Noodles & Company (Nasdaq: NDLS) today announced financial
results for its first quarter ended April 4, 2023.
Key highlights for the
first quarter of
2023 versus the
first quarter of
2022 include:
- Total revenue increased 12.0% to
$126.1 million from $112.6 million in the first quarter of
2022.
- Comparable restaurant sales
increased 6.4% system-wide, comprised of a 6.9% increase at
company-owned restaurants and a 4.1% increase at franchise
restaurants.
- Company Average Unit Volumes
(“AUV”) of $1.34 million, a 7.5% increase versus the first quarter
of 2022.
- Net loss was $3.1 million, or $0.07
loss per diluted share, compared to $6.4 million, or $0.14 loss per
diluted share, in the first quarter of 2022.
- Operating margin was (1.8)%
compared to (5.4)% in the first quarter of 2022.
- Restaurant contribution margin(1)
was 13.7% compared to 9.7% in the first quarter of 2022.
- Adjusted EBITDA(1) was $7.0
million, an increase of $4.8 million compared to the first quarter
of 2022.
- Adjusted net loss(1) was $2.3
million, or a $0.05 loss per diluted share, compared to adjusted
net loss of $5.8 million, or $0.13 loss per diluted share, in the
first quarter of 2022.
- Three new company-owned restaurants
opened in the first quarter of 2023.
______________________________ |
|
(1) |
Restaurant contribution margin, EBITDA, adjusted EBITDA, and
adjusted net income (loss) are non-GAAP measures. Reconciliations
of operating income (loss) to restaurant contribution margin, net
income (loss) to EBITDA and adjusted EBITDA and net income (loss)
to adjusted net income (loss) are included in the accompanying
financial data. See “Non-GAAP Financial Measures.” |
|
|
|
“Noodles & Company’s strong results in the
first quarter reflected continued progress in our cost-savings
initiatives, a more favorable expense environment, and the ability
to leverage a double-digit revenue increase from both comparable
sales and new restaurant growth. Our first quarter included 400
basis points of restaurant level margin expansion versus prior year
and adjusted EBITDA of $7.0 million, an increase of $4.8 million,
which more than tripled from the prior year,” said Dave
Boennighausen, Chief Executive Officer of Noodles & Company.
“As we look to the balance of 2023, the Company is focused on
capitalizing on our improved margin profile to drive top line sales
through a disciplined approach towards value. We are continuing to
activate our rapidly growing Noodles Rewards program, in addition
to offering other value focused promotions such as the return of
our popular ‘7 for $7’ menu.”
Boennighausen concluded, “Margin expansion and
driving profitable sales growth remain our focus to deliver
significant improvement in adjusted EBITDA for 2023. Our results in
the first quarter were an important step towards this objective.
Additionally, we continue to make progress in overall restaurant
growth with the opening of three new restaurants this quarter and
the strengthening of our pipeline for 2023 and beyond.”
First Quarter 2023 Financial
Results
Total revenue increased $13.5 million in the
first quarter of 2023, or 12.0%, to $126.1 million, compared to
$112.6 million in the first quarter of 2022. This increase was
primarily due to sales growth in the comparable restaurant base, in
addition to a benefit from open restaurants that were temporarily
closed during a portion of the first quarter of 2022 due to the
Omicron variant. Revenue also benefited by an incremental $4.3
million from new restaurant openings since the beginning of the
first quarter of 2022, partially offset by a decline of $1.4
million due to restaurants closed or refranchised since the first
quarter of 2022.
In the first quarter of 2023, system-wide
comparable restaurant sales increased 6.4%, comprised of a 6.9%
increase at company-owned restaurants and a 4.1% increase at
franchise restaurants. Comparable restaurant sales reflect
continued momentum in our in-person channels in addition to price
increases in our core menu. Digital sales during the first quarter
accounted for 54.5% of total revenue. Company AUVs were $1.34
million and increased 7.5% over the first quarter of 2022.
Operating margin improved to (1.8)% in the first
quarter of 2023 from (5.4)% in the first quarter of 2022, primarily
due to decreased food costs and lower wage inflation.
Restaurant contribution margin increased to
13.7% in the first quarter of 2023, compared to 9.7% in the first
quarter of 2022. This increase was primarily due to overall lower
food and ingredient commodity pricing and labor efficiencies, in
addition to sales leverage.
Three company-owned restaurants opened during
the first quarter of 2023 and two company-owned restaurants closed.
One franchise restaurant closed during the quarter. There were 461
restaurants system-wide at the end of the first quarter 2023,
comprised of 369 company-owned restaurants and 92 franchise
restaurants.
For the first quarter of 2023, the Company
reported net loss of $3.1 million, or $0.07 loss per diluted share,
compared with net loss of $6.4 million in the first quarter of
2022, or $0.14 loss per diluted share. Loss from operations for the
first quarter of 2023 was $2.2 million, compared to loss from
operations of $6.1 million in the first quarter of 2022.
Adjusted net loss was $2.3 million, or $0.05
loss per diluted share, in the first quarter of 2023, compared to
adjusted net loss of $5.8 million, or $0.13 loss per diluted share,
in the first quarter of 2022. Adjusted EBITDA increased 218.2%, or
$4.8 million, to $7.0 million in the first quarter of 2023 compared
to the year-earlier period.
Liquidity Update:
As of April 4, 2023, the Company had $2.1
million of cash on hand and outstanding debt of $52.8 million. The
amount available for future borrowings under its revolving credit
facility was $69.3 million as of April 4, 2023.
Business Outlook:
Based upon management’s current assessment
following first quarter results, the Company is reiterating
guidance related to its 2023 performance. The following is expected
for the full year 2023:
- Restaurant level contribution
margins of 16.0% to 17.0%;
- Adjusted EBITDA of $45 million to
$50 million;
- Depreciation and amortization of
$25.5 million to $27.5 million;
- Disposal of assets of $3.0 million
to $3.5 million;
- Net interest expense of $4.0
million to $4.5 million;
- Stock-based compensation of $6.0
million to $7.0 million;
- Adjusted EPS of $0.10 to
$0.20;
- Approximately 7.5% new restaurant
growth system-wide, with a majority of openings being
company-owned; and
- Capital expenditures of $53 million
to $58 million in 2023.
Non-GAAP Financial Measures
The Company believes that a quantitative
reconciliation of certain of the Company’s non-GAAP financial
measures guidance to the most comparable financial measures
calculated and presented in accordance with GAAP cannot be made
available without unreasonable efforts. A reconciliation of
these certain non-GAAP financial measures would require the Company
to provide guidance for various reconciling items that are outside
of the Company’s control and cannot be reasonably predicted due to
the fact that these items could vary significantly from period to
period. A reconciliation of certain non-GAAP financial measures
would also require the Company to predict the timing and
likelihood of outcomes that determine future impairments and the
tax benefit thereof. None of these measures, nor their
probable significance, can be reliably quantified. The non-GAAP
financial measures noted above have limitations as analytical
financial measures, as discussed below in the section entitled
“Non-GAAP Financial Measures.” In addition, the guidance with
respect to non-GAAP financial measures is a forward-looking
statement, which by its nature involves risks and uncertainties
that could cause actual results to differ materially from the
Company’s forward-looking statement, as discussed below in the
section entitled “Forward-Looking Statements.”
Key Definitions
Average Unit Volumes —
represent the average annualized sales of all company-owned
restaurants for a given time period. AUVs are calculated by
dividing restaurant revenue by the number of operating days within
each time period and multiplying by the number of operating days we
have in a typical year. Based on this calculation, temporarily
closed restaurants are excluded from the definition of AUV, however
restaurants with temporarily reduced operating hours are included.
This measurement allows management to assess changes in consumer
traffic and per person spending patterns at our restaurants. In
addition to the factors that impact comparable restaurant sales,
AUVs can be further impacted by effective real estate site
selection and maturity and trends within new markets.
Comparable Restaurant Sales —
represents year-over-year sales comparisons for the comparable
restaurant base open for at least 18 full periods. This measure
highlights performance of existing restaurants, as the impact of
new restaurant openings is excluded. Changes in comparable
restaurant sales are generated by changes in traffic, which we
calculate as the number of entrées sold and changes in per-person
spend, calculated as sales divided by traffic. Restaurants that
were temporarily closed or operating at reduced hours remained in
comparable restaurant sales.
Restaurant Contribution and Restaurant
Contribution Margin — restaurant contribution represents
restaurant revenue less restaurant operating costs, which are costs
of sales, labor, occupancy and other restaurant operating items.
Restaurant contribution margin represents restaurant contribution
as a percentage of restaurant revenue. Restaurant contribution and
restaurant contribution margin are presented because they are
widely-used metrics within the restaurant industry to evaluate
restaurant-level productivity, efficiency and performance.
Management also uses restaurant contribution and restaurant
contribution margin as metrics to evaluate the profitability of
incremental sales at our restaurants, restaurant performance across
periods, and restaurant financial performance compared with
competitors. See “Non-GAAP Financial Measures” below.
EBITDA and Adjusted EBITDA —
EBITDA represents net income (loss) before interest expense, net,
provision (benefit) for income taxes and depreciation and
amortization. Adjusted EBITDA represents net income (loss) before
interest expense, net, provision (benefit) for income taxes,
depreciation and amortization, restaurant impairments, closure
costs and asset disposals, fees, costs related to corporate matters
and stock-based compensation. EBITDA and Adjusted EBITDA are
presented because: (i) management believes they are useful measures
for investors to assess the operating performance of our business
without the effect of non-cash charges such as depreciation and
amortization expenses and restaurant impairments, asset disposals
and closure costs, and (ii) management uses them internally as a
benchmark for certain of our cash incentive plans and to evaluate
our operating performance or compare performance to that of
competitors. See “Non-GAAP Financial Measures” below.
Adjusted Net Income (Loss) —
represents net income (loss) plus various adjustments and the tax
effects of such adjustments. Adjusted net income (loss) is
presented because management believes it helps convey supplemental
information to investors regarding the Company’s performance,
excluding the impact of special items that affect the comparability
of results in past quarters and expected results in future
quarters. See “Non-GAAP Financial Measures” below.
Conference Call
Noodles & Company will host a conference
call to discuss its first quarter financial results on Wednesday,
May 10, 2023 at 4:30 PM Eastern Time. The conference call can
be accessed live by registering here. While not required, it is
recommended that you join 10 minutes prior to the event start time.
The conference call will also be webcast live from the Company’s
corporate website at investor.noodles.com, under the “Events &
Presentations” page. An archive of the webcast will be available at
the same location on the corporate website shortly after the call
has concluded.
Non-GAAP Financial Measures
To supplement its condensed consolidated
financial statements, which are prepared and presented in
accordance with accounting principles generally accepted in the
United States of America (“GAAP”), the Company uses the following
non-GAAP financial measures: EBITDA, adjusted EBITDA, adjusted net
income (loss), adjusted earnings (loss) per share, restaurant
contribution and restaurant contribution margin (collectively, the
“non-GAAP financial measures”). The presentation of this financial
information is not intended to be considered in isolation or as a
substitute for, or to be superior to, the financial information
prepared and presented in accordance with GAAP. 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.
Adjusted net income (loss) is presented because management believes
it helps convey supplemental information to investors regarding the
Company’s operating performance excluding the impact of restaurant
impairment and closure costs and costs related to corporate
transactions and the tax effect of such adjustments. However, the
Company recognizes that non-GAAP financial measures have
limitations as analytical financial measures. The Company
compensates for these limitations by relying primarily on its GAAP
results and using non-GAAP metrics only supplementally. There are
numerous of these limitations, including that: adjusted EBITDA does
not reflect the Company’s capital expenditures or future
requirements for capital expenditures; adjusted EBITDA does not
reflect interest expense or the cash requirements necessary to
service interest or principal payments, associated with our
indebtedness; adjusted EBITDA does not reflect depreciation and
amortization, which are non-cash charges, although the assets being
depreciated and amortized will likely have to be replaced in the
future, and do not reflect cash requirements for such replacements;
adjusted EBITDA does not reflect the cost of stock-based
compensation; adjusted EBITDA does not reflect changes in, or cash
requirements for, our working capital needs; adjusted net income
(loss) does not reflect cash expenditures, or future requirements,
for lease termination payments and certain other expenses
associated with reduced new restaurant development; and restaurant
contribution and restaurant contribution margin are not reflective
of the underlying performance of our business because
corporate-level expenses are excluded from these measures. When
analyzing the Company’s operating performance, investors should not
consider non-GAAP financial metrics in isolation or as substitutes
for net income (loss) or cash flow from operations, or other
statement of operations or cash flow statement data prepared in
accordance with GAAP. The non-GAAP financial measures used by the
Company in this press release may be different from the measures
used by other companies. To the extent that the Company provides
guidance, it does so only on a non-GAAP basis and does not provide
reconciliations of such forward-looking non-GAAP measures to GAAP.
Specifically, forecasted adjusted EBITDA, adjusted earnings per
share, and contribution margin are forward-looking non-GAAP
measures. Quantitative reconciling information for these measures
is unavailable without unreasonable efforts. The corresponding GAAP
measures (net income, earnings per share, and income (loss) from
operations, respectively) are not accessible on a forward-looking
basis and such information is likely to be significant to an
investor.
For more information on the non-GAAP financial
measures, please see the “Reconciliation of Non-GAAP Measurements
to GAAP Results” tables in this press release. These accompanying
tables have more details on the GAAP financial measures that are
most directly comparable to non-GAAP financial measures and the
related reconciliations between these financial measures.
About Noodles & Company
Since 1995, Noodles & Company has been
serving noodles your way, from noodles and flavors that you know
and love, to new ones you’re about to discover for the first time.
From indulgent Wisconsin Mac & Cheese to good-for-you Zoodles,
Noodles serves a world of flavor in every bowl. Made up of over 450
restaurants and approximately 8,000 passionate team members,
Noodles is dedicated to nourishing and inspiring every guest who
walks through the door. To learn more or find the location nearest
you, visit www.noodles.com.
Forward-Looking Statements
In addition to historical information, this
press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995
that involve risks and uncertainties such as the number of
restaurants we intend to open, projected capital expenditures and
estimates of our effective tax rates. In some cases, you can
identify forward-looking statements by terms such as “may,”
“might,” “will,” “objective,” “intend,” “should,” “could,” “can,”
“would,” “expect,” “believe,” “design,” “estimate,” “predict,”
“potential,” “plan” or the negative of these terms and similar
expressions intended to identify forward-looking statements. These
statements reflect our current views with respect to future events
and are based on currently available operating, financial and
competitive information. Examples of forward-looking statements
include all matters that are not historical facts, such as
statements regarding expectations with respect to unit growth and
planned restaurant openings, projected capital expenditures, and
potential volatility through 2023 due to the current high
inflationary environment and economic uncertainties, including the
affects on the consumer sentiment and behavior. Our actual results
may differ materially from those anticipated in these
forward-looking statements due to reasons including, but not
limited to, our ability to sustain our overall growth, including
our digital sales growth; our ability to open new restaurants on
schedule and cause those newly opened restaurants to be successful;
our ability to achieve and maintain increases in comparable
restaurant sales and to successfully execute our business strategy,
including new restaurant initiatives and operational strategies to
improve the performance of our restaurant portfolio; the success of
our marketing efforts, including our ability to introduce new
products; current economic conditions including any impact from
inflation or an economic recession; a rising interest rate
environment; price and availability of commodities and other supply
chain challenges; our ability to adequately staff our restaurants;
changes in labor costs; other conditions beyond our control such as
weather, natural disasters, disease outbreaks, epidemics or
pandemics impacting our customer or food supplies; and consumer
reaction to industry related public health issues and health
pandemics, including perceptions of food safety. For additional
information on these and other factors that could affect the
Company’s forward-looking statements, see the Company’s risk
factors, as they may be amended from time to time, set forth in its
filings with the SEC, included in our most recently filed Annual
Report on Form 10-K, and, from time to time, in our subsequently
filed Quarterly Reports on Form 10-Q. The Company disclaims
and does not undertake any obligation to update or revise any
forward-looking statement in this press release, except as may be
required by applicable law or regulation. To the extent that the
Company provides guidance, it does so only on a non-GAAP basis and
does not provide reconciliations of such forward-looking non-GAAP
measures to GAAP. Specifically, forecasted adjusted EBITDA,
adjusted EPS and restaurant contribution margin are forward-looking
non-GAAP measures. Quantitative reconciling information for these
measures is unavailable without unreasonable efforts. The
corresponding GAAP measures (net income, earnings per share and
operating margin, respectively) are not accessible on a
forward-looking basis and such information is likely to be
significant to an investor.
|
Noodles & Company |
Condensed Consolidated Statements of
Operations |
(in thousands, except share and per share data,
unaudited) |
|
|
|
Fiscal Quarter Ended |
|
April 4,2023 |
|
March 29,2022 |
Revenue: |
|
|
|
Restaurant revenue |
$ |
123,227 |
|
|
$ |
109,961 |
|
Franchising royalties and fees, and other |
|
2,850 |
|
|
|
2,601 |
|
Total revenue |
|
126,077 |
|
|
|
112,562 |
|
Costs and expenses: |
|
|
|
Restaurant operating costs (exclusive of depreciation and
amortization shown separately below): |
|
|
|
Cost of sales |
|
31,025 |
|
|
|
30,771 |
|
Labor |
|
39,830 |
|
|
|
35,493 |
|
Occupancy |
|
11,486 |
|
|
|
11,149 |
|
Other restaurant operating costs |
|
24,011 |
|
|
|
21,866 |
|
General and administrative |
|
13,641 |
|
|
|
11,840 |
|
Depreciation and amortization |
|
6,250 |
|
|
|
5,721 |
|
Pre-opening |
|
492 |
|
|
|
408 |
|
Restaurant impairments, closure costs and asset disposals |
|
1,569 |
|
|
|
1,389 |
|
Total costs and expenses |
|
128,304 |
|
|
|
118,637 |
|
Loss from operations |
|
(2,227 |
) |
|
|
(6,075 |
) |
Interest expense, net |
|
961 |
|
|
|
437 |
|
Loss before taxes |
|
(3,188 |
) |
|
|
(6,512 |
) |
Benefit from income taxes |
|
(73 |
) |
|
|
(83 |
) |
Net loss |
$ |
(3,115 |
) |
|
$ |
(6,429 |
) |
Loss per Class A and
Class B common stock, combined |
|
|
|
Basic |
$ |
(0.07 |
) |
|
$ |
(0.14 |
) |
Diluted |
$ |
(0.07 |
) |
|
$ |
(0.14 |
) |
Weighted average shares of
Class A and Class B common stock outstanding,
combined: |
|
|
|
Basic |
|
46,115,506 |
|
|
|
45,726,500 |
|
Diluted |
|
46,115,506 |
|
|
|
45,726,500 |
|
|
Noodles & Company |
Condensed Consolidated Statements of Operations as a
Percentage of Revenue |
(unaudited) |
|
|
|
Fiscal Quarter Ended |
|
April 4,2023 |
|
March 29,2022 |
Revenue: |
|
|
|
|
|
|
|
Restaurant revenue |
97.7 |
|
% |
|
97.7 |
|
% |
Franchising royalties and fees, and other |
2.3 |
|
% |
|
2.3 |
|
% |
Total revenue |
100.0 |
|
% |
|
100.0 |
|
% |
Costs and expenses: |
|
|
|
|
|
|
|
Restaurant operating costs (exclusive of depreciation and
amortization shown separately below): (1) |
|
|
|
|
|
|
|
Cost of sales |
25.2 |
|
% |
|
28.0 |
|
% |
Labor |
32.3 |
|
% |
|
32.3 |
|
% |
Occupancy |
9.3 |
|
% |
|
10.1 |
|
% |
Other restaurant operating costs |
19.5 |
|
% |
|
19.9 |
|
% |
General and administrative |
10.8 |
|
% |
|
10.5 |
|
% |
Depreciation and amortization |
5.0 |
|
% |
|
5.1 |
|
% |
Pre-opening |
0.4 |
|
% |
|
0.4 |
|
% |
Restaurant impairments, closure costs and asset disposals |
1.2 |
|
% |
|
1.2 |
|
% |
Total costs and expenses |
101.8 |
|
% |
|
105.4 |
|
% |
Loss from operations |
(1.8 |
) |
% |
|
(5.4 |
) |
% |
Interest expense, net |
0.8 |
|
% |
|
0.4 |
|
% |
Loss before taxes |
(2.5 |
) |
% |
|
(5.8 |
) |
% |
Benefit from income taxes |
— |
|
% |
|
(0.1 |
) |
% |
Net loss |
(2.5 |
) |
% |
|
(5.7 |
) |
% |
______________________________ |
(1) |
As a percentage of restaurant revenue. |
|
Noodles & Company |
Consolidated Selected Balance Sheet Data and Selected
Operating Data |
(in thousands, except restaurant activity,
unaudited) |
|
|
|
As of |
|
April 4,2023 |
|
January 3,2023 |
Balance Sheet
Data |
|
Total current assets |
$ |
21,086 |
|
|
$ |
21,636 |
|
Total assets |
|
349,044 |
|
|
|
343,843 |
|
Total current liabilities |
|
67,966 |
|
|
|
64,113 |
|
Total long-term debt |
|
51,216 |
|
|
|
46,051 |
|
Total liabilities |
|
313,113 |
|
|
|
305,479 |
|
Total stockholders’
equity |
|
35,931 |
|
|
|
38,364 |
|
|
Fiscal Quarter Ended |
|
April 4,2023 |
|
January 3,2023 |
|
September 27,2022 |
|
June 28,2022 |
|
March 29,2022 |
Selected Operating
Data |
|
Restaurant Activity: |
|
|
|
|
|
|
|
|
|
Company-owned restaurants at end of period |
|
369 |
|
|
|
|
368 |
|
|
|
|
366 |
|
|
|
|
363 |
|
|
|
|
360 |
|
|
Franchise restaurants at end of period |
|
92 |
|
|
|
|
93 |
|
|
|
|
93 |
|
|
|
|
93 |
|
|
|
|
93 |
|
|
Revenue Data: |
|
|
|
|
|
|
|
|
|
Company-owned average unit volume |
$ |
1,343 |
|
|
|
$ |
1,379 |
|
|
|
$ |
1,387 |
|
|
|
$ |
1,421 |
|
|
|
$ |
1,249 |
|
|
Franchise average unit volume |
$ |
1,257 |
|
|
|
$ |
1,276 |
|
|
|
$ |
1,260 |
|
|
|
$ |
1,276 |
|
|
|
$ |
1,225 |
|
|
Company-owned comparable restaurant sales |
|
6.9 |
|
% |
|
|
10.2 |
|
% |
|
|
3.4 |
|
% |
|
|
5.1 |
|
% |
|
|
5.3 |
|
% |
Franchise comparable restaurant sales |
|
4.1 |
|
% |
|
|
1.3 |
|
% |
|
|
(3.8 |
) |
% |
|
|
5.3 |
|
% |
|
|
11.9 |
|
% |
System-wide comparable restaurant sales |
|
6.4 |
|
% |
|
|
8.7 |
|
% |
|
|
2.1 |
|
% |
|
|
5.1 |
|
% |
|
|
6.4 |
|
% |
Reconciliations of Non-GAAP Measurements to GAAP
Results |
|
Noodles & Company |
Reconciliation of Net Loss to EBITDA and
Adjusted EBITDA |
(in thousands, unaudited) |
|
|
|
Fiscal Quarter Ended |
|
April 4,2023 |
|
March 29,2022 |
Net loss |
$ |
(3,115 |
) |
|
$ |
(6,429 |
) |
Depreciation and
amortization |
|
6,250 |
|
|
|
5,721 |
|
Interest expense, net |
|
961 |
|
|
|
437 |
|
Benefit from income taxes |
|
(73 |
) |
|
|
(83 |
) |
EBITDA |
$ |
4,023 |
|
|
$ |
(354 |
) |
Restaurant impairments,
closure costs and asset disposals |
|
1,569 |
|
|
|
1,389 |
|
Stock-based compensation
expense |
|
1,391 |
|
|
|
1,169 |
|
Costs related to corporate
matters |
|
30 |
|
|
|
— |
|
Adjusted EBITDA |
$ |
7,013 |
|
|
$ |
2,204 |
|
______________________________ |
EBITDA and adjusted EBITDA are supplemental measures of operating
performance that do not represent and should not be considered as
alternatives to net income (loss) or cash flow from operations, as
determined by GAAP, and our calculation thereof may not be
comparable to that reported by other companies. These measures are
presented because we believe that investors’ understanding of our
performance is enhanced by including these non-GAAP financial
measures as a reasonable basis for evaluating our ongoing results
of operations. |
|
EBITDA is calculated as net income (loss) before interest expense,
net, provision (benefit) for income taxes and depreciation and
amortization. Adjusted EBITDA further adjusts EBITDA to reflect the
eliminations shown in the table above. |
|
EBITDA and adjusted EBITDA are presented because: (i) we
believe they are useful measures for investors to assess the
operating performance of our business without the effect of
non-cash charges such as depreciation and amortization expenses and
restaurant impairments, closure costs and asset disposals and
(ii) we use adjusted EBITDA internally as a benchmark for
certain of our cash incentive plans and to evaluate our operating
performance or compare our performance to that of our competitors.
The use of adjusted EBITDA as a performance measure permits a
comparative assessment of our operating performance relative to our
performance based on our GAAP results, while isolating the effects
of some items that vary from period to period without any
correlation to core operating performance or that vary widely among
similar companies. Companies within our industry exhibit
significant variations with respect to capital structures and cost
of capital (which affect interest expense and income tax rates) and
differences in book depreciation of property, plant and equipment
(which affect relative depreciation expense), including significant
differences in the depreciable lives of similar assets among
various companies. Our management believes that adjusted EBITDA
facilitates company-to-company comparisons within our industry by
eliminating some of these foregoing variations. Adjusted EBITDA as
presented may not be comparable to other similarly-titled measures
of other companies, and our presentation of adjusted EBITDA should
not be construed as an inference that our future results will be
unaffected by excluded or unusual items. |
|
Noodles & Company |
Reconciliation of Net Loss to Adjusted Net
Loss |
(in thousands, except share and per share data,
unaudited) |
|
|
|
Fiscal Quarter Ended |
|
April 4,2023 |
|
March 29,2022 |
Net loss |
$ |
(3,115 |
) |
|
$ |
(6,429 |
) |
Restaurant impairments,
divestitures and closure costs (a) |
|
837 |
|
|
|
624 |
|
Costs related to corporate
matters (b) |
|
30 |
|
|
|
— |
|
Tax impact of adjustments
above (c) |
|
(20 |
) |
|
|
(8 |
) |
Adjusted net loss |
$ |
(2,268 |
) |
|
$ |
(5,813 |
) |
|
|
|
|
Loss per Class A and
Class B common stock, combined |
|
|
|
Basic |
$ |
(0.07 |
) |
|
$ |
(0.14 |
) |
Diluted |
$ |
(0.07 |
) |
|
$ |
(0.14 |
) |
Adjusted loss per Class A
and Class B common stock, combined (d) |
|
|
|
Basic |
$ |
(0.05 |
) |
|
$ |
(0.13 |
) |
Diluted |
$ |
(0.05 |
) |
|
$ |
(0.13 |
) |
Weighted average Class A and
Class B common stock outstanding, combined (d) |
|
|
|
Basic |
|
46,115,506 |
|
|
|
45,726,500 |
|
Diluted |
|
46,115,506 |
|
|
|
45,726,500 |
|
______________________________ |
Adjusted net income (loss) is a supplemental measure of financial
performance that is not required by or presented in accordance with
GAAP. We define adjusted net income (loss) as net income (loss)
plus the impact of adjustments and the tax effects of such
adjustments. Adjusted net income (loss) is presented because
management believes it helps convey supplemental information to
investors regarding our performance, excluding the impact of
special items that affect the comparability of results in past
quarters to expected results in future quarters. Adjusted net
income (loss) as presented may not be comparable to other
similarly-titled measures of other companies, and our presentation
of adjusted net income (loss) should not be construed as an
inference that our future results will be unaffected by excluded or
unusual items. Our management uses this non-GAAP financial measure
to analyze changes in our underlying business from quarter to
quarter based on comparable financial results. |
|
|
|
|
(a) |
Reflects the adjustment to eliminate the impact of divestiture
costs and ongoing closure costs recognized during the first quarter
of 2023 and 2022. Both periods include ongoing closure costs from
restaurants closed in previous years. These expenses are included
in the “Restaurant impairments, closure costs and asset disposals”
line in the Condensed Consolidated Statements of Operations. |
|
(b) |
Reflects the adjustments to eliminate the expenses related to
certain corporate matters. |
|
(c) |
Reflects the tax impact of the other adjustments discussed in (a)
through (b) above using the estimated annual effective tax
rate. |
|
(d) |
Adjusted per share amounts are calculated by dividing adjusted net
income (loss) by the basic and diluted weighted average shares
outstanding. |
|
Noodles & Company |
Reconciliation of Operating Loss to Restaurant
Contribution |
(in thousands, unaudited) |
|
|
|
Fiscal Quarter Ended |
|
April 4,2023 |
|
March 29,2022 |
Loss from operations |
$ |
(2,227 |
) |
|
|
$ |
(6,075 |
) |
|
Less: Franchising royalties
and fees, and other |
|
2,850 |
|
|
|
|
2,601 |
|
|
Plus: General and
administrative |
|
13,641 |
|
|
|
|
11,840 |
|
|
Depreciation and amortization |
|
6,250 |
|
|
|
|
5,721 |
|
|
Pre-opening |
|
492 |
|
|
|
|
408 |
|
|
Restaurant impairments, closure costs and asset disposals |
|
1,569 |
|
|
|
|
1,389 |
|
|
Restaurant contribution |
$ |
16,875 |
|
|
|
$ |
10,682 |
|
|
|
|
|
|
Restaurant contribution
margin |
|
13.7 |
|
% |
|
|
9.7 |
|
% |
______________________________ |
Restaurant contribution represents restaurant revenue less
restaurant operating costs, which are the cost of sales, labor,
occupancy and other operating items. Restaurant contribution margin
represents restaurant contribution as a percentage of restaurant
revenue. Restaurant contribution and restaurant contribution margin
are non-GAAP measures that are neither required by, nor presented
in accordance with GAAP, and the calculations thereof may not be
comparable to similar measures reported by other companies. These
measures are supplemental measures of the operating performance of
our restaurants and are not reflective of the underlying
performance of our business because corporate-level expenses are
excluded from these measures. |
|
Restaurant contribution and restaurant contribution margin have
limitations as analytical tools and should not be considered in
isolation or as substitutes for analysis of our results as reported
under GAAP. Management does not consider these measures in
isolation or as an alternative to financial measures determined in
accordance with GAAP. However, management believes that restaurant
contribution and restaurant contribution margin are important tools
for investors and other interested parties because they are
widely-used metrics within the restaurant industry to evaluate
restaurant-level productivity, efficiency and performance.
Management also uses these measures as metrics to evaluate the
profitability of incremental sales at our restaurants, restaurant
performance across periods, and restaurant financial performance
compared with competitors. |
|
Contacts:Investor
Relationsinvestorrelations@noodles.com
MediaDanielle
Moorepress@noodles.com
Source: Noodles & Company
Noodles (NASDAQ:NDLS)
過去 株価チャート
から 4 2024 まで 5 2024
Noodles (NASDAQ:NDLS)
過去 株価チャート
から 5 2023 まで 5 2024