Greenwood Village / CO. (rrgb / sec) Red Robin Gourmet Burgers Inc., a full-service restaurant chain serving an innovative selection of high-quality gourmet burgers in a family-friendly atmosphere, confirmed it has received an unsolicited conditional proposal from Vintage Capital Management LLC to acquire all of the outstanding common shares of Red Robin for USD 40.00 per share in cash.
Red Robin’s Board of Directors and management team are committed to acting in the best interests of the Company and all shareholders. Consistent with its fiduciary duties and in consultation with its independent legal and financial advisors, the Red Robin Board will carefully review and consider the proposal to determine the course of action it believes is in the best interests of the Company’s shareholders.
Evercore is serving as financial advisor to Red Robin and Paul, Weiss, Rifkind, Wharton + Garrison LLP is serving as its legal counsel.
Addendum: Red Robin’s Selected Financial Data
The table below contains selected consolidated financial and operating data only for a quick overview. The statement of operations and comprehensive income (loss), cash flow, and balance sheet data for each fiscal year has been derived from Red Robin’s consolidated financial statements. Usually you should read this information together with «Management’s Discussion and Analysis of Financial Condition and Results of Operations», consolidated financial statements and other related notes.
Fiscal Year ended: | 2018-12-30 | 2017-12-31 | 2016-12-25 | 2015-12-27 | 2014-12-28 | |||||||||||||||
(amounts in thousands, except per share data) | (52 Weeks) | (53 Weeks) | (52 Weeks) | (52 Weeks) | (52 Weeks) | |||||||||||||||
Statement of Operations Data: | ||||||||||||||||||||
Revenue: | ||||||||||||||||||||
Restaurant revenue | USD | 1,316,209 | USD | 1,365,060 | USD | 1,280,669 | USD | 1,238,898 | USD | 1,129,135 | ||||||||||
Total revenues(1) | 1,338,563 | 1,387,566 | 1,303,187 | 1,265,215 | 1,153,988 | |||||||||||||||
Total costs and expenses(2)(3)(4)(5)(6) | 1,349,048 | 1,348,534 | 1,291,617 | 1,198,170 | 1,109,304 | |||||||||||||||
Income (loss) from operations | (10,485 | ) | 39,032 | 11,570 | 67,045 | 44,684 | ||||||||||||||
Net income (loss) | (6,419 | ) | 30,019 | 11,725 | 47,704 | 32,561 | ||||||||||||||
Earnings per share: | ||||||||||||||||||||
Basic | USD | (0.49 | ) | USD | 2.33 | USD | 0.88 | USD | 3.40 | USD | 2.29 | |||||||||
Diluted | USD | (0.49 | ) | USD | 2.31 | USD | 0.87 | USD | 3.36 | USD | 2.25 | |||||||||
Shares used in computing earnings per share: | ||||||||||||||||||||
Basic | 12,976 | 12,899 | 13,332 | 14,042 | 14,237 | |||||||||||||||
Diluted | 12,976 | 12,998 | 13,462 | 14,216 | 14,447 | |||||||||||||||
Balance Sheet Data: | ||||||||||||||||||||
Cash and cash equivalents | USD | 18,569 | USD | 17,714 | USD | 11,732 | USD | 22,705 | USD | 22,408 | ||||||||||
Total assets | 843,941 | 910,615 | 918,545 | 839,979 | 735,889 | |||||||||||||||
Long-term debt, including current portion | 203,575 | 277,313 | 347,838 | 210,847 | 147,896 | |||||||||||||||
Total stockholders’ equity | 382,805 | 387,435 | 348,053 | 374,311 | 359,771 | |||||||||||||||
Cash Flow Data: | ||||||||||||||||||||
Net cash provided by operating activities | USD | 126,295 | USD | 156,607 | USD | 98,957 | USD | 140,923 | USD | 123,581 | ||||||||||
Net cash used in investing activities | (49,836 | ) | (83,290 | ) | (199,379 | ) | (169,111 | ) | (155,278 | ) | ||||||||||
Net cash provided by (used in) financing activities | (74,298 | ) | (67,924 | ) | 89,333 | 28,767 | 37,051 | |||||||||||||
Selected Operating Data: | ||||||||||||||||||||
Net sales per square foot in Company-owned restaurants | USD | 441 | USD | 461 | USD | 449 | USD | 466 | USD | 462 | ||||||||||
Total operating weeks(7) | 25,165 | 25,038 | 23,799 | 22,006 | 20,070 | |||||||||||||||
Company-owned restaurants open at end of period | 484 | 480 | 465 | 439 | 415 | |||||||||||||||
Franchised restaurants open at end of period | 89 | 86 | 86 | 99 | 99 | |||||||||||||||
Comparable restaurant net sales (decrease) increase(8)(9)
|
(2.6 | )% | 0.7 | % | (3.3 | )% | 2.1 | % | 3.1 | % |
- Franchise and other revenue for 2015 and 2014 were previously reported as USD 18.7 million and USD 17.0 million with adjustments of USD 7.6 million and USD 7.9 million, resulting in an adjusted amount of USD 26.3 million and USD 24.9 million. Please see Note 2, Revenue for a further discussion of reclassifications recorded in connection with Topic 606.
- 2018 includes pre-tax non-cash asset impairment charges of USD 28.1 million related to the impairment of 41 restaurants, 19 of which had immaterial impairments, USD 4.8 million related to litigation costs, and USD 2.9 million related to the disposal of smallwares.
- 2017 includes pre-tax non-cash asset impairment charges of USD 6.9 million related to the impairment of 13 restaurants.
- 2016 includes pre-tax non-cash asset impairment charges of USD 24.4 million related to the impairment of 19 restaurants, USD 2.5 million related to software impairment, and USD 0.8 million related to the relocation of a restaurant. 2016 also includes pre-tax costs of USD 6.7 million related to the closure of nine Red Robin Burger Works restaurants, USD 3.9 million related to litigation costs, and USD 0.7 million related to acquiring 13 franchised restaurants.
- 2015 includes pre-tax non-cash asset impairment charges of USD 0.6 million related to the impairment of two restaurants.
- 2014 includes pre-tax costs of USD 1.8 million related to acquiring 36 franchised restaurants. 2014 also includes a pre-tax non-cash asset impairment charge of USD 8.8 million, of which USD 7.6 million related to the impairment of in-development software, and USD 1.2 million related to the impairment of three restaurants.
- Total operating weeks represent the number of weeks that the Company-owned restaurants were open during the reporting period.
- Please see «Management’s Discussion and Analysis of Financial Condition and Results of Operations-Revenues» for a further discussion of our comparable restaurant designation.
- Comparable restaurant sales decrease and average annual comparable restaurant sales volumes for 2018 were calculated on a 52-week basis by adjusting fiscal 2017 to exclude the first week of 2017. Comparable restaurant sales decrease and average annual comparable restaurant sales volumes for 2017 were calculated on a 53-week basis by adjusting fiscal year 2016 as if there were 53 weeks.
Red Robin’s Restaurant Data
The following table details data pertaining to the number of Company-owned and franchised restaurants for the fiscal years 2018, 2017, and 2016.
2018 | 2017 | 2016 | |||||||
Company-owned: | |||||||||
Beginning of period | 480 | 465 | 439 | ||||||
Opened during the period | 8 | 18 | 26 | ||||||
Acquired from franchisee | – | – | 13 | ||||||
Closed during the period | (4 | ) | (3 | ) | (13 | ) | |||
End of period | 484 | 480 | 465 | ||||||
Franchised: | |||||||||
Beginning of period | 86 | 86 | 99 | ||||||
Opened during the period | 3 | 1 | – | ||||||
Sold or closed during the period | – | (1 | ) | (13 | ) | ||||
End of period | 89 | 86 | 86 | ||||||
Total number of restaurants | 573 | 566 | 551 |