Diversified Restaurant Holdings, Inc. reported unaudited consolidated earnings results for the second quarter and six months ended July 1, 2018. For the quarter, the company reported revenue of $37,039,073 against $39,934,602 a year ago, as recent trends in the business continued throughout the quarter. Same-store sales were down 6.4%, the third consecutive quarter where sales diverged sharply from the broader industry, a trend that it believe, in large part, is driven by changes in the system-wide media and promotional strategies. Operating profit was $294,733 against $721,263 a year ago. Loss from continuing operations before income taxes was $1,294,678 against $895,903 a year ago. Loss from continuing operations was $1,140,210 against $291,343 a year ago. Net loss was $1,140,210 against $409,090 a year ago. Diluted loss per share from continuing operations was $0.04 against $0.01 a year ago. Diluted net loss per share was $0.04 against $0.02 a year ago. EBITDA was $3,402,424 against $4,256,819 a year ago. Adjusted EBITDA was $3,673,117 against $4,622,749 a year ago. Restaurant-Level EBITDA was $5,540,196 against $6,617,701 a year ago. The decrease in sales in the second quarter was the result of reduced traffic and the impact of the revenue deferral related to the Blazin' Rewards loyalty program, partially offset by a new restaurant opening late in second quarter of 2017 and a favorable calendar shift with Easter falling in the 2018 first quarter versus the second quarter in 2017.

For the six months, the company reported revenue of $76,572,030 against $84,272,566 a year ago. Operating profit was $1,798,543 against $3,087,894 a year ago. Loss from continuing operations before income taxes was $1,404,272 against $78,059 a year ago. Loss from continuing operations was $948,381 against income of $504,237 a year ago. Net loss was $948,381 against income of $422,030 a year ago. Diluted loss per share from continuing operations was $0.04 against earnings of $0.02 a year ago. Diluted net loss per share was $0.04 against earnings of $0.02 a year ago. Net cash provided by operating activities was $4,821,720 against $6,444,689 a year ago. Purchases of property and equipment was $906,414 against $3,571,296 a year ago. EBITDA was $8,078,585 against $10,278,763 a year ago. Adjusted EBITDA was $8,776,803 against $10,780,460 a year ago. Restaurant-Level EBITDA was $12,438,326 against $15,042,281 a year ago.

The company provided capital expenditures guidance for the year 2018. Capital expenditures are expected to total approximately $1.5 million for the year 2018.