HOUSTON, March 23, 2015 /PRNewswire/ -- Luby's, Inc.
(NYSE: LUB) ("Luby's") today announced unaudited financial results
for its twelve-week second quarter fiscal 2015, which ended on
February 11, 2015.
Total revenues for the second quarter fiscal 2015 increased
$2.4 million to $91.0 million. Loss from continuing operations
before special items was $0.04 per
diluted share compared to income from continuing operations before
special items of $0.01 per diluted
share in the second quarter fiscal 2014.
Chris Pappas, President and CEO,
commented, "We are pleased to report year-over-year total revenue
growth this quarter in our Company-owned Restaurants and
Franchising business segments. We also achieved sales
increases on a same-store restaurant basis at our core Luby's
Cafeterias and Fuddruckers restaurant brands.
"Our five Combo locations (consisting of a side-by-side Luby's
Cafeteria and Fuddruckers at one property location) contributed
5.8% to our total restaurant sales in the second quarter fiscal
2015. Our first Combo location, which has operated for more than
two years, achieved 2.4% sales growth. These Combo locations are
performing well since their introduction and represent a strategic
growth driver for our company.
"In the second quarter fiscal 2015, we opened a Fuddruckers
restaurant in Newark, Delaware
which we converted from a Cheeseburger in Paradise restaurant.
Additionally, we announced a new franchise partnership to open a
Fuddruckers restaurant in Maine
later this year. Early in our third quarter fiscal 2015, we were
also excited to have debuted our first Combo location outside of
Texas, representing our sixth
Combo location to date. This newest Combo location
opened with much fanfare in Jackson,
Mississippi and has broken all sales records so far for a
new Combo opening."
Second Quarter Fiscal 2015 Highlights
- Total revenue increased $2.4
million. Same-store sales increased 2.5%.
- Sales at Combo locations were $4.9
million in the second quarter fiscal 2015 and represented
5.8% of total restaurant sales compared to 1.8% of sales in the
second quarter fiscal 2014
- One new Company-owned Fuddruckers restaurant opened in
Newark, Delaware.
Same-Store Sales Year-Over-Year Comparison
|
Q1
2015
|
Q2
2015
|
YTD
2015
|
Luby's
Cafeterias
|
0.2%
|
3.1%
|
1.7%
|
Fuddruckers
Restaurants
|
0.2%
|
2.1%
|
1.1%
|
Combo
Locations(1)
|
2.4%
|
2.4%
|
2.4%
|
Cheeseburger in
Paradise
|
(6.7)%
|
(4.8%)
|
(5.8%)
|
Total same-store
sales
|
(0.1)%
|
2.5%
|
1.2%
|
|
|
(1)
|
Combo locations
consist of a side-by-side Luby's Cafeteria and Fuddruckers
Restaurant at one property location.
|
(2)
|
Note: Luby's includes
a restaurant's sales results into the same-store sales calculation
in the quarter after a store has been open for six complete
consecutive quarters. The first Combo location met the definition
of same-stores in the third quarter fiscal 2014; the Cheeseburger
in Paradise locations met the definition of same-stores in the
first quarter fiscal 2015. In the second quarter fiscal 2015, there
were 89 Luby's Cafeterias, 57 Fuddruckers Restaurants, 1 Combo
location, and 8 Cheeseburger in Paradise locations that met the
definition of same-stores.
|
Second Quarter Fiscal 2015 Results:
Restaurant
Brand
|
Q2
2015
($000s)
|
Q2
2014
($000s)
|
Change
($000s)
|
Change
(%)
|
Luby's
Cafeterias
|
$
54,574
|
$
54,291
|
$
283
|
0.5%
|
Fuddruckers
Restaurants
|
22,820
|
20,575
|
2,245
|
10.9%
|
Combo
Locations
|
4,937
|
1,519
|
3,418
|
225.1%
|
Cheeseburger in
Paradise
|
3,155
|
6,266
|
(3,111)
|
(49.7%)
|
Koo Koo
Roo
|
—
|
279
|
(279)
|
(100%)
|
Total Restaurant
Sales
|
$
85,486
|
$
82,930
|
$
2,556
|
3.1%
|
- Restaurant sales increased by $2.6
million to $85.5 million in
the second quarter fiscal 2015 compared to $82.9 million in the second quarter fiscal
2014.
- Sales increased at Luby's Cafeteria by $0.3 million to $54.6
million. The increase in sales at Luby's Cafeterias resulted
from a 3.1% increase in same-store sales offset by the absence in
sales from three closed Luby's Cafeterias. The 3.1% increase in
same-store Luby's Cafeteria sales resulted from a 2.2% increase in
guest traffic and a 0.9% increase in average spend per guest.
- Sales increased $2.2 million at
our Fuddruckers restaurants. The sales increase at Fuddruckers
restaurants resulted from a 2.1% increase in same-store sales and
the incremental sales contribution from nine new Fuddruckers
restaurants (including four locations that were converted from
Cheeseburger in Paradise restaurants), with these additions
partially offset by the absence of sales from four closed
Fuddruckers restaurants. The 2.1% increase in same-store
sales at Fuddruckers restaurants resulted from a 1.8% increase in
guest traffic and a 0.3% increase in average spend per guest.
- Sales increased $3.4 million at
our Combo locations due to a 2.4% increase in sales at our first
Combo location (included in our same-store grouping) and the sales
contribution from four new Combo locations. The Combo
locations together represented 5.8% of our total restaurant sales
in the second quarter fiscal 2015 compared to 1.8% of our total
restaurant sales in the second quarter fiscal 2014.
- Sales declined $3.1 million at
our Cheeseburger in Paradise restaurants due to a reduction in
operating restaurants included in our continuing operations, down
from 16 restaurants at the end of second quarter fiscal 2014 to
eight restaurants in the second quarter fiscal 2015. In
addition, sales declined 4.8% at the eight Cheeseburger in Paradise
restaurants in operation during the second quarter fiscal 2015.
Offsetting the $3.1 million sales
decline was $1.4 million in sales
recaptured at the four locations that were converted from a
Cheeseburger in Paradise restaurant to a Fuddruckers
restaurant.
- We ceased operations at the remaining Koo Koo Roo Chicken
restaurant prior to the start of fiscal 2015. The absence of those
sales accounted for an additional $0.3
million reduction in total restaurant sales.
- Revenue from franchise operations was $1.6 million in the second quarter fiscal 2015
compared to $1.5 million in the
second quarter fiscal 2014. We ended the quarter with 107
franchise locations in our Fuddruckers franchise network.
- Revenue from Culinary Contract Services decreased to
$3.8 million in the second quarter
fiscal 2015 compared to $4.0 million
in the second quarter fiscal 2014. We ended the second quarter
fiscal 2015 operating 24 locations, an increase from 22 locations
at the end of the second quarter fiscal 2014 but a decrease from 26
locations in first quarter fiscal 2015.
- Store level profit, defined as restaurant sales less cost of
food, payroll and related costs, other operating expenses, and
occupancy costs, was $9.5 million, or
11.1% of restaurant sales in the second quarter fiscal 2015
compared to $9.4 million or 11.3% of
restaurant sales in the second quarter fiscal 2014.
While higher food commodity costs continued to represent a
significant cost pressure, we were able to increase store level
profit by $0.1 million through
top-line restaurant sales growth of $2.6
million, allowing us to leverage our other operating
expenses. Offsetting the $0.1
million increase in store level profit was the higher
depreciation expense and higher interest expense related to our
growth strategy, leading to reduced income from continuing
operations. Store level profit is a non-GAAP measure and
reconciliation to income from continuing operations is presented
after the financial statements.
- In the second quarter fiscal 2015, the company reported a loss
from continuing operations of $1.2
million, or a loss of $0.04
per diluted share. This compares to loss from continuing
operations of $1.6 million, or a loss
of $0.05 per diluted share, in the
second quarter fiscal 2014. Results in fiscal 2015 and fiscal
2014 included various special items. Excluding special items,
the loss from continuing operations was also $1.2 million, or a loss of $0.04 per diluted share, in second quarter fiscal
2015, compared to income from continuing operations of $0.3 million, or earnings of $0.01 per diluted share, in second quarter fiscal
2014.
Reconciliation of
loss from continuing operations to income/(loss) from continuing
operations, before special items (1,2):
|
|
|
Q2
FY2015
|
|
Q2
FY2014
|
|
Item
|
|
Amount
($000s)
|
|
Per Share
($)
|
|
Amount
($000s)
|
|
Per Share
($)
|
|
Loss from continuing
operations
|
|
$
|
(1,229)
|
|
|
$
|
(0.04)
|
|
|
$
|
(1,581)
|
|
|
$
|
(0.05)
|
|
Asset charges; loss
(gain) on disposal of assets
|
|
|
(765)
|
|
|
|
(0.03)
|
|
|
|
888
|
|
|
|
0.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
Cheeseburger in Paradise (3)
|
|
|
510
|
|
|
|
0.02
|
|
|
|
575
|
|
|
|
0.02
|
|
Cheeseburger in
Paradise locations closed for conversion (4)
|
|
|
284
|
|
|
|
0.01
|
|
|
|
404
|
|
|
|
0.01
|
|
Income (Loss) from
Continuing Operations, before special items
|
|
$
|
(1,200)
|
|
|
$
|
(0.04)
|
|
|
$
|
286
|
|
|
$
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Luby's uses income
(loss) from continuing operations, before special items, in
analyzing its results, which is a non-GAAP financial measure. This
information should be considered in addition to the results
presented in accordance with GAAP, and should not be considered a
substitute for the GAAP results. Luby's has reconciled income from
continuing operations, before special items, to income from
continuing operations, the nearest GAAP measure in
context.
|
(2)
|
Per share amounts are
per diluted share after tax.
|
(3)
|
Loss from
Cheeseburger in Paradise is after allocation of depreciation,
direct G&A and interest expense, net of an estimated tax
benefit.
|
(4)
|
These costs include
rent, property taxes, utilities and certain restaurant management
labor costs associated with Cheeseburger in Paradise locations
closed for conversion. These costs are included in opening costs
and payroll and related costs.
|
|
|
Second Quarter Fiscal 2015 Operating Expense Review
Cost of food as a percentage of restaurant sales increased to
29.8% in the second quarter fiscal 2015 compared to 29.0% in the
second quarter fiscal 2014. The cost of food as a percentage
of sales increased primarily from higher food commodity costs which
impacted each of our restaurant brands. Food commodity prices for
our basket of food commodity purchases were higher by approximately
7.0% at our Luby's Cafeterias and approximately 12.0% at our
Fuddruckers restaurants.
In the second quarter fiscal 2015, payroll and related costs as
a percentage of restaurant sales decreased to 34.9% compared to
35.3% in the second quarter fiscal 2014. The decrease reflects our
ability to leverage hourly and management costs on higher sales
volumes. This decrease also reflects comparison to the second
quarter fiscal 2014 when increased management labor was deployed
during the first eight weeks of operations at newly opened
stores. These decreases were partially offset by additional
investments in restaurant labor in order to enhance guest service
and motivate increased guest traffic.
Other operating expenses include restaurant-related expenses for
utilities, repairs and maintenance, advertising, insurance,
supplies, and services. As a percentage of restaurant sales, other
operating expenses were 18.6% in the second quarter fiscal 2015
consistent with the second quarter fiscal 2014. The decrease was
attributable to lower utilities expenses, insurance costs, and
restaurant services costs as percentage of restaurant sales.
These expenses were offset by higher marketing and advertising
expenses and higher repairs and maintenance costs as percentage of
restaurant sales.
Occupancy costs include property lease expense, property taxes,
and common area maintenance charges. Occupancy costs were
$4.8 million in the second quarter
fiscal 2015, consistent with occupancy costs of $4.8 million in the second quarter fiscal
2014.
Opening costs include labor, supplies, occupancy, and other
costs necessary to support the restaurant through its opening
period. Opening costs were $0.7
million in the second quarter fiscal 2015, consistent with
the second quarter fiscal 2014. Included in the opening costs
in the second quarter fiscal 2015 were the carrying costs of
approximately $0.3 million associated
with six locations that were previously operated as Cheeseburger in
Paradise restaurants and are in the process of conversion to
Fuddruckers restaurants.
Depreciation and amortization expense increased by $0.3 million to $4.8
million in the second quarter fiscal 2015. This increase was
due primarily to an increase in the depreciable asset base from
recent new store construction and restaurant conversion
activity.
General and administrative expenses were $8.1 million in the second quarter fiscal 2015
consistent with the second quarter fiscal 2014. As a percentage of
total revenues, general and administrative expenses were 8.9% in
the second quarter fiscal 2015, a decrease from 9.2% in the second
quarter fiscal 2014.
Balance Sheet and Capital Expenditures
We ended the second quarter fiscal 2015 with an outstanding debt
balance of $54.5 million.
During the first two quarters of fiscal 2015, our capital
expenditures totaled $11.0 million.
At the end of the second quarter fiscal 2015, we had $1.6 million in cash and $171.2 million in shareholders' equity.
Fiscal Year to Date:
- Restaurant sales were $166.0
million during the first two fiscal quarters of 2015, an
increase from $162.9 million in the
comparable quarters in fiscal 2014.
- Same store sales increased 1.2% during the first two fiscal
quarters of 2015 compared to the comparable quarters in fiscal
2014.
- Culinary Contract Services revenue rose to $8.4 million during the first two quarters of
fiscal 2015, compared to $8.2 million
in the comparable quarters in fiscal 2014.
- Store level profit was $16.8
million, or 10.1% of restaurant sales, in the first two
quarters of fiscal 2015, a decrease from $18.5 million, or 11.3% of restaurant sales, in
the comparable quarters in fiscal 2014.
Restaurant Counts:
|
FY2015 Year Begin
|
|
FY15
YTD Openings
|
|
FY15 YTD
Closings
|
|
FY2015
Q2
End
|
Luby's
Cafeterias(1)
|
|
94
|
|
|
|
|
|
94
|
Fuddruckers(1)
|
|
71
|
|
3
|
|
(3)
|
|
71
|
Cheeseburger in
Paradise
|
|
8
|
|
|
|
|
|
8
|
Other
restaurants(2)
|
|
1
|
|
|
|
|
|
1
|
Total
|
|
174
|
|
3
|
|
(3)
|
|
174
|
|
|
(1)
|
Includes
5 restaurants that are part of "Combo" locations
|
(2)
|
Other
restaurants include one Bob Luby's Seafood
|
Fiscal 2015 Outlook
"In fiscal 2014, we exceeded our new restaurant development
expectations by opening twelve new restaurant locations. In fiscal
2015, we are focused on improving store level profit at these new
restaurants while also enhancing profitability at legacy locations.
While we expect commodity cost pressures to increase in certain
categories, we continue to implement and manage store-level
initiatives to improve sales and profitability, including modest
price adjustments on selected menu items. Our expectation in
fiscal 2015 is to realize same-store sales growth at our core
Luby's Cafeterias and Fuddruckers brands and higher store level
profit, with lower general and administrative expenses, offset by
higher depreciation and interest expense, resulting in improved
financial results over the prior year. We plan to reduce our
capital expenditures in fiscal 2015 to between $20 and $22 million. From our franchise
pipeline, we estimate seven new Fuddruckers restaurant location
openings in fiscal 2015, to be located in both domestic and
international markets, including Italy, Poland, Panama, and Chile," concluded Pappas.
Conference Call
Luby's will host a conference call today at 10:00 a.m. Central Time to discuss further its
second quarter fiscal 2015 results. To access the call live, dial
(412) 902-0030 and use the access code 13603330# at least 10
minutes prior to the start time, or listen live over the Internet
by visiting the events page in the investor relations section of
www.lubysinc.com. For those who cannot listen to the live
call, a telephonic replay will be available through March 30, 2015 and may be accessed by calling
(201) 612-7415 and using the access code 13603330#. Also, an
archive of the webcast will be available after the call for a
period of 90 days on the "Investors" section of the Company's
website.
About Luby's
Luby's, Inc. (NYSE: LUB) operates restaurants under the brands
Luby's Cafeteria, Fuddruckers and Cheeseburger in Paradise and
provides food service management through its Culinary Contract
Services business segment. The company-owned restaurants include 95
Luby's Cafeterias, 72 Fuddruckers restaurants, 8 Cheeseburger in
Paradise full service restaurants and bars and one Bob Luby's Seafood Grill. Its 95 Luby's
Cafeterias are located primarily in Texas. In addition to the 72 company-operated
Fuddruckers locations, Luby's is the franchisor for 107 Fuddruckers
franchise locations across the United
States (including Puerto
Rico), Canada, Mexico, Italy, the Dominican
Republic, Panama, and
Chile. Additionally, a licensee
operates 31 restaurants with the exclusive right to use the
Fuddruckers proprietary marks, trade dress, and system in certain
countries in the Middle East. The Company does not receive
revenue or royalties from these restaurants. Luby's Culinary
Contract Services provides food service management to 24 sites
consisting of healthcare, higher education and corporate dining
locations.
This press release contains statements that are
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. All statements
contained in this press release, other than statements of
historical fact, are "forward-looking statements" for purposes of
these provisions, including the statements under the caption
"Outlook" and any other statements regarding scheduled openings of
units, scheduled closures of units, sales of assets, expected
proceeds from the sale of assets, expected levels of capital
expenditures, effects of food commodity costs, anticipated
financial results in future periods and expectations of industry
conditions.
Luby's cautions readers that various factors could cause its
actual financial and operational results to differ materially from
those indicated by forward-looking statements made from
time-to-time in news releases, reports, proxy statements,
registration statements, and other written communications, as well
as oral statements made from time to time by representatives of
Luby's. The following factors, as well as any other
cautionary language included in this press release, provide
examples of risks, uncertainties and events that may cause Luby's
actual results to differ materially from the expectations Luby's
describes in such forward-looking statements: general business and
economic conditions; the impact of competition; our operating
initiatives; fluctuations in the costs of commodities, including
beef, poultry, seafood, dairy, cheese and produce; increases in
utility costs, including the costs of natural gas and other energy
supplies; changes in the availability and cost of labor; the
seasonality of Luby's business; changes in governmental
regulations, including changes in minimum wages; the effects of
inflation; the availability of credit; unfavorable publicity
relating to operations, including publicity concerning food
quality, illness or other health concerns or labor relations; the
continued service of key management personnel; and other risks and
uncertainties disclosed in Luby's annual reports on Form 10-K and
quarterly reports on Form 10-Q.
Luby's,
Inc.
Consolidated
Statements of Operations (unaudited)
(In thousands,
except per share data)
|
|
|
|
Quarter
Ended
|
|
|
Two Quarters
Ended
|
|
|
|
February 11,
2015
|
|
|
February 12,
2014
|
|
|
February 11,
2015
|
|
|
February 12,
2014
|
|
|
|
(12
weeks)
|
|
|
(12
weeks)
|
|
|
(24
weeks)
|
|
|
(24
weeks)
|
|
SALES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restaurant
sales
|
|
$
|
85,486
|
|
|
$
|
82,930
|
|
|
$
|
166,043
|
|
|
$
|
162,881
|
|
Culinary contract
services
|
|
|
3,771
|
|
|
|
3,979
|
|
|
|
8,369
|
|
|
|
8,249
|
|
Franchise
revenue
|
|
|
1,605
|
|
|
|
1,545
|
|
|
|
3,186
|
|
|
|
3,060
|
|
Vending
revenue
|
|
|
120
|
|
|
|
115
|
|
|
|
244
|
|
|
|
227
|
|
TOTAL
SALES
|
|
|
90,982
|
|
|
|
88,569
|
|
|
|
177,842
|
|
|
|
174,417
|
|
COSTS AND
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
food
|
|
|
25,471
|
|
|
|
24,042
|
|
|
|
48,964
|
|
|
|
46,911
|
|
Payroll and related
costs
|
|
|
29,837
|
|
|
|
29,248
|
|
|
|
59,156
|
|
|
|
57,413
|
|
Other operating
expenses
|
|
|
15,879
|
|
|
|
15,401
|
|
|
|
31,703
|
|
|
|
30,544
|
|
Occupancy
costs
|
|
|
4,780
|
|
|
|
4,840
|
|
|
|
9,408
|
|
|
|
9,529
|
|
Opening
costs
|
|
|
683
|
|
|
|
682
|
|
|
|
1,608
|
|
|
|
1,031
|
|
Cost of culinary
contract services
|
|
|
3,331
|
|
|
|
3,496
|
|
|
|
7,282
|
|
|
|
7,169
|
|
Depreciation and
amortization
|
|
|
4,772
|
|
|
|
4,473
|
|
|
|
9,830
|
|
|
|
8,792
|
|
General and
administrative expenses
|
|
|
8,074
|
|
|
|
8,118
|
|
|
|
15,777
|
|
|
|
16,184
|
|
Provision for asset
impairments, net
|
|
|
218
|
|
|
|
1,329
|
|
|
|
218
|
|
|
|
1,539
|
|
Net loss
(gain) on disposition of property and equipment
|
|
|
(1,377)
|
|
|
|
16
|
|
|
|
(1,087)
|
|
|
|
67
|
|
Total costs and
expenses
|
|
|
91,668
|
|
|
|
91,645
|
|
|
|
182,859
|
|
|
|
179,179
|
|
LOSS FROM
OPERATIONS
|
|
|
(686)
|
|
|
|
(3,076)
|
|
|
|
(5,017)
|
|
|
|
(4,762)
|
|
Interest
income
|
|
|
1
|
|
|
|
1
|
|
|
|
2
|
|
|
|
3
|
|
Interest
expense
|
|
|
(568)
|
|
|
|
(292)
|
|
|
|
(1,024)
|
|
|
|
(545)
|
|
Other income,
net
|
|
|
86
|
|
|
|
260
|
|
|
|
273
|
|
|
|
556
|
|
Loss before income
taxes and discontinued operations
|
|
|
(1,167)
|
|
|
|
(3,107)
|
|
|
|
(5,766)
|
|
|
|
(4,748)
|
|
Provision (benefit)
for income taxes
|
|
|
62
|
|
|
|
(1,526)
|
|
|
|
(1,721)
|
|
|
|
(2,474)
|
|
Loss from continuing
operations
|
|
|
(1,229)
|
|
|
|
(1,581)
|
|
|
|
(4,045)
|
|
|
|
(2,274)
|
|
Loss from
discontinued operations, net of income taxes
|
|
|
(130)
|
|
|
|
(603)
|
|
|
|
(333)
|
|
|
|
(1,455)
|
|
NET LOSS
|
|
$
|
(1,359)
|
|
|
$
|
(2,184)
|
|
|
$
|
(4,378)
|
|
|
$
|
(3,729)
|
|
Loss per share from
continuing operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.04)
|
|
|
$
|
(0.06)
|
|
|
$
|
(0.14)
|
|
|
$
|
(0.08)
|
|
Assuming
dilution
|
|
|
(0.04)
|
|
|
|
(0.06)
|
|
|
|
(0.14)
|
|
|
|
(0.08)
|
|
Loss per share from
discontinued operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.01)
|
|
|
$
|
(0.02)
|
|
|
$
|
(0.01)
|
|
|
$
|
(0.05)
|
|
Assuming
dilution
|
|
|
(0.01)
|
|
|
|
(0.02)
|
|
|
|
(0.01)
|
|
|
|
(0.05)
|
|
Loss income per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.05)
|
|
|
$
|
(0.08)
|
|
|
$
|
(0.15)
|
|
|
$
|
(0.13)
|
|
Assuming
dilution
|
|
|
(0.05)
|
|
|
|
(0.08)
|
|
|
|
(0.15)
|
|
|
|
(0.13)
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
28,921
|
|
|
|
28,775
|
|
|
|
28,906
|
|
|
|
28,770
|
|
Assuming
dilution
|
|
|
28,921
|
|
|
|
28,775
|
|
|
|
28,906
|
|
|
|
28,770
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of
these Consolidated Financial Statements.
The following table contains information derived from the
Company's Consolidated Statements of Operations expressed as a
percentage of sales. Percentages may not add due to
rounding.
|
|
Quarter
Ended
|
|
Two Quarters
Ended
|
|
|
|
February
11,
|
|
February
12,
|
|
February
11,
|
|
February
12,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
(12
weeks)
|
|
(12
weeks)
|
|
(24
weeks)
|
|
(24
weeks)
|
|
|
|
|
|
Restaurant
sales
|
|
|
94.0
|
%
|
|
93.6
|
%
|
|
93.4
|
%
|
|
93.4
|
%
|
Culinary contract
services
|
|
|
4.1
|
%
|
|
4.5
|
%
|
|
4.7
|
%
|
|
4.7
|
%
|
Franchise
revenue
|
|
|
1.8
|
%
|
|
1.7
|
%
|
|
1.8
|
%
|
|
1.8
|
%
|
Vending
revenue
|
|
|
0.1
|
%
|
|
0.1
|
%
|
|
0.1
|
%
|
|
0.1
|
%
|
TOTAL
SALES
|
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COSTS AND
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(As a percentage
of restaurant sales)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
food
|
|
|
29.8
|
%
|
|
29.0
|
%
|
|
29.5
|
%
|
|
28.8
|
%
|
Payroll and related
costs
|
|
|
34.9
|
%
|
|
35.3
|
%
|
|
35.6
|
%
|
|
35.2
|
%
|
Other operating
expenses
|
|
|
18.6
|
%
|
|
18.6
|
%
|
|
19.1
|
%
|
|
18.8
|
%
|
Occupancy
|
|
|
5.6
|
%
|
|
5.8
|
%
|
|
5.7
|
%
|
|
5.9
|
%
|
Store level
profit
|
|
|
11.1
|
%
|
|
11.3
|
%
|
|
10.1
|
%
|
|
11.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(As a percentage
of total sales)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative expenses
|
|
|
8.9
|
%
|
|
9.2
|
%
|
|
8.9
|
%
|
|
9.3
|
%
|
LOSS FROM
OPERATIONS
|
|
|
(0.8)%
|
|
|
(3.5)%
|
|
|
(2.8)%
|
|
|
(2.7)%
|
|
|
Luby's,
Inc.
Consolidated
Balance Sheets
(In thousands,
except share data)
|
|
|
February
11,
2015
|
|
|
August
27,
2014
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
1,621
|
|
|
$
|
2,788
|
|
Trade accounts and other receivables, net
|
|
|
5,317
|
|
|
|
4,112
|
|
Food and supply inventories
|
|
|
5,151
|
|
|
|
5,556
|
|
Prepaid expenses
|
|
|
3,194
|
|
|
|
2,815
|
|
Assets related to discontinued operations
|
|
|
36
|
|
|
|
52
|
|
Deferred income taxes
|
|
|
589
|
|
|
|
587
|
|
Total
current assets
|
|
|
15,908
|
|
|
|
15,910
|
|
Property held for
sale
|
|
|
2,702
|
|
|
|
991
|
|
Assets related to
discontinued operations
|
|
|
4,820
|
|
|
|
4,204
|
|
Property and
equipment, net
|
|
|
210,411
|
|
|
|
213,492
|
|
Intangible assets,
net
|
|
|
23,347
|
|
|
|
24,014
|
|
Goodwill
|
|
|
1,643
|
|
|
|
1,681
|
|
Deferred income
taxes
|
|
|
13,419
|
|
|
|
11,294
|
|
Other
assets
|
|
|
3,699
|
|
|
|
3,849
|
|
Total
assets
|
|
$
|
275,949
|
|
|
$
|
275,435
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
18,861
|
|
|
$
|
26,269
|
|
Liabilities related to discontinued operations
|
|
|
433
|
|
|
|
590
|
|
Accrued expenses and other liabilities
|
|
|
22,976
|
|
|
|
23,107
|
|
Total current
liabilities
|
|
|
42,270
|
|
|
|
49,966
|
|
Credit facility
debt
|
|
|
54,500
|
|
|
|
42,000
|
|
Liabilities related
to discontinued operations
|
|
|
72
|
|
|
|
278
|
|
Other
liabilities
|
|
|
7,874
|
|
|
|
8,167
|
|
Total
liabilities
|
|
|
104,716
|
|
|
|
100,411
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
Common stock, $0.32
par value; 100,000,000 shares authorized; shares issued were
29,050,796 and 28,949,523, respectively; shares outstanding were
28,550,796 and 28,449,523, respectively
|
|
|
9,296
|
|
|
|
9,264
|
|
Paid-in capital
|
|
|
27,911
|
|
|
|
27,356
|
|
Retained earnings
|
|
|
138,801
|
|
|
|
143,179
|
|
Less cost of treasury stock, 500,000 shares
|
|
|
(4,775)
|
|
|
|
(4,775)
|
|
Total
shareholders' equity
|
|
|
171,233
|
|
|
|
175,024
|
|
Total liabilities and
shareholders' equity
|
|
$
|
275,949
|
|
|
$
|
275,435
|
|
|
|
The accompanying notes are an integral part of
these Consolidated Financial Statements.
Luby's,
Inc.
Consolidated
Statements of Cash Flows (unaudited)
(In
thousands)
|
|
|
Two Quarters
Ended
|
|
|
|
February
11,
|
|
|
February
12,
|
|
|
|
2015
|
|
|
2014
|
|
|
|
(24
weeks)
|
|
|
(24
weeks)
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(4,378)
|
|
|
$
|
(3,729)
|
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Provision for asset
impairments, net of gains/losses on property sales
|
|
|
(869)
|
|
|
|
2,362
|
|
Depreciation and
amortization
|
|
|
9,860
|
|
|
|
8,916
|
|
Amortization of debt
issuance cost
|
|
|
76
|
|
|
|
52
|
|
Non-cash compensation
expense
|
|
|
422
|
|
|
|
163
|
|
Share-based
compensation expense
|
|
|
165
|
|
|
|
325
|
|
Deferred tax
benefit
|
|
|
(2,128)
|
|
|
|
(3,075)
|
|
Cash provided by
operating activities before changes in operating assets and
liabilities
|
|
|
3,148
|
|
|
|
5,014
|
|
Changes in operating
assets and liabilities, net of business acquisition:
|
|
|
|
|
|
|
|
|
Decrease (increase)
in trade accounts and other receivables
|
|
|
(1,205)
|
|
|
|
458
|
|
Decrease (increase)
in food and supply inventories
|
|
|
405
|
|
|
|
(299)
|
|
Decrease (increase)
in prepaid expenses and other assets
|
|
|
(221)
|
|
|
|
1,131
|
|
Decrease in accounts
payable, accrued expenses and other liabilities
|
|
|
(7,801)
|
|
|
|
(5,464)
|
|
Net cash provided by
(used in) operating activities
|
|
|
(5,674)
|
|
|
|
840
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Proceeds from
disposal of assets and property held for sale
|
|
|
3,060
|
|
|
|
567
|
|
Purchases of property
and equipment
|
|
|
(10,988)
|
|
|
|
(19,082)
|
|
Decrease in note
receivable
|
|
|
—
|
|
|
|
23
|
|
Net cash used in
investing activities
|
|
|
(7,928)
|
|
|
|
(18,492)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Credit facility
borrowings
|
|
|
58,800
|
|
|
|
57,300
|
|
Credit facility
repayments
|
|
|
(46,300)
|
|
|
|
(39,500)
|
|
Proceeds from
exercise of stock options
|
|
|
3
|
|
|
|
9
|
|
Debt issuance
costs
|
|
|
(68)
|
|
|
|
—
|
|
Net cash provided by
financing activities
|
|
|
12,435
|
|
|
|
17,809
|
|
Net (decrease)
increase cash and cash equivalents
|
|
|
(1,167)
|
|
|
|
157
|
|
Cash and cash
equivalents at beginning of period
|
|
|
2,788
|
|
|
|
1,528
|
|
Cash and cash
equivalents at end of period
|
|
$
|
1,621
|
|
|
$
|
1,685
|
|
Cash paid
for:
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest
|
|
|
969
|
|
|
|
470
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of
these Consolidated Financial Statements.
Although store level profit, defined as restaurant sales less
cost of food, payroll and related costs, operating expenses, and
occupancy costs is a non-GAAP measure, we believe its presentation
is useful because it explicitly shows the results of our most
significant reportable segment. The following table reconciles
between store level profit, a non-GAAP measure to income from
continuing operations, a GAAP measure:
|
|
|
|
|
|
|
Quarter
Ended
|
Two Quarters
Ended
|
|
|
February
11, 2015
|
February
12, 2014
|
February
11, 2015
|
February
12, 2014
|
|
|
(12
weeks)
|
(12
weeks)
|
(24
weeks)
|
(24
weeks)
|
|
|
(In
thousands)
|
|
|
|
|
|
|
|
Store level
profit
|
$
9,519
|
$
9,399
|
$ 16,812
|
$ 18,484
|
|
|
|
|
|
|
|
|
Plus:
|
|
|
|
|
|
Sales
from vending revenue
|
120
|
115
|
244
|
227
|
|
Sales
from culinary contract services
|
3,771
|
3,979
|
8,369
|
8,249
|
|
Sales from franchise
revenue
|
1,605
|
1,545
|
3,186
|
3,060
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
Opening
costs
|
683
|
682
|
1,608
|
1,031
|
|
Cost of
culinary contract services
|
3,331
|
3,496
|
7,282
|
7,169
|
|
Depreciation and
amortization
|
4,772
|
4,473
|
9,830
|
8,792
|
|
General
and administrative expenses
|
8,074
|
8,118
|
15,777
|
16,184
|
|
Provision for asset impairments, net
|
218
|
1,329
|
218
|
1,539
|
|
Net loss
(gain) on disposition of property and equipment
|
(1,377)
|
16
|
(1,087)
|
67
|
|
Interest
income
|
(1)
|
(1)
|
(2)
|
(3)
|
|
Interest expense
|
568
|
292
|
1,024
|
545
|
|
Other
income, net
|
(86)
|
(260)
|
(273)
|
(556)
|
|
Provision (benefit) for income taxes
|
62
|
(1,526)
|
(1,721)
|
(2,474)
|
|
|
|
|
|
|
|
Loss
from continuing operations
|
$
(1,229)
|
$
(1,581)
|
$
(4,045)
|
$
(2,274)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For additional information contact:
Dennard-Lascar Associates
713-529-6600
Rick Black / Ken Dennard
Investor Relations
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/lubys-reports-second-quarter-fiscal-2015-results-300054135.html
SOURCE Luby's, Inc.