HOUSTON, July 15, 2019 /PRNewswire/ -- Luby's, Inc.
(NYSE: LUB) ("Luby's") today announced unaudited financial results
for its twelve-week third quarter fiscal 2019 referred to as "third
quarter." Comparisons in this earnings release are for the
third quarter compared to third quarter fiscal 2018.
Third Quarter Key Metrics
- Same-store sales decreased 4.0%
- Culinary Contract Services sales increased by 14% to
$7.6 million, up from $6.6 million and segment profit increased
$0.2 million with margins above
10%
- Five company owned Fuddruckers restaurants were
re-franchised.
- Loss from continuing operations of $5.3
million compared to loss of $14.1
million in the third quarter fiscal 2018
- Store level profit as a percent of restaurant sales was 10.2%,
up from 8.5% -- a 170 basis points improvement (see non-GAAP
reconciliation below)
- Adjusted EBITDA decreased $0.3
million (see non-GAAP reconciliation below)
Chris Pappas, President and CEO,
commented, "Our turn-around plan is two-fold: establishing
appropriate cost structures for our business and growing guest
traffic and sales. We continue to make progress in
efficiently managing restaurant-level costs, resulting in a store
level profit improvement, despite the decline in same-store
sales in the third quarter. However, we recognize that our
turn-around depends on growing guest traffic and sales. While
our same-store sales have not yet achieved the improvement we are
striving for, we do see a number of positive developments based on
our recent efforts and initiatives aimed at growing guest traffic.
For instance, at our cafeteria brand, guest traffic has continually
trended better throughout the current fiscal year. At both of
our core brands, we are providing menu price points that offer
compelling everyday value options starting in the $7.00 to $9.00
range, while still including additional premium offerings at higher
price points. This value orientation is helping to improve our
guest traffic trends and will be central to growing sales.
Our culinary contract services business added seven net new
locations compared to last year, which are generating incremental
sales and profit. This continues to be a terrific segment of
our business with significant growth potential. We continue to
pursue new clients for our signature offering. In our
Fuddruckers franchise system, we made solid progress on our plans
to transition to a primarily franchise model outside our core
Houston, Texas market: five
locations in the San Antonio
market transitioned from company-operated restaurants to
franchise-operated locations.
Through the leadership of our chief operating officer,
Todd Coutee, the re-alignment of
team members into the right positions is substantially complete in
restaurant operations. The restaurant leadership team and the
entire organization are fully focused on increasing guest traffic
by driving restaurant and guest service initiatives to delight our
guests. We are putting all the pieces in place so that when we turn
the corner and return to sales growth, we are better positioned for
future profitability."
2019 Same-Store Sales Year-Over-Year Comparison
|
Q1
2019
|
Q2
2019
|
Q3
2019
|
YTD
2019
|
Luby's
Cafeterias
|
(3.0)%
|
(2.2)%
|
(3.1)%
|
(2.8)%
|
Fuddruckers
|
(11.2)%
|
(5.3)%
|
(6.1)%
|
(8.0)%
|
Combo locations
(1)
|
(11.1)%
|
(7.1)%
|
(4.8)%
|
(8.1)%
|
Cheeseburger in
Paradise
|
(0.6)%
|
(3.1)%
|
(4.4)%
|
(2.6)%
|
Total same-store
sales (2)
|
(5.5)%
|
(3.3)%
|
(4.0)%
|
(4.4)%
|
(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 third quarter, there were 74 Luby's
Cafeterias locations, 43 Fuddruckers locations, all six Combo
locations, and one Cheeseburger in Paradise location that met the
definition of same-stores.
|
Third Quarter Restaurant Sales:
($ thousands)
Restaurant
Brand
|
Q3
2019
|
Q3
2018
|
Change
($)
|
Change
(%)
|
Luby's
Cafeterias
|
$
|
45,062
|
|
$
|
49,067
|
|
$
|
(4,005)
|
|
(8.2)
|
%
|
Fuddruckers
|
15,312
|
|
20,622
|
|
(5,310)
|
|
(25.7)
|
%
|
Combo
locations
|
4,591
|
|
4,821
|
|
(230)
|
|
(4.8)
|
%
|
Cheeseburger in
Paradise
|
778
|
|
3,293
|
|
(2,515)
|
|
(76.4)
|
%
|
Other
Revenue
|
(132)
|
|
—
|
|
(132)
|
|
|
Total Restaurant
Sales
|
$
|
65,611
|
|
$
|
77,803
|
|
$
|
(12,192)
|
|
(15.7)
|
%
|
Note:
Luby's Cafeterias store count reduced from 80 at Q3 2018
start to 74 at Q3 2019 end; Fuddruckers store count reduced from 61
at Q3 2018 start to 43 at Q3 2019 end; Combo location count at six
(12 restaurants) at Q3 2018 start and at Q3 2019 end; Cheeseburger
in Paradise store count reduced from seven at Q3 2018 start to one
at Q3 2019 end.
|
- Luby's Cafeterias sales decreased $4.0
million versus the third quarter fiscal 2018, due to the
closure of six locations over the prior year and a 3.1% decrease in
Luby's same-store sales. The decrease in same-store sales was the
result of a 1.2% decrease in guest traffic and a 2.0% decrease in
average spend per guest.
- Fuddruckers sales at company-owned restaurants decreased
$5.3 million versus the third quarter
fiscal 2018, due to 18 restaurant closings and a 6.1% decrease in
same-store sales. The decrease in same-store sales was the result
of a 8.7% decrease in guest traffic, partially offset by a 2.8%
increase in average spend per guest.
- Combo location sales decreased $0.2
million, or 4.8%, versus third quarter fiscal 2018.
- Cheeseburger in Paradise sales decreased $2.5 million. The decrease in sales is related to
reducing operations to a single store compared to operating seven
locations in the third quarter fiscal 2018.
- Loss from continuing operations was $5.3
million, or $0.18 per diluted
share, compared to a loss of $14.1
million, or $0.47 per diluted
share, in the third 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 $6.7 million, or 10.2% of restaurant sales, in
the third quarter compared to $6.6
million, or 8.5% of restaurant sales, in the third 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 a return to "classic favorites"
with favorable food costs. Our restaurant supplies expense and
repairs and maintenance expense continued to experience significant
reductions over prior year as these areas remained areas of
opportunity for cost management. We also continue to effectively
manage 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 revenue increased by $0.9 million to $7.6
million with 32 operating locations during the third
quarter. New locations contributed the bulk of the revenue
increase. Culinary Contract Services profit margin increased to
10.3% of Culinary Contract Services sales in the third quarter
compared to 8.1% in the third quarter fiscal 2018.
- Selling, general and administrative expenses increased
$0.9 million. Included in this
increase is additional marketing and advertising spending of
$0.6 million as we commit to
investments in our digital media efforts. Also included in the net
increase is approximately $1.2
million increase in professional fees related to information
technology, accounting and other functions. Of the $1.2 million increase, $0.7 million relates to one-time restructuring
related consulting fees surrounding software upgrades and
evaluations of our cost structure and revenue enhancing priorities.
Our corporate salary, benefits, travel, and supplies expense
decreased over $0.8 million. The
marketing and advertising component of selling, general, and
administrative expenses was approximately $1.3 million which represents 1.7% of total
sales.
Balance Sheet and Capital Expenditures
We ended the third quarter with net debt (total debt less cash)
of $32.6 million, a decrease from
$35.8 million at the end of fiscal
2018. During the third quarter, our capital expenditures decreased
to $1.1 million compared to
$3.7 million in the third quarter
fiscal 2018. At the end of the third quarter, we had $3.2 million in available cash, $9.6 million in restricted cash, and $110.2 million in total shareholders' equity.
Restaurant Counts:
|
August 29,
2018
|
|
FY19 YTD Q3
Openings
|
|
FY19 YTD Q3
Closings
|
|
June 5,
2019
|
Luby's
Cafeterias(1)
|
84
|
|
|
—
|
|
|
(4)
|
|
|
80
|
|
Fuddruckers
Restaurants(1)
|
60
|
|
|
—
|
|
|
(11)
|
|
|
49
|
|
Cheeseburger in
Paradise
|
2
|
|
|
—
|
|
|
(1)
|
|
|
1
|
|
Total
|
146
|
|
|
—
|
|
|
(16)
|
|
|
130
|
|
(1)
|
Includes 6
restaurants that are part of Combo locations
|
Conference Call
Luby's will host a conference call on July 15, 2019 at 10:00
a.m. Central Time to discuss further its third quarter
fiscal 2019 results. To access the call live, dial (412) 902-0030
and use the access code 13691758# 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 July 22, 2019
and may be accessed by calling (201) 612-7415 and using the access
code 13691758#. 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 130 restaurants nationally as
of June 5, 2019: 80 Luby's Cafeterias, 49 Fuddruckers, one
Cheeseburger in Paradise restaurants. Luby's is the franchisor for
107 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 32 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.
Luby's,
Inc.
|
Consolidated
Statements of Operations (unaudited)
|
(In thousands,
except per share data)
|
|
|
Quarter
Ended
|
|
Three Quarters
Ended
|
|
June 5,
2019
|
|
June 6,
2018
|
|
June 5,
2019
|
|
June 6,
2018
|
|
(12
weeks)
|
|
(12
weeks)
|
|
(40
weeks)
|
|
(40
weeks)
|
SALES:
|
|
|
|
|
|
|
|
Restaurant
sales
|
$
|
65,611
|
|
|
$
|
77,803
|
|
|
$
|
222,079
|
|
|
$
|
256,737
|
|
Culinary contract
services
|
7,571
|
|
|
6,639
|
|
|
24,610
|
|
|
19,413
|
|
Franchise
revenue
|
1,482
|
|
|
1,444
|
|
|
5,126
|
|
|
4,732
|
|
Vending
revenue
|
102
|
|
|
118
|
|
|
292
|
|
|
412
|
|
TOTAL
SALES
|
74,766
|
|
|
86,004
|
|
|
252,107
|
|
|
281,294
|
|
COSTS AND
EXPENSES:
|
|
|
|
|
|
|
|
Cost of
food
|
18,478
|
|
|
22,255
|
|
|
61,707
|
|
|
73,190
|
|
Payroll and related
costs
|
25,015
|
|
|
29,392
|
|
|
84,258
|
|
|
96,032
|
|
Other operating
expenses
|
11,491
|
|
|
15,023
|
|
|
39,404
|
|
|
48,881
|
|
Occupancy
costs
|
4,023
|
|
|
4,609
|
|
|
14,064
|
|
|
15,577
|
|
Opening
costs
|
6
|
|
|
85
|
|
|
49
|
|
|
490
|
|
Cost of culinary
contract services
|
6,791
|
|
|
6,104
|
|
|
22,324
|
|
|
18,113
|
|
Cost of franchise
operations
|
330
|
|
|
341
|
|
|
849
|
|
|
1,198
|
|
Depreciation and
amortization
|
2,927
|
|
|
4,050
|
|
|
11,052
|
|
|
13,402
|
|
Selling, general and
administrative expenses
|
9,426
|
|
|
8,507
|
|
|
29,666
|
|
|
29,219
|
|
Provision for asset
impairments and restaurant closings
|
675
|
|
|
4,464
|
|
|
3,097
|
|
|
6,716
|
|
Net loss (gain) on
disposition of property and equipment
|
(434)
|
|
|
154
|
|
|
(12,935)
|
|
|
172
|
|
Total costs and
expenses
|
78,728
|
|
|
94,984
|
|
|
253,535
|
|
|
302,990
|
|
LOSS FROM
OPERATIONS
|
(3,962)
|
|
|
(8,980)
|
|
|
(1,428)
|
|
|
(21,696)
|
|
Interest
income
|
11
|
|
|
1
|
|
|
30
|
|
|
12
|
|
Interest
expense
|
(1,324)
|
|
|
(1,042)
|
|
|
(4,593)
|
|
|
(2,235)
|
|
Other income,
net
|
112
|
|
|
9
|
|
|
198
|
|
|
317
|
|
Loss before income
taxes and discontinued operations
|
(5,163)
|
|
|
(10,012)
|
|
|
(5,793)
|
|
|
(23,602)
|
|
Provision for income
taxes
|
132
|
|
|
4,121
|
|
|
346
|
|
|
7,494
|
|
Loss from continuing
operations
|
(5,295)
|
|
|
(14,133)
|
|
|
(6,139)
|
|
|
(31,096)
|
|
Loss from
discontinued operations, net of income taxes
|
(6)
|
|
|
(463)
|
|
|
(18)
|
|
|
(608)
|
|
NET LOSS
|
$
|
(5,301)
|
|
|
$
|
(14,596)
|
|
|
$
|
(6,157)
|
|
|
$
|
(31,704)
|
|
Loss per share from
continuing operations:
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.18)
|
|
|
$
|
(0.47)
|
|
|
$
|
(0.21)
|
|
|
$
|
(1.04)
|
|
Assuming
dilution
|
$
|
(0.18)
|
|
|
$
|
(0.47)
|
|
|
$
|
(0.21)
|
|
|
$
|
(1.04)
|
|
Loss per share from
discontinued operations:
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.00)
|
|
|
$
|
(0.02)
|
|
|
$
|
(0.00)
|
|
|
$
|
(0.02)
|
|
Assuming
dilution
|
$
|
(0.00)
|
|
|
$
|
(0.02)
|
|
|
$
|
(0.00)
|
|
|
$
|
(0.02)
|
|
Net loss per
share:
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.18)
|
|
|
$
|
(0.49)
|
|
|
$
|
(0.21)
|
|
|
$
|
(1.06)
|
|
Assuming
dilution
|
$
|
(0.18)
|
|
|
$
|
(0.49)
|
|
|
$
|
(0.21)
|
|
|
$
|
(1.06)
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
29,874
|
|
|
30,005
|
|
|
29,732
|
|
|
29,863
|
|
Assuming
dilution
|
29,874
|
|
|
30,005
|
|
|
29,732
|
|
|
29,863
|
|
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
|
|
Three Quarters
Ended
|
|
June 5,
2019
|
|
June 6,
2018
|
|
June 5,
2019
|
|
June 6,
2018
|
|
(12
weeks)
|
|
(12
weeks)
|
|
(40
weeks)
|
|
(40
weeks)
|
|
|
|
|
|
|
|
|
Restaurant
sales
|
87.8
|
%
|
|
90.5
|
%
|
|
88.1
|
%
|
|
91.3
|
%
|
Culinary contract
services
|
10.1
|
%
|
|
7.7
|
%
|
|
9.8
|
%
|
|
6.9
|
%
|
Franchise
revenue
|
2.0
|
%
|
|
1.7
|
%
|
|
2.0
|
%
|
|
1.7
|
%
|
Vending
revenue
|
0.1
|
%
|
|
0.1
|
%
|
|
0.1
|
%
|
|
0.1
|
%
|
TOTAL
SALES
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
COSTS AND
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(As a percentage
of restaurant sales)
|
|
|
|
|
|
|
|
Cost of
food
|
28.2
|
%
|
|
28.6
|
%
|
|
27.8
|
%
|
|
28.5
|
%
|
Payroll and related
costs
|
38.1
|
%
|
|
37.8
|
%
|
|
37.9
|
%
|
|
37.4
|
%
|
Other operating
expenses
|
17.5
|
%
|
|
19.3
|
%
|
|
17.7
|
%
|
|
19.0
|
%
|
Occupancy
costs
|
6.1
|
%
|
|
5.9
|
%
|
|
6.3
|
%
|
|
6.1
|
%
|
Vending
revenue
|
(0.2)
|
%
|
|
(0.2)
|
%
|
|
(0.1)
|
%
|
|
(0.2)
|
%
|
Store level
profit
|
10.2
|
%
|
|
8.5
|
%
|
|
10.3
|
%
|
|
9.1
|
%
|
|
|
|
|
|
|
|
|
(As a percentage
of total sales)
|
|
|
|
|
|
|
|
Marketing and
advertising expenses
|
1.7
|
%
|
|
0.8
|
%
|
|
1.2
|
%
|
|
1.0
|
%
|
One-time
expenses1
|
—
|
%
|
|
—
|
%
|
|
0.7
|
%
|
|
—
|
%
|
Restructuring
Costs2
|
0.9
|
%
|
|
—
|
%
|
|
0.4
|
%
|
|
—
|
%
|
General and
administrative expenses
|
10.0
|
%
|
|
9.1
|
%
|
|
9.5
|
%
|
|
9.4
|
%
|
Selling, general and
administrative expenses
|
12.6
|
%
|
|
9.9
|
%
|
|
11.8
|
%
|
|
10.4
|
%
|
1 One-time
expenses include proxy solicitation and communication costs,
severance expense
|
2
Restructuring costs include primarily certain consulting fees and
systems upgrades
|
Luby's,
Inc.
|
Consolidated
Balance Sheets
|
(In thousands,
except per share data)
|
|
|
|
|
|
June 5,
2019
|
|
August 29,
2018
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
Current
Assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
3,193
|
|
|
$
|
3,722
|
|
Restricted cash and
cash equivalents
|
9,588
|
|
|
—
|
|
Trade accounts and
other receivables, net
|
9,667
|
|
|
8,787
|
|
Food and supply
inventories
|
3,874
|
|
|
4,022
|
|
Prepaid
expenses
|
2,725
|
|
|
3,219
|
|
Total current
assets
|
29,047
|
|
|
19,750
|
|
Property held for
sale
|
15,031
|
|
|
19,469
|
|
Assets related to
discontinued operations
|
1,813
|
|
|
1,813
|
|
Property and
equipment, net
|
127,189
|
|
|
138,287
|
|
Intangible assets,
net
|
17,105
|
|
|
18,179
|
|
Goodwill
|
555
|
|
|
555
|
|
Other
assets
|
1,326
|
|
|
1,936
|
|
Total
assets
|
$
|
192,066
|
|
|
$
|
199,989
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Current
Liabilities:
|
|
|
|
Accounts
payable
|
$
|
8,475
|
|
|
$
|
10,457
|
|
Liabilities related
to discontinued operations
|
9
|
|
|
14
|
|
Current portion of
credit facility debt
|
—
|
|
|
39,338
|
|
Accrued expenses and
other liabilities
|
24,183
|
|
|
31,755
|
|
Total current
liabilities
|
32,667
|
|
|
81,564
|
|
Credit facility debt,
less current portion
|
41,952
|
|
|
—
|
|
Liabilities related
to discontinued operations
|
16
|
|
|
16
|
|
Other
liabilities
|
7,280
|
|
|
5,781
|
|
Total
liabilities
|
$
|
81,915
|
|
|
$
|
87,361
|
|
Commitments and
Contingencies
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
Common stock, $0.32
par value; 100,000,000 shares authorized; shares issued were
30,375,791 and 30,003,642; and shares outstanding were 29,893,592
and 29,503,642, at
June 5, 2019 and August 29, 2018, respectively
|
9,721
|
|
|
9,602
|
|
Paid-in
capital
|
34,955
|
|
|
33,872
|
|
Retained
earnings
|
70,250
|
|
|
73,929
|
|
Less cost of treasury
stock, 500,000 shares
|
(4,775)
|
|
|
(4,775)
|
|
Total shareholders'
equity
|
110,151
|
|
|
112,628
|
|
Total liabilities and
shareholders' equity
|
$
|
192,066
|
|
|
$
|
199,989
|
|
Luby's,
Inc.
|
Consolidated
Statements of Cash Flows (unaudited)
|
(In
thousands)
|
|
|
Three Quarters
Ended
|
|
June 5,
2019
|
|
June 6,
2018
|
|
(40
weeks)
|
|
(40
weeks)
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
Net loss
|
$
|
(6,157)
|
|
|
$
|
(31,704)
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
Provision for asset
impairments and net losses (gains) on property sales
|
(9,838)
|
|
|
6,599
|
|
Depreciation and
amortization
|
11,052
|
|
|
13,402
|
|
Amortization of debt
issuance cost
|
1,063
|
|
|
438
|
|
Share-based
compensation expense
|
1,192
|
|
|
1,691
|
|
Deferred tax
provision
|
—
|
|
|
8,026
|
|
Cash used in
operating activities before changes in operating assets and
liabilities
|
(2,688)
|
|
|
(1,548)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
Decrease (increase)
in trade accounts and other receivables
|
(880)
|
|
|
143
|
|
Decrease (increase)
in food and supply inventories
|
148
|
|
|
(376)
|
|
Decrease in prepaid
expenses and other assets
|
1,106
|
|
|
575
|
|
Decrease in accounts
payable, accrued expenses and other liabilities
|
(8,567)
|
|
|
(3,672)
|
|
Net cash used in
operating activities
|
(10,881)
|
|
|
(4,878)
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
Proceeds from
disposal of assets and property held for sale
|
21,761
|
|
|
3,363
|
|
Insurance
proceeds
|
—
|
|
|
756
|
|
Purchases of property
and equipment
|
(2,866)
|
|
|
(11,730)
|
|
Net cash provided by
(used in) investing activities
|
18,895
|
|
|
(7,611)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
Revolver
borrowings
|
37,500
|
|
|
83,200
|
|
Revolver
repayments
|
(55,500)
|
|
|
(68,600)
|
|
Proceeds from term
loan
|
58,400
|
|
|
—
|
|
Term loan
repayments
|
(36,107)
|
|
|
(1,415)
|
|
Debt issuance
costs
|
(3,236)
|
|
|
(213)
|
|
Taxes paid on equity
withheld
|
(12)
|
|
|
(70)
|
|
Net cash provided by
financing activities
|
1,045
|
|
|
12,902
|
|
Net increase in cash
and cash equivalents and restricted cash
|
9,059
|
|
|
413
|
|
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
|
$
|
12,781
|
|
|
$
|
1,509
|
|
Cash paid
for:
|
|
|
|
Income
taxes
|
$
|
510
|
|
|
$
|
—
|
|
Interest
|
3,255
|
|
|
1,717
|
|
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
|
|
Three Quarters
Ended
|
|
June 5,
2019
|
|
June 6,
2018
|
|
June 5,
2019
|
|
June 6,
2018
|
|
(12
weeks)
|
|
(12
weeks)
|
|
(40
weeks)
|
|
(40
weeks)
|
|
|
|
|
|
|
|
|
Store level
profit
|
$
|
6,706
|
|
|
$
|
6,642
|
|
|
$
|
22,938
|
|
|
$
|
23,469
|
|
|
|
|
|
|
|
|
|
Plus:
|
|
|
|
|
|
|
|
Sales from culinary
contract services
|
7,571
|
|
|
6,639
|
|
|
24,610
|
|
|
19,413
|
|
Sales from franchise
operations
|
1,482
|
|
|
1,444
|
|
|
5,126
|
|
|
4,732
|
|
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
|
|
Opening
costs
|
6
|
|
|
85
|
|
|
49
|
|
|
490
|
|
Cost of culinary
contract services
|
6,791
|
|
|
6,104
|
|
|
22,324
|
|
|
18,113
|
|
Cost of franchise
operations
|
330
|
|
|
341
|
|
|
849
|
|
|
1,198
|
|
Depreciation and
amortization
|
2,927
|
|
|
4,050
|
|
|
11,052
|
|
|
13,402
|
|
Selling, general and
administrative expenses
|
9,426
|
|
|
8,507
|
|
|
29,666
|
|
|
29,219
|
|
Provision for asset
impairments and restaurant closings
|
675
|
|
|
4,464
|
|
|
3,097
|
|
|
6,716
|
|
Net loss (gain) on
disposition of property and equipment
|
(434)
|
|
|
154
|
|
|
(12,935)
|
|
|
172
|
|
Interest
income
|
(11)
|
|
|
(1)
|
|
|
(30)
|
|
|
(12)
|
|
Interest
expense
|
1,324
|
|
|
1,042
|
|
|
4,593
|
|
|
2,235
|
|
Other income,
net
|
(112)
|
|
|
(9)
|
|
|
(198)
|
|
|
(317)
|
|
Provision for income
taxes
|
132
|
|
|
4,121
|
|
|
346
|
|
|
7,494
|
|
Loss from continuing
operations
|
$
|
(5,295)
|
|
|
$
|
(14,133)
|
|
|
$
|
(6,139)
|
|
|
$
|
(31,096)
|
|
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
|
|
Three Quarters
Ended
|
|
June 5,
2019
|
|
June 6,
2018
|
|
June 5,
2019
|
|
June 6,
2018
|
|
(12
weeks)
|
|
(12
weeks)
|
|
(40
weeks)
|
|
(40
weeks)
|
|
|
|
|
|
|
|
|
Loss from continuing
operations
|
$
|
(5,295)
|
|
|
$
|
(14,133)
|
|
|
$
|
(6,139)
|
|
|
$
|
(31,096)
|
|
Depreciation and
amortization
|
2,927
|
|
|
4,050
|
|
|
11,052
|
|
|
13,402
|
|
Provision for income
taxes
|
132
|
|
|
4,121
|
|
|
346
|
|
|
7,494
|
|
Interest
expense
|
1,324
|
|
|
1,042
|
|
|
4,593
|
|
|
2,235
|
|
Interest
income
|
(11)
|
|
|
(1)
|
|
|
(30)
|
|
|
(12)
|
|
Net loss (gain) on
disposition of property and equipment
|
(434)
|
|
|
154
|
|
|
(12,935)
|
|
|
172
|
|
Provision for asset
impairments and restaurant closings
|
675
|
|
|
4,464
|
|
|
3,097
|
|
|
6,716
|
|
Non-cash compensation
expense
|
369
|
|
|
311
|
|
|
1,192
|
|
|
1,160
|
|
Franchise
Taxes
|
56
|
|
|
71
|
|
|
164
|
|
|
172
|
|
Decrease / (Increase)
in Fair Value of Derivative
|
—
|
|
|
(73)
|
|
|
88
|
|
|
(701)
|
|
Adjusted
EBITDA
|
$
|
(257)
|
|
|
$
|
6
|
|
|
$
|
1,428
|
|
|
$
|
(458)
|
|
For additional information contact:
Rick Black / Ken Dennard
Investor Relations
713-529-6600
View original
content:http://www.prnewswire.com/news-releases/lubys-reports-third-quarter-fiscal-2019-results-300884519.html
SOURCE Luby's, Inc.