Company Quick10K Filing
Quick10K
Habit Restaurants
10-Q 2019-06-25 Quarter: 2019-06-25
10-Q 2019-03-26 Quarter: 2019-03-26
10-K 2018-12-25 Annual: 2018-12-25
10-Q 2018-09-25 Quarter: 2018-09-25
10-Q 2018-06-26 Quarter: 2018-06-26
10-Q 2018-03-27 Quarter: 2018-03-27
10-K 2017-12-26 Annual: 2017-12-26
10-Q 2017-09-26 Quarter: 2017-09-26
10-Q 2017-06-27 Quarter: 2017-06-27
10-Q 2017-03-28 Quarter: 2017-03-28
10-K 2016-12-27 Annual: 2016-12-27
10-Q 2016-09-27 Quarter: 2016-09-27
10-Q 2016-06-28 Quarter: 2016-06-28
10-Q 2016-03-29 Quarter: 2016-03-29
10-K 2015-12-29 Annual: 2015-12-29
10-Q 2015-09-29 Quarter: 2015-09-29
10-Q 2015-06-30 Quarter: 2015-06-30
10-Q 2015-03-31 Quarter: 2015-03-31
10-K 2014-12-30 Annual: 2014-12-30
8-K 2019-07-31 Earnings, Exhibits
8-K 2019-06-19 Shareholder Vote
8-K 2019-05-01 Earnings, Exhibits
8-K 2019-02-28 Earnings, Exhibits
8-K 2018-12-04 Other Events, Exhibits
8-K 2018-10-30 Earnings, Exhibits
8-K 2018-10-29 Other Events, Exhibits
8-K 2018-10-23 Officers, Exhibits
8-K 2018-08-01 Earnings, Exhibits
8-K 2018-07-01 Officers, Exhibits
8-K 2018-06-20 Shareholder Vote
8-K 2018-05-02 Earnings, Exhibits
8-K 2018-03-12 Officers, Exhibits
8-K 2018-02-28 Earnings, Exhibits
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CBRL Cracker Barrel Old Country Store 3,838
SHAK Shake Shack 3,037
JACK Jack In The Box 2,212
EAT Brinker 1,444
BJRI BJS Restaurants 753
RUTH Ruths Hospitality Group 580
BOJA Bojangles' 565
NYNY Empire Resorts 333
ARKR Ark Restaurants 71
HABT 2019-06-25
Part I-Financial Information
Item 1. Financial Statements
Note 1-Nature of Operations and Basis of Presentation
Note 2-Summary of Significant Accounting Policies
Note 3-Non-Controlling Interests
Note 4-Fair Value Measurements
Note 5-Property and Equipment, Net
Note 6-Income Taxes
Note 7-Long-Term Debt
Note 8-Leases
Note 9-Commitments and Contingencies
Note 10-Management Incentive Plans
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosure About Market Risk
Item 4. Controls and Procedures
Part Ii-Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
Item 3. Defaults Upon Senior Securities.
Item 4. Mine Safety Disclosures.
Item 5. Other Information.
Item 6. Exhibits
EX-31.1 habt-ex311_8.htm
EX-31.2 habt-ex312_6.htm
EX-32.1 habt-ex321_7.htm
EX-32.2 habt-ex322_9.htm

Habit Restaurants Earnings 2019-06-25

HABT 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

10-Q 1 habt-10q_20190625.htm 10-Q habt-10q_20190625.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

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

For the quarterly period ended June 25, 2019

OR

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

Commission file number: 001-36749

 

THE HABIT RESTAURANTS, INC.

(Exact Name of Registrant as Specified in Its Charter)

 

Delaware

 

36-4791171

(State or Other Jurisdiction of

Incorporation or Organization)

 

(I.R.S. Employer

Identification No.)

17320 Red Hill Avenue, Suite 140, Irvine, CA 92614

(Address of Principal Executive Offices and Zip Code)

(949) 851-8881

(Registrant’s Telephone Number, Including Area Code)

 

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

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

 Class A Common Stock, $0.01 Par Value

 HABT

Nasdaq Global Market

 

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 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, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “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, 2019, there were 20,756,052 shares of the Registrant’s Class A common stock, par value $0.01 per share, outstanding and 5,353,889 shares of the Registrant’s Class B common stock, par value $0.01 per share, outstanding.

 

 

 


 

THE HABIT RESTAURANTS, INC.

TABLE OF CONTENTS

 

 

  

 

Page

 

 

PART I – FINANCIAL INFORMATION

 

3

ITEM 1.

 

Financial Statements

 

3

 

 

Condensed Consolidated Balance Sheets (Unaudited)

 

3

 

 

Condensed Consolidated Statements of Income (Unaudited)

 

4

 

 

Condensed Consolidated Statement of Changes in Stockholders’ Equity (Unaudited)

 

5

 

 

Condensed Consolidated Statements of Cash Flows (Unaudited)

 

7

 

 

Notes to Condensed Consolidated Financial Statements (Unaudited)

 

8

ITEM 2.

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

20

ITEM 3.

 

Quantitative and Qualitative Disclosures About Market Risk

 

33

ITEM 4.

 

Controls and Procedures

 

33

 

 

PART II – OTHER INFORMATION

 

35

ITEM 1.

 

Legal Proceedings

 

35

ITEM 1A.

 

Risk Factors

 

35

ITEM 2.

 

Unregistered Sales of Equity Securities and Use of Proceeds

 

35

ITEM 3.

 

Defaults Upon Senior Securities

 

35

ITEM 4.

 

Mine Safety Disclosures

 

35

ITEM 5.

 

Other Information

 

35

ITEM 6.

 

Exhibits

 

36

 

 

Signatures

 

37

 

2


 

PART I-FINANCIAL INFORMATION

ITEM 1. Financial Statements

THE HABIT RESTAURANTS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

 

 

 

 

 

 

 

 

 

 

 

June 25,

 

 

December 25,

 

 

 

2019

 

 

2018

 

(in thousands, except share data)

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

29,952

 

 

$

24,519

 

Restricted cash

 

 

365

 

 

 

375

 

Accounts receivable

 

 

5,970

 

 

 

7,648

 

Inventory

 

 

2,057

 

 

 

2,019

 

Prepaid expenses and other current assets

 

 

1,862

 

 

 

3,383

 

Total current assets

 

 

40,206

 

 

 

37,944

 

Property and equipment, net

 

 

150,009

 

 

 

160,746

 

Operating lease right-of-use assets

 

 

156,985

 

 

 

 

Tradenames

 

 

12,500

 

 

 

12,500

 

Goodwill

 

 

9,967

 

 

 

9,967

 

Deposits and other assets, net

 

 

4,187

 

 

 

3,531

 

Deferred tax assets

 

 

86,896

 

 

 

87,918

 

Total long-term assets

 

 

420,544

 

 

 

274,662

 

Total assets

 

$

460,750

 

 

$

312,606

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

$

16,364

 

 

$

15,034

 

Employee-related accruals

 

 

14,572

 

 

 

12,587

 

Accrued expenses

 

 

6,572

 

 

 

5,799

 

Income tax payable

 

 

91

 

 

 

104

 

Amounts payable to related parties under Tax Receivable Agreement, current portion

 

 

441

 

 

 

552

 

Sales taxes payable

 

 

2,728

 

 

 

3,072

 

Operating lease liabilities, current portion

 

 

21,418

 

 

 

 

Deferred rent, current portion

 

 

 

 

 

1,884

 

Deferred franchise income, current portion

 

 

154

 

 

 

230

 

Total current liabilities

 

 

62,340

 

 

 

39,262

 

Operating lease liabilities, net of current portion

 

 

160,996

 

 

 

 

Deferred rent, net of current portion

 

 

 

 

 

20,598

 

Deemed landlord financing

 

 

 

 

 

19,804

 

Deferred franchise income, net of current portion

 

 

865

 

 

 

806

 

Amounts payable to related parties under Tax Receivable Agreement, net of current portion

 

 

82,341

 

 

 

82,142

 

Total liabilities

 

 

306,542

 

 

 

162,612

 

Commitments and contingencies (Note 9)

 

 

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

 

 

 

Class A common stock, par value $0.01 per share; 70,000,000 shares authorized and 20,752,402 shares issued and outstanding at June 25, 2019 and 20,667,718 shares issued and outstanding at December 25, 2018.

 

 

208

 

 

 

207

 

Class B common stock, par value $0.01 per share; 70,000,000 shares authorized and 5,355,389 shares issued and outstanding at June 25, 2019 and 5,381,550 shares issued and outstanding at December 25, 2018.

 

 

54

 

 

 

54

 

Additional paid-in capital

 

 

118,580

 

 

 

117,053

 

Retained earnings

 

 

9,427

 

 

 

6,921

 

The Habit Restaurants, Inc. stockholders’ equity

 

 

128,269

 

 

 

124,235

 

Non-controlling interests

 

 

25,939

 

 

 

25,759

 

Total stockholders’ equity

 

 

154,208

 

 

 

149,994

 

Total liabilities and stockholders’ equity

 

$

460,750

 

 

$

312,606

 

See notes to condensed consolidated financial statements (unaudited).

3


 

THE HABIT RESTAURANTS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

 

 

 

13 Weeks Ended

 

 

26 Weeks Ended

 

 

 

June 25,

 

 

June 26,

 

 

June 25,

 

 

June 26,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

(amounts in thousands except share and per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

117,928

 

 

$

102,852

 

 

$

226,102

 

 

$

194,800

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restaurant operating costs (excluding depreciation and

   amortization)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Food and paper cost

 

 

35,057

 

 

 

30,597

 

 

 

67,393

 

 

 

58,532

 

Labor and related expenses

 

 

38,883

 

 

 

34,038

 

 

 

76,301

 

 

 

65,990

 

Occupancy and other operating expenses

 

 

22,364

 

 

 

17,801

 

 

 

43,707

 

 

 

33,737

 

General and administrative expenses

 

 

10,610

 

 

 

9,835

 

 

 

20,668

 

 

 

18,748

 

Exchange related expenses

 

 

 

 

 

 

 

 

 

 

 

130

 

Depreciation and amortization expense

 

 

6,856

 

 

 

6,021

 

 

 

13,464

 

 

 

11,604

 

Pre-opening costs

 

 

670

 

 

 

646

 

 

 

1,312

 

 

 

1,726

 

Loss on disposal of assets

 

 

53

 

 

 

 

 

 

96

 

 

 

12

 

Total operating expenses

 

 

114,493

 

 

 

98,938

 

 

 

222,941

 

 

 

190,479

 

Income from operations

 

 

3,435

 

 

 

3,914

 

 

 

3,161

 

 

 

4,321

 

Other (income) expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax Receivable Agreement liability adjustment

 

 

 

 

 

 

 

 

 

 

 

1,473

 

Interest (income) expense, net

 

 

(56

)

 

 

251

 

 

 

(99

)

 

 

477

 

Income before income taxes

 

 

3,491

 

 

 

3,663

 

 

 

3,260

 

 

 

2,371

 

Provision (benefit) for income taxes

 

 

811

 

 

 

834

 

 

 

811

 

 

 

(1,148

)

Net income

 

$

2,680

 

 

$

2,829

 

 

$

2,449

 

 

$

3,519

 

Less: net income attributable to non-controlling interests

 

 

(708

)

 

 

(773

)

 

 

(653

)

 

 

(808

)

Net income attributable to The Habit Restaurants, Inc.

 

$

1,972

 

 

$

2,056

 

 

$

1,796

 

 

$

2,711

 

Net income attributable to The Habit Restaurants, Inc. per share

   Class A common stock:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.10

 

 

$

0.10

 

 

$

0.09

 

 

$

0.13

 

Diluted

 

$

0.09

 

 

$

0.10

 

 

$

0.09

 

 

$

0.13

 

Weighted average shares of Class A common stock outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

20,739,625

 

 

 

20,505,049

 

 

 

20,707,767

 

 

 

20,472,151

 

Diluted

 

 

20,787,147

 

 

 

20,592,768

 

 

 

20,754,935

 

 

 

20,543,412

 

See notes to condensed consolidated financial statements (unaudited).

4


 

THE HABIT RESTAURANTS, INC.

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED)

FOR THE 26 WEEKS ENDED JUNE 25, 2019 AND JUNE 26, 2018

 

 

 

Common Stock A

 

 

Common Stock B

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(amounts in thousands except share data)

 

Shares

 

 

Amounts

 

 

Shares

 

 

Amounts

 

 

Additional Paid-

in Capital

 

 

Retained Earnings

 

 

Non-controlling

Interests

 

 

Total

 

Stockholders’ equity at

   December 26, 2017

 

 

20,378,452

 

 

$

204

 

 

 

5,646,572

 

 

$

56

 

 

$

113,475

 

 

$

4,144

 

 

$

26,270

 

 

$

144,149

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,711

 

 

 

808

 

 

 

3,519

 

Deferred tax assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(26

)

 

 

 

 

 

 

 

 

(26

)

Tax distributions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(81

)

 

 

(81

)

Other distributions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(33

)

 

 

(33

)

Exchanges

 

 

83,893

 

 

 

1

 

 

 

(83,893

)

 

 

(1

)

 

 

 

 

 

 

 

 

 

 

 

 

Restricted stock units vested

 

 

52,315

 

 

 

1

 

 

 

 

 

 

 

 

 

(1

)

 

 

 

 

 

 

 

 

 

Non-controlling interests

   adjustment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

733

 

 

 

 

 

 

(733

)

 

 

 

Forfeiture of Class B

   common stock

 

 

 

 

 

 

 

 

(28,950

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based

   compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,051

 

 

 

 

 

 

288

 

 

 

1,339

 

Stockholders’ equity at

   June 26, 2018

 

 

20,514,660

 

 

$

205

 

 

 

5,533,729

 

 

$

55

 

 

$

115,232

 

 

$

6,855

 

 

$

26,519

 

 

$

148,866

 

 

 

 

 

Common Stock A

 

 

Common Stock B

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(amounts in thousands except share data)

 

Shares

 

 

Amounts

 

 

Shares

 

 

Amounts

 

 

Additional Paid-

in Capital

 

 

Retained Earnings

 

 

Non-controlling

Interests

 

 

Total

 

Stockholders’ equity at

   December 25, 2018

 

 

20,667,718

 

 

$

207

 

 

 

5,381,550

 

 

$

54

 

 

$

117,053

 

 

$

6,921

 

 

$

25,759

 

 

$

149,994

 

Cumulative effect of accounting changes, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

710

 

 

 

255

 

 

 

965

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,796

 

 

 

653

 

 

 

2,449

 

Deferred tax assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(31

)

 

 

 

 

 

 

 

 

(31

)

Tax distributions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(646

)

 

 

(646

)

Other distributions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(11

)

 

 

(11

)

Exchanges

 

 

24,500

 

 

 

 

 

 

(24,500

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restricted stock units vested, net of shares withheld for tax withholding

 

 

60,184

 

 

 

1

 

 

 

 

 

 

 

 

 

(158

)

 

 

 

 

 

 

 

 

(157

)

Non-controlling interests

   adjustment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

305

 

 

 

 

 

 

(305

)

 

 

 

Forfeiture of Class B

   common stock

 

 

 

 

 

 

 

 

(1,661

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based

   compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,411

 

 

 

 

 

 

234

 

 

 

1,645

 

Stockholders’ equity at

   June 25, 2019

 

 

20,752,402

 

 

$

208

 

 

 

5,355,389

 

 

$

54

 

 

$

118,580

 

 

$

9,427

 

 

$

25,939

 

 

$

154,208

 

See notes to condensed consolidated financial statements (unaudited).


5


 

THE HABIT RESTAURANTS, INC.

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED)

FOR THE 13 WEEKS ENDED JUNE 25, 2019 AND JUNE 26, 2018

 

 

 

Common Stock A

 

 

Common Stock B

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(amounts in thousands except share data)

 

Shares

 

 

Amounts

 

 

Shares

 

 

Amounts

 

 

Additional Paid-

in Capital

 

 

Retained Earnings

 

 

Non-controlling

Interests

 

 

Total

 

Stockholders’ equity at

   March 27, 2018

 

 

20,488,849

 

 

$

205

 

 

 

5,578,616

 

 

$

56

 

 

$

114,404

 

 

$

4,798

 

 

$

25,944

 

 

$

145,407

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,056

 

 

 

773

 

 

 

2,829

 

Deferred tax assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(13

)

 

 

 

 

 

 

 

 

(13

)

Tax distributions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(17

)

 

 

(17

)

Other distributions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(12

)

 

 

(12

)

Exchanges

 

 

16,824

 

 

 

 

 

 

(16,824

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restricted stock units vested

 

 

8,987

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-controlling interests

   adjustment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

295

 

 

 

 

 

 

(295

)

 

 

 

Forfeiture of Class B

   common stock

 

 

 

 

 

 

 

 

(28,063

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based

   compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

546

 

 

 

 

 

 

126

 

 

 

672

 

Stockholders’ equity at

   June 26, 2018

 

 

20,514,660

 

 

$

205

 

 

 

5,533,729

 

 

$

55

 

 

$

115,232

 

 

$

6,855

 

 

$

26,519

 

 

$

148,866

 

 

 

 

 

Common Stock A

 

 

Common Stock B

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(amounts in thousands except share data)

 

Shares

 

 

Amounts

 

 

Shares

 

 

Amounts

 

 

Additional Paid-

in Capital

 

 

Retained Earnings

 

 

Non-controlling

Interests

 

 

Total

 

Stockholders’ equity at

   March 26, 2019

 

 

20,711,367

 

 

$

207

 

 

 

5,374,550

 

 

$

54

 

 

$

117,693

 

 

$

7,455

 

 

$

25,752

 

 

$

151,161

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,972

 

 

 

708

 

 

 

2,680

 

Deferred tax assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(24

)

 

 

 

 

 

 

 

 

(24

)

Tax distributions