Bravo Brio Restaurant Group, Inc. (BBRG) swung to a net loss for the quarter ended Sep. 25, 2016. The company has made a net loss of $2.98 million, or $ 0.20 a share in the quarter, against a net profit of $0.91 million, or $0.06 a share in the last year period. On adjusted basis, net loss for the quarter stood at $2.36 million, or $0.16 a share compared with a net profit of $0.91 million, or $0.06 a share in the last year period. Revenue during the quarter dropped 3.77 percent to $94.59 million from $98.29 million in the previous year period. Gross margin for the quarter contracted 227 basis points over the previous year period to 64.79 percent. Operating margin for the quarter stood at negative 4.95 percent as compared to a positive 1.09 percent for the previous year period.
Operating loss for the quarter was $4.69 million, compared with an operating income of $1.07 million in the previous year period.
Brian O'Malley, president and chief executive officer, said, "Comparable restaurant sales trends improved in the latter half of the third quarter, primarily at BRIO, and we are encouraged by positive guest feedback on our new menus as we prepare for the important holiday season. Although the execution phase of these menu rollouts meaningfully impacted both cost of sales and labor during the third quarter, we made headway working through near-term operating inefficiencies as the quarter progressed."
For financial year 2016, Bravo Brio Restaurant Group, Inc. projects revenue to be in the range of $408 million to $413 million. The company expects net loss to be in the range of $1.62 million to $0.55 million and adjusted net income to be in the range of $2.26 million to $3.04 million. It company forecasts diluted earnings per share to be in the range of $0.15 to $0.20 on adjusted basis.
Working capital remains negative
Working capital of Bravo Brio Restaurant Group, Inc. was negative $49.47 million on Sep. 25, 2016 compared with negative $39.01 million on Sep. 27, 2015. Current ratio was at 0.19 as on Sep. 25, 2016, down from 0.29 on Sep. 27, 2015. Cash conversion cycle (CCC) has increased to 28 days for the quarter from 26 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 4 days for the quarter compared with 8 days for the previous year period. At the same time, days payable outstanding went down to 39 days for the quarter from 41 for the same period last year.
Debt remains almost stable
Bravo Brio Restaurant Group, Inc. has recorded a decline in total debt over the last one year. It stood at $51 million as on Sep. 25, 2016, down 0.97 percent or $0.50 million from $51.50 million on Sep. 27, 2015. Short-term debt stood at $4 million as on Sep. 25, 2016. Total debt was 21.46 percent of total assets as on Sep. 25, 2016, compared with 20.43 percent on Sep. 27, 2015. Debt to equity ratio was at 1 as on Sep. 25, 2016, up from 0.83 as on Sep. 27, 2015. 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: editor@irisindia.net
