Bob Evans Reports Fiscal 2012 Full-Year And Fourth-Quarter Results; Provides FY 2013 Outlook

COLUMBUS, Ohio, June 5, 2012 /PRNewswire/ --

Company announces reported 4Q 2012 earnings per diluted share of $0.76, and fiscal 2012 earnings per diluted share of $2.45; non-GAAP EPS, adjusted for 4Q tax benefits, is $0.68 for the quarter, or $2.42 for the full year, at the higher end of earnings guidance

Sets fiscal year 2013 EPS guidance at $2.66 to $2.72; reaffirms long-term annual earnings growth guidance of 7-10 percent

Farm-Fresh Refresh Program continues to deliver strong results; 50% of Bob Evans Restaurants expected to be converted by end of fiscal 2013

Bob Evans Restaurants to open up to 10 new restaurants during fiscal 2013; Company pleased with the performance of its two new locations in Arkansas, representing expansion of Bob Evans Restaurants' footprint to a 19th state

Foods segment garners market share gains in sausage and side dish categories during fiscal 2012; continued plant optimization initiatives and summer product launches expected to drive profitable growth in side dish and frozen categories

Continued strong free cash flow generation enabled return of nearly $100 million to shareholders via dividends and share repurchases during fiscal 2012, while investing nearly $90 million in fixed assets

Bob Evans Farms, Inc. (NASDAQ: BOBE) today announced its financial results for the fiscal 2012 fourth quarter and full year ended Friday, April 27, 2012.

Fiscal 2012 commentary
Chairman and Chief Executive Officer Steve Davis said, "We achieved the higher end of our EPS guidance range this year.  We are particularly pleased with this performance as it caps three years of repositioning each of our businesses for profitable top-line growth.  Importantly, we also continued to reduce debt and return capital to shareholders in the form of dividends and share repurchases, while investing in important growth projects.  This disciplined and balanced approach to capital allocation has been critical to our past success, and it will continue to drive our strategy.

"Our aggressive roll-out of the Farm-Fresh Refresh remodel program at Bob Evans Restaurants continues to generate returns of nearly 20 percent.  Furthermore, with the recent successful opening of two new Bob Evans Restaurant locations in Arkansas, our 19th state, we are leveraging the brand recognition the Foods segment has achieved with its presence on grocery store shelves nationally.  Bob Evans Restaurants plans to open up to 10 new restaurants during fiscal 2013 to augment the growth generated by improving trends in the core business, including continued double-digit growth of our off-premise sales layers, as well as the lift provided by the Farm-Fresh Refresh program."

Davis continued, "Last week, our Foods segment announced its latest plant optimization initiative concerning expansion of its Sulphur Springs, Texas plant.  This initiative will enable us to better serve the customers of our high-potential side dish and frozen products businesses, while also providing significant annual cost savings.  We believe the initiative will increase annual operating income by approximately $7 to $8 million beginning in fiscal 2015.  We expect savings of $4 to $5 million during fiscal 2014, which will be the transition year for the project.  Our plant optimization initiatives have helped us offset the cumulative impact of more than $70 million in sow cost increases since 2009.  We believe these initiatives will allow us to compete effectively, and maintain margins in the future.  

"The Foods segment faced the dual challenges of continued sow cost increases and a highly promotional competitive environment this year.  As a result, margins were adversely impacted.  Nonetheless, as with our two restaurant segments, we are focused on transforming the Foods segment to deliver top-line and bottom-line growth, even under challenging market conditions.  Just as we are evolving our restaurant concepts with off-premise sales layers, the Foods segment is evolving to meet the needs of its customers who are increasingly seeking healthy, convenient products that cater to their time-constrained, on-the-go lifestyles.  The Foods segment currently supplies more than 24,000 retail locations, and we believe it has the potential to serve at least 36,000 locations within the next five years.  Furthermore, we continue to pursue inorganic growth opportunities to grow the Foods segment profitably.

"While much remains to be accomplished, we are energized by the opportunities that lie ahead.  We have long been known for delivering adjusted earnings growth due to our disciplined operating principles.  We believe we are now positioned well to deliver profitable top-line growth, and we are proceeding confidently.  We pulled back on restaurant development several years ago, because we knew we needed to improve our concepts and close underperforming restaurants.  Today, we are undergoing transformational remodel and rebuilding programs, while simultaneously building new restaurants in core and new geographies.  Likewise, the Foods segment underwent a transformation of its plant and distribution networks to ready itself for growth.  Now the foundation has been set, and we believe our Company is well-positioned for sustainable and profitable growth in fiscal 2013, and beyond."

The Company is now separating its reporting of Bob Evans Restaurants and Mimi's Cafe into two reportable segments.  Previously these two chains were aggregated into one reportable segment.   

Fiscal 2012 consolidated results
The Company reported consolidated operating income of $107.9 million in fiscal 2012. The full-year results include the negative net pretax impact of $3.9 million, or $2.7 million after tax, from the following items:

  • $3.2 million, $2.3 million, and $0.1 million in Bob Evans Restaurants, Mimi's Cafe, and the Foods segment, respectively, for fixed asset impairments related primarily to restaurants and various other properties. These noncash charges increased each segment's selling, general and administrative (SG&A) expense line. 
  • $0.3 million in retirement and severance charges that increased the SG&A line of Mimi's Cafe.
  • $0.8 million in losses on sale of assets that increased the SG&A line of Bob Evans Restaurants. 
  • $0.8 million in gains on sale of assets that reduced the SG&A line of the Foods segment. 
  • $1.8 million and $0.2 million of additional income for Bob Evans Restaurants and Mimi's Cafe, respectively, as a result of eliminating a two-day early cutoff. Prior to fiscal 2012, the consolidated operating results of the Bob Evans Restaurants and Mimi's Cafe segments were reported based upon a two-day early cutoff. During fiscal 2012, we eliminated this two-day early cutoff, as it was no longer required to achieve a timely consolidation. The effect of this change was to reflect 367 days of operating results for Bob Evans Restaurants and Mimi's Cafe within our fiscal 2012 consolidated income statement.  Virtually every line of the income statement was impacted by this item.

Excluding the $3.9 million negative net impact of these charges, the Company's fiscal 2012 reported consolidated operating income of $107.9 million would have been approximately $111.8 million, or 6.8 percent of net sales.

Earnings per diluted share for fiscal 2012 were reported at $2.45.  Excluding the net negative impact of the aforementioned charges, diluted earnings per share would have been $2.54

The Company reported consolidated operating income of $88.5 million in fiscal 2011. The full-year fiscal 2011 results include the negative net pretax impact of $19.4 million, or $13.5 million after tax, from the following items:

  • $1.9 million and $13.1 million in Bob Evans Restaurants and Mimi's Cafe, respectively, for fixed asset impairments, related primarily to restaurants and various other properties. These noncash charges increased each segment's SG&A line.
  • $3.0 million in restructuring charges related to lean manufacturing productivity initiatives in the Foods segment, including the discontinuation of fresh sausage operations at two facilities, which increased the segment's SG&A line.
  • $0.9 million and $0.6 million in Bob Evans Restaurants and Mimi's Cafe, respectively, for retirement and severance charges. These charges increased each segment's SG&A line.

Excluding the $19.4 million negative net impact of these charges, the Company's fiscal 2011 reported consolidated operating income of $88.5 million would have been approximately $107.9 million, or 6.4 percent of net sales.

Earnings per diluted share for fiscal 2011 were reported at $1.78.  Excluding the net negative impact of the aforementioned charges, diluted earnings per share would have been $2.22.  During the fourth quarter of fiscal 2012, the tax rate recorded by the Company of 18.0% was due primarily to several significant tax benefits for favorable tax reserve adjustments, additional Work Opportunity Tax Credit, and benefits from investments in Corporate Owned Life Insurance.  Had the tax rate been 31.0%, consistent with Company guidance for the fourth quarter, our fiscal 2012 non-GAAP diluted EPS would have been $2.42, up 9.0% from last year's $2.22.

As a result of the items noted above, the Company uses non-GAAP financial measures excluding those items.  These financial measures are used by management to monitor and evaluate the ongoing performance of the Company.  The Company believes that the additional measures are useful to investors for financial analysis.  However, non-GAAP measures are not in accordance with, nor are they a substitute for, GAAP measures.  Please see the table in this release for a reconciliation of non-GAAP measures to the nearest comparable GAAP results.  Results in the following discussion are presented on a non-GAAP basis, excluding the items noted above.

Fiscal 2012 consolidated income statement summary
Below is a summary of the Company's non-GAAP consolidated fiscal 2012 income statement.

  • Net sales – Consolidated non-GAAP net sales were $1.65 billion in fiscal 2012, a 1.8 percent decrease, compared to $1.68 billion in fiscal 2011. This decrease was the result of same-store sales declines at Bob Evans Restaurants and Mimi's Cafe, partially offset by sales generated by new restaurants not currently in the same-store sales base.  Net sales in the Foods segment were down due to an increase in promotional discounts from the prior year.
  • Operating income – Consolidated non-GAAP operating income was $111.8 million, or 6.8% of net sales in fiscal 2012, a 3.6 percent improvement, compared to $107.9 million, or 6.4% in fiscal 2011. This increase in both dollars and rate was due to significantly increased profitability at Bob Evans Restaurants, in spite of an additional $2.2 million invested in pre-opening expenses.
  • Net interest expense – The Company's net interest expense was $7.9 million in fiscal 2012, compared to $8.9 million in fiscal 2011. The decrease was primarily the result of lower average borrowings in fiscal 2012 compared to fiscal 2011. The Company reduced its total debt position by $13.6 million in fiscal 2012.  
  • Income taxes – The Company's non-GAAP effective tax rate for fiscal 2012 was 27.3%, compared to 31.7% in fiscal 2011.  The lower effective tax rate in fiscal 2012 reflects the impact of settlements with certain taxing authorities and a reduction for certain prior years' tax reserves.
  • Diluted weighted-average shares outstanding – The Company's diluted weighted-average share count was 29.8 million in fiscal 2012, compared to 30.4 million in fiscal 2011. The Company repurchased 2.1 million shares for a total of $70.3 million in fiscal 2012.

Fiscal 2012 Bob Evans Restaurants segment summary
Bob Evans Restaurants' non-GAAP fiscal 2012 operating income was $91.0 million, or 9.4 percent of net sales.   Bob Evans Restaurants' non-GAAP fiscal 2011 operating income was $76.2 million, or 7.8 percent of net sales.   The increase in profitability was due primarily to favorable operating wages and other operating expenses.  Pre-opening expenses increased $2.2 million compared to last year.

Net sales – Bob Evans Restaurants' non-GAAP net sales were $968.6 million in fiscal 2012, a 0.8 percent decrease compared to $976.7 million in fiscal 2011. Same-store sales at Bob Evans Restaurants decreased 0.6 percent in fiscal 2012, with average menu prices up 1.7 percent.


 

SSS Restaurants

 

Feb.

 

March

 

April

 

4Q  FY '12

 

FY 2012

Bob Evans

554

2.2%

-2.0%

-1.5%

-0.6%

-0.6%

During fiscal 2012, Bob Evans Restaurants:

  • Refreshed 87 restaurants.
  • Opened four new restaurants.
  • Rebuilt three restaurants.
  • Closed two restaurants.

Cost of sales – Bob Evans Restaurants' non-GAAP cost of sales was 23.7 percent of net sales in fiscal 2012 and fiscal 2011. Average pricing for the year of 1.7% and ongoing efficiency initiatives were offset by commodity increases.

Operating wages – Bob Evans Restaurants' non-GAAP cost of labor in fiscal 2012 was 38.2 percent of net sales, compared to 39.5 percent of net sales in fiscal 2011. The improvement resulted from labor productivity initiatives and a reduction in health insurance costs, partially offset by sales deleverage due to a decline in same-store sales.

Other operating expenses – Bob Evans Restaurants' non-GAAP other operating expenses in fiscal 2012 were $167.8 million, or 17.3 percent of net sales, compared to $171.2 million, or 17.5 percent of net sales, in fiscal 2011. This decrease resulted from lower expenditures related to restaurant supplies, service contracts, utilities, and occupancy costs.  The rate decline was partially offset by sales deleverage.  

SG&A – Bob Evans Restaurants' non-GAAP SG&A expenses were $61.4 million, or 6.3 percent of net sales, in fiscal 2012, compared with $64.1 million, or 6.6 percent of net sales, in fiscal 2011. The decline in expenses was due entirely to increased allocations of corporate expenses to the Mimi's Cafe segment.  Allocations to Mimi's Cafe increased $4.1 million, compared to fiscal 2011.

Depreciation – Bob Evans Restaurants' depreciation expenses were $49.1 million, or 5.1 percent of net sales, in fiscal 2012, compared with $48.6 million, or 5.0 percent of net sales, in fiscal 2011.  The increase was due to increased capital spending in fiscal 2012 to support new restaurant development and the restaurant refresh program.  The average cost of a refresh was approximately $230,000 in fiscal 2012.

Fiscal 2012 Mimi's Cafe segment summary
Mimi's Cafe's non-GAAP fiscal 2012 operating income was $1.0 million, compared with non-GAAP fiscal 2011 operating income of $6.0 million. The decrease in profitability was due primarily to an increase of $4.1 million in allocated SG&A to fully reflect the corporate support Mimi's is receiving, as well as a charge of $1.3 million to reflect higher workers' compensation expense from previously existing claims, primarily for claims arising in California.  Excluding those factors, operating income was approximately flat on reduced sales as cost control activities and efficiency improvements were able to offset the sales decline.

Net sales – Mimi's Cafe's non-GAAP net sales were $364.1 million in fiscal 2012, a 4.3 percent decrease, compared to $380.3 million in fiscal 2011. Same-store sales at Mimi's Cafe decreased 4.0 percent in fiscal 2012, with average menu prices up 3.4 percent.

During fiscal 2012, Mimi's Cafe performed a minor remodel on one restaurant, and did not open or rebuild any restaurants.


 

SSS Restaurants

 

Feb.

 

March

 

April

 

4Q  FY '12

 

FY 2012

Mimi's Cafe

143

-0.2%

-5.3%

-3.6%

-3.1%

-4.0%

Cost of sales – Mimi's Cafe's non-GAAP cost of sales was 26.8 percent of net sales in fiscal 2012, compared to 27.3 percent of net sales in fiscal 2011. Cost of sales decreased in fiscal 2012 due to pricing and ongoing efficiency initiatives, including the actual-versus-theoretical food cost program, which were partially offset by commodity increases.

Operating wages – Mimi's Cafe's non-GAAP cost of labor in fiscal 2012 was 37.2 percent of net sales, compared to 37.1 percent of net sales in fiscal 2011. Operating wages as a percent of net sales increased as a result of the negative effect of the $1.3 million workers' compensation provision, referenced above, and sales deleverage.

Other operating expenses – Mimi's Cafe's non-GAAP other operating expenses in fiscal 2012 were $81.3 million, or 22.3 percent of net sales, compared to $83.3 million, or 21.9 percent of net sales in fiscal 2011. The decrease in other operating expense dollars was the result of decreases in controllable expenses, such as utility costs, and gift/credit card processing fees. 

SG&A – Mimi's Cafe's non-GAAP SG&A expenses in fiscal 2012 were $25.3 million, or 6.9 percent of net sales, compared to $21.9 million, or 5.8 percent of net sales, in fiscal 2011. The SG&A increase resulted primarily from increased allocations of $4.1 million to better reflect the corporate support Mimi's is receiving, partially offset by cost control initiatives.

Fiscal 2012 Foods segment summary
The Foods segment's non-GAAP operating income was $19.7 million, or 6.3 percent of net sales, in fiscal 2012, compared with non-GAAP operating income of $25.8 million, or 8.1 percent of net sales, in fiscal 2011.  The operating income decline in fiscal 2012 was due primarily to a year-over-year increase in commodity costs, of which sows accounted for $4.6 million, and an increase in promotional discounts of $4.4 million, partially offset by a decline in SG&A expenses, as discussed below.

Net sales – The Foods segment's net sales were $314.7 million in fiscal 2012, down 1.6 percent, compared to $320.0 million in fiscal 2011. Total pounds sold were essentially flat, while an increase in promotional discounts of $4.4 million, primarily in response to competitive pressures to protect market share, contributed to the decline in net sales.  Promotional discounts and other selling allowances affect the income statement as a reduction to the gross sales line.  

Cost of sales – The Foods segment's cost of sales was 57.5 percent of net sales in fiscal 2012, compared to 54.7 percent of net sales in fiscal 2011. The increase was due primarily to higher sow costs relative to the prior year.  Sow costs averaged $61.58 per hundredweight in fiscal 2012, compared to $57.17 in fiscal 2011. 

Operating wages – The Foods segment's cost of labor was 8.8 percent of net sales in fiscal 2012, compared to 10.2 percent of net sales in fiscal 2011. The improvement was due to outsourcing of distribution services to a third party beginning in the second quarter of fiscal 2012, subsequent to the Company's sale of its Springfield, Ohio, distribution center, as well as efficiencies resulting from the Company's ongoing manufacturing productivity initiatives.  The operating wages and fringe benefits related to the sale of the distribution center are now classified as other operating expenses, as the distribution center is operated by an unrelated third party.  

Other operating expenses – The Foods segment's other operating expenses were 6.1 percent of net sales in fiscal 2012, compared to 5.1 percent of net sales in fiscal 2011. The increase was due primarily to costs associated with outsourcing distribution services, as noted above.

SG&A – The Foods segment's non-GAAP SG&A expenses were 18.3 percent of net sales in fiscal 2012, compared to 18.8 percent of net sales in fiscal 2011. The improvement was due to a reduction in consulting fees, tighter cost controls, lower incentive compensation, and lower advertising costs.

Fourth-quarter fiscal 2012 commentary
Fourth quarter results reflect same-store sales momentum that slowed during the middle of the quarter.  However, April reflected a moderating sales trend in both concepts.  During April, Bob Evans Restaurants implemented a $9.99 three-course dinner platform, headlined by three steak entrees, to address sales weakness at dinner.  Davis noted, "Early results of the $9.99 dinner program are encouraging.  Our $6 Farmhouse Deals, $6.99 Endless Farmhouse Lunch, and bakery offerings, have been driving results, particularly at breakfast and lunch, and the $9.99 dinner drove positive dinner traffic in May.  Dinner is a critical component of our plan to return to consistent positive same-store sales growth.  We plan to bring a similar offering to Mimi's Cafe in the near future and expect it will also have a positive effect on sales.

"In our Foods segment, increased promotional spending, primarily in response to competitive pressures to protect market share, negatively affected results.  However, during the quarter we received an authorization from our largest customer for shipment of one of the new varieties of our frozen breakfast burritos that was launched in January.  We believe the effort we have put into rebuilding our frozen foods presence is beginning to pay off.  Along with our high-growth side dish business, we believe our new products pipeline in frozen products is set to facilitate growth in market segments that align well with our customers' focus on value, quality, and convenience."

Fourth-quarter fiscal 2012 consolidated results
The Company reported consolidated operating income of $28.8 million in the fourth quarter of fiscal 2012. The fourth-quarter results include the negative net pretax impact of $1.8 million, or $1.3 million after-tax, from the following items:

  • $0.4 million and $2.3 million in Bob Evans Restaurants and Mimi's Cafe, respectively, for fixed asset impairments related to underperforming restaurants. These noncash charges increased each segment's SG&A line.
  • $1.2 million charge for losses on sale of assets that increased the SG&A line of Bob Evans Restaurants.
  • $0.2 million for gains on sale of assets that reduced the SG&A line of the Foods segment.
  • $1.8 million and $0.2 million of additional income for Bob Evans Restaurants and Mimi's Cafe, respectively, as a result of eliminating a two-day early reporting cutoff. 

Excluding the $1.8 million negative net impact of these charges, the Company's fourth quarter fiscal 2012 reported operating income would have been approximately $30.6 million, or 7.5 percent of net sales.

Earnings per diluted share for fourth quarter fiscal 2012 were reported at $0.76.  Excluding the net negative impact of the aforementioned charges, diluted earnings per share would have been $0.80.

The Company reported consolidated operating income of $27.8 million in the fourth quarter of fiscal 2011. The fourth quarter fiscal 2011 results include the negative net pretax impact of $5.1 million, or $3.9 million after tax, from the following items:

  • $1.1 million and $3.5 million in Bob Evans Restaurants and Mimi's Cafe, respectively, for fixed asset impairments related to underperforming restaurants and various other properties. These noncash charges affected each segment's SG&A line.
  • $0.2 million and $0.2 million in Bob Evans Restaurants and the Foods segment, respectively, for retirement and severance charges.  These charges affected each segment's SG&A line.

Excluding this negative total net impact of $5.1 million, the Company's fourth quarter fiscal 2011 reported operating income would have been approximately $32.9 million, or 7.9 percent of net sales.

Earnings per diluted share for fourth quarter fiscal 2011 were reported at $0.60.  Excluding the net negative impact of the aforementioned charges, diluted earnings per share would have been $0.73.

During the fourth quarter of fiscal 2012, the tax rate recorded by the Company was 18.0%, driven primarily by favorable reserve adjustments.  Had the tax rate been 31.0%, as the Company guided to for the fourth quarter, non-GAAP diluted EPS would have been $0.68, down 6.8% from last year's EPS of $0.73.

As a result of the items noted above, the Company uses non-GAAP financial measures excluding those items.  These financial measures are used by management to monitor and evaluate the ongoing performance of the Company.  The Company believes that the additional measures are useful to investors for financial analysis.  However, non-GAAP measures are not in accordance with, nor are they a substitute for, GAAP measures.  Please see the table in this release for a reconciliation of non-GAAP measures to the nearest comparable GAAP results.  Results in the following discussion are presented on a non-GAAP basis excluding the items noted above.

Fourth-quarter fiscal 2012 consolidated income statement summary
Below is a summary of the Company's consolidated fourth-quarter fiscal 2012 income statement.

  • Net sales – Consolidated non-GAAP net sales were $406.5 million in the fourth quarter of fiscal 2012, a 2.9 percent decrease, compared to $418.7 million in the fourth quarter of fiscal 2011. This decrease was the result of net sales declines in the Foods segment as well as same-store sales declines at Mimi's Cafe and, to a lesser extent, Bob Evans Restaurants.  
  • Operating income – Consolidated non-GAAP operating income was $30.6 million, or 7.5% of net sales, in fiscal 2012, compared to $32.9 million, or 7.9% of net sales, in fiscal 2011. This decrease in both dollars and rate was due to the impact of sales declines at Mimi's Cafe and the Foods segment, along with higher promotional discounts in the Foods segment, partially offset by improved profitability at Bob Evans Restaurants, in spite of an additional $1 million invested in pre-opening expenses.
  • Net interest expense – The Company's net interest expense was $1.9 million in the fourth quarter of fiscal 2012, compared to $2.1 million in the fourth quarter of fiscal 2011. The decrease was the result of lower average borrowings in the fourth quarter of fiscal 2012, compared to the fourth quarter of fiscal 2011.
  • Income taxes – The Company's non-GAAP effective tax rate in the fourth quarter of fiscal 2012 was 18.6 percent, compared to 27.7 percent in the fourth quarter of fiscal 2011. The lower effective tax rate in fiscal 2012 reflects significant tax benefits for favorable tax reserve adjustments, additional Work Opportunity Tax Credit, and benefits from investments in Corporate Owned Life Insurance. 
  • Diluted weighted-average shares outstanding – The Company's diluted weighted-average shares outstanding were 29.1 million in the fourth quarter of fiscal 2012, compared to 30.4 million in the fourth quarter of fiscal 2011. The Company repurchased 619,310 shares for $23.3 million in the fourth quarter of fiscal 2012.

Fourth-quarter fiscal 2012 Bob Evans Restaurants segment summary
Bob Evans Restaurants' fiscal 2012 fourth-quarter non-GAAP operating income was $24.8 million, or 10.3 percent of net sales, compared with $21.3 million, or 8.8 percent of net sales, last year.  The primary drivers of the increase in profitability were cost of sales and other operating cost reductions.

Net sales – Bob Evans Restaurants' non-GAAP net sales were $239.6 million in the fourth quarter of fiscal 2012, compared with sales of $241.3 million last year.  The decline of approximately 0.7 percent was driven by a same-store sales decline, and the impact of 10 restaurant closures since last year.  The fourth-quarter same-store sales decline of 0.6 percent lagged the Midscale Family Style segment, according to The NPD Group's SalesTrack Weekly.  

During the fourth quarter of fiscal 2012, Bob Evans Restaurants:

  • Refreshed 39 restaurants.
  • Opened two restaurants.
  • Rebuilt one restaurant.

Cost of sales – Bob Evans Restaurants' non-GAAP cost of sales was 23.6 percent of net sales in the fourth quarter of fiscal 2012, compared to 24.2 percent in the fourth quarter of fiscal 2011. The decrease in cost of sales as a percent of net sales was due to pricing of approximately 1.7 percent and ongoing efficiency initiatives, including the actual-versus- theoretical food cost program, which were partially offset by commodity increases.

Operating wages – Bob Evans Restaurants' non-GAAP cost of labor was 38.5 percent of net sales in the fourth quarter of fiscal 2012, flat with the fourth quarter of fiscal 2011. Labor productivity initiatives were offset by negative leverage due to declines in same-store sales.

Other operating expenses – Bob Evans Restaurants' non-GAAP other operating expenses were 15.6 percent of net sales in the fourth quarter of fiscal 2012, compared to 16.6 percent of net sales in the fourth quarter of fiscal 2011. This decrease resulted from lower expenditures related to service contracts, advertising, utilities, and occupancy costs, partially offset by sales deleverage due to same-store sales declines, and an increase of pre-opening expenses of $1.0 million compared to last year.

SG&A – Bob Evans Restaurants' non-GAAP SG&A expenses were 6.7 percent of net sales in the fourth quarter of fiscal 2012, compared with 6.8 percent in the fourth quarter of fiscal 2011. The decrease was due to increased allocations of corporate expenses to Mimi's Cafe of approximately $0.9 million.

Fourth-quarter fiscal 2012 Mimi's Cafe segment summary
Mimi's Cafe's fourth-quarter fiscal 2012 non-GAAP operating income was $2.2 million, or 2.4 percent of net sales, compared with $4.0 million, or 4.1 percent of net sales, in 2011.  The primary drivers of the decline in earnings were decreased sales, a charge of $1.3 million to reflect higher workers' compensation expense from previously existing claims, primarily for claims arising in California, and a $0.9 million increase in SG&A allocations, partially offset by cost of sales efficiencies and spending reductions in direct SG&A.

Net sales – Mimi's Cafe's non-GAAP net sales were $93.7 million, a 3.1 percent decrease compared to $96.8 million in the fourth quarter of fiscal 2011. The decrease resulted from declines in same-store sales of 3.1% in the fourth quarter of fiscal 2012, with average menu prices up 1.2%.  At Mimi's Cafe, same-store sales declines of 3.1 percent trailed the Knapp Track™ casual dining index of 1.2 percent for the same period.

During the fourth quarter of fiscal 2012, Mimi's Cafe performed a minor remodel on one restaurant, and did not open or rebuild any restaurants.

Cost of sales – Mimi's Cafe's non-GAAP cost of sales was 26.5 percent of net sales in the fourth quarter of fiscal 2012, compared to 27.0 percent in the fourth quarter of fiscal 2011. The decrease in cost of sales as a percent of net sales was due to the pricing increase, as well as ongoing efficiency initiatives including the actual-versus-theoretical food cost program, which were partially offset by commodity increases.

Operating wages – Mimi's Cafe's non-GAAP cost of labor was 37.3 percent of net sales in the fourth quarter of fiscal 2012, compared to 35.4 percent in the fourth quarter of fiscal 2011. The increase in cost resulted from a charge of $1.3 million to reflect higher workers' compensation expense from previously existing claims, primarily for claims arising in California.  Excluding these charges, operating wages would have increased slightly as a percentage of sales, due primarily to sales deleverage. 

Other operating expenses – Mimi's Cafe's non-GAAP other operating expenses were 20.8 percent of net sales in the fourth quarter of fiscal 2012, compared to 21.2 percent of net sales in the fourth quarter of fiscal 2011. This decrease resulted from lower expenditures related to service contracts, restaurant supplies, utilities, and gift/credit card processing fees.

SG&A – Mimi's Cafe's non-GAAP SG&A expenses were $6.4 million, or 6.8 percent of net sales, in the fourth quarter of fiscal 2012, compared to $5.8 million, or 6.0 percent of net sales, in the fourth quarter of fiscal 2011. The increase was the result of the $0.9 million increase in corporate allocations to Mimi's Cafe.  Direct SG&A declined year-over-year, reflecting Mimi's ongoing cost reduction initiatives.

Fourth-quarter fiscal 2012 Foods segment summary
Non-GAAP operating income was $3.6 million, or 4.9 percent of net sales, in the fourth quarter, compared with $7.6 million, or 9.4 percent of sales, last year.  The primary driver of the decline was an increase in promotional discounts of $4.2 million

Net sales – The Foods segment's fourth-quarter fiscal 2012 net sales were $73.2 million, down 9.2 percent, compared to $80.6 million in the fourth quarter of fiscal 2011. Volume was down 1.3 percent, in part due to the earlier fiscal year 2012 Easter holiday, which had the effect of shifting approximately $1.0 million of sales out of the fourth quarter of fiscal 2012, and into the first quarter of fiscal 2013.  Promotional discounts provided to retailers increased $4.2 million, primarily in response to competitive pressures to protect market share. Promotional discounts and other selling allowances are included as a reduction to net sales. 

Cost of sales – The Foods segment's fourth-quarter fiscal 2012 cost of sales was 57.7 percent of net sales, compared to 54.6 percent of net sales in the fourth quarter of fiscal 2011. The increase was due primarily to the deleverage effect of the net sales decline.  Sow costs were about flat compared to last year's fourth quarter.

Operating wages – The Foods segment's fourth-quarter fiscal 2012 cost of labor was 8.4 percent of net sales, compared to 8.1 percent of net sales in the fourth quarter of fiscal 2011. The increase was due primarily to negative leverage as a result of significant increases in promotional discounts, which are netted against sales, and declines in total pounds sold. Partially offsetting these negative effects, were ongoing lean manufacturing productivity initiatives started in the second quarter of fiscal 2011, and the sale of the Springfield, Ohio, distribution center in the second quarter of fiscal 2012.  The operating wages and fringe benefits, related to the sale of the distribution center, are classified as other operating expenses, as the distribution center is now operated by an unrelated third party.

Other operating expenses – The Foods segment's other operating expenses were 7.1 percent of net sales in the fourth quarter of fiscal 2012, compared to 5.6 percent of net sales in the fourth quarter of fiscal 2011. The cost increase was due to fees associated with the third-party distribution agreement related to the sale of the distribution center, partially offset by lean manufacturing productivity initiatives.  The fees associated with the third-party distribution agreement are now classified as other operating expenses, as noted above.

SG&A – The Foods segment's non-GAAP SG&A expenses were 18.3 percent of net sales in the fourth quarter of fiscal 2012, compared to 19.2 percent of net sales in the fourth quarter of fiscal 2011. The improvement in costs resulted from general SG&A cost controls and lower incentive compensation.

Fiscal year 2013 and longer-term outlook
The Company expects earnings per share of approximately $2.66 to $2.72 in fiscal 2013. The Company also reaffirms its average annual long-term earnings growth rate guidance of approximately 7 to 10 percent.

This outlook relies on a number of important assumptions, including the risk factors discussed in the Company's filings with the Securities & Exchange Commission.

Davis said, "We are excited and confident about capitalizing on the growth opportunities ahead, including: more significant new restaurant growth at Bob Evans Restaurants; the ongoing transformation of existing Bob Evans Restaurants with the Farm-Fresh Refresh remodel program; increased marketing support for Bob Evans Restaurants; continued Foods segment distribution and market share growth; and ongoing exploration of inorganic growth opportunities in the Foods segment.

"Rest assured, we are pursuing growth in a measured and disciplined manner.  We will not allow ourselves to abandon the discipline that has enabled our Company to deliver consistent adjusted earnings growth, even under challenging economic conditions."

Particular assumptions for the Company's full-year outlook include the following:

Consolidated Company highlights

  • Net sales – approximately $1.7 billion.
  • Depreciation and amortization approximately $85 to $95 million.
  • Net interest expense approximately $9.0 to $10.0 million.
  • Effective tax rate – approximately 33.5 percent to 34.5 percent
  • Diluted weighted-average annual share count – approximately 28.5 to 29.0 million.

The Company expects to spend its remaining $29.5 million of share repurchase authorization during fiscal 2013.

  • Capital expenditures – approximately $150 to $160 million.

This estimate includes a total of approximately $20-$25 million for up to 10 new Bob Evans restaurants; $30-$35 million for the Farm-Fresh Refresh remodel program at Bob Evans Restaurants; $23-$26 million for the recently announced expansion of the Foods segment's plant in Sulphur Springs, Texas; $6 million for enhancements to the Foods segment's transportation center in Springfield, Ohio; $1 million for remodels of three Mimi's Cafe restaurants; $20-$25 million related to construction of a new corporate campus in New Albany, Ohio; and $10-$12 million for ERP design and implementation.

Bob Evans Restaurants segment 

  • Net sales: Full-year same-store sales increases between 1.0 and 3.0 percent, driven by new value platforms, and $4 million of increased marketing investment.  The Company plans to build up to 10 new Bob Evans Restaurants. 
  • Cost of sales: Commodity inflation of 2.0 to 3.0 percent; categories expected to drive the cost increase include beef, poultry, bakery and potatoes.
  • Operating margins: 9.5 to 10.0 percent.

The Company also expects pre-opening expenses related to new restaurant openings and Farm-Fresh Refresh remodel activity to grow $2.0 million, from $3.2 million in fiscal 2012 to $5.2 million in fiscal 2013.  The Company expects to record the majority of this incremental impact in the first, third and fourth quarters.

Mimi's Cafe segment

  • Net sales:  Full-year same-store sales in the -2.0 percent to 1.0 percent range, supported by $1 million of increased marketing investment. 
  • Cost of sales: Commodity inflation of 2.0 to 3.0 percent; categories expected to drive the cost increase include beef; gravies, sauces and soups; poultry; and potatoes.
  • Operating margins: 0.5 to 1.5 percent.

The Company plans to remodel three Mimi's Cafe restaurants at a total cost of approximately $1 million, but does not plan to build new Mimi's Cafe restaurants during fiscal 2013. 

Foods segment

  • Net sales: Overall net sales of $340 million to $360 million, driven by new product introductions and distribution gains in both retail and food service.
  • Cost of sales: Based on recent annual pricing trends, average sow costs of approximately $60 to $65 per hundredweight for the full year.
  • Operating margins: 7.5 to 8.5 percent.

On May 29, 2012, the Company announced its intention to close two Foods' production plants in the second quarter of fiscal year 2014.  The Company anticipates a total annual pretax benefit of approximately $7 million to $8 million.  Partial realization of the pretax benefits, amounting to $4 million to $5 million, will commence in fiscal 2014, with full realization expected by fiscal 2015.

The Company anticipates taking the following estimated pretax charges during fiscal 2013 and 2014: approximately $2.5 million to $3.5 million in cash for termination benefits and other employee costs; and approximately $1 million in cash for plant decommissioning costs, primarily during fiscal 2014.  The guidance provided excludes these costs.

Company to host conference call on Wednesday, June 6, 2012

The Company will host a conference call to discuss its year-end results at 10 a.m. (ET) on Wednesday, June 6, 2012. The dial-in number is (800) 690-3108, access code 79304596. A replay will be available at (800) 585-8367, access code 79304596.

To access the simultaneous webcast, go to www.bobevans.com/ir. The archived webcast will also be available on the Web site.

About Bob Evans Farms, Inc.
Bob Evans Farms, Inc. owns and operates full-service restaurants under the Bob Evans and Mimi's Cafe brand names. At the end of the fourth fiscal quarter (April 27, 2012), Bob Evans owned and operated 565 family restaurants in 19 states, primarily in the Midwest, mid-Atlantic and Southeast regions of the United States, while Mimi's Cafe owned and operated 145 casual restaurants located in 24 states, primarily in California and other western states. Bob Evans Farms, Inc. is also a leading producer and distributor of pork sausage and a variety of complementary convenience food items under the Bob Evans and Owens brand names.  For more information about Bob Evans Farms, Inc., visit www.bobevans.com.

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
Certain statements in this news release that are not historical facts are forward-looking statements. Forward-looking statements involve various important assumptions, risks and uncertainties. Actual results may differ materially from those predicted by the forward-looking statements because of various factors and possible events. We discuss these factors and events, along with certain other risks, uncertainties and assumptions, under the heading "Risk Factors" in Item 1A of our Annual Report on Form 10-K for the fiscal year ended April 29, 2011, and in our other filings with the Securities and Exchange Commission. We note these factors for investors as contemplated by the Private Securities Litigation Reform Act of 1995. Predicting or identifying all such risk factors is impossible. Consequently, investors should not consider any such list to be a complete set of all potential risks and uncertainties. Forward-looking statements speak only as of the date on which they are made, and we undertake no obligation to update any forward-looking statement to reflect circumstances or events that occur after the date of the statement to reflect unanticipated events. All subsequent written and oral forward-looking statements attributable to us or any person acting on behalf of the Company are qualified by the cautionary statements in this section.

Bob Evans Farms, Inc.
Earnings Release Fact Sheet (unaudited)
Fiscal 2012 – Quarter 4

Note: amounts are in thousands, except per share amounts. Tables may not foot due to rounding.

Disclosure regarding non-GAAP financial measures

The Company uses adjusted operating income, adjusted income before income taxes, adjusted provision for income taxes, adjusted net income, and adjusted earnings per share as measures for comparing its performance to prior periods and competitors, and believes it is useful because it provides investors and other interested parties a means to evaluate the Company's performance relative to its past performance, without regard to certain charges and gains. Adjusted operating income, adjusted net income before income taxes, adjusted provision for income taxes, adjusted net income, and adjusted earnings per share are not recognized GAAP terms.

GAAP to Non-GAAP Reconciliation of Operating Income (unaudited)


























Three Months Ended


Twelve Months Ended







April 27, 2012


April 29, 2011


April 27, 2012


April 29, 2011
















Operating income as reported:












Bob Evans Restaurant

$

24,946

$

20,005

$

88,810

$

73,426




Mimi's Cafe


107


477


(1,436)


(7,657)




Foods


3,738


7,328


20,500


22,771







28,791


27,810


107,874


88,540
















Adjustments:


















Bob Evans Restaurant












Impairment


393


1,138


3,199


1,896




Severance


-


173


-


854




Loss on sale of assets


1,243


-


836


-




Two-day early cutoff


(1,803)


-


(1,803)


-




Total Bob Evans Restaurant
Adjustments


(167)


1,311


2,232


2,750

















Mimi's Cafe












Impairment


2,327


3,535


2,327


13,070




Severance


-


-


287


569




Two-day early cutoff


(207)


-


(207)


-




Total Mimi's Cafe Adjustments


2,120


3,535


2,407


13,639

















Foods












Impairment


-


-


87


-




Severance


-


222


-


2,995




Gain on sale of assets


(158)


-


(847)


-




Total Foods Adjustments


(158)


222


(760)


2,995
















Total Adjustments












Impairment


2,720


4,673


5,613


14,966




Severance


-


395


287


4,418




Loss (gain) on sale of assets


1,085


-


(11)


-




Two-day early cutoff


(2,010)


-


(2,010)


-







1,795


5,068


3,879


19,384
















Adjusted Operating Income












Bob Evans Restaurant


24,779


21,316


91,042


76,176




Mimi's Cafe


2,227


4,012


971


5,982




Foods


3,580


7,550


19,740


25,766




Total

$

30,586

$

32,878

$

111,753

$

107,924



























GAAP to Non-GAAP Reconciliation of Operating Income (unaudited)




Consolidated Results



Bob Evans Restaurants





Three Months Ended



Three Months Ended





April 27, 2012

% of Sales


April 29, 2011

% of Sales


April 27, 2012

% of Sales


April 29, 2011

% of
Sales

Operating income as reported













 Net Sales

$

413,528


$

418,700


$

244,729


$

241,307



 Cost of sales


125,230

30.3%


128,548

30.7%


57,716

23.6%


58,375

24.2%


 Operating wages


135,647

32.8%


133,730

31.9%


93,609

38.3%


92,898

38.5%


 Other operating


62,457

15.1%


65,141

15.6%


37,644

15.4%


40,111

16.6%


 S,G&A 


40,218

9.7%


42,784

10.2%


18,146

7.4%


17,741

7.4%


 Depr. & amort


21,185

5.1%


20,687

5.0%


12,668

5.2%


12,177

5.0%


 Total as reported


28,791

7.0%


27,810

6.6%


24,946

10.2%


20,005

8.3%















Adjustments













 Net Sales


(6,984)



-



(5,085)



-



 Cost of sales


(1,709)



-



(1,204)



-



 Operating wages


(2,252)



-



(1,350)



-



 Other operating


(501)



-



(363)



-



 S,G&A 


(4,317)



(5,068)



(2,001)



(1,311)



 Depr. & amort


-



-



-



-



 Total adjustments


1,795



5,068



(167)



1,311
















Adjusted Operating Income













 Net Sales


406,544



418,700



239,644



241,307



 Cost of sales


123,521

30.4%


128,548

30.7%


56,512

23.6%


58,375

24.2%


 Operating wages


133,395

32.8%


133,730

31.9%


92,259

38.5%


92,898

38.5%


 Other operating


61,956

15.2%


65,141

15.6%


37,281

15.6%


40,111

16.6%


 S,G&A 


35,901

8.8%


37,716

9.0%


16,145

6.7%


16,430

6.8%


 Depr. & amort


21,185

5.2%


20,687

5.0%


12,668

5.3%


12,177

5.0%


 Total adjusted


30,586

7.5%


32,878

7.9%


24,779

10.3%


21,316

8.8%















Net interest expense

1,909



2,067






















Income Before Income Taxes as reported

26,882



25,743








Adjustments

1,795



5,068








Adjusted Income Before Income Taxes

28,677



30,811






















Provision for Income Taxes as reported

4,846



7,385








Income Tax effect of adjustments

487



1,145








Adjusted Provision for Income Taxes

5,333



8,530






















Net Income as reported

22,036



18,358








Adjustments

1,308



3,923








Adjusted Net Income

$

23,344


$

22,281






















Earnings Per Share














Basic as reported

$

0.76


$

0.61









Adjustments

$

0.05


$

0.13









Adjusted Basic

$

0.81


$

0.74























Diluted as reported

$

0.76


$

0.60









Adjustments

$

0.04


$

0.13









Adjusted Diluted

$

0.80


$

0.73






















Average Shares Outstanding













Basic


28,991



30,284









Diluted


29,134



30,392















GAAP to Non-GAAP Reconciliation of Operating Income (unaudited)










Mimi's Cafe



Foods






Three Months Ended



Three Months Ended






April 27, 2012

% of Sales


April 29, 2011

% of Sales


April 27, 2012

% of Sales


April 29, 2011

% of Sales


Operating income as reported















 Net Sales

$

95,630


$

96,768


$

73,169


$

80,625




 Cost of sales


25,301

26.5%


26,172

27.0%


42,213

57.7%


44,002

54.6%



 Operating wages


35,886

37.5%


34,277

35.4%


6,152

8.4%


6,555

8.1%



 Other operating


19,588

20.5%


20,495

21.2%


5,225

7.1%


4,535

5.6%



 S,G&A 


8,834

9.2%


9,310

9.6%


13,238

18.1%


15,733

19.5%



 Depr. & amort


5,914

6.2%


6,037

6.2%


2,603

3.6%


2,472

3.1%



 Total as reported


107

0.1%


477

0.5%


3,738

5.1%


7,328

9.1%

















Adjustments















 Net Sales


(1,899)



-



-



-




 Cost of sales


(505)



-



-



-




 Operating wages


(902)



-



-



-




 Other operating


(138)



-



-



-




 S,G&A 


(2,474)



(3,535)



158



(222)




 Depr. & amort


-



-



-



-




 Total adjustments


2,120



3,535



(158)



222


















Adjusted Operating Income















 Net Sales


93,731



96,768



73,169



80,625




 Cost of sales


24,796

26.5%


26,172

27.0%


42,213

57.7%


44,002

54.6%



 Operating wages


34,984

37.3%


34,277

35.4%


6,152

8.4%


6,555

8.1%



 Other operating


19,450

20.8%


20,495

21.2%


5,225

7.1%


4,535

5.6%



 S,G&A 


6,360

6.8%


5,775

6.0%


13,396

18.3%


15,511

19.2%



 Depr. & amort


5,914

6.3%


6,037

6.2%


2,603

3.6%


2,472

3.1%



 Total adjusted


2,227

2.4%


4,012

4.1%


3,580

4.9%


7,550

9.4%





















































 

GAAP to Non-GAAP Reconciliation of Operating Income (unaudited)

 




Consolidated Results



Bob Evans Restaurants





Twelve Months Ended



Twelve Months Ended





April 27,
2012

% of Sales


April 29,
2011

% of Sales


April 27,
2012

% of Sales


April 29,
2011

% of Sales

Operating income as reported














 Net Sales

$

1,654,413


$

1,676,906


$

973,678


$

976,666



 Cost of sales


509,816

30.8%


509,849

30.4%


230,795

23.7%


231,132

23.7%


 Operating wages


535,069

32.3%


559,193

33.3%


370,995

38.1%


385,482

39.5%


 Other operating


268,799

16.2%


270,694

16.1%


168,164

17.3%


171,168

17.5%


 S,G&A 


150,743

9.1%


165,482

9.9%


65,832

6.8%


66,830

6.8%


 Depr. & amort


82,112

5.0%


83,148

5.0%


49,082

5.0%


48,628

5.0%


 Total as reported


107,874

6.5%


88,540

5.3%


88,810

9.1%


73,426

7.5%















Adjustments














 Net Sales


(6,985)



-



(5,086)



-



 Cost of sales


(1,709)



-



(1,204)



-



 Operating wages


(2,252)



-



(1,350)



-



 Other operating


(502)



-



(364)



-



 S,G&A 


(6,401)



(19,384)



(4,400)



(2,750)



 Depr. & amort


-



-



-



-



 Total adjustments


3,879



19,384



2,232



2,750
















Adjusted Operating Income














 Net Sales


1,647,428



1,676,906



968,592



976,666



 Cost of sales


508,107

30.8%


509,849

30.4%


229,591

23.7%


231,132

23.7%


 Operating wages


532,817

32.3%


559,193

33.3%


369,645

38.2%


385,482

39.5%


 Other operating


268,297

16.3%


270,694

16.1%


167,800

17.3%


171,168

17.5%


 S,G&A 


144,342

8.8%


146,098

8.7%


61,432

6.3%


64,080

6.6%


 Depr. & amort


82,112

5.0%


83,148

5.0%


49,082

5.1%


48,628

5.0%


 Total adjusted


111,753

6.8%


107,924

6.4%


91,042

9.4%


76,176

7.8%















Net interest expense


7,884



8,866






















Income Before Income Taxes as reported


99,990



79,674








Adjustments


3,879



19,384








Adjusted Income Before Income Taxes


103,869



99,058






















Provision for Income Taxes as reported


27,140



25,510








Income Tax effect of adjustments


1,198



5,898








Adjusted Provision for Income Taxes


28,338



31,408






















Net Income as reported


72,850



54,164








Adjustments


2,681



13,486








Adjusted Net Income


$       75,531



$      67,650






















Earnings Per Share














Basic as reported


$         2.45



$         1.79









Adjustments


$         0.09



$         0.44









Adjusted Basic


$         2.54



$         2.22























Diluted as reported


$         2.45



$         1.78









Adjustments


$         0.09



$         0.44









Adjusted Diluted


$         2.54



$         2.22






















Average Shares Outstanding














Basic


29,679



30,332









Diluted


29,781



30,422









 

GAAP to Non-GAAP Reconciliation of Operating Income (unaudited)




Mimi's Cafe



Foods





Twelve Months Ended



Twelve Months Ended





April 27, 2012

% of Sales


April 29, 2011

% of Sales


April 27, 2012

% of Sales


April 29, 2011

% of Sales

 Operating income as reported














 Net Sales

$

366,015


$

380,267


$

314,720


$

319,973



 Cost of sales


98,081

26.8%


103,636

27.3%


180,940

57.5%


175,082

54.7%


 Operating wages


136,287

37.2%


140,982

37.1%


27,787

8.8%


32,728

10.2%


 Other operating


81,453

22.3%


83,297

21.9%


19,182

6.1%


16,229

5.1%


 S,G&A 


28,054

7.7%


35,574

9.4%


56,857

18.1%


63,078

19.7%


 Depr. & amort


23,576

6.4%


24,435

6.4%


9,454

3.0%


10,085

3.2%


 Total as reported


(1,436)

-0.4%


(7,657)

-2.0%


20,500

6.5%


22,771

7.1%















 Adjustments














 Net Sales


(1,899)



-



-



-



 Cost of sales


(505)



-



-



-



 Operating wages


(902)



-



-



-



 Other operating


(138)



-



-



-



 S,G&A 


(2,761)



(13,639)



760



(2,995)



 Depr. & amort


-



-



-



-



 Total adjustments


2,407



13,639



(760)



2,995
















 Adjusted Operating Income














 Net Sales


364,116



380,267



314,720



319,973



 Cost of sales


97,576

26.8%


103,636

27.3%


180,940

57.5%


175,082

54.7%


 Operating wages


135,385

37.2%


140,982

37.1%


27,787

8.8%


32,728

10.2%


 Other operating


81,315

22.3%


83,297

21.9%


19,182

6.1%


16,229

5.1%


 S,G&A 


25,293

6.9%


21,935

5.8%


57,617

18.3%


60,083

18.8%


 Depr. & amort


23,576

6.5%


24,435

6.4%


9,454

3.0%


10,085

3.2%


 Total adjusted


971

0.3%


5,982

1.6%


19,740

6.3%


25,766

8.1%

 

 

 


Fourth quarter (Q4), ended April 27, 2012, compared to the corresponding period a year ago:










Consolidated Results





Q4 2012


% of sales


Q4 2011


% of sales



Net sales

$

413,528



$

418,700
















Cost of sales


125,230


30.3%


128,548


30.7%



Operating wages


135,647


32.8%


133,730


31.9%



Other operating


62,457


15.1%


65,141


15.6%



S,G&A


40,218


9.7%


42,784


10.2%



Depr. & amort.


21,185


5.1%


20,687


5.0%














Operating income


28,791


7.0%


27,810


6.6%














Interest


1,909


0.5%


2,067


0.5%














Pre-tax income


26,882


6.5%


25,743


6.1%














Income taxes


4,846


1.2%


7,385


1.7%














Net income

$

22,036


5.3%

$

18,358


4.4%














EPS - basic

$

0.76



$

0.61





EPS - diluted

$

0.76



$

0.60
















Dividends paid per share

$

0.25



$

0.20
















Weighted average shares outstanding:



Basic


28,991




30,284





Dilutive stock options

143




108





Diluted


29,134




30,392
















Shares outstanding at quarter-end


28,610




30,229
















Income taxes, as a percentage of pre-tax income, were 18.0% vs. 28.7%













 



















Bob Evans Restaurants


Mimi's Cafe


Foods





Q4 2012


Q4 2011


Q4 2012


Q4 2011


Q4 2012


Q4 2011



Net sales

$

244,729

$

241,307

$

95,630

$

96,768

$

73,169

$

80,625


















Cost of sales


23.6%


24.2%


26.5%


27.0%


57.7%


54.6%



Operating wages


38.3%


38.5%


37.5%


35.4%


8.4%


8.1%



Other operating


15.4%


16.6%


20.5%


21.2%


7.1%


5.6%



S,G&A


7.4%


7.4%


9.2%


9.6%


18.1%


19.5%



Depr. & amort.


5.2%


5.0%


6.2%


6.2%


3.6%


3.1%


















Operating income


10.2%


8.3%


0.1%


0.5%


5.1%


9.1%


















 


Fiscal Year (FY), ended April 27, 2012, compared to the corresponding period a year ago:
















Consolidated Results





FY 2012


% of sales


FY 2011


% of sales



Net sales

$

1,654,413



$

1,676,906
















Cost of sales


509,816


30.8%


509,849


30.4%



Operating wages


535,069


32.3%


559,193


33.3%



Other operating


268,799


16.2%


270,694


16.1%



S,G&A


150,743


9.1%


165,482


9.9%



Depr. & amort.


82,112


5.0%


83,148


5.0%














Operating income


107,874


6.5%


88,540


5.3%














Interest


7,884


0.5%


8,867


0.5%














Pre-tax income


99,990


6.0%


79,673


4.8%














Income taxes


27,140


1.6%


25,510


1.6%














Net income

$

72,850


4.4%

$

54,163


3.2%














EPS - basic

$

2.45



$

1.79





EPS - diluted

$

2.45



$

1.78
















Dividends paid per share

$

0.95



$

0.78
















Weighted average shares outstanding:



Basic


29,679




30,332





Dilutive stock options

102




90





Diluted


29,781




30,422
















Shares outstanding at year-end


28,610




30,229
















Income taxes, as a percentage of pre-tax income, were 27.1% vs. 32.0%













 



















Bob Evans Restaurants


Mimi's Cafe


Foods





FY 2012


FY 2011


FY 2012


FY 2011


FY 2012


FY 2011



Net sales

$

973,678

$

976,666

$

366,015

$

380,267

$

314,720

$

319,973


















Cost of sales


23.7%


23.7%


26.8%


27.3%


57.5%


54.7%



Operating wages


38.1%


39.5%


37.2%


37.1%


8.8%


10.2%



Other operating


17.3%


17.5%


22.3%


21.9%


6.1%


5.1%



S,G&A


6.8%


6.8%


7.7%


9.4%


18.1%


19.7%



Depr. & amort.


5.0%


5.0%


6.4%


6.4%


3.0%


3.2%


















Operating income


9.1%


7.5%


-0.4%


-2.0%


6.5%


7.1%