BUCA, Inc. Comparable Restaurant Sales Increase 2.6%
	BUCA, Inc. Announces Second Quarter 2006 Earnings
Click here for financial tables BUCA, Inc. (Nasdaq: BUCA) today announced financial results for the second fiscal quarter ended June 25, 2006. In the reported results, Vinny T's of Boston and three closed Buca di Beppo restaurants are classified as discontinued operations. Second Quarter Results Total restaurant sales increased by 2.3% to $61.0 million in the second quarter of fiscal 2006 from $59.7 million in the second fiscal quarter of fiscal 2005. The increase in restaurant sales was driven by increased comparable restaurant sales, as no new restaurants opened in the period. Increased popularity of Buca To Go and Buca Small, the addition of lunch at 11 new restaurants in the first half of 2006, the marketing effects of the Buca E-Club, and a 1.5% price increase taken on food items in the first quarter, contributed to the growth in comparable restaurant sales. Buca di Beppo comparable restaurant sales increased 2.6% for the second quarter of fiscal 2006 as compared to the same period last year. The increase reflects the seventh consecutive quarter of positive comparable restaurant sales for the Buca di Beppo restaurants. For the second quarter of fiscal 2005, Buca di Beppo comparable restaurant sales had increased 5.9%. The company reported a net loss of $718,000, or $0.03 per share, in the second quarter of fiscal 2006 as compared to a net loss of $3.8 million, or $0.19 per share, in the second quarter of fiscal 2005. Net loss from continuing operations was $1.5 million, or ($0.07) per share in the second quarter of fiscal 2006 as compared to a net loss of $4.1 million, or ($0.20) per share in the same period in the prior year. Total restaurant costs in the second fiscal quarter were $56.1 million, flat when compared with the same period in the prior year. As a percentage of restaurant sales, these costs were 92.0% for the second quarter of fiscal 2006, down from 94.1% in the second quarter of fiscal 2005. The decrease in restaurant costs as a percentage of sales was largely attributable to lower product costs as well as lower direct and occupancy costs, partially offset by an increase in labor costs. General and administrative expenses decreased by 16.9% to $5.5 million in the second quarter of fiscal 2006 from $6.7 million in the second quarter of fiscal 2005. General and administrative expenses as a percentage of restaurant sales decreased to 9.1% in the second quarter of fiscal 2006 from 11.1% in the comparable period of fiscal 2005. The decrease in these expenses was primarily due to a reduction in legal, audit and consulting fees as compared to the same period in the prior year. Share-based compensation expense was approximately $0.2 million in the quarter. In accordance with the modified prospective transition method, the company has not restated the financial results for the prior periods to include a comparable expense. During the second quarter of fiscal 2006, net income from discontinued operations increased to $0.7 million from $0.3 million in the second quarter of fiscal 2005. This increase was primarily related to the operations of Vinny T's of Boston, which reported second quarter fiscal 2006 income of $0.8 million compared to $0.4 million in the same period in fiscal 2005. Wallace B. Doolin, the company's Chairman, President and Chief Executive Officer commented, "We have made substantial progress during the first two quarters of 2006 as evidenced by the continued increase in comparable same store sales. The 2.6% increase in the second quarter marks Buca di Beppo's seventh consecutive quarter of positive comparable sales. We are particularly pleased that the Buca di Beppo comparable restaurant sales performance continues to outperform Knapp Track, which registered a 0.9% decline in the second quarter. Added Mr. Doolin, "We continue to make progress on our multi-year turnaround plan which is focused on building guest counts and comparable restaurant sales, improving margins and developing our family members for success. We are encouraged by our second quarter results, particularly in light of the environment in which we are operating. Our goal remains to improve the core business so Buca di Beppo can resume growth and become one great restaurant company, one great restaurant at a time." Six Months Results For the first two quarters of fiscal 2006, total restaurant sales increased 3.9% to $125.9 million from $121.0 million in the same period in the prior year. Comparable restaurant sales for the company's Buca di Beppo restaurants were 4.1% for the first two quarters of fiscal 2006. The company reported net income for the first two quarters of fiscal 2006 of $0.6 million, or $0.03 per share, versus a net loss of $4.7 million, or ($0.23) per share, in the first two quarters of fiscal 2005. For the first two quarters of fiscal 2006, total restaurant costs were $114.8 million, a 2.5% increase over the same period in the prior year, equaling 91.2% of restaurant sales, down from 92.5% of restaurant sales in the same period of fiscal 2005. This decrease as a percentage of sales was due primarily to lower product costs, offset by a slight increase in direct and occupancy costs. General and administrative expenses were $9.8 million in the first two quarters of fiscal 2006, a 19.3% decline from $12.1 million in the first two quarters of fiscal 2005. The decrease in general and administrative expenses reflects a $1.8 million insurance settlement as well as lower legal, audit and consulting fees.