Fiesta Restaurant Group, Inc. Reports First Quarter 2022 Results
Fiesta Restaurant Group reported a 8.0% increase in comparable restaurant sales for Q1 2022 compared to Q1 2021, generating revenues of $95.6 million.
Despite improvements, the company faced a net loss of $1.3 million, higher than the $0.7 million loss in Q1 2021. First quarter Restaurant-level Adjusted EBITDA margins also dipped to 16.1% from 21.2% in the previous year. The company is focused on enhancing digital platforms and implementing kitchen redesigns to drive future growth.
- 8.0% increase in comparable restaurant sales vs Q1 2021.
- Total revenues rose 8.4% to $95.6 million.
- Restaurant-level Adjusted EBITDA margin improved to 16.1% from 14.3% in Q4 2021.
- Digital channel sales grew 15.5% year-over-year.
- Net loss increased to $1.3 million from $0.7 million in Q1 2021.
- Restaurant-level Adjusted EBITDA margin decreased to 16.1% from 21.2% in Q1 2021.
- Labor and food costs increased, partially offsetting pricing actions.
First Quarter 2022 Comparable Restaurant Sales Growth of
Fiesta President and Chief Executive Officer
Stockinger added, "Strong revenue growth continued with first quarter 2022 comparable restaurant sales performance of
Stockinger continued, "First quarter 2022 Restaurant-level Adjusted EBITDA margins, a non-GAAP financial measure,(3) improved to
Stockinger further commented, "When compared to the first quarter of 2021, our Restaurant-level Adjusted EBITDA margins declined during the first quarter of 2022 primarily due to total labor and food cost increases, which were only partially offset in the quarter given our pricing action to offset those costs in the last month of the quarter. First quarter 2022 net loss from continuing operations was
Stockinger continued, "Our singular focus on Pollo Tropical has enabled us to make significant progress on the brand’s growth initiatives during the first quarter. First, we made great strides on enhancing our digital platform. The rollout of the upgraded digital drive thru technology is underway with five to six additional units to be completed by the end of the second quarter. The pace of rollout of this additional feature will increase during the remainder of the year. As a result of improved staffing levels, we also re-opened curbside capability in all units and plan to add marketing support behind this effort going forward. Second, we continue to refine and implement our new, more efficient kitchen design in upcoming refreshes and remodels, which significantly reduces order cycle times and unlocks unmet drive thru demand in high volume units. Our first total retrofit is in the final stages of implementation, with additional retrofits planned for the balance of 2022. And third, we completed seven additional refreshes and remodels during the first quarter, making 15 in total since 2021. The sales lift(5) on the refreshed units completed to date was approximately +
Stockinger concluded, "Our team has proactively and successfully managed external labor supply and inflationary challenges. We are encouraged by our continued sales and margin momentum thus far in 2022, something we expect to see continue for the balance of the year - barring unforeseen changes in our operating environment. Significantly, we have also finalized plans to reduce G&A expenses and we expect to see this positively impact the second half of this year - aiming to achieve our targeted range of
| _____________________________ | ||
| (1) | Comparable restaurant sales results are not adjusted for the impact of named storms. |
|
| (2) |
We consider the labor shortages to have negatively impacted operating hours in markets with staffing levels below |
|
| (3) | See non-GAAP discussion below. |
|
| (4) | Restaurant-level Adjusted EBITDA run rate approximated based on the adjusted results of the remaining period of the quarter following the March price increase. |
|
| (5) | Sales lift on refreshed units based on sales in the respective units in the 4-weeks immediately prior to the commencement of the project compared to the sales after reopening the unit for full operations. |
|
First Quarter 2022 Financial Summary
-
Total revenues from continuing operations increased
8.4% to$95.6 million $88.2 million -
Comparable restaurant sales at Pollo Tropical increased
8.0% in the first quarter of 2022 compared to the first quarter of 2021; -
Net loss of
$(1.4) million $(0.05) $(2.1) million $(0.08) -
Net loss from continuing operations of
$(1.3) million $(0.05) $(0.7) million $(0.03) -
Adjusted net loss (a non-GAAP financial measure) of
$(0.4) million $(0.02) $1.4 million $0.05 -
Consolidated Adjusted EBITDA (a non-GAAP financial measure) of
$5.3 million $9.7 million -
Restaurant-level Adjusted EBITDA (a non-GAAP financial measure) of
$15.3 million 16.1% of Pollo Tropical restaurant sales, in the first quarter of 2022 compared to$18.7 million 21.2% of Pollo Tropical restaurant sales, in the first quarter of 2021 (see non-GAAP reconciliation table below).
First Quarter 2022 Comparable Restaurant Sales
|
Fiscal January |
Fiscal February |
Fiscal March |
First Quarter 2022 |
Fiscal April |
2022 vs. 2021 |
|
|
|
|
|
- First quarter 2022 comparable restaurant sales vs 2021 were negatively impacted by remodels and refreshes that temporarily closed dine-in and counter take-out operations. We estimate that these temporary dine-in closures negatively impacted comparable restaurant sales by approximately 40 basis points in the first quarter of 2022.
- First quarter 2022 comparable restaurant sales benefited from the timing of the Easter holiday. After adjusting for the impact of the holiday timing, first quarter 2022 comparable sales would have been approximately 30 basis points lower.
Cash and Liquidity
Excluding
First Quarter 2022 Pollo Tropical Results
Total Pollo Tropical restaurant sales increased
|
|
Comparable Restaurant Sales Mix by Channel - Pollo Tropical |
||||||||||
Channel |
|
First Quarter 2022 |
|
% of Total |
|
First Quarter 2021 |
|
% of Total |
||||
($ in thousands) |
|
|
|
|
|
|
|
|
||||
Counter(1) |
|
$ |
28,079 |
|
30 |
% |
|
$ |
22,808 |
|
26 |
% |
Drive-thru |
|
|
51,573 |
|
54 |
% |
|
|
52,273 |
|
60 |
% |
Delivery |
|
|
10,434 |
|
11 |
% |
|
|
8,857 |
|
10 |
% |
Online |
|
|
3,381 |
|
4 |
% |
|
|
2,927 |
|
3 |
% |
Catering |
|
|
1,040 |
|
1 |
% |
|
|
668 |
|
1 |
% |
Total |
|
$ |
94,507 |
|
100 |
% |
|
$ |
87,533 |
|
100 |
% |
(1) Counter sales include dine-in and counter take-out sales, which represented |
||||||||||||
Consolidated Adjusted EBITDA (a non-GAAP financial measure) decreased to
Pricing action has been taken to offset labor, food and operating cost increases. In order to maintain value perceptions with our customers, we implemented a phased approach to menu price increases and took lower pricing increases on items purchased by value-conscious customers including our "
Restaurant-level Adjusted EBITDA (a non-GAAP financial measure) as a percentage of restaurant sales decreased, with first quarter Restaurant-level Adjusted EBITDA as a percentage of restaurant sales of
General and Administrative expenses were
Comparable Restaurant Average Weekly Sales - Pollo Tropical |
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|
|
|
|
Period |
January |
February |
March |
2022 |
|
|
|
2021 |
|
|
|
Refresh and Remodel Status and Results
We are taking a disciplined approach to testing upgraded/updated restaurant design elements and operating platform improvements as we refurbish existing units. We developed the new unit design and operational improvements based on consumer research and engineering studies from a leading restaurant engineering firm, and we surveyed customers at the first remodel on the design and received very positive customer feedback. We are targeting completion of 20 to 30 refresh/remodels in 2022. Seven remodel/refreshes were completed in the first quarter of 2022 and 15 in total have been completed since 2021,
We are implementing two levels of investment and scope:
-
Refreshes include updated exterior colors and attractive design elements and interior upgrades including more attractive and updated colors, new dining room furniture, bathrooms, limited patio upgrades and other customer facing upgrades. Targeted average investment for refreshes is expected to average approximately
$275,000 -
Remodels include updated exterior colors and attractive design elements and interior upgrades including updated colors, more comprehensive interior updates including new dining room furniture, kitchen retrofits, more extensive consumer facing dining room updates, and more extensive patio upgrades. Targeted average investment for remodels is expected to average approximately
$560,000
Returns on lower cost refreshes are generating an estimated
Restaurant Portfolio
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About
Forward Looking Statements
Certain statements contained in this news release and in our public disclosures, whether written, oral or otherwise made, relating to future events or future performance, including any discussion, express or implied regarding our anticipated growth, plans, objectives and the impact of our initiatives, including our efforts to reduce general and administrative expenses, our investments in strategic and sales building initiatives, including those relating to operations improvements, digital infrastructure supporting ordering and online sales, and drive thru improvements on future sales, margins, earnings and liquidity, contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are often identified by the words "may," "might," "believes," "thinks," "anticipates," "plans," "positioned," "target," "continue," "expects," "look to," "intends" and other similar expressions, whether in the negative or the affirmative, that are not statements of historical fact. These forward-looking statements are not guarantees of future performance and involve certain risks, uncertainties, and assumptions that are difficult to predict, and you should not place undue reliance on our forward-looking statements. Our actual results and timing of certain events could differ materially from those anticipated in these forward-looking statements as a result of certain factors, including, but not limited to, those discussed from time to time in our reports filed with the
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED (In thousands, except share and per share data) (Unaudited) |
||||||||
|
Three Months Ended (a) |
|||||||
|
|
|
|
|||||
Revenues: |
|
|
|
|||||
Restaurant sales |
$ |
95,200 |
|
|
$ |
87,840 |
|
|
Franchise royalty revenues and fees |
|
409 |
|
|
|
375 |
|
|
Total revenues |
|
95,609 |
|
|
|
88,215 |
|
|
Costs and expenses: |
|
|
|
|||||
Cost of sales |
|
30,747 |
|
|
|
27,301 |
|
|
Restaurant wages and related expenses (b) |
|
23,574 |
|
|
|
20,339 |
|
|
Restaurant rent expense |
|
6,027 |
|
|
|
5,877 |
|
|
Other restaurant operating expenses |
|
16,650 |
|
|
|
13,305 |
|
|
Advertising expense |
|
2,864 |
|
|
|
2,375 |
|
|
General and administrative expenses (b)(c) |
|
12,342 |
|
|
|
10,666 |
|
|
Depreciation and amortization |
|
5,114 |
|
|
|
5,088 |
|
|
Impairment and other lease charges (recoveries) (d) |
|
(702 |
) |
|
|
(52 |
) |
|
Closed restaurant rent, net of sublease income (e) |
|
380 |
|
|
|
750 |
|
|
Other expense (income), net (f) |
|
51 |
|
|
|
123 |
|
|
Total operating expenses |
|
97,047 |
|
|
|
85,772 |
|
|
Income (loss) from operations |
|
(1,438 |
) |
|
|
2,443 |
|
|
Interest expense |
|
85 |
|
|
|
61 |
|
|
Income (loss) from continuing operations before income taxes |
|
(1,523 |
) |
|
|
2,382 |
|
|
Provision for (benefit from) income taxes (g) |
|
(222 |
) |
|
|
3,077 |
|
|
Loss from continuing operations |
|
(1,301 |
) |
|
|
(695 |
) |
|
Loss from discontinued operations, net of tax |
|
(55 |
) |
|
|
(1,394 |
) |
|
Net loss |
|
(1,356 |
) |
|
|
(2,089 |
) |
|
Earnings (loss) per common share: |
|
|
|
|||||
Continuing operations – basic |
$ |
(0.05 |
) |
|
$ |
(0.03 |
) |
|
Discontinued operations – basic |
|
— |
|
|
|
(0.05 |
) |
|
Basic |
|
(0.05 |
) |
|
|
(0.08 |
) |
|
|
|
|
|
|||||
Continuing operations – diluted |
|
(0.05 |
) |
|
|
(0.03 |
) |
|
Discontinued operations – diluted |
|
— |
|
|
|
(0.05 |
) |
|
Diluted |
|
(0.05 |
) |
|
|
(0.08 |
) |
|
Weighted average common shares outstanding: |
|
|
|
|||||
Basic |
|
24,832,541 |
|
|
|
25,324,213 |
|
|
Diluted |
|
24,832,541 |
|
|
|
25,324,213 |
|
|
| (a) |
The Company uses a 52- or 53-week fiscal year that ends on the Sunday closest to |
|
| (b) |
Restaurant wages and related expenses include stock-based compensation of |
|
| (c) | See notes (f), (g) and (h) to the reconciliation of net income (loss) to adjusted net income (loss) in the tables titled "Supplemental Non-GAAP Information." |
|
| (d) | See note (c) to the reconciliation of net income (loss) to adjusted net income (loss) in the tables titled "Supplemental Non-GAAP Information." |
|
| (e) | See note (d) to the reconciliation of net income (loss) to adjusted net income (loss) in the tables titled "Supplemental Non-GAAP Information." |
|
| (f) | See note (e) to the reconciliation of net income (loss) to adjusted net income (loss) in the tables titled "Supplemental Non-GAAP Information." |
|
| (g) | See notes (a) and (b) to the reconciliation of net income (loss) to adjusted net income (loss) in the tables titled "Supplemental Non-GAAP Information." |
CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) |
||||||
|
|
|
|
|||
|
|
|
|
|||
Assets |
|
|
|
|||
Cash |
$ |
37,146 |
|
$ |
36,797 |
|
Other current assets |
|
23,734 |
|
|
22,245 |
|
Property and equipment, net |
|
89,534 |
|
|
89,884 |
|
Operating lease right-of-use assets |
|
149,047 |
|
|
154,127 |
|
|
|
56,307 |
|
|
56,307 |
|
Other assets |
|
6,860 |
|
|
7,753 |
|
Total assets |
$ |
362,628 |
|
$ |
367,113 |
|
|
|
|
|
|||
Liabilities and Stockholders' Equity |
|
|
|
|||
Current portion of long-term debt |
$ |
66 |
|
$ |
63 |
|
Other current liabilities |
|
42,773 |
|
|
40,479 |
|
Long-term debt, net of current portion |
|
418 |
|
|
438 |
|
Operating lease liabilities |
|
157,497 |
|
|
163,270 |
|
Deferred tax liabilities |
|
236 |
|
|
229 |
|
Other non-current liabilities |
|
7,738 |
|
|
7,763 |
|
Total liabilities |
|
208,728 |
|
|
212,242 |
|
Stockholders' equity |
|
153,900 |
|
|
154,871 |
|
Total liabilities and stockholders' equity |
$ |
362,628 |
|
$ |
367,113 |
|
Supplemental Information The following table sets forth certain unaudited supplemental financial and other data for the periods indicated (In thousands, except percentages): |
||||||||
|
(Unaudited) |
|||||||
|
Three Months Ended |
|||||||
|
|
|
|
|||||
Revenues: |
|
|
|
|||||
Pollo Tropical |
$ |
95,609 |
|
|
$ |
88,215 |
|
|
|
|
|
|
|||||
Change in comparable restaurant sales (a): |
|
|
|
|||||
Pollo Tropical |
|
8.0 |
% |
|
|
4.3 |
% |
|
|
|
|
|
|||||
Average sales per Company-owned restaurant: |
|
|
|
|||||
Pollo Tropical |
|
|
|
|||||
Comparable restaurants (b) |
$ |
691 |
|
|
$ |
642 |
|
|
Non-comparable restaurants (c) |
|
581 |
|
|
|
342 |
|
|
|
|
690 |
|
|
|
637 |
|
|
|
|
|
|
|||||
|
|
|
|
|||||
Income (loss) from continuing operations before income taxes |
$ |
(1,523 |
) |
|
$ |
2,382 |
|
|
|
|
|
|
|||||
Consolidated Adjusted EBITDA |
$ |
5,292 |
|
|
$ |
9,678 |
|
|
|
|
|
|
|||||
Restaurant-level Adjusted EBITDA (e): |
$ |
15,345 |
|
|
$ |
18,659 |
|
|
| (a) | Restaurants are included in comparable restaurant sales after they have been open for 18 months or longer. Restaurants are excluded from comparable restaurant sales for any fiscal month in which the restaurant was closed for more than five days. Comparable restaurant sales are compared to the same period in the prior year. |
|
| (b) | Comparable restaurants are restaurants that have been open for 18 months or longer. Average sales for comparable Company-owned restaurants are derived by dividing comparable restaurant sales for such period by the average number of comparable restaurants for such period. |
|
| (c) | Non-comparable restaurants are restaurants that have been open for less than 18 months, or that were temporarily closed during the period. Average sales for new Company-owned restaurants are derived by dividing new restaurant sales for such period by the average number of new restaurants for such period. |
|
| (d) | Average sales for total Company-owned restaurants are derived by dividing restaurant sales for such period by the average number of open restaurants for such period. |
|
| (e) | Restaurant-level Adjusted EBITDA is a non-GAAP financial measure. Please see the reconciliation from net income (loss) to Restaurant-level Adjusted EBITDA in the table titled "Supplemental Non-GAAP Information." |
Supplemental Information The following table sets forth certain unaudited supplemental data for the periods indicated: |
||||
|
Three Months Ended |
|||
|
|
|
|
|
|
|
|
|
|
Company-owned restaurant openings: |
|
|
|
|
Pollo Tropical |
— |
|
— |
|
|
|
|
|
|
Company-owned restaurant closings: |
|
|
|
|
Pollo Tropical |
— |
|
— |
|
|
|
|
|
|
Number of Company-owned restaurants: |
|
|
|
|
Pollo Tropical |
138 |
|
138 |
|
|
— |
|
143 |
|
|
138 |
|
281 |
|
|
|
|
|
|
Number of franchised restaurants: |
|
|
|
|
Pollo Tropical |
31 |
|
29 |
|
|
— |
|
6 |
|
Total franchised restaurants |
31 |
|
35 |
|
|
|
|
|
|
Total number of restaurants: |
|
|
|
|
Pollo Tropical |
169 |
|
167 |
|
|
— |
|
149 |
|
Total restaurants |
169 |
|
316 |
|
Supplemental Information The following table sets forth certain unaudited supplemental financial and other data for the periods indicated (In thousands, except percentages): |
||||||||||||||
|
Three Months Ended |
|||||||||||||
|
|
|
|
|||||||||||
|
|
(a) |
|
|
(a) |
|||||||||
Restaurant sales |
$ |
95,200 |
|
|
|
$ |
87,840 |
|
|
|||||
Cost of sales |
|
30,747 |
|
32.3 |
% |
|
|
27,301 |
|
31.1 |
% |
|||
Restaurant wages and related expenses |
|
23,574 |
|
24.8 |
% |
|
|
20,339 |
|
23.2 |
% |
|||
Restaurant rent expense |
|
6,027 |
|
6.3 |
% |
|
|
5,877 |
|
6.7 |
% |
|||
Other restaurant operating expenses |
|
16,650 |
|
17.5 |
% |
|
|
13,305 |
|
15.1 |
% |
|||
Advertising expense |
|
2,864 |
|
3.0 |
% |
|
|
2,375 |
|
2.7 |
% |
|||
Depreciation and amortization |
|
5,114 |
|
5.4 |
% |
|
|
5,088 |
|
5.8 |
% |
|||
Impairment and other lease charges (recoveries) |
|
(702 |
) |
(0.7 |
)% |
|
|
(52 |
) |
(0.1 |
)% |
|||
Closed restaurant rent expense, net of sublease income |
|
380 |
|
0.4 |
% |
|
|
750 |
|
0.9 |
% |
|||
(a) Percent of restaurant sales. |
||||||||||||||
Supplemental Non-GAAP Information
The following table sets forth certain unaudited supplemental financial data for the periods indicated
(In thousands):
Consolidated Adjusted EBITDA and margin and Restaurant-level Adjusted EBITDA and margin are non-GAAP financial measures. Consolidated Adjusted EBITDA is defined as earnings (loss) before interest expense, income taxes, depreciation and amortization, impairment and other lease charges (recoveries), goodwill impairment, closed restaurant rent expense, net of sublease income, stock-based compensation expense, other expense (income), net, and certain significant items that are related to strategic changes and/or are not related to the ongoing operation of our restaurants as set forth in the reconciliation table below. Restaurant-level Adjusted EBITDA is defined as Consolidated Adjusted EBITDA excluding franchise royalty revenues and fees, pre-opening costs and general and administrative expenses (including corporate-level general and administrative expenses).
Consolidated Adjusted EBITDA is the primary measure of profit or loss used by our chief operating decision maker for purposes of assessing performance. In addition, management believes that Consolidated Adjusted EBITDA and Restaurant-level Adjusted EBITDA, when viewed with our results of operations calculated in accordance with GAAP and our reconciliation of net income (loss) to Consolidated Adjusted EBITDA and Restaurant-level Adjusted EBITDA (i) provide useful information about our operating performance and period-over-period changes, (ii) provide additional information that is useful for evaluating the operating performance of our business, and (iii) permit investors to gain an understanding of the factors and trends affecting our ongoing earnings, from which capital investments are made and debt is serviced. However, such measures are not measures of financial performance or liquidity under GAAP and, accordingly, should not be considered as alternatives to net income or cash flow from operating activities as indicators of operating performance or liquidity. Also, these measures may not be comparable to similarly titled captions of other companies.
|
|
Three Months Ended |
||||||
|
|
|
|
|
||||
|
|
|
|
|
||||
Net loss |
|
$ |
(1,356 |
) |
|
$ |
(2,089 |
) |
Loss from discontinued operations, net of tax |
|
|
55 |
|
|
|
1,394 |
|
Provision for (benefit from) income taxes |
|
|
(222 |
) |
|
|
3,077 |
|
Income (loss) from continuing operations before taxes |
|
|
(1,523 |
) |
|
|
2,382 |
|
Add: |
|
|
|
|
||||
Non-general and administrative adjustments: |
|
|
|
|
||||
Depreciation and amortization |
|
|
5,114 |
|
|
|
5,088 |
|
Impairment and other lease charges (recoveries) |
|
|
(702 |
) |
|
|
(52 |
) |
Interest expense |
|
|
85 |
|
|
|
61 |
|
Closed restaurant rent expense, net of sublease income |
|
|
380 |
|
|
|
750 |
|
Other expense (income), net |
|
|
51 |
|
|
|
123 |
|
Stock-based compensation expense |
|
|
7 |
|
|
|
16 |
|
Total non-general and administrative adjustments |
|
|
4,935 |
|
|
|
5,986 |
|
General and administrative adjustments: |
|
|
|
|
||||
Stock-based compensation expense |
|
|
623 |
|
|
|
994 |
|
Non-recurring professional fees |
|
|
705 |
|
|
|
— |
|
G&A efficiency initiatives |
|
|
261 |
|
|
|
— |
|
Digital costs |
|
|
291 |
|
|
|
316 |
|
Total general and administrative adjustments |
|
|
1,880 |
|
|
|
1,310 |
|
Consolidated Adjusted EBITDA |
|
$ |
5,292 |
|
|
$ |
9,678 |
|
Consolidated Adjusted EBITDA as a percentage of total revenues |
|
|
5.5 |
% |
|
|
11.0 |
% |
Restaurant-level adjustments: |
|
|
|
|
||||
Add: Other general and administrative expense(a) |
|
$ |
10,462 |
|
|
$ |
9,356 |
|
Less: Franchise royalty revenue and fees |
|
|
409 |
|
|
|
375 |
|
Restaurant-level Adjusted EBITDA |
|
$ |
15,345 |
|
|
$ |
18,659 |
|
Restaurant-level Adjusted EBITDA as a percentage of restaurant sales |
|
|
16.1 |
% |
|
|
21.2 |
% |
(a) Excludes general and administrative adjustments above. |
||||||||
Supplemental Non-GAAP Information
The following table sets forth certain unaudited supplemental financial data for the periods indicated
(In thousands of dollars, except per share amounts):
Adjusted net income and related adjusted diluted earnings per share are non-GAAP financial measures. Adjusted net income is defined as net income (loss) before discontinued operations, impairment and other lease charges (recoveries), goodwill impairment, closed restaurant rent expense, net of sublease income, other expense (income), net, and other significant items that are related to strategic changes and/or are not related to the ongoing operation of our restaurants. Management believes that adjusted net income and related adjusted earnings per diluted share, when viewed with our results of operations calculated in accordance with GAAP (i) provide useful information about our operating performance and period-over-period growth, (ii) provide additional information that is useful for evaluating the operating performance of our business, and (iii) permit investors to gain an understanding of the factors and trends affecting our ongoing earnings, from which capital investments are made and debt is serviced. However, such measures are not measures of financial performance or liquidity under GAAP and, accordingly should not be considered as alternatives to net income or net income per share as indicators of operating performance or liquidity. Also, these measures may not be comparable to similarly titled captions of other companies.
|
|
(Unaudited) |
||||||||||||||||||||||||||||||
|
|
Three Months Ended |
||||||||||||||||||||||||||||||
|
|
|
|
|
||||||||||||||||||||||||||||
|
|
Loss Before Income Taxes |
|
Benefit From Income Taxes (a) |
|
Net Loss |
|
Diluted EPS |
|
Income Before Income Taxes |
|
Provision For Income Taxes (a) |
|
Net Income (Loss) |
|
Diluted EPS |
||||||||||||||||
Reported - GAAP Net income (loss) |
|
|
|
|
|
$ |
(1,356 |
) |
|
$ |
(0.05 |
) |
|
|
|
|
|
$ |
(2,089 |
) |
|
$ |
(0.08 |
) |
||||||||
Loss (income) from discontinued operations, net of tax |
|
|
|
|
|
|
55 |
|
|
|
— |
|
|
|
|
|
|
|
1,394 |
|
|
|
0.05 |
|
||||||||
Income (loss) from continuing operations |
|
$ |
(1,523 |
) |
|
$ |
(222 |
) |
|
$ |
(1,301 |
) |
|
$ |
(0.05 |
) |
|
$ |
2,382 |
|
|
$ |
3,077 |
|
|
$ |
(695 |
) |
|
$ |
(0.03 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Non-general and administrative expense adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Income tax due to tax law change (a) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(563 |
) |
|
|
563 |
|
|
|
0.02 |
|
Deferred tax asset valuation allowance (b) |
|
|
— |
|
|
|
(120 |
) |
|
|
120 |
|
|
|
— |
|
|
|
— |
|
|
|
(631 |
) |
|
|
631 |
|
|
|
0.02 |
|
Impairment and other lease charges (recoveries) (c) |
|
|
(702 |
) |
|
|
(175 |
) |
|
|
(527 |
) |
|
|
(0.02 |
) |
|
|
(52 |
) |
|
|
(13 |
) |
|
|
(39 |
) |
|
|
— |
|
Closed restaurant rent expense, net of sublease income (d) |
|
|
380 |
|
|
|
95 |
|
|
|
285 |
|
|
|
0.01 |
|
|
|
750 |
|
|
|
187 |
|
|
|
563 |
|
|
|
0.02 |
|
Other expense (income), net (e) |
|
|
51 |
|
|
|
13 |
|
|
|
38 |
|
|
|
— |
|
|
|
123 |
|
|
|
31 |
|
|
|
92 |
|
|
|
0.01 |
|
Total non-general and administrative expense |
|
|
(271 |
) |
|
|
(187 |
) |
|
|
(84 |
) |
|
|
(0.01 |
) |
|
|
821 |
|
|
|
(989 |
) |
|
|
1,810 |
|
|
|
0.07 |
|
General and administrative expense adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Non-recurring professional fees (f) |
|
|
705 |
|
|
|
176 |
|
|
|
529 |
|
|
|
0.02 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
G&A efficiency initiatives (g) |
|
|
261 |
|
|
|
65 |
|
|
|
196 |
|
|
|
0.01 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Digital costs (h) |
|
|
291 |
|
|
|
73 |
|
|
|
218 |
|
|
|
0.01 |
|
|
|
316 |
|
|
|
78 |
|
|
|
238 |
|
|
|
0.01 |
|
Total general and administrative expense |
|
|
1,257 |
|
|
|
314 |
|
|
|
943 |
|
|
|
0.04 |
|
|
|
316 |
|
|
|
78 |
|
|
|
238 |
|
|
|
0.01 |
|
Adjusted - Non-GAAP |
|
$ |
(537 |
) |
|
$ |
(95 |
) |
|
$ |
(442 |
) |
|
$ |
(0.02 |
) |
|
$ |
3,519 |
|
|
$ |
2,166 |
|
|
$ |
1,353 |
|
|
$ |
0.05 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
| (a) |
The provision for (benefit from) income taxes related to the adjustments was calculated using the Company's combined federal statutory and estimated state rate of |
|
| (b) |
We recorded adjustments totaling |
|
| (c) |
Impairment and other lease charges (recoveries) for the three months ended |
|
| (d) |
Closed restaurant rent expense, net of sublease income, for the three months ended |
|
| (e) |
Other expense (income), net, for the three months ended |
|
| (f) | Non-recurring professional fees consist of costs related to growth initiatives. |
|
| (g) | G&A efficiency initiatives consist of non-recurring retention bonus costs. |
|
| (h) |
Digital costs for the three months ended |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220512005975/en/
Investor Relations:
203-682-8253
investors@FRGI.com
Source:
FAQ
What are the Q1 2022 financial results for Fiesta Restaurant Group (FRGI)?
How did comparable restaurant sales perform in Q1 2022 for FRGI?
What challenges did Fiesta Restaurant Group (FRGI) face in Q1 2022?
What is the trend for Restaurant-level Adjusted EBITDA margins for FRGI?
What initiatives is FRGI focusing on to drive growth?
