Bob Evans Farms, Inc.
Jun 4, 2013

Bob Evans Reports Fiscal 2013 Full-Year and Fourth-Quarter Results; Provides FY 2014 Outlook

Bob Evans Restaurants achieves positive 4Q 2013 same-store sales of 0.5%; reports positive same-store sales of 1.0% for fiscal year 2013  

BEF Foods' 4Q 2013 net sales increase 26.1%, volume up 21.4%; reports fiscal year 2013 net sales increase 10.8%, volume up 14.6%  

Company announces reported 4Q 2013 earnings per diluted share of $0.97 and fiscal 2013 loss per diluted share of $0.10; non-GAAP EPS was $0.71 for the quarter, and $2.39 for the full year

Company sets fiscal year 2014 non-GAAP EPS guidance at $2.60 to $2.67; reaffirms long-term annual non-GAAP earnings growth guidance of 8-12 percent and 5-year non-GAAP operating margin improvement of 300 to 350 basis points

Bob Evans Restaurants to complete Farm Fresh Refresh remodel program with 233 remaining restaurants by the end of fiscal 2014; same-store sales at remodeled restaurants continue to outperform non-remodeled restaurants

Continued strong free cash flow generation and borrowings enabled return of $93 million to shareholders via dividends and share repurchases during fiscal 2013, while investing approximately $125 million in fixed assets and $52 million for the Kettle Creations acquisition

COLUMBUS, Ohio – June 4, 2013 – Bob Evans Farms, Inc. (NASDAQ: BOBE) today announced its financial results for the fiscal 2013 fourth quarter and full year ended Friday, April 26, 2013.

Fiscal 2013 commentary
Chairman and Chief Executive Officer Steve Davis said, "Results at Bob Evans Farms, Inc. for fiscal year 2013 reflect continued successful execution against our three strategic pillars:  transformation of our core businesses to enable expansion; investment in high return on capital growth opportunities; and disciplined capital allocation to drive shareholder value.  

"We believe the acceleration of the Farm Fresh Refresh remodeling program at Bob Evans Restaurants; the Kettle Creations acquisition and ongoing plant network optimization at BEF Foods; and the divestiture of the Mimi's Café restaurant chain have transformed our Company with a significantly upgraded asset base and margin structure capable of driving profitable revenue growth in fiscal 2014 and beyond.  During the past year, these transformational investments and events have given us the confidence to raise our long-term annual non-GAAP growth guidance to 8 to 12 percent."

Davis continued, "Our strategy is to invest in growth opportunities that deliver on the two criteria most relevant to today's restaurant and grocery consumers:  value and convenience.  The extensive investments in infrastructure, marketing, and product development at both Bob Evans Restaurants and BEF Foods have been undertaken to deliver on these criteria.  Positive same-store sales at Bob Evans Restaurants and double-digit volume growth at BEF Foods during fiscal year 2013 indicate those investments are beginning to generate a return.  We expect to build on this success during fiscal year 2014 with the culmination of the Farm Fresh Refresh remodeling program as we complete the remaining 233 Bob Evans Restaurants; and at BEF Foods, with the completion of plant expansion projects at the Kettle Creations facility in Lima, Ohio, that produces the majority of our refrigerated side dish products, and at our facility located in Sulphur Springs, Texas, that produces our ready-to-eat products.

"With the divestiture of Mimi's Café, and the impending completion of extensive transformational investments in both Bob Evans Restaurants and BEF Foods, our company's growth story has become very simple and well-defined.  We are a strong brand with two growing businesses dedicated to delivering on the value and convenience expectations of today's restaurant and grocery consumers.   Success in that regard will be measured by continued net sales growth.  Through leveraging net sales growth and further improvement in our operations, we are also committed to earnings growth with our goal of improving non-GAAP operating margin by 300 to 350 basis points by fiscal 2018.  We believe this dual approach of improving our relevance to consumers, while continuing to refine our operational processes is the most prudent approach to achieving sustainable earnings growth, and higher returns on invested capital for our shareholders."

In regard to the fiscal fourth quarter, Davis noted, "Bob Evans Restaurants experienced a challenging sales environment during February due to several winter weather events and macro-economic challenges.  However, we recovered during March and April to deliver positive same-store sales of 0.5 percent for the quarter.  As consumer spending increased during the quarter, our proven value-oriented sales layers, particularly our $9.99 Three-Course Dinners, and off-premise offerings, including our Family Meals-to-Go and $5 Carryout-to-Go programs, drove positive same-store sales results as they have for most of the fiscal year.

"BEF Foods performed very well during the fiscal fourth quarter, as overall volume grew 21 percent, with refrigerated side dishes, food service, sausage, and frozen products growing 21 percent, 42 percent, 2 percent, and 23 percent, respectively.  Excluding the impact of the Kettle Creations acquisition, overall volume grew 17 percent.  The vertical integration and expansion of our refrigerated side dish production capabilities as a result of the Kettle Creations acquisition, and the expansion of our Sulphur Springs, Texas, prepared foods plant, should allow us to drive the types of productivity gains we experienced with our fresh sausage production."

  

Fourth-quarter fiscal 2013 consolidated results and GAAP to Non-GAAP reconciliation
The Company took many significant strategic actions during the fourth quarter of fiscal 2013 that impacted profitability including: the integration of the Kettle Creations acquisition; the sale of Mimi's Café; the consolidation of ready-to-eat production at the Sulphur Springs, Texas, facility; the sale of the corporate campus and other facilities; and other restructuring activities.  As a result, the Company reported GAAP net income of $27.0 million, or $0.97 per diluted share, in the fourth quarter of fiscal 2013.  The fourth-quarter results include the negative net pretax impact of $68.2 million of costs from the following GAAP to non-GAAP reconciling items:

Bob Evans Restaurants segment-related costs totaling $1.4 million, including:

Mimi's Café segment-related costs totaling $62.2 million, including:

BEF Foods segment-related costs totaling $4.6 million, including:

The GAAP pretax loss for the fourth quarter of fiscal 2013 was $39.0 million.  After adjusting for the $68.2 million of non-GAAP reconciling items above, non-GAAP pretax earnings were $29.2 million.

On a GAAP basis, income taxes for the fourth quarter of fiscal 2013 were a benefit of $66.0 million, primarily resulting from year-to-date adjustment of previous quarters' provisions due to differences in pretax earnings forecasts and associated effective income tax rates, as well as the pretax loss incurred on the divestiture of the Mimi's Café restaurant chain during the fiscal quarter.  For non-GAAP purposes, the Company is using an effective rate of 32 percent which, when applied to the non-GAAP pretax earnings of $29.2 million, results in non-GAAP income tax expenses of $9.3 million, and non-GAAP net income of $19.9 million.

GAAP earnings per diluted share for the fourth quarter of fiscal 2013 were $0.97.  Excluding the net impact of the aforementioned charges, non-GAAP diluted earnings per share would have been $0.71.

Fourth-quarter fiscal 2012 consolidated results and GAAP to Non-GAAP reconciliation
The Company reported net income of $22.0 million, or $0.76 per diluted share, in the fourth quarter of fiscal 2012.  The fourth quarter results included the negative net pretax impact of $1.8 million of costs from the following GAAP to non-GAAP reconciling items:

Bob Evans Restaurants segment-related income totaling $0.2 million, including:

Mimi's Café segment-related costs totaling $2.1 million, including:

BEF Foods segment-related income totaling $0.2 million for a gain on the sale of assets, which decreased the SG&A line.

GAAP earnings per diluted share for fourth quarter 2012 were reported at $0.76.  Excluding the net negative impact of the aforementioned charges, 2012 non-GAAP diluted earnings per share would have been $0.80.

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.

Fourth-quarter fiscal 2013 consolidated income statement summary
Below is a summary of the Company's non-GAAP consolidated fourth-quarter fiscal 2013 income statement.

Fourth-quarter fiscal 2013 Bob Evans Restaurants segment summary
Bob Evans Restaurants' fiscal 2013 fourth-quarter non-GAAP operating income was $21.5 million, or 8.9 percent of net sales, compared with non-GAAP operating income of $24.8 million, or 10.3 percent of net sales, last year.  The most significant driver of the decrease in profitability was a $2.3 million increase in SG&A expense and $1.7 million in incremental depreciation related primarily to the Farm Fresh Refresh remodel program.  These items were partially offset by positive same-store sales of 0.5 percent, which included an approximately $0.9 million incremental negative impact of closed store days due to the Farm Fresh Refresh program as the Company experienced 535 closed days in the fiscal 2013 fourth quarter, compared to 307 days in last year's fourth quarter.

Net sales – Bob Evans Restaurants' net sales were $241.7 million in the fourth quarter of fiscal 2013, compared to non-GAAP net sales of $239.6 million in the corresponding period last year.  The increase was driven by a 0.5 percent increase in same-store sales, which exceeded the Midscale Family Style segment, according to The NPD Group's SalesTrack Weekly.

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

 

 

SSS Restaurants

 

Feb.

 

March

 

April

 

4Q  FY '13

 

FY 2013

Bob Evans

547 

  -4.0%

3.6%

1.7%

0.5%

1.0%


During the quarter, an additional 25 remodeled restaurants began their second year of post-remodel operations.  Those restaurants joined the 55 remodeled restaurants already beyond their first year of operation at the end of the prior quarter.  Same-store sales at restaurants remodeled for more than one year increased 1.8 percent during the fourth quarter, demonstrating the positive impact of the remodeling program beyond the first year of sales.  Additionally, 74 restaurants were remodeled during the quarter, compared with 39 restaurants during last year's fourth quarter.  Restaurants remodeled within the past year achieved a 2.2 percent same-store sales lift, compared to a 0.6 percent same-store sales decrease at non-remodeled restaurants. 

Cost of sales – Bob Evans Restaurants' cost of sales was 24.5 percent of net sales in the fourth quarter of fiscal 2013, compared to non-GAAP cost of sales of 23.6 percent in the fourth quarter of fiscal 2012. The increase in cost of sales as a percent of net sales was due to commodity cost increases and menu mix, which were partially offset by pricing and ongoing efficiency initiatives.

Operating wages – Bob Evans Restaurants' operating wages were 37.1 percent of net sales in the fourth quarter of fiscal 2013, compared to non-GAAP operating wages of 38.5 percent of net sales in the fourth quarter of fiscal 2012. The decline in operating wages as a percent of net sales in the fourth quarter of fiscal 2013 was due to workforce management initiatives, including more effective scheduling and sales leverage.

Other operating expenses – Bob Evans Restaurants' other operating expenses were $38.6 million, or 16.0 percent of net sales, in the fourth quarter of fiscal 2013, compared to non-GAAP other operating expenses of $37.3 million, or 15.6 percent of net sales, in the fourth quarter of fiscal 2012. The increase in spending was due primarily to repair and maintenance expenses associated with winter weather and the Farm Fresh Refresh remodel program. 

SG&A – Bob Evans Restaurants' non-GAAP SG&A expenses were $18.4 million, or 7.6 percent of net sales, in the fourth quarter of fiscal 2013, compared with non-GAAP SG&A expenses of $16.1 million, or 6.7 percent of net sales, in the fourth quarter of fiscal 2012. The $2.3 million increase was due primarily to higher legal costs, an increased corporate overhead allocation as a result of the Company providing transition services to Mimi's Café at less than cost, the Company's retirement plan match, long-term incentives, and an enterprise resource planning ("ERP") implementation project. 

Fourth-quarter fiscal 2013 Mimi's Café segment summary
Mimi's Cafe's fourth-quarter fiscal 2013 non-GAAP operating income was $0.0 million, compared to non-GAAP operating income of $2.2 million in the fourth quarter of fiscal 2012.  The business segment was sold on February 15, 2013.  The few weeks of ownership during the fourth quarter of fiscal 2013, which included a number of sale-related costs and obligations, were excluded from non-GAAP earnings.

Fourth-quarter fiscal 2013 BEF Foods segment summary
BEF Foods' fourth-quarter fiscal 2013 non-GAAP operating income was $8.2 million, or 8.9 percent of net sales, in the fourth quarter of fiscal 2013, compared to non-GAAP operating income of $3.6 million, or 4.9 percent of net sales, in the corresponding period last year.  Sales and margins were both favorable, compared to last year.

Kettle Creations had an accretive effect during the quarter with operating income of approximately $1.5 million.  The Kettle Creations acquisition during the second quarter of fiscal year 2013 impacted cost of sales, operating wages, and other operating expenses.  Prior to the acquisition, Kettle Creations was a co-packer for the Company.  As a result, the entire cost of the products produced by that facility, and purchased by the Company, were included in cost of sales.  Subsequent to the acquisition, as an owned facility, rather than as a co-packer, labor costs are included in operating wages; and utilities, freight, and hauling costs are included in other operating expenses. 

Net sales – The BEF Foods segment's fourth quarter fiscal 2013 net sales were $92.3 million, an increase of 26.1 percent, compared to $73.2 million in the fourth quarter of fiscal 2012. Total pounds sold increased 21.4 percent.  Promotional discounts and other selling allowances were included as a reduction to gross sales.  Kettle Creations' third party sales accounted for $1.8 million of the net sales increase, and 4.2 percentage points of the volume increase. 

Cost of sales – The BEF Foods segment's fourth-quarter fiscal 2013 cost of sales was 51.6 percent of net sales, compared to 57.7 percent of net sales in the fourth quarter of fiscal 2012. The decrease was due primarily to the acquisition of Kettle Creations as referenced above, and to a lesser extent, the decline in sow costs.  Sow costs were $59.07 for the quarter, compared to $60.41 in last year's fourth quarter.  Also continuing to impact cost of sales by approximately $1.5 million during the fourth quarter, was the third quarter unilateral price increase taken by one of the Company's suppliers.  The Company expects to resolve the situation by the end of the second quarter of fiscal 2014 when additional capacity related to the Company's plant expansions are completed.

Operating wages – The BEF Foods segment's fourth-quarter fiscal 2013 operating wages were 10.6 percent of net sales, compared to 8.4 percent of net sales in the fourth quarter of fiscal 2012.  As noted above, the increase was due primarily to the Company's acquisition of Kettle Creations. 
 
Other operating expenses – The BEF Foods segment's other operating expenses were $7.6 million, or 8.3 percent of net sales, in the fourth quarter of fiscal 2013, compared to $5.2 million, or 7.1 percent of net sales, in the fourth quarter of fiscal 2012. As noted above, the increase was due primarily to the Company's acquisition of Kettle Creations, partially offset by manufacturing productivity initiatives. 

SG&A – The BEF Foods segment's non-GAAP SG&A expenses were $15.7 million, or 17.1 percent of net sales, in the fourth quarter of fiscal 2013, compared to non-GAAP SG&A expenses of $13.4 million, or 18.3 percent of net sales, in the fourth quarter of fiscal 2012.  Advertising expenditures increased to support new authorizations and product trial, broker commissions increased as a result of higher sales, and the corporate overhead allocation increased as a result of the Company providing transition services to Mimi's Café at less than cost.

Fiscal 2013 consolidated results and GAAP to Non-GAAP reconciliation
The Company took many significant strategic actions during fiscal 2013 that impacted profitability including: the acquisition of Kettle Creations; the sale of Mimi's Café; initiation of the consolidation of ready-to-eat production at the Sulphur Springs, Texas, facility; the conversion of the restaurant operating entities to limited liability companies; the sale of the corporate campus and other facilities; the early payment of the Company's private placement notes; and other restructuring activities.  As a result, the Company reported a net loss of $2.9 million, or $0.10 per share, in fiscal 2013.  The fiscal year results include the negative net pretax impact of $149.5 million of costs in operating profit, and $6.2 million of costs in interest expense, for a total pretax GAAP to non-GAAP adjustment of $155.6 million:

Bob Evans Restaurants segment-related costs totaling $5.1 million, including:

Mimi's Café segment-related income totaling $23.9 million, including:

BEF Foods segment-related costs totaling $168.3 million, including:

Additionally, there were $6.2 million of costs associated with the pre-payment of the Company's private placement notes, which increased the net interest expense line.

The GAAP pretax loss for fiscal 2013 was $55.3 million.  After adjusting for the $155.6 million of non-GAAP reconciling items above, non-GAAP pretax earnings were $100.3 million.

On a GAAP basis, income taxes were a benefit of $52.5 million, primarily reflecting the income tax receivable the Company expects to realize from converting its restaurant operating entities to limited liability company structures.  For non-GAAP purposes, the Company is using an effective tax rate of approximately 33 percent for the full year, which when applied to the non-GAAP pretax earnings of $100.3 million, results in non-GAAP income tax expenses of $33.1 million, and non-GAAP net income of $67.2 million. 

Losses per share for fiscal 2013 were $0.10.  Excluding the net negative impact of the aforementioned charges, non-GAAP diluted earnings per share would have been $2.39.
 
Fiscal 2012 consolidated results and GAAP to Non-GAAP reconciliation
The Company reported GAAP net income of $72.9 million, or $2.45 per diluted share, in fiscal 2012.  The fiscal year results included the negative net pretax impact of $3.9 million of costs from the following GAAP to non-GAAP reconciling items:

Bob Evans Restaurants segment-related costs totaling $2.2 million, including:

Mimi's Café segment-related costs totaling $2.4 million, including:

BEF Foods segment-related income totaling $0.8 million, including:

GAAP earnings per diluted share for fiscal 2012 were $2.45. Excluding the net negative impact of the aforementioned charges, non-GAAP diluted earnings per share would have been $2.54.

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 the nearest comparable GAAP results.  Results in the following discussion are presented on a non-GAAP basis, excluding the items noted above.

Fiscal 2013 consolidated income statement summary
Below is a summary of the Company's non-GAAP consolidated fiscal 2013 income statement.

 

Fiscal 2013 Bob Evans Restaurants segment summary
Bob Evans Restaurants' non-GAAP fiscal 2013 operating income was $80.7 million, or 8.2 percent of net sales.   Bob Evans Restaurants' non-GAAP fiscal 2012 operating income was $91.0 million, or 9.4 percent of net sales.  The decrease in profitability was due primarily to increases in SG&A expense of $9.3 million and incremental depreciation of $4.6 million related primarily to the Farm Fresh Refresh remodel program.  These items were partially offset by positive same-store sales of 1.0 percent, which included an approximately $3.6 million negative impact of closed store days due to the Farm Fresh Refresh program as the company experienced 1,337 closed days during fiscal 2013, compared to 653 days last year.

Net sales – Bob Evans Restaurants' net sales were $981.4 million in fiscal 2013, a 1.3 percent increase, compared to non-GAAP net sales of $968.6 million in fiscal 2012.  Same-store sales at Bob Evans Restaurants increased 1.0 percent in fiscal 2013, which exceeded the Midscale Family Style segment, according to The NPD Group's SalesTrack Weekly.

During fiscal 2013, Bob Evans Restaurants:

 

During fiscal 2013, remodeled restaurants achieved a 3.7 percent same-store sales lift, compared to a 0.1 percent same-store sales lift at non-remodeled restaurants. 

Cost of sales – Bob Evans Restaurants' cost of sales was 24.1 percent of net sales in fiscal 2013, compared to non-GAAP cost of sales of 23.7 percent of net sales in fiscal 2012. Average pricing for the year of 2.4 percent and ongoing efficiency initiatives were offset by commodity increases of approximately 0.5 percent and mix.

Operating wages – Bob Evans Restaurants' operating wages in fiscal 2013 were 37.4 percent of net sales, compared to non-GAAP operating wages of 38.2 percent of net sales in fiscal 2012. The improvement resulted from workforce management initiatives and leverage from a higher average guest check for fiscal 2013, reflecting continued success of the $9.99 Three-Course Dinner value platform. 

Other operating expenses – Bob Evans Restaurants' other operating expenses in fiscal 2013 were $172.4 million, or 17.6 percent of net sales, compared to non-GAAP other operating expenses of $167.8 million, or 17.3 percent of net sales, in fiscal 2012. The increase in spending resulted from repair and maintenance expenses driven partially by the restaurant remodel program; carryout supplies driven by higher sales volume; service contracts; and pre-opening expenses associated with the increased number of remodeled restaurants.  Marketing expenditures were flat, compared to the prior year.  

SG&A – Bob Evans Restaurants' non-GAAP SG&A expenses were $70.7 million, or 7.2 percent of net sales, in fiscal 2013, compared with non-GAAP SG&A expenses of $61.4 million, or 6.3 percent of net sales, in fiscal 2012. The increase in non-GAAP SG&A expenses was due to open headcount filled during the year; increased utilization of contract labor and other wages; employer match to the Company's retirement plans; long-term incentive plans; legal fees; an increased corporate overhead allocation as a result of the Company providing transition services to Mimi's Café at less than cost, and spending for the ERP program.

Depreciation – Bob Evans Restaurants' depreciation expenses were $53.7 million, or 5.5 percent of net sales, in fiscal 2013, compared with $49.1 million, or 5.1 percent of net sales, in fiscal 2012.  The increase was due to incremental capital spending in fiscal 2013 to support new restaurant development and the Farm Fresh Refresh remodel program.  The average cost of a remodel was approximately $222,000 in fiscal 2013, compared to $230,000 during fiscal 2012.
 
Fiscal 2013 Mimi's Cafe segment summary
Mimi's Café's non-GAAP fiscal 2013 operating loss was $5.9 million, compared with non-GAAP fiscal 2012 operating income of $1.0 million. The decrease in profitability was due primarily to lower sales.  The business segment was sold on February 15, 2013.

Fiscal 2013 BEF Foods segment summary
The BEF Foods segment's non-GAAP operating income was $30.8 million, or 8.8 percent of net sales, in fiscal 2013, compared with non-GAAP operating income of $19.7 million, or 6.3 percent of net sales, in fiscal 2012.  The increase in operating income was due primarily to a year-over-year increase in sales, expanded margins, and the $3.4 million accretive effect of the Kettle Creations acquisition, offset partially by an increase in SG&A expenses as discussed below.

The Kettle Creations acquisition during the second quarter of fiscal year 2013 impacted cost of sales, operating wages, and other operating expenses.  Prior to the acquisition, Kettle Creations was a co-packer for the Company.  As a result, the entire cost of products produced by that facility and purchased by the Company were included in cost of sales.  Subsequent to the acquisition, as an owned facility, rather than as a co-packer, labor costs are included in operating wages; and utilities, freight, and hauling costs are included in other operating expenses. 

Net sales The BEF Foods segment's net sales were $348.8 million in fiscal 2013, an increase of 10.8 percent, compared to $314.7 million in fiscal 2012.  Total pounds sold increased 14.6 percent, driven by strong growth in the side dish business, restaurant insourcing and foodservice.  Promotional discounts increased $6.7 million, compared to fiscal 2012, primarily to support volume earlier in the year when sow costs dropped.  Promotional discounts and other selling allowances affect the income statement as a reduction of gross sales.  As a result, the net average selling price declined during the low sow cost period in response to those low input costs .  The Kettle Creations acquisition accounted for $5.2 million of the net sales increase, and 2.9 percentage points of the volume increase.

Cost of sales – The BEF Foods segment's cost of sales was 50.8 percent of net sales in fiscal 2013, compared to 57.5 percent of net sales in fiscal 2012. The decrease was due primarily to the acquisition of Kettle Creations as referenced above, and reduced sow costs.  Sow costs averaged $53.87 per hundredweight in fiscal 2013, compared to $61.58 in fiscal 2012. 

Operating wages – The BEF Foods segment's operating wages were 10.7 percent of net sales in fiscal 2013, compared to 8.8 percent of net sales in fiscal 2012.  As noted above, the increase was due primarily to the acquisition of Kettle Creations.

Other operating expenses – The BEF Foods segment's other operating expenses were $28.1 million, or 8.1 percent of net sales, in fiscal 2013, compared to $19.2 million, or 6.1 percent of net sales, in fiscal 2012. The increase was due primarily to the Kettle Creations acquisition, as noted above.

SG&A – The BEF Foods segment's non-GAAP SG&A expenses were $63.1 million, or 18.1 percent of net sales, in fiscal 2013, compared to non-GAAP SG&A expenses of $57.6 million, or 18.3 percent of net sales, in fiscal 2012. The dollar increase was due primarily to higher advertising and media expenditures, higher hauling and freight expenses related to higher volume, the effect of a product recall during the second fiscal quarter, and higher broker commissions related to increased sales.

Fiscal year 2014 and longer-term outlook

Consistent with its average annual long-term non-GAAP earnings per share growth rate guidance of 8 to 12 percent, the Company expects fiscal 2014 non-GAAP earnings per share of $2.60 to $2.67. This assumes a tax rate in the 34 to 35 percent range, sow costs up from nearly $54 per hundredweight during fiscal 2013 to $60 to $65 per hundredweight in fiscal 2014, $0.09 per share associated with the cost for the ERP project, $0.02 per share for incremental pre-opening costs associated with the Farm Fresh Refresh remodel program, and up to four new Bob Evans Restaurants.  Additionally, the Company's guidance includes an incremental $0.05 per share of costs related to the differential between the fiscal 2013 non-GAAP $5.9 million loss from Mimi's Café which will not repeat in fiscal 2014, offset by $8.0 million of net costs associated with providing transition services to Mimi's Café in fiscal 2014, which results in an incremental loss of $2.1 million, or the $0.05 per share. 

This outlook relies on a number of important assumptions, including the risk factors discussed in the Company's annual report on Form 10-K and other securities filings.

Particular assumptions for the Company's full-year outlook include the following:

Consolidated company highlights

 

Bob Evans Restaurants segment

BEF Foods segment

Company to host conference call on Wednesday, June 5, 2013
The Company will host a conference call to discuss its year-end fiscal 2013 results at 10 a.m. (ET) on Wednesday, June 5, 2013.  The dial-in number is (800) 690-3108, access code 74610773.  A replay will be available at (800) 585-8367, access code 74610773.

A simultaneous webcast will be available at 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 Restaurants brand name.  At the end of the fourth fiscal quarter (April 26, 2013), Bob Evans Restaurants owned and operated 560 family restaurants in 19 states, primarily in the Midwest, mid-Atlantic and Southeast regions of the United States. Bob Evans Farms, Inc., through its BEF Foods segment, is also a leading producer and distributor of refrigerated side dishes, pork sausage and a variety of refrigerated and frozen 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 4

Note: amounts are in thousands, except per share amounts. Mimi's Café results are through the sale date of February 15, 2013.
Fourth quarter (Q4) and fiscal year, ended April 26, 2013, compared to the corresponding period a year ago:

 

GAAP to Non-GAAP Reconciliation of Net Income (unaudited)

 

 Three Months Ended

 

 Twelve Months Ended

 

 April 26, 2013

 

 April 27, 2012

 

 April 26, 2013

 

 April 27, 2012

Operating income as reported

 

 

 

 

 

 

 

    Bob Evans Restaurants

$ 20,128

 

$ 24,946

 

$ 75,577

 

$ 88,810

    Mimi's Café

 (62,206)

 

 107 

 

 18,053 

 

 (1,436)

    BEF Foods

 3,588 

 

 3,738 

 

 (137,487)

 

 20,500 

Total operating (loss) income

 (38,490)

 

 28,791 

 

 (43,857)

 

 107,874 

Interest Expense

 505 

 

 1,909 

 

 11,485 

 

 7,884 

Pre-tax (loss) income

 (38,995)

 

 26,882 

 

 (55,342)

 

 99,990 

Income tax (benefit) provision

 (66,019)

 

 4,846 

 

 (52,480)

 

 27,140 

Net Income (loss)

 27,024 

 

 22,036 

 

 (2,862)

 

 72,850 

 

 

 

 

 

 

 

 

Adjustments

 

 

 

 

 

 

 

    Bob Evans Restaurants

 

 

 

 

 

 

 

        Impairment

 811 

 

 393 

 

 4,409 

 

 3,199 

        Severance/Restructuring

 1,723 

 

 - 

 

 2,773 

 

 - 

        (Gain) loss on sale of assets

 (1,164)

 

 1,243 

 

 (1,572)

 

 836 

        Extinguishment of intercompany debt

 - 

 

 - 

 

 (527)

 

 - 

        Two-day early cutoff

 - 

 

 (1,803)

 

 - 

 

 (1,803)

        Total Bob Evans Restaurants Adjustments

 1,370 

 

 (167)

 

 5,083 

 

 2,232 

    Mimi's Café

 

 

 

 

 

 

 

         Impairment

 - 

 

 2,327 

 

 70,576 

 

 2,327 

        Severance/Restructuring

 - 

 

 - 

 

 1,740 

 

 287 

        Occupancy costs

 - 

 

 - 

 

 1,875 

 

 - 

        Loss on sale of assets

 57,743 

 

 - 

 

 57,743 

 

 - 

        Extinguishment of intercompany debt

 - 

 

 - 

 

 (156,418)

 

 - 

        Deprec & amort

 - 

 

 - 

 

 (3,924)

 

 - 

        Two-day early cutoff

 - 

 

 (207)

 

 - 

 

 (207)

        4th QTD loss before sale

 4,463 

 

 - 

 

 4,463 

 

 - 

        Total Mimi's Café  Adjustments

 62,206 

 

 2,120 

 

 (23,945)

 

 2,407 

    BEF Foods

 

 

 

 

 

 

 

        Impairment

 - 

 

 - 

 

 - 

 

 87 

        Severance/Restructuring

 1,099 

 

 - 

 

 6,283 

 

 - 

        Merger and acquisition related costs

 493 

 

 - 

 

 2,059 

 

 - 

        Loss (gain) on sale of assets

 4,129 

 

 (158)

 

 4,124 

 

 (847)

        Extinguishment of intercompany debt

 - 

 

 - 

 

 156,945 

 

 - 

        Insurance proceeds

 (1,087)

 

 - 

 

 (1,087)

 

 - 

        Total BEF Foods Adjustments

 4,634 

 

 (158)

 

 168,324 

 

 (760)

Total adjustments

 

 

 

 

 

 

 

        Impairment

 811 

 

 2,720 

 

 74,985 

 

 5,613 

        Severance/Restructuring

 2,822 

 

 - 

 

 10,796 

 

 287 

        Merger and acquisition related costs

 493 

 

 - 

 

 2,059 

 

 - 

        Loss (gain) on sale of assets

 60,708 

 

 1,085 

 

 60,295 

 

 (11)

        4th QTD loss before sale

 4,463 

 

 - 

 

 4,463 

 

 - 

        Occupancy costs

 - 

 

 - 

 

 1,875 

 

 - 

        Insurance Proceeds

 (1,087)

 

 - 

 

 (1,087)

 

 - 

        Deprec & amort

 - 

 

 - 

 

 (3,924)

 

 - 

        Two-day early cutoff

 - 

 

 (2,010)

 

 - 

 

 (2,010)

 

 68,210 

 

 1,795 

 

 149,462 

 

 3,879 

Non-GAAP operating income

 

 

 

 

 

 

 

    Bob Evans Restaurants

 21,498 

 

 24,779 

 

 80,660 

 

 91,042 

    Mimi's Café

 - 

 

 2,227 

 

 (5,892)

 

 971 

    BEF Foods

 8,222 

 

 3,580 

 

 30,837 

 

 19,740 

    Total Non-GAAP operating income

 29,720 

 

 30,586 

 

 105,605 

 

 111,753 

 

 

 

 

 

 

 

 

Adjustments to Interest Expense

 

 

 

 

 

 

 

           Private placement pre-payment related costs

 - 

 

 - 

 

 (6,150)

 

 - 

Non-GAAP Interest Expense

 505 

 

 1,909 

 

 5,335 

 

 7,884 

Non-GAAP Pre-tax Income

 29,215 

 

 28,677 

 

 100,270 

 

 103,869 

Adjustments to Income Tax Provision*

 75,362 

 

 487 

 

 85,555 

 

 1,198 

           Non-GAAP Income Tax Provision

 9,343 

 

 5,333 

 

 33,075 

 

 28,338 

Non-GAAP Net Income

$ 19,872

 

$ 23,344

 

$ 67,194

 

$ 75,531

* Adjustment to reflect Company's quarter-to-date 32% non-GAAP tax rate and year-to-date 33% non-GAAP tax rate


 

GAAP to Non-GAAP Reconciliation of Operating Income (unaudited)

 

Consolidated  Three Months Ended

 

Bob Evans Restaurants Three Months Ended

 

April 26, 2013

 

% of Sales

 

April 27, 2012

 

% of Sales

 

April 26, 2013

 

% of Sales

 

April 27, 2012

 

% of Sales

Operating (loss) income as reported

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

$ 353,877

 

 

 

$ 413,528

 

 

 

$ 241,656

 

 

 

$ 244,729

 

 

Cost of sales

 112,008 

 

31.7%

 

 125,230 

 

30.3%

 

 59,160 

 

24.5%

 

 57,716 

 

23.6%

Operating wages

 108,646 

 

30.7%

 

 135,647 

 

32.8%

 

 89,564 

 

37.1%

 

 93,609 

 

38.3%

Other operating

 50,539 

 

14.3%

 

 62,457 

 

15.1%

 

 38,606 

 

16.0%

 

 37,644 

 

15.4%

SG&A

 45,776 

 

12.9%

 

 40,218 

 

9.7%

 

 19,808 

 

8.2%

 

 18,146 

 

7.4%

Deprec & amort

 17,655 

 

5.0%

 

 21,185 

 

5.1%

 

 14,392 

 

6.0%

 

 12,668 

 

5.2%

Loss on sale of Mimi's Café

 57,743 

 

16.3%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total as reported

 (38,490)

 

-10.9%

 

 28,791 

 

7.0%

 

 20,128 

 

8.3%

 

 24,946 

 

10.2%

Adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 (19,968)

 

 

 

 (6,984)

 

 

 

 - 

 

 

 

 (5,085)

 

 

Cost of sales

 (5,259)

 

 

 

 (1,709)

 

 

 

 - 

 

 

 

 (1,204)

 

 

Operating wages

 (9,276)

 

 

 

 (2,252)

 

 

 

 - 

 

 

 

 (1,350)

 

 

Other operating

 (4,306)

 

 

 

 (501)

 

 

 

 - 

 

 

 

 (362)

 

 

SG&A

 (11,595)

 

 

 

 (4,317)

 

 

 

 (1,370)

 

 

 

 (2,002)

 

 

Loss on sale of Mimi's Café

 (57,743)

 

 

 

 - 

 

 

 

 - 

 

 

 

 - 

 

 

Total adjustments

 68,210 

 

 

 

 1,795 

 

 

 

 1,370 

 

 

 

 (167)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP operating income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 333,909 

 

 

 

 406,544 

 

 

 

 241,656 

 

 

 

239,644 

 

 

Cost of sales

 106,749 

 

32.0%

 

 123,521 

 

30.4%

 

 59,160 

 

24.5%

 

56,512 

 

23.6%

Operating wages

 99,370 

 

29.8%

 

 133,395 

 

32.8%

 

 89,564 

 

37.1%

 

92,259 

 

38.5%

Other operating

 46,233 

 

13.8%

 

 61,956 

 

15.2%

 

 38,606 

 

16.0%

 

37,281 

 

15.6%

SG&A

 34,181 

 

10.2%

 

 35,901 

 

8.8%

 

 18,438 

 

7.6%

 

16,145 

 

6.7%

Deprec & amort

 17,656 

 

5.3%

 

 21,185 

 

5.2%

 

 14,392 

 

6.0%

 

12,668 

 

5.3%

Total non-GAAP operating income

 29,720 

 

8.9%

 

 30,586 

 

7.5%

 

 21,498 

 

8.9%

 

24,778 

 

10.3%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest expense as reported

 505 

 

 

 

 1,909 

 

 

 

 

 

 

 

 

 

 

Non-GAAP net interest expense

 505 

 

 

 

 1,909 

 

 

 

 

 

 

 

 

 

 

(Loss) income before income taxes as reported

 (38,995)

 

 

 

 26,882 

 

 

 

 

 

 

 

 

 

 

Adjustments

 68,210 

 

 

 

 1,795 

 

 

 

 

 

 

 

 

 

 

Non-GAAP pre-tax income

 29,215 

 

 

 

 28,677 

 

 

 

 

 

 

 

 

 

 

(Benefit) provision for income taxes as reported

 (66,019)

 

 

 

 4,846 

 

 

 

 

 

 

 

 

 

 

Income tax effect of adjustment *

 75,362 

 

 

 

 487 

 

 

 

 

 

 

 

 

 

 

Non-GAAP provision for income taxes

 9,343 

 

 

 

 5,333 

 

 

 

 

 

 

 

 

 

 

Net income as reported

 27,024 

 

 

 

 22,036 

 

 

 

 

 

 

 

 

 

 

Adjustments to net income

 (7,152)

 

 

 

 1,308 

 

 

 

 

 

 

 

 

 

 

Non-GAAP net income

 19,872 

 

 

 

 23,344 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic as reported

$ 0.97

 

 

 

$ 0.76

 

 

 

 

 

 

 

 

 

 

Adjustments

$ (0.26)

 

 

 

$ 0.05

 

 

 

 

 

 

 

 

 

 

Non-GAAP basic

$ 0.72

 

 

 

$ 0.81

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted as reported

$ 0.97

 

 

 

$ 0.76

 

 

 

 

 

 

 

 

 

 

Adjustments

$ (0.26)

 

 

 

$ 0.04

 

 

 

 

 

 

 

 

 

 

Non-GAAP diluted

$ 0.71

 

 

 

$ 0.80

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Basic

 27,767 

 

 

 

28,991 

 

 

 

 

 

 

 

 

 

 

    Diluted

 27,901 

 

 

 

29,134 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

* Adjustment to reflect Company's quarter-to-date 32% non-GAAP tax rate

 

 

 

 

 

 

 

 

 

 


 

GAAP to Non-GAAP Reconciliation (unaudited)

 

 Mimi's Café Three Months Ended

 

BEF Foods Three Months Ended

 

April 26, 2013

 

% of Sales

 

April 27, 2012

 

% of Sales

 

April 26, 2013

 

% of Sales

 

April 27, 2012

 

% of Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss) as reported

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

$ 19,968

 

 

 

$ 95,630

 

 

 

$ 92,253

 

 

 

$ 73,169

 

 

Cost of sales

 5,259 

 

26.3%

 

 25,301 

 

26.5%

 

 47,589 

 

51.6%

 

 42,213 

 

57.7%

Operating wages

 9,276 

 

46.5%

 

 35,886 

 

37.5%

 

 9,806 

 

10.6%

 

 6,152 

 

8.4%

Other operating

 4,306 

 

21.6%

 

 19,588 

 

20.5%

 

 7,627 

 

8.3%

 

 5,225 

 

7.1%

SG&A

 5,590 

 

28.0%

 

 8,834 

 

9.2%

 

 20,378 

 

22.1%

 

 13,238 

 

18.1%

Deprec & amort

 - 

 

 

 

 5,914 

 

6.2%

 

 3,264 

 

3.5%

 

 2,603 

 

3.6%

Loss on sale of Mimi's Café

 57,743 

 

289.2%

 

 - 

 

 

 

 - 

 

 

 

 - 

 

 

Total as reported

 (62,206)

 

-311.5%

 

 107 

 

0.1%

 

 3,588 

 

3.9%

 

 3,738 

 

5.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 (19,968)

 

 

 

 (1,899)

 

 

 

 - 

 

 

 

 - 

 

 

Cost of sales

 (5,259)

 

 

 

 (505)

 

 

 

 - 

 

 

 

 - 

 

 

Operating wages

 (9,276)

 

 

 

 (902)

 

 

 

 - 

 

 

 

 - 

 

 

Other operating

 (4,306)

 

 

 

 (138)

 

 

 

 - 

 

 

 

 - 

 

 

SG&A

 (5,590)

 

 

 

 (2,474)

 

 

 

 (4,634)

 

 

 

 158 

 

 

Loss on sale of Mimi's Café

 (57,743)

 

 

 

 - 

 

 

 

 - 

 

 

 

 - 

 

 

Total adjustments

 62,206 

 

 

 

2,120 

 

 

 

 4,634 

 

 

 

 (158)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 - 

 

 

 

93,731 

 

 

 

 92,253 

 

 

 

 73,169 

 

 

Cost of sales

 - 

 

 

 

24,796 

 

26.4%

 

 47,589 

 

51.6%

 

 42,213 

 

57.7%

Operating wages

 - 

 

 

 

34,984 

 

37.3%

 

 9,806 

 

10.6%

 

 6,152 

 

8.4%

Other operating

 - 

 

 

 

19,450 

 

20.8%

 

 7,627 

 

8.3%

 

 5,225 

 

7.1%

SG&A

 - 

 

 

 

6,360 

 

6.8%

 

 15,744 

 

17.1%

 

 13,396 

 

18.3%

Deprec & amort

 - 

 

 

 

5,914 

 

6.3%

 

 3,264 

 

3.5%

 

 2,603 

 

3.6%

Total adjusted operating income

 - 

 

 

 

2,227 

 

2.4%

 

 8,222 

 

8.9%

 

 3,580 

 

4.9%


 

GAAP to Non-GAAP Reconciliation (unaudited)

 

 Consolidated Twelve Months Ended

 

Bob Evans Restaurants Twelve Months Ended

 

April 26, 2013

 

% of Sales

 

April 27, 2012

 

% of Sales

 

April 26, 2013

 

% of Sales

 

April 27, 2012

 

% of Sales

Operating income as reported

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

$ 1,608,909

 

 

 

$ 1,654,413

 

 

 

$ 981,418

 

 

 

$ 973,678

 

 

Cost of sales

 486,855 

 

30.3%

 

 509,816 

 

30.8%

 

 236,822 

 

24.1%

 

 230,795 

 

23.7%

Operating wages

 512,292 

 

31.8%

 

 535,069 

 

32.3%

 

 367,136 

 

37.4%

 

 370,995 

 

38.1%

Other operating

 267,827 

 

16.6%

 

 268,799 

 

16.2%

 

 172,393 

 

17.6%

 

 168,164 

 

17.3%

SG&A

 180,158 

 

11.2%

 

 150,743 

 

9.1%

 

 75,772 

 

7.7%

 

 65,832 

 

6.8%

Deprec & amort

 79,482 

 

4.9%

 

 82,112 

 

5.0%

 

 53,719 

 

5.5%

 

 49,082 

 

5.0%

Asset impairment

 68,409 

 

4.3%

 

 - 

 

 

 

 - 

 

 

 

 - 

 

 

Loss on sale of Mimi's Café

 57,743 

 

3.6%

 

 - 

 

 

 

 - 

 

 

 

 - 

 

 

Total as reported

 (43,857)

 

-2.7%

 

 107,874 

 

6.5%

 

 75,577 

 

7.7%

 

 88,809 

 

9.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 (19,968)

 

 

 

 (6,985)

 

 

 

 - 

 

 

 

 (5,086)

 

 

Cost of Sales

 (5,259)

 

 

 

 (1,709)

 

 

 

 - 

 

 

 

 (1,204)

 

 

Operating Wages

 (9,276)

 

 

 

 (2,252)

 

 

 

 - 

 

 

 

 (1,350)

 

 

Other Operating

 (6,181)

 

 

 

 (502)

 

 

 

 - 

 

 

 

 (364)

 

 

SG&A

 (26,486)

 

 

 

 (6,401)

 

 

 

 (5,083)

 

 

 

 (4,400)

 

 

Deprec &  Amort

 3,924 

 

 

 

 - 

 

 

 

 - 

 

 

 

 - 

 

 

Asset Impairment

 (68,409)

 

 

 

 - 

 

 

 

 - 

 

 

 

 - 

 

 

Loss on sale of Mimi's Café

 (57,743)

 

 

 

 - 

 

 

 

 - 

 

 

 

 - 

 

 

Total Adjustments

 149,462 

 

 

 

 3,879 

 

 

 

 5,083 

 

 

 

 2,232 

 

 

Non-GAAP operating income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 1,588,941 

 

 

 

 1,647,428 

 

 

 

 981,418 

 

 

 

 968,592 

 

 

Cost of sales

 481,596 

 

30.3%

 

 508,107 

 

30.8%

 

 236,822 

 

24.1%

 

 229,591 

 

23.7%

Operating wages

 503,016 

 

31.7%

 

 532,817 

 

32.3%

 

 367,136 

 

37.4%

 

 369,645 

 

38.2%

Other operating

 261,646 

 

16.5%

 

 268,297 

 

16.3%

 

 172,393 

 

17.6%

 

 167,800 

 

17.3%

SG&A

 153,672 

 

9.7%

 

 144,342 

 

8.8%

 

 70,688 

 

7.2%

 

 61,432 

 

6.3%

Deprec & amort

 83,406 

 

5.2%

 

 82,112 

 

5.0%

 

 53,719 

 

5.5%

 

 49,082 

 

5.1%

Total non-GAAP operating income

 105,605 

 

6.6%

 

 111,753 

 

6.8%

 

 80,660 

 

8.2%

 

 91,042 

 

9.4%

Net interest expense as reported

 11,485 

 

 

 

 7,884 

 

 

 

 

 

 

 

 

 

 

Adjustments

 (6,150)

 

 

 

 - 

 

 

 

 

 

 

 

 

 

 

Non-GAAP net interest expense

 5,335 

 

 

 

 7,884 

 

 

 

 

 

 

 

 

 

 

Income before income taxes as reported

 (55,342)

 

 

 

 99,990 

 

 

 

 

 

 

 

 

 

 

Adjustments

 155,612 

 

 

 

 3,879 

 

 

 

 

 

 

 

 

 

 

Non-GAAP pre-tax income

 100,270 

 

 

 

 103,869 

 

 

 

 

 

 

 

 

 

 

(Benefit) provision for income taxes as reported

 (52,480)

 

 

 

 27,140 

 

 

 

 

 

 

 

 

 

 

Income tax effect of adjustment *

 85,555 

 

 

 

 1,198 

 

 

 

 

 

 

 

 

 

 

Non-GAAP income tax provision

 33,075 

 

 

 

 28,338 

 

 

 

 

 

 

 

 

 

 

Net income as reported

 (2,862)

 

 

 

 72,850 

 

 

 

 

 

 

 

 

 

 

 Adjustments

 70,056 

 

 

 

 2,681 

 

 

 

 

 

 

 

 

 

 

Non-GAAP net income

 67,194 

 

 

 

 75,531 

 

 

 

 

 

 

 

 

 

 

Basic as reported

$ (0.10)

 

 

 

$ 2.45

 

 

 

 

 

 

 

 

 

 

Adjustments

$ 2.49

 

 

 

$ 0.09

 

 

 

 

 

 

 

 

 

 

Non-GAAP basic

$ 2.39

 

 

 

$ 2.54

 

 

 

 

 

 

 

 

 

 

Diluted as reported

$ (0.10)

 

 

 

$ 2.45

 

 

 

 

 

 

 

 

 

 

Adjustments

$ 2.49

 

 

 

$ 0.09

 

 

 

 

 

 

 

 

 

 

Non-GAAP diluted

$ 2.39

 

 

 

$ 2.54

 

 

 

 

 

 

 

 

 

 

Basic

 28,094 

 

 

 

 29,679 

 

 

 

 

 

 

 

 

 

 

Diluted

 28,094 

 

 

 

 29,781 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

* Adjustment to reflect Company's year-to-date 33% non-GAAP tax rate

 

 

 

 

 

 

 

 

 

 

 

GAAP to Non-GAAP Reconciliation (unaudited)

 

Mimi's Café Twelve Months Ended

 

BEF Twelve Months Ended

 

April 26, 2013

 

% of Sales

 

April 27, 2012

 

% of Sales

 

April 26, 2013

 

% of Sales

 

April 27, 2012

 

% of Sales

Operating income as reported

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

$ 278,683

 

 

 

$ 366,015

 

 

 

$ 348,808

 

 

 

$ 314,720

 

 

Cost of sales

 72,939 

 

26.2%

 

 98,081 

 

26.8%

 

 177,095 

 

50.8%

 

 180,940 

 

57.5%

Operating wages

 107,897 

 

38.7%

 

 136,287 

 

37.2%

 

 37,259 

 

10.7%

 

 27,787 

 

8.8%

Other operating

 67,339 

 

24.2%

 

 81,453 

 

22.3%

 

 28,094 

 

8.1%

 

 19,182 

 

6.1%

SG&A

 (127,043)

 

-45.6%

 

 28,054 

 

7.7%

 

 231,428 

 

66.3%

 

 56,857 

 

18.1%

Deprec & amort

 13,344 

 

4.8%

 

 23,576 

 

6.4%

 

 12,419 

 

3.6%

 

 9,454 

 

3.0%

Intangible impairment

 68,409 

 

24.5%

 

 - 

 

 

 

 - 

 

 

 

 - 

 

 

Loss on sale of Mimi's Café

 57,743 

 

20.7%

 

 - 

 

 

 

 - 

 

 

 

 - 

 

 

Total as reported

 18,053 

 

6.5%

 

 (1,436)

 

-0.4%

 

 (137,487)

 

-39.4%

 

 20,500 

 

6.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 (19,968)

 

 

 

 (1,899)

 

 

 

 - 

 

 

 

 - 

 

 

Cost of sales

 (5,259)

 

 

 

 (505)

 

 

 

 - 

 

 

 

 - 

 

 

Operating wages

 (9,276)

 

 

 

 (902)

 

 

 

 - 

 

 

 

 - 

 

 

Other operating

 (6,181)

 

 

 

 (138)

 

 

 

 - 

 

 

 

 - 

 

 

SG&A

 146,922 

 

 

 

 (2,761)

 

 

 

 (168,324)

 

 

 

 760 

 

 

Deprec & amort

 3,924 

 

 

 

 - 

 

 

 

 - 

 

 

 

 - 

 

 

Intangible impairment

 (68,409)

 

 

 

 - 

 

 

 

 - 

 

 

 

 - 

 

 

Loss on sale of Mimi's Café

 (57,743)

 

 

 

 - 

 

 

 

 - 

 

 

 

 - 

 

 

Total adjustments

 (23,945)

 

 

 

 2,407 

 

 

 

 168,324 

 

 

 

 (760)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 258,715 

 

 

 

 364,116 

 

 

 

 348,808 

 

 

 

 314,720 

 

 

Cost of sales

 67,680 

 

26.2%

 

 97,576 

 

26.8%

 

 177,095 

 

50.8%

 

 180,940 

 

57.5%

Operating wages

 98,621 

 

38.1%

 

 135,385 

 

37.2%

 

 37,259 

 

10.7%

 

 27,787 

 

8.8%

Other operating

 61,159 

 

23.6%

 

 81,315 

 

22.3%

 

 28,094 

 

8.1%

 

 19,182 

 

6.1%

SG&A

 19,879 

 

7.7%

 

 25,293 

 

6.9%

 

 63,104 

 

18.1%

 

 57,617 

 

18.3%

Deprec & amort

 17,268 

 

6.7%

 

 23,576 

 

6.5%

 

 12,419 

 

3.6%

 

 9,454 

 

3.0%

Total adjusted operating (loss) income

 (5,892)

 

-2.3%

 

 971 

 

0.3%

 

 30,837 

 

8.8%

 

 19,740 

 

6.3%

 

Consolidated Results

 

Three Months Ended

 

April 26, 2013

 

% of sales

 

April 27, 2012

 

% of sales

Net sales

$ 353,877

 

 

 

$ 413,528

 

 

 

 

 

 

 

 

 

 

Cost of sales

 112,008 

 

31.7%

 

 125,230 

 

30.3%

Operating wages

 108,646 

 

30.7%

 

 135,647 

 

32.8%

Other operating

 50,539 

 

14.3%

 

 62,457 

 

15.1%

S,G&A

 45,776 

 

12.9%

 

 40,218 

 

9.7%

Deprec & amort

 17,655 

 

5.0%

 

 21,185 

 

5.1%

Loss on sale of Mimi's Café

 57,743 

 

16.3%

 

 - 

 

 

 

 

 

 

 

 

 

 

Operating (loss) income

 (38,490)

 

-10.9%

 

 28,791 

 

7.0%

 

 

 

 

 

 

 

 

Interest

 505 

 

0.1%

 

 1,909 

 

0.5%

 

 

 

 

 

 

 

 

Pre-tax (loss) income

 (38,995)

 

-11.0%

 

 26,882 

 

6.5%

 

 

 

 

 

 

 

 

(Benefit) provision for income taxes

 (66,019)

 

-18.7%

 

 4,846 

 

1.2%

 

 

 

 

 

 

 

 

Net Income

$ 27,024

 

7.6%

 

$ 22,036

 

5.3%

 

 

 

 

 

 

 

 

EPS - basic

$ 0.97

 

 

 

$ 0.76

 

 

EPS - diluted

$ 0.97

 

 

 

$ 0.76

 

 

 

 

 

 

 

 

 

 

Dividends paid per share

$ 0.275

 

 

 

$ 0.250

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

Basic

 27,767 

 

 

 

 28,991 

 

 

Dilutive stock options

134 

 

 

 

143 

 

 

Diluted

 27,901 

 

 

 

 29,134 

 

 

 

 

 

 

 

 

 

 

Shares outstanding at quarter-end:

 27,418 

 

 

 

 28,610 

 

 

 

 

 

 

 

 

 

 

Income taxes, as a percentage of pre-tax income, were 169.3% vs.18.0%

 

 

 

 

 

 

 

 

 

 

Segment Results

 

 

Three Months Ended

 

 

Bob Evans Restaurants

 

Mimi's Café

 

BEF Foods

 

 

April 26, 2013

 

April 27, 2012

 

April 26, 2013

 

April 27, 2012

 

April 26, 2013

 

April 27, 2012

Net sales

 

$ 241,656

 

$ 244,729

 

$ 19,968

 

$ 95,630

 

$ 92,253

 

$ 73,169

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

24.5%

 

23.6%

 

26.3%

 

26.5%

 

51.6%

 

57.7%

Operating wages

 

37.1%

 

38.3%

 

46.5%

 

37.5%

 

10.6%

 

8.4%

Other operating

 

16.0%

 

15.4%

 

21.6%

 

20.5%

 

8.3%

 

7.1%

S,G&A

 

8.2%

 

7.4%

 

28.0%

 

9.2%

 

22.1%

 

18.1%

Deprec & amort

 

6.0%

 

5.2%

 

0.0%

 

6.2%

 

3.5%

 

3.6%

Loss on sale of Mimi's Café

 

0.0%

 

0.0%

 

289.2%

 

0.0%

 

0.0%

 

0.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

8.3%

 

10.2%

 

-311.5%

 

0.1%

 

3.9%

 

5.1%

Fiscal Year (FY), ended April 26, 2013, compared to the corresponding period a year ago:

 

 

 

 

 

 

 

 

 

 

 

Consolidated Results

 

 

Twelve Months Ended

 

 

April 26, 2013

 

% of sales

 

April 27, 2012

 

% of sales

 

Net sales

$ 1,608,909

 

 

 

$ 1,654,413

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 486,855 

 

30.3%

 

 509,816 

 

30.8%

 

Operating wages

 512,292 

 

31.8%

 

 535,069 

 

32.3%

 

Other operating

 267,827 

 

16.6%

 

 268,799 

 

16.2%

 

S,G&A

 180,158 

 

11.2%

 

 150,743 

 

9.1%

 

Deprec & amort

 79,482 

 

4.9%

 

 82,112 

 

5.0%

 

Asset impairment

 68,409 

 

4.3%

 

 - 

 

0.0%

 

Loss on sale of Mimi's Café

 57,743 

 

3.6%

 

 - 

 

0.0%

 

 

 

 

 

 

 

 

 

 

Operating (loss) income

 (43,857)

 

-2.7%

 

 107,874 

 

6.5%

 

 

 

 

 

 

 

 

 

 

Interest

 11,485 

 

0.7%

 

 7,884 

 

0.5%

 

 

 

 

 

 

 

 

 

 

Pre-tax (loss) income

 (55,342)

 

-3.4%

 

 99,990 

 

6.0%

 

 

 

 

 

 

 

 

 

 

(Benefit) provision for income taxes

 (52,480)

 

-3.3%

 

 27,140 

 

1.6%

 

 

 

 

 

 

 

 

 

 

Net (loss) income

$ (2,862)

 

-0.2%

 

$ 72,850

 

4.4%

 

 

 

 

 

 

 

 

 

 

EPS - basic

$ (0.10)

 

 

 

$ 2.45

 

 

 

EPS - diluted

$ (0.10)

 

 

 

$ 2.45

 

 

 

 

 

 

 

 

 

 

 

 

Dividends paid per share

1.075

 

 

 

$ 0.950

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

Basic

 28,094 

 

 

 

 29,679 

 

 

 

Dilutive stock options

 - 

 

 

 

102 

 

 

 

Diluted

 28,094 

 

 

 

 29,781 

 

 

 

 

 

 

 

 

 

 

 

 

The number of antidilutive stock options outstanding at April 26, 2013 that were not included in the computation of diluted

earnings per share, because to do so would have been antidilutive, were 141 shares for the fiscal year ended April 26, 2013.

 

 

 

 

 

 

 

 

 

Shares outstanding at year-end

 27,418 

 

 

 

 28,610 

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes, as a percentage of pre-tax income, were 94.8% vs.27.1%

 

 

Segment Results

 

Twelve Months Ended

 

Bob Evans Restaurants

 

Mimi's Café

 

BEF Foods

 

April 26, 2013

 

April 27, 2012

 

April 26, 2013

 

April 27, 2012

 

April 26, 2013

 

April 27, 2012

Net sales

$ 981,418

 

$ 973,678

 

$ 278,683

 

$ 366,015

 

$ 348,808

 

$ 314,720

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

24.1%

 

23.7%

 

26.2%

 

26.8%

 

50.8%

 

57.5%

Operating wages

37.4%

 

38.1%

 

38.7%

 

37.2%

 

10.7%

 

8.8%

Other operating

17.6%

 

17.3%

 

24.2%

 

22.3%

 

8.1%

 

6.1%

S,G&A

7.7%

 

6.8%

 

-45.6%

 

7.7%

 

66.3%

 

18.1%

Deprec & amort

5.5%

 

5.0%

 

4.8%

 

6.4%

 

3.6%

 

3.0%

Asset impairment

0.0%

 

0.0%

 

24.5%

 

0.0%

 

0.0%

 

0.0%

Loss on sale of Mimi's Café

0.0%

 

0.0%

 

20.7%

 

0.0%

 

0.0%

 

0.0%

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

7.7%

 

9.1%

 

6.5%

 

-0.4%

 

-39.4%

 

6.5%

 

 

 

 

 

 

 

 

 

 

 

 

Bob Evans Restaurants openings and closings, by quarter:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal Year

 

Beginning Total

 

Q1

 

Q2

 

Q3

 

Q4

 

Full Year

 

Closings

 

Ending Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2013 

 

565 

 

 

 

 

 

 

 

560 

2012 

 

563 

 

 

 

 

 

 

 

565 

2011 

 

569 

 

 

 

 

 

 

 

563 

2010 

 

570 

 

 

 

 

 

 

 

569 

2009 

 

571 

 

 

 

 

 

 

 

570 


Bob Evans Restaurants rebuilt restaurant openings, by quarter:

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal Year

 

Q1

 

Q2

 

Q3

 

Q4

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

2013 

 

 

 

 

 

 

2012 

 

 

 

 

 

 

2011 

 

 

 

 

 

 

2010 

 

 

 

 

 

 

2009 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Full realization of Bob Evans Restaurant remodel benefits:

 

 

 

 

 

 

 

 

Fiscal Year

 

 

 

 

 

2012 

2013 

2014 Est.

 

 

Assumptions:

 

 

 

 

 

 

Remodel openings

 87 

 195 

 233 

 

 

 

Total days closed for remodels

 653 

 1,337 

 1,472 

 

 

Financial impact:

 

 

 

 

 

 

Closed day sales

$ 2,701

$ 6,331

$ 7,500

 

 

 

Pre-opening expense

$ 1,571

$ 3,375

$ 3,845

 


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

 

 

 

 

 

 

Ft. Wayne

 

 

 

 

 

11 

 

Indianapolis

 

 

15 

 

15 

 

 

30 

 

Flint

 

 

 

 

 

14 

 

Louisville

 

 

 

 

20 

 

26 

 

Pittsburgh

 

 

 

 

16 

 

16 

 

Cleveland

 

 

 

 

38 

 

45 

 

Total restaurants

 

36 

 

45 

 

40 

 

74 

 

195 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-Opening Expense

$

510 

$

773 

$

771 

$

1,321 

$

3,375 

 

Total days closed for remodels

 

254 

 

290 

 

258 

 

535 

 

1,337 

 

 

 

 

 

 

 

 

 

 

 

 

 

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; 547 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

 

 2.1 

 

 2.8 

 

 (0.7)

 

 0.1 

 

 1.9 

 

 (1.8)

 

 6.1 

 

 1.9 

 

 4.2 

December

 

 (0.5)

 

 2.7 

 

 (3.2)

 

 2.4 

 

 2.2 

 

 0.2 

 

 (5.0)

 

 1.9 

 

 (6.9)

January

 

 3.1 

 

 2.7 

 

 0.4 

 

 2.3 

 

 2.0 

 

 0.3 

 

 (1.7)

 

 1.4 

 

 (3.1)

Q3

 

 1.6 

 

 2.8 

 

 (1.2)

 

 1.6 

 

 2.0 

 

 (0.4)

 

 (0.5)

 

 1.8 

 

 (2.3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

February

 

 (4.0)

 

 3.1 

 

 (7.1)

 

 2.2 

 

 1.7 

 

 0.5 

 

 3.2 

 

 1.0 

 

 2.2 

March

 

 3.6 

 

 3.5 

 

 0.1 

 

 (2.0)

 

 1.7 

 

 (3.7)

 

 (0.9)

 

 1.0 

 

 (1.9)

April

 

 1.7 

 

 3.4 

 

 (1.7)

 

 (1.5)

 

 1.8 

 

 (3.3)

 

 1.3 

 

 1.0 

 

 0.3 

Q4

 

 0.5 

 

 3.4 

 

 (2.8)

 

 (0.6)

 

 1.7 

 

 (2.3)

 

 1.2 

 

 1.0 

 

 0.2 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal

 

 1.0 

 

 2.4 

 

 (1.4)

 

 (0.6)

 

 1.7 

 

 (2.3)

 

 (1.0)

 

 1.7 

 

 (2.7)

year

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

? Key restaurant sales data (core restaurants only):

 

 

 

 

 

 

 

 

 

Bob Evans Restaurants

 

 

 

 

 

Annual store sales ($) – FY13

$

 1,741,000 

 

 

 

 

 

 

Q4 FY 2013 day part mix (%):

 

 

 

 

Breakfast

 

31%

 

 

Lunch

 

38%

 

 

Dinner

 

31%

 

 

 

 

 

 

Q4 FY 2013 dine-in check average per guest ($):

 

 

 

 

Breakfast

$

8.64 

 

 

Lunch

 

9.28 

 

 

Dinner

 

9.39 

 

 

 

 

 

 

Q4 FY 2013 dine-in check average per guest ($)

$

$9.10

 

 

 

 

 

 

Q4 FY 2013 dine-in check average per ticket ($)

$

$17.80

 

 

 

 

 

 

Q4 FY 2013 carry-out check average per ticket ($)

$

$15.11

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal Year

 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2013 

 

$

54.19 

 

$

43.22 

 

$

58.72 

 

$

59.07 

 

$

53.87 

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

 

YTD

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2013 

 

 

7.2%

 

 

16.1%

 

 

13.1%

 

 

21.4%

 

 

14.6%

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%

 

 

25.5%

 

 

22.0%

 

 

 

Sides

 

 

39.5%

 

 

37.8%

 

 

39.7%

 

 

38.7%

 

 

 

Frozen

 

 

5.7%

 

 

5.3%

 

 

4.2%

 

 

5.5%

 

 

 

Food Service

 

 

26.9%

 

 

30.0%

 

 

28.0%

 

 

30.5%

 

 

 

Other

 

 

3.7%

 

 

2.7%

 

 

2.6%

 

 

3.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q4 2013

 

YTD 2013

 

Q4 2012

 

YTD 2012

Gross sales

$

105,393 

$

403,307 

$

87,210 

$

361,883 

 

 

 

 

 

 

 

 

 

Less: promotions

 

(12,306)

 

(50,536)

 

(12,997)

 

(43,799)

 

 

 

 

 

 

 

 

 

Less: returns and slotting

 

(834)

 

(3,963)

 

(1,044)

 

(3,364)

 

 

 

 

 

       

Net sales

$

92,253 

$

348,808 

$

73,169 

$

314,720