UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 


 

FORM 8-K


 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D)

OF THE SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of earliest event reported): March 27, 2020 

 


BBQ HOLDINGS, INC.

(Exact name of registrant as specified in its charter)


 

 

 

 

 

 

 

Minnesota

001-39053

83-4222776

(State or other jurisdiction

of incorporation)

(Commission

File Number)

(IRS Employer

Identification No.)

 

(Address of principal executive offices) (Zip Code)

 

12701 Whitewater Drive,  Suite 290,  Minnetonka,  MN 55343

(952)  294-1300

(Registrant’s telephone number, including area code)

 


 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

DAVE

 

 

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $0.01 par value

BBQ

The Nasdaq Global Market

 

 

Indicated by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

 

 

Item 2.02.Results of Operations and Financial Condition.

On March 27, 2020, the Company issued a press release, which is attached hereto as Exhibit 99.1, announcing the financial results for the Company’s fourth quarter and fiscal year 2019.

The information set forth in Item 2.02 of this Current Report on Form 8-K is deemed to be “furnished” and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section. The information set forth in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed incorporated by reference into any filing under the Exchange Act or the Securities Act of 1933, as amended (the “Securities Act”), regardless of any general incorporation language in such filing.

Item 9.01.Financial Statements and Exhibits.

 

 

 

 

 

 

Exhibit No.

    

Description

99.1

 

Press Release Dated March 27, 2020

 

Page 2 of 3

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

 

 

BBQ HOLDINGS, INC.

 

 

Date: March 27, 2020

By:

/s/ James G. Gilbertson

 

 

Name: James G. Gilbertson

 

 

Title: Chief Financial Officer and Secretary

Page 3 of 3

dave_Q4Detail_Ex99_1

 

 

 

BBQ Holdings, Inc. Reports Results for Fourth Quarter and Fiscal Year 2019 and Acquisition of Granite City Food & Brewery Restaurants

MINNEAPOLIS, March 27, 2020 –  BBQ Holdings, Inc. (NASDAQ: BBQ) (the “Company”), an innovating global owner and operator of restaurants, today reported financial results for the fourth fiscal quarter and year ended December 29, 2019.

 

On March 9, 2020, the acquisition of the assets of Granite City Food & Brewery became official and BBQ Holdings now owns and operates 18 Granite City restaurants in 10 states.  The purchase price for the Granite City assets acquired was $3,650,000. 

 

Fourth Quarter 2019 Highlights:

·

Company-owned same store net sales increased 4.7%, driven by a  6.4%  increase in To-Go same store net sales and a 26.0%  increase in Catering, marking nine of the ten prior quarters experiencing positive comparable sales.

·

Franchise-operated same store net sales increased 0.4% year-over-year.

·

Achieved 54% of restaurant sales, net in growing off-premise lines of business and 46% dine-in.

·

Net loss of $1.8 million, driven by acquisition and pre-opening costs.

·

Formed a subsidiary with Clark Championship Products LLC with an exclusive license to sell Clark Crew BBQ sauces, rubs and other consumer packaged goods, and opened the first Clark Crew BBQ restaurant in Oklahoma City, Oklahoma.

·

Opened a 3,000 square foot Famous Dave’s restaurant in Minneapolis, Minnesota.

Full Year 2019 Highlights 2019:

·

Company-owned same store net sales increased 2.0%, driven by a 6.9% increase in To-Go same store net sales and a 13.7%  increase in Catering.

·

Franchise-operated same store net sales increased 1.0% year-over-year.

·

51% of net restaurant revenue was generated from off-premise sales with 49% from dine-in sales.

·

Net loss of $649,000, driven by acquisition and pre-opening costs.

·

Adjusted EBITDA of $3.8 million.

·

Approximately 167,178 signups for our loyalty app since it was launched in December 2018, which generated $4.6 million of system-wide sales in 2019.

·

Reacquired 17 Famous Dave’s franchise stores

Executive Comments

Jeff Crivello, CEO, commented, “The fourth quarter and full year 2019 was focused on moving our growth initiatives forward. We expect a twelve-month transition period to make all necessary improvements to the Famous Dave’s restaurants that we reacquired. In December, we opened the first Clark Crew BBQ in Oklahoma City, which is seeing an enormous amount of demand. Also in December, we opened a 3,000 square foot bar-centric Famous Dave’s in Uptown Minneapolis, which is tracking toward our goals. 

Our Company-owned restaurants have generated positive comparable sales for nine of the last ten quarters, a statistic that separates us from almost every other multi-location restaurant operator within our industry, and our franchisees have sustained their positive comparable sales trend for this year. 

Subsequently, we closed on the acquisition of eighteen Granite City Food & Brewery locations and one Real Urban BBQ. 

The effect of the Coronavirus on our business, and restaurant industry will be drastic, but we have taken operational and financial measures to help navigate through the next few difficult months. The ultimate financial impairment is unknown without knowing the duration of the forced dining room closures. We remain committed to our Famous guests and staff members that we will get through this tough period.”

 

 

 

Key Operating Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

Year Ended

 

    

December 29, 2019

    

December 30, 2018

 

 

 

December 29, 2019

    

December 30, 2018

Restaurant count:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Franchise-operated

 

 

96

 

 

127

 

 

 

96

 

 

127

 

Company-owned

 

 

32

 

 

17

 

 

 

32

 

 

17

 

Total

 

 

128

 

 

144

 

 

 

128

 

 

144

 

Same store net restaurant sales %:

 

 

  

 

 

  

 

 

 

  

 

 

  

 

Franchise-operated, domestic

 

 

0.7

%  

 

(1.0)

%  

 

 

1.2

%  

 

(1.9)

%  

Franchise-operated, international(1)

 

 

(9.9)

%  

 

(25.8)

%  

 

 

(7.3)

%  

 

(12.0)

%  

Franchise-operated total

 

 

0.4

%  

 

(1.8)

%  

 

 

1.0

%  

 

(2.9)

%  

Company-owned

 

 

4.7

%  

 

2.2

%  

 

 

2.0

%  

 

2.7

%  

Total

 

 

0.9

%  

 

(1.3)

%  

 

 

1.1

%  

 

(1.5)

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands, expect per share data)

 

 

  

 

 

  

 

 

 

  

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

System-wide restaurant sales(2)

 

$

76,940

 

$

83,412

 

 

$

333,695

 

$

358,073

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to shareholders

 

$

(1,788)

 

$

1,070

 

 

$

(649)

 

$

4,862

 

Adjusted net income attributable to shareholders(3)

 

 

(729)

 

 

1,138

 

 

 

1,410

 

 

5,304

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income attributable to shareholders, per diluted share

 

$

(0.20)

 

$

0.12

 

 

$

(0.07)

 

$

0.57

 

Adjusted net income attributable to shareholders, per diluted share(3)

 

 

(0.08)

 

 

0.13

 

 

 

0.15

 

 

0.62

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA(3)

 

$

(754)

 

$

1,226

 

 

$

3,751

 

$

7,736

 

 


(1)

International franchise comparable sales declines are primarily related to Puerto Rico, which closed as a result of effects of the hurricanes.

(2)

System-wide restaurant sales include sales for all Company-owned and franchise-operated restaurants, as reported by franchisees. Restaurant sales for franchise-operated restaurants are not revenues of the Company and are not included in the Company’s consolidated financial statements.

(3)

Adjusted net income (loss) from continuing operations and adjusted EBITDA are non-GAAP measures. A reconciliation of all non-GAAP measures to the most directly comparable GAAP measure is included in the accompanying financial tables.  See “Non-GAAP Reconciliation.”

Fourth Quarter 2019 Review

Total revenue for the fourth quarter of 2019 was $23.3 million, up 73.2% from the fourth quarter of 2018. The increase in year-over-year restaurant net sales for the quarter ended December 29, 2019 was driven primarily by the acquisition of Famous Dave’s stores in Colorado, Michigan, Ohio, Wisconsin, Indiana, Kentucky, Iowa, and Arizona and a 4.7% increase in company-owned same store net sales.    

On a weighted basis, same store net sales for our To-Go and Catering lines of business increased 6.4%  and 26.0%, respectively, in the fourth quarter of fiscal 2019 as compared to the prior year period, partially offset by a decline net sales, while To Go and Catering represented 36% and 18% of restaurant net sales, respectively.     

Restaurant-level operating margin, as a percentage of restaurant net sales, for Company-owned restaurants was (3.1)% in the fourth quarter of fiscal 2019 compared to (2.9)% in the fourth quarter of fiscal 2018. This decline in restaurant-level operating margin was primarily a result of acquisitions of new stores in 2019.

General and administrative expenses for the quarter ended  December 29, 2019 and December 30, 2018 represented approximately 14.8% and 15.4% of total revenues, respectively. While as a percentage of revenues general and administrative expenses decreased year over year, we incurred additional expenditures for acquisition costs and ongoing oversight of our new restaurants.

Page 2 of 9

Net loss attributable to shareholders was approximately $1.8 million, or $0.20 per share, in the fourth quarter of fiscal 2019 compared to net income attributable to shareholders of approximately $1.1 million, or $0.12  per share, in the fourth quarter of fiscal 2018.  Adjusted net loss attributable to shareholders, a non-GAAP measure, was approximately $729,000, or $0.08 per share, compared to adjusted net income attributable to shareholders of approximately $1.1 million, or $0.12 per diluted share, in the fourth quarter of fiscal 2018. A reconciliation between adjusted net income attributable to shareholders and its most directly comparable GAAP measure is included in the accompanying financial tables.

Fiscal Year 2019 Review

Total revenue for fiscal year 2019 was $82.3 million, up 49.9% from fiscal year 2018. The increase in year-over-year restaurant net sales for the year ended December 29, 2019 was driven primarily by the acquisition of Famous Dave’s stores in Colorado, Michigan, Ohio, Wisconsin, Indiana, Kentucky, Iowa, and Arizona and an increase in company-owned same store net sales of 2.0%, partially offset by corporate restaurant closures. 

On a weighted basis, same store net sales for our To-Go and Catering lines of business increased 6.9%  and 13.7%, respectively, in fiscal 2019 as compared to fiscal 2018, partially offset by a decline in our Dine In line of business of 4.3%. During fiscal 2019, Dine In represented approximately 49% of our total restaurant net sales, while To Go and Catering represented 36% and 15% of restaurant net sales, respectively.  

Restaurant-level operating margin, as a percentage of restaurant net sales, for Company-owned restaurants was (0.1)% in fiscal 2019 compared to 1.3% in fiscal 2018. This decline in restaurant-level operating margin in 2019 was primarily a result of the acquisitions of new restaurants which our company committed additional expenditures in order to improve operations.

General and administrative expenses for the fiscal years ended  December 29, 2019 and December 30, 2018 represented approximately 13.4% and 14.6% of total revenues, respectively. While as a percentage of revenues general and administrative expenses decreased year over year, we incurred additional expenditures for acquisition costs and ongoing oversight of our new restaurants.

Net loss attributable to shareholders was approximately $649,000, or $0.07 per share, in fiscal 2019 compared to net income attributable to shareholders of approximately $4.9 million, or $0.56 per diluted share, in fiscal 2018. Adjusted net income attributable to shareholders, a non-GAAP measure, was approximately $1.4 million, or $0.15 per diluted share, compared to adjusted net income attributable to shareholders of approximately $5.3 million, or $0.62 per diluted share, in fiscal 2018. A reconciliation between adjusted net income attributable to shareholders and its most directly comparable GAAP measure is included in the accompanying financial tables.

About BBQ Holdings

BBQ Holdings, Inc. (NASDAQ: BBQ) BBQ Holdings is a national restaurant company engaged in the ownership and operation of casual and fast dining restaurants.  As of March 27, 2020,  BBQ Holdings had four brands with 139 overall locations in 28 states and three countries, including 48 company-owned and 91 franchise-operated restaurants. While BBQ Holdings continues to diversify its ownership in the restaurant community, it was founded with the principle of combining the “art and science” of barbecue to serve up the very best of the best to barbecue lovers everywhere. BBQ Holdings, through partnerships, has extended Travis Clark’s award winning line of barbecue sauces, rubs and seasonings into the retail market. Along with a wide variety of BBQ favorites served at their BBQ restaurants, BBQ Holdings newest addition, Granite City Food and Brewery, offers award winning craft beer and a made-from-scratch, chef driven menu featuring contemporary American cuisine.    

Non-GAAP Financial Measures

To supplement its consolidated financial statements, which are prepared and presented in accordance with accounting principles generally accepted in the United States (“GAAP”), the Company uses non-GAAP measures including those indicated below. These non-GAAP measures exclude significant expenses and income that are required by GAAP to be recorded in the Company’s consolidated financial statements and are subject to inherent limitations. By providing non-GAAP measures, together with a reconciliation to the most comparable GAAP measure, the Company believes that it is enhancing investors’ understanding of the Company’s business and results of operations. These measures are not intended to be considered in isolation of, as substitutes for, or superior to, financial measures prepared and presented in accordance with GAAP. The non-GAAP measures presented may be different from the measures used by other companies. The Company urges investors to review the reconciliation of its non-GAAP measures to the most directly comparable GAAP measure, included in the accompanying financial tables.

Page 3 of 9

Adjusted net income attributable to shareholders is net income attributable to shareholders, plus asset impairment, estimated lease termination charges and other closing costs, settlement agreements, net (loss) gain on disposal of equipment, stock-based compensation, severance, acquisition costs, and the related tax impact. This number is divided by the weighted-average number of diluted shares of common stock outstanding during each period presented to arrive at adjusted net income, per share. Adjusted EBITDA is net income (loss),  plus asset impairment, estimated lease termination charges and other closing costs, settlement agreements, depreciation and amortization, interest expense, net, net (loss) gain on disposal of equipment, stock-based compensation, severance, acquisition costs and provision (benefit) for income taxes.

Forward-Looking Statements

Statements in this press release that are not strictly historical, including but not limited to statements regarding the timing of the Company’s restaurant openings, the timing of refreshes and the timing or success of refranchising plans, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, which may cause the Company’s actual results to differ materially from expected results. Although the Company believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectation will be attained. Factors that could cause actual results to differ materially from the Company’s expectation include the impact of the COVID-19 virus pandemic, financial performance, restaurant industry conditions, execution of restaurant development and construction programs, franchisee performance, changes in local or national economic conditions, availability of financing, governmental approvals and other risks detailed from time to time in the Company’s SEC reports.

Contact:Jeff Crivello – Chief Executive Officer
952-294-1300

Darrow Associates, Inc.
Peter Seltzberg – Managing Director
516-419-9915
pseltzberg@darrowir.com

Page 4 of 9

BBQ HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

 (in thousands, except per share data)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Year Ended

 

 

December 29, 2019

 

December 30, 2018

 

December 29, 2019

    

December 30, 2018

 

Revenue:

 

  

 

 

  

 

 

  

 

 

  

 

Restaurant sales, net

$

19,952

 

$

9,480

 

$

67,278

 

$

38,051

 

Franchise royalty and fee revenue

 

2,566

 

 

3,248

 

 

12,126

 

 

13,871

 

Franchisee national advertising fund contributions

 

341

 

 

437

 

 

1,616

 

 

1,932

 

Licensing and other revenue

 

410

 

 

268

 

 

1,249

 

 

1,034

 

Total revenue

 

23,269

 

 

13,433

 

 

82,269

 

 

54,888

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses:

 

  

 

 

  

 

 

  

 

 

  

 

Food and beverage costs

 

6,473

 

 

3,066

 

 

21,541

 

 

11,973

 

Labor and benefits costs

 

7,312

 

 

3,505

 

 

24,565

 

 

13,663

 

Operating expenses

 

6,780

 

 

3,186

 

 

21,269

 

 

11,932

 

Depreciation and amortization expenses

 

876

 

 

281

 

 

2,231

 

 

1,264

 

General and administrative expenses

 

3,445

 

 

2,066

 

 

10,992

 

 

7,988

 

National advertising fund expenses

 

341

 

 

437

 

 

1,616

 

 

1,932

 

Asset impairment, estimated lease termination charges and other closing costs, net

 

578

 

 

 2

 

 

1,296

 

 

145

 

Pre-opening expenses

 

366

 

 

 —

 

 

460

 

 

 —

 

(Gain) loss on disposal of property and bargain purchases, net

 

100

 

 

 —

 

 

(74)

 

 

29

 

Total costs and expenses

 

26,271

 

 

12,543

 

 

83,896

 

 

48,926

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) income from operations

 

(3,002)

 

 

890

 

 

(1,627)

 

 

5,962

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

  

 

 

  

 

 

  

 

 

  

 

Interest expense

 

(102)

 

 

(71)

 

 

(494)

 

 

(493)

 

Interest income

 

101

 

 

43

 

 

215

 

 

122

 

Total other expense

 

(1)

 

 

(28)

 

 

(279)

 

 

(371)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) income before income taxes

 

(3,003)

 

 

862

 

 

(1,906)

 

 

5,591

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax benefit (expense)

 

684

 

 

208

 

 

659

 

 

(729)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income

 

(2,319)

 

 

1,070

 

 

(1,247)

 

 

4,862

 

Less: Net loss attributable to non-controlling interest

 

531

 

 

 —

 

 

598

 

 

 —

 

Net (loss) income attributable to shareholders

$

(1,788)

 

$

1,070

 

$

(649)

 

$

4,862

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic net (loss) income per share attributable to shareholders

$

(0.20)

 

$

0.12

 

$

(0.07)

 

$

0.57

 

Diluted net (loss) income per share attributable to shareholders

$

(0.20)

 

$

0.12

 

$

(0.07)

 

$

0.56

 

Weighted average shares outstanding - basic

 

9,117

 

 

9,092

 

 

9,099

 

 

8,599

 

Weighted average shares outstanding - diluted

 

9,117

 

 

9,098

 

 

9,099

 

 

8,624

 

Page 5 of 9

BBQ HOLDINGS, INC. AND SUBSIDIARIES

OPERATING RESULTS

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Year Ended

 

 

 

 

December 29, 2019

    

December 30, 2018

    

    

December 29, 2019

    

December 30, 2018

    

    

Food and beverage costs(1)

 

32.4

%  

32.3

%  

 

32.0

%  

31.5

%  

 

Labor and benefits costs(1)

 

36.6

%  

37.0

%  

 

36.5

%  

35.9

%  

 

Operating expenses(1)

 

34.0

%  

33.6

%  

 

31.6

%  

31.4

%  

 

Restaurant level operating margin(1)(3)  

 

(3.1)

%  

(2.9)

%  

 

(0.1)

%  

1.3

%  

 

Depreciation and amortization expenses(2)

 

3.8

%  

2.1

%  

 

2.7

%  

2.3

%  

 

General and administrative expenses(2)

 

14.8

%  

15.4

%  

 

13.4

%  

14.6

%  

 

(Loss) income from operations(2)

 

(12.9)

%  

6.6

%  

 

(2.0)

%  

10.9

%  

 


(1)

As a percentage of restaurant sales, net

(2)

As a percentage of total revenue

(3)

Restaurant level margins are equal to restaurant sales, net, less restaurant level food and beverage costs, labor and benefit costs, and operating expenses.

Page 6 of 9

BBQ HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

 (in thousands, except per share data)

(unaudited)

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

Current assets:

 

December 29, 2019

    

December 30, 2018

Cash and cash equivalents

 

$

5,325

 

$

11,598

Restricted cash

 

 

761

 

 

842

Accounts receivable, net of allowance for doubtful accounts of $132,000 and $192,000, respectively

 

 

4,379

 

 

4,300

Inventories

 

 

1,346

 

 

722

Prepaid income taxes and income taxes receivable

 

 

264

 

 

377

Prepaid expenses and other current assets

 

 

1,356

 

 

1,363

Assets held for sale

 

 

2,842

 

 

 —

Total current assets

 

 

16,273

 

 

19,202

 

 

 

 

 

 

 

Property, equipment and leasehold improvements, net

 

 

19,756

 

 

10,385

 

 

 

 

 

 

 

Other assets:

 

 

  

 

 

  

Operating lease right-of-use assets

 

 

25,962

 

 

 —

Goodwill

 

 

640

 

 

61

Intangible assets, net

 

 

2,213

 

 

1,428

Deferred tax asset, net

 

 

6,646

 

 

5,747

Other assets

 

 

1,591

 

 

1,533

 

 

$

73,081

 

$

38,356

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

  

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

  

 

 

  

Accounts payable

 

$

3,967

 

$

3,765

Current portion of lease liabilities

 

 

4,230

 

 

 —

Current portion of long-term debt and financing lease obligations

 

 

616

 

 

1,369

Accrued compensation and benefits

 

 

2,694

 

 

808

Other current liabilities

 

 

4,975

 

 

2,970

Total current liabilities

 

 

16,482

 

 

8,912

 

 

 

  

 

 

  

Long-term liabilities:

 

 

  

 

 

  

Lease liabilities, less current portion

 

 

26,957

 

 

 —

Long-term debt, less current portion

 

 

6,258

 

 

2,411

Other liabilities

 

 

1,610

 

 

4,492

Total liabilities

 

 

51,307

 

 

15,815

 

 

 

 

 

 

 

Shareholders’ equity:

 

 

  

 

 

  

Common stock, $.01 par value, 100,000 shares authorized, 9,272 and 9,085 shares issued and outstanding at December 29, 2019 and December 30, 2018, respectively

 

 

93

 

 

91

Additional paid-in capital

 

 

7,856

 

 

7,375

Retained earnings

 

 

14,423

 

 

15,075

Total shareholders’ equity

 

 

22,372

 

 

22,541

Non-controlling interest

 

 

(598)

 

 

 —

Total equity

 

 

21,774

 

 

22,541

 

 

$

73,081

 

$

38,356

 

Page 7 of 9

BBQ HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

 (in thousands)

(unaudited)

 

 

 

 

 

 

 

 

 

 

Year Ended

 

    

December 29, 2019

    

December 30, 2018

Cash flows from operating activities:

 

 

  

 

 

  

Net (loss) income

 

$

(1,247)

 

$

4,862

Adjustments to reconcile net income to cash flows provided by operations:

 

 

  

 

 

  

Depreciation and amortization

 

 

2,231

 

 

1,264

Stock-based compensation

 

 

463

 

 

278

Net (gain) loss on disposal of property and bargain purchases

 

 

(74)

 

 

29

Asset impairment, estimated lease termination charges and other closing costs (gain), net

 

 

1,273

 

 

(46)

Bad debts recovery

 

 

239

 

 

(30)

Deferred income taxes

 

 

(688)

 

 

639

Other non-cash items

 

 

291

 

 

(515)

Changes in operating assets and liabilities:

 

 

 

 

 

 

Accounts receivable, net

 

 

(1,582)

 

 

(225)

Other assets

 

 

(449)

 

 

(389)

Accounts payable

 

 

258

 

 

(600)

Accrued and other liabilities

 

 

1,867

 

 

(1,390)

Cash flows provided by operating activities

 

 

2,582

 

 

3,877

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

  

 

 

  

Proceeds from the sale of assets

 

 

33

 

 

1,187

Purchases of property, equipment and leasehold improvements

 

 

(6,755)

 

 

(953)

Payments for acquired restaurants

 

 

(6,188)

 

 

(229)

Advances on notes receivable

 

 

(150)

 

 

(750)

Purchases of held to maturity securities

 

 

 —

 

 

(6,995)

Maturity of held to maturity securities

 

 

 —

 

 

6,995

Payments received on note receivable

 

 

31

 

 

 —

Cash flows used for investing activities

 

 

(13,029)

 

 

(745)

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

  

 

 

  

Proceeds from long-term debt

 

 

4,300

 

 

 —

Payments for debt issuance costs

 

 

(54)

 

 

 —

Payments on long-term debt and financing lease obligations

 

 

(175)

 

 

(6,758)

Proceeds from sale of common stock, net of offering costs

 

 

 —

 

 

5,120

Proceeds from exercise of stock options

 

 

22

 

 

520

Cash provided by (used for) financing activities

 

 

4,093

 

 

(1,118)

 

 

 

 

 

 

 

(Decrease) increase in cash, cash equivalents and restricted cash

 

 

(6,354)

 

 

2,014

Cash, cash equivalents and restricted cash, beginning of period

 

 

12,440

 

 

10,426

Cash, cash equivalents and restricted cash, end of period

 

$

6,086

 

$

12,440

 

Page 8 of 9

 

BBQ HOLDINGS, INC. AND SUBSIDIARIES

NON-GAAP RECONCILIATION

(in thousands, except per share data)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

Year Ended

(dollars in thousands)

    

December 29, 2019

    

December 30, 2018

 

 

 

December 29, 2019

 

    

December 30, 2018

Net income attributable to shareholders

 

$

(1,788)

 

$

1,070

 

 

 

(649)

 

 

4,862

Asset impairment and estimated lease termination charges and other closing costs

 

 

578

 

 

 2

 

 

 

1,296

 

 

145

Net gain on disposal of equipment

 

 

100

 

 

 —

 

 

 

(74)

 

 

29

Stock-based compensation

 

 

109

 

 

53

 

 

 

463

 

 

278

Acquisition costs

 

 

301

 

 

 —

 

 

 

1,071

 

 

 —

Pre-opening costs

 

 

284

 

 

 —

 

 

 

378

 

 

 —

Severance

 

 

 —

 

 

 —

 

 

 

13

 

 

58

Tax adjustment

 

 

(312)

 

 

13

 

 

 

(1,088)

 

 

(68)

Adjusted net income

 

$

(729)

 

$

1,138

 

 

$

1,410

 

$

5,304

Basic adjusted net income per common share

 

$

(0.08)

 

$

0.13

 

 

$

0.15

 

$

0.62

Diluted adjusted net income per common share

 

$

(0.08)

 

$

0.13

 

 

$

0.15

 

$

0.62

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common share outstanding - basic

 

 

9,117

 

 

9,092

 

 

 

9,099

 

 

8,599

Weighted average common share outstanding - diluted

 

 

9,117

 

 

9,098

 

 

 

9,099

 

 

8,624

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

(2,319)

 

$

1,070

 

 

$

(1,247)

 

$

4,862

Asset impairment and estimated lease termination charges and other closing costs

 

 

578

 

 

 2

 

 

 

1,296

 

 

145

Depreciation and amortization

 

 

876

 

 

281

 

 

 

2,231

 

 

1,264

Interest expense, net

 

 

 1

 

 

28

 

 

 

279

 

 

371

Net (gain) loss on disposal of equipment

 

 

100

 

 

 —

 

 

 

(74)

 

 

29

Stock-based compensation

 

 

109

 

 

53

 

 

 

463

 

 

278

Acquisition costs

 

 

301

 

 

 —

 

 

 

1,071

 

 

 —

Pre-opening costs

 

 

284

 

 

 —

 

 

 

378

 

 

 —

Severance

 

 

 —

 

 

 —

 

 

 

13

 

 

58

Provision for income taxes

 

 

(684)

 

 

(208)

 

 

 

(659)

 

 

729

Adjusted EBITDA

 

$

(754)

 

$

1,226

 

 

$

3,751

 

$

7,736

 

Page 9 of 9