BBQ Holdings, Inc. Reports Results for Fourth Quarter and Fiscal Year 2021; Announces Acquisition of Barrio Queen, Corporate Name Change and Provides 2022 Guidance
03/14/2022 - 08:47 AM
MINNEAPOLIS, March 14, 2022 (GLOBE NEWSWIRE) -- BBQ Holdings, Inc. (NASDAQ: BBQ) (the “Company”), an innovating global franchisor, owner and operator of restaurants, today reported financial results for the fourth quarter and fiscal year ended January 2, 2022.
Fourth Quarter Highlights:
Fourth Quarter (dollars in thousands, except per share data) 2021 2020 2019 Total revenue $ 68,395 $ 34,258 $ 23,613 Net income (loss) $ 2,602 $ (2,836 ) $ (1,788 ) Earnings (loss) per diluted share $ 0.25 $ (0.31 ) $ (0.20 ) Adjusted net income (loss) $ 2,820 $ (1,538 ) $ (1,210 ) Adjusted earnings (loss) per diluted share $ 0.27 $ (0.17 ) $ (0.13 ) Cash EBITDA $ 4,550 $ 85 $ (692 ) Restaurant-level margins 7.6 % 2.1 % (3.0 ) % Prime costs 62.3 % 63.6 % 67.9 % Free cash flow $ 3,140 $ (743 ) $ (3,655 )
Fourth Quarter Same Store Sales 2021 vs. 2020 2021 vs. 2019 Famous Dave's Company-owned 22.8 % 15.5 % Famous Dave's Franchise-operated* 26.5 % 18.8 % Granite City** 63.8 % (2.4 ) % Village Inn Company-owned** 54.5 % (9.2 ) % Village Inn Franchise-operated* 51.7 % NA % Bakers Square** 50.4 % (12.7 ) % Clark Crew 17.0 % NA % Real Urban BBQ** 8.9 % 2.7 % * as reported by franchisees ** includes sales under prior ownership
Fiscal Year Highlights:
Fiscal Year (dollars in thousands, except per share data) 2021 2020 2019 Total revenue $ 206,442 $ 121,237 $ 83,555 Net income (loss) $ 24,021 $ 4,947 $ (649 ) Earnings (loss) per diluted share $ 2.42 $ 0.54 $ (0.07 ) Adjusted net income (loss) $ 7,033 $ (2,616 ) $ 647 Adjusted earnings (loss) per diluted share $ 0.71 $ (0.29 ) $ 0.07 Cash EBITDA $ 17,450 $ 948 $ 3,423 Restaurant-level margins 9.3 % 1.3 % (0.1 ) % Prime costs 61.4 % 64.9 % 67.2 % Free cash flow $ 13,624 $ (2,551 ) $ (3,332 )
Fiscal Year Same Store Sales 2021 vs. 2020 2021 vs. 2019 Famous Dave's Company-owned 23.7 % 13.7 % Famous Dave's Franchise-operated* 25.9 % 6.6 % Granite City** 50.0 % (8.6 ) % Village Inn Company-owned** 42.0 % (13.0 ) % Village Inn Franchise-operated* 49.1 % NA % Bakers Square** 29.9 % (21.5 ) % Clark Crew 17.3 % NA % Real Urban BBQ** 11.5 % 0.8 % * as reported by franchisees **includes sales under prior ownership
Subsequent Events:
On March 10, 2022, we executed an Asset Purchase Agreement for substantially all the assets related to the fast-growing Barrio Queen restaurant group, and we expect to close the transaction within 45 days. Barrio Queen is known for their authentic Mexican fine dining in Phoenix, Arizona. There are currently seven operating restaurants and a lease signed for an eighth with a target opening date of December 2022. The purchase price of $28.0 million will be funded with cash and debt. Further details of the transaction will be made public upon closing.
On March 11, 2022, we closed the purchase of three bar-centric locations. The purchase price of $4.5 million was funded with cash at a multiple of 3.25 times 2021 store-level EBITDA.
Current and Projected (“PF”) Portfolio:
FAMOUS VILLAGE GRANITE BAKERS REAL CLARK CREW TAHOE JOE’S BARRIO QUEEN BAR CONCEPTS TOTAL 2021 2022 PF 2021 2022 PF 2021 2022 PF 2021 2022 PF 2021 2022 PF 2021 2022 PF 2021 2022 PF 2021 2022 PF 2021 2022 PF 2021 2022 PF Corporate Locations 39 41 21 22 18 18 14 14 2 2 1 1 5 4 8 3 100 113 Brick & Mortar 30 31 21 21 18 17 11 11 2 2 1 1 5 4 8 3 88 98 Dual Concept 1 1 1 1 1 3 Ghost Kitchens 8 9 3 3 11 12 Franchise/License Locations 104 107 108 111 4 4 1 216 223 Brick & Mortar 85 87 108 111 193 198 Dual Concept 1 1 0 2 Ghost Kitchens 19 19 4 4 23 23 Total Locations 143 148 129 133 18 18 18 18 2 2 1 1 5 5 8 3 316 336 Growth Plan New line serve / drive thru and Ghost locations New trendy breakfast prototype Dual concept with new breakfast brand Sell pies in retail, kiosk and other restaurants New line serve locations and CPGs CPGs Dual Concept with FDs Franchise and Corporate Corporate # Opening in 2022 Q1: 3 Q1: 1 n/a n/a n/a n/a Q1: - Q1: - n/a Total: 13 Q2: 1 Q2: 1 Q2: - Q2: - Q3: 1 Q3: 1 Q3: - Q3: 1 Q4: 1 Q4: 2 Q4: 1 Q4: -
Filling Latent Capacity :
Dual concept Granite City/Village Inn opened in Maple Grove, MN in March 2022. Famous Dave’s ghost kitchen to open in Granite City in Fargo, ND in March 2022. Organic Unit Growth:
Famous Dave’s franchisee opened a line-serve restaurant in Coon Rapids, MN in October 2021. Opened a Real Urban Barbeque restaurant in Chicago, IL in October 2021. Famous Dave’s Drive thru in Salt Lake City, UT opened in March 2022. Famous Dave’s franchisee opened an additional restaurant in the United Arab Emirates in February 2022. New Village Inn prototype expected to open in Omaha, NE in the second quarter of 2022. Mergers and Acquisitions:
Purchased Tahoe Joe’s Steakhouse brand in October 2021. Signed an Asset Purchase Agreement to acquire Barrio Queen in March 2022. Closed the purchase of three bar-centric company-owned locations in March 2022. 2022 Guidance:
Net restaurant revenue of $265m m to $280m m Net income and adjusted net income range from $12.5m m to $15.5m m We expect to exhaust our deferred tax assets mid-2022 Diluted earnings per share and adjusted earnings per diluted share of $1.15 t o $1.45 Cash EBITDA range from $23m m to $25m m*** Free cash flow range from $13.5m m to $15.5m m*** 12-Month Run Rate Guidance:
Net restaurant revenue of $280m m to $295m m Net income and adjusted net income range from $14.0m m to $17.0m m Diluted earnings per share and adjusted earnings per diluted share of $1.30 t o $1.60 Cash EBITDA range from $25.5m m to $27.5m m*** Free cash flow range from $15.5m m to $17.5m m*** *** assumes completion of Barrio Queen and Bar Concepts acquisitions
Executive Comments
Jeff Crivello, CEO, commented, “The fourth quarter of 2021 marked another successful quarter of strong operational execution and company growth. We continue to successfully execute our three core growth initiatives which include filling latent capacity of our current restaurants, organic unit growth, and build a diversified portfolio of food and beverage brands via accretive M&A.
In December 2021 and January 2022, we experienced a traffic decline associated with the Omicron variant of COVID-19. However, as case counts have declined, we have seen rebounds in both dine-in traffic and catering sales in February and March of 2022.
As we have continued to diversify our portfolio of restaurant brands, we will be changing the name of our parent company from BBQ Holdings, Inc. to Famous Hospitality, Inc.”
Key Operating Metrics
Three Months Ended Year Ended January 2, 2022 January 3, 2021 January 2, 2022 January 3, 2021 Restaurant count: Franchise-operated 216 98 216 98 Company-owned 100 47 100 47 Total 316 145 316 145 Same store net restaurant sales %: Franchise-operated 26.5 % (13.6 ) % 25.9 % (17.0 ) % Company-owned 37.8 % (5.5 ) % 36.7 % (8.5 ) % Total 30.8 % (11.6 ) % 29.8 % (15.3 ) % (in thousands, expect per share data) System-wide restaurant sales(1) $ 171,086 $ 78,894 $ 507,882 $ 301,743 Net income attributable to shareholders $ 2,602 $ (2,836 ) $ 24,021 $ 4,947 Net income attributable to shareholders, per diluted share $ 0.25 $ (0.31 ) $ 2.42 $ 0.54 Cash EBITDA(2) $ 4,550 $ 85 $ 17,450 $ 948
(1) System-wide restaurant sales include sales for all Company-owned and franchise-operated restaurants, as reported by franchisees. Restaurant sales for franchise-operated restaurants are not revenues of the Company and are not included in the Company’s consolidated financial statements.(2) Cash EBITDA is a non-GAAP measure. A reconciliation of all non-GAAP measures to the most directly comparable GAAP measure is included in the accompanying financial tables. See “Non-GAAP Reconciliation.”
Fourth Quarter and Fiscal Year 2021 Review
Total revenue for the fourth quarter of 2021 was $68.4 million , up 99.6% from the fourth quarter of 2020. Total revenue for fiscal year 2021 was $206.4 million , up 70.3% from fiscal year 2020. The increase in year-over-year revenue was driven primarily by the acquisitions of the Village Inn and Bakers Square brands, four additional Famous Dave’s restaurants, and the Tahoe Joe’s Steakhouse brand, as well as the reduction of dining restrictions in 2021 compared to 2020.
Net income attributable to shareholders was approximately $2.6 million , or $0.25 per diluted share, in the fourth quarter of fiscal 2021 compared to a loss of approximately $2.8 million , or $0.31 per diluted share, in the fourth quarter of fiscal 2020. Fiscal year 2021 net income was $24.0 million compared to $4.9 million in fiscal year 2020. This increase in net income was mainly attributable to a gain on forgiveness of debt and a gain on bargain purchase. Additionally, the increase in net income was also driven by (i) an increase in same store sales, (ii) sales from the acquisitions of the Village Inn and Bakers Square brands, four additional Famous Dave’s restaurants, and the Tahoe Joe’s Steakhouse brand, (iii) improvements in restaurant-level margins and (iv) improvements in general and administrative expense efficiency. Cash EBITDA, a non-GAAP measure, increased $4.5 million from $0.1 million in the fourth quarter of 2020 to $4.6 million in the fourth quarter of 2021. Cash EBITDA for fiscal year 2021 was $17.5 million , an increase of $16.5 million over fiscal year 2020. A reconciliation between cash EBITDA and its most directly comparable GAAP measure is included in the accompanying financial tables.
Restaurant-level operating margin as a percentage of restaurant net sales, a non-GAAP measure, was 7.6% and 9.3% for Company-owned restaurants in the fourth quarter and fiscal year 2021, respectively, compared to 2.1% and 1.3% in the fourth quarter and fiscal year 2020, respectively. This increase in restaurant-level operating margin as a percentage of net restaurant sales was due primarily to leverage on our fixed operating costs from the increased revenue resulting from the reduction of dine-in restrictions and restrictions on large gatherings which were put in place in 2020 due to COVID-19 concerns, as well as the acquisition of the Village Inn and Bakers Square brands, four additional Famous Dave’s restaurants, and the Tahoe Joe’s Steakhouse brand. A reconciliation of restaurant sales to restaurant-level margin is included in the accompanying financial tables. General and administrative expenses for the quarter ended January 2, 2022, and January 3, 2021 represented approximately 8.3% and 12.8% of total revenues, respectively. General and administrative expenses for fiscal year 2021 and fiscal year 2020 represented approximately 9.3% and 11.9% of total revenues, respectively. While general and administrative expenses increased in fiscal year 2021 compared to fiscal year 2020, such expenses decrease as a percentage of revenue in 2021 due primarily to the increase in total revenue.
About BBQ Holdings
BBQ Holdings, Inc. (NASDAQ: BBQ) is a national restaurant company engaged in franchising, ownership and operation of casual and fast dining restaurants. As of March 14, 2022, BBQ Holdings had multiple brands with over 100 Company-owned locations and over 200 franchised locations, including ghost kitchens operating out of the kitchen of another restaurant location or shared kitchen space. While BBQ Holdings continues to diversify its ownership in the restaurant community, it was founded with the principle of combining the “art and science” of barbecue to serve up the very best of the best to barbecue lovers everywhere. Along with a wide variety of BBQ favorites served at their BBQ restaurants, BBQ Holdings also operates Granite City Food and Brewery restaurants which offer award winning craft beer and a made-from-scratch, chef driven menu featuring contemporary American cuisine. Village Inn and Bakers Square add a legendary Family Dining element to BBQ Holdings, with these concepts specializing in breakfast and pies. Tahoe Joe’s is known for their pellet-broiler cooked and smoked infused steak.
Non-GAAP Financial Measures
To supplement its condensed consolidated financial statements, which are prepared and presented in accordance with accounting principles generally accepted in the United States (“GAAP”), the Company uses non-GAAP measures including those indicated below. These non-GAAP measures exclude significant expenses and income that are required by GAAP to be recorded in the Company’s consolidated financial statements and are subject to inherent limitations. By providing non-GAAP measures, together with a reconciliation to the most comparable GAAP measure, the Company believes that it is enhancing investors’ understanding of the Company’s business and results of operations. These measures are not intended to be considered in isolation of, as substitutes for, or superior to, financial measures prepared and presented in accordance with GAAP. The non-GAAP measures presented may be different from the measures used by other companies. The Company urges investors to review the reconciliation of its non-GAAP measures to the most directly comparable GAAP measure, included in the accompanying financial tables.
Cash EBITDA is net income plus asset impairment, estimated lease termination charges and other closing costs, depreciation and amortization, net interest expense, net (gain) loss on disposal of equipment, stock-based compensation, acquisition costs, pre-opening costs, severance, gain on debt forgiveness, gain on bargain purchase, provision (benefit) for income taxes, and non-cash rent.
Free cash flow is the Cash EBITDA less cash paid for property, equipment and leasehold improvements. Adjusted net income (loss) is net income plus asset impairment, estimated lease termination charges and other closing costs, less gain on debt forgiveness and gain on bargain purchase. Adjusted earnings per diluted share equals adjusted net income (loss) divided by the weighted average shares outstanding, assuming dilution.
Restaurant-level operating margins are equal to net restaurant sales, less restaurant-level food and beverage cost, labor and benefit costs, and operating expenses for Company-owned restaurants.
Forward-Looking Statements
Statements in this press release that are not strictly historical, including but not limited to statements regarding the timing of the Company’s restaurant openings, the timing of refreshes and the timing or success of refranchising plans, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, which may cause the Company’s actual results to differ materially from expected results. Although the Company believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectation will be attained. Factors that could cause actual results to differ materially from the Company’s expectation include the impact of the COVID-19 virus pandemic, financial performance, restaurant industry conditions, execution of restaurant development and construction programs, franchisee performance, changes in local or national economic conditions, availability of financing, governmental approvals and other risks detailed from time to time in the Company’s SEC reports.
Contact: Jeff Crivello – Chief Executive Officer jeff.crivello@bbq-holdings.com
BBQ HOLDINGS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (Unaudited)
Three Months Ended Year Ended January 2, 2022 January 3, 2021 January 2, 2022 January 3, 2021 Revenue: Restaurant sales, net $ 62,690 $ 31,293 $ 187,872 $ 109,544 Franchise royalty and fee revenue 3,538 2,291 12,187 8,919 Franchisee national advertising fund contributions 501 298 1,711 1,124 Licensing and other revenue 1,666 376 4,672 1,650 Total revenue 68,395 34,258 206,442 121,237 Costs and expenses: Food and beverage costs 19,249 9,661 55,969 33,867 Labor and benefits costs 19,809 10,252 59,297 37,228 Operating expenses 18,868 10,733 55,223 36,984 Depreciation and amortization expenses 2,470 1,301 7,395 5,121 General and administrative expenses 5,660 4,371 19,176 14,195 National advertising fund expenses 501 298 1,711 1,124 Asset impairment, estimated lease termination charges and other closing costs, net 10 869 116 5,683 Pre-opening expenses 21 103 204 10 Gain on disposal of property, net (1,113 ) (703 ) (979 ) (1,810 ) Total costs and expenses 65,475 36,885 198,112 132,402 Income (loss) from operations 2,920 (2,627 ) 8,330 (11,165 ) Other income (expense): Interest expense (144 ) (214 ) (583 ) (805 ) Interest income 31 49 178 154 Gain on forgiveness of debt — — 14,109 — Gain on bargain purchase (208 ) (429 ) 2,995 13,246 Total other income (expense) (321 ) (594 ) 16,699 12,595 Income (loss) before income taxes 2,599 (3,221 ) 25,029 1,430 Income tax (expense) benefit (144 ) 318 (661 ) 2,837 Net income (loss) 2,455 (2,903 ) 24,368 4,267 Net (income) loss attributable to non-controlling interest 147 67 (347 ) 680 Net income (loss) attributable to shareholders $ 2,602 $ (2,836 ) $ 24,021 $ 4,947 Income (loss) per common share: Basic net income (loss) per share attributable to shareholders $ 0.25 $ (0.31 ) $ 2.44 $ 0.54 Diluted net income (loss) per share attributable to shareholders $ 0.25 $ (0.31 ) $ 2.42 $ 0.54 Weighted average shares outstanding - basic 10,445 9,175 9,826 9,155 Weighted average shares outstanding - diluted 10,550 9,175 9,922 9,156
BBQ HOLDINGS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except per share data) (unaudited)
ASSETS Current assets: January 2, 2022 January 3, 2021 Cash and cash equivalents $ 40,309 $ 18,101 Restricted cash 1,152 1,502 Accounts receivable, net of allowance for doubtful accounts of $270,000 and $277,000, respectively 5,476 4,823 Inventories 3,316 2,271 Prepaid expenses and other current assets 3,919 1,252 Assets held for sale — 1,070 Total current assets 54,172 29,019 Property, equipment and leasehold improvements, net 39,943 32,389 Other assets: Operating lease right-of-use assets 78,843 61,634 Goodwill 3,037 601 Intangible assets, net 23,444 9,967 Deferred tax asset, net 3,692 4,934 Other assets 1,292 1,724 Total assets $ 204,423 $ 140,268 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 7,661 $ 6,385 Current portion of operating lease liabilities 11,904 6,185 Current portion of long-term debt and finance lease liabilities 1,621 2,111 Accrued compensation and benefits 7,121 2,390 Gift card liability 11,257 6,554 Other current liabilities 8,510 3,212 Total current liabilities 48,074 26,837 Long-term liabilities: Operating lease liabilities, less current portion 77,729 63,105 Finance lease liabilities, less current portion 79 — Long-term debt, less current portion 13,197 22,169 Other liabilities 997 1,224 Total liabilities 140,076 113,335 Shareholders’ equity: Common stock, $.01 par value, 100,000 shares authorized, 10,495 and 9,307 shares issued and outstanding at January 2, 2022 and January 3, 2021, respectively 105 93 Additional paid-in capital 21,782 8,748 Retained earnings 43,391 19,370 Total shareholders’ equity 65,278 28,211 Non-controlling interest (931 ) (1,278 ) Total equity 64,347 26,933 Total liabilities and equity $ 204,423 $ 140,268
BBQ HOLDINGS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited)
Year Ended January 2, 2022 January 3, 2021 Cash flows from operating activities: Net income $ 24,368 $ 4,267 Adjustments to reconcile net income to cash flows provided by operations: Depreciation and amortization 7,395 5,121 Stock-based compensation 1,268 886 Net gain on disposal (979 ) (1,783 ) Asset impairment, estimated lease termination charges and other closing costs, net — 5,483 Gain on forgiveness of debt (14,109 ) — Gain on bargain purchase (2,995 ) (13,246 ) Amortization of operating right-of-use assets 8,514 5,249 Deferred tax asset 337 (2,837 ) Other non-cash items 905 796 Changes in operating assets and liabilities: Accounts receivable, net (1,570 ) (1,011 ) Prepaid expenses and other assets (2,983 ) 1,460 Accounts payable 1,276 2,418 Accrued compensation 4,730 (244 ) Lease liabilities (8,278 ) (5,152 ) Gift card liability 3,341 (2,133 ) Accrued and other liabilities 3,638 2,814 Cash flows provided by operating activities 24,858 2,088 Cash flows from investing activities: Proceeds from the sale of assets 2,587 2,869 Purchases of property, equipment and leasehold improvements (3,826 ) (3,499 ) Payments for acquired restaurants (18,808 ) (5,381 ) Payments received on note receivable 785 42 Cash flows used for investing activities (19,262 ) (5,969 ) Cash flows from financing activities: Proceeds from long-term debt 15,000 22,058 Payments for debt issuance costs (114 ) (45 ) Payments on long-term debt (10,403 ) (4,621 ) Tax payments for restricted stock units and stock options exercised (1,094 ) — Proceeds from sale of common stock, net of offering costs 12,428 — Proceeds from exercise of stock options 445 6 Cash provided by financing activities 16,262 17,398 Increase in cash, cash equivalents and restricted cash 21,858 13,517 Cash, cash equivalents and restricted cash, beginning of period 19,603 6,086 Cash, cash equivalents and restricted cash, end of period $ 41,461 $ 19,603 Supplemental Disclosures Cash paid for interest, net $ 494 $ 706 Non-cash investing and financing activities: Operating right-of-use assets acquired 23,544 51,682 Lease liabilities assumed pursuant to acquisitions 26,166 51,682 Gift card liability assumed pursuant to acquisitions 1,362 3,923 Inventory acquired pursuant to acquisitions 623 1,178
BBQ HOLDINGS, INC. AND SUBSIDIARIES OPERATING RESULTS (unaudited)
Three Months Ended Year Ended January 2, 2022 January 3, 2021 January 2, 2022 January 3, 2021 Food and beverage costs(1) 30.7 % 30.9 % 29.8 % 30.9 % Labor and benefits costs(1) 31.6 % 32.8 % 31.6 % 34.0 % Operating expenses(1) 30.1 % 34.3 % 29.4 % 33.8 % Restaurant-level operating margin(1)(2) 7.6 % 2.1 % 9.3 % 1.3 % Depreciation and amortization expenses(3) 3.6 % 3.8 % 3.6 % 4.2 % General and administrative expenses(3) 8.3 % 12.8 % 9.3 % 11.7 % Income (loss) from operations(3) 4.3 % (7.7 ) % 4.0 % (9.2 ) %
(1) As a percentage of restaurant sales, net(2) Restaurant-level operating margins are equal to restaurant sales, net, less restaurant-level food and beverage costs, labor and benefit costs, and operating expense.(3) As a percentage of total revenue
BBQ HOLDINGS, INC. AND SUBSIDIARIES RESTAURANT-LEVEL PROFIT AND RESTAURANT-LEVEL MARGIN (1) NON-GAAP RECONCILIATION (in thousands)
Three Months Ended Year Ended January 2, 2022 January 3, 2021 January 2, 2022 January 3, 2021 Restaurant sales, net $ 62,690 $ 31,293 $ 187,872 $ 109,544 Restaurant operating costs (2) 57,926 30,646 170,489 108,079 Restaurant-level profit $ 4,764 $ 647 $ 17,383 $ 1,465 Restaurant-level margin 7.6 % 2.1 % 9.3 % 1.3 %
(1) For Company-owned restaurants.
BBQ HOLDINGS, INC. AND SUBSIDIARIES CASH EBITDA AND FREE CASH FLOW NON-GAAP RECONCILIATION (in thousands, except per share data) (unaudited)
Three Months Ended Year Ended January 2, 2022 January 3, 2021 January 2, 2022 January 3, 2021 (dollars in thousands) Net income $ 2,455 $ (2,903 ) $ 24,368 $ 4,267 Asset impairment and estimated lease termination charges and other closing costs 10 869 116 5,683 Depreciation and amortization 2,470 1,301 7,395 5,121 Interest expense, net 113 165 405 651 Net gain on disposal of equipment (1,113 ) (703 ) (979 ) (1,810 ) Stock-based compensation 336 517 1,268 939 Acquisition costs 375 (58 ) 925 (105 ) Pre-opening costs 21 103 204 10 Severance - 35 - 86 Gain on debt forgiveness - - (14,109 ) - Gain on bargain purchase 208 429 (2,995 ) (13,246 ) Provision for income taxes 144 (318 ) 661 (2,837 ) Non-cash rent (469 ) 648 191 2,189 Cash EBITDA $ 4,550 $ 85 $ 17,450 $ 948 Less cash paid for property, equipment and leasehold improvements (1,410 ) (828 ) (3,826 ) (3,499 ) Free cash flow $ 3,140 $ (743 ) $ 13,624 $ (2,551 )
BBQ HOLDINGS, INC. AND SUBSIDIARIES ADJUSTED NET INCOME (LOSS) AND EARNINGS (LOSS) PER DILUTED SHARE NON-GAAP RECONCILIATION (in thousands, except per share data) (unaudited)
Three Months Ended Year Ended (dollars in thousands) January 2, 2022 January 3, 2021 January 2, 2022 January 3, 2021 Net income (loss) attributable to shareholders $ 2,602 $ (2,836 ) $ 24,021 $ 4,947 Asset impairment, estimated lease termination charges and other closing costs 10 869 116 5,683 Gain on debt forgiveness — — (14,109 ) — Gain on bargain purchase 208 429 (2,995 ) (13,246 ) Adjusted net income (loss) 2,820 (1,538 ) 7,033 (2,616 ) Weighted average shares outstanding - diluted 10,550 9,175 9,922 9,155 Adjusted earnings (loss) per diluted share $ 0.27 $ (0.17 ) $ 0.71 $ (0.29 )
A presentation accompanying this announcement is available at: https://www.globenewswire.com/NewsRoom/AttachmentNg/1a29f163-d269-424b-87c1-2f433536eaa0
