Bob Evans Farms, Inc.
Nov 19, 2012

Bob Evans Reports Fiscal 2013 Second-Quarter Results

Bob Evans Restaurants’ net sales increase 1.4%; reports positive same-store sales of 1.0%. BEF Foods’ net sales increase 6.3%; volume up 16.1%
Company announces 2Q 2013 earnings per diluted share of $0.36; non-GAAP EPS, adjusted for restructuring and other items, is $0.53 for the quarter, up 12.8% from last year. Both results are reduced by approximately $2.0 million of unusual and Farm Fresh Refresh program expense items which equate to $0.05 per diluted share
Company to accelerate Farm Fresh Refresh restaurant remodeling program with 56% of the chain to be remodeled by the end of fiscal 2013, and all 565 restaurants to be completed by the end of fiscal 2014, one year earlier than the prior projection
Integration of Kettle Creations on schedule; a key component of BEF Foods’ strategy to aggressively grow its side dish business and internalize manufacturing capability; acquisition raises level of vertical integration from 55% to 82%
Company exploring strategic alternatives for its Mimi’s Café business segment
Company reaffirms fiscal year 2013 EPS guidance of $2.67 to $2.73. Board of Directors approves 27.5 cents per share dividend payable to shareholders of record as of November 26, 2012
Company raises long-term annual non-GAAP EPS growth guidance to 8 to 12 percent, from the previous guidance range of 7 to 10 percent

COLUMBUS, Ohio – November 19, 2012 – Bob Evans Farms, Inc (NASDAQ: BOBE) today announced its results for the fiscal 2013 second quarter ended Friday, October 26, 2012.

Second-quarter fiscal 2013 commentary

Chairman and Chief Executive Officer Steve Davis said the second-quarter operating results of the Company’s two Bob Evans-branded business segments, Bob Evans Restaurants and BEF Foods, reflect the positive impact of recent investments in growth and productivity initiatives designed to position the Company for continued sustainable revenue and profit growth in fiscal 2013 and beyond. 

Davis noted, “Bob Evans Restaurants has generated positive same-store sales for three of the last four quarters based upon our guests’ favorable reactions to both the Farm Fresh Refresh remodeling program and our launch of value-oriented sales layers available at every day part.  All of our sales layers – dine-in, carryout, bakery and catering – are contributing to both the revenue and margin lift we are generating through the Farm Fresh Refresh remodels.  In response to consistently high returns on investment, positive guest feedback, and operating results, we are accelerating the rollout of the Farm Fresh Refresh program.  We now expect to have the entire chain remodeled by the end of fiscal 2014, one year ahead of our original plan.

“BEF Foods is also performing well with positive volume gains in three of the last four quarters.  Our high-growth refrigerated side dish business, up more than 12% during the second quarter, and food service business, up more than 44% during the second quarter, continue to drive revenue growth and enhance the margin structure of the business.  The acquisition of the Kettle Creations® brand and manufacturing facility at the beginning of the second quarter raises the level of vertical integration within BEF Foods to 82%, and enables us to continue growing and innovating economically with side dish products to serve our retail and food service customers.”

Davis continued, “The sustainability and long-term growth potential of the transformations we have achieved in our core Bob Evans Restaurants and BEF Foods segments provide us with the confidence to raise our long-term annual non-GAAP EPS growth guidance to 8 to 12 percent, from the previous guidance range of 7 to 10 percent.  Furthermore, the strategic fit and long-term growth potential of Mimi’s Café relative to our other businesses prompted us to initiate a process to evaluate our strategic alternatives for that segment, including but not limited to a potential sale.  We have been working with our independent financial advisor, Lazard, to assist us in that process.”  

Second-quarter fiscal 2013 consolidated results

The Company reported consolidated operating income of $16.8 million in the second quarter of fiscal 2013. The second-quarter results include the negative net pretax impact of $7.2 million, or $4.8 million after-tax, from the following items:

 

Excluding the $7.2 million negative net impact of these charges, the Company’s second quarter fiscal 2013 reported operating income would have been approximately $24.0 million, or 5.8 percent of net sales.

Earnings per diluted share for the second quarter of fiscal 2013 were $0.36.  Excluding the net negative impact of the aforementioned charges, non-GAAP diluted earnings per share would have been $0.53. Both results were reduced by approximately $2.0 million of unusual and Farm Fresh Refresh program expense items, which equate to $0.05 per diluted share.  These items are comprised of additional other operating expenses to support our Farm Fresh Refresh program; as well as several large unusual items, including a product recall in SG&A of the BEF Foods segment and accruals for lawsuits that impacted SG&A of both restaurant segments. 

The Company reported consolidated operating income of $21.3 million in the second quarter of fiscal 2012. The second quarter fiscal 2012 results included a negative net pretax impact of $2.1 million, or $1.4 million after-tax, from the following items:

 

Excluding the $2.1 million negative net impact of these charges, the Company’s second quarter fiscal 2012 reported operating income would have been approximately $23.4 million, or 5.8 percent of net sales.
 
Earnings per diluted share for the second quarter of fiscal 2012 were $0.42.  Excluding the net negative impact of the aforementioned charges, non-GAAP diluted earnings per share would have been $0.47.

During the second quarter of fiscal 2013, the effective tax rate recorded by the Company was 32.3%.

As a result of the items noted above, the Company uses non-GAAP financial measures excluding those items.  These financial measures are used by management to monitor and evaluate the ongoing performance of the Company.  The Company believes that the additional measures are useful to investors for financial analysis.  However, non-GAAP measures are not in accordance with, nor are they a substitute for, GAAP measures.  Please see the table in this release for a reconciliation of non-GAAP measures to GAAP results.  Results in the following discussion are presented on a non-GAAP basis excluding the items noted above.

Second-quarter fiscal 2013 consolidated income statement summary

Below is a summary of the Company’s consolidated second-quarter fiscal 2013 income statement.

 

Second-quarter fiscal 2013 Bob Evans Restaurants segment summary

Bob Evans Restaurants’ fiscal 2013 second-quarter non-GAAP operating income was $20.7 million, or 8.4 percent of net sales, compared with $23.4 million, or 9.6 percent of net sales, last year.  The primary drivers of the decrease in profitability were: $2.4 million of increases in SG&A due to higher costs associated with the Company’s 401k Plan and long-term incentives, incremental training costs along with the full year effect of unfilled headcount from the earlier part of last year, and incremental legal accruals; investments in restaurant supplies and pre-opening expenses for the Farm Fresh Refresh remodeling program; and $1.1 million in incremental depreciation primarily related to the remodel program. These items were partially offset by positive same-store sales of 1.0 percent and the beneficial sales effect of new restaurants.

When a restaurant is refreshed, it is closed for an average of five to seven days.  During the second quarter the Company refreshed 45 restaurants (which we define as “transitional” restaurants) with a total of 290 closed restaurant days.  During the second quarter of last year, the Company refreshed 31 restaurants with a total of 221 closed restaurant days.  The Company refreshed 81 restaurants during the first half of fiscal 2013 with a total of 544 closed restaurant days.  During the first half of fiscal 2012, the Company refreshed 33 restaurants with a total of 228 closed restaurant days.  As part of the refresh process, the Company also incurs pre-opening expenses for training restaurant staff to operate the restaurant more efficiently and local marketing to support re-opening sales.  A typical restaurant yields positive cumulative profit flow-through by the twelfth week to offset: the opportunity cost of lost sales due to closed restaurant days; initial operational inefficiencies; and pre-opening expenses. 

Prior to the second quarter, 155 restaurants were completed.  The refreshed restaurants are on-track to deliver the incremental five percent sales lift and 20 percent returns achieved in Dayton, Ohio, the Company’s first refresh market.

By the third quarter, our total Farm Fresh Refresh initiative is projected to reach critical mass.  At that point, the cumulative profit contribution of the refreshed restaurants is expected to exceed the negative impact of closed restaurant days and pre-opening expenses in the transition markets; which supports the Company’s reaffirmation of its fiscal 2013 earnings per share guidance of $2.67 to $2.73.  Further supporting the reaffirmation is year-over-year positive sales growth (on top of the initial first year post-remodel sales lift) in the Dayton, Ohio, market.     

Net sales – Bob Evans Restaurants’ net sales were $246.3 million in the second quarter of fiscal 2013, compared with sales of $242.8 million in the corresponding period last year.  The increase of approximately 1.4 percent was driven by the 1.0 percent increase in same-store sales, with the remainder coming from new restaurants.  The second-quarter same-store sales increase of 1.0 percent exceeded the Midscale Family Style segment, according to The NPD Group’s SalesTrack Weekly.

 

Category

SSS Restaurants

Aug.

Sept.

Oct.

2Q  FY ’13

FY ’13 YTD

Bob Evans

   Family

552

1.5%

-0.4%

1.6%

1.0%

1.0%

During the second quarter of fiscal 2013, Bob Evans Restaurants:

Cost of sales – Bob Evans Restaurants’ cost of sales was 23.8 percent of net sales in the second quarter of fiscal 2013, compared to 23.4 percent in the second quarter of fiscal 2012. The increase in cost of sales as a percent of net sales was due to commodity increases and mix, which were partially offset by menu pricing of approximately 1.9 percent, and ongoing efficiency initiatives, including the actual-versus-theoretical food cost program.

Operating wages – Bob Evans Restaurants’ cost of labor was 37.4 percent of net sales in the second quarter of fiscal 2013, compared to 37.9 percent of net sales in fiscal 2012. The decline in operating wages as a percent of net sales in the second quarter of fiscal 2013 was due primarily to sales leverage from improvement in same-store sales of 1.0 percent and labor efficiency initiatives.

Other operating expenses – Bob Evans Restaurants’ other operating expenses were 18.1 percent of net sales in the second quarter of fiscal 2013, compared to 18.0 percent of net sales in the second quarter of fiscal 2012. The increase resulted primarily from increases in expenditures related to the Farm Fresh Refresh remodeling program.  Restaurant supply expenses increased approximately $0.6 million. Part of this increase was due to incremental maintenance spending during the refresh of the Columbus, Ohio, market, which is one of our oldest markets.  We have subsequently value engineered the remodel program to minimize this incremental spend going forward, while maintaining the Farm Fresh Refresh program’s strong returns.  Additionally, pre-opening expenses were up approximately $0.3 million as a

result of increased remodels compared to last year.  Both items are components of the $2.0 million, or $0.05 per diluted share, of unusual and Farm Fresh Refresh program expense items referenced above.

SG&A – Bob Evans Restaurants’ non-GAAP SG&A expenses were $17.3 million, or 7.0 percent of net sales, in the second quarter of fiscal 2013, compared with $15.0 million, or 6.2 percent of net sales, in the second quarter of fiscal 2012. The $2.4 million increase was due to higher costs associated with the Company’s 401k Plan and long-term incentives, incremental training costs along with the full year effect of unfilled headcount from the earlier part of last year, and incremental legal accruals.  The legal accruals were a component of the $2.0 million, or $0.05 per diluted share, of unusual and Farm Fresh Refresh program expense items referenced above.

Second-quarter fiscal 2013 Mimi’s Cafe segment summary

Mimi’s Cafe’s second-quarter fiscal 2013 non-GAAP operating loss was $5.3 million, or 6.6 percent of net sales, compared to an operating loss of $3.4 million, or 3.9 percent of net sales, in the second quarter of fiscal 2012.  The primary driver of the operating loss was the same-store sales decline in the second quarter of fiscal 2013.

Net sales – Mimi’s Cafe’s net sales were $81.3 million in the second quarter of fiscal 2013, down $4.7 million, compared to $86.1 million in the corresponding period last year. The decrease resulted from declines in same-store sales of 5.6 percent, which included 0.9 percent in average menu price increases.  At Mimi’s Café, the same-store sales decline trailed the Knapp Track™ casual dining index of -0.1 percent for the same period. 

 

Category

SSS Restaurants

Aug.

Sept.

Oct.

2Q  FY ’13

FY ’13 YTD

Mimi’s Café

   Casual

145

-6.8%

-4.2%

-5.8%

-5.6%

-4.4%

During the second quarter of fiscal 2013, Mimi’s Café remodeled one restaurant and did not open or rebuild any restaurants.

Cost of sales – Mimi’s Café’s cost of sales was 26.1 percent of net sales in the second quarter of fiscal 2013, compared to 26.7 percent in the second quarter of fiscal 2012. The decrease in cost of sales as a percent of net sales was due to food cost initiatives, ongoing efficiency initiatives including the actual-versus-theoretical food cost program and a new menu, which were partially offset by commodity increases.

Operating wages – Mimi’s Cafe’s cost of labor was 39.5 percent of net sales in the second quarter of fiscal 2013, compared to 38.6 percent in the second quarter of fiscal 2012. The increase in operating wages as a percent of net sales was due to deleverage from declines in same-store sales as well as incremental labor hired in anticipation of the significantly higher than average sales seasonality of the upcoming holiday period. 

Other operating expenses – Mimi’s Café’s non-GAAP other operating expenses were $20.8 million, or 25.6 percent of net sales, in the second quarter of fiscal 2013, compared to $21.3 million, or 24.7 percent of net sales, in the second quarter of fiscal 2012. Reduced spending was driven by cost controls.  The increase in other operating expenses as a percent of net sales was due to deleverage from declines in same-store sales.

SG&A – Mimi’s Café’s non-GAAP SG&A expenses were $6.8 million, or 8.4 percent of net sales, in the second quarter of fiscal 2013, compared to $6.1 million, or 7.0 percent of net sales, in the second quarter of fiscal 2012. The increase in SG&A was the result of incremental legal accruals and increases in corporate allocations driven by higher costs associated with the Company’s 401k Plan and long-term incentive compensation.  The legal accruals were a component of the $2.0 million, or $0.05 per diluted share, of unusual and Farm Fresh Refresh program expense items referenced above.

Second-quarter fiscal 2013 BEF Foods segment summary

BEF Foods’ second-quarter fiscal 2013 non-GAAP operating income was $8.6 million, or 10.4 percent of net sales, in the second quarter of fiscal 2013, compared to $3.4 million, or 4.3 percent of net sales, in the corresponding period last year.  The primary driver of the increase in operating income was an increase in total pounds sold of 16.1 percent and a 36.3 percent decline in sow costs.

The acquisition of Kettle Creations during the second quarter of this year, and the sale of the Company’s distribution facility located in Springfield, Ohio, to a third-party distributor during the second quarter of last year, impacted cost of sales, operating wages and other operating expenses.  Prior to the acquisition of Kettle Creations, all costs were included in cost of sales.  Subsequent to the acquisition, as an owned facility, labor costs are included in operating wages, reducing the cost of sales line and increasing operating wages as a result.  Conversely, when Bob Evans sold the distribution facility, operating wages were effectively reclassified to other operating expenses.

Net sales – The BEF Foods segment’s second-quarter fiscal 2013 net sales were $83.3 million, an increase of 6.3 percent, compared to $78.3 million in the second quarter of fiscal 2012. Total pounds sold increased 16.1 percent.  Promotional discounts and other selling allowances are included as a reduction to net sales.  Promotional discounts provided to retailers increased $4.3 million.  The profit effect of increased discounts was offset by a $6.5 million decrease in sow costs. 

Cost of sales – The BEF Foods segment’s second-quarter fiscal 2013 cost of sales was 47.4 percent of net sales, compared to 58.8 percent of net sales in the second quarter of fiscal 2012. The decrease was due primarily to the decline in sow costs as well as the impact of the Kettle Creations acquisition as discussed earlier.

Operating wages – The BEF Foods segment’s second-quarter fiscal 2013 cost of labor was 11.3 percent of net sales, compared to 9.2 percent of net sales in the second quarter of fiscal 2012. As noted above, the increase was primarily due to the Company’s acquisition of Kettle Creations and an increase in hourly wages to produce product for the high volume holiday season in the second quarter of fiscal 2013.  Offsetting these increases was the impact of the sale of the warehouse facility as noted earlier.

Other operating expenses – The BEF Foods segment’s other operating expenses were 8.2 percent of net sales in the second quarter of fiscal 2013, compared to 5.4 percent of net sales in the second quarter of fiscal 2012. The cost increase was due to fees associated with the third-party distribution agreement related to the sale of the distribution center that occurred during the second quarter of fiscal 2012, and volume-related increases in hauling and freight expenses, partially offset by Lean manufacturing productivity initiatives.  The fees associated with the third-party distribution agreement are now classified as other operating expenses as noted above.

SG&A – The BEF Foods segment’s non-GAAP SG&A expenses were 18.9 percent of net sales in the second quarter of fiscal 2013, compared to 19.2 percent of net sales in the second quarter of fiscal 2012. The improvement in costs resulted primarily from deferring some advertising costs until the third quarter, partially offset by approximately $0.4 million of costs associated with a product recall.  The recall costs were a component of the $2.0 million, or $0.05 per diluted share, of unusual and Farm Fresh Refresh program expense items referenced above.

Board of Directors approves payment of quarterly dividend
The Company’s Board of Directors approved payment of the quarterly dividend at the current rate of 27.5 cents per share.  The dividend is payable on December 10, 2012, to shareholders of record at the close of business on November 26, 2012.

Fiscal year 2013 and long-term outlook

The Company reaffirmed its fiscal 2013 earnings per share outlook of $2.67 to $2.73 non-GAAP earnings per diluted share.  The Company also raised its long-term annual non-GAAP EPS growth guidance to 8 to 12 percent, from the previous guidance range of 7 to 10 percent.  The long-term guidance was increased in response to the success the Company has achieved with the Farm Fresh Refresh remodeling program, sales layer growth, new restaurant openings, and the growth in the BEF Foods business segment coupled with the evaluation of strategic alternatives for Mimi’s Café.

This outlook relies on a number of important assumptions, including the risk factors discussed in the Company’s securities filings. Particular assumptions for the Company’s full-year outlook include the following:

Consolidated company highlights

Bob Evans Restaurants segment 

The Company now expects pre-opening expenses related to Farm Fresh Refresh remodel activity to increase $1.5 million compared to the prior year.  Fiscal year 2013 pre-opening expenses are expected to be relatively flat to last year due to the reduction of new restaurants in fiscal 2013 from ten to two, in favor of accelerating the Farm Fresh Refresh remodeling program.  The Company refrains from refreshing restaurants during the peak seasonality period during the calendar year-end holidays.  The Company expects to refresh 114 restaurants during the second half of fiscal 2013, compared with 54 during the second half of fiscal 2012.

Mimi’s Café segment

The Company plans to remodel threeMimi’s Café restaurants at a total cost of approximately $1 million, but does not plan to build new Mimi’s Café restaurants during fiscal 2013. 

BEF Foods segment

On May 29, 2012, the Company announced its intention to close two BEF Foods’ production plants in the second quarter of fiscal 2014.  Partial realization of the pretax benefits, amounting to an estimated $4 to $5 million, will commence in fiscal 2014. The Company anticipates a total annual ongoing pretax benefit of approximately $7 to $8 million beginning in fiscal 2015.
 
The Company, consistent with its commitment to enhance shareholder value, is exploring a range of strategic alternatives for the Mimi’s Café business segment, including but not limited to a potential sale of the business or its assets.  In order to assist the Company in evaluating strategic alternatives, including discussions with third parties, the Company is utilizing Lazard, its independent financial advisor.  While there have been confidential discussions with third parties, the Company cannot assure any outcome of this process.

Company to host conference call on Tuesday, November 20, 2012
The Company will host a conference call to discuss its second-quarter fiscal 2013 results at 10 a.m. (ET) on Tuesday, November 20, 2012. The dial-in number is (800) 690-3108, access code 41608034. A replay will be available at (800) 585-8367, access code 41608034. 

To access the simultaneous webcast, go to www.bobevans.com/ir. The archived webcast will also be available on the Web site.

About Bob Evans Farms, Inc.
Bob Evans Farms, Inc. owns and operates full-service restaurants under the Bob Evans and Mimi’s Café brand names. At the end of the second fiscal quarter (October 26, 2012), Bob Evans owned and operated 565 family restaurants in 19 states, primarily in the Midwest, mid-Atlantic and Southeast regions of the United States, while Mimi’s Café owned and operated 145 casual restaurants located in 24 states, primarily in California and other western states. Bob Evans Farms, Inc. is also a leading producer and distributor of pork sausage and a variety of complementary convenience food items under the Bob Evans and Owens brand names.  For more information about Bob Evans Farms, Inc., visit www.bobevans.com.


SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
Certain statements in this news release that are not historical facts are forward-looking statements. Forward-looking statements involve various important assumptions, risks and uncertainties. Actual results may differ materially from those predicted by the forward-looking statements because of various factors and possible events. We discuss these factors and events, along with certain other risks, uncertainties and assumptions, under the heading “Risk Factors” in Item 1A of our Annual Report on Form 10-K for the fiscal year ended April 27, 2012, and in our other filings with the Securities and Exchange Commission. We note these factors for investors as contemplated by the Private Securities Litigation Reform Act of 1995. Predicting or identifying all such risk factors is impossible. Consequently, investors should not consider any such list to be a complete set of all potential risks and uncertainties. Forward-looking statements speak only as of the date on which they are made, and we undertake no obligation to update any forward-looking statement to reflect circumstances or events that occur after the date of the statement to reflect unanticipated events. All subsequent written and oral forward-looking statements attributable to us or any person acting on behalf of the Company are qualified by the cautionary statements in this section.

Contact:        
Scott C. Taggart
Vice President, Investor Relations
(614) 492-4954

 

Bob Evans Farms, Inc.
Earnings Release Fact Sheet (unaudited)
Fiscal 2013 – Quarter 2
Note: amounts are in thousands, except per share amounts
Second quarter (Q2), ended Oct. 26, 2012, compared to the corresponding period a year ago:

 

 

Three Months Ended

 

Six Months Ended

 

 

Oct 26, 2012

 

Oct 28, 2011

 

Oct 26, 2012

 

Oct 28, 2011

Operating Income as Reported

 

 

 

 

 

 

 

 

    Bob Evans Restaurants

$

 19,781 

$

 21,031 

$

 37,811 

$

 43,976 

    Mimi's Café

 

 (7,507)

 

 (3,673)

 

 (8,356)

 

 (4,766)

    BEF Foods

 

 4,483 

 

 3,972 

 

 12,566 

 

 9,615 

 

 

 

 

 

 

 

 

 

    Total Operating Income

 

 16,757 

 

 21,330 

 

 42,021 

 

 48,825 

 

 

 

 

 

 

 

 

 

Adjustments

 

 

 

 

 

 

 

 

    Bob Evans Restaurants

 

 

 

 

 

 

 

 

        Impairment

 

1,227 

 

 2,806 

 

1,227 

 

 2,806 

        Severance/Restructuring

 

13 

 

 - 

 

797 

 

 - 

        Gain on Sale of Assets

 

 (327)

 

 (407)

 

 (197)

 

 (407)

        Total Bob Evans Restaurants Adjustments

 

913 

 

2,399 

 

1,827 

 

2,399 

 

 

 

 

 

 

 

 

 

    Mimi's Café

 

 

 

 

 

 

 

 

        Severance/Restructuring

 

619 

 

 287 

 

619 

 

 287 

        Leases

 

1,541 

 

 - 

 

1,541 

 

 - 

 

 

 

 

 

 

 

 

 

        Total Mimi's Café  Adjustments

 

2,160 

 

 287 

 

2,160 

 

 287 

 

 

 

 

 

 

 

 

 

    BEF Foods

 

 

 

 

 

 

 

 

        Impairment

 

 - 

 

 87 

 

 - 

 

 87 

        Severance/Restructuring

 

3,185 

 

 - 

 

3,945 

 

 - 

        Merger and Acquisition Related Costs

 

955 

 

 - 

 

1,399 

 

 - 

        Gain on Sale of Assets

 

 (3)

 

 (689)

 

 (5)

 

 (689)

 

 

 

 

 

 

 

 

 

        Total BEF Foods Adjustments

 

4,137 

 

 (602)

 

5,339 

 

 (602)

 

 

 

 

 

 

 

 

 

Total Adjustments

 

 

 

 

 

 

 

 

        Impairment

 

 1,227 

 

 2,893 

 

 1,227 

 

 2,893 

        Severance/Restructuring

 

 3,817 

 

 287 

 

 5,361 

 

 287 

        Merger and Acquisition Related Costs

 

 955 

 

 - 

 

 1,399 

 

 - 

       Gain on Sale of Assets

 

 (330)

 

 (1,096)

 

 (202)

 

 (1,096)

        Leases

 

 1,541 

 

 - 

 

 1,541 

 

 - 

 

 

 

 

 

 

 

 

 

 

 

 7,210 

 

 2,084 

 

 9,326 

 

 2,084 

Adjusted Operating Income

 

 

 

 

 

 

 

 

    Bob Evans Restaurants

 

 20,694 

 

 23,430 

 

 39,638 

 

 46,375 

    Mimi's Café

 

 (5,347)

 

 (3,386)

 

 (6,196)

 

 (4,479)

    BEF Foods

 

 8,620 

 

 3,370 

 

 17,905 

 

 9,013 

 

 

 

 

 

 

 

 

 

    Total Adjusted Operating Income

$

 23,967 

$

 23,414 

$

 51,347 

$

 50,909 

 

 

 

Consolidated

 

Bob Evans Restaurants

 

Three Months Ended

 

Three Months Ended

 

 

Oct 26, 2012

 

% of Sales

 

Oct 28, 2011

 

% of Sales

 

Oct 26, 2012

 

% of Sales

 

Oct 28, 2011

 

% of Sales

Operating Income as Reported

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Sales

$

 410,877 

 

 

$

 407,185 

 

 

$

 246,302 

 

 

$

 242,803 

 

 

Cost of Sales

 

 119,292 

 

29.0%

 

 125,842 

 

30.9%

 

 58,625 

 

23.8%

 

 56,831 

 

23.4%

Operating Wages

 

 133,606 

 

32.5%

 

 132,424 

 

32.5%

 

 92,079 

 

37.4%

 

 91,929 

 

37.9%

Other Operating

 

 73,711 

 

17.9%

 

 69,185 

 

17.0%

 

 44,562 

 

18.1%

 

 43,703 

 

18.0%

SG&A

 

 45,539 

 

11.1%

 

 38,165 

 

9.4%

 

 18,251 

 

7.4%

 

 17,382 

 

7.2%

Depr &  Amort

 

 21,972 

 

5.3%

 

 20,239 

 

5.0%

 

 13,004 

 

5.3%

 

 11,927 

 

4.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total as Reported

 

 16,757 

 

4.1%

 

 21,330 

 

5.2%

 

 19,781 

 

8.0%

 

 21,031 

 

8.7%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Operating

 

 (1,541)

 

 

 

 - 

 

 

 

 - 

 

 

 

 - 

 

 

SG&A

 

 (5,669)

 

 

 

 (2,084)

 

 

 

 (913)

 

 

 

 (2,399)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Adjustments

 

 7,210 

 

 

 

 2,084 

 

 

 

 913 

 

 

 

 2,399 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Operating Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 

 410,877 

 

 

 

 407,185 

 

 

 

 246,302 

 

 

 

 242,803 

 

 

Cost of Sales

 

 119,292 

 

29.0%

 

 125,842 

 

30.9%

 

 58,625 

 

23.8%

 

 56,831 

 

23.4%

Operating Wages

 

 133,606 

 

32.5%

 

 132,424 

 

32.5%

 

 92,079 

 

37.4%

 

 91,929 

 

37.9%

Other Operating

 

 72,170 

 

17.6%

 

 69,185 

 

17.0%

 

 44,562 

 

18.1%

 

 43,703 

 

18.0%

SG&A

 

 39,870 

 

9.7%

 

 36,081 

 

8.9%

 

 17,338 

 

7.0%

 

 14,983 

 

6.2%

Depr &  Amort

 

 21,972 

 

5.3%

 

 20,239 

 

5.0%

 

 13,004 

 

5.3%

 

 11,927 

 

4.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Adjusted Operating Income

 

 23,967 

 

5.8%

 

 23,414 

 

5.8%

 

 20,694 

 

8.4%

 

 23,430 

 

9.6%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Expense

 

 1,473 

 

 

 

 1,985 

 

 

 

 

 

 

 

 

 

 

Income Before Income Taxes as Reported

 

 15,284 

 

 

 

 19,345 

 

 

 

 

 

 

 

 

 

 

Adjustments

 

 7,210 

 

 

 

 2,084 

 

 

 

 

 

 

 

 

 

 

Adjusted Income Before Income Taxes

 

 22,494 

 

 

 

 21,429 

 

 

 

 

 

 

 

 

 

 

Provision for Income Taxes as Reported

 

 4,942 

 

 

 

 6,598 

 

 

 

 

 

 

 

 

 

 

Income Tax Effect of Adjustment

 

 2,451 

 

 

 

 711 

 

 

 

 

 

 

 

 

 

 

Adjusted Provision for Income Taxes

 

 7,393 

 

 

 

 7,309 

 

 

 

 

 

 

 

 

 

 

Net Income as Reported

 

 10,342 

 

 

 

 12,747 

 

 

 

 

 

 

 

 

 

 

Adjustments

 

 4,759 

 

 

 

 1,373 

 

 

 

 

 

 

 

 

 

 

Adjusted Net Income

 

 15,101 

 

 

 

 14,120 

 

 

 

 

 

 

 

 

 

 

Earnings Per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic as Reported

 

 0.36 

 

 

 

 0.42 

 

 

 

 

 

 

 

 

 

 

Adjustments

 

 0.17 

 

 

 

 0.05 

 

 

 

 

 

 

 

 

 

 

Adjusted Basic

 

 0.53 

 

 

 

 0.47 

 

 

 

 

 

 

 

 

 

 

Diluted as Reported

 

 0.36 

 

 

 

 0.42 

 

 

 

 

 

 

 

 

 

 

Adjustments

 

 0.17 

 

 

 

 0.05 

 

 

 

 

 

 

 

 

 

 

Adjusted Diluted

 

 0.53 

 

 

 

 0.47 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Shares Outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Basic

 

 28,398 

 

 

 

 30,090 

 

 

 

 

 

 

 

 

 

 

    Diluted

 

 28,536 

 

 

 

 30,141 

 

 

 

 

 

 

 

 

 

 

 

 

Mimi's Café

 

BEF Foods

 

 

Three Months Ended

 

Three Months Ended

 

 

Oct 26 2012

 

% of Sales

 

Oct 28, 2011

 

% of Sales

 

Oct 26 2012

 

% of Sales

 

Oct 28, 2011

 

% of Sales

Operating Income as Reported

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Sales

$

 81,322 

 

 

$

 86,070 

 

 

$

83,253 

 

 

$

78,312 

 

 

Cost of Sales

 

 21,228 

 

26.1%

 

 22,994 

 

26.7%

 

39,440 

 

47.4%

 

46,018 

 

58.8%

Operating Wages

 

 32,136 

 

39.5%

 

 33,252 

 

38.6%

 

9,392 

 

11.3%

 

7,243 

 

9.2%

Other Operating

 

 22,339 

 

27.5%

 

 21,257 

 

24.7%

 

6,810 

 

8.2%

 

4,225 

 

5.4%

SG&A

 

 7,413 

 

9.1%

 

 6,354 

 

7.4%

 

19,873 

 

23.9%

 

14,429 

 

18.4%

Depr &  Amort

 

 5,713 

 

7.0%

 

 5,886 

 

6.8%

 

3,255 

 

3.9%

 

2,425 

 

3.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total as Reported

 

 (7,507)

 

-9.2%

 

 (3,673)

 

-4.3%

 

4,483 

 

5.4%

 

3,972 

 

5.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Operating

 

 (1,541)

 

 

 

 - 

 

 

 

 - 

 

 

 

 - 

 

 

SG&A

 

 (619)

 

 

 

 (287)

 

 

 

 (4,137)

 

 

 

 602 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Adjustments

 

 2,160 

 

 

 

287 

 

 

 

 4,137 

 

 

 

 (602)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Operating Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 

 81,322 

 

 

 

86,070 

 

 

 

83,253 

 

 

 

78,312 

 

 

Cost of Sales

 

 21,228 

 

26.1%

 

22,994 

 

26.7%

 

39,440 

 

47.4%

 

46,018 

 

58.8%

Operating Wages

 

 32,136 

 

39.5%

 

33,252 

 

38.6%

 

9,392 

 

11.3%

 

7,243 

 

9.2%

Other Operating

 

 20,798 

 

25.6%

 

21,257 

 

24.7%

 

6,810 

 

8.2%

 

4,225 

 

5.4%

SG&A

 

 6,794 

 

8.4%

 

6,067 

 

7.0%

 

15,736 

 

18.9%

 

15,031 

 

19.2%

Depr &  Amort

 

 5,713 

 

7.0%

 

5,886 

 

6.8%

 

3,255 

 

3.9%

 

2,425 

 

3.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Adjusted Operating (Loss) Income

 

 (5,347)

 

-6.6%

 

 (3,386)

 

-3.9%

 

 8,620 

 

10.4%

 

 3,370 

 

4.3%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

Bob Evans Restaurants

 

 

SIx Months Ended

 

Six Months Ended

 

 

Oct 26, 2012

 

% of Sales

 

Oct 28, 2011

 

% of Sales

 

Oct 26, 2012

 

% of Sales

 

Oct 28, 2011

 

% of Sales

Operating Income as Reported

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Sales

$

 820,592 

 

 

$

812,545 

 

 

$

494,268 

 

 

$

486,588 

 

 

Cost of Sales

 

 240,076 

 

29.3%

 

246,929 

 

30.4%

 

118,101 

 

23.9%

 

114,702 

 

23.6%

Operating Wages

 

 266,319 

 

32.5%

 

265,847 

 

32.7%

 

185,457 

 

37.5%

 

185,022 

 

38.0%

Other Operating

 

 145,218 

 

17.7%

 

136,436 

 

16.8%

 

90,311 

 

18.3%

 

85,916 

 

17.7%

SG&A

 

 83,975 

 

10.2%

 

73,890 

 

9.1%

 

36,694 

 

7.4%

 

32,666 

 

6.7%

Depr &  Amort

 

 42,983 

 

5.2%

 

40,618 

 

5.0%

 

25,894 

 

5.2%

 

24,306 

 

5.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total as Reported

 

 42,021 

 

5.1%

 

48,825 

 

6.0%

 

37,811 

 

7.6%

 

43,976 

 

9.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Operating

 

 (1,541)

 

 

 

 - 

 

 

 

 - 

 

 

 

 -  

 

 

SG&A

 

 (7,785)

 

 

 

 (2,084)

 

 

 

 (1,827)

 

 

 

 (2,399)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Adjustments

 

 9,326 

 

 

 

2,084 

 

 

 

 1,827 

 

 

 

2,399 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Operating Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 

 820,592 

 

 

 

 812,545 

 

 

 

 494,268 

 

 

 

 486,588 

 

 

Cost of Sales

 

 240,076 

 

29.3%

 

 246,929 

 

30.4%

 

 118,101 

 

23.9%

 

 114,702 

 

23.6%

Operating Wages

 

 266,319 

 

32.5%

 

 265,847 

 

32.7%

 

 185,457 

 

37.5%

 

 185,022 

 

38.0%

Other Operating

 

 143,677 

 

17.5%

 

 136,436 

 

16.8%

 

 90,311 

 

18.3%

 

 85,916 

 

17.7%

SG&A

 

 76,190 

 

9.3%

 

 71,806 

 

8.8%

 

 34,867 

 

7.1%

 

 30,267 

 

6.2%

Depr &  Amort

 

 42,983 

 

5.2%

 

 40,618 

 

5.0%

 

 25,894 

 

5.2%

 

 24,306 

 

5.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Adjusted Operating Income

 

 51,347 

 

6.3%

 

 50,909 

 

6.3%

 

 39,638 

 

8.0%

 

 46,375 

 

9.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Expense

 

 3,529 

 

 

 

 4,096 

 

 

 

 

 

 

 

 

 

 

Income Before Income Taxes as Reported

 

 38,492 

 

 

 

 44,729 

 

 

 

 

 

 

 

 

 

 

Adjustments

 

 9,326 

 

 

 

 2,084 

 

 

 

 

 

 

 

 

 

 

Adjusted Income Before Income Taxes

 

 47,818 

 

 

 

 46,813 

 

 

 

 

 

 

 

 

 

 

Provision for Income Taxes as Reported

 

 13,142 

 

 

 

 14,170 

 

 

 

 

 

 

 

 

 

 

Income Tax Effect of Adjustment

 

 3,170 

 

 

 

 711 

 

 

 

 

 

 

 

 

 

 

Adjusted Provision for Income Taxes

 

 16,312 

 

 

 

 14,881 

 

 

 

 

 

 

 

 

 

 

Net Income as Reported

 

 25,350 

 

 

 

 30,559 

 

 

 

 

 

 

 

 

 

 

 Adjustments

 

 6,156 

 

 

 

 1,373 

 

 

 

 

 

 

 

 

 

 

 Adjusted Net Income

 

 31,506 

 

 

 

 31,932 

 

 

 

 

 

 

 

 

 

 

 Earnings Per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic as Reported

 

 0.90 

 

 

 

 1.01 

 

 

 

 

 

 

 

 

 

 

Adjustments

 

 0.22 

 

 

 

 0.05 

 

 

 

 

 

 

 

 

 

 

Adjusted Basic

 

 1.11 

 

 

 

 1.06 

 

 

 

 

 

 

 

 

 

 

Diluted as Reported

 

 0.89 

 

 

 

 1.01 

 

 

 

 

 

 

 

 

 

 

Adjustments

 

 0.22 

 

 

 

 0.05 

 

 

 

 

 

 

 

 

 

 

Adjusted Diluted

 

 1.11 

 

 

 

 1.06 

 

 

 

 

 

 

 

 

 

 

Average Shares Outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 28,307 

 

 

 

 30,204 

 

 

 

 

 

 

 

 

 

 

Diluted

 

 28,449 

 

 

 

 30,290 

 

 

 

 

 

 

 

 

 

 

 

 

Mimi's Café

 

BEF Foods

 

 

Six Months Ended

 

Six Months Ended

 

 

Oct 26, 2012

 

% of Sales

 

Oct 28, 2011

 

% of Sales

 

Oct 26, 2012

 

% of Sales

 

Oct 28, 2011

 

% of Sales

Operating Income as Reported

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Sales

$

 167,596 

 

 

$

 175,437 

 

 

$

 158,728 

 

 

$

 150,520 

 

 

Cost of Sales

 

 44,258 

 

26.4%

 

 46,952 

 

26.8%

 

 77,717 

 

49.0%

 

 85,276 

 

56.7%

Operating Wages

 

 64,240 

 

38.3%

 

 66,328 

 

37.8%

 

 16,623 

 

10.5%

 

 14,498 

 

9.6%

Other Operating

 

 42,179 

 

25.2%

 

 41,766 

 

23.8%

 

 12,728 

 

8.0%

 

 8,754 

 

5.8%

SG&A

 

 13,805 

 

8.2%

 

 13,372 

 

7.6%

 

 33,475 

 

21.1%

 

 27,850 

 

18.5%

Depr &  Amort

 

 11,470 

 

6.8%

 

 11,785 

 

6.7%

 

 5,619 

 

3.5%

 

 4,527 

 

3.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total as Reported

 

 (8,356)

 

-5.0%

 

 (4,766)

 

-2.7%

 

 12,566 

 

7.9%

 

 9,615 

 

6.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Operating

 

 (1,541)

 

 

 

 - 

 

 

 

 - 

 

 

 

 - 

 

 

SG&A

 

 (619)

 

 

 

 (287)

 

 

 

 (5,339)

 

 

 

 602 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Adjustments

 

 2,160 

 

 

 

 287 

 

 

 

 5,339 

 

 

 

 (602)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Operating Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 

 167,596 

 

 

 

 175,437 

 

 

 

 158,728 

 

 

 

 150,520 

 

 

Cost of Sales

 

 44,258 

 

26.4%

 

 46,952 

 

26.8%

 

 77,717 

 

49.0%

 

 85,276 

 

56.7%

Operating Wages

 

 64,240 

 

38.3%

 

 66,328 

 

37.8%

 

 16,623 

 

10.5%

 

 14,498 

 

9.6%

Other Operating

 

 40,638 

 

24.2%

 

 41,766 

 

23.8%

 

 12,728 

 

8.0%

 

 8,754 

 

5.8%

SG&A

 

 13,186 

 

7.9%

 

 13,085 

 

7.5%

 

 28,136 

 

17.7%

 

 28,452 

 

18.9%

Depr &  Amort

 

 11,470 

 

6.8%

 

 11,785 

 

6.7%

 

 5,619 

 

3.5%

 

 4,527 

 

3.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Adjusted Operating Income

 

 (6,196)

 

-3.7%

 

 (4,479)

 

-2.6%

 

 17,905 

 

11.3%

 

 9,013 

 

6.0%

 

 

Consolidated Results

 

 

Three Months Ended

 

 

Oct. 26, 2012

 

% of sales

 

Oct. 28, 2011

 

% of sales

Net sales

$

 410,877 

 

 

$

 407,185 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

 119,292 

 

29.0%

 

 125,842 

 

30.9%

Operating wages

 

 133,606 

 

32.5%

 

 132,424 

 

32.5%

Other operating

 

 73,711 

 

17.9%

 

 69,185 

 

17.0%

S,G&A

 

 45,539 

 

11.1%

 

 38,165 

 

9.4%

Depr. & Amort.

 

 21,972 

 

5.3%

 

 20,239 

 

5.0%

 

 

 

 

 

 

 

 

 

Operating income

 

 16,757 

 

4.1%

 

 21,330 

 

5.2%

 

 

 

 

 

 

 

 

 

Interest

 

 1,473 

 

0.4%

 

 1,985 

 

0.5%

 

 

 

 

 

 

 

 

 

Pre-tax income

 

 15,284 

 

3.7%

 

 19,345 

 

4.7%

 

 

 

 

 

 

 

 

 

Income Taxes

 

 4,942 

 

1.2%

 

 6,598 

 

1.6%

 

 

 

 

 

 

 

 

 

Net Income

$

 10,342 

 

2.5%

$

 12,747 

 

3.1%

 

 

 

 

 

 

 

 

 

EPS - basic

$

0.36 

 

 

$

0.42 

 

 

EPS - diluted

$

0.36 

 

 

$

0.42 

 

 

 

 

 

 

 

 

 

 

 

Dividends paid per share:

 

$

 0.28 

 

 

$

 0.25 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 28,398 

 

 

 

 30,090 

 

 

Dilutive stock options

 

 138 

 

 

 

 51 

 

 

Diluted

 

 28,536 

 

 

 

 30,141 

 

 

 

 

 

 

 

 

 

 

 

Shares outstanding at quarter end:

 

 28,100 

 

 

 

 29,615 

 

 

 

 

 

 

 

 

 

 

 

Income taxes, as a percentage of pre-tax income, were 32.3% vs. 34.1%

 

 

 

 

 

Segment Results

 

Three Months Ended

 

 

Bob Evans Restaurants

 

Mimi's Café

 

BEF Foods

 

 

Oct. 26, 2012

 

Oct. 28, 2011

 

Oct. 26, 2012

 

Oct. 28, 2011

 

Oct. 26, 2012

 

Oct. 28, 2011

Net sales

$

 246,302 

$

 242,803 

$

 81,322 

$

 86,070 

$

 83,253 

$

 78,312 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

23.8%

 

23.4%

 

26.1%

 

26.7%

 

47.4%

 

58.8%

Operating wages

 

37.4%

 

37.9%

 

39.5%

 

38.6%

 

11.3%

 

9.2%

Other operating

 

18.1%

 

18.0%

 

27.5%

 

24.7%

 

8.2%

 

5.4%

S,G&A

 

7.4%

 

7.2%

 

9.1%

 

7.4%

 

23.9%

 

18.4%

Depr. & Amort.

 

5.3%

 

4.9%

 

7.0%

 

6.8%

 

3.9%

 

3.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

8.0%

 

8.7%

 

-9.2%

 

-4.3%

 

5.4%

 

5.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Results

 

Six Months Ended

 

 

Oct. 26, 2012

 

% of sales

 

Oct. 28, 2011

 

% of sales

Net sales

$

 820,592 

 

 

$

 812,545 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

 240,076 

 

29.3%

 

 246,929 

 

30.4%

Operating wages

 

 266,319 

 

32.5%

 

 265,847 

 

32.7%

Other operating

 

 145,218 

 

17.7%

 

 136,436 

 

16.8%

S,G&A

 

 83,975 

 

10.2%

 

 73,890 

 

9.1%

Depr. & Amort.

 

 42,983 

 

5.2%

 

 40,618 

 

5.0%

 

 

 

 

 

 

 

 

 

Operating income

 

 42,021 

 

5.1%

 

 48,825 

 

6.0%

 

 

 

 

 

 

 

 

 

Interest

 

 3,529 

 

0.4%

 

 4,096 

 

0.5%

 

 

 

 

 

 

 

 

 

Pre-tax income

 

 38,492 

 

4.7%

 

 44,729 

 

5.5%

 

 

 

 

 

 

 

 

 

Income Taxes

 

 13,142 

 

1.6%

 

 14,170 

 

1.7%

 

 

 

 

 

 

 

 

 

Net Income

$

 25,350 

 

3.1%

$

 30,559 

 

3.8%

 

 

 

 

 

 

 

 

 

EPS - basic

$

0.90 

 

 

$

1.01

 

 

EPS - diluted

$

0.89 

 

 

$

1.01

 

 

 

 

 

 

 

 

 

 

 

Dividends paid per share:

 

$

 0.53 

 

 

$

 0.45 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 28,307 

 

 

 

 30,204 

 

 

Dilutive stock options

 

 142 

 

 

 

 86 

 

 

Diluted

 

 28,449 

 

 

 

 30,290 

 

 

 

 

 

 

 

 

 

 

 

Shares outstanding at quarter end:

 

 28,100 

 

 

 

 29,615 

 

 

 

 

 

 

 

 

 

 

 

Income taxes, as a percentage of pre-tax income, were 34.1% vs.31.7%

 

Segment Results

 

Six Months Ended

 

 

Bob Evans Restaurants

 

Mimi's Café

 

BEF Foods

 

 

Oct. 26, 2012

 

Oct. 28, 2011

 

Oct. 26, 2012

 

Oct. 28, 2011

 

Oct. 26, 2012

 

Oct. 28, 2011

Net sales

$

 494,268 

$

 486,588 

$

 167,596 

$

 175,437 

$

 158,728 

$

 150,520 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

23.9%

 

23.6%

 

26.4%

 

26.8%

 

49.0%

 

56.7%

Operating wages

 

37.5%

 

38.0%

 

38.3%

 

37.8%

 

10.5%

 

9.6%

Other operating

 

18.3%

 

17.7%

 

25.2%

 

23.8%

 

8.0%

 

5.8%

S,G&A

 

7.4%

 

6.7%

 

8.2%

 

7.6%

 

21.1%

 

18.5%

Depr. & Amort.

 

5.2%

 

5.0%

 

6.8%

 

6.7%

 

3.5%

 

3.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

7.6%

 

9.0%

 

-5.0%

 

-2.7%

 

7.9%

 

6.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

Future quarters represent estimates for fiscal year 2013.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bob Evans Restaurants openings and closings, by quarter:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal Year

 

Beginning Total

 

Q1

 

Q2

 

Q3

 

Q4

 

Total

 

Closings

 

Ending Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2013 

 

565 

 

 

 

 

 

 

 

565 

2012 

 

563 

 

 

 

 

 

 

 

565 

2011 

 

569 

 

 

 

 

 

 

 

563 

2010 

 

570 

 

 

 

 

 

 

 

569 

2009 

 

571 

 

 

 

 

 

 

 

570 

Rebuilt Bob Evans Restaurant openings, by quarter:

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal Year

 

Q1

 

Q2

 

Q3

 

Q4

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

2013 

 

 

 

 

 

 

2012 

 

 

 

 

 

 

2011 

 

 

 

 

 

 

2010 

 

 

 

 

 

 

2009 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bob Evans Restaurant remodel openings and pre-opening expense, by fiscal year and quarter:

 

 

 

 

 

 

 

 

 

 

 

 

 

2013 

 

Q1

 

Q2

 

Q3

 

Q4

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

Cincinnati

 

 

 

 

 

 

Other markets

 

 

 

 

 

 

Columbus

 

24 

 

17 

 

 

 

41 

 

Charleston

 

 

 

 

 

11 

 

Ft. Wayne

 

 

 

 

 

12 

 

Indianapolis

 

 

15 

 

14 

 

 

29 

 

Flint

 

 

 

 

 

14 

 

Louisville

 

 

 

 

16 

 

23 

 

Pittsburgh

 

 

 

 

16 

 

16 

 

Cleveland

 

 

 

 

38 

 

45 

 

Total restaurants

 

36 

 

45 

 

41 

 

73 

 

195 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-Opening Expense

$

510 

$

773 

$

615 

$

1,095 

$

2,993 

 

Total days closed for remodels

 

254 

 

290 

 

273 

 

487 

 

1,304 

Future quarters represent estimates for fiscal year 2013.

 

 

 

 

 

 

 

 

 

 

 

 

 

2012 

 

Q1

 

Q2

 

Q3

 

Q4

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

Toledo

 

 

17 

 

 

 

25 

 

Detroit

 

 

14 

 

 

 

17 

 

Cincinnati

 

 

 

 

23 

 

25 

 

Other markets

 

 

 

 

16 

 

20 

 

Total restaurants

 

 

31 

 

15 

 

39 

 

87 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-Opening Expense

$

43 

$

471 

$

358 

$

699 

$

1,571 

 

Total days closed for remodels

 

 

221 

 

118 

 

307 

 

653 

 

 

 

 

 

 

 

 

 

 

 

 

 

2011 

 

Q1

 

Q2

 

Q3

 

Q4

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

Prototype

 

 

 

 

 

 

Dayton

 

 

 

10 

 

19 

 

29 

 

Total restaurants

 

 

 

10 

 

19 

 

31 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-Opening Expense

$

$

74 

$

240 

$

192 

$

506 

 

Total days closed for remodels

 

 

21 

 

76 

 

73 

 

170 

 

 

 

 

 

 

 

 

 

 

 

 

 

2010 

 

Q1

 

Q2

 

Q3

 

Q4

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

Prototype

 

 

 

 

 

 

Total restaurants

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-Opening Expense

$

$

$

$

20 

$

20 

 

Total days closed for remodels

 

 

 

 

 

 

Bob Evans Restaurants same-store sales analysis (18-month core; 552 restaurants):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal 2013

 

Fiscal 2012

 

Fiscal 2011

 

 

Nominal

 

Menu

 

Real

 

Nominal

 

Menu

 

Real

 

Nominal

 

Menu

 

Real

May

 

 0.7 

 

 2.2 

 

 (1.5)

 

 (1.5)

 

 0.8 

 

 (2.3)

 

 (3.5)

 

 1.8 

 

 (5.3)

June

 

 (0.3)

 

 1.9 

 

 (2.2)

 

 (2.0)

 

 1.0 

 

 (3.0)

 

 (3.1)

 

 2.0 

 

 (5.1)

July

 

 2.3 

 

 0.9 

 

 1.4 

 

 (1.8)

 

 2.0 

 

 (3.8)

 

 (3.7)

 

 2.0 

 

 (5.7)

Q1

 

 1.0 

 

 1.6 

 

 (0.6)

 

 (1.8)

 

 1.3 

 

 (3.1)

 

 (3.5)

 

 1.9 

 

 (5.4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

August

 

 1.5 

 

 0.9 

 

 0.6 

 

 (2.6)

 

 2.0 

 

 (4.6)

 

 (1.8)

 

 2.0 

 

 (3.8)

September

 

 (0.4)

 

 1.4 

 

 (1.9)

 

 (1.9)

 

 2.0 

 

 (3.9)

 

 (0.6)

 

 1.8 

 

 (2.4)

October

 

 1.6 

 

 3.1 

 

 (1.5)

 

 (0.3)

 

 2.0 

 

 (2.3)

 

 (0.5)

 

 1.8 

 

 (2.3)

Q2

 

 1.0 

 

 1.9 

 

 (0.9)

 

 (1.5)

 

 2.0 

 

 (3.5)

 

 (0.9)

 

 1.9 

 

 (2.8)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

November

 

 - 

 

 - 

 

 - 

 

 0.1 

 

 1.9 

 

 (1.8)

 

 6.1 

 

 1.9 

 

 4.2 

December

 

 - 

 

 - 

 

 - 

 

 2.4 

 

 2.2 

 

 0.2 

 

 (5.0)

 

 1.9 

 

 (6.9)

January

 

 - 

 

 - 

 

 - 

 

 2.3 

 

 2.0 

 

 0.3 

 

 (1.7)

 

 1.4 

 

 (3.1)

Q3

 

 - 

 

 - 

 

 - 

 

 1.6 

 

 2.0 

 

 (0.4)

 

 (0.5)

 

 1.8 

 

 (2.3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

February

 

 - 

 

 - 

 

 - 

 

 2.2 

 

 1.7 

 

 0.5 

 

 3.2 

 

 1.0 

 

 2.2 

March

 

 - 

 

 - 

 

 - 

 

 (2.0)

 

 1.7 

 

 (3.7)

 

 (0.9)

 

 1.0 

 

 (1.9)

April

 

 - 

 

 - 

 

 - 

 

 (1.5)

 

 1.8 

 

 (3.3)

 

 1.3 

 

 1.0 

 

 0.3 

Q4

 

 - 

 

 - 

 

 - 

 

 (0.6)

 

 1.7 

 

 (2.3)

 

 1.2 

 

 1.0 

 

 0.2 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal year

 

 1.0 

 

 1.8 

 

 (0.8)

 

 (0.6)

 

 1.7 

 

 (2.3)

 

 (1.0)

 

 1.7 

 

 (2.7)

• Key restaurant sales data (core restaurants only):

 

 

 

 

 

 

 

 

 

 

Bob Evans Restaurants

 

 

 

 

 

 

Average annual store sales ($) – FY12

$

1,715,000 

 

 

 

 

 

 

Q2 FY 2013 day part mix (%):

 

 

 

 

Breakfast

 

33%

 

 

Lunch

 

37%

 

 

Dinner

 

30%

 

 

 

 

 

 

Q2 FY 2013 dine-in check average per guest ($):

 

 

 

 

Breakfast

$

8.45 

 

 

Lunch

 

9.01 

 

 

Dinner

 

9.22 

 

 

 

 

 

 

Q2 FY 2013 dine-in check average per guest ($)

$

8.88 

 

 

 

 

 

 

Q2 FY 2013 dine-in check average per ticket ($)

$

17.41 

 

 

 

 

 

 

Q2 FY 2013 carry-out check average per ticket ($)

$

15.44 

Mimi’s Café openings and closings, by quarter:


Fiscal Year

 

Beginning Total

 

Q1

 

Q2

 

Q3

 

Q4

 

Total

 

Closings

 

Ending Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2013 

 

145 

 

 

 

 

 

 

 

145 

2012 

 

145 

 

 

 

 

 

 

 

145 

2011 

 

146 

 

 

 

 

 

 

 

145 

2010 

 

144 

 

 

 

 

 

 

 

146 

2009 

 

132 

 

 

 

 

 

12 

 

 

144 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mimi's Café remodel restaurant openings, by quarter:

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal Year

 

Q1

 

Q2

 

Q3

 

Q4

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

2013 

 

 

 

 

 

 

2012 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

• Mimi's Café does not have any projected rebuilt restaurant openings for fiscal year 2013.

 

Mimi’s Cafe same-store sales analysis (18-month core;145 restaurants):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal 2013

 

Fiscal 2012

 

Fiscal 2011

 

 

Nominal

 

Menu

 

Real

 

Nominal

 

Menu

 

Real

 

Nominal

 

Menu

 

Real

May

 

 (5.6)

 

 - 

 

 (5.6)

 

 (1.8)

 

 4.2 

 

 (6.0)

 

 (8.4)

 

 2.4 

 

 (10.8)

June

 

 (2.3)

 

 - 

 

 (2.3)

 

 (6.1)

 

 4.2 

 

 (10.3)

 

 (8.2)

 

 2.7 

 

 (10.9)

July

 

 (2.1)

 

 - 

 

 (2.1)

 

 (6.1)

 

 4.2 

 

 (10.3)

 

 (6.5)

 

 2.7 

 

 (9.2)

Q1

 

 (3.3)

 

 - 

 

 (3.3)

 

 (4.8)

 

 4.2 

 

 (9.0)

 

 (7.6)

 

 2.6 

 

 (10.2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

August

 

 (6.8)

 

 - 

 

 (6.8)

 

 (5.6)

 

 4.2 

 

 (9.8)

 

 (6.2)

 

 2.7 

 

 (8.9)

September

 

 (4.2)

 

 1.3 

 

 (5.5)

 

 (4.8)

 

 4.2 

 

 (9.0)

 

 (4.8)

 

 2.7 

 

 (7.5)

October

 

 (5.8)

 

 1.3 

 

 (7.1)

 

 (4.1)

 

 4.2 

 

 (8.3)

 

 (5.8)

 

 2.2 

 

 (8.0)

Q2

 

 (5.6)

 

 0.9 

 

 (6.5)

 

 (4.8)

 

 4.2 

 

 (9.0)

 

 (5.6)

 

 2.6 

 

 (8.2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

November

 

 - 

 

 - 

 

 - 

 

 (4.0)

 

 4.2 

 

 (8.2)

 

 0.8 

 

 2.3 

 

 (1.5)

December

 

 - 

 

 - 

 

 - 

 

 (3.0)

 

 4.2 

 

 (7.2)

 

 (4.1)

 

 2.3 

 

 (6.4)

January

 

 - 

 

 - 

 

 - 

 

 (3.3)

 

 4.0 

 

 (7.3)

 

 (6.0)

 

 1.7 

 

 (7.7)

Q3

 

 - 

 

 - 

 

 - 

 

 (3.4)

 

 4.1 

 

 (7.5)

 

 (3.2)

 

 2.1 

 

 (5.3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

February

 

 - 

 

 - 

 

 - 

 

 (0.2)

 

 4.0 

 

 (4.2)

 

 (1.3)

 

 1.7 

 

 (3.0)

March

 

 - 

 

 - 

 

 - 

 

 (5.3)

 

 - 

 

 (5.3)

 

 (2.0)

 

 5.7 

 

 (7.7)

April

 

 - 

 

 - 

 

 - 

 

 (3.6)

 

 - 

 

 (3.6)

 

 (0.8)

 

 5.7 

 

 (6.5)

Q4

 

 - 

 

 - 

 

 - 

 

 (3.1)

 

 1.2 

 

 (4.3)

 

 (1.3)

 

 4.5 

 

 (5.8)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal year

 

 (4.4)

 

 0.5 

 

 (4.9)

 

 (4.0)

 

 3.4 

 

 (7.4)

 

 (4.5)

 

 2.9 

 

 (7.4)

Key restaurant sales data (core restaurants only):

 

 

 

 

 

 

 

 

 

 

Mimi’s Café

 

 

 

 

 

 

Average annual store sales ($) – FY12

$

 2,511,000 

 

 

 

 

 

 

Q2 FY 2013 day part mix (%):

 

 

 

 

Breakfast

 

24%

 

 

Lunch

 

41%

 

 

Dinner

 

35%

 

 

 

 

 

 

Q2 FY 2013 dine-in check average per guest ($):

 

 

 

 

Breakfast

$

10.93 

 

 

Lunch

 

11.12 

 

 

Dinner

 

12.96 

 

 

 

 

 

 

Q2 FY 2013 dine-in check average per guest ($)

$

11.65 

 

 

 

 

 

 

Q2 FY 2013 dine-in check average per ticket ($)

$

23.66 

 

 

 

 

 

 

Q2 FY 2013 carry-out check average ($)

$

17.47 

BEF Foods historical sow cost review (average cost per hundredweight):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal Year

 

 

Q1

 

 

Q2

 

 

Q3

 

 

Q4

 

 

Average

2013 

 

$

54.19 

 

$

43.22 

 

$

 

 

$

 

 

$

47.96 

2012 

 

$

57.06 

 

$

67.82 

 

$

60.56 

 

$

60.41 

 

$

61.58 

2011 

 

$

59.52 

 

$

60.47 

 

$

51.16 

 

$

59.05 

 

$

57.17 

2010 

 

$

43.24 

 

$

32.88 

 

$

40.14 

 

$

55.91 

 

$

42.18 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Total pounds sold review:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal Year

 

 

Q1

 

 

Q2

 

 

Q3

 

 

Q4

 

 

Average

2013 

 

 

7.2%

 

 

16.1%

 

 

 

 

 

 

 

 

11.8%

2012 

 

 

-2.7%

 

 

3.1%

 

 

0.9%

 

 

-1.3%

 

 

0.1%

2011 

 

 

-1.1%

 

 

-14.7%

 

 

-7.9%

 

 

-4.6%

 

 

-7.1%

2010 

 

 

-2.9%

 

 

10.1%

 

 

20.9%

 

 

4.5%

 

 

8.2%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total pounds sold, by category:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal Year 2013:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Category

 

 

Q1

 

 

Q2

 

 

Q3

 

 

Q4

 

 

 

Sausage

 

 

24.2%

 

 

24.2%

 

 

 

 

 

 

 

 

 

Sides

 

 

39.5%

 

 

37.8%

 

 

 

 

 

 

 

 

 

Frozen

 

 

5.7%

 

 

5.3%

 

 

 

 

 

 

 

 

 

Food Service

 

 

26.9%

 

 

30.0%

 

 

 

 

 

 

 

 

 

Other

 

 

3.7%

 

 

2.7%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal Year 2012:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Category

 

 

Q1

 

 

Q2

 

 

Q3

 

 

Q4

 

 

 

Sausage

 

 

29.1%

 

 

26.6%

 

 

28.1%

 

 

26.0%

 

 

 

Sides

 

 

35.0%

 

 

38.9%

 

 

41.2%

 

 

38.9%

 

 

 

Frozen

 

 

7.2%

 

 

6.5%

 

 

5.1%

 

 

5.4%

 

 

 

Food Service

 

 

24.1%

 

 

24.0%

 

 

22.2%

 

 

26.1%

 

 

 

Other

 

 

4.6%

 

 

4.0%

 

 

3.4%

 

 

3.6%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales review (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q2 2013

 

YTD 2013

 

 

Q2 2012

 

YTD 2012

Gross sales

$

97,239 

$

180,155 

 

$

88,034 

$

168,074 

 

 

 

 

 

 

 

 

 

 

Less: promotions

 

(12,101)

 

(19,060)

 

 

(8,926)

 

(16,022)

 

 

 

 

 

 

 

 

 

 

Less: returns and slotting

 

(1,885)

 

(2,367)

 

 

(796)

 

(1,532)

 

 

 

 

 

 

 

 

 

 

Net sales

$

83,253 

$

158,728 

 

$

78,312 

$

150,520 

Balance Sheet Summary:

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

 

Oct. 26, 2012

 

 

April 27, 2012

 

 

 

 

 

 

Cash and equivalents

$

 4,820 

 

$

 35,946 

Other current assets

 

 93,899 

 

 67,701 

Net property, plant and equipment

 

 909,752 

 

 883,295 

Goodwill and other intangible assets

 

 63,352 

 

 41,444 

Other non-current assets

 

 39,667 

 

 37,391 

Total assets

$

 1,111,490 

$

 1,065,777 

 

 

 

 

 

 

Current portion of long-term debt

$

 48,571 

 

$

 38,571 

Line of credit

 

 99,759 

 

 - 

Other current liabilities

 

 147,754 

 

 156,318 

Long-term debt

 

 49,380 

 

 97,145 

Other long-term liabilities

 

 121,611 

 

 117,157 

Stockholders’ equity

 

 644,415 

 

 656,586 

Total liabilities and equity

$

 1,111,490 

$

 1,065,777 

###