DALLAS, March 15, 2016 (GLOBE NEWSWIRE) -- Fogo de Chão, Inc. (NASDAQ:FOGO) today reported financial results for its 14-week fiscal fourth quarter and 53-week fiscal year ended January 3, 2016. The results for both the fourth quarter and fiscal year ended January 3, 2016 included one additional operating week as compared to the same periods of Fiscal 2014.

Key Highlights for the Fourth Quarter of 2015 Include:

• Total revenue was $77.5 million for the 14-week period ending January 3, 2016, which represents 11.5% growth over the same quarter last year on a constant currency⁽¹⁾ basis excluding the benefit of $6.8 million of sales attributable to the extra week in 2015.
• U.S. company-owned comparable restaurant sales increased 3.5%.
• Adjusted EBITDA⁽²⁾ was $19.4 million, which represents 1.3% growth over the same quarter last year on a constant currency⁽¹⁾ basis excluding the benefit of the extra week in 2015.
• Net income was $12.9 million, compared to $6.6 million in the fourth quarter of 2014.
• Adjusted net income⁽²⁾ was $8.3 million, or $0.29 per diluted share.

Key Highlights for the Fiscal Year of 2015 Include:

• Total revenue was $271.6 million for the 53-week period ending January 3, 2016, which represents 10.0% growth over the prior year on a constant currency⁽¹⁾  basis  excluding the benefit of the extra week in 2015 and the estimated impact of the World Cup⁽³⁾ benefit in 2014.
  
• U.S. company-owned comparable restaurant sales increased 2.7%.
  
• Adjusted EBITDA⁽²⁾ was $63.2 million, which represents 8.5% growth over the prior year on a constant currency⁽¹⁾  basis  excluding the benefit of the extra week in 2015 and the estimated impact of the World Cup⁽³⁾ benefit in 2014.
  
• Net income was $27.9 million, compared to $17.6 million in Fiscal 2014.
  
• Adjusted net income⁽²⁾ was $27.2 million, or $0.93 per diluted share.
  

⁽¹⁾ In order to assess how the business performed in the current period, we have adjusted the prior period on a constant currency basis. Constant currency information compares results between periods as if exchange rates had remained constant period-over-period. We compare the percent change in the results from one period to another period using constant currency to exclude the effects of foreign currency fluctuations.

⁽²⁾ Adjusted EBITDA and adjusted net income are non-GAAP measures. A reconciliation of GAAP net income to each of these measures is included in the accompanying financial data. See also "Non-GAAP Financial Measures" below.

⁽³⁾ In order to assess how the business performed in the current period, we have adjusted the prior period to exclude the estimated non-recurring benefit of business that was generated as a result of the 2014 World Cup held in Brazil.

“2015 was a great year for Fogo de Chao,” said Larry Johnson, Chief Executive Officer of Fogo de Chão, Inc.  “Among the highlights were the opening of six new U.S. locations, our first joint venture location in Mexico as well as our IPO in June.  We also drove U.S. comps up 3.5% through initiatives we implemented to drive trial and frequency while at the same time growing our average check. We are also working diligently on growing our group dining platform as well as focusing on menu innovation and daypart expansion with our Gaucho Lunch and Sunday Brunch offerings.”

Fourth Quarter 2015 Financial Results

Total revenue for the fourth quarter of Fiscal 2015 was $77.5 million compared to $68.7 million in the fourth quarter of 2014.  The Company’s fourth quarter of 2015 included 14 weeks compared to 13 weeks in the fourth quarter of 2014.  The $8.8 million increase is primarily attributable to $6.8 million of sales generated during the extra week of the quarter which included the New Years’ holiday, increases in comparable restaurant sales in the US, and new restaurant locations opened in the last 12 months, partially offset by a $5.3 million negative foreign exchange impact. Excluding the impact of the extra week in 2015 and the impact of foreign exchange, total revenues for the fourth quarter increased 11.5% over the prior year period. Company-owned comparable restaurant sales, which include both U.S. and Brazil restaurants, increased 2.8%. 

U.S. restaurant revenue increased 23.5% to $65.3 million in the fourth quarter of 2015 from $52.9 million in the fourth quarter of 2014 primarily due to a 3.5% increase in comparable restaurant sales, an increase in sales from new unit development, and the benefit of the extra week of sales in the quarter. Excluding the impact of the extra week in 2015, U.S. revenues for the fourth quarter increased 12.2% over the prior year period.

Brazil restaurant revenue was $12.1 million in the fourth quarter of 2015 compared to $15.7 million in the fourth quarter of 2014.  The decrease in revenue compared to last year was driven largely by a $5.3 million foreign exchange impact, partially offset by the extra week of sales during the quarter, and sales from our second Rio location which opened in 2015.  Excluding the impact of the extra week in 2015 and the impact of foreign exchange, Brazil revenues for the fourth quarter increased 9.0% over the prior year period. Comparable restaurant sales in Brazil were flat in the fourth quarter of 2015.

GAAP net income for the fourth quarter of 2015 was $12.9 million, compared to net income of $6.6 million in the fourth quarter of 2014.  Adjusted net income in the fourth quarter of 2015 was $8.3 million, or $0.29 per diluted share, compared to $7.8 million, or $0.27 per diluted share in the fourth quarter of 2014 on a constant currency basis. The extra week in the fourth quarter of 2015 is estimated to have positively impacted results by approximately $0.06 per diluted share.  A reconciliation between GAAP net income and adjusted net income is included in the accompanying financial data.

Development Update

During the fourth quarter the Company opened four new restaurants in the U.S.  The new locations include the Company’s second Las Vegas area restaurant in Summerlin, Nevada, its second Houston area restaurant in The Woodlands, Texas, its first restaurant in San Francisco and its first restaurant in New Orleans. In 2016 we expect to open five to six restaurants in the U.S, one of which is already open, and at least one joint venture restaurant.

As of January 3, 2016, the Company operated 40 company-owned restaurants, ten of which are in Brazil, and one joint venture restaurant in Mexico City.

Investors are reminded that the actual number and timing of new restaurant openings is subject to a number of factors outside of the Company's control including, but not limited to, weather conditions and factors under the control of landlords, contractors and regulatory/licensing authorities.

2016 Outlook

Based on current information, the Company is providing its guidance for the 52-week fiscal year 2016, which ends on January 1, 2017. Diluted net income per share is expected to range between $0.93 and $0.96, which represents growth of 13% to 17% over adjusted diluted net income per share of $0.82⁽¹⁾ in Fiscal 2015. Diluted net income per share guidance for Fiscal 2016 is based, in part, on the following annual assumptions:

• Total revenue of $293 million to $297 million, assuming an exchange rate of 4.11 Brazilian reais to 1 US dollar;
• Company-owned comparable restaurant sales growth of 1% to 2%;
• Restaurant contribution margin of 31.0% to 31.5%;
• Pre-opening expenses of $3.7 million to $4.3 million;
• General and administrative expenses of $20 million to $21 million;
• Opening of five to six Company-owned restaurants;
• Capital expenditures of $31 million to $35 million;
• Depreciation expense of $14.7 million to $15.2 million; and
• Tax rate of 32% to 33%.

⁽¹⁾ The Company’s 2015 results are adjusted for comparison to 2016 by $0.06 for the extra week impact in 2015 and $0.05 to adjust 2015 to the same Brazilian Real exchange rate that we have projected for our 2016 guidance (4.11 reais to 1 US dollar).

Guidance Policy

The Company intends to provide annual guidance as it relates to revenue, comparable restaurant sales growth, restaurant contribution margin, general and administrative expense, tax expense, and development schedule.  The Company expressly disclaims any duty to update this guidance.

Conference Call/ Webcast

The Company will host a conference call to discuss its fourth quarter 2015 financial results today at 5:00 PM Eastern Time. Hosting the call will be Larry Johnson, Chief Executive Officer, Barry McGowan, President, and Tony Laday, Chief Financial Officer.

The conference call can be accessed live over the phone by dialing (877) 407-0789 or for international callers by dialing (201) 689-8562. A replay will be available two hours after the call and can be accessed by dialing (877) 870-5176 or for international callers by dialing (858) 384-5517; the passcode is 13630252. The replay will be available through Tuesday, March 22, 2016.  The conference call will also be webcast live and later archived on Fogo’s corporate website at ir.fogodechao.com under the ‘News & Events’ section.

About Fogo de Chão

Fogo de Chão (fogo-dee-shoun) is a leading Brazilian steakhouse, or churrascaria, which has specialized for over 36 years in fire-roasting high-quality meats utilizing the centuries-old Southern Brazilian cooking technique of churrasco. Fogo delivers a distinctive and authentic Brazilian dining experience through the combination of high-quality Brazilian cuisine and a differentiated service model known as espeto corrido (Portuguese for "continuous service") delivered by gaucho chefs. Fogo offers its guests a tasting menu of a variety of meats including beef, lamb, pork and chicken, simply seasoned and carefully fire-roasted to expose their natural flavors, a gourmet Market Table with seasonal salads, soup and fresh vegetables, seafood, desserts, signature cocktails and an award-winning wine list. The first Fogo de Chão opened in Brazil in 1979. The Company currently operates 31 restaurants in the United States, 10 in Brazil and one joint venture restaurant in Mexico. Visit FOGO.com for more information.

Safe Harbor Statement

This release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties. Forward-looking statements relate to expectations, beliefs, projections, guidance, future plans, objectives and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts, such as statements regarding our future financial condition or results of operations, our prospects and strategies for future growth, the development and introduction of new products, and the implementation of our marketing and branding strategies. Forward-looking statements can also be identified by words such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “seeks,” “intends,” “targets” or the negative of these terms or other comparable terminology. Forward-looking statements are not guarantees of future performance and actual results may differ significantly from the results discussed in the forward-looking statements. Factors that might cause such differences include, but are not limited to, those discussed in the section entitled "Risk Factors" in our final prospectus filed on June 19, 2015 and our subsequent quarterly reports filed on Form 10-Q filed with the Securities and Exchange Commission. The forward-looking statements included in this press release are made only as of the date hereof. Except as required by applicable securities law, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.

Non-GAAP Financial Measures

The Company uses the following non-GAAP financial measures: EBITDA, Adjusted EBITDA, Adjusted net income (loss), and Adjusted weighted average shares (collectively the "non-GAAP financial measures"). The Company also presents certain results of operations on a constant currency basis to exclude the effects of foreign currency fluctuations and has adjusted 2014 results to exclude the non-recurring benefit of business that was generated as a result of the 2014 World Cup held in Brazil. The Company uses these non-GAAP financial measures for financial and operational decision making and as a means to evaluate period-to-period comparisons. The Company believes that they provide useful information about operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making. The non-GAAP measures used by the Company in this press release may be different from the methods used by other companies.

Investor Contact:

IR@fogodechao.com
(972) 361-6225

Media Contact:

Kristina Jorge, ICR
Kristina.Jorge@icrinc.com
(646) 277‐1234