HOUSTON, April 22, 2019 /PRNewswire/ -- Luby's, Inc.
(NYSE: LUB) ("Luby's") today announced unaudited financial results
for its twelve-week second quarter fiscal 2019 referred to as
"second quarter." Comparisons in this earnings release are
for the second quarter compared to second quarter fiscal 2018.
Second Quarter Key Metrics
- Same-store sales decreased 3.3%
- Culinary Contract Services sales increased by 28% to
$7.5 million, up from $5.9 million
- Income from continuing operations of $6.6 million (including $12.7 million in gains on sales of property)
compared to loss of $11.5 million in
the second quarter fiscal 2018
- Store level profit was 10.7%, up from 7.7% -- a 300 basis
points improvement (see non-GAAP reconciliation below)
- Adjusted EBITDA increased $2.9
million (see non-GAAP reconciliation below)
Chris Pappas, President and CEO,
commented, "We continue to make positive progress through our
turn-around efforts to reduce costs while repositioning our brands
for improved sales and increased store-level profit efficiencies to
drive better financial results in 2019 and beyond. Since the
beginning of the second quarter last year, we have closed 27
underperforming units and through our $45.0
million asset sales program that began last year, we have
generated proceeds of $34.7
million.
"Cost management remains a primary focus throughout our
organization and even after adjusting for the number of closed
stores, our cost run-rate came down in the second quarter.
Store-level profit as a percentage of restaurant sales improved in
the second quarter to 10.7% compared to 7.7% in the same quarter
last year due primarily to effective cost controls to reduce food
and supply expenses, efficient hourly labor scheduling, and
reductions in repairs and maintenance expense.
"While our same-store sale results for the quarter are below our
expectations for the full year, they improved sequentially at both
our Luby's Cafeteria and Fuddruckers brands. Our chief operating
officer, Todd Coutee, continues to
realign our organization by putting the right people in the right
positions. Todd and the team are also hard at work at several
initiatives to enhance sales at each brand with new everyday value
choices, focus on convenience and the dinner meal part, and
re-introducing a breakfast service option at several Luby's
locations.
"Lastly, as we transition to primarily a franchise model for
Fuddruckers, we converted five company-operated Fuddruckers
restaurants to franchise-operated restaurants. These
restaurants are in the San Antonio
market and were transferred in early April to a new franchise
operator with prior Fuddruckers experience. We continue to work on
additional re-franchising opportunities in markets outside of our
home market in Houston,
Texas."
2019 Same-Store Sales Year-Over-Year Comparison
|
Q1
2019
|
Q2
2019
|
YTD
2019
|
Luby's
Cafeterias
|
(3.0)%
|
(2.2)%
|
(2.6)%
|
Fuddruckers
|
(11.2)%
|
(5.3)%
|
(8.8)%
|
Combo locations
(1)
|
(11.1)%
|
(7.1)%
|
(9.5)%
|
Cheeseburger in
Paradise
|
(0.6)%
|
(3.1)%
|
(1.6)%
|
Total same-store
sales (2)
|
(5.5)%
|
(3.3)%
|
(4.6)%
|
|
|
(1)
|
Combo locations
consist of a side-by-side Luby's Cafeteria and Fuddruckers
Restaurant at one property location.
|
(2)
|
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 75 Luby's
Cafeterias locations, 48 Fuddruckers locations, all six Combo
locations, and one Cheeseburger in Paradise location that met the
definition of same-stores.
|
Second Quarter Restaurant Sales:
($ thousands)
Restaurant
Brand
|
Q2 2019
|
Q2 2018
|
Change ($)
|
Change (%)
|
Luby's
Cafeterias
|
$
|
44,366
|
|
$
|
47,261
|
|
$
|
(2,895)
|
|
(6.1)
|
%
|
Fuddruckers
|
16,156
|
|
19,941
|
|
(3,785)
|
|
(19.0)
|
%
|
Combo
locations
|
4,355
|
|
4,685
|
|
(330)
|
|
(7.0)
|
%
|
Cheeseburger in
Paradise
|
592
|
|
2,465
|
|
(1,873)
|
|
(76.0)
|
%
|
Other
Revenue
|
(100)
|
|
—
|
|
(100)
|
|
|
Total Restaurant
Sales
|
$
|
65,369
|
|
$
|
74,352
|
|
$
|
(8,983)
|
|
(12.1)
|
%
|
|
Note:
Luby's Cafeterias store count reduced from 82 at Q2 2018
start to 75 at Q2 2019 end; Fuddruckers store count reduced from 62
at Q2 2018 start to 48 at Q2 2019 end; Combo location count at six
(12 restaurants) at Q2 2018 start and at Q2 2019 end; Combo
restaurant sales change percent differs from Combo same-store sales
change percent due to rounding. Cheeseburger in Paradise store
count reduced from seven at Q2 2018 start to one at Q2 2019
end.
|
- Luby's Cafeterias sales decreased $2.9
million versus the second quarter fiscal 2018, due to the
closure of seven locations over the prior year and a 2.2% decrease
in Luby's same-store sales. The decrease in same-store sales was
the result of a 4.0% decrease in guest traffic, partially offset by
a 1.9% increase in average spend per guest.
- Fuddruckers sales at company-owned restaurants decreased
$3.8 million versus the second
quarter fiscal 2018, due to 14 restaurant closings and a 5.3%
decrease in same-store sales. The decrease in same-store sales was
the result of a 9.3% decrease in guest traffic, partially offset by
a 4.4% increase in average spend per guest.
- Combo location sales decreased $0.3
million, or 7.0%, versus second quarter fiscal 2018.
- Cheeseburger in Paradise sales decreased $1.9 million. The decrease in sales is related to
reducing operations to a single store compared to operating seven
locations in the second quarter fiscal 2018.
- Income from continuing operations was $6.6 million, or $0.22 per diluted share, compared to a loss of
$11.5 million, or $0.38 per diluted share, in the second quarter
fiscal 2018.
- 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 $7.0 million, or 10.7% of restaurant sales, in
the second quarter compared to $5.7
million, or 7.7% of restaurant sales, in the second quarter
fiscal 2018. The improvement in store level profit, despite a
decline in same-store sales, was the result of effective cost
management in several areas. Food costs as percent of restaurant
sales decreased as we focused on on a return to "classic favorites"
with favorable food costs as well as an overall higher average
spend per guest. Our restaurant supplies expense and repairs and
maintenance expense each experienced significant reductions over
prior year as these expenses continued to be opportunities of
focus. We also managed to reduce our hourly labor costs on a per
store basis through efficient restaurant staffing. Store level
profit is a non-GAAP measure, and reconciliation to loss from
continuing operations is presented after the financial
statements.
- Culinary Contract Services revenues increased by $1.7 million to $7.5
million with 33 operating locations during the second
quarter. New locations contributed approximately $1.4 million in revenue and locations continually
operated over the prior full year increased revenue approximately
$0.3 million. Culinary Contract
Services profit margin increased to 11.0% of Culinary Contract
Services sales in the second quarter compared to 3.6% in the second
quarter fiscal 2018.
- Selling, general and administrative expenses decreased
$0.2 million. Removing one-time
proxy-solicitation and communication costs of approximately
$1.0 million, selling, general and
administrative expenses decreased $1.2
million. The decrease reflects reductions in corporate staff
and related costs as well as reductions in other overhead expenses,
including general liability claims expense, corporate travel, and
corporate supplies expense. Included in selling, general, and
administrative expenses was approximately $0.8 million in marketing and advertising expense
which represents 1.0% of total sales.
Balance Sheet and Capital Expenditures
We ended the second quarter with net debt (total debt less cash)
of $29.6 million, a decrease from
$35.8 million at the end of fiscal
2018. During the second quarter, our capital expenditures decreased
to $0.7 million compared to
$3.7 million in the second quarter
fiscal 2018. At the end of the second quarter, we had $3.9 million in available cash, $10.8 million in restricted cash, and
$115.1 million in total shareholders'
equity.
Restaurant Counts:
|
August 29,
2018
|
|
FY19 YTD
Q2 Openings
|
|
FY19 YTD
Q2 Closings
|
|
March
13, 2019
|
Luby's
Cafeterias(1)
|
84
|
|
|
—
|
|
|
(3)
|
|
|
81
|
|
Fuddruckers
Restaurants(1)
|
60
|
|
|
—
|
|
|
(6)
|
|
|
54
|
|
Cheeseburger in
Paradise
|
2
|
|
|
—
|
|
|
(1)
|
|
|
1
|
|
Total
|
146
|
|
|
—
|
|
|
(10)
|
|
|
136
|
|
|
|
(1)
|
Includes 6
restaurants that are part of Combo locations
|
Conference Call
Luby's will host a conference call on April 22, 2019 at 10:00
a.m. Central Time to discuss further its second quarter
fiscal 2019 results. To access the call live, dial (412) 902-0030
and use the access code 13689012# 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 29, 2019
and may be accessed by calling (201) 612-7415 and using the access
code 13689012#. 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 136 restaurants nationally as
of March 13, 2019: 81 Luby's Cafeterias, 54 Fuddruckers, one
Cheeseburger in Paradise restaurants. Luby's is the franchisor for
102 Fuddruckers franchise locations across the United States (including Puerto Rico), Canada, Mexico, Colombia, and Panama. Luby's Culinary Contract Services
provides food service management to 33 sites consisting of
healthcare, corporate dining locations, sports stadiums, and sales
through retail grocery stores.
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
Rick Black / Ken Dennard
Investor Relations
713-529-6600
Luby's,
Inc.
|
Consolidated
Statements of Operations (unaudited)
|
(In thousands,
except per share data)
|
|
|
Quarter
Ended
|
|
Two Quarters
Ended
|
|
March
13,
2019
|
|
March
14,
2018
|
|
March
13,
2019
|
|
March
14,
2018
|
|
(12
weeks)
|
|
(12
weeks)
|
|
(28
weeks)
|
|
(28
weeks)
|
SALES:
|
|
|
|
|
|
|
|
Restaurant
sales
|
$
|
65,369
|
|
|
$
|
74,352
|
|
|
$
|
156,468
|
|
|
$
|
178,934
|
|
Culinary contract
services
|
7,543
|
|
|
5,889
|
|
|
17,039
|
|
|
12,774
|
|
Franchise
revenue
|
1,421
|
|
|
1,401
|
|
|
3,644
|
|
|
3,288
|
|
Vending
revenue
|
90
|
|
|
151
|
|
|
190
|
|
|
294
|
|
TOTAL
SALES
|
74,423
|
|
|
81,793
|
|
|
177,341
|
|
|
195,290
|
|
COSTS AND
EXPENSES:
|
|
|
|
|
|
|
|
Cost of
food
|
18,144
|
|
|
21,181
|
|
|
43,226
|
|
|
50,936
|
|
Payroll and related
costs
|
24,730
|
|
|
28,512
|
|
|
59,244
|
|
|
66,640
|
|
Other operating
expenses
|
11,412
|
|
|
14,360
|
|
|
27,914
|
|
|
33,858
|
|
Occupancy
costs
|
4,166
|
|
|
4,707
|
|
|
10,041
|
|
|
10,968
|
|
Opening
costs
|
11
|
|
|
331
|
|
|
44
|
|
|
406
|
|
Cost of culinary
contract services
|
6,717
|
|
|
5,677
|
|
|
15,532
|
|
|
12,009
|
|
Cost of franchise
operations
|
247
|
|
|
369
|
|
|
519
|
|
|
856
|
|
Depreciation and
amortization
|
3,222
|
|
|
3,998
|
|
|
8,126
|
|
|
9,351
|
|
Selling, general and
administrative expenses
|
9,017
|
|
|
9,188
|
|
|
20,240
|
|
|
20,712
|
|
Provision for asset
impairments and restaurant closings
|
1,195
|
|
|
1,407
|
|
|
2,422
|
|
|
2,252
|
|
Net loss (gain) on
disposition of property and equipment
|
(12,651)
|
|
|
(204)
|
|
|
(12,501)
|
|
|
18
|
|
Total costs and
expenses
|
66,210
|
|
|
89,526
|
|
|
174,807
|
|
|
208,006
|
|
INCOME (LOSS) FROM
OPERATIONS
|
8,213
|
|
|
(7,733)
|
|
|
2,534
|
|
|
(12,716)
|
|
Interest
income
|
19
|
|
|
5
|
|
|
19
|
|
|
11
|
|
Interest
expense
|
(1,554)
|
|
|
(545)
|
|
|
(3,269)
|
|
|
(1,194)
|
|
Other income,
net
|
55
|
|
|
194
|
|
|
86
|
|
|
309
|
|
Income (loss) before
income taxes and discontinued operations
|
6,733
|
|
|
(8,079)
|
|
|
(630)
|
|
|
(13,590)
|
|
Provision for income
taxes
|
93
|
|
|
3,382
|
|
|
213
|
|
|
3,373
|
|
Income (loss) from
continuing operations
|
6,640
|
|
|
(11,461)
|
|
|
(843)
|
|
|
(16,963)
|
|
Loss from
discontinued operations, net of income taxes
|
(8)
|
|
|
(110)
|
|
|
(13)
|
|
|
(145)
|
|
NET INCOME
(LOSS)
|
$
|
6,632
|
|
|
$
|
(11,571)
|
|
|
$
|
(856)
|
|
|
$
|
(17,108)
|
|
Income (loss) per
share from continuing operations:
|
|
|
|
|
|
|
|
Basic
|
$
|
0.22
|
|
|
$
|
(0.38)
|
|
|
$
|
(0.03)
|
|
|
$
|
(0.57)
|
|
Assuming
dilution
|
$
|
0.22
|
|
|
$
|
(0.38)
|
|
|
$
|
(0.03)
|
|
|
$
|
(0.57)
|
|
Loss per share from
discontinued operations:
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.00)
|
|
|
$
|
(0.01)
|
|
|
$
|
(0.00)
|
|
|
$
|
(0.00)
|
|
Assuming
dilution
|
$
|
(0.00)
|
|
|
$
|
(0.01)
|
|
|
$
|
(0.00)
|
|
|
$
|
(0.00)
|
|
Net income (loss) per
share:
|
|
|
|
|
|
|
|
Basic
|
$
|
0.22
|
|
|
$
|
(0.39)
|
|
|
$
|
(0.03)
|
|
|
$
|
(0.57)
|
|
Assuming
dilution
|
$
|
0.22
|
|
|
$
|
(0.39)
|
|
|
$
|
(0.03)
|
|
|
$
|
(0.57)
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
29,769
|
|
|
29,950
|
|
|
29,671
|
|
|
29,802
|
|
Assuming
dilution
|
29,799
|
|
|
29,950
|
|
|
29,671
|
|
|
29,802
|
|
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
|
|
Two Quarters
Ended
|
|
March
13,
2019
|
|
March
14,
2018
|
|
March
13,
2019
|
|
March
14,
2018
|
|
(12
weeks)
|
|
(12
weeks)
|
|
(28
weeks)
|
|
(28
weeks)
|
|
|
|
|
|
|
|
|
Restaurant
sales
|
87.8
|
%
|
|
90.9
|
%
|
|
88.2
|
%
|
|
91.6
|
%
|
Culinary contract
services
|
10.1
|
%
|
|
7.2
|
%
|
|
9.6
|
%
|
|
6.5
|
%
|
Franchise
revenue
|
1.9
|
%
|
|
1.7
|
%
|
|
2.1
|
%
|
|
1.7
|
%
|
Vending
revenue
|
0.1
|
%
|
|
0.2
|
%
|
|
0.1
|
%
|
|
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
|
%
|
|
28.5
|
%
|
|
27.6
|
%
|
|
28.5
|
%
|
Payroll and related
costs
|
37.8
|
%
|
|
38.3
|
%
|
|
37.9
|
%
|
|
37.2
|
%
|
Other operating
expenses
|
17.5
|
%
|
|
19.3
|
%
|
|
17.8
|
%
|
|
18.9
|
%
|
Occupancy
costs
|
6.4
|
%
|
|
6.3
|
%
|
|
6.4
|
%
|
|
6.1
|
%
|
Vending
revenue
|
(0.1)
|
%
|
|
(0.2)
|
%
|
|
(0.1)
|
%
|
|
(0.2)
|
%
|
Store level
profit
|
10.7
|
%
|
|
7.7
|
%
|
|
10.4
|
%
|
|
9.4
|
%
|
|
|
|
|
|
|
|
|
(As a percentage
of total sales)
|
|
|
|
|
|
|
|
Marketing and
advertising expenses
|
1.0
|
%
|
|
0.9
|
%
|
|
1.0
|
%
|
|
1.1
|
%
|
One-time
expenses1
|
1.4
|
%
|
|
|
|
1.2
|
%
|
|
|
General and
administrative expenses
|
9.7
|
%
|
|
10.3
|
%
|
|
9.2
|
%
|
|
9.5
|
%
|
Selling, general and
administrative expenses
|
12.1
|
%
|
|
11.2
|
%
|
|
11.4
|
%
|
|
10.6
|
%
|
|
1
One-time expenses include proxy solicitation and communication
costs and severance expense
|
Luby's,
Inc.
|
Consolidated
Balance Sheets
|
(In thousands,
except per share data)
|
|
|
March
13,
2019
|
|
August
29,
2018
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
Current
Assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
3,907
|
|
|
$
|
3,722
|
|
Restricted cash and
cash equivalents
|
10,832
|
|
|
—
|
|
Trade accounts and
other receivables, net
|
9,201
|
|
|
8,787
|
|
Food and supply
inventories
|
4,067
|
|
|
4,022
|
|
Prepaid
expenses
|
2,688
|
|
|
3,219
|
|
Total current
assets
|
30,695
|
|
|
19,750
|
|
Property held for
sale
|
14,940
|
|
|
19,469
|
|
Assets related to
discontinued operations
|
1,813
|
|
|
1,813
|
|
Property and
equipment, net
|
130,921
|
|
|
138,287
|
|
Intangible assets,
net
|
17,286
|
|
|
18,179
|
|
Goodwill
|
555
|
|
|
555
|
|
Other
assets
|
1,372
|
|
|
1,936
|
|
Total
assets
|
$
|
197,582
|
|
|
$
|
199,989
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Current
Liabilities:
|
|
|
|
Accounts
payable
|
$
|
9,192
|
|
|
$
|
10,457
|
|
Liabilities related
to discontinued operations
|
4
|
|
|
14
|
|
Current portion of
credit facility debt
|
—
|
|
|
39,338
|
|
Accrued expenses and
other liabilities
|
25,030
|
|
|
31,755
|
|
Total current
liabilities
|
34,226
|
|
|
81,564
|
|
Credit facility debt,
less current portion
|
40,674
|
|
|
—
|
|
Liabilities related
to discontinued operations
|
16
|
|
|
16
|
|
Other
liabilities
|
7,583
|
|
|
5,781
|
|
Total
liabilities
|
$
|
82,499
|
|
|
$
|
87,361
|
|
Commitments and
Contingencies
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
Common stock, $0.32
par value; 100,000,000 shares authorized; shares issued were
30,289,492 and 30,003,642; and shares outstanding were 29,789,492
and 29,503,642, at March 13, 2019 and August 29, 2018,
respectively
|
9,693
|
|
|
9,602
|
|
Paid-in
capital
|
34,614
|
|
|
33,872
|
|
Retained
earnings
|
75,551
|
|
|
73,929
|
|
Less cost of treasury
stock, 500,000 shares
|
(4,775)
|
|
|
(4,775)
|
|
Total shareholders'
equity
|
115,083
|
|
|
112,628
|
|
Total liabilities and
shareholders' equity
|
$
|
197,582
|
|
|
$
|
199,989
|
|
Luby's,
Inc.
|
Consolidated
Statements of Cash Flows (unaudited)
|
(In
thousands)
|
|
|
Two Quarters
Ended
|
|
March
13,
2019
|
|
March
14,
2018
|
|
(28
weeks)
|
|
(28
weeks)
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
Net loss
|
$
|
(856)
|
|
|
$
|
(17,108)
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
Provision for asset
impairments and net losses (gains) on property sales
|
(10,079)
|
|
|
2,271
|
|
Depreciation and
amortization
|
8,126
|
|
|
9,351
|
|
Amortization of debt
issuance cost
|
811
|
|
|
70
|
|
Share-based
compensation expense
|
823
|
|
|
1,252
|
|
Deferred tax
provision
|
—
|
|
|
3,494
|
|
Cash used in
operating activities before changes in operating assets and
liabilities
|
(1,175)
|
|
|
(670)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
Increase in trade
accounts and other receivables
|
(414)
|
|
|
(376)
|
|
Increase in food and
supply inventories
|
(45)
|
|
|
(188)
|
|
Decrease in prepaid
expenses and other assets
|
1,115
|
|
|
218
|
|
Decrease in accounts
payable, accrued expenses and other liabilities
|
(7,110)
|
|
|
(1,121)
|
|
Net cash used in
operating activities
|
(7,629)
|
|
|
(2,137)
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
Proceeds from
disposal of assets and property held for sale
|
20,444
|
|
|
2,805
|
|
Insurance
proceeds
|
—
|
|
|
756
|
|
Purchases of property
and equipment
|
(1,781)
|
|
|
(8,030)
|
|
Net cash provided by
(used in) investing activities
|
18,663
|
|
|
(4,469)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
Revolver
borrowings
|
34,500
|
|
|
47,900
|
|
Revolver
repayments
|
(54,500)
|
|
|
(39,300)
|
|
Proceeds from term
loan
|
58,400
|
|
|
—
|
|
Term loan
repayments
|
(35,169)
|
|
|
(1,415)
|
|
Debt issuance
costs
|
(3,236)
|
|
|
—
|
|
Taxes paid on equity
withheld
|
(12)
|
|
|
(70)
|
|
Net cash provided by
(used in) financing activities
|
(17)
|
|
|
7,115
|
|
Net increase in cash
and cash equivalents and restricted cash
|
11,017
|
|
|
509
|
|
Cash and cash
equivalents and restricted cash at beginning of period
|
3,722
|
|
|
1,096
|
|
Cash and cash
equivalents and restricted cash at end of period
|
$
|
14,739
|
|
|
$
|
1,605
|
|
Cash paid
for:
|
|
|
|
Income
taxes
|
$
|
51
|
|
|
$
|
—
|
|
Interest
|
1,951
|
|
|
1,065
|
|
Store Level Profit
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:
($
thousands)
|
Quarter
Ended
|
|
Two Quarters
Ended
|
|
March
13,
2019
|
|
March
14,
2018
|
|
March
13,
2019
|
|
March
14,
2018
|
|
(12
weeks)
|
|
(12
weeks)
|
|
(28
weeks)
|
|
(28
weeks)
|
|
|
|
|
|
|
|
|
Store level
profit
|
$
|
7,007
|
|
|
$
|
5,743
|
|
|
$
|
16,233
|
|
|
$
|
16,826
|
|
|
|
|
|
|
|
|
|
Plus:
|
|
|
|
|
|
|
|
Sales from culinary
contract services
|
7,543
|
|
|
5,889
|
|
|
17,039
|
|
|
12,774
|
|
Sales from franchise
operations
|
1,421
|
|
|
1,401
|
|
|
3,644
|
|
|
3,288
|
|
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
|
|
Opening
costs
|
11
|
|
|
331
|
|
|
44
|
|
|
406
|
|
Cost of culinary
contract services
|
6,717
|
|
|
5,677
|
|
|
15,532
|
|
|
12,009
|
|
Cost of franchise
operations
|
247
|
|
|
369
|
|
|
519
|
|
|
856
|
|
Depreciation and
amortization
|
3,222
|
|
|
3,998
|
|
|
8,126
|
|
|
9,351
|
|
Selling, general and
administrative expenses
|
9,017
|
|
|
9,188
|
|
|
20,240
|
|
|
20,712
|
|
Provision for asset
impairments and restaurant closings
|
1,195
|
|
|
1,407
|
|
|
2,422
|
|
|
2,252
|
|
Net loss (gain) on
disposition of property and equipment
|
(12,651)
|
|
|
(204)
|
|
|
(12,501)
|
|
|
18
|
|
Interest
income
|
(19)
|
|
|
(5)
|
|
|
(19)
|
|
|
(11)
|
|
Interest
expense
|
1,554
|
|
|
545
|
|
|
3,269
|
|
|
1,194
|
|
Other income,
net
|
(55)
|
|
|
(194)
|
|
|
(86)
|
|
|
(309)
|
|
Provision for income
taxes
|
93
|
|
|
3,382
|
|
|
213
|
|
|
3,373
|
|
Income (loss) from
continuing operations
|
$
|
6,640
|
|
|
$
|
(11,461)
|
|
|
$
|
(843)
|
|
|
$
|
(16,963)
|
|
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 loss (gain) on
disposing of property and equipment, provision for asset
impairments and restaurant closings, non-cash compensation expense,
franchise taxes, and decrease / (increase) in fair value of
derivatives.
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
|
|
Two Quarters
Ended
|
|
March
13,
2019
|
|
March
14,
2018
|
|
March
13,
2019
|
|
March
14,
2018
|
|
(12
weeks)
|
|
(12
weeks)
|
|
(28
weeks)
|
|
(28
weeks)
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
$
|
6,640
|
|
|
$
|
(11,461)
|
|
|
$
|
(843)
|
|
|
$
|
(16,963)
|
|
Depreciation and
amortization
|
3,222
|
|
|
3,998
|
|
|
8,126
|
|
|
9,351
|
|
Provision for income
taxes
|
93
|
|
|
3,382
|
|
|
213
|
|
|
3,373
|
|
Interest
expense
|
1,554
|
|
|
545
|
|
|
3,269
|
|
|
1,194
|
|
Interest
income
|
(19)
|
|
|
(5)
|
|
|
(19)
|
|
|
(11)
|
|
Net loss (gain) on
disposition of property and equipment
|
(12,651)
|
|
|
(204)
|
|
|
(12,501)
|
|
|
18
|
|
Provision for asset
impairments and restaurant closings
|
1,195
|
|
|
1,407
|
|
|
2,422
|
|
|
2,252
|
|
Non-cash compensation
expense
|
398
|
|
|
291
|
|
|
823
|
|
|
848
|
|
Franchise
Taxes
|
42
|
|
|
42
|
|
|
108
|
|
|
101
|
|
Decrease / (Increase)
in Fair Value of Derivative
|
—
|
|
|
(454)
|
|
|
88
|
|
|
(627)
|
|
Adjusted
EBITDA
|
$
|
474
|
|
|
$
|
(2,459)
|
|
|
$
|
1,686
|
|
|
$
|
(464)
|
|
View original
content:http://www.prnewswire.com/news-releases/lubys-reports-second-quarter-fiscal-2019-results-300835447.html
SOURCE Luby's, Inc.