HOUSTON, April 13, 2016 /PRNewswire/ -- Luby's, Inc.
(NYSE: LUB) ("Luby's") today announced unaudited financial results
for its twelve-week second quarter fiscal 2016, which ended on
March 9, 2016. Certain comparisons
for second quarter fiscal 2016 are relative to the prior-year
twelve-week period that ended March 11,
2015, instead of the second quarter fiscal 2015, which ended
February 11, 2015. Comparisons
in this press release for the second quarter fiscal year 2016 are
referred to as "second quarter."
Second Quarter Highlights
- Same-store sales increased 2.2%
- Luby's Cafeterias same-store sales increased 3.1%
- Fuddruckers same-store sales were level year-over-year
- Cheeseburger in Paradise same-store sales increased 4.2%
- Revenue grew in each business segment: Company-owned
restaurants, Culinary Contract Services, and Franchise
operations
- Store level profit increased to 14.8%, as a percent of
restaurant sales, from 13.5% during the comparable 12 weeks last
year
- Adjusted EBITDA increased to $4.7
million compared to $3.3
million during the comparable 12 weeks last year
Chris Pappas, President and CEO,
commented, "Solid same-store sales growth coupled with expanded
store-level profit margins, as well as revenue growth in our
Culinary Contract Services and Franchise operations, drove Adjusted
EBITDA improvement in the second quarter. In addition, year to date
Adjusted EBITDA was $10.4 million
compared to $6.6 million last year,
an increase of 57%. Our team continues to execute on our
strategy to enhance store level performance across all of our
brands with defined processes throughout the organization. We
remain focused on the key drivers of our businesses to achieve
operational excellence at our brands and to efficiently manage
costs to grow profitability and enhance shareholder value."
Same-Store Sales
Year-Over-Year Comparison
|
|
|
Quarter
Ended
|
Two
Quarters
Ended
|
|
December 16,
2015
|
March 9,
2016
|
March 9,
2016
|
|
Q1
2016(3)
|
Q2
2016(3)
|
YTD
Q2
2016(3)
|
|
(16 weeks vs 16
weeks)
|
(12 weeks vs 12
weeks)
|
(28 weeks vs 28
weeks)
|
Luby's
Cafeterias
|
1.2%
|
3.1%
|
2.0%
|
Fuddruckers
Restaurants
|
1.3%
|
0.0%
|
0.7%
|
Combo Locations
(1)
|
(1.3)%
|
0.1%
|
(0.6)%
|
Cheeseburger in
Paradise
|
5.5%
|
4.2%
|
5.0%
|
Total same-store
sales (2)
|
1.4%
|
2.2%
|
1.8%
|
|
|
(1)
|
Combo locations
consist of a side-by-side Luby's Cafeteria and Fuddruckers
Restaurant at one property location.
|
(2)
|
Note: Luby's includes
a restaurant's sales results into the same-store sales calculation
in the quarter after that store has been open for six complete
consecutive quarters. In the second quarter, there were 88
Luby's Cafeterias, 59 Fuddruckers Restaurants, 3 Combo locations,
and 8 Cheeseburger in Paradise locations that met the definition of
same-stores.
|
(3)
|
Q1 2016, Q2 2016, and
YTDQ2 2016 same-store sales reflect the change in restaurant sales
for the locations included in the same-store grouping for each
of the comparable periods.
|
Second Quarter
Restaurant Sales:
|
($
thousands)
|
|
|
Quarter
Ended
|
Comparable
Period
|
Quarter Ended
March 9, 2016
vs Comparable Period
|
Restaurant
Brand
|
March 9,
2016
|
February 11,
2015
|
March 11,
2015
|
Change
($000s)
|
Change
(%)
|
|
(12 weeks)
|
(12 weeks)
|
(12 weeks)
|
(12 weeks vs 12
weeks)
|
Luby's
Cafeterias
|
$
|
52,915
|
|
$
|
54,574
|
|
$
|
52,144
|
|
$
|
771
|
|
1.5%
|
Fuddruckers
|
24,567
|
|
22,820
|
|
23,636
|
|
931
|
|
3.9%
|
Combo
locations
|
5,295
|
|
4,937
|
|
5,289
|
|
6
|
|
0.1%
|
Cheeseburger in
Paradise
|
3,537
|
|
3,155
|
|
3,393
|
|
144
|
|
4.2%
|
Restaurant
Sales
|
$
|
86,314
|
|
$
|
85,486
|
|
$
|
84,462
|
|
$
|
1,852
|
|
2.2%
|
- Restaurant sales in the second quarter increased to
$86.3 million, an increase of 2.2%
versus the comparable 12 weeks of fiscal 2015.
- Luby's Cafeterias sales increased $0.8
million versus the comparable 12 weeks of fiscal 2015, due
to a 3.1% increase in Luby's same-store sales offset by the closure
of three locations. The 3.1% increase was the result of a 4.7%
increase in guest traffic offset by a 1.5% decrease in average
spend per guest.
- Fuddruckers sales increased $0.9
million versus the comparable 12 weeks of fiscal 2015, due
to a net increase of five operating Fuddruckers restaurants.
Fuddruckers same-store sales were unchanged year-over-year due to a
3.0% increase in average spend offset by a similar 3.0% decrease in
guest traffic.
- Combo location sales increased marginally and represented 6.1%
of total restaurant sales in the first quarter. The addition of our
sixth Combo location was offset by a net decrease in sales at other
Combo locations.
- Cheeseburger in Paradise sales increased 4.2%, with all eight
Cheeseburger in Paradise locations in operation included in our
same-store grouping.
- Store level profit, defined as restaurant sales plus vending
revenue less cost of food, payroll and related costs, other
operating expenses, and occupancy costs, was $12.7 million, or 14.8% of restaurant sales, in
the second quarter compared to $11.4
million, or 13.5% of restaurant sales, during the comparable
12 weeks of fiscal 2015. Lower overall cost of food, payroll and
related costs, and operating expenses led to this increase in
profitability. Store level profit is a non-GAAP measure, and
reconciliation to income from continuing operations is presented
after the financial statements.
- Culinary Contract Services revenues increased to $3.9 million with 28 operating locations in the
second quarter compared to $3.8
million with 24 operating locations during the comparable 12
weeks of fiscal 2015. Culinary profit was 10.2% of Culinary
Contract Services sales in the second quarter and 10.6% in the
comparable 12-week period of fiscal 2015. Both quarters exceeded
our profit targets for the business segment.
- Franchise revenue increased 8.4% versus the comparable 12-week
period of fiscal 2015. In the second quarter, one international
franchisee opened a location in Panama.
- Income from continuing operations was a loss of $0.6 million, or a loss of $0.02 per diluted share, compared to a loss of
$1.3 million, or a loss of
$0.04 per diluted share, in the
second quarter fiscal 2015. Excluding special items, loss from
continuing operations was $0.9
million, or a loss of $0.03
per diluted share, in the second quarter compared to a loss of
$2.1 million, or a loss of
$0.07 per diluted share, in the
second quarter fiscal 2015.
Reconciliation of
loss from continuing operations to loss from continuing operations,
before special items (1,2):
|
|
|
Q2
FY2016
|
Q2
FY2015
|
|
Item
|
Amount
($000s)
|
Per Share
($)
|
Amount
($000s)
|
Per Share
($)
|
|
Loss from continuing
operations
|
|
$
|
(582)
|
|
|
$
|
(0.02)
|
|
|
$
|
(1,285)
|
|
|
$
|
(0.04)
|
|
|
Less: Gain on
asset disposals, net of impairments
|
|
(343)
|
|
|
(0.01)
|
|
|
(765)
|
|
|
(0.03)
|
|
|
Loss from continuing
operations, before special items
|
|
$
|
(925)
|
|
|
$
|
(0.03)
|
|
|
$
|
(2,050)
|
|
|
$
|
(0.07)
|
|
|
|
|
(1)
|
We use income (loss)
from continuing operations, before special items, in analyzing
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 loss from continuing
operations, before special items, to loss from continuing
operations, the nearest GAAP measure in context.
|
(2)
|
Per share amounts are
per diluted share after tax.
|
Balance Sheet and Capital Expenditures
We ended the second quarter with a debt balance outstanding of
$37.0 million, down from $37.5 million at the end of fiscal
2015. During the second quarter, our capital expenditures
were $5.2 million, compared to
$7.4 million in the second quarter
fiscal 2015. At the end of the second quarter, we had
$1.4 million in cash and $173.1 million in total shareholders' equity.
Fiscal Year to Date:
- Restaurant sales were $199.9
million during the first two fiscal quarters (28 weeks) of
2016, a $4.2 million increase from
the comparable 28 weeks of fiscal 2015
- Same store sales increased 1.8% during the first two fiscal
quarters of 2016 (28 weeks) from the comparable 28 weeks of fiscal
2015
- Store level profit was $29.5
million, or 14.8% of restaurant sales, in the first two
quarters (28 weeks) of fiscal 2016, a $3.9
million increase from $25.6
million, or 13.1% of restaurant sales, in the comparable 28
weeks of fiscal 2015
Restaurant
Counts:
|
|
|
August 26,
2015
|
|
FY16 YTD
Q2 Openings
|
|
FY16 YTD
Q2 Closings
|
|
March 9,
2016
|
Luby's
Cafeterias(1)
|
93
|
|
|
—
|
|
|
(1)
|
|
|
92
|
|
Fuddruckers
Restaurants(1)
|
75
|
|
|
3
|
|
|
(1)
|
|
|
77
|
|
Cheeseburger in
Paradise
|
8
|
|
|
—
|
|
|
—
|
|
|
8
|
|
Other
restaurants(2)
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
Total
|
177
|
|
|
3
|
|
|
(2)
|
|
|
178
|
|
|
|
(1)
|
Includes 6
restaurants that are part of Combo locations
|
(2)
|
Other restaurants
include one Bob Luby's Seafood
|
Conference Call
Luby's will host a conference call on April 14, 2016 at 10:00
a.m. Central Time to discuss further its second quarter
fiscal 2016 results. To access the call live, dial (412) 902-0030
and use the access code 13633655# 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 April 21,
2016 and may be accessed by calling (201) 612-7415 and using
the access code 13633655#. 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 178 restaurants nationally: 92
Luby's Cafeterias, 77 Fuddruckers, 8 Cheeseburger in Paradise and
one Bob Luby's Seafood Grill. The
Company is the franchisor for 112 Fuddruckers franchise locations
across the United States
(including Puerto Rico),
Canada, Mexico, Italy, the Dominican
Republic, Panama,
Chile, and Colombia. Additionally, a licensee operates 35
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 Middle East
restaurants. Luby's Culinary Contract Services provides food
service management to 28 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
|
|
Two Quarters
Ended
|
|
March 9,
2016
|
|
February 11,
2015
|
|
March 9,
2016
|
|
February 11,
2015
|
|
(12
weeks)
|
|
(12
weeks)
|
|
(28
weeks)
|
|
(24
weeks)
|
SALES:
|
|
|
|
|
|
|
|
Restaurant
sales
|
$
|
86,314
|
|
|
$
|
85,486
|
|
|
$
|
199,861
|
|
|
$
|
166,043
|
|
Culinary contract
services
|
3,918
|
|
|
3,771
|
|
|
8,833
|
|
|
8,369
|
|
Franchise
revenue
|
1,700
|
|
|
1,605
|
|
|
3,825
|
|
|
3,186
|
|
Vending
revenue
|
137
|
|
|
120
|
|
|
295
|
|
|
244
|
|
TOTAL
SALES
|
92,069
|
|
|
90,982
|
|
|
212,814
|
|
|
177,842
|
|
COSTS AND
EXPENSES:
|
|
|
|
|
|
|
|
Cost of
food
|
24,600
|
|
|
25,468
|
|
|
57,034
|
|
|
48,951
|
|
Payroll and related
costs
|
29,834
|
|
|
29,519
|
|
|
69,258
|
|
|
58,205
|
|
Other operating
expenses
|
13,736
|
|
|
14,194
|
|
|
32,157
|
|
|
28,413
|
|
Occupancy
costs
|
5,535
|
|
|
5,030
|
|
|
12,177
|
|
|
9,972
|
|
Opening
costs
|
174
|
|
|
670
|
|
|
571
|
|
|
1,595
|
|
Cost of culinary
contract services
|
3,520
|
|
|
3,478
|
|
|
7,942
|
|
|
7,577
|
|
Cost of franchise
operations
|
428
|
|
|
354
|
|
|
1,039
|
|
|
738
|
|
Depreciation and
amortization
|
5,220
|
|
|
4,781
|
|
|
12,235
|
|
|
9,849
|
|
Selling, general and
administrative expenses
|
9,843
|
|
|
9,381
|
|
|
23,086
|
|
|
18,532
|
|
Provision for asset
impairments
|
37
|
|
|
218
|
|
|
37
|
|
|
218
|
|
Net gain on
disposition of property and equipment
|
(556)
|
|
|
(1,377)
|
|
|
(835)
|
|
|
(1,087)
|
|
Total costs and
expenses
|
92,371
|
|
|
91,716
|
|
|
214,701
|
|
|
182,963
|
|
LOSS FROM
OPERATIONS
|
(302)
|
|
|
(734)
|
|
|
(1,887)
|
|
|
(5,121)
|
|
Interest
income
|
1
|
|
|
1
|
|
|
2
|
|
|
2
|
|
Interest
expense
|
(495)
|
|
|
(569)
|
|
|
(1,191)
|
|
|
(1,025)
|
|
Other income
(expense), net
|
29
|
|
|
78
|
|
|
(90)
|
|
|
258
|
|
Loss before income
taxes and discontinued operations
|
(767)
|
|
|
(1,224)
|
|
|
(3,166)
|
|
|
(5,886)
|
|
Provision (benefit)
for income taxes
|
(185)
|
|
|
61
|
|
|
(845)
|
|
|
(1,721)
|
|
Loss from continuing
operations
|
(582)
|
|
|
(1,285)
|
|
|
(2,321)
|
|
|
(4,165)
|
|
Loss from
discontinued operations, net of income taxes
|
(17)
|
|
|
(74)
|
|
|
(89)
|
|
|
(213)
|
|
NET LOSS
|
$
|
(599)
|
|
|
$
|
(1,359)
|
|
|
$
|
(2,410)
|
|
|
$
|
(4,378)
|
|
Loss per share from
continuing operations:
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.02)
|
|
|
$
|
(0.04)
|
|
|
$
|
(0.08)
|
|
|
$
|
(0.14)
|
|
Assuming
dilution
|
$
|
(0.02)
|
|
|
$
|
(0.04)
|
|
|
$
|
(0.08)
|
|
|
$
|
(0.14)
|
|
Loss per share from
discontinued operations:
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.00)
|
|
|
$
|
(0.01)
|
|
|
$
|
(0.00)
|
|
|
$
|
(0.01)
|
|
Assuming
dilution
|
$
|
(0.00)
|
|
|
$
|
(0.01)
|
|
|
$
|
(0.00)
|
|
|
$
|
(0.01)
|
|
Net loss per
share:
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.02)
|
|
|
$
|
(0.05)
|
|
|
$
|
(0.08)
|
|
|
$
|
(0.15)
|
|
Assuming
dilution
|
$
|
(0.02)
|
|
|
$
|
(0.05)
|
|
|
$
|
(0.08)
|
|
|
$
|
(0.15)
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
29,247
|
|
|
28,921
|
|
|
29,182
|
|
|
28,906
|
|
Assuming
dilution
|
29,247
|
|
|
28,921
|
|
|
29,182
|
|
|
28,906
|
|
The following table contains information derived from the
Company's Consolidated Statements of Operations expressed as a
percentage of sales. Percentages may not total due to
rounding.
|
Quarter
Ended
|
Comparable
Period
|
|
Two Quarters
Ended
|
Comparable
Period
|
|
March 9,
2016
|
February 11,
2015
|
March 11,
2015
|
|
March 9,
2016
|
February 11,
2015
|
March 11,
2015
|
|
(12
weeks)
|
(12
weeks)
|
(12
weeks)
|
|
(28
weeks)
|
(24
weeks)
|
(28
weeks)
|
Restaurant
sales
|
93.7
|
%
|
94.0
|
%
|
93.9
|
%
|
|
93.9
|
%
|
93.4
|
%
|
93.5
|
%
|
Culinary contract
services
|
4.3
|
%
|
4.1
|
%
|
4.2
|
%
|
|
4.2
|
%
|
4.7
|
%
|
4.6
|
%
|
Franchise
revenue
|
1.8
|
%
|
1.8
|
%
|
1.7
|
%
|
|
1.8
|
%
|
1.8
|
%
|
1.8
|
%
|
Vending
revenue
|
0.1
|
%
|
0.1
|
%
|
0.1
|
%
|
|
0.1
|
%
|
0.1
|
%
|
0.1
|
%
|
TOTAL
SALES
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
|
|
|
|
|
|
|
|
COSTS AND
EXPENSES:
|
|
|
|
|
|
|
|
(As a percentage
of restaurant sales)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
food
|
28.5
|
%
|
29.8
|
%
|
29.1
|
%
|
|
28.5
|
%
|
29.5
|
%
|
29.3
|
%
|
Payroll and related
costs
|
34.6
|
%
|
34.5
|
%
|
34.9
|
%
|
|
34.7
|
%
|
35.1
|
%
|
34.9
|
%
|
Other operating
expenses
|
15.9
|
%
|
16.6
|
%
|
16.8
|
%
|
|
16.1
|
%
|
17.1
|
%
|
16.9
|
%
|
Occupancy
costs
|
6.4
|
%
|
5.9
|
%
|
5.8
|
%
|
|
6.1
|
%
|
6.0
|
%
|
5.9
|
%
|
Vending
revenue
|
(0.2)
|
%
|
(0.1)
|
%
|
(0.1)
|
%
|
|
(0.1)
|
%
|
(0.1)
|
%
|
(0.1)
|
%
|
Store level
profit
|
14.8
|
%
|
13.3
|
%
|
13.5
|
%
|
|
14.8
|
%
|
12.5
|
%
|
13.1
|
%
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
10.7
|
%
|
10.3
|
%
|
10.2
|
%
|
|
10.8
|
%
|
10.4
|
%
|
10.2
|
%
|
LOSS FROM
OPERATIONS
|
(0.3)
|
%
|
(0.8)
|
%
|
(0.5)
|
%
|
|
(0.9)
|
%
|
(2.9)
|
%
|
(2.1)
|
%
|
Luby's,
Inc.
|
Consolidated
Balance Sheets
|
(In thousands,
except per share data)
|
|
|
March 9,
2016
|
|
August 26,
2015
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
Current
Assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
1,439
|
|
|
$
|
1,501
|
|
Trade accounts and
other receivables, net
|
5,389
|
|
|
5,175
|
|
Food and supply
inventories
|
4,784
|
|
|
4,483
|
|
Prepaid
expenses
|
2,914
|
|
|
3,402
|
|
Assets related to
discontinued operations
|
1
|
|
|
10
|
|
Deferred income
taxes
|
577
|
|
|
577
|
|
Total current
assets
|
15,104
|
|
|
15,148
|
|
Property held for
sale
|
3,054
|
|
|
4,536
|
|
Assets related to
discontinued operations
|
3,666
|
|
|
3,671
|
|
Property and
equipment, net
|
198,697
|
|
|
200,202
|
|
Intangible assets,
net
|
21,728
|
|
|
22,570
|
|
Goodwill
|
1,605
|
|
|
1,643
|
|
Deferred income
taxes
|
14,163
|
|
|
12,917
|
|
Other
assets
|
3,511
|
|
|
3,571
|
|
Total
assets
|
$
|
261,528
|
|
|
$
|
264,258
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Current
Liabilities:
|
|
|
|
Accounts
payable
|
$
|
19,089
|
|
|
$
|
20,173
|
|
Liabilities related
to discontinued operations
|
407
|
|
|
408
|
|
Accrued expenses and
other liabilities
|
24,398
|
|
|
23,967
|
|
Total current
liabilities
|
43,894
|
|
|
44,548
|
|
Credit facility
debt
|
37,000
|
|
|
37,500
|
|
Liabilities related
to discontinued operations
|
17
|
|
|
182
|
|
Other
liabilities
|
7,490
|
|
|
7,369
|
|
Total
liabilities
|
$
|
88,401
|
|
|
$
|
89,599
|
|
Commitments and
Contingencies
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
Common stock, $0.32
par value; 100,000,000 shares authorized; shares issued were
29,401,370 and 29,134,603, respectively; shares outstanding were
28,901,370 and 28,634,603, respectively
|
9,408
|
|
|
9,323
|
|
Paid-in
capital
|
29,799
|
|
|
29,006
|
|
Retained
earnings
|
138,695
|
|
|
141,105
|
|
Less cost of treasury
stock, 500,000 shares
|
(4,775)
|
|
|
(4,775)
|
|
Total
shareholders' equity
|
173,127
|
|
|
174,659
|
|
Total liabilities and
shareholders' equity
|
$
|
261,528
|
|
|
$
|
264,258
|
|
Luby's,
Inc.
|
Consolidated
Statements of Cash Flows (unaudited)
|
(In
thousands)
|
|
|
Two Quarters
Ended
|
|
March 9,
2016
|
|
February 11,
2015
|
|
(28
weeks)
|
|
(24
weeks)
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
Net loss
|
$
|
(2,410)
|
|
|
$
|
(4,378)
|
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
Net gain on
disposition of property and equipment
|
(798)
|
|
|
(869)
|
|
Depreciation and
amortization
|
12,250
|
|
|
9,860
|
|
Amortization of debt
issuance cost
|
202
|
|
|
76
|
|
Non-cash compensation
expense
|
75
|
|
|
422
|
|
Share-based
compensation expense
|
803
|
|
|
165
|
|
Other non-cash
compensation expense
|
159
|
|
|
—
|
|
Deferred tax
benefit
|
(1,247)
|
|
|
(2,128)
|
|
Cash provided by
operating activities before changes in operating assets and
liabilities
|
9,034
|
|
|
3,148
|
|
Changes in operating
assets and liabilities:
|
|
|
|
Increase in trade
accounts and other receivables
|
(214)
|
|
|
(1,205)
|
|
Decrease (Increase)
in food and supply inventories
|
(805)
|
|
|
405
|
|
Decrease (Increase)
in prepaid expenses and other assets
|
381
|
|
|
(221)
|
|
Decrease in accounts
payable, accrued expenses and other liabilities
|
(1,205)
|
|
|
(7,801)
|
|
Net cash provided by
(used in) operating activities
|
7,191
|
|
|
(5,674)
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
Proceeds from
disposal of assets and property held for sale
|
4,167
|
|
|
3,060
|
|
Decrease in notes
receivable
|
17
|
|
|
—
|
|
Purchases of property
and equipment
|
(10,970)
|
|
|
(10,988)
|
|
Net cash used in
investing activities
|
(6,786)
|
|
|
(7,928)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
Credit facility
borrowings
|
50,700
|
|
|
58,800
|
|
Credit facility
repayments
|
(51,200)
|
|
|
(46,300)
|
|
Debt issuance
costs
|
(42)
|
|
|
(68)
|
|
Proceeds received on
the exercise of employee stock options
|
75
|
|
|
3
|
|
Net cash provided by
(used in) financing activities
|
(467)
|
|
|
12,435
|
|
Net decrease in cash
and cash equivalents
|
(62)
|
|
|
(1,167)
|
|
Cash and cash
equivalents at beginning of period
|
1,501
|
|
|
2,788
|
|
Cash and cash
equivalents at end of period
|
$
|
1,439
|
|
|
$
|
1,621
|
|
Cash paid
for:
|
|
|
|
Income
taxes
|
$
|
—
|
|
|
$
|
—
|
|
Interest
|
951
|
|
|
969
|
|
Although store level profit, defined as restaurant sales plus
vending revenue, 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 loss from continuing
operations, a GAAP measure:
|
Quarter
Ended
|
Comparable
Period
|
|
March 9,
2016
|
February 11,
2015
|
March 11,
2015
|
|
(12
weeks)
|
(12
weeks)
|
(12
weeks)
|
|
(In
thousands)
|
Store level
profit
|
$
|
12,746
|
|
$
|
11,395
|
|
$
|
11,387
|
|
|
|
|
|
Plus:
|
|
|
|
Sales from culinary
contract services
|
3,918
|
|
3,771
|
|
3,808
|
|
Sales from franchise
revenue
|
1,700
|
|
1,605
|
|
1,568
|
|
|
|
|
|
Less:
|
|
|
|
Opening
costs
|
174
|
|
670
|
|
726
|
|
Cost of culinary
contract services
|
3,520
|
|
3,478
|
|
3,406
|
|
Cost of franchise
operations
|
428
|
|
354
|
|
342
|
|
Depreciation and
amortization
|
5,220
|
|
4,781
|
|
4,765
|
|
Selling, general and
administrative expenses
|
9,843
|
|
9,381
|
|
9,200
|
|
Provision for asset
impairments
|
37
|
|
218
|
|
218
|
|
Net gain on
disposition of property and equipment
|
(556)
|
|
(1,377)
|
|
(1,436)
|
|
Interest
income
|
(1)
|
|
(1)
|
|
(1)
|
|
Interest
expense
|
495
|
|
569
|
|
595
|
|
Other income
(expense), net
|
(29)
|
|
(78)
|
|
(50)
|
|
Provision (benefit)
for income taxes
|
$
|
(185)
|
|
$
|
61
|
|
$
|
58
|
|
Loss from continuing
operations
|
$
|
(582)
|
|
$
|
(1,285)
|
|
$
|
(1,060)
|
|
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
(expense).
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 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.
($ thousands)
|
|
Quarter
Ended
|
Comparable
Period
|
|
Two Quarters
Ended
|
Comparable
Period
|
|
|
March 9,
2016
|
February 11,
2015
|
March 11,
2015
|
|
March 9,
2016
|
February 11,
2015
|
March 11,
2015
|
|
|
(12
weeks)
|
(12
weeks)
|
(12
weeks)
|
|
(28
weeks)
|
(24
weeks)
|
(28
weeks)
|
Loss from
Continuing Operations
|
|
$
|
(582)
|
|
$
|
(1,285)
|
|
$
|
(1,060)
|
|
|
$
|
(2,321)
|
|
$
|
(4,165)
|
|
$
|
(3,574)
|
|
Add: Provision
(benefit) for income taxes
|
|
(185)
|
|
61
|
|
58
|
|
|
(845)
|
|
(1,721)
|
|
(1,719)
|
|
Add: Depreciation and
amortization
|
|
5,220
|
|
4,781
|
|
4,765
|
|
|
12,235
|
|
9,849
|
|
11,429
|
|
Add: Interest
expense, net
|
|
494
|
|
568
|
|
594
|
|
|
1,189
|
|
1,023
|
|
1,222
|
|
Add: Net gain on
dispositions
|
|
(556)
|
|
(1,377)
|
|
(1,436)
|
|
|
(835)
|
|
(1,087)
|
|
(1,073)
|
|
Add: Provision for
asset
impairments
|
|
37
|
|
218
|
|
218
|
|
|
37
|
|
218
|
|
218
|
|
Add: Non-cash
compensation expense
|
|
283
|
|
147
|
|
188
|
|
|
812
|
|
301
|
|
382
|
|
Less: Other Income
(expenses),
net
|
|
(29)
|
|
(78)
|
|
(50)
|
|
|
90
|
|
(258)
|
|
(280)
|
|
Adjusted
EBITDA
|
|
$
|
4,682
|
|
$
|
3,035
|
|
$
|
3,277
|
|
|
$
|
10,362
|
|
$
|
4,160
|
|
$
|
6,605
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/lubys-reports-second-quarter-fiscal-2016-results-300251226.html
SOURCE Luby's, Inc.