Rubio's Restaurants, Inc. Reports First Quarter 2007 Results - Company Achieves Record Comparable Store Sales
Rubio's(R) Restaurants, Inc. (NASDAQ:RUBO) announced financial results for the 13-week first quarter ended April 1, 2007.
First Quarter Results
• Revenues rose 16.8% to $41.0 million from $35.1 million for the 13-week quarter in 2006.
• Comparable store sales increased 8.3%, which is the highest increase the Company has reported since going public in 1999. Transactions increased 0.5% and check average increased 7.8% from the same quarter last year.
• Net income was $196,000 as compared to net income of $192,000 for the same quarter last year.
• Earnings per share were $0.02 per diluted share in the first quarter for both 2007 and 2006.
• Restaurant operating cash flow margins (see definition below) were 15.3% as compared to 15.4% for the same quarter last year. The primary reason for this decline is that the increases in our food and beverage costs, including cost increases in fish, tortillas, avocados and beverage syrup, out-paced our recent menu price increases.
• Adjusted EBITDA (see table below) increased 26.4% to $2.8 million from $2.2 million for the same quarter last year.
• Average unit volumes for the trailing 52 weeks were $1,002,000.
"I am pleased with our top line growth during the first quarter of 2007, especially since we are reporting our highest increase in comparable store sales as a public company," said Dan Pittard, Rubio's President and Chief Executive Officer. "For the past eight months, our primary focus has been on improving the guest experience and driving our top line growth. While we anticipated some increases in our food costs, the increases were higher than we planned in part because of unusually cold weather in Southern California that significantly increased our cost for produce and avocados. We have initiatives underway to improve both our food and labor costs."
RUBIO'S RESTAURANTS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
For the Thirteen Weeks Ended
April 1, 2007 March 26, 2006
RESTAURANT SALES $40,946 $35,027
FRANCHISE AND LICENSING REVENUES 33 56
TOTAL REVENUES 40,979 35,083
COST OF SALES 11,761 9,537
RESTAURANT LABOR 13,583 11,552
RESTAURANT OCCUPANCY AND OTHER 9,325 8,556
GENERAL AND ADMINISTRATIVE EXPENSES 3,849 3,319
DEPRECIATION AND AMORTIZATION 2,207 1,860
PRE-OPENING EXPENSES 0 33
LOSS ON DISPOSAL/SALE OF PROPERTY 18 14
OPERATING INCOME 236 212
OTHER INCOME, NET 103 101
INCOME BEFORE INCOME TAXES 339 313
INCOME TAX EXPENSE (143) (121)
NET INCOME $196 $192
NET INCOME PER SHARE:
Basic and diluted $0.02 $0.02
Percentage of Total Revenues
For the Thirteen Weeks Ended
April 1, 2007 March 26, 2006
TOTAL REVENUES 100.0% 100.0%
COST OF SALES (1) 28.7% 27.2%
RESTAURANT LABOR (1) 33.2% 33.0%
RESTAURANT OCCUPANCY AND OTHER (1) 22.8% 24.4%
GENERAL AND ADMINISTRATIVE EXPENSES 9.4% 9.5%
DEPRECIATION AND AMORTIZATION 5.4% 5.3%
PRE-OPENING EXPENSES 0.0% 0.1%
LOSS ON DISPOSAL/SALE OF PROPERTY 0.0% 0.0%
OPERATING INCOME 0.6% 0.6%
OTHER INCOME, NET 0.3% 0.3%
INCOME BEFORE INCOME TAXES 0.8% 0.9%
INCOME TAX EXPENSE 0.3% 0.3%
NET INCOME 0.5% 0.5%
(1) As a percentage of restaurant sales
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
April 1, 2007 December 31, 2006
(unaudited)
CASH AND CASH EQUIVALENTS $5,790 $9,946
OTHER CURRENT ASSETS 9,514 5,895
PROPERTY - NET 36,755 36,909
LONG-TERM INVESTMENTS 3,088 3,048
OTHER ASSETS 12,094 11,707
TOTAL ASSETS $67,241 $67,505
CURRENT LIABILITIES $15,717 $17,304
OTHER LIABILITIES 10,592 9,699
STOCKHOLDERS' EQUITY 40,932 40,502
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $67,241 $67,505
