Del Friscos Restaurant Group, Inc. Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 27, 2016; Provides Earnings Guidance for the Fiscal Year Ending December 26, 2017; Reports Non-Cash Impairment Charges for the Fourth Quarter of 2016
For the year, the company reported revenues of $351,681,000 against $331,612,000 a year ago. Operating income was $25,076,000 against $21,818,000 a year ago. Income before income taxes was $24,574,000 against $21,505,000 a year ago. Net income was $17,766,000 against $15,998,000 a year ago. Diluted earnings per share were $0.76 against $0.68 a year ago. Adjusted pre-tax income was $27,496,000 against $26,349,000 a year ago. Adjusted net income was $19,522,000 against $18,471,000 a year ago. Adjusted diluted EPS were $0.83 against $0.79 a year ago. Restaurant-level EBITDA was $74,940,000 against $71,567,000 a year ago. Total cost of sales as a percentage of revenue improved by 120 basis points to 27.8%, down from 29% in the year-ago period, primarily due to continued favorability in beef costs, which fell approximately 6% on a year-over-year basis as well as the benefit of Del Frisco's Grille's growing weight on overall restaurant portfolio.
The company provided earnings guidance for the 52-week fiscal year 2017, which ends on December 26, 2017. Total comparable restaurant sales of -0.50% to 0.5%. Restaurant-level EBITDA of 21.1% to 21.4% of consolidated revenues. Pre-opening costs of approximately $2.1 million to $2.4 million. Effective tax rate of approximately 29% to 31%. Gross capital expenditures (before tenant allowances and inclusive of remodels and expenditures related to 2018 openings) of $32.8 million to $33.8 million. Annual adjusted net income per diluted share between $0.80 and $0.84.
The company announced non-cash impairment charges of $598,000.