Bravo Brio Restaurant Group, Inc. (BBRG) has reported 75.53 percent plunge in profit for the quarter ended Mar. 26, 2017. The company has earned $0.55 million, or $0.04 a share in the quarter, compared with $2.25 million, or $0.15 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $2.03 million, or $0.13 a share compared with $2.25 million or $0.15 a share, a year ago. Revenue during the quarter went down marginally by 1.91 percent to $106.72 million from $108.80 million in the previous year period. Gross margin for the quarter contracted 116 basis points over the previous year period to 65.65 percent. Total expenses were 98.98 percent of quarterly revenues, up from 97.07 percent for the same period last year. That has resulted in a contraction of 191 basis points in operating margin to 1.02 percent.
Operating income for the quarter was $1.09 million, compared with $3.19 million in the previous year period.
Brian OMalley, president and chief executive officer, said, "We achieved sequential progress in comparable restaurant sales during the first quarter despite a difficult operating environment. Looking ahead, we are optimistic about our prospects and ability to generate further improvement in sales and profitability as we begin to realize the return on investments made during 2016 in food quality, presentation, and service."
Bravo Brio Restaurant Group, Inc. projects revenue to be in the range of $405 million to $415 million for financial year 2017. For financial year 2017, the company forecasts diluted earnings per share to be in the range of $0.22 to $0.32 on adjusted basis.
Working capital remains negativeWorking capital of Bravo Brio Restaurant Group, Inc. was negative $55.23 million on Mar. 26, 2017 compared with negative $46.25 million on Mar. 27, 2016. Current ratio was at 0.18 as on Mar. 26, 2017, down from 0.21 on Mar. 27, 2016. Cash conversion cycle (CCC) has increased to 36 days for the quarter from 33 days for the last year period. Days sales outstanding were almost stable at 7 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 3 days for the quarter compared with 8 days for the previous year period. At the same time, days payable outstanding went down to 46 days for the quarter from 48 for the same period last year.
Debt comes down
Bravo Brio Restaurant Group, Inc. has recorded a decline in total debt over the last one year. It stood at $40.70 million as on Mar. 26, 2017, down 11.33 percent or $5.20 million from $45.90 million on Mar. 27, 2016. Short-term debt stood at $4 million as on Mar. 26, 2017. Total debt was 25.72 percent of total assets as on Mar. 26, 2017, compared with 19.02 percent on Mar. 27, 2016. Interest coverage ratio deteriorated to 2.13 for the quarter from 9.17 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
