings per share |
|
$ |
0.19 |
|
|
$ |
0.21 |
|
|
$ |
(0.02 |
) |
|
|
-9.5 |
% |
|
$ |
0.22 |
|
|
$ |
(0.03 |
) |
|
|
-13.6 |
% |
Adjusted
diluted earnings per share |
|
$ |
0.21 |
|
|
$ |
0.22 |
|
|
$ |
(0.01 |
) |
|
|
-4.5 |
% |
|
$ |
0.22 |
|
|
$ |
(0.01 |
) |
|
|
-4.5 |
% |
(a) We compare the percent change in the results
from one period to another period using constant currency to
exclude the effects of foreign currency fluctuations.(b) We have
two operating segments: United States and Brazil. Our joint venture
in Mexico is included in the United States for segment reporting
purposes as the operations of the joint venture are monitored by
the United States segment management.(c) U.S. revenue excludes gift
card breakage revenue ($32).
|
|
|
|
Key Financial
Data - Fiscal Year |
|
Twenty-Six Week Periods Ended |
|
|
Constant Currency (a) |
|
(in thousands,
except restaurant and per share amounts) |
|
July 2,2017 |
|
|
July 3,2016 |
|
|
Change |
|
|
Change |
|
|
July 3,2016 |
|
|
Change |
|
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
store sales: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. |
|
|
0.9 |
% |
|
|
-0.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brazil |
|
|
-1.8 |
% |
|
|
-1.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated |
|
|
0.3 |
% |
|
|
-0.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restaurants
opened during period |
|
|
3 |
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restaurants
open at period end |
|
|
48 |
|
|
|
42 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue(b): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.(c) |
|
$ |
133,259 |
|
|
$ |
119,969 |
|
|
$ |
13,290 |
|
|
|
11.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Brazil |
|
$ |
20,808 |
|
|
$ |
18,398 |
|
|
$ |
2,410 |
|
|
|
13.1 |
% |
|
$ |
21,213 |
|
|
$ |
(405 |
) |
|
|
-1.9 |
% |
Consolidated |
|
$ |
154,113 |
|
|
$ |
138,407 |
|
|
$ |
15,706 |
|
|
|
11.3 |
% |
|
$ |
141,222 |
|
|
$ |
12,891 |
|
|
|
9.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
attributable to Fogo de
Chão, Inc. |
|
$ |
29,203 |
|
|
$ |
28,889 |
|
|
$ |
314 |
|
|
|
1.1 |
% |
|
$ |
29,432 |
|
|
$ |
(229 |
) |
|
|
-0.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Fogo de Chão,
Inc. |
|
$ |
10,453 |
|
|
$ |
12,160 |
|
|
$ |
(1,707 |
) |
|
|
-14.0 |
% |
|
$ |
12,540 |
|
|
$ |
(2,087 |
) |
|
|
-16.6 |
% |
Adjusted net
Income attributable to Fogo de
Chão, Inc. |
|
$ |
11,236 |
|
|
$ |
12,397 |
|
|
$ |
(1,161 |
) |
|
|
-9.4 |
% |
|
$ |
12,790 |
|
|
$ |
(1,554 |
) |
|
|
-12.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
earnings per share |
|
$ |
0.36 |
|
|
$ |
0.42 |
|
|
$ |
(0.06 |
) |
|
|
-14.3 |
% |
|
$ |
0.43 |
|
|
$ |
(0.07 |
) |
|
|
-16.3 |
% |
Adjusted
diluted earnings per share |
|
$ |
0.39 |
|
|
$ |
0.43 |
|
|
$ |
(0.04 |
) |
|
|
-9.3 |
% |
|
$ |
0.44 |
|
|
$ |
(0.05 |
) |
|
|
-11.4 |
% |
(a) We compare the percent change in the results
from one period to another period using constant currency to
exclude the effects of foreign currency fluctuations.(b) We have
two operating segments: United States and Brazil. Our joint venture
in Mexico is included in the United States for segment reporting
purposes as the operations of the joint venture are monitored by
the United States segment management.(c) U.S. revenue excludes gift
card breakage revenue ($46).
|
|
|
|
Fogo de Chão, Inc. |
|
Unaudited Condensed Consolidated Statements of
Operations and Comprehensive Income (Loss) |
|
(in thousands, except share and per share
amounts) |
|
|
|
|
|
Thirteen Week Periods Ended |
|
|
Twenty-Six Week Periods Ended |
|
|
|
July 2,2017 |
|
|
July 3,2016 |
|
|
July 2,2017 |
|
|
July 3,2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
77,758 |
|
|
$ |
69,550 |
|
|
$ |
154,113 |
|
|
$ |
138,407 |
|
Restaurant operating
costs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Food and
beverage costs |
|
|
22,332 |
|
|
|
20,237 |
|
|
|
43,760 |
|
|
|
39,421 |
|
Compensation and benefit costs |
|
|
18,110 |
|
|
|
15,834 |
|
|
|
36,746 |
|
|
|
32,009 |
|
Occupancy
and other operating expenses (excluding depreciation and
amortization) |
|
|
15,021 |
|
|
|
12,950 |
|
|
|
30,118 |
|
|
|
25,624 |
|
Total
restaurant operating costs |
|
|
55,463 |
|
|
|
49,021 |
|
|
|
110,624 |
|
|
|
97,054 |
|
Marketing and
advertising costs |
|
|
2,198 |
|
|
|
1,753 |
|
|
|
3,993 |
|
|
|
3,411 |
|
General and
administrative costs |
|
|
6,126 |
|
|
|
4,791 |
|
|
|
11,632 |
|
|
|
10,409 |
|
Pre-opening costs |
|
|
719 |
|
|
|
524 |
|
|
|
2,033 |
|
|
|
1,032 |
|
Depreciation and
amortization |
|
|
4,796 |
|
|
|
3,882 |
|
|
|
9,300 |
|
|
|
7,628 |
|
Other operating
(income) expense, net |
|
|
165 |
|
|
|
(149 |
) |
|
|
332 |
|
|
|
(204 |
) |
Total
costs and expenses |
|
|
69,467 |
|
|
|
59,822 |
|
|
|
137,914 |
|
|
|
119,330 |
|
Income from
operations |
|
|
8,291 |
|
|
|
9,728 |
|
|
|
16,199 |
|
|
|
19,077 |
|
Other income
(expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense, net of capitalized interest |
|
|
(1,249 |
) |
|
|
(1,094 |
) |
|
|
(2,410 |
) |
|
|
(2,220 |
) |
Interest
income |
|
|
605 |
|
|
|
491 |
|
|
|
1,322 |
|
|
|
886 |
|
Other
income (expense), net |
|
|
5 |
|
|
|
(3 |
) |
|
|
12 |
|
|
|
(3 |
) |
Total
other income (expense), net |
|
|
(639 |
) |
|
|
(606 |
) |
|
|
(1,076 |
) |
|
|
(1,337 |
) |
Income before income
taxes |
|
|
7,652 |
|
|
|
9,122 |
|
|
|
15,123 |
|
|
|
17,740 |
|
Income tax expense |
|
|
2,378 |
|
|
|
3,056 |
|
|
|
4,890 |
|
|
|
5,682 |
|
Net income |
|
|
5,274 |
|
|
|
6,066 |
|
|
|
10,233 |
|
|
|
12,058 |
|
Less: Net
loss attributable to noncontrolling interest |
|
|
(140 |
) |
|
|
(124 |
) |
|
|
(220 |
) |
|
|
(102 |
) |
Net income attributable
to Fogo de Chão, Inc. |
|
$ |
5,414 |
|
|
$ |
6,190 |
|
|
$ |
10,453 |
|
|
$ |
12,160 |
|
Net income |
|
$ |
5,274 |
|
|
$ |
6,066 |
|
|
$ |
10,233 |
|
|
$ |
12,058 |
|
Other comprehensive
income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency
translation adjustment |
|
|
(5,279 |
) |
|
|
8,212 |
|
|
|
(660 |
) |
|
|
16,115 |
|
Total other
comprehensive income (loss) |
|
$ |
(5,279 |
) |
|
$ |
8,212 |
|
|
$ |
(660 |
) |
|
$ |
16,115 |
|
Comprehensive income
(loss) |
|
|
(5 |
) |
|
|
14,278 |
|
|
|
9,573 |
|
|
|
28,173 |
|
Less:
Comprehensive income (loss) attributable to noncontrolling
interest |
|
|
(41 |
) |
|
|
(281 |
) |
|
|
112 |
|
|
|
(256 |
) |
Comprehensive income
attributable to Fogo de Chão, Inc. |
|
$ |
36 |
|
|
$ |
14,559 |
|
|
$ |
9,461 |
|
|
$ |
28,429 |
|
Earnings per common
share attributable to Fogo de Chão, Inc.: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.19 |
|
|
$ |
0.22 |
|
|
$ |
0.37 |
|
|
$ |
0.43 |
|
Diluted |
|
$ |
0.19 |
|
|
$ |
0.21 |
|
|
$ |
0.36 |
|
|
$ |
0.42 |
|
Weighted average common
shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
28,214,065 |
|
|
|
28,086,942 |
|
|
|
28,213,259 |
|
|
|
28,082,240 |
|
Diluted |
|
|
28,880,315 |
|
|
|
28,880,226 |
|
|
|
28,863,638 |
|
|
|
28,898,149 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to Adjusted Net Income
attributable to Fogo de Chão, Inc.(a)(in
thousands, except share and per share amounts)
|
|
Fiscal Quarter Ended |
|
|
Constant Currency(e) |
|
|
|
July 2,2017 |
|
|
July 3,2016 |
|
|
July 3,2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to Fogo de Chão, Inc. |
|
$ |
5,414 |
|
|
$ |
6,190 |
|
|
$ |
6,336 |
|
Secondary offering
costs |
|
|
715 |
|
|
|
— |
|
|
|
— |
|
Non-recurring
expenses(b) |
|
|
— |
|
|
|
124 |
|
|
|
124 |
|
Income tax
expense(c) |
|
|
2,368 |
|
|
|
3,039 |
|
|
|
3,087 |
|
Pre-tax adjusted net
income |
|
|
8,497 |
|
|
|
9,353 |
|
|
|
9,547 |
|
Estimated tax
provision(d) |
|
|
2,508 |
|
|
|
3,081 |
|
|
|
3,129 |
|
Adjusted net income
attributable to Fogo de Chão, Inc. |
|
$ |
5,989 |
|
|
$ |
6,272 |
|
|
$ |
6,418 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income per
common share attributable to Fogo de Chão, Inc.: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.21 |
|
|
$ |
0.22 |
|
|
$ |
0.23 |
|
Diluted |
|
$ |
0.21 |
|
|
$ |
0.22 |
|
|
$ |
0.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
28,214,065 |
|
|
|
28,086,942 |
|
|
|
28,086,942 |
|
Diluted |
|
|
28,880,315 |
|
|
|
28,880,226 |
|
|
|
28,880,226 |
|
(a) Excludes impacts attributable to our joint
venture in Mexico.(b) For the thirteen weeks ended July 3, 2016
amount consists of one-time legal and accounting expenses.(c)
Consists of recorded income tax expense for the period. Actual
taxes are added back and recalculated against pre-tax adjusted net
income shown in (d).(d) The estimated tax provision has been
recalculated excluding the one-time expenses.(e) We compare the
percent change in the results from one period to another period
using constant currency to exclude the effects of foreign currency
fluctuations.
Reconciliation to Adjusted Net Income
attributable to Fogo de Chão, Inc.(a)(in
thousands, except share and per share amounts)
|
|
Twenty-Six Week Periods Ended |
|
|
Constant Currency(e) |
|
|
|
July 2,2017 |
|
|
July 3,2016 |
|
|
July 3,2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to Fogo de Chão, Inc. |
|
$ |
10,453 |
|
|
$ |
12,160 |
|
|
$ |
12,540 |
|
Secondary offering
costs |
|
|
715 |
|
|
|
— |
|
|
|
— |
|
Non-recurring
expenses(b) |
|
|
208 |
|
|
|
348 |
|
|
|
368 |
|
Income tax
expense(c) |
|
|
4,866 |
|
|
|
5,647 |
|
|
|
5,790 |
|
Pre-tax adjusted net
income |
|
|
16,242 |
|
|
|
18,155 |
|
|
|
18,698 |
|
Estimated tax
provision(d) |
|
|
5,006 |
|
|
|
5,758 |
|
|
|
5,908 |
|
Adjusted net income
attributable to Fogo de Chão, Inc. |
|
$ |
11,236 |
|
|
$ |
12,397 |
|
|
$ |
12,790 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income per
common share attributable to Fogo de Chão, Inc.: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.40 |
|
|
$ |
0.44 |
|
|
$ |
0.46 |
|
Diluted |
|
$ |
0.39 |
|
|
$ |
0.43 |
|
|
$ |
0.44 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
28,213,259 |
|
|
|
28,082,240 |
|
|
|
28,082,240 |
|
Diluted |
|
|
28,863,638 |
|
|
|
28,898,149 |
|
|
|
28,898,149 |
|
(a) Excludes impacts attributable to our joint
venture in Mexico.(b) For the twenty-six weeks ended July 2 2017,
amount consists of an increase in reserves related to litigation
with The Union of Workers in Hotels, Apart-Hotels, Motels, Flats,
Restaurants, Bars, Snack Bars and Similar in São Paulo and the
Region. An agreement was reached with the Union of Workers to
resolve the claims and a labor court judge signed an order
approving the agreement during the second quarter of Fiscal 2017.
For the twenty-six weeks ended July 3, 2016 amount includes $224 in
one-time expenses related to the realignment of management of the
Brazilian subsidiaries, the legal transfer of the Brazilian
subsidiaries to the Company’s Dutch holding company to support the
Company’s expansion into international markets and $124 in other
one-time legal and accounting fees.(c) Consists of recorded income
tax expense for the period. Actual taxes are added back and
recalculated against pre-tax adjusted net income shown in (d);
however the non-recurring item related to Brazil for the twenty-six
weeks ended July 2, 2017 has no current year tax effect as it is
considered a non-taxable event in Brazil.(d) The estimated tax
provision has been recalculated excluding the one-time expenses.(e)
We compare the percent change in the results from one period to
another period using constant currency to exclude the effects of
foreign currency fluctuations.
Reconciliation Adjusted EBITDA
attributable to Fogo de Chão, Inc.(a):(in
thousands)
|
|
Fiscal Quarter Ended |
|
|
Constant Currency(d) |
|
|
|
July 2,2017 |
|
|
July 3,2016 |
|
|
July 3,2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to Fogo de Chão, Inc. |
|
$ |
5,414 |
|
|
$ |
6,190 |
|
|
$ |
6,336 |
|
Depreciation and amortization expense |
|
|
4,693 |
|
|
|
3,814 |
|
|
|
3,853 |
|
Interest
expense, net |
|
|
1,249 |
|
|
|
1,094 |
|
|
|
1,094 |
|
Interest
income |
|
|
(605 |
) |
|
|
(491 |
) |
|
|
(534 |
) |
Income
tax expense |
|
|
2,368 |
|
|
|
3,039 |
|
|
|
3,087 |
|
EBITDA |
|
|
13,119 |
|
|
|
13,646 |
|
|
|
13,836 |
|
Pre-opening costs |
|
|
717 |
|
|
|
491 |
|
|
|
491 |
|
Share-based compensation |
|
|
150 |
|
|
|
285 |
|
|
|
285 |
|
Non-cash
adjustments(b) |
|
|
226 |
|
|
|
249 |
|
|
|
249 |
|
Secondary
offering costs |
|
|
715 |
|
|
|
— |
|
|
|
— |
|
Non-recurring expenses(c) |
|
|
— |
|
|
|
124 |
|
|
|
124 |
|
Adjusted EBITDA
attributable to Fogo de Chão, Inc. |
|
$ |
14,927 |
|
|
$ |
14,795 |
|
|
$ |
14,985 |
|
(a) Excludes impacts attributable to our joint
venture in Mexico.(b) Consists of non-cash portion of straight line
rent expense.(c) For the thirteen weeks ended July 3, 2016 amount
consists of one-time legal and accounting expenses.(d) We compare
the percent change in the results from one period to another period
using constant currency to exclude the effects of foreign currency
fluctuations.
Reconciliation Adjusted EBITDA
attributable to Fogo de Chão, Inc.(a):(in
thousands)
|
|
Twenty-Six Week Periods Ended |
|
|
Constant Currency(d) |
|
|
|
July 2,2017 |
|
|
July 3,2016 |
|
|
July 3,2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to Fogo de Chão, Inc. |
|
$ |
10,453 |
|
|
$ |
12,160 |
|
|
$ |
12,540 |
|
Depreciation and amortization expense |
|
|
9,103 |
|
|
|
7,492 |
|
|
|
7,625 |
|
Interest
expense, net |
|
|
2,410 |
|
|
|
2,220 |
|
|
|
2,220 |
|
Interest
income |
|
|
(1,322 |
) |
|
|
(886 |
) |
|
|
(1,021 |
) |
Income
tax expense (benefit) |
|
|
4,866 |
|
|
|
5,647 |
|
|
|
5,790 |
|
EBITDA |
|
|
25,510 |
|
|
|
26,633 |
|
|
|
27,154 |
|
Pre-opening costs |
|
|
2,031 |
|
|
|
999 |
|
|
|
999 |
|
Share-based compensation |
|
|
299 |
|
|
|
412 |
|
|
|
412 |
|
Non-cash
adjustments(b) |
|
|
440 |
|
|
|
497 |
|
|
|
499 |
|
Secondary
offering costs |
|
|
715 |
|
|
|
— |
|
|
|
— |
|
Non-recurring expenses(c) |
|
|
208 |
|
|
|
348 |
|
|
|
368 |
|
Adjusted EBITDA
attributable to Fogo de Chão, Inc. |
|
$ |
29,203 |
|
|
$ |
28,889 |
|
|
$ |
29,432 |
|
(a) Excludes impacts attributable to our joint venture in
Mexico.(b) Consists of non-cash portion of straight line rent
expense.(c) For the twenty-six weeks ended July 2 2017, amount
consists of an increase in reserves related to litigation with The
Union of Workers in Hotels, Apart-Hotels, Motels, Flats,
Restaurants, Bars, Snack Bars and Similar in São Paulo and the
Region. An agreement was reached with the Union of Workers to
resolve the claims and a labor court judge signed an order
approving the agreement during the second quarter of Fiscal 2017.
For the twenty-six weeks ended July 3, 2016 amount includes $224 in
one-time expenses related to the realignment of management of the
Brazilian subsidiaries, the legal transfer of the Brazilian
subsidiaries to the Company’s Dutch holding company to support the
Company’s expansion into international markets and $124 in other
one-time legal and accounting fees.(d) We compare the percent
change in the results from one period to another period using
constant currency to exclude the effects of foreign currency
fluctuations.
|
|
Supplemental Selected Constant Currency
Adjustment Information |
|
|
|
Fiscal Quarter Ended |
|
Constant
Currency reconciliation |
|
July 2,2017 |
|
|
July 3,2016 |
|
|
|
|
|
|
|
|
|
|
Revenue as
reported |
|
$ |
77,758 |
|
|
$ |
69,550 |
|
Effect of
foreign currency(a) |
|
|
— |
|
|
|
895 |
|
Revenue at constant
currency |
|
$ |
77,758 |
|
|
$ |
70,445 |
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
$ |
14,927 |
|
|
$ |
14,795 |
|
Effect of
foreign currency(a) |
|
|
— |
|
|
|
190 |
|
Adjusted EBITDA at
constant currency |
|
$ |
14,927 |
|
|
$ |
14,985 |
|
Adjusted EBITDA margin
at constant currency |
|
|
19.2 |
% |
|
|
21.3 |
% |
|
|
|
|
|
|
|
|
|
Restaurant
contribution |
|
$ |
22,295 |
|
|
$ |
20,529 |
|
Effect of
foreign currency(a) |
|
|
— |
|
|
|
277 |
|
Restaurant contribution
at constant currency |
|
$ |
22,295 |
|
|
$ |
20,806 |
|
Restaurant contribution
margin at constant currency |
|
|
28.7 |
% |
|
|
29.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
Twenty-Six Week Periods Ended |
|
Constant
Currency reconciliation |
|
July 2,2017 |
|
|
July 3,2016 |
|
|
|
|
|
|
|
|
|
|
Revenue as
reported |
|
$ |
154,113 |
|
|
$ |
138,407 |
|
Effect of
foreign currency(a) |
|
|
— |
|
|
|
2,815 |
|
Revenue at constant
currency |
|
$ |
154,113 |
|
|
$ |
141,222 |
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
$ |
29,203 |
|
|
$ |
28,889 |
|
Effect of
foreign currency(a) |
|
|
— |
|
|
|
543 |
|
Adjusted EBITDA at
constant currency |
|
$ |
29,203 |
|
|
$ |
29,432 |
|
Adjusted EBITDA margin
at constant currency |
|
|
18.9 |
% |
|
|
20.8 |
% |
|
|
|
|
|
|
|
|
|
Restaurant
contribution |
|
$ |
43,489 |
|
|
$ |
41,353 |
|
Effect of
foreign currency(a) |
|
|
— |
|
|
|
793 |
|
Restaurant contribution
at constant currency |
|
$ |
43,489 |
|
|
$ |
42,146 |
|
Restaurant contribution
margin at constant currency |
|
|
28.2 |
% |
|
|
29.8 |
% |
(a) As exchange rates are an important factor in understanding
period-to-period comparisons, we believe the presentation of
certain results on a constant currency basis in addition to
reported results helps improve investors’ ability to understand our
operating results and evaluate our performance in comparison to
prior periods. Constant currency information compares results
between periods as if exchange rates had remained constant
period-over-period. We use results on a constant currency basis as
one measure to evaluate our performance. We calculate constant
currency by retranslating results across all prior periods
presented using a derived exchange rate for the most current year
periods presented based on actual results. The tables set forth
below calculate constant currency at a foreign currency exchange
rate of 3.2142 and 3.1790 Brazilian reais to 1 US dollar, which
represents the derived exchange rate for the thirteen and
twenty-six week periods ended July 2, 2017, respectively,
calculated as explained above. These results should be considered
in addition to, not as a substitute for, results reported in
accordance with GAAP. Results on a constant currency basis, as we
present them, may not be comparable to similarly titled measures
used by other companies and are not measures of performance
presented in accordance with GAAP.
|
|
|
|
UNAUDITED SELECTED CONSOLIDATED BALANCE SHEET
DATA |
|
(in thousands) |
|
|
|
|
|
As of |
|
|
As of |
|
|
|
July 2,2017 |
|
|
January 1,2017 |
|
Cash and cash
equivalents |
|
$ |
32,050 |
|
|
$ |
31,275 |
|
Total assets |
|
|
524,474 |
|
|
|
522,395 |
|
Long-term debt,
including current portion |
|
|
143,000 |
|
|
|
150,000 |
|
Deferred taxes |
|
|
24,964 |
|
|
|
21,838 |
|
Total liabilities |
|
|
221,913 |
|
|
|
229,536 |
|
Total Fogo de Chão,
Inc. shareholders' equity |
|
|
300,404 |
|
|
|
290,644 |
|
Total equity |
|
|
302,561 |
|
|
|
292,859 |
|
Investor Contact:
IR@fogodechao.com
(972) 361-6225
Media Contact:
Joy Murphy, ICR
Joy.Murphy@icrinc.com
(646) 277‐1242
Grafico Azioni FOGO DE CHAO, INC. (NASDAQ:FOGO)
Storico
Da Ago 2024 a Set 2024
Grafico Azioni FOGO DE CHAO, INC. (NASDAQ:FOGO)
Storico
Da Set 2023 a Set 2024