J. Alexander’s Holdings, Inc. (NYSE: JAX) (the Company), owner
and operator of J. Alexander’s, Redlands Grill, Stoney River
Steakhouse and Grill and other restaurants, today reported results
for the fourth quarter and full year ended December 29, 2019.
Fourth Quarter 2019 Highlights Compared To The Fourth Quarter
Of 2018
- Net sales for the fourth quarter of 2019 were $63,439,000, up
from $63,205,000 reported in the fourth quarter of 2018.
- Income from continuing operations before income taxes totaled
$1,753,000 for the fourth quarter of 2019, including the impact of
transaction, contested proxy and other related expenses of $410,000
related to the ongoing evaluation of strategic alternatives. This
compares to a loss from continuing operations before income taxes
of $470,000 in the fourth quarter of 2018, which included the
impact of transaction, contested proxy and other related expenses
of $4,715,000, of which $4,560,000 related to the termination fee
for a consulting agreement between Black Knight Advisory Services,
LLC (“Black Knight”) and the Company.
- The Company recorded net income of $2,030,000 in the fourth
quarter of 2019 compared to net income of $934,000 reported in the
final quarter of 2018, which was impacted by the same factors as
previously noted affecting income (loss) from continuing operations
before income taxes. Results for the most recent quarter included
an income tax benefit of $330,000 compared to an income tax benefit
of $1,524,000 in the fourth quarter of 2018.
- Basic and diluted earnings per share were $0.14 for the fourth
quarter of 2019 compared to $0.06 for the fourth quarter of
2018.
- Average weekly same store sales per restaurant (1) for the
fourth quarter of 2019 were down 0.4% to $114,100 for the J.
Alexander’s/Grill restaurants and down 2.0% to $83,700 for the
Stoney River Steakhouse and Grill restaurants compared to the final
quarter of 2018.
- Adjusted EBITDA (2) was $6,960,000, or 11.0% of net sales, in
the fourth quarter of 2019, compared to $7,364,000, or 11.7% of net
sales, in the fourth quarter of 2018.
- Restaurant Operating Profit Margin (3) was 12.2% in the most
recent quarter compared to 12.8% for the fourth quarter of
2018.
- Cost of sales as a percentage of net sales in the fourth
quarter of 2019 was 32.9% compared to 32.7% in the final quarter of
2018.
The Company’s restaurant labor and related costs as a percentage
of net sales were 30.5% in the fourth quarter of 2019 compared to
30.4% of net sales in the fourth quarter of 2018. Other restaurant
operating expenses were 19.6% of net sales in the last quarter of
2019 compared to 19.5% of net sales in the same quarter of
2018.
The average weekly guest counts within the same store base of
the Company’s J. Alexander’s/Grill restaurants were down 2.2% in
the fourth quarter of 2019 compared to the fourth quarter of 2018.
Guest counts within the same store base at the Company’s Stoney
River Steakhouse and Grill restaurants were down 1.6% for the
fourth quarter of 2019 compared to the final quarter of 2018. With
respect to average guest checks, which include alcoholic beverage
sales, the average guest check within the J. Alexander’s/Grill same
store base of restaurants during the fourth quarter of 2019 was
$33.06, up 1.7% from $32.51 recorded during the fourth quarter of
2018. The average guest check within the same store base of Stoney
River Steakhouse and Grill restaurants was $43.92 during the last
quarter of 2019, down 0.3% from $44.05 recorded in the final
quarter of 2018.
On a consolidated basis, average weekly guest counts within the
Company’s J. Alexander’s/Grill locations in the fourth quarter of
2019 were down 2.8% from the fourth quarter of 2018, while average
weekly guest counts within the Company’s Stoney River Steakhouse
and Grill locations decreased 2.2% for the fourth quarter of 2019
compared to the same quarter a year earlier. Average guest checks
on a consolidated basis for the J. Alexander’s/Grill restaurants
increased 1.8% from $32.52 in the last quarter of 2018 to $33.10
for the fourth quarter of 2019. Average guest checks for the Stoney
River Steakhouse and Grill restaurants decreased 0.7% from $43.72
in the fourth quarter of 2018 to $43.42 in the fourth quarter of
2019.
The effect of menu pricing for the fourth quarter of 2019 was
estimated to be a 1.7% increase for the J. Alexander’s/Grill
restaurants and a 2.2% increase for the Stoney River Steakhouse and
Grill restaurants compared to the last quarter of 2018. For the J.
Alexander’s/Grill restaurants, management estimated that inflation
in total food costs was 1.9% for the fourth quarter of 2019
compared to the same quarter in 2018, and beef costs were
determined to have increased by an estimated 7.6% compared to the
same quarter of the prior year. For the Stoney River Steakhouse and
Grill restaurants, inflation for the fourth quarter of 2019 was
estimated to total 2.3%, with beef costs up by 8.6% from the
comparable quarter of 2018.
Chief Executive Officer’s Comments
“Several of the issues addressed in our last quarterly release,
including continued competitive intrusion into certain markets,
disruption of traffic patterns in selected locations related to
ongoing construction surrounding our restaurants and the switchover
from OpenTable to the Resy platform for our reservation system,
continued to impact our total top line performance in the fourth
quarter of 2019,” said Mark A. Parkey, President and Chief
Executive Officer of J. Alexander’s Holdings, Inc.
“On the positive side,” Parkey pointed out, “we continue to be
pleased with the progress and sales trends of our newer J.
Alexander’s/Grill restaurants, all of which posted significant
guest count increases in the fourth quarter of 2019. We are also
encouraged with the strong initial performance of our newest
restaurant, Merus Grill, which opened in Houston, TX, in November
of 2019.”
Parkey explained that the Company’s new Resy reservation system
operated for its first full quarter in the three months ended
December 29, 2019. “While we estimate guest counts were negatively
impacted by approximately 0.3% in the last quarter due to this
initiative, we also estimate savings of approximately $225,000 in
our operating expense line for the fourth quarter as a result.”
Parkey said that the Company anticipated some short-term
interruption in guest counts from the changeover in certain
markets, but that the impact is not expected to have a long-term
impact on guest counts and should result in significant long-term
margin expansion from the related cost savings.
Parkey said that beef input prices were up during the fourth
quarter of 2019 as compared to the prior year fourth quarter for
both the J. Alexander’s / Grill and Stoney River concepts. “We
experienced pressure on certain input prices, particularly for
beef, which contributed to increased cost of sales. We took a small
price increase in certain markets on beef products late in the
fourth quarter in order to combat these increased input costs, and
we believe we have room to take additional increases in most of our
markets in fiscal 2020.”
Parkey continued, “While our long-term outlook remains positive,
we, along with others in our industry, are concerned about the
disruption to the business that the COVID-19 outbreak has caused
and will continue to closely monitor the impact on the financial
markets, business travel, spending patterns, and overall consumer
confidence. We remain cautiously optimistic that the impact to our
top-line performance will be relatively short-term, but cannot
predict with certainty how any actions taken by government
officials, including mandatory quarantines, may affect our results
for fiscal 2020 . Fiscal 2020 will be a 53-week year, and will
contain the benefit of New Year’s Eve, which is typically one of
our highest volume days of the year, in both the first quarter and
the fourth quarter of the year.”
Parkey further stated that the Company has elected not to
provide formal guidance for fiscal 2020 in light of both the
ongoing evaluation of strategic alternatives as well as the
uncertain consumer environment. “The Company’s management and Board
of Directors remain committed to working to maximize value for our
shareholders. As part of the Board's most recent efforts in
evaluating strategic alternatives for the Company, the Company
retained Piper Sandler as its financial advisor. Since August, the
Board's directive to Piper has been to focus its efforts primarily
on finding a buyer for the entire Company. While the Company
remains engaged in discussions with several interested parties, the
Board believes that the uncertainties in both consumer sentiment
and the financial markets caused by the COVID-19 outbreak make it
relatively less likely that a satisfactory agreement with respect
to both price and conditionality will be reached imminently. The
Company expects to continue discussions and provide information to
these interested parties and is hopeful that an agreement will be
reached as these uncertainties are resolved. Of course, there can
be no assurance that a transaction agreement will ultimately be
reached. In recognition of this period of uncertainty, the Board
has extended the timetable for shareholder nominations for the two
Board seats up for election at this year‘s annual meeting. The new
deadline will be April 21, 2020, a 30-day extension from the
current date.”
Full Year Highlights For 2019
For the full year ended December 29, 2019, the Company recorded
net sales of $247,269,000, up 2.1% from $242,264,000 posted in the
previous full year. Within the J. Alexander’s/Grill restaurants,
average weekly same store sales per restaurant were $113,400 for
the year ended December 29, 2019, a decrease of 0.4% from $113,800
achieved for fiscal 2018. For the Stoney River Steakhouse and Grill
restaurants, average weekly same store sales per restaurant were
$79,500 for fiscal 2019, the same as posted in fiscal 2018.
Income from continuing operations before income taxes for fiscal
2019 increased to $8,485,000 from $2,862,000 reported in fiscal
2018. Included in results for fiscal 2019 were transaction,
contested proxy and other related expenses of $1,178,000. This
compares to transaction, contested proxy and other related expenses
of $5,648,000 in fiscal 2018, which included the previously
discussed termination fee of $4,560,000 related to the management
consulting agreement with Black Knight. In addition, fiscal 2018
included non-cash profits interest expense of $2,644,000 and
consulting fees of $703,000 associated with the now terminated
Black Knight consulting agreement. No such expenses were recorded
in 2019.
The Company recorded net income of $8,817,000 in fiscal 2019, up
from $3,999,000 reported in fiscal 2018. Adjusted EBITDA for 2019
totaled $25,616,000, or 10.4% of net sales. This compares to
$25,622,000, or 10.6% of net sales, achieved in 2018. Basic and
diluted earnings per share totaled $0.60 in 2019 compared to $0.27
for both basic and diluted earnings per share in 2018. See attached
“Adjusted EBITDA Reconciliation” for our definition of Adjusted
EBITDA and a reconciliation to net income.
The average weekly guest counts within the same store base of J.
Alexander’s/Grill restaurants decreased by 1.9% for fiscal 2019 and
decreased by 0.2% within the Stoney River Steakhouse and Grill
restaurants during 2019. The average guest check within the same
store base at the J. Alexander’s/Grill restaurants increased 1.5%
from $31.97 for 2018 to $32.44 for 2019. The average guest check
within the same store base at the Stoney River Steakhouse and Grill
restaurants increased by 0.1% from $42.77 in 2018 to $42.82 in
2019. The effect of menu price increases for 2019 was estimated to
be 0.9% at J. Alexander’s/Grill restaurants, and 1.3% at the Stoney
River Steakhouse and Grill restaurants compared to 2018.
Cost of sales as a percentage of net sales for 2019 was 32.1%
compared to 31.9% for 2018. The estimated effect of inflation in
food costs for 2019 was 1.4% for the J. Alexander’s/Grill
restaurants, with beef costs up by 3.9% compared to 2018. For the
Stoney River Steakhouse and Grill restaurants, the effect of
inflation in food costs for 2019 was estimated to be 1.6% with beef
costs up by 4.4% compared to 2018.
Restaurant Development
During the fourth quarter of 2019, the Company opened one new J.
Alexander’s/Grill restaurant in Houston, TX. This restaurant,
located in Uptown Park, marks the first location opened by the
Company operating under the name Merus Grill.
The Company also has plans to open a new Redlands Grill in San
Antonio, TX, at the end of the third quarter of 2020. Early in the
first quarter of 2020, the Company signed a lease to build and
operate a new J. Alexander’s Restaurant in Madison, AL, one of the
fastest growing markets in the state. This new J. Alexander’s
restaurant is scheduled to open during the fourth quarter of
2020.
(1) Average weekly same store sales per restaurant is computed
by dividing total restaurant same store sales for the period by the
total number of days all same store restaurants were open for the
period to obtain a daily sales average. The daily same store sales
average is then multiplied by seven to arrive at average weekly
same store sales per restaurant. Days on which restaurants are
closed for business for any reason other than scheduled closures on
Thanksgiving and Christmas are excluded from this calculation.
Sales and sales days used in this calculation and amounts of other
“same store” figures in this release include only those for
restaurants in operation at the end of the period which have been
open for more than 18 months. Revenue associated with reduction in
liabilities for gift cards, which is recognized in proportion to
guest redemptions based on historical redemption rates and commonly
referred to as gift card breakage, is not included in the
calculation of average weekly same store sales per restaurant.
Average weekly same store sales are computed from sales amounts
that have been determined in accordance with U.S. generally
accepted accounting principles (GAAP).
(2) Please refer to the financial information accompanying this
release for our definition of and a reconciliation of the non‐GAAP
financial measure Adjusted EBITDA to net income (loss). Management
uses Adjusted EBITDA to evaluate operating performance and the
effectiveness of its business strategies.
(3) “Restaurant Operating Profit Margin” is the ratio of
Restaurant Operating Profit, a non-GAAP financial measure, to net
sales. Please refer to the financial information accompanying this
release for our definition of and a reconciliation of the non‐GAAP
financial measure Restaurant Operating Profit to Operating Income.
Management uses Restaurant Operating Profit to measure operating
performance at the restaurant level.
About J. Alexander’s Holdings, Inc.
J. Alexander’s Holdings, Inc. is a collection of restaurants
that focus on providing high quality food, outstanding professional
service and an attractive ambiance. The Company presently operates
47 restaurants in 16 states. The Company has its headquarters in
Nashville, TN.
For additional information, visit
www.jalexandersholdings.com.
Forward-Looking Statements
This press release issued by J. Alexander’s Holdings, Inc.
contains forward‐looking statements, which include all statements
that do not relate solely to historical or current facts, such as
statements regarding our expectations, intentions or strategies
regarding the future. These forward‐looking statements are based on
management's beliefs, as well as assumptions made by, and
information currently available to, management. Because such
statements are based on expectations as to future financial and
operating results and other events and are not statements of fact,
actual results may differ materially from those projected and are
subject to a number of known and unknown risks and uncertainties,
including the Company’s ability to maintain satisfactory guest
count levels and maintain or increase sales and operating margin in
its restaurants under varying economic conditions; the effect of
higher commodity prices, unemployment and other economic factors on
consumer demand; increases in food input costs or product shortages
and the Company’s response to them; the number and timing of new
restaurant openings and the Company’s ability to operate them
profitably; competition within the casual dining industry and
within the markets in which our restaurants are located; adverse
weather conditions in regions in which the Company’s restaurants
are located; factors that are under the control of third parties,
including government agencies; the Company’s evaluation of
strategic alternatives; the health and financial effects of the
COVID-19 outbreak; as well as other risks and uncertainties
described under the headings "Forward‐Looking Statements," "Risk
Factors" and other sections of the Company’s Annual Report on Form
10‐K filed with the Securities and Exchange Commission on March 14,
2019, as amended on April 29, 2019, and subsequent filings. The
Company undertakes no obligation to update any forward‐looking
statements, whether as a result of new information, future events
or otherwise.
J. Alexander's Holdings, Inc.
and Subsidiaries
Condensed Consolidated
Statements of Income
(Unaudited in thousands,
except per share amounts)
Quarter Ended
Year Ended
December 29,
December 30,
December 29,
December 30,
2019
2018
2019
2018
Net sales
$
63,439
$
63,205
$
247,269
$
242,264
Costs and expenses: Cost of sales
20,897
20,692
79,338
77,262
Restaurant labor and related costs
19,363
19,240
76,905
74,850
Depreciation and amortization of restaurant property and equipment
3,027
2,847
11,874
10,870
Other operating expenses
12,423
12,319
49,451
48,245
Total restaurant operating expenses
55,710
55,098
217,568
211,227
Transaction, contested proxy and other related expenses
410
4,715
1,178
5,648
General and administrative expenses
4,934
3,362
18,750
20,485
Pre-opening expense
502
391
859
1,415
Total operating expenses
61,556
63,566
238,355
238,775
Operating income (loss)
1,883
(361
)
8,914
3,489
Other income (expense): Interest expense
(90
)
(187
)
(580
)
(724
)
Other, net
(40
)
78
151
97
Total other expense
(130
)
(109
)
(429
)
(627
)
Income (loss) from continuing operations before income taxes
1,753
(470
)
8,485
2,862
Income tax benefit
330
1,524
568
1,596
Loss from discontinued operations, net
(53
)
(120
)
(236
)
(459
)
Net income
$
2,030
$
934
$
8,817
$
3,999
Basic earnings per share: Income from continuing operations,
net of tax
$
0.14
$
0.07
$
0.62
$
0.30
Loss from discontinued operations, net
(0.00
)
(0.01
)
(0.02
)
(0.03
)
Basic earnings per share
$
0.14
$
0.06
$
0.60
$
0.27
Diluted earnings per share: Income from continuing
operations, net of tax
$
0.14
$
0.07
$
0.61
$
0.30
Loss from discontinued operations, net
(0.00
)
(0.01
)
(0.02
)
(0.03
)
Diluted earnings per share
$
0.14
$
0.06
$
0.60
$
0.27
Weighted average common shares outstanding: Basic
14,695
14,695
14,695
14,695
Diluted
14,728
14,695
14,741
14,863
Note: Per share amounts may not sum due to rounding.
J. Alexander's Holdings, Inc.
and Subsidiaries
Condensed Consolidated
Statements of Income Data as a Percentage of Net Sales and
Other Financial and
Performance Data (Unaudited)
Quarter Ended
Year Ended
December 29,
December 30,
December 29,
December 30,
2019
2018
2019
2018
Net sales
100.0
%
100.0
%
100.0
%
100.0
%
Costs and expenses: Cost of sales
32.9
32.7
32.1
31.9
Restaurant labor and related costs
30.5
30.4
31.1
30.9
Depreciation and amortization of restaurant property and equipment
4.8
4.5
4.8
4.5
Other operating expenses
19.6
19.5
20.0
19.9
Total restaurant operating expenses
87.8
87.2
88.0
87.2
Transaction, contested proxy and other related expenses
0.6
7.5
0.5
2.3
General and administrative expenses
7.8
5.3
7.6
8.5
Pre-opening expense
0.8
0.6
0.3
0.6
Total operating expenses
97.0
100.6
96.4
98.6
Operating income (loss)
3.0
(0.6
)
3.6
1.4
Other income (expense): Interest expense
(0.1
)
(0.3
)
(0.2
)
(0.3
)
Other, net
(0.1
)
0.1
0.1
0.0
Total other expense
(0.2
)
(0.2
)
(0.2
)
(0.3
)
Income (loss) from continuing operations before income taxes
2.8
(0.7
)
3.4
1.2
Income tax benefit
0.5
2.4
0.2
0.7
Loss from discontinued operations, net
(0.1
)
(0.2
)
(0.1
)
(0.2
)
Net income
3.2
%
1.5
%
3.6
%
1.7
%
Note: Certain percentage totals do not sum due to rounding.
Other Financial and Performance Data: Adjusted
EBITDA(1) (in thousands)
$
6,960
$
7,364
$
25,616
$
25,622
As a % of net sales
11.0
%
11.7
%
10.4
%
10.6
%
Average weekly sales per restaurant: J.
Alexander’s / Grill Restaurants
$
113,100
$
114,100
$
112,100
$
112,900
Percent change
(0.9
)%
(0.7
)%
Stoney River Steakhouse and Grill
$
84,000
$
86,400
$
80,100
$
79,800
Percent change
(2.8
)%
0.4
%
Average weekly same store sales per restaurant:
J. Alexander’s / Grill Restaurants
$
114,100
$
114,600
$
113,400
$
113,800
Percent change
(0.4
)%
(0.4
)%
Stoney River Steakhouse and Grill
$
83,700
$
85,400
$
79,500
$
79,500
Percent change
(2.0
)%
0.0
%
(1) See definitions and reconciliation attached.
J. Alexander's Holdings, Inc.
and Subsidiaries
Condensed Consolidated Balance
Sheets
(Unaudited in
thousands)
December 29,
December 30,
2019
2018
Assets
Current assets: Cash and cash equivalents
$
8,803
$
8,783
Other current assets
9,289
8,682
Total current assets
18,092
17,465
Other assets
5,698
5,557
Deferred income taxes, net
2,918
539
Property and equipment, net
109,303
109,332
Right-of-use lease assets, net
70,277
-
Goodwill
15,737
15,737
Tradename and other indefinite-lived intangibles
25,648
25,647
Deferred charges, net
239
272
$
247,912
$
174,549
Liabilities and Stockholders'
Equity
Current liabilities
$
31,226
$
33,778
Long-term debt, net of portion classified as current and
unamortized deferred loan costs
2,845
5,866
Long-term lease liabilities
75,883
-
Deferred compensation obligations
7,103
6,251
Other long-term liabilities
138
6,995
Stockholders' equity
130,717
121,659
$
247,912
$
174,549
J. Alexander's Holdings, Inc.
and Subsidiaries
Condensed Consolidated
Statements of Cash Flows
(Unaudited in
thousands)
Year Ended
December 29,
December 30,
2019
2018
Cash flows from operating
activities:
Net income
$
8,817
$
3,999
Adjustments to reconcile net
income to net cash provided by operating activities:
Depreciation and amortization of
property and equipment
12,123
11,157
Share-based compensation
expense
1,498
3,765
Other, net
(1,675
)
(1,659
)
Changes in assets and
liabilities, net
(3,508
)
4,418
Net cash provided by operating
activities
17,255
21,680
Cash flows from investing
activities:
Purchase of property and
equipment
(11,937
)
(18,111
)
Other investing activities
(255
)
(497
)
Net cash used in investing
activities
(12,192
)
(18,608
)
Cash flows from financing
activities:
Payments on long-term debt
(5,000
)
(5,000
)
Other financing activities
(43
)
-
Net cash used in financing
activities
(5,043
)
(5,000
)
Increase/ (decrease) in cash and
cash equivalents
20
(1,928
)
Cash and cash equivalents at
beginning of the year
8,783
10,711
Cash and cash equivalents at end
of the year
$
8,803
$
8,783
Supplemental disclosures: Property and equipment obligations
accrued at beginning of the year
$
819
$
1,854
Property and equipment obligations accrued at end of the year
1,116
819
Cash paid for interest
578
795
Cash paid for income taxes
1,072
704
J. Alexander's Holdings, Inc. and Subsidiaries Non-GAAP
Financial Measures and Reconciliations (Unaudited in
thousands)
Non-GAAP Financial Measures Within this press release, we
present the following non-GAAP financial measures which we believe
are useful to investors as key measures of our operating
performance:
We define Adjusted Earnings Before Interest, Taxes, Depreciation
and Amortization, or “Adjusted EBITDA”, as net income before
interest expense, income tax expense (benefit), depreciation and
amortization, and adding asset impairment charges and restaurant
closing costs, loss on disposals of fixed assets, transaction,
contested proxy and other related expenses, non-cash compensation,
loss from discontinued operations, and pre-opening costs.
Adjusted EBITDA is a non-GAAP financial measure that we believe
is useful to investors because it provides information regarding
certain financial and business trends relating to our operating
results and excludes certain items that are not indicative of our
operations. Adjusted EBITDA does not fully consider the impact of
investing or financing transactions as it specifically excludes
depreciation and interest charges, which should also be considered
in the overall evaluation of our results of operations.
We define “Restaurant Operating Profit” as net sales less
restaurant operating costs, which are cost of sales, restaurant
labor and related costs, depreciation and amortization of
restaurant property and equipment, and other operating expenses.
Restaurant Operating Profit is a non-GAAP financial measure that we
believe is useful to investors because it provides a measure of
profitability for evaluation that does not reflect corporate
overhead and other non-operating or unusual costs. “Restaurant
Operating Profit Margin” is the ratio of Restaurant Operating
Profit to net sales.
Our management uses Adjusted EBITDA and Restaurant Operating
Profit to evaluate the effectiveness of our business strategies. We
caution investors that amounts presented in accordance with the
above definitions of Adjusted EBITDA or Restaurant Operating Profit
may not be comparable to similar measures disclosed by other
companies, because not all companies calculate these non-GAAP
financial measures in the same manner. Adjusted EBITDA and
Restaurant Operating Profit should not be assessed in isolation
from, or construed as a substitute for, net income, operating
income (loss) or other measures presented in accordance with
GAAP.
A reconciliation of these non-GAAP financial measures to the
closest GAAP measure is set forth in the following tables:
Quarter Ended
Year Ended
December 29,
December 30,
December 29,
December 30,
2019
2018
2019
2018
Net income
$
2,030
$
934
$
8,817
$
3,999
Income tax benefit
(330
)
(1,524
)
(568
)
(1,596
)
Interest expense
90
187
580
724
Depreciation and amortization
3,106
2,920
12,182
11,195
EBITDA
4,896
2,517
21,011
14,322
Transaction, contested proxy and other related expenses
410
4,715
1,178
5,648
Loss on disposal of fixed assets
28
80
135
202
Asset impairment charges and restaurant closing costs
-
3
(2
)
17
Non-cash compensation
1,071
(462
)
2,199
3,559
Loss from discontinued operations, net
53
120
236
459
Pre-opening expense
502
391
859
1,415
Adjusted EBITDA
$
6,960
$
7,364
$
25,616
$
25,622
Note: For purposes of computing Adjusted EBITDA, the $(450) and
$2,644 for the quarter and year ended December 30, 2018,
respectively, in non-cash compensation associated with a profits
interest grant issued to Black Knight Advisory Services, LLC
("BKAS") on October 6, 2015 has been included in "Non-cash
compensation" above. Additional expenses associated with the
Company's now terminated management agreement with BKAS totaling
$116 and $703 for the quarter and year ended December 30, 2018,
respectively, are included in general and administrative expenses
and have not been included in the reconciliation set forth above.
The management agreement was terminated during the fourth quarter
of 2018 as disclosed in the Company's Form 8-K filed Securities and
Exchange Commission on November 30, 2018, and therefore the Company
incurred no related expenses during the 2019 periods presented
above.
J. Alexander's Holdings, Inc.
and Subsidiaries
Non-GAAP Financial Measures
and Reconciliations
(Unaudited in
thousands)
Quarter Ended
Year Ended
December 29,
December 30,
December 29,
December 30,
2019
2018
2019
2018
Amount
Percent of Net Sales
Amount
Percent of Net Sales
Amount
Percent of Net Sales
Amount
Percent of Net Sales
Operating income (loss)
$
1,883
3.0
%
$
(361
)
-0.6
%
$
8,914
3.6
%
$
3,489
1.4
%
General and administrative expenses
4,934
7.8
%
3,362
5.3
%
18,750
7.6
%
20,485
8.5
%
Transaction, contested proxy and other related expenses
410
0.6
%
4,715
7.5
%
1,178
0.5
%
5,648
2.3
%
Pre-opening expense
502
0.8
%
391
0.6
%
859
0.3
%
1,415
0.6
%
Restaurant Operating Profit
$
7,729
12.2
%
$
8,107
12.8
%
$
29,701
12.0
%
$
31,037
12.8
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200313005217/en/
J. Alexander’s Holdings, Inc. Jessica Hagler Chief Financial
Officer (615) 269‐1900
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