McCormick & Schmick’s Seafood Restaurants, Inc. today reported financial results for its first quarter ended March 28, 2009.
Revenues for the first quarter of 2009 decreased 0.5% to $91.9 million from $92.3 million in the first quarter of 2008. The decrease in revenues is primarily attributable to the decline in comparable restaurant sales, partially offset by revenue from new restaurants not in the comparable restaurant base. The Company added two restaurants during the first quarter of 2009 in Roseville, California and St. Louis, Missouri.
Bill Freeman, Chief Executive Officer said, ‘During the first quarter of this year, we have focused on implementing aggressive cost control initiatives to help mitigate the impact of this challenging economic environment. I am pleased with the initial results of these initiatives and the effect they have had on our financial results for the quarter. We will continue to focus in the second quarter on gaining additional traction with the cost cutting initiatives while also exploring new revenue building programs to improve our top line through the rest of the year.’
Financial results for the first quarter 2009 compared to the first quarter 2008:
* Revenues decreased 0.5% to $91.9 million from $92.3 million
* Comparable restaurant sales decreased 13.9%
* Incurred a net loss of $1.1 million, or $(0.08) per diluted share, compared to net income of $0.1 million, or $0.01 per diluted share
* Incurred a pro forma net loss of $0.7 million, or $(0.05) per diluted share, due to a restructuring charge and the normalization of the effective tax rate (see attached reconciliation to GAAP)
The Company has affirmed its revenues guidance of approximately $370.0 million, assuming a 13% comparable restaurant sales decrease for the full year. The Company has increased its diluted earnings per share guidance to approximately $0.25-$0.30, compared to its prior guidance of $0.20, primarily due to better than expected results in the first quarter, combined with a lower expected annualized effective tax rate for the full year. Furthermore, for every percentage point change in annual comparable restaurant sales, the Company expects a corresponding change in annual earnings per share of approximately $0.04 to $0.06.
The Company now expects its annualized effective tax rate to be 5% to 10%. The lower expected annualized effective income tax rate is primarily due to the anticipated realization in 2009 of reserved FICA tax credits and net operating loss carryforwards.
The Company opened two new restaurants in the first quarter and does not plan to open any additional restaurants in 2009. Capital expenditures for 2009 are expected to be approximately $8.0 million, including the $3.1 million expended in the first quarter for the opening of the two restaurants. Based on capital availability and economic conditions improving, the Company may open an additional restaurant in 2009.