Bob Evans To Restate Fiscal Third Quarter Results To Include An Additional Non-Cash Assets Held For Sale Impairment Charge Related To Mimi's Cafe

Bob Evans Farms

today announced it identified an error regarding the treatment of intercompany accounts in calculating the net book value of the Mimi's Cafe business segment assets held for sale as recorded by the Company in the third quarter of fiscal 2013. The Company said the resulting non-cash assets held for sale impairment charge previously reported as $22.7 million is now revised to $68.4 million. The Company became aware of the error as a result of a review it initiated while preparing closing entries of its accounting for the sale of Mimi's Cafe. The charge will have no impact on non-GAAP earnings and does not affect the ongoing operations of the business. Furthermore, it will not affect previously reported amounts of net cash flows, cash, or cash equivalents. Restated and reported operating income, net income, and fully diluted earnings per share are provided below on both a GAAP and non-GAAP basis. Please refer to the table at the end of this release for a reconciliation of non-GAAP measures to GAAP results. Note: Amounts are in thousands except per share amounts. Three Months Ended Nine Months Ended Restated January 25, 2013 Reported January 25, 2013 Restated January 25, 2013 Reported January 25, 2013 Operating (loss) income $(47,388) $ (1,646) $ (5,367) $ 40,375 Operating income – non-GAAP 24,538 24,538 75,885 75,885 Net (loss) income $(55,236) $ 5,527 $(29,886) $30,877 Net income – non- GAAP 15,818 15,818 47,323 47,323 Fully diluted earnings per share $(1.97) $0.20 $(1.06) $1.09 Fully diluted earnings per share – non- GAAP $0.56 $0.56 $1.67 $1.67 The Company expects to file an amendment to its Quarterly Report on Form 10-Q for the three and nine months ended January 25, 2013, on or before May 15, 2013, to reflect the additional non-cash assets held for sale impairment charge. The referenced financial statements should not be relied upon until the Company files its restated financial statements. The decision to restate the Company's financial statements for the three and nine months ended January 25, 2013, was approved by the Audit Committee of the Board of Directors, based upon the recommendation of Company management. Management and the Audit Committee have discussed these matters with the Company's independent registered public accounting firm, Ernst & Young LLP. About Bob Evans Farms, Inc. Bob Evans Farms, Inc. owns and operates full-service restaurants under the Bob Evans Restaurants brand name. At the end of the third fiscal quarter (January 25, 2013), Bob Evans Restaurants owned and operated 565 family restaurants in 19 states, primarily in the Midwest, mid-Atlantic and Southeast regions of the United States. Bob Evans Farms, Inc., through its BEF Foods segment, is also a leading producer and distributor of refrigerated side dishes, pork sausage and a variety of complementary convenience food items under the Bob Evans and Owens brand names. Note that effective on February 16, 2013, Mimi's Cafe is no longer owned by Bob Evans Farms, Inc. 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 27, 2012, 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. Set forth below is the Company's restatement of certain of its GAAP and non-GAAP financial measures included in its third quarter earnings release: Note: Amounts are in thousands except per share amounts. Three Months Ended Nine Months Ended Jan 25, 2013 Jan 27, 2012 Jan 25, 2013 Jan 27, 2012 Operating income as restated Bob Evans Restaurants $ 17,638 $ 19,889 $ 55,449 $ 63,865 Mimi's Cafe 88,615 3,222 80,259 (1,544) BEF Foods (153,641) 7,147 (141,075) 16,762 Total operating (loss) income (47,388) 30,258 (5,367) 79,083 Adjustments Bob Evans Restaurants Impairment 2,371 - 3,598 2,806 Severance/Restructuring 253 - 1,050 - (Gain) loss on sale of assets (211) - (408) (407) Extinguishment of interco debt (527) - (527) - Total Bob Evans Restaurants 1,886 - 3,713 2,399 Adjustments Mimi's Cafe Impairment (1) 70,576 - 70,576 - Severance/Restructuring 1,121 - 1,740 287 Occupancy costs 334 - 1,875 - Extinguishment of interco debt (156,418) - (156,418) - Depreciation and amortization (3,924) - (3,924) - Total Mimi's Cafe Adjustments (88,311) - (86,151) 287 BEF Foods Impairment - - - 87 Severance/Restructuring 1,239 - 5,184 - Merger and acquisition costs 167 - 1,566 - (Gain) loss on sale of assets - - (5) (689) Extinguishment of interco debt 156,945 - 156,945 - Total BEF Foods Adjustments 158,351 - 163,690 (602) Total adjustments Impairment 72,947 - 74,174 2,893 Severance/Restructuring 2,613 - 7,974 287 Merger and acquisition costs 167 - 1,566 - (Gain) loss on sale of assets (211) - (413) (1,096) Occupancy costs 334 - 1,875 - Depreciation and amortization (3,924) - (3,924) - 71,926 - 81,252 2,084 Adjusted operating income Bob Evans Restaurants 19,524 19,889 59,162 66,264 Mimi's Cafe 304 3,222 (5,892) (1,257) BEF Foods 4,710 7,147 22,615 16,160 Total adjusted operating income $ 24,538 $ 30,258 $ 75,885 $ 81,167 (1) Includes assets held for sale impairment of $68.4 million. Consolidated Bob Evans Restaurants Three Months Ended Three Months Ended Jan 25, 2013 % of Sales Jan 27, 2012 % of Sales Jan 25, 2013 % of Sales Jan 27, 2012 % of Sales Operating (loss) income as restated Net sales $ 434,440 $ 428,339 $ 245,494 $ 242,360 Cost of sales 134,771 31.0% 137,657 32.1% 59,561 24.3% 58,377 24.1% Operating wages 137,327 31.6% 133,575 31.2% 92,115 37.5% 92,365 38.1% Other operating 72,070 16.6% 69,906 16.3% 43,476 17.7% 44,604 18.4% SG&A 50,407 11.6% 36,634 8.6% 19,271 7.8% 15,017 6.2% Deprec and amort 18,844 4.3% 20,309 4.7% 13,433 5.5% 12,108 5.0% Assets held for sale impairment 68,409 15.7% - - - Total as restated (47,388) -10.9% 30,258 7.1% 17,638 7.2% 19,889 8.2% Adjustments Other operating (334) - - - SG&A (7,107) - (1,886) - Deprec and amort 3,924 - - - Assets held for sale impairment (68,409) - - - Total adjustments 71,926 - 1,886 - Adjusted operating income Net sales 434,440 428,339 245,494 242,360 Cost of sales 134,771 31.0% 137,657 32.1% 59,561 24.3% 58,377 24.1% Operating wages 137,327 31.6% 133,575 31.2% 92,115 37.5% 92,365 38.1% Other operating 71,736 16.5% 69,906 16.3% 43,476 17.7% 44,604 18.4% SG&A 43,300 10.0% 36,634 8.6% 17,385 7.1% 15,017 6.2% Deprec and amort 22,768 5.2% 20,309 4.7% 13,433 5.5% 12,108 5.0% Total adjusted operating income 24,538 5.6% 30,258 7.1% 19,524 8.0% 19,889 8.2% Net interest expense as reported 7,451 1,879 Adjustments (6,150) - Adjusted net interest expense 1,301 1,879 (Loss) income before income taxes as restated (54,839) 28,379 Adjustments 78,076 - Adjusted income before income taxes 23,238 28,379 Provision for income taxes as restated 397 8,124 Income tax effect of adjustment 7,022 - Adjusted provision for income taxes 7,419 8,124 Net (loss) income as restated (55,236) 20,255 Adjustments to net (loss) income 71,054 - Adjusted net income 15,818 20,255 Earnings per share Basic as restated $ (1.97) $ 0.69 Adjustments $ 2.54 $ 0.00 Adjusted basic $ 0.57 $ 0.69 Diluted as restated $ (1.97) $ 0.69 Adjustments $ 2.53 $ 0.00 Adjusted diluted $ 0.56 $ 0.69 Average shares outstanding Basic 27,994 29,319 Average shares outstanding Diluted 28,136 29,415 Mimi's Cafe BEF Foods Three Months Ended Three Months Ended Jan 25, 2013 % of Sales Jan 27, 2012 % of Sales Jan 25, 2013 % of Sales Jan 27, 2012 % of Sales Operating income (loss) as restated Net sales $ 91,119 $ 94,948 $ 97,827 $ 91,031 Cost of sales 23,422 25.7% 25,829 27.2% 51,788 52.9% 53,450 58.7% Operating wages 34,382 37.7% 34,073 35.9% 10,830 11.1% 7,137 7.8% Other operating 20,854 22.9% 20,099 21.2% 7,740 7.9% 5,203 5.7% SG&A (146,438) -160.7% 5,849 6.2% 177,575 181.5% 15,768 17.3% Deprec and amort 1,875 2.1% 5,876 6.2% 3,536 3.6% 2,324 2.6% Assets held for sale impairment 68,409 75.1% - - - Total as restated 88,615 97.3% 3,222 3.4% (153,641) -157.1% 7,147 7.9% Adjustments Other operating (334) - - - SG&A 153,130 - (158,351) - Deprec and amort 3,924 - - - Assets held for sale impairment (68,409) - - - Total adjustments (88,311) - 158,351 - Adjusted operating income Net sales 91,119 94,948 97,827 91,031 Cost of sales 23,422 25.7% 25,829 27.2% 51,788 52.9% 53,450 58.7% Operating wages 34,382 37.7% 34,073 35.9% 10,830 11.1% 7,137 7.8% Other operating 20,521 22.5% 20,099 21.2% 7,740 7.9% 5,203 5.7% SG&A 6,693 7.3% 5,849 6.2% 19,224 19.7% 15,768 17.3% Deprec and amort 5,798 6.4% 5,876 6.2% 3,536 3.6% 2,324 2.6% Total adjusted operating income 304 0.3% 3,222 3.4% 4,710 4.8% 7,147 7.9% Consolidated Bob Evans Restaurants Nine Months Ended Nine Months Ended Jan 25, 2013 % of Sales Jan 27, 2012 % of Sales Jan 25, 2013 % of Sales Jan 27, 2012 % of Sales Operating (loss) income as restated Net sales $ 1,255,032 $ 1,240,885 $ 739,762 $ 728,949 Cost of sales 374,847 29.9% 384,586 31.0% 177,662 24.0% 173,079 23.7% Operating wages 403,646 32.2% 399,422 32.2% 277,573 37.5% 277,386 38.1% Other operating 217,288 17.3% 206,342 16.6% 133,787 18.1% 130,520 17.9% SG&A 134,382 10.7% 110,525 8.9% 55,964 7.6% 47,685 6.5% Deprec and amort 61,827 4.9% 60,927 4.9% 39,327 5.3% 36,415 5.0% Assets held for sale impairment 68,409 5.5% - - - Total as restated (5,367) -0.4% 79,083 6.4% 55,449 7.5% 63,865 8.8% Adjustments Other operating (1,875) - - - SG&A (14,892) (2,084) (3,713) (2,399) Deprec and amort 3,924 - - - Assets held for sale impairment (68,409) - - - Total adjustments 81,252 2,084 3,713 2,399 Adjusted operating income Net sales 1,255,032 1,240,885 739,762 728,949 Cost of sales 374,847 29.9% 384,586 31.0% 177,662 24.0% 173,079 23.7% Operating wages 403,646 32.2% 399,422 32.2% 277,573 37.5% 277,386 38.1% Other operating 215,413 17.2% 206,342 16.6% 133,787 18.1% 130,520 17.9% SG&A 119,490 9.5% 108,441 8.7% 52,251 7.1% 45,286 6.2% Deprec and amort 65,750 5.2% 60,927 4.9% 39,327 5.3% 36,415 5.0% Total adjusted operating income 75,885 6.0% 81,167 6.5% 59,162 8.0% 66,264 9.1% Net interest expense as reported 10,980 5,975 Adjustments (6,150) - Adjusted net interest expense 4,830 5,975 (Loss) income before income taxes as restated (16,347) 73,108 Adjustments 87,402 2,084 Adjusted income before income taxes 71,055 75,192 Provision for income taxes as restated 13,539 22,294 Income tax effect of adjustment 10,192 711 Adjusted provision for income taxes 23,732 23,005 Net (loss) income as restated (29,886) 50,814 Adjustments to net (loss) income 77,209 1,373 Adjusted net income 47,323 52,187 Earnings per share Basic as restated $ (1.06) $ 1.70 Adjustments $ 2.74 $ 0.05 Adjusted basic $ 1.68 $ 1.74 Diluted as restated $ (1.06) $ 1.69 Adjustments $ 2.72 $ 0.05 Adjusted diluted $ 1.67 $ 1.74 Average shares outstanding Basic 28,203 29,909 Average shares outstanding Diluted 28,345 29,999 Mimi's Cafe BEF Foods Nine Months Ended Nine Months Ended Jan 25, 2013 % of Sales Jan 27, 2012 % of Sales Jan 25, 2013 % of Sales Jan 27, 2012 % of Sales Operating income (loss) as restated Net sales $ 258,715 $ 270,385 $ 256,555 $ 241,551 Cost of sales 67,680 26.2% 72,781 26.9% 129,506 50.5% 138,726 57.4% Operating wages 98,621 38.1% 100,401 37.1% 27,452 10.7% 21,635 9.0% Other operating 63,033 24.4% 61,865 22.9% 20,467 8.0% 13,957 5.8% SG&A (132,632) -51.3% 19,220 7.1% 211,050 82.3% 43,620 18.1% Deprec and amort 13,344 5.2% 17,661 6.5% 9,155 3.6% 6,851 2.8% Assets held for sale impairment 68,409 26.4% - - - Total as restated 80,259 31.0% (1,544) -0.6% (141,075) -55.0% 16,762 6.9% Adjustments Other operating (1,875) - - - SG&A 152,511 (287) (163,690) 602 Deprec and amort 3,924 - - - Assets held for sale impairment (68,409) - - - Total adjustments (86,151) 287 163,690 (602) Adjusted operating income Net sales 258,715 270,385 256,555 241,551 Cost of sales 67,680 26.2% 72,781 26.9% 129,506 50.5% 138,726 57.4% Operating wages 98,621 38.1% 100,401 37.1% 27,452 10.7% 21,635 9.0% Other operating 61,159 23.6% 61,865 22.9% 20,467 8.0% 13,957 5.8% SG&A 19,879 7.7% 18,933 7.0% 47,360 18.5% 44,222 18.3% Deprec and amort 17,268 6.7% 17,661 6.5% 9,155 3.6% 6,851 2.8% Total adjusted operating (loss) income (5,892) -2.3% (1,257) -0.5% 22,615 8.8% 16,160 6.7%