McCormick & Schmick’s Seafood Restaurants, Inc. Reports First Quarter 2010 Financial Results
The Company reaffirms its annual revenue guidance for 2010 to be between $355.0 million and $365.0 million, and estimates earnings of $0.40 to $0.45 per fully diluted share.
McCormick & Schmick’s Seafood Restaurants, Inc. (Nasdaq: MSSR) today reported financial results for its first quarter ended March 27, 2010.
Financial results for the first quarter 2010 compared to the first quarter 2009:
Bill Freeman, Chief Executive Officer, said, “I’m encouraged by the positive response of our guests to our strategic initiatives designed to improve guest traffic. Our results reflect consecutive quarter over quarter improvement for the past two quarters in comparable sales and guest traffic. For the balance of the year, we intend to remain focused on execution at the restaurant level while completing the implementation of strategies launched last year. We will continue to evolve our concept, further connect with our current guests and broaden our appeal to a wider audience.”
Outlook and 2010 Financial Guidance
The Company reaffirms its annual revenue guidance for 2010 to be between $355.0 million and $365.0 million, and estimates earnings of $0.40 to $0.45 per fully diluted share.
The Company expects its annualized effective tax rate to be between 10.0% and 15.0% due to its projection of modest taxable income for the year in certain taxing jurisdictions.
The Company also expects 2010 depreciation and amortization of approximately $16.0 million, and general and administrative expenses to be between $20.0 million and $21.0 million.
In 2010, the Company plans to open two McCormick & Schmick seafood restaurants, the first in West Palm Beach, Florida, which opened in February, and the second in Houston, Texas, which is planned to open in June, as well as one The Boathouse restaurant in Vancouver, B.C. Canada, which is planned to open in the summer.
About McCormick & Schmick’s Seafood Restaurants, Inc.
McCormick & Schmick’s Seafood Restaurants, Inc. is a leading seafood restaurant operator in the affordable upscale dining segment. The Company operates 94 restaurants, including 88 restaurants in the United States and six restaurants in Canada under The Boathouse brand. McCormick & Schmick’s has successfully grown over the past 38 years by focusing on serving a broad selection of fresh seafood. McCormick & Schmick’s inviting atmosphere and high quality, diverse menu offering and compelling price-value proposition appeals to a diverse base of casual diners, families, travelers and the business community.
Definition of Comparable Restaurant Sales
Comparable restaurant sales represent sales at all the restaurants owned by the Company in operation at least eighteen months from the beginning of the year being discussed. Comparable restaurant sales exclude the impact of currency translation. Management reviews the increase or decrease in comparable restaurant sales with the same period in the prior year to assess business trends.
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McCormick & Schmick’s Seafood Restaurants, Inc. and Subsidiaries Condensed Consolidated Statements of Operations and Margin Analysis (unaudited) (in thousands, except per share data) |
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| Thirteen week period ended | ||||||||||||||
| March 28, 2009 | March 27, 2010 | |||||||||||||
| Revenues | $ | 91,894 | 100.0 | % | $ | 84,822 | 100.0 | % | ||||||
| Restaurant operating costs | ||||||||||||||
| Food and beverage | 27,696 | 30.1 | % | 25,797 | 30.4 | % | ||||||||
| Labor | 30,489 | 33.2 | % | 28,160 | 33.2 | % | ||||||||
| Operating | 14,340 | 15.6 | % | 12,574 | 14.8 | % | ||||||||
| Occupancy | 9,489 | 10.3 | % | 9,187 | 10.8 | % | ||||||||
| Total restaurant operating costs | 82,014 | 89.2 | % | 75,718 | 89.3 | % | ||||||||
| General and administrative expenses | 5,845 | 6.4 | % | 4,907 | 5.8 | % | ||||||||
| Restaurant pre-opening costs | 562 | 0.6 | % | 502 | 0.6 | % | ||||||||
| Depreciation and amortization | 4,080 | 4.4 | % | 3,811 | 4.5 | % | ||||||||
| Impairment, restructuring and other charges | 181 | 0.2 | % | ? | ? | |||||||||
| Total costs and expenses | 92,682 | 100.9 | % | 84,938 | 100.1 | % | ||||||||
| Operating loss | (788 | ) | (0.9 | )% | (116 | ) | (0.1 | )% | ||||||
| Interest expense, net | 378 | 0.4 | % | 406 | 0.5 | % | ||||||||
| Other income, net | 14 | ? | ? | ? | ||||||||||
| Loss before income taxes | (1,180 | ) | (1.3 | )% | (522 | ) | (0.6 | )% | ||||||
| Income tax benefit | (36 | ) | ? | (82 | ) | (0.1 | )% | |||||||
| Net loss | $ | (1,144 | ) | (1.2 | )% | $ | (440 | ) | (0.5 | )% | ||||
| Net loss per share | ||||||||||||||
| Basic and diluted | $ | (0.08 | ) | $ | (0.03 | ) | ||||||||
| Shares used in computing net loss per share | ||||||||||||||
| Basic and diluted | 14,728 | 14,787 | ||||||||||||
