P.F. Chang's China Bistro reports Q1 net earnings of US$6.3M, down 40% from year-ago period amid continued struggles with turnaround effort; revenue up 0.5% to US$318.9M

Nevin Barich

SCOTTSDALE, Arizona , May 1, 2012 (press release) – P.F. Chang's China Bistro, Inc. (NASDAQ: PFCB) today reported financial results for the first quarter ended April 1, 2012. In a separate press release, P.F. Chang's also announced today that it has entered into a definitive merger agreement with Centerbridge Partners (“Centerbridge”) that will result in P.F. Chang's becoming a private company.

Total revenues were $318.9 million in the first quarter of fiscal 2012 as compared to $317.4 million in the prior year. Net income for the first quarter of fiscal 2012 was $6.3 million as compared to $10.6 million for the first quarter of fiscal 2011, and diluted net income per share was $0.30 and $0.46, respectively.

Net income per share for the first quarter of fiscal 2012 would have been approximately $0.05 higher (or $0.35 per share) when adjusting for:

* The unfavorable impact of one-time professional fees ($0.05 per share).
* The unfavorable impact of non-cash share-based compensation expense adjustments ($0.04 per share).
* The net favorable benefit of additional state income tax credits ($0.04 per share).

Comparable store sales decreased 0.6% at the Bistro and 1.7% at Pei Wei in the first quarter of 2012 due, in both cases, to declines in guest traffic. Monthly comparable store sales trends for January, February and March were 0.7%, 0.1% and -2.8%, respectively, at the Bistro and -1.4%, -3.3% and -0.5%, respectively, at Pei Wei.

Quarterly Dividend
The Board of Directors authorized a cash dividend payment of $0.275 per share on the Company's outstanding common stock. The next quarterly dividend is payable on May 25, 2012 to shareholders of record at the close of business on May 11, 2012.

Conference Call Information
As a result of the announcement that P.F. Chang's has entered into a definitive merger agreement with Centerbridge that will result in P.F. Chang's becoming a private company, the first quarter 2012 earnings conference call and webcast scheduled for 8:30 am Eastern Time on May 1, 2012, has been cancelled. During the pendency of the transaction, the Company will make earnings releases consistent with its current schedule, but will suspend earnings conference calls and webcasts.

Definitions
The following definitions apply to these terms as used throughout this release:

* Net income refers to net income attributable to PFCB common stockholders.
* Comparable store sales changes include company-operated restaurants and represent the change in period-over-period sales for the comparable restaurant base. A restaurant becomes comparable in its eighteenth month of operation.

About the Company
P.F. Chang's China Bistro, Inc. owns and operates two restaurant concepts in the Asian niche. P.F. Chang's China Bistro features a blend of high-quality, Chinese-inspired cuisine and attentive service in a high energy contemporary bistro setting. Pei Wei Asian Diner offers a menu of freshly prepared, wok-seared, contemporary pan-Asian cuisine in a relaxed, warm environment with friendly attentive counter service and take-out flexibility. In addition, the Company has extended its brands to international markets, domestic airport locations and retail products, all of which are operated under licensing agreements. The Company has also announced an agreement to acquire a majority equity ownership position in True Food Kitchen, a Fox Restaurant Concept specializing in healthy, locally sourced and globally inspired meals.

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