The Cheesecake Factory Reports Results for First Quarter of Fiscal 2013

  The Cheesecake Factory Reports Results for First Quarter of Fiscal 2013

Business Wire

CALABASAS HILLS, Calif. -- April 24, 2013

The Cheesecake Factory Incorporated (NASDAQ: CAKE) today reported financial
results for the first quarter of fiscal 2013, which ended on April 2, 2013.

Total revenues were $463.0 million in the first quarter of fiscal 2013 as
compared to $435.8 million in the prior year first quarter. Net income and
diluted net income per share were $25.3 million and $0.47, respectively, in
the first quarter of fiscal 2013.

The Company recorded a pre-tax charge related to discontinuing operations of
three Grand Lux Cafe restaurants during the first quarter of fiscal 2013, as
previously disclosed. The amount of the charge was approximately $644
thousand, which decreased diluted net income per share by approximately $0.01.
Excluding these items, net income was $25.7 million and diluted net income per
share remained $0.47.

Operating Results

Comparable restaurant sales at The Cheesecake Factory and Grand Lux Cafe
increased 1.4% in the first quarter of fiscal 2013, but were negatively
impacted by approximately 0.6% due to storms in the Northeast. Excluding this
weather impact, comparable restaurant sales increased 2.0%.

By concept, comparable restaurant sales grew 1.6% at The Cheesecake Factory
and declined 0.9% at Grand Lux Cafe.

“Our performance in the first quarter demonstrates the strength of our
restaurants domestically, as well as globally, with the initial licensed
Cheesecake Factory restaurants in the Middle East performing at very high
levels,” said David Overton, Chairman and Chief Executive Officer. “We are now
into our fourth year of delivering positive, quarterly comparable restaurant
sales. And once again, our sales solidly outpaced the industry, coming in at
the top end of our expectations. Our brand is strong and relevant, with
ongoing menu innovation and high service levels as key sales drivers, creating
an exceptional dining experience. Operationally, we are executing very well,
maintaining excellent food quality and guest satisfaction scores. We are well
positioned to deliver on our goals of returning to peak operating margins and
averaging ‘mid-teens’ earnings growth, with multiple levers in place to
achieve these objectives and drive shareholder value even higher.”

Capital Allocation

The Company’s Board of Directors declared a quarterly cash dividend of $0.12
per share on the Company’s common stock. The dividend is payable on May 21,
2013 to shareholders of record at the close of business on May 8, 2013.

During the first quarter of fiscal 2013, the Company repurchased 1.2 million
shares of its common stock at a cost of $42.0 million. The Company continues
to expect that it will return the majority of its free cash flow to
shareholders in fiscal 2013 in the form of dividends and share repurchases.

Conference Call and Webcast

A conference call to review the Company’s results for the first quarter of
fiscal 2013 will be held today at 2:00 p.m. Pacific Time. The conference call
will be broadcast live over the Internet and a replay will be available
shortly after the call and continue through May 24, 2013. To listen to the
conference call, please go to the Company’s website at
www.thecheesecakefactory.com at least 15 minutes prior to the start of the
call to register and download any necessary audio software. Click on the
“Investors” link on the home page and select the conference call link at the
top of the page.

About The Cheesecake Factory Incorporated

The Cheesecake Factory Incorporated created the upscale casual dining segment
in 1978 with the introduction of its namesake concept. The Company operates
174 full-service, casual dining restaurants throughout the U.S., including 162
restaurants under The Cheesecake Factory® mark; 11 restaurants under the Grand
Lux Cafe® mark; and one restaurant under the RockSugar Pan Asian Kitchen®
mark. Internationally, three The Cheesecake Factory® restaurants operate under
a licensing agreement. The Company also operates two bakery production
facilities in Calabasas Hills, CA and Rocky Mount, NC that produce over 70
varieties of quality cheesecakes and other baked products. To learn more about
the Company, visit www.thecheesecakefactory.com.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. These statements involve
known and unknown risks, uncertainties and other factors that may cause the
actual results, performance or achievements of the Company to be materially
different from any future results, performance or achievements expressed or
implied by forward-looking statements, including uncertainties related to: the
Company’s ability to continue to expand domestically and internationally; the
Company’s ability to deliver comparable sales increases and leverage those
sales increases; the Company’s ability to outperform the casual dining
industry; the Company’s ability to maintain its relevance to consumers; the
Company’s ability to increase its food quality and overall guest satisfaction
scores; the Company’s ability to deliver operating margin and earnings per
share growth; the Company’s ability to increase shareholder value; factors
outside of the Company’s control that impact consumer confidence and spending;
current and future macro national and regional economic and credit market
conditions; changes in national and regional unemployment rates; the economic
health of the Company’s landlords and other tenants in retail centers in which
its restaurants are located; the economic health of suppliers, vendors and
other third parties providing goods or services to the Company; adverse
weather conditions in regions in which the Company’s restaurants are located;
factors that are under the control of government agencies, landlords and other
third parties; and other risks and uncertainties detailed from time to time in
the Company’s filings with the Securities and Exchange Commission (“SEC”), as
set forth below. Investors are cautioned that forward-looking statements are
not guarantees of future performance and that undue reliance should not be
placed on such statements. Forward-looking statements speak only as of the
dates on which they are made and the Company undertakes no obligation to
publicly update or revise any forward-looking statements or to make any other
forward-looking statements, whether as a result of new information, future
events or otherwise, unless required to do so by securities laws. Investors
are referred to the full discussion of risks and uncertainties associated with
forward-looking statements and the discussion of risk factors contained in the
Company’s latest Annual Report on Form 10-K, Quarterly Reports on Form 10-Q
and Current Reports on Form 8-K as filed with the SEC, which are available at
www.sec.gov.


The Cheesecake Factory Incorporated and Subsidiaries
Consolidated Financial Statements
(unaudited; in thousands, except per share and statistical data)
                                                            
                          13 Weeks Ended                             13 Weeks Ended
Consolidated
Statements of             April 2, 2013                              April 3, 2012
Operations
                                         Percent of                            Percent of
                          Amount          Revenues               Amount          Revenues
Revenues                  $ 463,018             100.0     %          $ 435,754             100.0     %
Costs and
expenses:
Cost of sales               114,293             24.7      %            107,598             24.7      %
Labor expenses              150,983             32.6      %            142,980             32.8      %
Other operating
costs and                   110,978             24.0      %            105,888             24.3      %
expenses
General and
administrative              28,789              6.2       %            28,665              6.6       %
expenses
Depreciation and
amortization                19,230              4.2       %            18,298              4.2       %
expenses
Impairment of
assets and lease            644                 0.1       %            -                   0.0       %
terminations
Preopening costs           1,314         0.3       %           2,106         0.5       %
Total costs and            426,231       92.1      %           405,535       93.1      %
expenses
Income from                 36,787              7.9       %            30,219              6.9       %
operations
Interest and
other                      (1,310  )      (0.2      )%          (1,148  )      (0.2      )%
(expense)/income,
net
Income before               35,477              7.7       %            29,071              6.7       %
income taxes
Income tax                 10,185        2.2       %           8,349         1.9       %
provision
Net income                $ 25,292        5.5       %          $ 20,722        4.8       %
                                                                                         
Basic net income          $ 0.48                                    $ 0.39    
per share
Basic weighted
average shares             52,255                                   53,680  
outstanding
                                                                                         
Diluted net               $ 0.47                                    $ 0.37    
income per share
Diluted weighted
average shares             54,305                                   55,699  
outstanding
                                                                                         
Selected Segment
Information
Revenues:
The Cheesecake
Factory                   $ 412,551                                  $ 390,747
restaurants
Other                      50,467                                   45,007  
                          $ 463,018                                 $ 435,754 
                                                                                         
Income from
operations:
The Cheesecake
Factory                   $ 59,237                                   $ 53,811
restaurants
Other                       4,500                                      3,511
Corporate                  (26,950 )                                 (27,103 )
                          $ 36,787                                  $ 30,219  
                                                                                         
                                                                     
Selected
Consolidated              April 2, 2013                              January 1, 2013
Balance Sheet
Information
Cash and cash                                 $ 87,140                                   $ 83,569
equivalents
Total assets                                    1,071,108                                  1,092,167
Total liabilities                               489,266                                    512,441
Stockholders'                                   581,842                                    579,726
equity
                                                                                         
                                                                                         
                          13 Weeks Ended                             13 Weeks Ended
Supplemental              April 2, 2013                              April 3, 2012
Information
Comparable
restaurant sales                                1.4       %                                2.4       %
percentage change
Restaurants
opened during                                   -                                          1
period
Restaurants open                                174                                        171
at period-end
Restaurant                                      2,291                                      2,212
operating weeks

Reconciliation of Non-GAAP Results to GAAP Results

In addition to the results provided in accordance with Generally Accepted
Accounting Principles ("GAAP") in this press release, the Company is providing
non-GAAP measurements which present the first quarter fiscal 2013 net income
and diluted net income per share excluding the impact from a certain item.
Additional detail regarding this item can be found on the first page of this
press release.

The non-GAAP measurements are intended to supplement the presentation of the
Company’s financial results in accordance with GAAP. The Company believes that
the presentation of these items provides additional information to facilitate
the comparison of past and present financial results.

                                                       
                                    13 Weeks Ended            13 Weeks Ended
                                    April 2, 2013             April 3, 2012
                                    (unaudited; in thousands, except per share
                                    data)
Net income (GAAP)                   $      25,292             $      20,722
After-tax impact from:
- Impairment of assets and                386                      -
lease terminations (1)
Net income (non-GAAP)               $      25,678             $      20,722

Diluted net income per share
(GAAP)
After-tax impact from:              $      0.47               $      0.37
- Impairment of assets and                0.01                     -
lease terminations (1)
Diluted net income per share        $      0.47               $      0.37
(non-GAAP) (2)

     
        The pre-tax amount associated with this item was $644 in the first
(1)     quarter of fiscal 2013 and was recorded in impairment of assets and
        lease terminations.
(2)     Diluted net income per share may not add due to rounding.

Contact:

The Cheesecake Factory Incorporated
Jill Peters
818-871-3000
investorrelations@thecheesecakefactory.com
 
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