EX-99.1 2 q32014pressrelease.htm FRGI EARNINGS RELEASE Q3 2014 Press Release


Exhibit 99.1

FOR IMMEDIATE RELEASE
Investor Relations Contact:
Raphael Gross
203-682-8253
investors@frgi.com




Fiesta Restaurant Group, Inc. Reports Third Quarter 2014 Results
Provides Initial Operating Targets for 2015

Addison, Texas - (Business Wire) - November 4, 2014 - Fiesta Restaurant Group, Inc. (“Fiesta” or the “Company”) (NASDAQ: FRGI), parent company of the Pollo Tropical® and Taco Cabana® fast-casual restaurant brands, today reported results for the third quarter 2014, which ended on September 28, 2014. The Company also provided initial operating targets for 2015.

Highlights of the third quarter of 2014 include:
•
Total revenues increased 10.4% to $155.3 million;
•
Comparable restaurant sales increased 5.9% and comparable restaurant guest traffic increased 4.6% at Pollo Tropical;
•
Comparable restaurant sales increased 3.5% and comparable restaurant guest traffic increased 0.9% at Taco Cabana;
•
Nine Company-owned and operated restaurants were opened, including seven Pollo Tropical and two Taco Cabana restaurants;
•
Net income increased 81.6% to $9.2 million; and
•
Diluted earnings per share increased 61.9% to $0.34.

Fiesta President and Chief Executive Officer Tim Taft commented, “We believe our performance is demonstrative of the successful execution of our operational and development strategies and our ability to enhance shareholder value with improved results. During the third quarter, we grew our top-line by double digits through contributions from recent restaurant openings and strong comparable restaurant sales increases, while sales leverage and management initiatives drove robust margin expansion. The combination of these factors and the new capital structure we put in place late last year resulted in higher profitability, yielding diluted EPS growth of almost 62%.”

Taft added, “We view 2014 as a pivotal year. Of note, we have successfully introduced Pollo Tropical to Texas with our new restaurant prototype and new menu offerings and accelerated new restaurant development, positioning Fiesta for sustainable growth.”

Third Quarter 2014 Financial Review

Consolidated Results

Total revenues increased 10.4% to $155.3 million from $140.7 million compared to the prior year period due primarily to 21 net Company-owned restaurant openings and comparable restaurant sales growth of 5.9% at Pollo Tropical and 3.5% at Taco Cabana respectively. Pollo Tropical has now generated comparable restaurant sales growth for 20 consecutive quarters.

Cost of sales as a percentage of restaurant sales improved 50 basis points compared to the prior year period as favorable sales mix, modest price increases and supply chain management initiatives more than offset commodity cost increases.

Restaurant wages and related expenses as a percentage of restaurant sales improved 60 basis points compared to the prior year period due to the favorable impact of sales increases on fixed costs and lower medical costs partially offset by the impact of new restaurants and higher workers’ compensation costs.

Rent expense as a percentage of restaurant sales improved 20 basis points compared to the prior year period as the favorable impact of sales increases more than offset higher rent at recent Company-owned restaurant openings.

Other restaurant operating expenses as a percentage of restaurant sales increased 30 basis points compared to the prior year period as timing and higher repair and maintenance expenses were partially offset by lower insurance costs.

1



Advertising expense as a percentage of restaurant sales decreased 30 basis points compared to the prior year period due to the timing of promotions.

General and administrative expenses increased slightly to $11.8 million compared to the prior year period but improved as a percentage of revenues by 70 basis points due to the favorable impact of higher sales on relatively flat overhead expenses. General and administrative expenses include a benefit of a $0.5 million payment received in the third quarter of 2014 as a settlement of a litigation matter.

Depreciation and amortization increased $0.9 million to $6.0 million compared to the prior year period due to new Company-owned restaurant development, partially offset by the impact of sale-leaseback transactions.

Pre-opening costs increased $0.8 million to $1.4 million compared to the prior year period due to the increased number of new restaurant openings.

Impairment and other lease charges of $0.2 million in the third quarter 2014 primarily resulted from a decision to opportunistically relocate a Pollo Tropical restaurant to a superior site in the same trade area.

Other income in the third quarter of 2014 consisted primarily of a $0.6 million gain from a real estate condemnation award resulting from an eminent domain proceeding related to a Taco Cabana restaurant that closed during the quarter.

Interest expense decreased $3.9 million to $0.5 million compared to the prior year period due to the reduction in Fiesta’s outstanding debt and a lower interest rate on borrowings under the new senior credit facility.

The provision for income taxes was derived using an estimated annual effective income tax rate for 2014 of 38.3%, while the provision for income taxes for the prior year period was derived using an estimated effective annual income tax rate for 2013 of 36.5%, excluding discrete items. The estimated effective annual income tax rate for 2014 is higher than 2013, primarily due to the expiration of the Work Opportunity Tax Credit on December 31, 2013.

Net income increased 81.6% to $9.2 million compared to net income of $5.0 million in the prior year period.

Diluted earnings per share increased 61.9% to $0.34 (on a base of 26.3 million shares) compared to diluted earnings per share of $0.21 (on a base of 23.0 million shares) in the prior year period.

Brand Results

Pollo Tropical restaurant sales increased 18.0% to $77.9 million compared to the prior year period due to a comparable restaurant sales increase of 5.9% along with a net increase of 19 Company-owned restaurants. The growth in comparable restaurant sales resulted from a 4.6% increase in comparable restaurant guest traffic along with a 1.3% increase in average check. Average check was driven by menu price increases that positively impacted restaurant sales by 1.6% partially offset by sales mix. This is the 20th consecutive quarter the brand has delivered comparable restaurant sales growth and, on a two-year basis, third quarter comparable restaurant sales grew 12.4%. Adjusted EBITDA for Pollo Tropical, a non-GAAP financial measure, increased 13.0% to $12.1 million compared to the prior year period.

Taco Cabana restaurant sales increased 3.6% to $76.8 million compared to the prior year period due to a 3.5% increase in comparable restaurant sales. The increase in comparable restaurant sales resulted from an increase of 0.9% in comparable restaurant guest traffic and a 2.6% increase in average check. Average check was driven by menu price increases that positively impacted restaurant sales by 1.1% and a positive change in sales mix due to the implementation of new menu boards during the first quarter of 2014. On a two-year basis, third quarter comparable restaurant sales grew 5.3%. Adjusted EBITDA for Taco Cabana, a non-GAAP financial measure, increased 43.7% to $9.8 million compared to the prior year period.

Restaurant Development

During the quarter, Fiesta opened seven new Company-owned Pollo Tropical restaurants in Florida and Texas and two new Company-owned Taco Cabana restaurants in Texas. During the quarter, the Company closed two Taco Cabana restaurants in Texas.

As of September 28, 2014, the Company owned and operated 119 Pollo Tropical restaurants and 166 Taco Cabana restaurants (including one Cabana Grill® restaurant) and franchised 36 Pollo Tropical restaurants in the U.S., Puerto Rico, the Bahamas, Ecuador,

2


Guatemala, Honduras, Panama, Trinidad & Tobago, Venezuela and the Dominican Republic; and seven Taco Cabana restaurants in the U.S.

2015 Initial Operating Targets

Initial operating targets expected in fiscal 2015 are as follows:

•
Mid-single digit comparable restaurant sales growth at Pollo Tropical;
•
Low-single digit comparable restaurant sales growth at Taco Cabana;
•
26 to 30 new Company-owned restaurant openings including 24 to 26 Pollo Tropical and two to four Taco Cabana restaurants;
•
Up to four Company-owned restaurant closings, one Pollo Tropical relocation and three potential Taco Cabana restaurant closings;
•
General and administrative expenses of approximately $53 million to $55 million;
•
An effective tax rate of approximately 38% to 40% assuming the Work Opportunity Tax Credit is not renewed for 2015 or, if the tax credit is renewed for 2015, the Company expects an improvement to its effective tax rate of approximately 150 basis points; and
•
Capital expenditures between $78 million and $88 million.

The 2015 fiscal year ending January 3, 2016 contains 53 weeks compared to the 2014 fiscal year ending December 28, 2014 which contains 52 weeks.

Investor Conference Call Today

Fiesta will host a conference call to review third quarter 2014 results today at 4:30 PM ET. Hosting the call will be President and Chief Executive Officer Tim Taft and Vice President and Chief Financial Officer Lynn Schweinfurth.

The conference call can be accessed live over the phone by dialing 877-407-0789 or for international callers by dialing 201-689-8562. A replay will be available after the call and can be accessed by dialing 877-870-5176 or for international callers by dialing 858-384-5517; the passcode is 13593225. The replay will be available until Tuesday, November 11, 2014.

The conference call will also be webcast live from the corporate website at www.frgi.com, under the investor relations section. A replay of the webcast will be available through the corporate website shortly after the call has concluded.

About Fiesta Restaurant Group, Inc.

Fiesta Restaurant Group, Inc. is the parent company of the Pollo Tropical® and Taco Cabana® restaurant brands. The brands specialize in the operation of fast-casual, ethnic restaurants that offer distinct and unique Caribbean and Mexican inspired flavors with broad appeal at a compelling value. The brands feature made-from-scratch cooking, fresh salsa bars, and drive-thru service and catering. For more information about Fiesta Restaurant Group, Inc., visit the corporate website at www.frgi.com.

Forward-Looking Statements

Except for the historical information contained in this news release, the matters addressed are forward-looking statements. Forward-looking statements, written, oral or otherwise made, represent Fiesta's expectation or belief concerning future events. Without limiting the foregoing, these statements are often identified by the words “may,” “might,” “believes,” “thinks,” “anticipates,” “plans,” “expects,” “intends” or similar expressions. In addition, expressions of Fiesta's strategies, intentions or plans, are also forward-looking statements. Such statements reflect management's current views with respect to future events and are subject to risks and uncertainties, both known and unknown. You are cautioned not to place undue reliance on these forward-looking statements as there are important factors that could cause actual results to differ materially from those in forward-looking statements, many of which are beyond Fiesta's control. Investors are referred to the full discussion of risks and uncertainties as included in Fiesta's filings with the Securities and Exchange Commission.



3


FIESTA RESTAURANT GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
THREE AND NINE MONTHS ENDED SEPTEMBER 28, 2014 AND SEPTEMBER 29, 2013
(In thousands of dollars, except share and per share amounts)
(Unaudited)
 
Three months ended (a)
 
Nine months ended (a)
 
September 28, 2014
 
September 29, 2013
 
September 28, 2014
 
September 29, 2013
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
   Restaurant sales
$
154,643

 
$
140,069

 
$
452,983

 
$
413,435

   Franchise royalty revenues and fees
655

 
609

 
1,936

 
1,747

      Total revenues
155,298

 
140,678

 
454,919

 
415,182

Costs and expenses:
 
 
 
 
 
 
 
   Cost of sales
48,980

 
45,162

 
143,469

 
132,891

   Restaurant wages and related expenses (b)
39,824

 
36,979

 
115,446

 
107,914

   Restaurant rent expense
7,314

 
6,853

 
21,892

 
19,699

   Other restaurant operating expenses
20,686

 
18,283

 
58,037

 
51,786

   Advertising expense
4,180

 
4,271

 
14,275

 
13,275

   General and administrative expenses (b)(c)
11,845

 
11,685

 
36,128

 
35,895

   Depreciation and amortization
6,038

 
5,129

 
16,961

 
15,117

   Pre-opening costs
1,427

 
590

 
3,298

 
2,379

   Impairment and other lease charges
183

 
(312
)
 
200

 
239

   Other (income) expense
(552
)
 
(57
)
 
(558
)
 
(554
)
      Total costs and expenses
139,925

 
128,583

 
409,148

 
378,641

Income from operations
15,373

 
12,095

 
45,771

 
36,541

   Interest expense (d)
536

 
4,457

 
1,707

 
14,475

Income before income taxes
14,837

 
7,638

 
44,064

 
22,066

   Provision for income taxes
5,682

 
2,596

 
16,876

 
7,256

Net income
$
9,155

 
$
5,042

 
$
27,188

 
$
14,810

Basic net income per share (e)
$
0.34

 
$
0.21

 
$
1.02

 
$
0.63

Diluted net income per share (e)
$
0.34

 
$
0.21

 
$
1.02

 
$
0.63

Basic weighted average common shares outstanding
26,344,102

 
22,986,615

 
26,272,322

 
22,921,233

Diluted weighted average common shares outstanding
26,347,326

 
22,986,615

 
26,273,584

 
22,921,233


(a) The Company uses a 52 or 53 week fiscal year that ends on the Sunday closest to December 31. The three and nine month periods ended September 28, 2014 and September 29, 2013 included 13 and 39 weeks, respectively.

(b) Restaurant wages and related expenses include stock-based compensation expense of $20 and $1 for the three month periods ended September 28, 2014 and September 29, 2013, respectively, and $50 and $2 for the nine month periods ended September 28, 2014 and September 29, 2013, respectively. General and administrative expenses include stock-based compensation expense of $812 and $657 for the three month periods ended September 28, 2014 and September 29, 2013, respectively, and $2,582 and $1,677 for the nine month periods ended September 28, 2014 and September 29, 2013, respectively.

(c) General and administrative expenses for the nine months ended September 29, 2013 include expenses related to the underwritten secondary public equity offering completed during March 2013 totaling $425. The Company did not receive any proceeds from the sale of shares in such offering.

(d) In the fourth quarter of 2013, Fiesta repurchased and redeemed its $200.0 million aggregate principal amount of 8.875% Senior Secured Second Lien Notes due 2016, sold 3,078,336 shares of its common stock in a public offering, and entered into a new senior secured revolving credit facility that provides for aggregate borrowings of up to $150.0 million with variable rate interest.

(e) As previously disclosed, Fiesta has granted shares of restricted stock to certain of its employees. Because the unvested shares participate in any dividends declared, the unvested shares are considered a second class of common stock for accounting purposes, impacting the calculation of net income per share. For further information, please see the Company's unaudited financial statements to be included in the Company's Quarterly Report on Form 10-Q for the quarter ended September 28, 2014.

4


FIESTA RESTAURANT GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands of dollars, except share and per share amounts)
(Unaudited)

 
September 28, 2014
 
December 29, 2013
 
 
 
 
Assets
 
 
 
   Cash
$
1,879

 
$
10,978

   Other current assets
21,330

 
21,947

   Property and equipment, net
180,170

 
144,527

   Goodwill
123,484

 
123,484

   Intangible assets, net
60

 
121

   Deferred income taxes
12,263

 
12,046

   Deferred financing costs, net
1,305

 
1,530

   Other assets
2,889

 
4,152

      Total assets
$
343,380

 
$
318,785

 
 
 
 
Liabilities and Stockholders' Equity
 
 
 
   Current liabilities
$
33,851

 
$
38,087

   Long-term debt, net of current portion
67,279

 
72,324

   Lease financing obligations
1,659

 
1,657

   Deferred income sale-leaseback of real estate
34,995

 
35,873

   Other liabilities
15,772

 
12,538

      Total liabilities
153,556

 
160,479

Stockholders' equity
189,824

 
158,306

      Total liabilities and stockholders' equity
$
343,380

 
$
318,785




























5


FIESTA RESTAURANT GROUP, INC.
Supplemental Information
The following table sets forth certain unaudited supplemental financial and other data for the periods indicated
(In thousands, except percentages and number of restaurants):
 
(unaudited)
 
(unaudited)
 
Three months ended
 
Nine months ended
 
September 28, 2014
 
September 29, 2013
 
September 28, 2014
 
September 29, 2013
Segment revenues:
 
 
 
 
 
 
 
   Pollo Tropical
$
78,407

 
$
66,478

 
$
226,046

 
$
193,752

   Taco Cabana
76,891

 
74,200

 
228,873

 
221,430

      Total revenues
$
155,298

 
$
140,678

 
$
454,919

 
$
415,182

 
 
 
 
 
 
 
 
Change in comparable restaurant sales (a):
 
 
 
 
 
 
 
   Pollo Tropical
5.9
%
 
6.5
%
 
6.3
%
 
5.5
%
   Taco Cabana
3.5
%
 
1.8
%
 
2.4
%
 
1.6
%
 
 
 
 
 
 
 
 
Average sales per Company-owned restaurant (b):
 
 
 
 
 
 
 
   Pollo Tropical
$
678

 
$
667

 
$
2,056

 
$
2,025

   Taco Cabana
464

 
452

 
1,381

 
1,357

 
 
 
 
 
 
 
 
Income before income taxes:
 
 
 
 
 
 
 
   Pollo Tropical
$
8,146

 
$
6,132

 
$
28,530

 
$
19,083

   Taco Cabana
6,691

 
1,506

 
15,534

 
2,983

 
 
 
 
 
 
 
 
Adjusted EBITDA (c):
 
 
 
 
 
 
 
   Pollo Tropical
$
12,100

 
$
10,709

 
$
39,202

 
$
32,487

   Taco Cabana
9,774

 
6,804

 
25,804

 
20,535

 
 
 
 
 
 
 
 
Restaurant-Level Adjusted EBITDA (c):
 
 
 
 
 
 
 
   Pollo Tropical
$
17,699

 
$
16,018

 
$
55,532

 
$
48,893

   Taco Cabana
14,553

 
11,914

 
41,084

 
36,600

 
 
 
 
 
 
 
 
Number of Company-owned restaurants:
 
 
 
 
 
 
 
   Pollo Tropical
119

 
100

 
119

 
100

   Taco Cabana
166

 
164

 
166

 
164

      Total Company-owned restaurants
285

 
264

 
285

 
264

 
 
 
 
 
 
 
 
Company-owned restaurant openings:
 
 
 
 
 
 
 
   Pollo Tropical
7

 
4

 
17

 
10

   Taco Cabana
2

 
—

 
3

 
5

      Total new restaurant openings
9

 
4

 
20

 
15

 
 
 
 
 
 
 
 
Company-owned restaurant closings:
 
 
 
 
 
 
 
   Pollo Tropical
—

 
—

 
—

 
(1
)
   Taco Cabana
(2
)
 
—

 
(2
)
 
(1
)
      Net change in restaurants
7

 
4

 
18

 
13

 
 
 
 
 
 
 
 
Number of franchised restaurants:
 
 
 
 
 
 
 
    Pollo Tropical
36

 
38

 
36

 
38

    Taco Cabana
7

 
8

 
7

 
8

      Total franchised restaurants
43

 
46

 
43

 
46


(a) Restaurants are included in comparable restaurant sales after they have been open for 18 months.

(b) Average sales for Company-owned restaurants are derived by dividing restaurant sales for such period for the applicable segment by the average number of open restaurants for the applicable segment for such period.

(c) Adjusted EBITDA and Restaurant-Level Adjusted EBITDA are non-GAAP financial measures. Please see the reconciliation of Restaurant-Level Adjusted EBITDA and Adjusted EBITDA to net income in the table titled "Supplemental Non-GAAP Information" on the last page of this release.

6


FIESTA RESTAURANT GROUP, INC.
Supplemental Information
The following table sets forth certain unaudited supplemental financial and other data for the periods indicated
(In thousands, except percentages):
 
Three months ended
 
September 28, 2014
 
September 29, 2013
 
 
(a)
 
 
(a)
Pollo Tropical:
 
 
 
 
 
   Restaurant sales
$
77,887


 
$
65,994


   Cost of sales
25,939

33.3
%
 
21,960

33.3
 %
   Restaurant wages and related expenses
17,681

22.7
%
 
14,966

22.7
 %
   Restaurant rent expense
3,051

3.9
%
 
2,625

4.0
 %
   Other restaurant operating expenses
10,110

13.0
%
 
8,236

12.5
 %
   Advertising expense
2,097

2.7
%
 
1,710

2.6
 %
   Depreciation and amortization
3,104

4.0
%
 
2,367

3.6
 %
   Pre-opening costs
1,318

1.7
%
 
476

0.7
 %
   Impairment and other lease charges
183

0.2
%
 
(37
)
(0.1
)%
 
 
 
 
 
 
Taco Cabana:
 
 
 
 
 
   Restaurant sales
$
76,756


 
$
74,075


   Cost of sales
23,041

30.0
%
 
23,202

31.3
 %
   Restaurant wages and related expenses
22,143

28.8
%
 
22,013

29.7
 %
   Restaurant rent expense
4,263

5.6
%
 
4,228

5.7
 %
   Other restaurant operating expenses
10,576

13.8
%
 
10,047

13.6
 %
   Advertising expense
2,083

2.7
%
 
2,561

3.5
 %
   Depreciation and amortization
2,934

3.8
%
 
2,762

3.7
 %
   Pre-opening costs
109

0.1
%
 
114

0.2
 %
   Impairment and other lease charges
—

0.0
%
 
(275
)
(0.4
)%
 
 
 
 
 
 
 
Nine months ended
 
September 28, 2014
 
September 29, 2013
 
 
(a)
 
 
(a)
Pollo Tropical:
 
 
 
 
 
   Restaurant sales
$
224,496

 
 
$
192,372

 
   Cost of sales
74,151

33.0
%
 
63,803

33.2
 %
   Restaurant wages and related expenses
49,369

22.0
%
 
43,466

22.6
 %
   Restaurant rent expense
9,039

4.0
%
 
7,220

3.8
 %
   Other restaurant operating expenses
27,909

12.4
%
 
22,849

11.9
 %
   Advertising expense
5,698

2.5
%
 
4,432

2.3
 %
   Depreciation and amortization
8,431

3.8
%
 
6,780

3.5
 %
   Pre-opening costs
2,819

1.3
%
 
1,706

0.9
 %
   Impairment and other lease charges
113

0.1
%
 
(99
)
(0.1
)%
 
 
 
 
 
 
Taco Cabana:
 
 
 
 
 
   Restaurant sales
$
228,487

 
 
$
221,063

 
   Cost of sales
69,318

30.3
%
 
69,088

31.3
 %
   Restaurant wages and related expenses
66,077

28.9
%
 
64,448

29.2
 %
   Restaurant rent expense
12,853

5.6
%
 
12,479

5.6
 %
   Other restaurant operating expenses
30,128

13.2
%
 
28,937

13.1
 %
   Advertising expense
8,577

3.8
%
 
8,843

4.0
 %
   Depreciation and amortization
8,530

3.7
%
 
8,337

3.8
 %
   Pre-opening costs
479

0.2
%
 
673

0.3
 %
   Impairment and other lease charges
87

0.0
%
 
338

0.2
 %
 
 
 
 
 
 
(a) Percent of restaurant sales for the applicable segment.

7


FIESTA RESTAURANT GROUP, INC.
Supplemental Non-GAAP Information
The following table sets forth certain unaudited supplemental financial data for the periods indicated
(In thousands):

Adjusted EBITDA and Restaurant-Level Adjusted EBITDA are non-GAAP financial measures. Adjusted EBITDA is defined as earnings before interest, income taxes, depreciation and amortization, impairment and other lease charges, stock-based compensation expense and other income and expense. Adjusted EBITDA for each of our segments includes an allocation of general and administrative expenses associated with administrative support for executive management, information systems and certain accounting, legal and other administrative functions. Restaurant-Level Adjusted EBITDA is defined as Adjusted EBITDA excluding franchise royalty revenues and fees and general and administrative expenses (including corporate-level general and administrative expenses). Adjusted EBITDA for each of our segments is a measure of segment profitability reported to our chief operating decision maker for purposes of allocating resources to the segments and assessing each segment's performance. In addition, management believes that Adjusted EBITDA and Restaurant-Level Adjusted EBITDA, when viewed with our results of operations calculated in accordance with GAAP and our reconciliation of Restaurant-Level Adjusted EBITDA and Adjusted EBITDA to net income (i) provides useful information (including at the restaurant level) about our operating performance and period-over-period growth, (ii) provides additional information that is useful for evaluating the operating performance of our business, and (iii) permits investors to gain an understanding of the factors and trends affecting our ongoing earnings, from which capital investments are made and debt is serviced. However, such measures are not a measure of financial performance or liquidity under GAAP and, accordingly, should not be considered as an alternative to net income or net income per share as indicators of operating performance or liquidity. Also these measures may not be comparable to similarly titled captions of other companies.
 
(unaudited)
 
(unaudited)
 
Three months ended
 
Nine months ended
 
September 28, 2014
 
September 29, 2013
 
September 28, 2014
 
September 29, 2013
 
 
 
 
 
 
 
 
Restaurant-Level Adjusted EBITDA:


 


 
 
 
 
     Pollo Tropical
$
17,699

 
$
16,018

 
$
55,532

 
$
48,893

     Taco Cabana
14,553

 
11,914

 
41,084

 
36,600

     Consolidated
32,252

 
27,932

 
96,616

 
85,493

Add:
 
 
 
 
 
 
 
     Franchise royalty revenue and fees
655

 
609

 
1,936

 
1,747

Less:
 
 
 
 
 
 
 
General and administrative (excluding stock-based compensation expense of $812, $657, $2,582 and $1,677, respectively)
11,033

 
11,028

 
33,546

 
34,218

Adjusted EBITDA:
 
 
 
 
 
 
 
     Pollo Tropical
12,100

 
10,709

 
39,202

 
32,487

     Taco Cabana
9,774

 
6,804

 
25,804

 
20,535

     Consolidated
21,874

 
17,513

 
65,006

 
53,022

Less:
 
 
 
 
 
 
 
     Depreciation and amortization
6,038

 
5,129

 
16,961

 
15,117

     Impairment and other lease charges
183

 
(312
)
 
200

 
239

     Interest expense
536

 
4,457

 
1,707

 
14,475

     Provision for income taxes
5,682

 
2,596

 
16,876

 
7,256

     Stock-based compensation
832

 
658

 
2,632

 
1,679

     Other (income) expense
(552
)
 
(57
)
 
(558
)
 
(554
)
Net income
$
9,155

 
$
5,042

 
$
27,188

 
$
14,810





8