HOUSTON, June 10, 2015 /PRNewswire/ -- Luby's, Inc.
(NYSE: LUB) ("Luby's") today announced unaudited financial results
for its twelve-week third quarter fiscal 2015, which ended on
May 6, 2015. Comparisons in this
press release for the third quarter fiscal year 2015 are referred
to as "third quarter."
Third Quarter
Highlights
- Income from continuing operations increased
to $0.09 per diluted share compared
to $0.06 the prior
year
- Other operating and general and
administrative expenses reduced
- Debt balance reduced by $6.5 million
- Combo restaurant sales were $6.4, million representing 7.2% of total
restaurant sales
- Total same-store sales decreased
1.1%
- Adjusted EBITDA increased
7.6%
Chris Pappas,
President and CEO, commented, "In the third quarter, income from
continuing operations increased $0.03
per share year over year driven by enhanced Combo location
profitability and lower overhead costs. While we are pleased with
the improved profitability in the quarter, we remain focused on
improving restaurant sales.
"In the third quarter, we paid down
$6.5 million of our revolving credit
facility and had $5.4 million of
capital expenditures, keeping us on pace to achieve our capital
expenditure estimate for the fiscal year of $20 million to $22
million.
"Our six Combo locations (consisting of a
side-by-side Luby's Cafeteria and Fuddruckers at one property
location) accounted for 7.2% of total restaurant sales in the third
quarter, up from 5.8% in the second quarter, due to our sixth
location opening this quarter. Our Combo
location in Jackson, Mississippi
that opened February 19th continues
to outperform sales expectations, which supports our interest in
opening Combo locations in new markets. Combo
locations are performing well and continue to represent a strategic
growth driver for our company.
"We continue to execute on our strategic plan
to convert certain Cheeseburger in Paradise restaurants to
Fuddruckers restaurants. We have completed four restaurant
conversions this year with up to three additional conversions set
to re-open in the fourth quarter."
Same-Store Sales Year-Over-Year
Comparison
|
Q1
2015
|
Q2
2015
|
Q3
2015
|
YTD
2015
|
Luby's Cafeterias
|
0.2%
|
3.1%
|
(1.0%)
|
0.7%
|
Fuddruckers
Restaurants
|
0.2%
|
2.1%
|
0.2%
|
0.8%
|
Combo
Locations(1)
|
2.4%
|
2.4%
|
(3.7%)
|
0.2%
|
Cheeseburger in
Paradise
|
(6.7)%
|
(4.8%)
|
(7.2%)
|
(6.3%)
|
Total same-store
sales(2)
|
(0.1)%
|
2.5%
|
(1.1%)
|
0.4%
|
(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 third quarter,
there were 88 Luby's Cafeterias, 57 Fuddruckers Restaurants, 1
Combo location, and 8 Cheeseburger in Paradise locations that met
the definition of same-stores.
|
Third Quarter
Results:
Restaurant Brand
|
Q3 2015
($000s)
|
Q3 2014
($000s)
|
Change
($000s)
|
Change
(%)
|
Luby's Cafeterias
|
$
53,975
|
$
55,851
|
$
(1,876)
|
(3.4)%
|
Fuddruckers
Restaurants
|
24,204
|
23,578
|
626
|
2.7%
|
Combo Locations
|
6,355
|
2,846
|
3,509
|
123.3%
|
Cheeseburger in
Paradise
|
4,254
|
7,490
|
(3,236)
|
(43.2%)
|
Koo Koo Roo
(1)
|
—
|
245
|
(245)
|
(100.0%)
|
Total Restaurant
Sales
|
$
88,788
|
$
90,010
|
$
(1,222)
|
(1.4)%
|
(1)
|
One location closed in the fourth quarter fiscal 2014
that has since re-opened as a Fuddruckers
restaurant
|
- Restaurant sales decreased $1.2 million to $88.8
million in the third quarter compared to $90.0 million in the third quarter last
year.
- Sales decreased $1.9
million at Luby's Cafeterias to $54.0
million. The decrease in sales at Luby's Cafeterias resulted
from a 1.0% decrease in same-store sales and the absence in sales
from three closed Luby's Cafeterias. The 1.0% decrease in
same-store Luby's Cafeteria sales resulted from a 2.7% decrease in
guest traffic, due in part to adverse weather, offset by a 1.7%
increase in average spend per guest.
- Sales increased $0.6
million at our Fuddruckers restaurants. The sales increase
at Fuddruckers restaurants resulted from a 0.2% increase in
same-store sales and the incremental sales contribution from five
new Fuddruckers restaurants (including two locations that were
converted from Cheeseburger in Paradise restaurants), partially
offset by the absence of sales from four closed Fuddruckers
restaurants. The 0.2% increase in same-store
sales at Fuddruckers restaurants resulted from a 1.5% increase in
average spend per guest, offset by a 1.3% decrease in guest
traffic.
- Sales increased $3.5
million at our Combo locations due to the addition of three
new Combo locations, offset by a 3.7% decrease in sales at our
first Combo location (included in our same-store grouping) due in
part to adverse weather. The Combo locations together represented
7.2% of our total restaurant sales in the third quarter compared to
3.2% of our total restaurant sales in the third quarter fiscal
2014.
- Sales declined $3.2
million at our Cheeseburger in Paradise restaurants due to
locations closed for future conversions.
Operating restaurants decreased from 19 restaurants in the third
quarter fiscal 2014 to eight restaurants in third quarter
2015. Sales declined 7.2% at the eight remaining
Cheeseburger in Paradise restaurants in operation during the third
quarter fiscal 2015. Partially offsetting the $3.2 million sales decline was $1.2 million in sales recaptured at the four
locations that were converted from Cheeseburger in Paradise to
Fuddruckers.
- Revenue from franchise operations was
$1.6 million in the third quarter
compared to $1.7 million in the third
quarter fiscal 2014. We ended the third quarter with 105 franchise
locations in our Fuddruckers franchise
network.
- Revenue from Culinary Contract Services
decreased to $3.6 million operating
at 21 locations in the third quarter compared to $4.5 million operating at 26 locations at the end
of the third quarter last year. Compared to the second quarter,
revenue declined $0.2 million as
operating locations decreased from 24 locations to 21
locations.
- Store level profit, defined as restaurant
sales less cost of food, payroll and related costs, other operating
expenses, and occupancy costs, was $13.1
million, or 14.8% of restaurant sales in the third
quarter compared to $13.5
million or 15.0% of restaurant sales in the third quarter
fiscal 2014. This decline was primarily related
to lower restaurant sales in the quarter along with higher payroll
and related costs, partially offset by new Combo location
profits. Store level profit is a
non-GAAP measure and reconciliation to income from continuing
operations is presented after the financial
statements.
- In the third quarter, income from continuing
operations was $2.5 million, or
$0.09 per diluted share compared to
$1.7 million, or $0.06 per diluted share, in the third quarter
fiscal 2014. Results in the third quarter of 2015 and 2014 included
various special items. Excluding special items,
income from continuing operations was $2.6
million, or $0.09 per diluted
share, in third quarter, compared to $1.3
million, or $0.05 per diluted
share, in third quarter fiscal 2014. The income
tax provision decreased $1.2 million
in the third quarter compared to the third quarter fiscal
2014. Income from continuing operations before
special items and before provision for income taxes was
approximately $3.0 million, or
$0.10 per diluted share in the third
quarter, consistent with the third quarter fiscal
2014.
Reconciliation of income from continuing
operations to income from continuing operations, before special
items and income taxes (1,2):
|
|
Q3 FY2015
|
|
|
Q3 FY2014
|
|
Item
|
|
Amount ($000s)
|
|
|
Per Share ($)
|
|
|
Amount ($000s)
|
|
|
Per Share ($)
|
|
Income from continuing operations
|
|
$
|
2,529
|
|
|
$
|
0.09
|
|
|
$
|
1,741
|
|
|
$
|
0.06
|
|
Asset charges; loss (gain) on disposal of
assets
|
|
|
(402)
|
|
|
|
(0.01)
|
|
|
|
(675)
|
|
|
|
(0.02)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from Cheeseburger in Paradise
(3)
|
|
|
192
|
|
|
|
0.00
|
|
|
|
216
|
|
|
|
0.01
|
|
Cheeseburger in Paradise locations closed for
conversion (4)
|
|
|
271
|
|
|
|
0.01
|
|
|
|
|
|
|
|
|
|
Income from continuing operations, before special
items
|
|
$
|
2,590
|
|
|
$
|
0.09
|
|
|
$
|
1,283
|
|
|
$
|
0.05
|
|
Addback Income Tax
Provision
|
|
|
395
|
|
|
|
0.01
|
|
|
|
1,621
|
|
|
|
0.05
|
|
Income from continuing operations, before special
items and taxes
|
|
$
|
2,985
|
|
|
$
|
0.10
|
|
|
$
|
2,904
|
|
|
$
|
0.10
|
|
|
|
(1)
|
Luby's uses
income from continuing operations, before special
items and income
taxes, 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 and income
taxes, 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 general and administrative, 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.
|
Third Quarter Operating Expense
Review
Cost of food as a percentage of restaurant
sales decreased to 28.4% in the third quarter compared to 28.6% in
the third quarter fiscal 2014. The cost of food
as a percentage of
restaurant
sales decreased
in part due to higher average menu prices,
partially offset by higher food commodity
prices.
In the third quarter, payroll and related
costs as a percentage of restaurant sales increased to 34.0%
compared to 33.3% in the third quarter fiscal 2014. The increase
reflects primarily the fixed
component of management labor costs, and to a lesser extent hourly
labor costs, over lower sales volumes. These
increases were partially offset by lower management and hourly
labor costs as a percentage of restaurant sales at our Combo
locations where the prior year included increased labor deployed
during the first several months of operations at newly opened Combo
locations.
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
decreased to
17.4% in the third quarter from 17.7% in the
third quarter fiscal
2014. The decrease was
attributable to lower utilities expenses, insurance costs, and
marketing and advertising costs as percentage of restaurant
sales. These expenses were
partially
offset by higher supplies 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 third quarter, consistent
with occupancy costs of $4.8 million
in the third quarter fiscal
2014.
Opening costs include labor, supplies,
occupancy, and other costs necessary to support the restaurant
through its opening period. Opening costs were
$0.4 million in the third quarter
compared to $0.3 million in
the third quarter fiscal
2014.
Included in the opening costs in the third
quarter
were the carrying costs
for five
locations that were previously operated as
Cheeseburger in Paradise restaurants
and were selected
for conversion to
Fuddruckers restaurants, one of which is schedule to re-open this
month.
Depreciation and amortization
expense
increased
1.6% to $4.8
million in the third quarter compared to
$4.7
million in the third quarter
fiscal
2014.
This
increase
was due
primarily to the addition of depreciation related
to new capital expenditures from new construction and restaurant
conversion activity offset by the reduction in depreciation related
to certain assets reaching the end of their depreciable
lives.
General and administrative expenses decreased
to $7.3 million in the
third
quarter
compared to $8.3
million in the third
quarter fiscal
2014.
General and administrative expenses included
decreased spending on outside professional fees and services,
office supplies and equipment, travel expenses, and lower overall
compensation expenses.
As a percentage of total revenues, general and
administrative expenses were 7.8% in the third quarter, a decrease
from 8.7% in the third quarter last
year.
Balance Sheet and Capital
Expenditures
We ended the third quarter with an outstanding
debt balance of $48.0 million, down
from $54.5 million at the end of the
second quarter. During the third quarter, our
capital expenditures were $5.4
million bringing the total for the first three quarters of
fiscal 2015 to $16.4 million, down
from $31.1 million for the first
three quarters of fiscal 2014. At the end of the third quarter, we
had $1.6 million in cash and
$174.1 million in total shareholders'
equity.
Restaurant
Counts:
|
|
|
|
|
|
|
|
|
|
|
|
FY2015 Year
Begin
|
|
FY15 YTD
Openings
|
|
FY15 YTD
Closings
|
|
FY2015 Q3
End
|
|
Luby's
Cafeterias(1)
|
|
94
|
|
1
|
|
(1)
|
|
94
|
|
Fuddruckers(1)
|
|
71
|
|
4
|
|
(3)
|
|
72
|
|
Cheeseburger in
Paradise
|
|
8
|
|
|
|
|
|
8
|
|
Other
restaurants(2)
|
|
1
|
|
|
|
|
|
1
|
|
Total
|
|
174
|
|
5
|
|
(4)
|
|
175
|
|
|
|
(1)
|
Includes 6 restaurants that are part of Combo
locations
|
(2)
|
Other restaurants include one Bob Luby's
Seafood
|
Fiscal 2015
Outlook
"We remain focused on improving store level
profit across all of our restaurant brands through dedicated
efforts to continually enhance our product offerings and provide
superior service to our guests. Our entire team is
focused
on
improving
sales and profitability
through efficient
operating cost
management,
store-level
performance
initiatives
and modest
price adjustments on selected menu items. Our
fiscal 2015 expectation 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 continue to
effectively manage
our capital expenditures in fiscal 2015
and we
expect to achieve our capital
expenditure
guidance
range for fiscal 2015
of between
$20 and $22
million. Over the
next 24
months, we also expect to sell excess real
estate and redeploy over $15 million
in estimated net proceeds into a new remodel program, new units,
and debt reduction. Our strategy to enhance growth through the
opening of new Combo
locations
remains on
track.
We
are actively looking for the next Combo site in
the Southern U.S. in new markets where we do not already operate
with our Luby's Cafeteria brand.
In our franchise pipeline, we
estimate
six new
Fuddruckers restaurant location openings in fiscal 2015, in both
domestic and international markets, including Italy, Poland, Panama, and Chile," concluded
Pappas.
Conference
Call
Luby's will host a conference call on
June 11, 2015 at 10:00 a.m. Central Time to discuss further its
third quarter fiscal 2015 results. To access the call live, dial
(412) 902-0030 and use the access code 13607675# 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
June 17, 2015 and may be accessed by
calling (201) 612-7415 and using the access code
13607675#. 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 175
restaurants under the brands Luby's Cafeteria, Fuddruckers and
Cheeseburger in Paradise and provides food service management
through its Luby's Culinary Contract Services business segment. The
company-owned restaurants include 94 Luby's Cafeterias, 72
Fuddruckers, 8 Cheeseburger in Paradise and one Bob Luby's Seafood Grill. The
Company is the franchisor for 105 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 21 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.
For additional information
contact:
Dennard-Lascar Associates
713-529-6600
Rick Black / Ken Dennard
Investor Relations
Luby's, Inc.
Consolidated Statements of Operations
(unaudited)
(In thousands except per share
data)
|
|
|
|
Quarter Ended
|
|
|
Three Quarters Ended
|
|
|
|
May 6,
2015
|
|
|
May 7,
2014
|
|
|
May 6,
2015
|
|
|
May 7,
2014
|
|
|
|
(12 weeks)
|
|
|
(12 weeks)
|
|
|
(36 weeks)
|
|
|
(36 weeks)
|
|
SALES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restaurant sales
|
|
$
|
88,788
|
|
|
$
|
90,010
|
|
|
$
|
254,832
|
|
|
$
|
252,891
|
|
Culinary contract services
|
|
|
3,624
|
|
|
|
4,534
|
|
|
|
11,993
|
|
|
|
12,783
|
|
Franchise revenue
|
|
|
1,578
|
|
|
|
1,684
|
|
|
|
4,764
|
|
|
|
4,744
|
|
Vending revenue
|
|
|
112
|
|
|
|
131
|
|
|
|
355
|
|
|
|
358
|
|
TOTAL SALES
|
|
|
94,102
|
|
|
|
96,359
|
|
|
|
271,944
|
|
|
|
270,776
|
|
COSTS AND EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of food
|
|
|
25,225
|
|
|
|
25,754
|
|
|
|
74,189
|
|
|
|
72,665
|
|
Payroll and related costs
|
|
|
30,216
|
|
|
|
29,971
|
|
|
|
89,372
|
|
|
|
87,384
|
|
Other operating expenses
|
|
|
15,442
|
|
|
|
15,967
|
|
|
|
47,144
|
|
|
|
46,511
|
|
Occupancy costs
|
|
|
4,759
|
|
|
|
4,845
|
|
|
|
14,167
|
|
|
|
14,374
|
|
Opening costs
|
|
|
427
|
|
|
|
334
|
|
|
|
2,035
|
|
|
|
1,365
|
|
Cost of culinary contract services
|
|
|
3,087
|
|
|
|
3,974
|
|
|
|
10,369
|
|
|
|
11,142
|
|
Depreciation and amortization
|
|
|
4,750
|
|
|
|
4,674
|
|
|
|
14,580
|
|
|
|
13,466
|
|
General and administrative expenses
|
|
|
7,312
|
|
|
|
8,342
|
|
|
|
23,088
|
|
|
|
24,526
|
|
Provision for asset impairments,
net
|
|
|
—
|
|
|
|
—
|
|
|
|
218
|
|
|
|
1,539
|
|
Net gain on disposition of property and
equipment
|
|
|
(609)
|
|
|
|
(1,023)
|
|
|
|
(1,696)
|
|
|
|
(956)
|
|
Total costs and expenses
|
|
|
90,609
|
|
|
|
92,838
|
|
|
|
273,466
|
|
|
|
272,016
|
|
INCOME (LOSS) FROM OPERATIONS
|
|
|
3,493
|
|
|
|
3,521
|
|
|
|
(1,522)
|
|
|
|
(1,240)
|
|
Interest income
|
|
|
1
|
|
|
|
1
|
|
|
|
3
|
|
|
|
4
|
|
Interest expense
|
|
|
(599)
|
|
|
|
(410)
|
|
|
|
(1,624)
|
|
|
|
(955)
|
|
Other income, net
|
|
|
29
|
|
|
|
250
|
|
|
|
301
|
|
|
|
806
|
|
Income (loss) before income taxes and discontinued
operations
|
|
|
2,924
|
|
|
|
3,362
|
|
|
|
(2,842)
|
|
|
|
(1,385)
|
|
Provision (benefit) for income
taxes
|
|
|
395
|
|
|
|
1,621
|
|
|
|
(1,326)
|
|
|
|
(853)
|
|
Income (loss) from continuing
operations
|
|
|
2,529
|
|
|
|
1,741
|
|
|
|
(1,516)
|
|
|
|
(532)
|
|
Loss from discontinued operations, net of income
taxes
|
|
|
(176)
|
|
|
|
(12)
|
|
|
|
(509)
|
|
|
|
(1,468)
|
|
NET INCOME (LOSS)
|
|
$
|
2,353
|
|
|
$
|
1,729
|
|
|
$
|
(2,025)
|
|
|
$
|
(2,000)
|
|
Income (loss) per share from continuing
operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.09
|
|
|
$
|
0.06
|
|
|
$
|
(0.05)
|
|
|
$
|
(0.02)
|
|
Assuming dilution
|
|
|
0.09
|
|
|
|
0.06
|
|
|
|
(0.05)
|
|
|
|
(0.02)
|
|
Loss per share from discontinued
operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.01)
|
|
|
$
|
—
|
|
|
$
|
(0.02)
|
|
|
$
|
(0.05)
|
|
Assuming dilution
|
|
|
(0.01)
|
|
|
|
—
|
|
|
|
(0.02)
|
|
|
|
(0.05)
|
|
Net income (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.08
|
|
|
$
|
0.06
|
|
|
$
|
(0.07)
|
|
|
$
|
(0.07)
|
|
Assuming dilution
|
|
|
0.08
|
|
|
|
0.06
|
|
|
|
(0.07)
|
|
|
|
(0.07)
|
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
29,009
|
|
|
|
28,791
|
|
|
|
28,940
|
|
|
|
28,777
|
|
Assuming dilution
|
|
|
29,111
|
|
|
|
29,476
|
|
|
|
28,940
|
|
|
|
28,777
|
|
The accompanying notes are an integral part of these
Consolidated Financial Statements.
The following table contains information derived
from Luby's Consolidated Statements of
Operations expressed as a percentage of total
sales, or restaurant sales,
applicable. Percentages may not add
due to rounding.
|
|
Quarter Ended
|
|
Three Quarters Ended
|
|
|
|
May 6,
|
|
May 7,
|
|
May 6,
|
|
May 7,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
(12 weeks)
|
|
(12 weeks)
|
|
(36 weeks)
|
|
(36 weeks)
|
|
|
|
|
|
Restaurant sales
|
|
|
94.4
|
%
|
|
93.4
|
%
|
|
93.7
|
%
|
|
93.4
|
%
|
Culinary contract services
|
|
|
3.9
|
%
|
|
4.7
|
%
|
|
4.4
|
%
|
|
4.7
|
%
|
Franchise revenue
|
|
|
1.7
|
%
|
|
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
|
|
|
28.4
|
%
|
|
28.6
|
%
|
|
29.1
|
%
|
|
28.7
|
%
|
Payroll and related costs
|
|
|
34.0
|
%
|
|
33.3
|
%
|
|
35.1
|
%
|
|
34.6
|
%
|
Other operating expenses
|
|
|
17.4
|
%
|
|
17.7
|
%
|
|
18.5
|
%
|
|
18.4
|
%
|
Occupancy
|
|
|
5.4
|
%
|
|
5.4
|
%
|
|
5.6
|
%
|
|
5.7
|
%
|
Store level profit
|
|
|
14.8
|
%
|
|
15.0
|
%
|
|
11.8
|
%
|
|
12.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(As a percentage of total
sales)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative expenses
|
|
|
7.8
|
%
|
|
8.7
|
%
|
|
8.5
|
%
|
|
9.1
|
%
|
INCOME (LOSS) FROM OPERATIONS
|
|
|
3.7
|
%
|
|
3.7
|
%
|
|
(0.6)%
|
|
|
(0.5)%
|
|
Luby's, Inc.
Consolidated Balance Sheets
(In thousands, except per share
data)
|
|
|
|
May 6,
2015
|
|
|
August 27,
2014
|
|
|
|
(Unaudited)
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current Assets:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
1,575
|
|
|
$
|
2,788
|
|
Trade accounts and other receivables,
net
|
|
|
4,220
|
|
|
|
4,112
|
|
Food and supply inventories
|
|
|
4,422
|
|
|
|
5,556
|
|
Prepaid expenses
|
|
|
4,964
|
|
|
|
2,815
|
|
Assets related to discontinued
operations
|
|
|
26
|
|
|
|
52
|
|
Deferred income taxes
|
|
|
605
|
|
|
|
587
|
|
Total current
assets
|
|
|
15,812
|
|
|
|
15,910
|
|
Property held for sale
|
|
|
6,261
|
|
|
|
991
|
|
Assets related to discontinued
operations
|
|
|
4,725
|
|
|
|
4,204
|
|
Property and equipment, net
|
|
|
205,497
|
|
|
|
213,492
|
|
Intangible assets, net
|
|
|
23,014
|
|
|
|
24,014
|
|
Goodwill
|
|
|
1,643
|
|
|
|
1,681
|
|
Deferred income taxes
|
|
|
13,254
|
|
|
|
11,294
|
|
Other assets
|
|
|
3,764
|
|
|
|
3,849
|
|
Total assets
|
|
$
|
273,970
|
|
|
$
|
275,435
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
Current Liabilities:
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
19,183
|
|
|
$
|
26,269
|
|
Liabilities related to discontinued
operations
|
|
|
469
|
|
|
|
590
|
|
Accrued expenses and other
liabilities
|
|
|
24,639
|
|
|
|
23,107
|
|
Total current
liabilities
|
|
|
44,291
|
|
|
|
49,966
|
|
Credit facility debt
|
|
|
48,000
|
|
|
|
42,000
|
|
Liabilities related to discontinued
operations
|
|
|
62
|
|
|
|
278
|
|
Other liabilities
|
|
|
7,517
|
|
|
|
8,167
|
|
Total liabilities
|
|
|
99,870
|
|
|
|
100,411
|
|
Commitments and Contingencies
|
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Common stock, $0.32 par value; 100,000,000 shares
authorized; shares issued were 29,097,902 and 28,949,523,
respectively; shares outstanding were 28,597,902 and 28,449,523,
respectively
|
|
|
9,311
|
|
|
|
9,264
|
|
Paid-in capital
|
|
|
28,410
|
|
|
|
27,356
|
|
Retained earnings
|
|
|
141,154
|
|
|
|
143,179
|
|
Less cost of treasury stock, 500,000
shares
|
|
|
(4,775)
|
|
|
|
(4,775)
|
|
Total shareholders' equity
|
|
|
174,100
|
|
|
|
175,024
|
|
Total liabilities and shareholders'
equity
|
|
$
|
273,970
|
|
|
$
|
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)
|
|
|
|
Three Quarters Ended
|
|
|
|
May 6,
2015
|
|
|
May 7,
2014
|
|
|
|
(36 weeks)
|
|
|
(36 weeks)
|
|
CASH FLOWS FROM OPERATING
ACTIVITIES:
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(2,025)
|
|
|
$
|
(2,000)
|
|
Adjustments to reconcile net income to net cash
provided by operating activities:
|
|
|
|
|
|
|
|
|
Provision for asset impairments, net of
gains/losses on property sales
|
|
|
(1,386)
|
|
|
|
1,352
|
|
Depreciation and
amortization
|
|
|
14,624
|
|
|
|
13,604
|
|
Amortization of debt issuance
cost
|
|
|
127
|
|
|
|
78
|
|
Non-cash compensation
expense
|
|
|
862
|
|
|
|
254
|
|
Share-based compensation
expense
|
|
|
240
|
|
|
|
573
|
|
Increase in tax benefits from share-based
compensation
|
|
|
—
|
|
|
|
(53)
|
|
Deferred tax benefit
|
|
|
(1,978)
|
|
|
|
(1,889)
|
|
Cash provided by operating activities before changes
in operating assets and liabilities
|
|
|
10,464
|
|
|
|
11,919
|
|
Changes in operating assets and liabilities,
net of business acquisition:
|
|
|
|
|
|
|
|
|
Decrease (increase) in trade accounts and
other receivables
|
|
|
(108)
|
|
|
|
112
|
|
Decrease (increase) in food and supply
inventories
|
|
|
1,135
|
|
|
|
(466)
|
|
Decrease (increase) in prepaid expenses and
other assets
|
|
|
(1,979)
|
|
|
|
840
|
|
Decrease in accounts payable, accrued expenses
and other liabilities
|
|
|
(5,350)
|
|
|
|
(617)
|
|
Net cash provided by operating
activities
|
|
|
4,162
|
|
|
|
11,788
|
|
CASH FLOWS FROM INVESTING
ACTIVITIES:
|
|
|
|
|
|
|
|
|
Proceeds from disposal of assets and property
held for sale
|
|
|
5,142
|
|
|
|
2,713
|
|
Purchases of property and
equipment
|
|
|
(16,429)
|
|
|
|
(31,124)
|
|
Decrease in note receivable
|
|
|
50
|
|
|
|
23
|
|
Net cash used in investing
activities
|
|
|
(11,237)
|
|
|
|
(28,388)
|
|
CASH FLOWS FROM FINANCING
ACTIVITIES:
|
|
|
|
|
|
|
|
|
Credit facility borrowings
|
|
|
80,100
|
|
|
|
77,800
|
|
Credit facility repayments
|
|
|
(74,100)
|
|
|
|
(61,000)
|
|
Debt issue cost
|
|
|
(253)
|
|
|
|
—
|
|
Proceed from exercise of stock
options
|
|
|
115
|
|
|
|
32
|
|
Tax benefit on stock options
|
|
|
—
|
|
|
|
53
|
|
Net cash provided by financing
activities
|
|
|
5,862
|
|
|
|
16,885
|
|
Net increase (decrease) in cash and cash
equivalents
|
|
|
(1,213)
|
|
|
|
285
|
|
Cash and cash equivalents at beginning of
period
|
|
|
2,788
|
|
|
|
1,528
|
|
Cash and cash equivalents at end of
period
|
|
$
|
1,575
|
|
|
$
|
1,813
|
|
Cash paid for:
|
|
|
|
|
|
|
|
|
Income taxes
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest
|
|
|
1,505
|
|
|
|
834
|
|
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, other 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
|
Three Quarters Ended
|
|
|
May 6,
2015
|
May 7,
2014
|
May 6,
2015
|
May 7,
2014
|
|
|
(12 weeks)
|
(12 weeks)
|
(36 weeks)
|
(36 weeks)
|
|
|
(In thousands)
|
|
|
|
|
|
|
|
Store level profit
|
$
13,146
|
$
13,473
|
$ 29,960
|
$ 31,957
|
|
|
|
|
|
|
|
|
Plus:
|
|
|
|
|
|
Sales from vending
revenue
|
112
|
131
|
355
|
358
|
|
Sales from culinary contract
services
|
3,624
|
4,534
|
11,993
|
12,783
|
|
Sales from franchise
revenue
|
1,578
|
1,684
|
4,764
|
4,744
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
Opening costs
|
427
|
334
|
2,035
|
1,365
|
|
Cost of culinary contract
services
|
3,087
|
3,974
|
10,369
|
11,142
|
|
Depreciation and
amortization
|
4,750
|
4,674
|
14,580
|
13,466
|
|
General and administrative
expenses
|
7,312
|
8,342
|
23,088
|
24,526
|
|
Provision for asset impairments,
net
|
—
|
—
|
218
|
1,539
|
|
Net gain on disposition of
property and equipment
|
(609)
|
(1,023)
|
(1,696)
|
(956)
|
|
Interest income
|
(1)
|
(1)
|
(3)
|
(4)
|
|
Interest expense
|
599
|
410
|
1,624
|
955
|
|
Other income,
net
|
(29)
|
(250)
|
(301)
|
(806)
|
|
Provision (benefit) for income
taxes
|
395
|
1,621
|
(1,326)
|
(853)
|
|
|
|
|
|
|
|
Income (loss) from continuing operations
|
$
2,529
|
$
1,741
|
$
(1,516)
|
$
(532)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
Adjusted EBITDA is defined as income (loss) from continuing
operations before interest, provision (benefit) for income taxes
and depreciation and amortization and excluding net gain (loss) on
disposing of property and equipment, provision for asset
impairments, non-cash compensation expense, and other income
(loss).
Adjusted EBITDA is intended as a supplemental measure of our
performance that is not required by, or presented in accordance
with GAAP. We believe Adjusted EBITDA provides useful information
to management and investors in in valuing the Company and
evaluating ongoing operating results and trends and in comparing
our results to other competitors. Our management uses Adjusted
EBITDA in evaluating management's performance when determining
incentive compensation.
Adjusted EBITDA, as defined, may not be comparable to other
similarly titled measures as computed by other companies. These
measures should be considered supplemental and not a substitute or
superior to other GAAP performance measures.
|
|
Quarter
Ended
|
|
Three Quarters
Ended
|
|
|
May 6,
|
|
May 7,
|
|
May 6,
|
|
May 7,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
(12
weeks)
|
|
(12
weeks)
|
|
(36
weeks)
|
|
(36
weeks)
|
|
|
|
Income (loss) from
continuing operations
|
|
$
|
2,529
|
|
$
|
1,741
|
|
$
|
(1,516)
|
|
|
(532)
|
Provision (benefit) for
income taxes
|
|
|
395
|
|
|
1,621
|
|
|
(1,326)
|
|
|
(853)
|
Depreciation and
amortization
|
|
|
4,750
|
|
|
4,674
|
|
|
14,580
|
|
|
13,466
|
Interest expense,
net
|
|
|
598
|
|
|
409
|
|
|
1,621
|
|
|
951
|
Net gain on disposition of
assets
|
|
|
(609)
|
|
|
(1,023)
|
|
|
(1,696)
|
|
|
(956)
|
Provision for asset
impairments
|
|
|
—
|
|
|
—
|
|
|
218
|
|
|
1,539
|
Non-cash compensation
expense
|
|
|
241
|
|
|
147
|
|
|
542
|
|
|
476
|
Less: Other income,
net
|
|
|
(29)
|
|
|
(250)
|
|
|
(301)
|
|
|
(806)
|
Adjusted
EBITDA
|
|
$
|
7,875
|
|
$
|
7,309
|
|
$
|
12,122
|
|
$
|
13,285
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/lubys-reports-third-quarter-fiscal-2015-results-300097336.html
SOURCE Luby's, Inc.