HOUSTON, Nov. 7, 2012 /PRNewswire/ -- Luby's, Inc.
(NYSE: LUB) ("Luby's") today announced its unaudited financial
results for its sixteen-week fourth quarter fiscal 2012, and for
its fifty-two week fiscal year, which ended on August 29, 2012. Fiscal 2011 results
included an extra week in comparison to fiscal 2012. The fourth
quarter fiscal 2011 had seventeen weeks and the fiscal year 2011
had fifty-three weeks.
Chris Pappas, President and CEO,
remarked, "During fiscal 2012, our dedication to improving our
guest experience, to enhancing each aspect of our restaurant
operations, and to launching innovative marketing programs allowed
us to generate a 2012 fiscal store level profit margin of 15.4%, up
270 basis points over last fiscal year's 12.7%. These results
demonstrate that we are well on track to reach our target store
level profit range of 17% to 19%.
"We would like to thank our talented and experienced team for
their hard work and their dedication to always putting our guests
first. As we begin our fiscal 2013, we have tremendous
opportunities to continue to refine our processes and grow our
business. We are positioned to continue building on the successes
we achieved in fiscal 2012 due to our dedicated team, a culture
that focuses on the customer, a strong financial position, and
highly-regarded value brands."
2012 Fourth Fiscal Quarter Review
- Store level profit, defined as restaurant sales less food
costs, payroll and related costs, and other operating expenses,
rose to $15.3 million in the fourth
quarter of fiscal 2012, or 15.3% of restaurant sales. During
the seventeen-week fourth quarter of fiscal 2011, store level
profit was $14.1 million, or 13.4% of
restaurant sales. On a comparable sixteen-week basis, store level
profit was $13.2 million in last
year's fourth quarter. Store level profit as a percentage of
restaurant sales rose due to positive same store sales growth and
effective management in each of our cost line items of food,
payroll and other costs.
- Same store sales rose 2.4%. Same store sales results
include the 150 restaurants (93 Luby's Cafeterias and 57
Fuddruckers and Koo Koo Roo
locations) that have been open for 18 consecutive accounting
periods. At Luby's Cafeterias, average spend per person increased
5.7% and customer traffic declined 2.9%, due in part to a shift in
menu offerings. At Fuddruckers, average spend per customer
increased 1.4% and customer traffic grew 1.9%. Same store sales
declined at the three Koo Koo Roo
locations, which reduced total same store sales by approximately 30
basis points. Fuddruckers franchise units, averaging 125 units
during the quarter, were down 0.3% in sales.
Table
1: Same Store Sales by Quarter
|
|
|
Q1
|
Q2
|
Q3
|
Q4
|
Full
Year
|
|
|
|
|
|
|
FY2012
Same-Store Sales:
|
3.5%
|
2.2%
|
1.1%
|
2.4%
|
2.2%
|
FY2011
Same-Store Sales:
|
5.5%
|
2.7%
|
3.5%
|
(0.6%)
|
2.5%
|
Note: Luby's begins including a restaurant's sales results into
the same-store sales calculation once that restaurant has been open
for 18 consecutive accounting periods. Beginning in the 2012 third
fiscal quarter, Fuddruckers and Koo Koo
Roo locations that we have operated for 18 consecutive
accounting periods have been included in the same store sales
results.
- Restaurant sales were $100.0
million. During the same quarter last year, restaurant
sales were $105.3 million, for
seventeen weeks, and $99.1 million
for the comparable sixteen weeks. Restaurant sales rose on a
comparable sixteen-week basis due to growth in same store sales and
the sales contribution from two new restaurants. These additional
restaurant sales were partially offset by the closure of four
stores over the prior year. The 93 Luby's Cafeterias generated
$68.9 million in restaurant sales,
and the 61 company-operated Fuddruckers and Koo Koo Roo locations produced $31.1 million in restaurant sales.
Table
2: Restaurant Sales (In thousands)
|
|
|
Q4
FY2012
16
Weeks
Ended
8/29/2012
|
Q4
FY2011
17
Weeks
Ended
8/31/2011
|
Q4
FY2011
Comparable
16
Weeks
|
%
Change
Comparable 16 Weeks
|
|
|
|
|
|
Luby's
Cafeterias 1
|
$
68,884
|
$
73,160
|
$
68,857
|
0.0%
|
Fuddruckers and Koo Koo Roo 2
|
31,118
|
32,098
|
30,210
|
3.0%
|
Restaurant
Sales
|
$
100,002
|
$
105,258
|
$
99,067
|
0.9%
|
|
|
(1)
|
95 stores
at FY2011 Q4 end; 93 stores at FY2012 Q4 end.
|
(2)
|
61 stores
at FY2011 Q4 end; 61 stores at FY2012 Q4 end.
|
- Total sales were $107.2 million
in the fourth quarter fiscal 2012. Total sales in last year's
fourth fiscal quarter were $113.5
million on a seventeen-week basis and $106.9 million on a comparable sixteen-week
basis.
- Franchise revenue declined to $2.4
million in the fourth quarter fiscal 2012 compared to
$2.5 million in the same quarter last
year. On a comparable sixteen-week basis, franchise
revenue increased 3.0%
- Revenue from Culinary Contract Services declined to
$4.6 million in the fourth quarter
fiscal 2012 compared to $5.6 million
in the same fiscal quarter last year and $5.3 million on a comparable 16-week basis. We
continue to refine our operating model by concentrating on
operating locations that generate sufficient returns. Although our
Culinary Contract Services ended the fourth quarter of fiscal 2012
operating 18 facilities, down from 21 facilities at the end of the
fourth quarter of fiscal 2011, we now operate with a stronger mix
of clients. We believe we are better positioned now to grow our
sales and improve operating margins in this business
line.
- In the fourth quarter fiscal 2012, we generated income from
continuing operations of $3.1
million, or $0.11 per share,
compared to $2.9 million in the same
quarter last year, or $0.10 per
share. Results in each of fiscal 2012 and 2011 included various
special items as outlined in the chart below. Excluding special
items, fourth quarter fiscal 2012 income from continuing operations
was $1.6 million, or $0.06 per share, compared to $1.5 million, or $0.05 per share in the fourth quarter fiscal
2011.
Table
3:
|
Reconciliation of income from continuing
operations to income from continuing operations, before
special items (1,2)
|
|
|
Q4
FY2012
|
|
Q4
FY2011
|
Item
|
Amount
($000s)
|
Per
Share ($)
|
|
Amount
($000s)
|
Per
Share ($)
|
Income
from Continuing Operations
|
$
3,103
|
$
0.11
|
|
$
2,891
|
$
0.10
|
Fuddruckers legal and professional fees
|
|
|
|
240
|
0.01
|
Asset
charges; (gain) loss on disposal of assets
|
230
|
0.01
|
|
(942)
|
(0.03)
|
Tax
valuation allowance decrease
|
(2,639)
|
(0.09)
|
|
(580)
|
(0.02)
|
Unrecognized tax benefit accrual
|
887
|
0.03
|
|
|
|
Legal
settlement accrual and Fuddruckers acquisition expenses
|
|
|
|
(139)
|
(0.01)
|
Income
from Continuing Operations, before special items
|
$
1,581
|
$
0.06
|
|
$
1,470
|
$
0.05
|
|
(1)
|
The
Company uses income 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. The Company has
reconciled income (loss) 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.
|
Pappas added, "During fiscal 2012, we opened two company-owned
Fuddruckers, one in Houston and
one in San Antonio. We followed
this by opening two more restaurants, one Luby's and one
Fuddruckers, at a single location outside of Houston. These
two restaurants, the first time we developed a Luby's and
Fuddruckers side-by-side, opened on the first day of fiscal 2013.
Our new locations are coming out of the gates strongly, proving
that there are tremendous opportunities to expand both of our core
restaurant brands. Whether in the full-size 6500+ square foot
location or in a 2,500 square foot stand-alone building, the
Fuddruckers concept has the flexibility to fit in numerous high
traffic locations.
"During fiscal 2012, as planned, five new Fuddruckers franchises
began serving the Worlds' Greatest Hamburgers® and our first joint
venture location debuted in Villahermosa,
Mexico. Moving forward, we hope to further expand our
franchise network.
"We invested approximately $5.7
million in remodeling our existing locations to remain
competitive, relevant and attractive to our customer base. In
fiscal 2012, we completed 12 cafeteria remodels, of which eight
were extensive as well as 17 limited remodels at Fuddruckers. In
fiscal 2013, we plan to remodel approximately 16 cafeterias and 16
Fuddruckers."
"In fiscal 2013, we will continue to find better ways to serve
our guests and to train our staff. We believe our made from
scratch cooking, attractive locations and dedicated staff will
continue to attract customers, and our local market initiatives
will keep them coming back more frequently," concluded Pappas.
Operating Expense Review
Due to the extra week in last year's fourth fiscal quarter, our
operating expense comparison discussions will center on percent to
sales results since that is a more comparable year-over-year
measure.
Food costs as a percentage of restaurant sales improved to 27.8%
in the fourth quarter fiscal 2012 from 28.4% in the comparable
quarter last year, due to more effective cost management practices
resulting, in part, from the restaurant back office system we
implemented last year, as well as the benefit of investing in
enhanced training for our restaurant managers and crews. Food costs
declined approximately $2.1 million,
to $27.8 million in the fourth
quarter fiscal 2012 compared to the same fiscal quarter last year,
which included an extra week. During the fourth quarter
fiscal 2012, we did not experience any significant year-over-year
food cost inflation in our basket of core food commodity
purchases.
In the fourth quarter fiscal 2012, payroll and related costs as
a percentage of restaurant sales improved to 34.0% from 34.8% in
last year's fourth fiscal quarter, as crew labor costs declined due
to better labor scheduling processes adopted during the year,
including the ability to react more quickly to changes in customer
traffic. Payroll and related costs declined approximately
$2.6 million, to $34.0 million in the fourth quarter fiscal 2012
compared to the same fiscal quarter last year, which included an
extra week.
Other operating expenses include restaurant-related expenses for
utilities, repairs and maintenance, advertising, insurance,
supplies, services, and occupancy costs. As a percentage of
restaurant sales, other operating expenses improved to 23.0%
compared to 23.5% in the same quarter last year; significant
reductions in utilities, and other reductions in restaurant
supplies, services, and repairs and maintenance were partially
offset by increases in marketing and advertising and insurance
costs. Other operating expenses in the fourth quarter fiscal 2012
decreased approximately $1.7 million,
to $23.0 million, compared to the
same quarter last year, which included an additional
week.
Depreciation and amortization expense increased $0.2 million to $5.4
million in the fourth quarter fiscal 2012 compared to the
same quarter last year due to the investments made in new locations
as well as the capital we have used for remodeling existing
locations.
General and administrative expenses rose approximately
$0.4 million to $9.9 million in the fourth quarter fiscal 2012
compared to the same quarter last year due to an increase in
salaries and benefits. As a percentage of total revenues, general
and administrative expenses rose to 9.3%, versus 8.4% in the same
quarter last year.
Capital Expenditures and Balance Sheet
At the end of the fourth fiscal quarter 2012, we had
$1.2 million in cash, $172.7 million in shareholders' equity and
$36.1 million available under our
credit facility. During the 2012 fiscal year, we generated
$29.3 million in cash from operating
activities and spent $25.8 million on
capital expenditures. In fiscal 2012, we reduced our balance
under our credit facility by $8.5
million and ended the fiscal year with a $13.0 million outstanding debt balance.
In fiscal 2012, our capital expenditures totaled $25.8 million, and included investments of
$9.0 million on new unit development,
$5.7 million on remodeling of
existing restaurants, and $8.1
million in recurring maintenance capital spend. The
remainder of our capital spend included properties that we acquired
and leased to a franchisee operating Fuddruckers restaurants and
included our capital spend on infrastructure projects.
We expect to invest approximately $22
million to $27 million in capital projects during fiscal
2013. The capital will be dedicated to our projected new unit
growth, the remodeling of existing restaurants, and the on-going
maintenance of our operations. Additional capital spend above
this level may occur to purchase land and begin construction of
restaurants that will open subsequent to fiscal year 2013.
Fiscal Year-to-Date Review
- Luby's generated restaurant sales of $324.5 million during fiscal 2012; Luby's
Cafeterias generated sales of $228.6
million and Fuddruckers contributed sales of $95.9 million. Luby's generated restaurant
sales of $325.4 million during the 53
week fiscal 2011 period and $319.2
million on a comparable 52-week basis.
- Franchise revenue was $7.2
million in fiscal 2012, compared to $7.1 million in fiscal 2011. On a
comparable 52-week basis, franchise revenue increased 3.9%.
- Luby's Culinary Contract Services produced $17.7 million in sales during fiscal year 2012
versus $15.6 million during fiscal
year 2011.
- Store level profit rose to $49.9
million in fiscal 2012, or 15.4% as a percent of restaurant
sales. In fiscal 2011, store level profit was $41.2 million, or 12.7% of restaurant sales. On a
comparable 52-week basis, store level profit was approximately
$40.4 million.
- Income from continuing operations grew to $7.6 million in fiscal year 2012, compared to
$2.6 million in fiscal year
2011. Results in each of fiscal 2012 and 2011 included
various special items as outlined in the chart below. Excluding
special items, fiscal year 2012 income from continuing operations
was $6.1 million, or $0.21 per share, compared to $2.1 million, or $0.07 per share in fiscal year 2011.
Table
4:
|
Reconciliation of income from continuing
operations to income from continuing operations, before
special items (1,2)
|
|
|
FY2012
|
|
FY2011
|
Item
|
Amount
($000s)
|
Per
Share ($)
|
|
Amount
($000s)
|
Per
Share ($)
|
Income
from Continuing Operations
|
$
7,558
|
$
0.27
|
|
$
2,579
|
$
0.09
|
Fuddruckers legal and professional fees
|
|
|
|
1,017
|
0.04
|
Asset
charges; (gain) loss on disposal of assets
|
481
|
0.01
|
|
(886)
|
(0.03)
|
Tax
valuation allowance decrease
|
(2,639)
|
(0.09)
|
|
(479)
|
(0.02)
|
Unrecognized tax benefit accrual
|
887
|
0.03
|
|
|
|
Credit
Card Settlement
|
(190)
|
(0.01)
|
|
|
|
Legal
settlement accrual and Fuddruckers acquisition expenses
|
|
|
|
(139)
|
(0.01)
|
Income
from Continuing Operations, before special items
|
$
6,097
|
$
0.21
|
|
$
2,092
|
$
0.07
|
|
(3)
|
The
Company uses income 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. The Company has
reconciled income (loss) from continuing operations, before special
items, to income from continuing operations, the nearest GAAP
measure in context.
|
(4)
|
Per share
amounts are per diluted share after tax.
|
Outlook
As announced previously, Luby's expects that its same store
sales for its fiscal 2013 will increase between 0.5% and 1.5% and
that its restaurant sales will be in the range of $332 million to $335 million. Earnings per
diluted share are anticipated to grow to $0.27 to $0.30 in fiscal 2013, due to increased
sales and continued margin expansion. This outlook is sensitive to
changes in economic conditions and the effects of other risks and
uncertainties described in the Company's annual and quarterly
reports on Forms 10-K and 10-Q filed with the Securities Exchange
Commission.
Luby's will continue to expand its geographic footprint and
anticipates opening one to two cafeterias in 2013. It also expects
to open three to five Fuddruckers.
Profitability is contingent on same store sales growth as well
as effective management of our expenses. While encouraged
that gasoline prices at the beginning of the summer were not as
high as some predicted, we continue to remain cautious about the
general economic environment and its impact on customer
traffic.
Conference Call
Luby's will host a conference call tomorrow, November 8, 2012, at 10:00
a.m., Central Time, to discuss further its 2012 fiscal
fourth quarter results. To access the call live, dial 480-629-9770
and ask for the Luby's conference call 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.lubys.com. For those who cannot listen to the live call,
a telephonic replay will be available through November 15, 2012 and may be accessed by calling
(303) 590-3030 and using the pass code 4570335#. 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. operates restaurants under the brands Luby's
Cafeteria and Fuddruckers and provides food service management
through its Luby's Culinary Services division. The company-operated
restaurants include 93 Luby's cafeterias, 60 Fuddruckers
restaurants, two Koo Koo Roo Chicken Bistros, and one Bob Luby's Seafood Grill. Its 93 Luby's
cafeterias are located primarily in Texas. In addition to the 60 company-operated
Fuddruckers locations, the Company has 121 Fuddruckers franchises
locations across the United States
(including Puerto Rico),
Canada, and Mexico. Luby's Culinary Services provides food
service management to 17 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.
The Company 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 the
Company. 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 the
Company's actual results to differ materially from the expectations
the Company describes in its "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 the Company'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 the Company's annual reports on Form
10-K and quarterly reports on Form 10-Q.
|
|
|
|
|
Luby's, Inc.
Consolidated Statements of
Operations
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
Year
Ended
|
|
August
29,
2012
|
August
31,
2011
|
August
29,
2012
|
August
31,
2011
|
|
(112
days)
|
(119
days)
|
(364
days)
|
(371
days)
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
SALES:
|
|
|
|
|
Restaurant sales
|
$
100,002
|
$
105,258
|
$
324,536
|
$
325,383
|
Culinary contract services
|
4,642
|
5,601
|
17,711
|
15,619
|
Franchise revenue
|
2,394
|
2,470
|
7,232
|
7,092
|
Vending revenue
|
192
|
209
|
618
|
654
|
|
|
|
|
|
TOTAL
SALES
|
107,230
|
113,538
|
350,097
|
348,748
|
COSTS AND
EXPENSES:
|
|
|
|
|
Cost of food
|
27,774
|
29,896
|
90,416
|
94,166
|
Payroll and related costs
|
33,966
|
36,590
|
110,161
|
113,083
|
Other operating expenses
|
23,011
|
24,701
|
74,084
|
76,956
|
Opening costs
|
286
|
168
|
395
|
346
|
Cost of culinary contract services
|
4,322
|
5,336
|
16,545
|
14,516
|
Depreciation and amortization
|
5,404
|
5,182
|
17,972
|
17,204
|
General and administrative expenses
|
9,936
|
9,544
|
30,678
|
29,530
|
Provision for asset impairments, net
|
276
|
—
|
451
|
84
|
Net loss (gain) on disposition of property and
equipment
|
73
|
(1,427)
|
278
|
(1,427)
|
|
|
|
|
|
Total costs and expenses
|
105,048
|
109,990
|
340,980
|
344,458
|
|
|
|
|
|
INCOME
FROM OPERATIONS
|
2,182
|
3,548
|
9,117
|
4,290
|
Interest income
|
3
|
—
|
8
|
4
|
Interest expense
|
(248)
|
(692)
|
(942)
|
(2,443)
|
Other income, net
|
409
|
406
|
1,081
|
1,276
|
|
|
|
|
|
Income
before income taxes and discontinued operations
|
2,346
|
3,262
|
9,264
|
3,127
|
Provision (benefit) for income taxes
|
(757)
|
371
|
1,706
|
548
|
|
|
|
|
|
Income
from continuing operations
|
3,103
|
2,891
|
7,558
|
2,579
|
Income from discontinued operations, net of
income taxes
|
38
|
(45)
|
(704)
|
386
|
|
|
|
|
|
NET
INCOME
|
$
3,141
|
$
2,846
|
$
6,854
|
$
2,965
|
|
|
|
|
|
Income per
share from continuing operations:
|
|
|
|
|
Basic
|
$
0.11
|
$
0.10
|
$
0.27
|
$
0.09
|
Assuming dilution
|
$
0.11
|
$
0.10
|
$
0.27
|
$
0.09
|
Income
(loss) per share from discontinued operations:
|
|
|
|
|
Basic
|
$
—
|
$
—
|
$
(0.03)
|
$
0.01
|
Assuming dilution
|
$
—
|
$
—
|
$
(0.03)
|
$
0.01
|
Net income
per share:
|
|
|
|
|
Basic
|
$
0.11
|
$
0.10
|
$
0.24
|
$
0.10
|
Assuming dilution
|
$
0.11
|
$
0.10
|
$
0.24
|
$
0.10
|
Weighted
average shares outstanding:
|
|
|
|
|
Basic
|
28,374
|
28,267
|
28,351
|
28,237
|
Assuming dilution
|
28,523
|
28,332
|
28,429
|
28,297
|
|
|
|
|
|
|
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
|
|
Year
Ended
|
|
|
|
August
29,
|
|
*August
31,
|
|
August
29,
|
|
*August
31,
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
(112
days)
|
|
(119
days)
|
|
(364
days)
|
|
(371
days)
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Restaurant
sales
|
|
|
93.3
|
%
|
|
92.7
|
%
|
|
92.7
|
%
|
|
93.3
|
%
|
Culinary
contract services
|
|
|
4.3
|
%
|
|
4.9
|
%
|
|
5.0
|
%
|
|
4.5
|
%
|
Franchise
revenue
|
|
|
2.2
|
%
|
|
2.2
|
%
|
|
2.1
|
%
|
|
2.0
|
%
|
Vending
revenue
|
|
|
0.2
|
%
|
|
0.2
|
%
|
|
0.2
|
%
|
|
0.2
|
%
|
TOTAL
SALES
|
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COSTS AND
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(As a
percentage of restaurant sales)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
food
|
|
|
27.8
|
%
|
|
28.4
|
%
|
|
27.9
|
%
|
|
28.9
|
%
|
Payroll
and related costs
|
|
|
34.0
|
%
|
|
34.8
|
%
|
|
33.9
|
%
|
|
34.8
|
%
|
Other
operating expenses
|
|
|
23.0
|
%
|
|
23.5
|
%
|
|
22.8
|
%
|
|
23.7
|
%
|
Store
level profit
|
|
|
15.3
|
%
|
|
13.4
|
%
|
|
15.4
|
%
|
|
12.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(As a
percentage of total sales)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General
and administrative expenses
|
|
|
9.3
|
%
|
|
8.4
|
%
|
|
8.8
|
%
|
|
8.5
|
%
|
INCOME
FROM OPERATIONS
|
|
|
2.0
|
%
|
|
3.1
|
%
|
|
2.6
|
%
|
|
1.2
|
%
|
|
*Note:
Includes one extra operating week in the periods
reported.
|
|
|
|
Luby's, Inc.
Consolidated Balance Sheets
|
|
|
|
|
|
|
|
August 29,
2012
|
August 31,
2011
|
|
(In thousands, except share data)
|
|
(Unaudited)
|
|
ASSETS
|
|
|
Current
Assets:
|
|
|
Cash and cash equivalents
|
$
1,223
|
$
1,252
|
Trade accounts and other receivables, net
|
4,000
|
4,429
|
Food and supply inventories
|
3,561
|
4,191
|
Prepaid expenses
|
3,010
|
1,960
|
Assets related to discontinued operations
|
40
|
67
|
Deferred income taxes
|
1,932
|
2,865
|
|
|
|
Total current assets
|
13,766
|
14,764
|
Property
held for sale
|
602
|
1,046
|
Assets
related to discontinued operations
|
4,824
|
7,837
|
Property
and equipment, net
|
173,653
|
166,963
|
Intangible
assets, net
|
26,679
|
28,098
|
Goodwill
|
195
|
195
|
Deferred
incomes taxes
|
9,354
|
7,680
|
Other
assets
|
1,944
|
1,437
|
|
|
|
Total
assets
|
$
231,017
|
$
228,020
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
Current
Liabilities:
|
|
|
Accounts payable
|
$
14,849
|
$
14,226
|
Liabilities related to discontinued
operations
|
411
|
609
|
Accrued expenses and other liabilities
|
20,677
|
18,587
|
|
|
|
Total current liabilities
|
35,937
|
33,422
|
Credit
facility debt
|
13,000
|
21,500
|
Liabilities related to discontinued
operations
|
1,133
|
1,220
|
Other
liabilities
|
8,288
|
6,841
|
|
|
|
Total liabilities
|
58,358
|
62,983
|
|
|
|
Commitments and Contingencies
|
|
|
SHAREHOLDERS' EQUITY
|
|
|
Common
stock, $0.32 par value; 100,000,000 shares authorized; Shares
issued were 28,677,203 and 28,651,277, respectively; Shares
outstanding were 28,177,203 and 28,151,277, respectively
|
9,176
|
9,168
|
Paid-in capital
|
24,532
|
23,772
|
Retained earnings
|
143,726
|
136,872
|
Less cost of treasury stock, 500,000
shares
|
(4,775)
|
(4,775)
|
|
|
|
Total shareholders' equity
|
172,659
|
165,037
|
|
|
|
Total
liabilities and shareholders' equity
|
$
231,017
|
$
228,020
|
|
|
|
|
The
accompanying notes are an integral part of these consolidated
financial statements.
|
|
|
|
|
Luby's, Inc.
Consolidated Statements of Cash
Flows
|
|
|
|
|
|
|
|
|
|
Year
Ended
|
|
August 29,
2012
|
August 31,
2011
|
August 25,
2010
|
|
(In
thousands)
|
|
(Unaudited)
|
|
|
CASH FLOWS
FROM OPERATING ACTIVITIES:
|
|
|
|
Net income (loss)
|
$
6,854
|
$
2,965
|
$
(2,893)
|
Adjustments to reconcile net income (loss) to net
cash provided by operating activities:
|
|
|
|
Provision for asset impairments, net of gains/losses
on property sales
|
1,084
|
(3,317)
|
(1,864)
|
Depreciation and amortization
|
17,974
|
17,278
|
15,488
|
Provision for doubtful accounts
|
382
|
298
|
34
|
(Gain) impairment of investments
|
—
|
—
|
(1,636)
|
Amortization of debt issuance cost
|
112
|
893
|
328
|
Non-cash compensation expense
|
—
|
27
|
258
|
Share-based compensation expense
|
768
|
755
|
954
|
Reduction in tax benefits from stock
options
|
—
|
71
|
90
|
Gain on acquisition
|
—
|
(137)
|
—
|
Deferred tax expense (benefit)
|
(341)
|
1,007
|
(4,672)
|
|
|
|
|
Cash
provided by operating activities before changes in operating asset
and liabilities
|
26,833
|
19,840
|
6,087
|
Changes in operating assets and
liabilities:
|
|
|
|
(Increase) decrease in trade accounts and other
receivables
|
55
|
(2,522)
|
(169)
|
(Increase) decrease in food and supply
inventories
|
629
|
(1,094)
|
411
|
Increase in prepaid expenses and other
assets
|
(1,414)
|
(952)
|
(476)
|
Increase in accounts payable, accrued expenses and
other liabilities
|
3,193
|
1,181
|
3,444
|
|
|
|
|
Net cash
provided by operating activities
|
29,262
|
16,453
|
9,297
|
|
|
|
|
CASH FLOWS
FROM INVESTING ACTIVITIES:
|
|
|
|
Proceeds (purchases) from redemption or maturity of
long-term investments
|
—
|
—
|
8,539
|
Issuance of note receivable
|
(177)
|
—
|
—
|
Acquisition of Fuddruckers
|
—
|
(600)
|
(63,064)
|
Proceeds from disposal of assets, insurance proceeds
and property held for sale
|
5,232
|
14,672
|
9,393
|
Purchases of property and equipment
|
(25,845)
|
(11,038)
|
(3,580)
|
|
|
|
|
Net cash
provided by (used in) investing activities
|
(20,790)
|
3,034
|
(48,712)
|
|
|
|
|
CASH FLOWS
FROM FINANCING ACTIVITIES:
|
|
|
|
Credit facility borrowings
|
43,300
|
86,650
|
122,100
|
Credit facility repayments
|
(51,800)
|
(106,650)
|
(80,600)
|
Debt issuance costs
|
(1)
|
(562)
|
(667)
|
Proceeds received on the exercise of employee stock
options
|
—
|
27
|
—
|
|
|
|
|
Net cash
(used in) provided by financing activities
|
(8,501)
|
(20,535)
|
40,833
|
|
|
|
|
Net
(decrease) increase in cash and cash equivalents
|
(29)
|
(1,048)
|
1,418
|
Cash and
cash equivalents at beginning of year
|
1,252
|
2,300
|
882
|
|
|
|
|
Cash and
cash equivalents at end of year
|
$
1,223
|
$
1,252
|
$
2,300
|
|
|
|
|
|
The
accompanying notes are an integral part of these consolidated
financial statements.
|
|
|
Although
store level profit, defined as restaurant sales less food cost
less, payroll and related costs, and other operating 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
|
Four
Quarters Ended
|
|
August
29,
2012
|
August
31,
2011
|
August
29,
2012
|
August
31,
2011
|
(16
weeks)
|
(17
weeks)
|
(52
weeks)
|
(53
weeks)
|
|
(In
thousands)
|
|
|
|
|
|
Store
level profit
|
$
15,251
|
$
14,072
|
$
49,876
|
$
41,178
|
|
|
|
|
|
Plus:
|
|
|
|
|
Sales from
vending revenue
|
192
|
209
|
618
|
654
|
Sales from
culinary contract services
|
4,642
|
5,601
|
17,711
|
15,619
|
Sales from
franchise revenue
|
2,394
|
2,470
|
7,232
|
7,092
|
|
|
|
|
|
Less:
|
|
|
|
|
Opening
costs
|
286
|
169
|
396
|
346
|
Cost of
culinary contract services
|
4,322
|
5,336
|
16,545
|
14,516
|
Depreciation and amortization
|
5,404
|
5,182
|
17,972
|
17,204
|
General
and administrative expenses
|
9,936
|
9,544
|
30,678
|
29,530
|
Provision
for asset impairments, net
|
276
|
—
|
451
|
84
|
Net loss
(gain) on disposition of property and equipment
|
73
|
(1,427)
|
278
|
(1,427)
|
Interest
income
|
(3)
|
—
|
(8)
|
(4)
|
Interest
expense
|
248
|
692
|
942
|
2,443
|
Other
income, net
|
(409)
|
(406)
|
(1,081)
|
(1,276)
|
Provision
(benefit) for income taxes
|
(757)
|
371
|
1,706
|
548
|
|
|
|
|
|
Income from continuing
operations
|
$
3,103
|
$
2,891
|
$
7,558
|
$
2,579
|
|
|
|
|
|
DRG&L / 713-529-6600
Ken Dennard / Sheila Stuewe
Investor Relations
SOURCE Luby's, Inc.