Bravo Brio Restaurant Group, Inc. Reports Third Quarter & Year-to-Date 2012 Financial Results

Bravo Brio Restaurant Group, Inc. Reports Third Quarter & Year-to-Date 2012
Financial Results

Updates Fiscal 2012 Outlook; Provides Preliminary View of Fiscal 2013; Board
of Directors Authorizes $20 Million Share Repurchase Program

COLUMBUS, Ohio, Oct. 23, 2012 (GLOBE NEWSWIRE) -- Bravo Brio Restaurant Group,
Inc. (Nasdaq:BBRG), owner and operator of the BRAVO! Cucina Italiana (BRAVO!)
and BRIO Tuscan Grille (BRIO) restaurant concepts, today reported financial
results for the thirteen and thirty-nine week periods ended September 23,
2012, updated its fiscal 2012 outlook, as well as provided a preliminary view
of fiscal 2013. The Company has also announced that its Board of Directors has
authorized a $20 million share repurchase program.

Selected Third Quarter of 2012 Highlights Compared to the Year-Ago Period
Include the Following:

  *Revenues increased 8.1% to $95.9 million from $88.8 million.
  *Total comparable restaurant sales decreased 0.9%.
  *Comparable restaurant sales decreased 0.5% at BRAVO! and 1.1% at BRIO.
  *Restaurant-level operating profit increased 7.7% to $16.0 million from
    $14.9 million.
  *GAAP net income was $2.8 million, or $0.14 per diluted share, compared to
    GAAP net income of $3.6 million, or $0.18 per diluted share and modified
    pro forma net income of $2.6 million, or $0.13 per diluted share, in 2011.
    Please see the reconciliation from GAAP to modified pro forma (non-GAAP)
    net income in the accompanying financial tables.

Selected Year-to-Date 2012 Highlights Compared to the Year-Ago Period Include
the Following:

  *Revenues increased 8.6% to $297.1 million from $273.6 million.
  *Total comparable restaurant sales decreased 0.2%.
  *Comparable restaurant sales decreased 0.1% at BRAVO! and 0.2% at BRIO.
  *Restaurant-level operating profit increased 8.9% to $51.8 million from
    $47.6 million.
  *GAAP net income was $11.7 million, or $0.57 per diluted share, compared to
    GAAP net income of $71.5 million, or $3.48 per diluted share and modified
    pro forma net income of $10.7 million, or $0.52 per diluted share, in
    2011.Please see the reconciliation from GAAP to modified pro forma
    (non-GAAP) net income in the accompanying financial tables.
  *The $59.8 million decrease in GAAP net income was primarily due to a $57.2
    million income tax benefit recorded in the second quarter of 2011 related
    to a reduction of a valuation allowance against net deferred tax assets.

"During the third quarter we improved earnings despite difficult
comparisonsandmodestsales deleveraging.While the macroeconomic environment
remains challenging, our focus continues to be on driving traffic by exceeding
our guests' expectations each and every day," said Saed Mohseni, Chief
Executive Officer and President.

Mohseni continued, "Our fourth quarterinitiativesinclude executing on
ourrecently launchedguest loyaltyprogram,rolling outnew menusfocused on
culinary excellenceandvalue driven price points, gearing up for the Holiday
season with an emphasisonourbanquet business,andpromoting gift cards
withinourrestaurants and through third party distributors."

"Our Board of Directorshas recently approved a $20 million share repurchase
programasa clear demonstration of our confidence in the future of this
Company. Our intention is to continue to allocate capital smartly and
efficiently, andweareexcitedtohave an additional lever at our disposal to
enhance longer term value," Mohseni concluded.

Third Quarter 2012 Financial Results

Revenues increased approximately $7.1 million, or 8.1%, to $95.9 million in
the third quarter of 2012, from $88.8 million in the third quarter of
2011.The increase in revenues was primarily due to an additional 116
operating weeks provided by seven restaurants, six BRIOs and one BRAVO!,
opened in the first thirty-nine weeks of 2012 and six restaurants opened in
the second half of 2011.Total comparable restaurant sales decreased 0.9%, as
a 3.4% decrease in guest counts was partially offset by a $0.59 increase in
average check.

Total restaurant operating costs increased $6.0 million, or 8.1%, to $79.9
million in the third quarter of 2012, from $73.9 million in the third quarter
of 2011.Total restaurant-level operating costs include costs of sales, labor
costs, operating costs and occupancy costs.Total restaurant-level operating
profit, which consists of revenues minus total restaurant-level operating
costs, increased $1.1 million, or 7.7%, to $16.0 million from $14.9 million in
the same period last year.As a percentage of revenues, total restaurant-level
operating profit decreased to 16.7% in the third quarter of 2012 from 16.8% in
the third quarter of 2011.This was primarily attributable to an increase in
labor costs that were partially offset by a decrease in cost of sales in 2012
as compared to 2011.

GAAP net income for the third quarter of 2012 was $2.8 million, or $0.14 per
diluted share, compared to GAAP net income of $3.6 million, or $0.18 per
diluted share, in the same period last year.

On a modified pro forma basis, a measure that management believes offers a
more useful year-over-year performance comparison, there were no adjustments
from GAAP net income for the third quarter of 2012 and net income was $2.8
million, or $0.14 per diluted share.This compared to modified pro forma net
income of $2.6 million, or $0.13 per diluted share, in the same period last
year.Please see the accompanying financial tables for a reconciliation from
GAAP net income to modified pro forma (non-GAAP) net income.

Third Quarter 2012 Brand Operating Highlights

Comparable restaurant sales at BRAVO! decreased 0.5% and average weekly sales
were $63,600.Comparable restaurant sales at BRIO decreased 1.1% in the third
quarter of 2012 and average weekly sales were $91,200.

As of September 23, 2012, the Company operated 48 BRAVO!, 52 BRIO, and one Bon
Vie restaurant across 31 states.Included in this total is one BRIO restaurant
that is operated under a management agreement.

Outlook

Based upon the year-to-date results as of September 23, 2012, and projections
for the fourth quarter of 2012, the Company is updating its fiscal 2012
financial forecast as follows:

  *Revenues of $410 million to $413 million.
  *Flat total annual comparable restaurant sales.
  *Development of ten restaurants, including one restaurant operated under a
    management agreement.
  *Pre-opening costs of $4.9 million to $5.3 million.
  *Diluted earnings per share of $0.89 to $0.92.
  *Capital expenditures of $25 million to $27 million.
  *Diluted share count of approximately 20.7 million.
  *Annual effective tax rate of approximately 29.0%.

The Company is also providing a preliminary view of fiscal 2013, which is a
52-week year. Revenues are expected in the $430 million to $440 million range
based on comparable restaurant sales of zero to positive 1.0%. The Company
also anticipates developing seven to eight new restaurants.

Stock Repurchase Program

On October 17, 2012, the Board of Directors approved the terms of a share
repurchase plan, under which the Company is authorized to repurchase up to $20
million of its common shares beginning October 26, 2012 and ending on December
29, 2013, subject to the Company's pre-existing blackout periods.The Company
may repurchase shares on the open market or through privately negotiated
transactions at times and prices considered appropriate by the Company at the
discretion of management and subject to its assessment of market conditions
and other economic factors. 

Investor Conference Call and Webcast

The Company will host an investor conference call to discuss third quarter
2012 financial results today at 5:00 PM ET. Hosting the call will be Saed
Mohseni, Chief Executive Officer, Jim O'Connor, Chief Financial Officer and
Brian O'Malley, Chief Operating Officer.

The conference call can be accessed live over the phone by dialing (888)
401-4691, or for international callers (719) 325-2333. A replay will be
available one hour after the call and can be accessed by dialing (877)
870-5176 or (858) 384-5517 for international callers; the conference ID is
7349616. The replay will be available until Tuesday, October 30, 2012.

The call will be webcast live from the Company's investor relations website at
http://investors.bbrg.com.

About Bravo Brio Restaurant Group, Inc.

Bravo Brio Restaurant Group, Inc. is a leading owner and operator of two
distinct Italian restaurant brands, BRAVO! Cucina Italiana and BRIO Tuscan
Grille. BBRG has positioned its brands as multifaceted culinary destinations
that deliver the ambiance, design elements and food quality reminiscent of
fine dining restaurants at a value typically offered by casual dining
establishments, a combination known as the upscale affordable dining segment.
Each of BBRG's brands provides its guests with a fine dining experience and
value by serving affordable cuisine prepared using fresh flavorful ingredients
and authentic Italian cooking methods, combined with attentive service in an
attractive, lively atmosphere. BBRG strives to be the best Italian restaurant
company in America and is focused on providing its guests an excellent dining
experience through consistency of execution.

Forward-Looking Statements

Some of the statements in this release contain forward-looking statements,
which involve risks and uncertainties. These statements relate to future
events or our future financial performance. We have attempted to identify
forward-looking statements by terminology including "anticipates," "believes,"
"can," "continue," "could," "estimates," "expects," "intends," "may," "plans,"
"potential," "predicts," "should" or "will" or the negative of these terms or
other comparable terminology. These statements are only predictions and
involve known and unknown risks, uncertainties, and other factors, including
those discussed under the heading "Risk Factors" in our Annual Report on Form
10-K filed with the Securities and Exchange Commission on March 6, 2012.

Although we believe that the expectations reflected in the forward-looking
statements are reasonable based on our current knowledge of our business and
operations, we cannot guarantee future results, levels of activity,
performance or achievements. We assume no obligation to provide revisions to
any forward-looking statements should circumstances change.

  
  BRAVO BRIO RESTAURANT GROUP, INC. AND SUBSIDIARIES
  Consolidated Statements of Operations
  GAAP Presentation with Reconciliation to Modified Pro Forma
  Thirteen and Thirty-Nine Weeks Ended September 23, 2012 and September 25, 2011 (Unaudited)
  (Dollars in thousands, except per share data)         
                                                                               
                      Thirteen       Thirteen       Thirty-Nine      Thirty-Nine 
                         Weeks           Weeks           Weeks             Weeks
                      Ended          Ended          Ended           Ended      
                      September      September      September         September    
                         23,             25,             23,                25,
                      2012           2011           2012              2011         
                                                                               
                                                                               
  Revenues             $95,921      $88,774      $297,105        $273,592   
                                                                               
  Costs and expenses                                                            
  Cost of sales       25,045   26.1% 23,617   26.6% 77,164      26.0% 73,008      26.7%
  Labor               33,528   35.0% 30,730   34.6% 102,950     34.7% 92,893      34.0%
  Operating           15,089   15.7% 13,958   15.7% 45,752      15.4% 42,388      15.5%
  Occupancy           6,230    6.5%  5,587    6.3%  19,448      6.5%  17,747      6.5%
   General and
  administrative       5,700    5.9%  5,185    5.8%  17,085      5.8%  16,067      5.9%
   expenses
  Restaurant          1,442    1.5%  1,281    1.4%  3,615       1.2%  2,882       1.1%
   preopening costs
  Depreciation and    4,689    4.9%  4,303    4.8%  13,765      4.6%  12,555      4.6%
   amortization
  Total costs and     91,723   95.6% 84,661   95.4% 279,779     94.2% 257,540     94.1%
   expenses
  Income from          4,198    4.4%  4,113    4.6%  17,326      5.8%  16,052      5.9%
   operations
  Net interest         322      0.3%  394      0.4%  1,008       0.3%  1,315       0.5%
   expense
  Income before        3,876    4.0%  3,719    4.2%  16,318      5.5%  14,737      5.4%
   income taxes
  Income tax           1,049    1.1%  121      0.1%  4,612       1.6%  (56,806)    -20.8%
   (benefit) expense
  Net income           2,827    2.9%  3,598    4.1%  11,706      3.9%  71,543      26.1%
                                                                               
  Net income per       $0.14        $0.19        $0.60           $3.71      
   basic share
  Net income per       $0.14        $0.18        $0.57           $3.48      
   diluted share
                                                                               
   Weighted average
  shares               19,618        19,330        19,558           19,286      
   outstanding-basic
   Weighted average
  shares               20,649        20,551        20,617           20,545      
   outstanding-diluted
                                                                               
  Certain percentage amounts may not sum due to rounding.                                      
                                                                               
  ADJUSTMENTS TO RECONCILE GAAP TO MODIFIED PRO FORMA RESULTS                           
                                                                               
  Income Tax Expense   --           (995)         --              (4,232)     
   (1)
   Reduction in
  Valuation Allowance  --           --           --              (57,175)    
   (2)
  Secondary Offering   --           --           --              600         
   Costs (3)
                                                                               
  Total Adjustments    --           (995)         --              (60,807)    
                                                                               
  Modified Pro Forma   $2,827       $2,603       $11,706         $10,736    
   Net Income
                                                                               
   Net income per
  basic share-pro      $0.14        $0.13        $0.60           $0.56      
   forma
   Net income per
  diluted share- pro   $0.14        $0.13        $0.57           $0.52      
   forma
                                                                               
   Weighted average
  shares               19,618        19,330        19,558           19,286      
   outstanding-basic
   Weighted average
  shares               20,649        20,551        20,617           20,545      
   outstanding-diluted
                                                                               
                                                                               
   Notes to
  adjustments shown                                                             
   above:
                                                                               
1. This adjustment reflects a tax rate of 30.0%, which reflects our estimate of our      
   long-term effective tax rate.
2. This adjustment reflects the reduction of a significant portion of our valuation
  allowance in the second quarter of 2011 as it was deemed more likely than not that    
   the Company would utilize its future net deferred tax assets.
3. Reflects the non-recurring costs, incurred by us, associated with the secondary
  offering of our common shares by certain of the Company's existing shareholders,      
   completed on April 1, 2011.We did not receive any proceeds from the offering.
                                                                               


BRAVO BRIO RESTAURANT GROUP, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
As of September 23, 2012 and December 25, 2011
(Dollars in thousands)
                                                               
                                                 September 23,  December 25,
                                                 2012           2011
Assets                                            (Unaudited)    
Current assets                                                  
Cash and cash equivalents                        $7,919       $10,093
Accounts receivable                              5,829         6,403
Tenant improvement allowance receivable          3,003         1,219
Inventories                                      2,587         2,767
Deferred income taxes, net                       3,354         2,328
Prepaid expenses and other current assets        1,694         2,367
Total current assets                             24,386        25,177
Property and equipment, net                       177,185       163,208
Deferred income taxes, net                        51,825        55,811
Other assets, net                                 4,287         3,430
Total assets                                      $257,683     $247,626
Liabilities and stockholders' equity                            
Current liabilities                                             
Trade and construction payables                  $13,498      $13,058
Accrued expenses                                 23,295        20,183
Current portion of long-term debt                2,366         1,714
Deferred lease incentives                        6,122         5,639
Deferred gift card revenue                       6,911         10,863
Total current liabilities                        52,192        51,457
Deferred lease incentives                         65,081        62,565
Long-term debt                                    21,058        30,857
Other long-term liabilities                       20,774        18,163
Commitments and contingencies                                   
Stockholders' equity                                            
Common shares, no par value per share -
authorized, 100,000,000 shares; issued and        195,322       193,034
outstanding, 19,684,284 atSeptember 23, 2012
and19,476,559 at December 25, 2011
Preferred shares, no par value, per share -
authorized, 5,000,000 shares; issued and          --           --
outstanding, 0 shares at September 23, 2012 and
December 25, 2011
Retained deficit                                 (96,744)      (108,450)
Total stockholders' equity                       98,578        84,584
Total liabilities and stockholders' equity        $257,683     $247,626

CONTACT: Investor Relations
         Don Duffy/Raphael Gross
         (203) 682-8200/ (203) 682-8253
         investors@bbrg.com