|
|
|
|
|
|
|
|
|
Buildings and improvements | 5 | to | 30 years |
Equipment | 3 | to | 7 years |
Computer hardware and software | 3 | to | 7 years |
Assets subject to capital lease | Shorter of useful life or lease term |
• | Current Assets and Liabilities. The carrying values reported on the balance sheet of cash, accounts receivable and accounts payable approximate fair value because of the short maturity of those financial instruments. |
• | Revolving Credit Borrowings. The fair value of outstanding revolving credit borrowings under the Company's senior credit facility, which is considered Level 2, is based on current LIBOR rates. At December 31, 2017 and January 1, 2017, the fair value and carrying value of the Company's senior credit facility were approximately $75.0 million and $69.9 million, respectively. |
|
December 31, 2017 | January 1, 2017 | ||||||
Prepaid contract expenses | $ | 3,681 | $ | 2,089 | |||
Assets held for sale(1) | 2,705 | — | |||||
Other | 3,719 | 2,142 | |||||
$ | 10,105 | $ | 4,231 |
|
December 31, 2017 | January 1, 2017 | ||||||
Land and land improvements | $ | 20,502 | $ | 23,395 | |||
Owned buildings | 17,221 | 22,008 | |||||
Leasehold improvements (1) | 208,499 | 249,507 | |||||
Equipment | 206,436 | 220,397 | |||||
Assets subject to capital leases | 2,057 | 2,057 | |||||
454,715 | 517,364 | ||||||
Less accumulated depreciation and amortization | (220,154 | ) | (246,444 | ) | |||
$ | 234,561 | $ | 270,920 |
|
Pollo Tropical | Taco Cabana | Total | |||||||||
Balance, December 31, 2017 and January 1, 2017 | $ | 56,307 | $ | 67,177 | $ | 123,484 |
|
Year Ended | |||||||||||
December 31, 2017 | January 1, 2017 | January 3, 2016 | |||||||||
Pollo Tropical | $ | 57,947 | $ | 24,419 | $ | 510 | |||||
Taco Cabana | 3,813 | 1,225 | 1,872 | ||||||||
$ | 61,760 | $ | 25,644 | $ | 2,382 |
|
December 31, 2017 | January 1, 2017 | ||||||
Accrued workers' compensation and general liability claims | $ | 5,083 | $ | 4,838 | |||
Sales and property taxes | 2,279 | 1,844 | |||||
Accrued occupancy costs | 7,813 | 2,161 | |||||
Other | 6,642 | 2,473 | |||||
$ | 21,817 | $ | 11,316 |
December 31, 2017 | January 1, 2017 | ||||||
Accrued occupancy costs | $ | 20,985 | $ | 20,172 | |||
Deferred compensation | 1,029 | 2,027 | |||||
Accrued workers’ compensation and general liability claims | 6,102 | 4,030 | |||||
Other | 3,946 | 5,804 | |||||
$ | 32,062 | $ | 32,033 |
Year Ended | |||||||
December 31, 2017 | January 1, 2017 | ||||||
Balance, beginning of period | $ | 4,912 | $ | 1,832 | |||
Provisions for restaurant closures | 8,767 | 3,093 | |||||
Additional lease charges, net of (recoveries) | (1,301 | ) | (237 | ) | |||
Payments, net | (5,528 | ) | (806 | ) | |||
Other adjustments | 6,144 | 1,030 | |||||
Balance, end of period | $ | 12,994 | $ | 4,912 |
|
Capital | Operating | ||||||
2018 | $ | 282 | $ | 43,391 | |||
2019 | 282 | 43,142 | |||||
2020 | 286 | 41,770 | |||||
2021 | 301 | 38,867 | |||||
2022 | 301 | 37,664 | |||||
Thereafter | 1,239 | 294,275 | |||||
Total minimum lease payments(1) | 2,691 | $ | 499,109 | ||||
Less amount representing interest | (1,168 | ) | |||||
Total obligations under capital leases | 1,523 | ||||||
Less current portion | (98 | ) | |||||
Long-term debt under capital leases | $ | 1,425 |
Year Ended | |||||||||||
December 31, 2017 | January 1, 2017 | January 3, 2016 | |||||||||
Minimum rent on real property, excluding rent included in pre-opening costs | $ | 36,760 | $ | 37,180 | $ | 32,716 | |||||
Additional rent based on percentage of sales | 176 | 313 | 387 | ||||||||
Restaurant rent expense | 36,936 | 37,493 | 33,103 | ||||||||
Rent included in pre-opening costs | 856 | 2,066 | 1,736 | ||||||||
Administrative and equipment rent | 988 | 1,119 | 1,026 | ||||||||
$ | 38,780 | $ | 40,678 | $ | 35,865 |
|
December 31, 2017 | January 1, 2017 | ||||||
Revolving credit facility | $ | 75,000 | $ | 69,900 | |||
Capital leases | 1,523 | 1,612 | |||||
76,523 | 71,512 | ||||||
Less: current portion of long-term debt | (98 | ) | (89 | ) | |||
$ | 76,425 | $ | 71,423 |
|
Year Ended | |||||||||||
December 31, 2017 | January 1, 2017 | January 3, 2016 | |||||||||
Current: | |||||||||||
Federal | $ | (5,718 | ) | $ | 11,979 | $ | 14,086 | ||||
Foreign | 346 | 372 | 396 | ||||||||
State | 445 | 1,865 | 2,081 | ||||||||
(4,927 | ) | 14,216 | 16,563 | ||||||||
Deferred: | |||||||||||
Federal | (1,059 | ) | (4,908 | ) | 5,318 | ||||||
State | (1,649 | ) | (792 | ) | 139 | ||||||
(2,708 | ) | (5,700 | ) | 5,457 | |||||||
Valuation allowance | (120 | ) | (180 | ) | 26 | ||||||
$ | (7,755 | ) | $ | 8,336 | $ | 22,046 |
December 31, 2017 | January 1, 2017 | |||||||
Deferred income tax assets: | ||||||||
Accrued vacation benefits | 1,051 | 1,640 | ||||||
Incentive compensation | 924 | 986 | ||||||
Other accruals | 3,187 | 3,924 | ||||||
Deferred income on sale-leaseback of real estate | 5,422 | 9,861 | ||||||
Lease financing obligations | — | 162 | ||||||
Occupancy costs | 6,669 | 8,036 | ||||||
Tax credit carryforwards | 883 | 1,148 | ||||||
Property and equipment depreciation | 1,665 | — | ||||||
Other | 1,073 | 1,738 | ||||||
Gross deferred income tax assets | 20,874 | 27,495 | ||||||
Deferred income tax liabilities: | ||||||||
Property and equipment depreciation | — | (8,311 | ) | |||||
Amortization of other intangibles, net | (2,094 | ) | (3,250 | ) | ||||
Other | (812 | ) | (701 | ) | ||||
Gross deferred income tax liabilities | (2,906 | ) | (12,262 | ) | ||||
Less: Valuation allowance | (736 | ) | (856 | ) | ||||
Net deferred income tax assets | $ | 17,232 | $ | 14,377 |
Year Ended | |||||||||||
December 31, 2017 | January 1, 2017 | January 3, 2016 | |||||||||
Statutory federal income tax provision (benefit) | $ | (15,394 | ) | $ | 8,767 | $ | 21,204 | ||||
State income taxes, net of federal benefit | (734 | ) | 689 | 1,435 | |||||||
Change in valuation allowance | (120 | ) | (180 | ) | 26 | ||||||
Change in federal income tax rate | 8,952 | — | — | ||||||||
Net share-based compensation-tax benefit deficiencies(1) | 228 | — | — | ||||||||
Non-deductible expenses | 84 | (3 | ) | 260 | |||||||
Foreign taxes | 346 | 372 | 396 | ||||||||
Employment tax credits | (914 | ) | (905 | ) | (889 | ) | |||||
Foreign tax credits/deductions | (121 | ) | (372 | ) | (396 | ) | |||||
Other | (82 | ) | (32 | ) | 10 | ||||||
$ | (7,755 | ) | $ | 8,336 | $ | 22,046 |
|
• | The Company granted its Chief Executive Officer 72,290 restricted stock units, which vest in four tranches over a four year vesting period subject to continued service and attainment of specified share prices of the Company's Common Stock during 20 consecutive trading days at any point during each year. Each tranche vests by the end of a one year period if the specified target stock price condition for that year is met. If the specified target stock price condition for any tranche is not met for the year, the cumulative unearned units will be rolled over to subsequent tranches on a pro rata basis. The number of shares into which these restricted stock units convert ranges from no shares, if the service and market performance conditions are not met, to 72,290 shares, if the service and market performance conditions are met in the fourth year. The weighted average fair value at grant date for these restricted stock units was $12.90. |
• | The Company granted certain executives 19,881 restricted stock units which vest in three tranches over a three year vesting period subject to continued service and attainment of specified share price of the Company's Common Stock. The number of shares into which these restricted stock units convert ranges from no shares, if the service and market performance conditions are not met, to 19,881 shares, if the service and market performance conditions are met in the third year. The weighted average fair value of these restricted stock units were $9.31. |
Non-Vested Shares | Restricted Stock Units | ||||||||||||
Shares | Weighted Average Grant Date Price | Units | Weighted Average Grant Date Price | ||||||||||
Outstanding at January 1, 2017 | 129,352 | $ | 37.94 | 51,445 | $ | 46.59 | |||||||
Granted | 221,118 | 20.84 | 103,916 | 13.10 | |||||||||
Vested/Released | (90,388 | ) | 29.98 | (1,430 | ) | 51.51 | |||||||
Forfeited | (20,582 | ) | 32.04 | (9,985 | ) | 35.83 | |||||||
Outstanding at December 31, 2017 | 239,500 | $ | 24.81 | 143,946 | $ | 23.11 |
|
Year Ended | Pollo Tropical | Taco Cabana | Other | Consolidated | ||||||||||||
December 31, 2017: | ||||||||||||||||
Restaurant sales | $ | 372,328 | $ | 294,256 | $ | — | $ | 666,584 | ||||||||
Franchise revenue | 1,787 | 761 | — | 2,548 | ||||||||||||
Cost of sales | 117,493 | 85,395 | — | 202,888 | ||||||||||||
Restaurant wages and related expenses(1) | 88,587 | 96,155 | — | 184,742 | ||||||||||||
Restaurant rent expense | 18,949 | 17,987 | — | 36,936 | ||||||||||||
Other restaurant operating expenses | 52,848 | 46,079 | — | 98,927 | ||||||||||||
Advertising expense | 16,397 | 9,694 | — | 26,091 | ||||||||||||
General and administrative expense(2) | 33,244 | 26,900 | — | 60,144 | ||||||||||||
Adjusted EBITDA (unaudited) | 50,937 | 16,508 | — | 67,445 | ||||||||||||
Depreciation and amortization | 21,758 | 13,199 | — | 34,957 | ||||||||||||
Capital expenditures | 31,786 | 20,781 | 3,299 | 55,866 | ||||||||||||
January 1, 2017: | ||||||||||||||||
Restaurant sales | $ | 399,736 | $ | 309,220 | $ | — | $ | 708,956 | ||||||||
Franchise revenue | 2,062 | 752 | — | 2,814 | ||||||||||||
Cost of sales | 126,539 | 88,070 | — | 214,609 | ||||||||||||
Restaurant wages and related expenses(1) | 93,958 | 91,347 | — | 185,305 | ||||||||||||
Restaurant rent expense | 19,998 | 17,495 | — | 37,493 | ||||||||||||
Other restaurant operating expenses | 54,198 | 42,259 | — | 96,457 | ||||||||||||
Advertising expense | 14,819 | 11,981 | — | 26,800 | ||||||||||||
General and administrative expense(2) | 33,776 | 21,486 | 822 | 56,084 | ||||||||||||
Adjusted EBITDA (unaudited) | 58,286 | 38,281 | — | 96,567 | ||||||||||||
Depreciation and amortization | 23,587 | 13,189 | — | 36,776 | ||||||||||||
Capital expenditures | 65,789 | 13,206 | 3,370 | 82,365 | ||||||||||||
January 3, 2016: | ||||||||||||||||
Restaurant sales | $ | 364,544 | $ | 320,040 | $ | — | $ | 684,584 | ||||||||
Franchise revenue | 2,197 | 611 | — | 2,808 | ||||||||||||
Cost of sales | 121,689 | 95,639 | — | 217,328 | ||||||||||||
Restaurant wages and related expenses(1) | 81,647 | 92,575 | — | 174,222 | ||||||||||||
Restaurant rent expense | 16,003 | 17,100 | — | 33,103 | ||||||||||||
Other restaurant operating expenses | 45,376 | 41,909 | — | 87,285 | ||||||||||||
Advertising expense | 9,527 | 12,090 | — | 21,617 | ||||||||||||
General and administrative expense(2) | 31,142 | 23,379 | — | 54,521 | ||||||||||||
Adjusted EBITDA (unaudited) | 61,265 | 39,775 | — | 101,040 | ||||||||||||
Depreciation and amortization | 18,000 | 12,575 | — | 30,575 | ||||||||||||
Capital expenditures | 73,129 | 12,294 | 2,147 | 87,570 | ||||||||||||
Identifiable Assets: | ||||||||||||||||
December 31, 2017 | $ | 227,194 | $ | 167,237 | $ | 28,882 | $ | 423,313 | ||||||||
January 1, 2017 | 263,868 | 165,195 | 12,502 | 441,565 | ||||||||||||
January 3, 2016 | 237,065 | 165,549 | 13,031 | 415,645 |
Year Ended | Pollo Tropical | Taco Cabana | Other | Consolidated | ||||||||||||
December 31, 2017: | ||||||||||||||||
Net income (loss) | $ | (36,232 | ) | |||||||||||||
Provision for (benefit from) income taxes | (7,755 | ) | ||||||||||||||
Income (loss) before taxes | $ | (37,831 | ) | $ | (6,156 | ) | $ | — | $ | (43,987 | ) | |||||
Add | ||||||||||||||||
Non-general and administrative expense adjustments | ||||||||||||||||
Depreciation and amortization | 21,758 | 13,199 | — | 34,957 | ||||||||||||
Impairment and other lease charges | 57,947 | 3,813 | — | 61,760 | ||||||||||||
Interest expense | 1,348 | 1,529 | — | 2,877 | ||||||||||||
Other expense (income), net | 2,208 | (529 | ) | — | 1,679 | |||||||||||
Stock-based compensation expense in restaurant wages | (4 | ) | 56 | — | 52 | |||||||||||
Unused pre-production costs in advertising expense | 322 | 88 | — | 410 | ||||||||||||
Total Non-general and administrative expense adjustments | 83,579 | 18,156 | — | 101,735 | ||||||||||||
General and administrative expense adjustments | ||||||||||||||||
Stock-based compensation expense | 1,983 | 1,510 | — | 3,493 | ||||||||||||
Terminated capital project | 484 | 365 | — | 849 | ||||||||||||
Board and shareholder matter costs | 1,738 | 1,311 | — | 3,049 | ||||||||||||
Write-off of site development costs | 219 | 292 | — | 511 | ||||||||||||
Plan restructuring costs and retention bonuses | 1,390 | 1,030 | — | 2,420 | ||||||||||||
Office restructuring and relocation costs | (152 | ) | — | — | (152 | ) | ||||||||||
Legal settlements and related costs | (473 | ) | — | (473 | ) | |||||||||||
Total General and administrative expense adjustments | 5,189 | 4,508 | — | 9,697 | ||||||||||||
Adjusted EBITDA | $ | 50,937 | $ | 16,508 | $ | — | $ | 67,445 | ||||||||
January 1, 2017: | ||||||||||||||||
Net income (loss) | $ | 16,712 | ||||||||||||||
Provision for (benefit from) income taxes | 8,336 | |||||||||||||||
Income (loss) before taxes | $ | 4,639 | $ | 21,231 | $ | (822 | ) | $ | 25,048 | |||||||
Add | ||||||||||||||||
Non-general and administrative expense adjustments | ||||||||||||||||
Depreciation and amortization | 23,587 | 13,189 | — | 36,776 | ||||||||||||
Impairment and other lease charges | 24,419 | 1,225 | — | 25,644 | ||||||||||||
Interest expense | 930 | 1,241 | — | 2,171 | ||||||||||||
Other expense (income), net | 98 | (226 | ) | — | (128 | ) | ||||||||||
Stock-based compensation expense in restaurant wages | 69 | 73 | — | 142 | ||||||||||||
Total Non-general and administrative expense adjustments | 49,103 | 15,502 | — | 64,605 | ||||||||||||
General and administrative expense adjustments | ||||||||||||||||
Stock-based compensation expense | 1,793 | 1,348 | — | 3,141 | ||||||||||||
Board and shareholder matter costs | 432 | 326 | 822 | 1,580 | ||||||||||||
Write-off of site development costs | 1,138 | 120 | — | 1,258 | ||||||||||||
Plan restructuring costs and retention bonuses | 45 | 41 | — | 86 | ||||||||||||
Office restructuring and relocation costs | 539 | — | — | 539 | ||||||||||||
Legal settlements and related costs | 597 | (287 | ) | — | 310 | |||||||||||
Total General and administrative expense adjustments | 4,544 | 1,548 | 822 | 6,914 | ||||||||||||
Year Ended: | Pollo Tropical | Taco Cabana | Other | Consolidated | ||||||||||||
January 3, 2016: | ||||||||||||||||
Net income (loss) | 38,536 | |||||||||||||||
Provision for (benefit from) income taxes: | 22,046 | |||||||||||||||
Income (loss) before taxes: | 38,021 | 22,561 | — | 60,582 | ||||||||||||
Add: | ||||||||||||||||
Non-general and administrative expense adjustments: | ||||||||||||||||
Depreciation and amortization: | 18,000 | 12,575 | — | 30,575 | ||||||||||||
Impairment and other lease charges: | 510 | 1,872 | — | 2,382 | ||||||||||||
Interest expense: | 806 | 1,083 | — | 1,889 | ||||||||||||
Other expense (income), net: | (290 | ) | (389 | ) | — | (679 | ) | |||||||||
Stock-based compensation expense in restaurant wages: | 72 | 84 | — | 156 | ||||||||||||
Total Non-general and administrative expense adjustments: | 19,098 | 15,225 | — | 34,323 | ||||||||||||
General and administrative expense adjustments: | ||||||||||||||||
Stock-based compensation expense: | 2,215 | 1,922 | — | 4,137 | ||||||||||||
Write-off of site development costs: | 298 | 67 | — | 365 | ||||||||||||
Legal settlements and related costs: | 1,633 | — | — | 1,633 | ||||||||||||
Total General and administrative expense adjustments: | 4,146 | 1,989 | — | 6,135 | ||||||||||||
Adjusted EBITDA: | 61,265 | 39,775 | — | 101,040 |
|
|
|
Year Ended December 31, 2017 | |||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||
Revenue | $ | 175,607 | $ | 172,624 | $ | 158,691 | $ | 162,210 | |||||||
Loss from operations(1) | (23,118 | ) | (2,278 | ) | (12,412 | ) | (3,302 | ) | |||||||
Net loss(2) | (15,060 | ) | (2,160 | ) | (8,257 | ) | (10,755 | ) | |||||||
Basic net loss per share | $ | (0.56 | ) | $ | (0.08 | ) | $ | (0.31 | ) | $ | (0.40 | ) | |||
Diluted net loss per share | $ | (0.56 | ) | $ | (0.08 | ) | $ | (0.31 | ) | $ | (0.40 | ) | |||
Year Ended January 1, 2017 | |||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||
Revenue | $ | 176,677 | $ | 181,532 | $ | 182,256 | $ | 171,305 | |||||||
Income (loss) from operations(1) | 16,141 | 14,576 | (6,737 | ) | 3,239 | ||||||||||
Net income (loss) | 9,895 | 8,916 | (4,531 | ) | 2,432 | ||||||||||
Basic net income (loss) per share | $ | 0.37 | $ | 0.33 | $ | (0.17 | ) | $ | 0.09 | ||||||
Diluted net income (loss) per share | $ | 0.37 | $ | 0.33 | $ | (0.17 | ) | $ | 0.09 |
|
Column B | Column C | Column D | Column E | ||||||||||||||||
Description | Balance at beginning of period | Charged to costs and expenses | Charged to other accounts | Deduction | Balance at end of period | ||||||||||||||
Year Ended December 31, 2017: | |||||||||||||||||||
Deferred income tax valuation allowance | $ | 856 | $ | (120 | ) | $ | — | $ | — | $ | 736 | ||||||||
Year Ended January 1, 2017: | |||||||||||||||||||
Deferred income tax valuation allowance | 1,036 | (180 | ) | — | — | 856 | |||||||||||||
Year Ended January 3, 2016: | |||||||||||||||||||
Deferred income tax valuation allowance | 1,010 | 26 | — | — | 1,036 |
|
Buildings and improvements | 5 | to | 30 years |
Equipment | 3 | to | 7 years |
Computer hardware and software | 3 | to | 7 years |
Assets subject to capital lease | Shorter of useful life or lease term |
• | Current Assets and Liabilities. The carrying values reported on the balance sheet of cash, accounts receivable and accounts payable approximate fair value because of the short maturity of those financial instruments. |
|
Buildings and improvements | 5 | to | 30 years |
Equipment | 3 | to | 7 years |
Computer hardware and software | 3 | to | 7 years |
Assets subject to capital lease | Shorter of useful life or lease term |
December 31, 2017 | January 1, 2017 | ||||||
Land and land improvements | $ | 20,502 | $ | 23,395 | |||
Owned buildings | 17,221 | 22,008 | |||||
Leasehold improvements (1) | 208,499 | 249,507 | |||||
Equipment | 206,436 | 220,397 | |||||
Assets subject to capital leases | 2,057 | 2,057 | |||||
454,715 | 517,364 | ||||||
Less accumulated depreciation and amortization | (220,154 | ) | (246,444 | ) | |||
$ | 234,561 | $ | 270,920 |
|
December 31, 2017 | January 1, 2017 | ||||||
Prepaid contract expenses | $ | 3,681 | $ | 2,089 | |||
Assets held for sale(1) | 2,705 | — | |||||
Other | 3,719 | 2,142 | |||||
$ | 10,105 | $ | 4,231 |
|
Buildings and improvements | 5 | to | 30 years |
Equipment | 3 | to | 7 years |
Computer hardware and software | 3 | to | 7 years |
Assets subject to capital lease | Shorter of useful life or lease term |
December 31, 2017 | January 1, 2017 | ||||||
Land and land improvements | $ | 20,502 | $ | 23,395 | |||
Owned buildings | 17,221 | 22,008 | |||||
Leasehold improvements (1) | 208,499 | 249,507 | |||||
Equipment | 206,436 | 220,397 | |||||
Assets subject to capital leases | 2,057 | 2,057 | |||||
454,715 | 517,364 | ||||||
Less accumulated depreciation and amortization | (220,154 | ) | (246,444 | ) | |||
$ | 234,561 | $ | 270,920 |
|
Pollo Tropical | Taco Cabana | Total | |||||||||
Balance, December 31, 2017 and January 1, 2017 | $ | 56,307 | $ | 67,177 | $ | 123,484 |
|
Year Ended | |||||||||||
December 31, 2017 | January 1, 2017 | January 3, 2016 | |||||||||
Pollo Tropical | $ | 57,947 | $ | 24,419 | $ | 510 | |||||
Taco Cabana | 3,813 | 1,225 | 1,872 | ||||||||
$ | 61,760 | $ | 25,644 | $ | 2,382 |
|
December 31, 2017 | January 1, 2017 | ||||||
Accrued workers' compensation and general liability claims | $ | 5,083 | $ | 4,838 | |||
Sales and property taxes | 2,279 | 1,844 | |||||
Accrued occupancy costs | 7,813 | 2,161 | |||||
Other | 6,642 | 2,473 | |||||
$ | 21,817 | $ | 11,316 |
December 31, 2017 | January 1, 2017 | ||||||
Accrued occupancy costs | $ | 20,985 | $ | 20,172 | |||
Deferred compensation | 1,029 | 2,027 | |||||
Accrued workers’ compensation and general liability claims | 6,102 | 4,030 | |||||
Other | 3,946 | 5,804 | |||||
$ | 32,062 | $ | 32,033 |
Year Ended | |||||||
December 31, 2017 | January 1, 2017 | ||||||
Balance, beginning of period | $ | 4,912 | $ | 1,832 | |||
Provisions for restaurant closures | 8,767 | 3,093 | |||||
Additional lease charges, net of (recoveries) | (1,301 | ) | (237 | ) | |||
Payments, net | (5,528 | ) | (806 | ) | |||
Other adjustments | 6,144 | 1,030 | |||||
Balance, end of period | $ | 12,994 | $ | 4,912 |
|
Capital | Operating | ||||||
2018 | $ | 282 | $ | 43,391 | |||
2019 | 282 | 43,142 | |||||
2020 | 286 | 41,770 | |||||
2021 | 301 | 38,867 | |||||
2022 | 301 | 37,664 | |||||
Thereafter | 1,239 | 294,275 | |||||
Total minimum lease payments(1) | 2,691 | $ | 499,109 | ||||
Less amount representing interest | (1,168 | ) | |||||
Total obligations under capital leases | 1,523 | ||||||
Less current portion | (98 | ) | |||||
Long-term debt under capital leases | $ | 1,425 |
Capital | Operating | ||||||
2018 | $ | 282 | $ | 43,391 | |||
2019 | 282 | 43,142 | |||||
2020 | 286 | 41,770 | |||||
2021 | 301 | 38,867 | |||||
2022 | 301 | 37,664 | |||||
Thereafter | 1,239 | 294,275 | |||||
Total minimum lease payments(1) | 2,691 | $ | 499,109 | ||||
Less amount representing interest | (1,168 | ) | |||||
Total obligations under capital leases | 1,523 | ||||||
Less current portion | (98 | ) | |||||
Long-term debt under capital leases | $ | 1,425 |
Year Ended | |||||||||||
December 31, 2017 | January 1, 2017 | January 3, 2016 | |||||||||
Minimum rent on real property, excluding rent included in pre-opening costs | $ | 36,760 | $ | 37,180 | $ | 32,716 | |||||
Additional rent based on percentage of sales | 176 | 313 | 387 | ||||||||
Restaurant rent expense | 36,936 | 37,493 | 33,103 | ||||||||
Rent included in pre-opening costs | 856 | 2,066 | 1,736 | ||||||||
Administrative and equipment rent | 988 | 1,119 | 1,026 | ||||||||
$ | 38,780 | $ | 40,678 | $ | 35,865 |
|
December 31, 2017 | January 1, 2017 | ||||||
Revolving credit facility | $ | 75,000 | $ | 69,900 | |||
Capital leases | 1,523 | 1,612 | |||||
76,523 | 71,512 | ||||||
Less: current portion of long-term debt | (98 | ) | (89 | ) | |||
$ | 76,425 | $ | 71,423 |
|
Year Ended | |||||||||||
December 31, 2017 | January 1, 2017 | January 3, 2016 | |||||||||
Current: | |||||||||||
Federal | $ | (5,718 | ) | $ | 11,979 | $ | 14,086 | ||||
Foreign | 346 | 372 | 396 | ||||||||
State | 445 | 1,865 | 2,081 | ||||||||
(4,927 | ) | 14,216 | 16,563 | ||||||||
Deferred: | |||||||||||
Federal | (1,059 | ) | (4,908 | ) | 5,318 | ||||||
State | (1,649 | ) | (792 | ) | 139 | ||||||
(2,708 | ) | (5,700 | ) | 5,457 | |||||||
Valuation allowance | (120 | ) | (180 | ) | 26 | ||||||
$ | (7,755 | ) | $ | 8,336 | $ | 22,046 |
December 31, 2017 | January 1, 2017 | |||||||
Deferred income tax assets: | ||||||||
Accrued vacation benefits | 1,051 | 1,640 | ||||||
Incentive compensation | 924 | 986 | ||||||
Other accruals | 3,187 | 3,924 | ||||||
Deferred income on sale-leaseback of real estate | 5,422 | 9,861 | ||||||
Lease financing obligations | — | 162 | ||||||
Occupancy costs | 6,669 | 8,036 | ||||||
Tax credit carryforwards | 883 | 1,148 | ||||||
Property and equipment depreciation | 1,665 | — | ||||||
Other | 1,073 | 1,738 | ||||||
Gross deferred income tax assets | 20,874 | 27,495 | ||||||
Deferred income tax liabilities: | ||||||||
Property and equipment depreciation | — | (8,311 | ) | |||||
Amortization of other intangibles, net | (2,094 | ) | (3,250 | ) | ||||
Other | (812 | ) | (701 | ) | ||||
Gross deferred income tax liabilities | (2,906 | ) | (12,262 | ) | ||||
Less: Valuation allowance | (736 | ) | (856 | ) | ||||
Net deferred income tax assets | $ | 17,232 | $ | 14,377 |
Year Ended | |||||||||||
December 31, 2017 | January 1, 2017 | January 3, 2016 | |||||||||
Statutory federal income tax provision (benefit) | $ | (15,394 | ) | $ | 8,767 | $ | 21,204 | ||||
State income taxes, net of federal benefit | (734 | ) | 689 | 1,435 | |||||||
Change in valuation allowance | (120 | ) | (180 | ) | 26 | ||||||
Change in federal income tax rate | 8,952 | — | — | ||||||||
Net share-based compensation-tax benefit deficiencies(1) | 228 | — | — | ||||||||
Non-deductible expenses | 84 | (3 | ) | 260 | |||||||
Foreign taxes | 346 | 372 | 396 | ||||||||
Employment tax credits | (914 | ) | (905 | ) | (889 | ) | |||||
Foreign tax credits/deductions | (121 | ) | (372 | ) | (396 | ) | |||||
Other | (82 | ) | (32 | ) | 10 | ||||||
$ | (7,755 | ) | $ | 8,336 | $ | 22,046 |
|
Non-Vested Shares | Restricted Stock Units | ||||||||||||
Shares | Weighted Average Grant Date Price | Units | Weighted Average Grant Date Price | ||||||||||
Outstanding at January 1, 2017 | 129,352 | $ | 37.94 | 51,445 | $ | 46.59 | |||||||
Granted | 221,118 | 20.84 | 103,916 | 13.10 | |||||||||
Vested/Released | (90,388 | ) | 29.98 | (1,430 | ) | 51.51 | |||||||
Forfeited | (20,582 | ) | 32.04 | (9,985 | ) | 35.83 | |||||||
Outstanding at December 31, 2017 | 239,500 | $ | 24.81 | 143,946 | $ | 23.11 |
Non-Vested Shares | Restricted Stock Units | ||||||||||||
Shares | Weighted Average Grant Date Price | Units | Weighted Average Grant Date Price | ||||||||||
Outstanding at January 1, 2017 | 129,352 | $ | 37.94 | 51,445 | $ | 46.59 | |||||||
Granted | 221,118 | 20.84 | 103,916 | 13.10 | |||||||||
Vested/Released | (90,388 | ) | 29.98 | (1,430 | ) | 51.51 | |||||||
Forfeited | (20,582 | ) | 32.04 | (9,985 | ) | 35.83 | |||||||
Outstanding at December 31, 2017 | 239,500 | $ | 24.81 | 143,946 | $ | 23.11 |
|
Year Ended | Pollo Tropical | Taco Cabana | Other | Consolidated | ||||||||||||
December 31, 2017: | ||||||||||||||||
Restaurant sales | $ | 372,328 | $ | 294,256 | $ | — | $ | 666,584 | ||||||||
Franchise revenue | 1,787 | 761 | — | 2,548 | ||||||||||||
Cost of sales | 117,493 | 85,395 | — | 202,888 | ||||||||||||
Restaurant wages and related expenses(1) | 88,587 | 96,155 | — | 184,742 | ||||||||||||
Restaurant rent expense | 18,949 | 17,987 | — | 36,936 | ||||||||||||
Other restaurant operating expenses | 52,848 | 46,079 | — | 98,927 | ||||||||||||
Advertising expense | 16,397 | 9,694 | — | 26,091 | ||||||||||||
General and administrative expense(2) | 33,244 | 26,900 | — | 60,144 | ||||||||||||
Adjusted EBITDA (unaudited) | 50,937 | 16,508 | — | 67,445 | ||||||||||||
Depreciation and amortization | 21,758 | 13,199 | — | 34,957 | ||||||||||||
Capital expenditures | 31,786 | 20,781 | 3,299 | 55,866 | ||||||||||||
January 1, 2017: | ||||||||||||||||
Restaurant sales | $ | 399,736 | $ | 309,220 | $ | — | $ | 708,956 | ||||||||
Franchise revenue | 2,062 | 752 | — | 2,814 | ||||||||||||
Cost of sales | 126,539 | 88,070 | — | 214,609 | ||||||||||||
Restaurant wages and related expenses(1) | 93,958 | 91,347 | — | 185,305 | ||||||||||||
Restaurant rent expense | 19,998 | 17,495 | — | 37,493 | ||||||||||||
Other restaurant operating expenses | 54,198 | 42,259 | — | 96,457 | ||||||||||||
Advertising expense | 14,819 | 11,981 | — | 26,800 | ||||||||||||
General and administrative expense(2) | 33,776 | 21,486 | 822 | 56,084 | ||||||||||||
Adjusted EBITDA (unaudited) | 58,286 | 38,281 | — | 96,567 | ||||||||||||
Depreciation and amortization | 23,587 | 13,189 | — | 36,776 | ||||||||||||
Capital expenditures | 65,789 | 13,206 | 3,370 | 82,365 | ||||||||||||
January 3, 2016: | ||||||||||||||||
Restaurant sales | $ | 364,544 | $ | 320,040 | $ | — | $ | 684,584 | ||||||||
Franchise revenue | 2,197 | 611 | — | 2,808 | ||||||||||||
Cost of sales | 121,689 | 95,639 | — | 217,328 | ||||||||||||
Restaurant wages and related expenses(1) | 81,647 | 92,575 | — | 174,222 | ||||||||||||
Restaurant rent expense | 16,003 | 17,100 | — | 33,103 | ||||||||||||
Other restaurant operating expenses | 45,376 | 41,909 | — | 87,285 | ||||||||||||
Advertising expense | 9,527 | 12,090 | — | 21,617 | ||||||||||||
General and administrative expense(2) | 31,142 | 23,379 | — | 54,521 | ||||||||||||
Adjusted EBITDA (unaudited) | 61,265 | 39,775 | — | 101,040 | ||||||||||||
Depreciation and amortization | 18,000 | 12,575 | — | 30,575 | ||||||||||||
Capital expenditures | 73,129 | 12,294 | 2,147 | 87,570 | ||||||||||||
Identifiable Assets: | ||||||||||||||||
December 31, 2017 | $ | 227,194 | $ | 167,237 | $ | 28,882 | $ | 423,313 | ||||||||
January 1, 2017 | 263,868 | 165,195 | 12,502 | 441,565 | ||||||||||||
January 3, 2016 | 237,065 | 165,549 | 13,031 | 415,645 |
Year Ended | Pollo Tropical | Taco Cabana | Other | Consolidated | ||||||||||||
December 31, 2017: | ||||||||||||||||
Net income (loss) | $ | (36,232 | ) | |||||||||||||
Provision for (benefit from) income taxes | (7,755 | ) | ||||||||||||||
Income (loss) before taxes | $ | (37,831 | ) | $ | (6,156 | ) | $ | — | $ | (43,987 | ) | |||||
Add | ||||||||||||||||
Non-general and administrative expense adjustments | ||||||||||||||||
Depreciation and amortization | 21,758 | 13,199 | — | 34,957 | ||||||||||||
Impairment and other lease charges | 57,947 | 3,813 | — | 61,760 | ||||||||||||
Interest expense | 1,348 | 1,529 | — | 2,877 | ||||||||||||
Other expense (income), net | 2,208 | (529 | ) | — | 1,679 | |||||||||||
Stock-based compensation expense in restaurant wages | (4 | ) | 56 | — | 52 | |||||||||||
Unused pre-production costs in advertising expense | 322 | 88 | — | 410 | ||||||||||||
Total Non-general and administrative expense adjustments | 83,579 | 18,156 | — | 101,735 | ||||||||||||
General and administrative expense adjustments | ||||||||||||||||
Stock-based compensation expense | 1,983 | 1,510 | — | 3,493 | ||||||||||||
Terminated capital project | 484 | 365 | — | 849 | ||||||||||||
Board and shareholder matter costs | 1,738 | 1,311 | — | 3,049 | ||||||||||||
Write-off of site development costs | 219 | 292 | — | 511 | ||||||||||||
Plan restructuring costs and retention bonuses | 1,390 | 1,030 | — | 2,420 | ||||||||||||
Office restructuring and relocation costs | (152 | ) | — | — | (152 | ) | ||||||||||
Legal settlements and related costs | (473 | ) | — | (473 | ) | |||||||||||
Total General and administrative expense adjustments | 5,189 | 4,508 | — | 9,697 | ||||||||||||
Adjusted EBITDA | $ | 50,937 | $ | 16,508 | $ | — | $ | 67,445 | ||||||||
January 1, 2017: | ||||||||||||||||
Net income (loss) | $ | 16,712 | ||||||||||||||
Provision for (benefit from) income taxes | 8,336 | |||||||||||||||
Income (loss) before taxes | $ | 4,639 | $ | 21,231 | $ | (822 | ) | $ | 25,048 | |||||||
Add | ||||||||||||||||
Non-general and administrative expense adjustments | ||||||||||||||||
Depreciation and amortization | 23,587 | 13,189 | — | 36,776 | ||||||||||||
Impairment and other lease charges | 24,419 | 1,225 | — | 25,644 | ||||||||||||
Interest expense | 930 | 1,241 | — | 2,171 | ||||||||||||
Other expense (income), net | 98 | (226 | ) | — | (128 | ) | ||||||||||
Stock-based compensation expense in restaurant wages | 69 | 73 | — | 142 | ||||||||||||
Total Non-general and administrative expense adjustments | 49,103 | 15,502 | — | 64,605 | ||||||||||||
General and administrative expense adjustments | ||||||||||||||||
Stock-based compensation expense | 1,793 | 1,348 | — | 3,141 | ||||||||||||
Board and shareholder matter costs | 432 | 326 | 822 | 1,580 | ||||||||||||
Write-off of site development costs | 1,138 | 120 | — | 1,258 | ||||||||||||
Plan restructuring costs and retention bonuses | 45 | 41 | — | 86 | ||||||||||||
Office restructuring and relocation costs | 539 | — | — | 539 | ||||||||||||
Legal settlements and related costs | 597 | (287 | ) | — | 310 | |||||||||||
Total General and administrative expense adjustments | 4,544 | 1,548 | 822 | 6,914 | ||||||||||||
Year Ended: | Pollo Tropical | Taco Cabana | Other | Consolidated | ||||||||||||
January 3, 2016: | ||||||||||||||||
Net income (loss) | 38,536 | |||||||||||||||
Provision for (benefit from) income taxes: | 22,046 | |||||||||||||||
Income (loss) before taxes: | 38,021 | 22,561 | — | 60,582 | ||||||||||||
Add: | ||||||||||||||||
Non-general and administrative expense adjustments: | ||||||||||||||||
Depreciation and amortization: | 18,000 | 12,575 | — | 30,575 | ||||||||||||
Impairment and other lease charges: | 510 | 1,872 | — | 2,382 | ||||||||||||
Interest expense: | 806 | 1,083 | — | 1,889 | ||||||||||||
Other expense (income), net: | (290 | ) | (389 | ) | — | (679 | ) | |||||||||
Stock-based compensation expense in restaurant wages: | 72 | 84 | — | 156 | ||||||||||||
Total Non-general and administrative expense adjustments: | 19,098 | 15,225 | — | 34,323 | ||||||||||||
General and administrative expense adjustments: | ||||||||||||||||
Stock-based compensation expense: | 2,215 | 1,922 | — | 4,137 | ||||||||||||
Write-off of site development costs: | 298 | 67 | — | 365 | ||||||||||||
Legal settlements and related costs: | 1,633 | — | — | 1,633 | ||||||||||||
Total General and administrative expense adjustments: | 4,146 | 1,989 | — | 6,135 | ||||||||||||
Adjusted EBITDA: | 61,265 | 39,775 | — | 101,040 |
|
Year Ended December 31, 2017 | |||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||
Revenue | $ | 175,607 | $ | 172,624 | $ | 158,691 | $ | 162,210 | |||||||
Loss from operations(1) | (23,118 | ) | (2,278 | ) | (12,412 | ) | (3,302 | ) | |||||||
Net loss(2) | (15,060 | ) | (2,160 | ) | (8,257 | ) | (10,755 | ) | |||||||
Basic net loss per share | $ | (0.56 | ) | $ | (0.08 | ) | $ | (0.31 | ) | $ | (0.40 | ) | |||
Diluted net loss per share | $ | (0.56 | ) | $ | (0.08 | ) | $ | (0.31 | ) | $ | (0.40 | ) | |||
Year Ended January 1, 2017 | |||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||
Revenue | $ | 176,677 | $ | 181,532 | $ | 182,256 | $ | 171,305 | |||||||
Income (loss) from operations(1) | 16,141 | 14,576 | (6,737 | ) | 3,239 | ||||||||||
Net income (loss) | 9,895 | 8,916 | (4,531 | ) | 2,432 | ||||||||||
Basic net income (loss) per share | $ | 0.37 | $ | 0.33 | $ | (0.17 | ) | $ | 0.09 | ||||||
Diluted net income (loss) per share | $ | 0.37 | $ | 0.33 | $ | (0.17 | ) | $ | 0.09 |
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