BJs RESTAURANTS INC [BJRI] Filings

10-Q 1 bjri-10q_20220628.htm 10-Q bjri-10q_20220628.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended June 28, 2022

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______________ to ______

Commission file number 0-21423

BJ’S RESTAURANTS, INC.

(Exact name of registrant as specified in its charter)

California

33-0485615

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification Number)

7755 Center Avenue, Suite 300

Huntington Beach, California 92647

(714) 500-2400

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

Title of Each Class

Trading

Symbol

Name of each exchange on which registered

Common Stock, No Par Value

BJRI

NASDAQ Global Select Market

(Address, including zip code, and telephone number, including

area code, of registrant’s principal executive offices)

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every interactive data file required to be submitted pursuant to Rule 405 of Regulation S-T (section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company, or an emerging growth company. See definition of “accelerated filer,” “large accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

☑	Large accelerated filer	☐	Accelerated filer
☐	Non-accelerated filer	☐	Smaller reporting company
☐	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. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☑

As of July 29, 2022, there were 23,454,137 shares of Common Stock of the Registrant outstanding.

BJ’S RESTAURANTS, INC.

TABLE OF CONTENTS

		Page
PART I.	FINANCIAL INFORMATION

Item 1.	Consolidated Financial Statements

	Consolidated Balance Sheets – June 28, 2022 (Unaudited) and December 28, 2021	1

	Unaudited Consolidated Statements of Operations – Thirteen and Twenty-Six Weeks Ended June 28, 2022 and June 29, 2021	2
	Unaudited Consolidated Statements of Shareholders’ Equity – Thirteen and Twenty-Six Weeks Ended June 28, 2022 and June 29, 2021	3
	Unaudited Consolidated Statements of Cash Flows – Thirteen and Twenty-Six Weeks Ended June 28, 2022 and June 29, 2021	4

	Notes to Unaudited Consolidated Financial Statements	6

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	11

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	18

Item 4.	Controls and Procedures	19


PART II.	OTHER INFORMATION

Item 1.	Legal Proceedings	20

Item 1A.	Risk Factors	20

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	20

Item 6.	Exhibits	21


	SIGNATURES	22

PART I. FINANCIAL INFORMATION

Item 1. CONSOLIDATED FINANCIAL STATEMENTS

BJ’S RESTAURANTS, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands)

	June 28, 2022		December 28, 2021
	(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	37,761	$	38,527
Accounts and other receivables, net		22,827		29,055
Inventories, net		11,777		11,579
Prepaid expenses and other current assets		9,183		11,654
Total current assets		81,548		90,815

Property and equipment, net		500,396		506,111
Operating lease assets		369,357		365,244
Goodwill		4,673		4,673
Deferred income taxes		33,175		24,902
Other assets, net		41,966		43,421
Total assets	$	1,031,115	$	1,035,166

Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	47,874	$	48,840
Accrued expenses		103,688		112,354
Current operating lease obligations		39,981		39,240
Total current liabilities		191,543		200,434

Long-term operating lease obligations		435,578		436,016
Long-term debt		50,000		50,000
Other liabilities		13,650		14,945
Total liabilities		690,771		701,395

Commitments and contingencies

Shareholders’ equity:
Preferred stock, 5,000 shares authorized, none issued or outstanding		—		—
Common stock, no par value, 125,000 shares authorized and 23,439 and 23,304 shares issued and outstanding as of June 28, 2022 and December 28, 2021, respectively		—		—
Capital surplus		70,728		72,513
Retained earnings		269,616		261,258
Total shareholders’ equity		340,344		333,771
Total liabilities and shareholders’ equity	$	1,031,115	$	1,035,166

See accompanying notes to unaudited consolidated financial statements.

BJ’S RESTAURANTS, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

	For the Thirteen Weeks Ended						For the Twenty-Six Weeks Ended
	June 28, 2022			June 29, 2021			June 28, 2022			June 29, 2021
Revenues	$	329,697		$	290,283		$	628,426		$	513,590
Restaurant operating costs (excluding depreciation and amortization):
Cost of sales		90,928			75,586			172,394			131,735
Labor and benefits		123,111			104,218			239,397			185,898
Occupancy and operating		76,560			67,567			148,261			127,395
General and administrative		16,905			17,032			35,158			32,293
Depreciation and amortization		17,565			18,233			35,541			36,436
Restaurant opening		1,045			721			1,628			849
Loss on disposal and impairment of assets		438			252			595			525
Total costs and expenses		326,552			283,609			632,974			515,131
Income (loss) from operations		3,145			6,674			(4,548	)		(1,541	)

Other (expense) income:
Interest expense, net		(436	)		(1,594	)		(1,070	)		(2,996	)
Other (expense) income, net		(187	)		(8	)		(575	)		302
Total other expense		(623	)		(1,602	)		(1,645	)		(2,694	)
Income (loss) before income taxes		2,522			5,072			(6,193	)		(4,235	)

Income tax expense (benefit)		2,225			(1,297	)		(7,950	)		(7,463	)
Net income	$	297		$	6,369		$	1,757		$	3,228

Net income per share:
Basic	$	0.01		$	0.27		$	0.08		$	0.14
Diluted	$	0.01		$	0.26		$	0.07		$	0.13

Weighted average number of shares outstanding:
Basic		23,434			23,247			23,405			23,087
Diluted		23,576			24,252			23,658			24,083

See accompanying notes to unaudited consolidated financial statements.

BJ’S RESTAURANTS, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

(In thousands)

	For the Thirteen Weeks Ended
	Common Stock					Capital			Retained
	Shares		Amount			Surplus			Earnings		Total
Balance, March 30, 2021		23,219	$	—		$	67,289		$	257,994	$	325,283
Exercise of stock options		28		1,202			(301	)		—		901
Issuance of common stock		—		(50	)		—			—		(50	)
Issuance of restricted stock units		20		901			(915	)		—		(14	)
Reclassification of common stock		—		(2,053	)		—			2,053		—
Stock-based compensation		—		—			2,640			—		2,640
Adjustment to dividends previously accrued		—		—			—			5		5
Net income		—		—			—			6,369		6,369
Balance, June 29, 2021		23,267	$	—		$	68,713		$	266,421	$	335,134

Balance, March 29, 2022		23,416	$	—		$	69,326		$	268,336	$	337,662
Issuance of restricted stock units		23		978			(978	)		—		—
Reclassification of common stock		—		(978	)		—			978		—
Stock-based compensation		—		—			2,380			—		2,380
Adjustment to dividends previously accrued		—		—			—			5		5
Net income		—		—			—			297		297
Balance, June 28, 2022		23,439	$	—		$	70,728		$	269,616	$	340,344

	For the Twenty-Six Weeks Ended
	Common Stock					Capital			Retained
	Shares		Amount			Surplus			Earnings		Total
Balance, December 29, 2020		22,318	$	—		$	71,722		$	222,066	$	293,788
Exercise of stock options		122		6,394			(1,883	)		—		4,511
Issuance of common stock		704		28,907			—			—		28,907
Issuance of restricted stock units		123		5,816			(6,281	)		—		(465	)
Reclassification of common stock		—		(41,117	)		—			41,117		—
Stock-based compensation		—		—			5,155			—		5,155
Adjustment to dividends previously accrued		—		—			—			10		10
Net Income		—		—			—			3,228		3,228
Balance, June 29, 2021		23,267	$	—		$	68,713		$	266,421	$	335,134

Balance, December 28, 2021		23,304	$	—		$	72,513		$	261,258	$	333,771
Issuance of restricted stock units		135		6,593			(6,953	)		—		(360	)
Reclassification of common stock		—		(6,593	)		—			6,593		—
Stock-based compensation		—		—			5,168			—		5,168
Adjustment to dividends previously accrued		—		—			—			8		8
Net income		—		—			—			1,757		1,757
Balance, June 28, 2022		23,439	$	—		$	70,728		$	269,616	$	340,344

See accompanying notes to unaudited consolidated financial statements.

BJ’S RESTAURANTS, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

	For the Twenty-Six Weeks Ended
	June 28, 2022			June 29, 2021
Cash flows from operating activities:
Net income	$	1,757		$	3,228
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		35,541			36,436
Non-cash lease expense		16,585			15,419
Amortization of financing costs		109			283
Deferred income taxes		(8,273	)		(7,701	)
Stock-based compensation expense		4,999			4,983
Loss on disposal and impairment of assets		595			525
Changes in assets and liabilities:
Accounts and other receivables		7,557			(1,432	)
Inventories, net		95			58
Prepaid expenses and other current assets		2,052			1,574
Other assets, net		(810	)		5
Accounts payable		(5	)		9,337
Accrued expenses		(8,596	)		11,859
Operating lease obligations		(20,099	)		(21,335	)
Other liabilities		(1,295	)		259
Net cash provided by operating activities		30,212			53,498

Cash flows from investing activities:
Purchases of property and equipment		(31,119	)		(14,291	)
Proceeds from sale of assets		566			21
Net cash used in investing activities		(30,553	)		(14,270	)

Cash flows from financing activities:
Borrowings on line of credit		320,000			697,600
Payments on line of credit		(320,000	)		(732,600	)
Payments of debt issuance costs		(3	)		(315	)
Proceeds from issuance of common stock, net		—			28,907
Taxes paid on vested stock units under employee plans		(360	)		(938	)
Proceeds from exercise of stock options		—			4,511
Cash dividends accrued under stock compensation plans		(62	)		(82	)
Net cash used in financing activities		(425	)		(2,917	)

Net (decrease) increase in cash and cash equivalents		(766	)		36,311
Cash and cash equivalents, beginning of period		38,527			51,664
Cash and cash equivalents, end of period	$	37,761		$	87,975

See accompanying notes to unaudited consolidated financial statements.

BJ’S RESTAURANTS, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

	For the Twenty-Six Weeks Ended
	June 28, 2022		June 29, 2021
Supplemental disclosure of cash flow information:
Cash paid for income taxes	$	469	$	292
Cash paid for interest, net of capitalized interest	$	631

BJs RESTAURANTS INC [BJRI] Filings
10-Q	[2022-08-01]
10-Q	[2022-05-02]
10-K	[2022-02-25]
10-Q	[2021-11-01]
10-Q	[2021-08-02]
10-Q	[2021-05-04]
10-K	[2021-03-01]
10-Q	[2020-11-02]
10-Q	[2020-08-03]
10-Q	[2020-05-11]
10-K	[2020-02-25]
10-Q	[2019-11-04]
10-Q	[2019-08-05]
10-Q	[2019-05-07]
10-K	[2019-02-26]
10-Q	[2018-11-05]
10-Q	[2018-08-06]
10-Q	[2018-05-07]
10-K	[2018-02-26]
10-Q	[2017-11-06]
10-Q	[2017-08-08]
10-Q	[2017-05-09]
10-K	[2017-02-28]
10-Q	[2016-10-31]
10-Q	[2016-08-04]
10-Q	[2016-05-02]
10-K	[2016-02-23]
10-Q	[2015-11-03]
10-Q	[2015-08-03]
10-Q	[2015-05-04]
10-K	[2015-02-26]
10-Q	[2014-11-03]
10-Q	[2014-08-04]
10-Q	[2014-05-06]
10-K	[2014-02-25]
10-Q	[2013-11-05]
10-Q	[2013-08-05]
10-Q	[2013-05-06]
10-K	[2013-02-25]
10-Q	[2012-11-06]
10-Q	[2012-08-06]
10-Q	[2012-05-08]
10-K	[2012-02-28]