HOUSTON, Nov. 26, 2019 /PRNewswire/ -- Luby's, Inc. (NYSE:
LUB) ("Luby's") today announced financial results for its fifty-two
week fiscal year 2019 and its twelve-week fourth quarter fiscal
2019, which ended on August 28, 2019. Comparisons in
this press release for the fourth quarter fiscal 2019 are referred
to as "fourth quarter". Comparisons to the fourth quarter fiscal
2018 are to the twelve-week period that ended August 29, 2018.
Fiscal Fourth Quarter Summary:
- Same-store sales decreased 3.7%; total sales decreased 14.9% to
$71.4 million due in large part to
operating 22 fewer stores.
- Net loss was $9.1 million
compared to a net loss of $1.9
million in the fourth quarter fiscal 2018 due primarily to
store level profit declines and gains on the sale of assets in the
prior year.
Chris Pappas, President and CEO,
commented, "We are not pleased with our shareholder value,
same-store sales, guest traffic results, or corporate
overhead. The Special Committee of the Board continues its
focus on developing shareholder value initiatives.
Operationally, we made strategic personnel changes in fiscal 2019,
including appointment of a new Chief Operating Officer, VP of
Marketing, and VP of Information Technology. Our whole team
is working diligently and we are making progress on our turnaround
efforts. Already in fiscal 2020, we have realized improved
guest traffic and sales trends. Additionally, we are
transitioning portions of our accounting, payroll, operational
reporting, and other back-office functions to a leading multi-unit
restaurant outsourcing firm. We anticipate completing the
transition in the first calendar quarter of 2020 and expect to
realize additional cost savings and enhanced capabilities from this
transition.
"At the restaurant level, our managers and restaurant team
members are working hard to maintain and build value by
consistently delivering great guest experiences. They are our
greatest brand assets, and I applaud their hard work and dedication
to showcasing our brand values."
Other Fiscal Fourth Quarter
Results:
- Luby's Cafeterias same-store sales decreased 3.2%: guest
traffic decreased 1.1% and average spend per guest decreased
2.2%.
- Fuddruckers Restaurants same-store sales decreased 5.5%: guest
traffic decreased 3.8% and average spend per guest decreased
1.8%.
- Culinary Contract Services revenues increased to $7.3 million with 31 operating locations at the
end of the fourth quarter compared to $6.4
million with 28 operating locations at the end of fiscal
2018.
- Franchise revenue was approximately level at $1.6 million in the fourth quarters of fiscal
2019 and fiscal 2018. We ended fiscal 2019 with a franchise network
of 102 locations.
- Selling, general, and administrative expenses decreased
$1.2 million, or 12.7% compared to
the fourth quarter fiscal 2018, resulting from reduced headcount,
partially offset by increased marketing and advertising
spending.
- Loss from continuing operations was $9.1
million, or a loss of $0.30
per diluted share, in the fourth quarter compared to a loss of
$1.9 million, or $0.06 per diluted share, in the fourth 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 $4.9 million, or 7.9% of restaurant sales, in the
fourth quarter compared to $8.2
million, or 10.8% of restaurant sales, during the fourth
quarter fiscal 2018.
- Adjusted EBITDA was a loss of $1.5
million in the fourth quarter compared to a profit of
$0.5 million in fiscal 2018.
- Capital expenditures for the fourth quarter were $1.2 million, a decrease from $1.5 million in the fourth quarter last
year.
Same-Store Sales Year-Over-Year Comparison
|
Q1
2019(3)
|
Q2
2019(3)
|
Q3
2019(3)
|
Q4
2019(3)
|
Full
Year
2019(3)
|
|
(16 weeks vs 16
weeks)
|
(12 weeks vs 12
weeks)
|
(12 weeks vs 12
weeks)
|
(12 weeks vs 12
weeks)
|
(52 weeks vs 52
weeks)
|
Luby's
Cafeterias
|
(3.0)%
|
(2.2)%
|
(3.1)%
|
(3.2)%
|
(2.9)%
|
Fuddruckers
Restaurants
|
(11.2)%
|
(5.3)%
|
(6.1)%
|
(5.5)%
|
(7.5)%
|
Combo locations
(1)
|
(11.1)%
|
(7.1)%
|
(4.8)%
|
(2.5)%
|
(6.8)%
|
Cheeseburger in
Paradise
|
(0.6)%
|
(3.1)%
|
(4.4)%
|
(3.6)%
|
(2.9)%
|
Total same-store
sales (2)
|
(5.5)%
|
(3.3)%
|
(4.0)%
|
(3.7)%
|
(4.2)%
|
|
|
(1)
|
Combo locations
consist of a side-by-side Luby's Cafeteria and Fuddruckers
Restaurant at one property location.
|
(2)
|
Luby's includes a
restaurant's sales results into the same-store sales calculation in
the quarter after that store has been open for six complete
consecutive quarters. At the end of the fourth quarter, there
were 73 Luby's Cafeterias, 38 Fuddruckers Restaurants, 6 Combo
locations, and 1 Cheeseburger in Paradise locations that met the
definition of same-stores.
|
(3)
|
Q1 2019, Q2 2019, Q3
2019, Q4 2019 and Full Year 2019 same-store sales reflect the
year-over-year change in restaurant sales for the locations
included in the same-store grouping for each of the comparable
periods.
|
Fourth Quarter Total Restaurant Sales:
($
thousands)
Restaurant
Brand
|
Q4
2019
|
Q4
2018
|
Change
($)
|
Change
(%)
|
Luby's
Cafeterias
|
$
|
42,937
|
|
$
|
47,216
|
|
$
|
(4,279)
|
|
(9.1)
|
%
|
Fuddruckers
restaurants
|
14,331
|
|
20,142
|
|
(5,811)
|
|
(28.9)
|
%
|
Combo
locations
|
4,548
|
|
4,667
|
|
(119)
|
|
(2.5)
|
%
|
Cheeseburger in
Paradise
|
780
|
|
3,756
|
|
(2,976)
|
|
(79.2)
|
%
|
Gift card discount
and breakage, net
|
(161)
|
|
—
|
|
(161)
|
|
|
Total Restaurant
Sales
|
$
|
62,435
|
|
$
|
75,781
|
|
$
|
(13,346)
|
|
(17.6)
|
%
|
Fiscal Year 2019 Summary:
- Total sales were $323.5 million,
including $284.5 million in
restaurant sales, compared to total sales of $365.2 million, including $332.5 million in restaurant sales, in fiscal
2018.
- Same-store sales decreased 4.2%, including a 2.9% sales
decrease at Luby's Cafeterias and a 7.5% sales decrease at
Fuddruckers.
- 17 underperforming company-owned restaurants were closed in
fiscal 2019 and five company-owned Fuddruckers restaurants
transitioned to a franchisee in fiscal 2019. These 22 restaurants
accounted for $19.1 million in sales
and $2.3 million in store-level loss
for the portion of the year that they operated in fiscal 2019 as
company-owned restaurants.
- Culinary contract services revenue increased $6.1 million, or 23.7%, to $31.9 million compared to fiscal 2018. We
operated at 31 Culinary contract services locations at the end of
fiscal 2019.
- Franchise revenue increased $0.3
million, or 5.1%, to $6.7
million compared to fiscal 2018. We ended fiscal 2019 with a
franchise network of 102 locations.
- Loss from continuing operations was $15.2 million, or $0.51 per diluted share, in fiscal 2019, compared
to a loss of $33.0 million, or
$1.10 per diluted share, in fiscal
2018.
- Adjusted EBITDA was $3.7 million
in fiscal 2019 compared to approximately zero in fiscal 2018.
- The company's $45.0 million asset
sales program that began in fiscal 2018 has generated $35.9 million in proceeds from the sale of
property through the end of fiscal 2019.
- The company incurred $4.3 million
in restructuring expenses, employee severance, and proxy services
in fiscal 2019. These expenses, recorded in Other charges, were
included in Selling, general and administrative expenses in
previously reported quarters of fiscal 2019.
- The company transitioned a total of seven company-owned
Fuddruckers restaurants to franchisees since announcing its
initiative to pursue a franchisee-centric business model for the
Fuddruckers brand.
Balance Sheet and Capital Expenditures
We ended the fourth quarter with net debt (total debt less cash)
of $35.9 million, compared to
$35.8 million at the end of fiscal
2018. During the fourth quarter, our capital expenditures
were $1.2 million, compared to
$1.5 million in the fourth quarter
fiscal 2018. For the full year, capital expenditures were
$4.0 million for fiscal 2019,
compared to $13.2 million for fiscal
2018. At the end of the fourth quarter, we had $3.6 million in cash and $101.0 million in total shareholders' equity.
Restaurant Counts:
|
August 29,
2018
|
|
Fiscal 2019
YTD
Openings
|
|
Fiscal 2019
YTD
Closings
|
|
Fiscal
2019
Transfers
to
Franchisee
|
|
August 28,
2019
|
Luby's
Cafeterias(1)
|
84
|
|
|
—
|
|
|
(5)
|
|
|
|
|
79
|
|
Fuddruckers
Restaurants(1)
|
60
|
|
|
—
|
|
|
(11)
|
|
|
(5)
|
|
|
44
|
|
Cheeseburger in
Paradise
|
2
|
|
|
—
|
|
|
(1)
|
|
|
|
|
1
|
|
Total
|
146
|
|
|
—
|
|
|
(17)
|
|
|
(5)
|
|
|
124
|
|
|
|
(1)
|
Includes 6
restaurants that are part of Combo locations.
|
Special Committee Update:
The Special Committee of the Board, as previously announced,
that has been formed with the purpose of establishing a strategic
review process to identify, examine, and consider a range of
strategic alternatives available to the Company with the objective
of maximizing shareholder value, continues its work.
Conference Call
Luby's will host a conference call on November 26, 2019 at 10:00
a.m. Central Time to discuss further its fourth quarter
fiscal 2019 results. To access the call live, dial (412) 902-0030
and use the access code 13695072# 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 December 6,
2019, and may be accessed by calling (201) 612-7415 and
using the access code 13695072#. 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) operated 119 restaurants nationally as
of November 26th: 78 Luby's
Cafeterias, 40 Fuddruckers, and one Cheeseburger in Paradise
restaurant. Luby's is the franchisor for 98 Fuddruckers
franchise locations across the United
States (including Puerto
Rico), Canada, Mexico, 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
|
|
Year
Ended
|
|
August 28,
2019
|
|
August 29,
2018
|
|
August 28,
2019
|
|
August 29,
2018
|
|
(12
weeks)
|
|
(12
weeks)
|
|
(52
weeks)
|
|
(52
weeks)
|
SALES:
|
|
|
|
|
|
|
|
Restaurant
sales
|
$
|
62,435
|
|
|
$
|
75,781
|
|
|
$
|
284,513
|
|
|
$
|
332,518
|
|
Culinary contract
services
|
7,278
|
|
|
6,369
|
|
|
31,888
|
|
|
25,782
|
|
Franchise
revenue
|
1,563
|
|
|
1,634
|
|
|
6,690
|
|
|
6,365
|
|
Vending
revenue
|
87
|
|
|
119
|
|
|
379
|
|
|
531
|
|
TOTAL
SALES
|
71,363
|
|
|
83,903
|
|
|
323,470
|
|
|
365,196
|
|
COSTS AND
EXPENSES:
|
|
|
|
|
|
|
|
Cost of
food
|
17,775
|
|
|
21,049
|
|
|
79,479
|
|
|
94,238
|
|
Payroll and related
costs
|
24,251
|
|
|
28,448
|
|
|
108,509
|
|
|
124,478
|
|
Other operating
expenses
|
11,481
|
|
|
13,404
|
|
|
50,886
|
|
|
62,286
|
|
Occupancy
costs
|
4,069
|
|
|
4,822
|
|
|
18,133
|
|
|
20,399
|
|
Opening
costs
|
6
|
|
|
64
|
|
|
56
|
|
|
554
|
|
Cost of culinary
contract services
|
6,230
|
|
|
6,048
|
|
|
28,554
|
|
|
24,161
|
|
Cost of franchise
operations
|
783
|
|
|
330
|
|
|
1,633
|
|
|
1,528
|
|
Depreciation and
amortization
|
2,946
|
|
|
4,051
|
|
|
13,998
|
|
|
17,453
|
|
Selling, general and
administrative expenses
|
8,298
|
|
|
9,506
|
|
|
34,179
|
|
|
38,725
|
|
Other
charges
|
485
|
|
|
—
|
|
|
4,270
|
|
|
—
|
|
Provision for asset
impairments and restaurant closings
|
2,506
|
|
|
2,200
|
|
|
5,603
|
|
|
8,917
|
|
Net loss (gain) on
disposition of property and equipment
|
103
|
|
|
(5,529)
|
|
|
(12,832)
|
|
|
(5,357)
|
|
Total costs and
expenses
|
78,933
|
|
|
84,393
|
|
|
332,468
|
|
|
387,382
|
|
LOSS FROM
OPERATIONS
|
(7,570)
|
|
|
(490)
|
|
|
(8,998)
|
|
|
(22,186)
|
|
Interest
income
|
—
|
|
|
—
|
|
|
30
|
|
|
12
|
|
Interest
expense
|
(1,384)
|
|
|
(1,112)
|
|
|
(5,977)
|
|
|
(3,348)
|
|
Other income
(expense), net
|
(3)
|
|
|
(20)
|
|
|
195
|
|
|
298
|
|
Loss before income
taxes and discontinued operations
|
(8,957)
|
|
|
(1,622)
|
|
|
(14,750)
|
|
|
(25,224)
|
|
Provision for income
taxes
|
123
|
|
|
236
|
|
|
469
|
|
|
7,730
|
|
Loss from continuing
operations
|
(9,080)
|
|
|
(1,858)
|
|
|
(15,219)
|
|
|
(32,954)
|
|
Income (loss) from
discontinued operations, net of income taxes
|
11
|
|
|
(5)
|
|
|
(7)
|
|
|
(614)
|
|
NET LOSS
|
$
|
(9,069)
|
|
|
$
|
(1,863)
|
|
|
$
|
(15,226)
|
|
|
$
|
(33,568)
|
|
Loss per share from
continuing operations:
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.30)
|
|
|
$
|
(0.06)
|
|
|
$
|
(0.51)
|
|
|
$
|
(1.10)
|
|
Assuming
dilution
|
$
|
(0.30)
|
|
|
$
|
(0.06)
|
|
|
$
|
(0.51)
|
|
|
$
|
(1.10)
|
|
Loss per share from
discontinued operations:
|
|
|
|
|
|
|
|
Basic
|
$
|
0.00
|
|
|
$
|
(0.00)
|
|
|
$
|
0.00
|
|
|
$
|
(0.02)
|
|
Assuming
dilution
|
$
|
0.00
|
|
|
$
|
(0.00)
|
|
|
$
|
0.00
|
|
|
$
|
(0.02)
|
|
Net loss per
share:
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.30)
|
|
|
$
|
(0.06)
|
|
|
$
|
(0.51)
|
|
|
$
|
(1.12)
|
|
Assuming
dilution
|
$
|
(0.30)
|
|
|
$
|
(0.06)
|
|
|
$
|
(0.51)
|
|
|
$
|
(1.12)
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
29,965
|
|
|
30,030
|
|
|
29,786
|
|
|
29,901
|
|
Assuming
dilution
|
29,965
|
|
|
30,030
|
|
|
29,786
|
|
|
29,901
|
|
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
|
|
Year
Ended
|
|
August 28,
2019
|
August 29,
2018
|
|
August 28,
2019
|
August 29,
2018
|
|
(12
weeks)
|
(12
weeks)
|
|
(52
weeks)
|
(52
weeks)
|
Restaurant
sales
|
87.5
|
%
|
90.3
|
%
|
|
88.0
|
%
|
91.1
|
%
|
Culinary contract
services
|
10.2
|
%
|
7.6
|
%
|
|
9.9
|
%
|
7.1
|
%
|
Franchise
revenue
|
2.2
|
%
|
1.9
|
%
|
|
2.1
|
%
|
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
|
28.5
|
%
|
27.8
|
%
|
|
27.9
|
%
|
28.3
|
%
|
Payroll and related
costs
|
38.8
|
%
|
37.5
|
%
|
|
38.1
|
%
|
37.4
|
%
|
Other operating
expenses
|
18.4
|
%
|
17.7
|
%
|
|
17.9
|
%
|
18.7
|
%
|
Occupancy
costs
|
6.5
|
%
|
6.4
|
%
|
|
6.4
|
%
|
6.1
|
%
|
Vending
revenue
|
(0.1)
|
%
|
(0.2)
|
%
|
|
(0.1)
|
%
|
(0.2)
|
%
|
Store level
profit
|
7.9
|
%
|
10.8
|
%
|
|
9.8
|
%
|
9.5
|
%
|
|
|
|
|
|
|
(As a percentage
of total sales)
|
|
|
|
|
|
Marketing and
advertising expenses
|
1.3
|
%
|
0.8
|
%
|
|
1.2
|
%
|
1.0
|
%
|
General and
administrative expenses
|
10.3
|
%
|
10.5
|
%
|
|
9.4
|
%
|
9.6
|
%
|
Selling, general and
administrative expenses
|
11.6
|
%
|
11.3
|
%
|
|
10.6
|
%
|
10.6
|
%
|
LOSS FROM
OPERATIONS
|
(10.6)
|
%
|
(0.6)
|
%
|
|
(2.8)
|
%
|
(6.1)
|
%
|
Luby's,
Inc.
Consolidated
Balance Sheets
(In thousands,
except per share data)
|
|
|
August 28,
2019
|
|
August 29,
2018
|
|
|
|
|
ASSETS
|
|
|
|
Current
Assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
3,640
|
|
|
$
|
3,722
|
|
Restricted Cash and
cash equivalents
|
9,116
|
|
|
—
|
|
Trade accounts and
other receivables, net
|
8,852
|
|
|
8,787
|
|
Food and supply
inventories
|
3,432
|
|
|
4,022
|
|
Prepaid and other
assets
|
2,355
|
|
|
3,219
|
|
Total current
assets
|
27,395
|
|
|
19,750
|
|
Property held for
sale
|
16,488
|
|
|
19,469
|
|
Assets related to
discontinued operations
|
1,813
|
|
|
1,813
|
|
Property and
equipment, net
|
121,743
|
|
|
138,287
|
|
Intangible assets,
net
|
16,781
|
|
|
18,179
|
|
Goodwill
|
514
|
|
|
555
|
|
Other
assets
|
1,266
|
|
|
1,936
|
|
Total
assets
|
$
|
186,000
|
|
|
$
|
199,989
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Current
Liabilities:
|
|
|
|
Accounts
payable
|
$
|
8,465
|
|
|
$
|
10,457
|
|
Liabilities related
to discontinued operations
|
14
|
|
|
14
|
|
Credit facility
debt
|
—
|
|
|
39,338
|
|
Accrued expenses and
other liabilities
|
24,475
|
|
|
31,755
|
|
Total current
liabilities
|
32,954
|
|
|
81,564
|
|
Credit facility debt,
less current portion
|
45,439
|
|
|
—
|
|
Liabilities related
to discontinued operations
|
—
|
|
|
16
|
|
Other
liabilities
|
6,577
|
|
|
5,781
|
|
Total
liabilities
|
$
|
84,970
|
|
|
$
|
87,361
|
|
Commitments and
Contingencies
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
Common stock, $0.32
par value; 100,000,000 shares authorized; Shares issued were
30,478,972 and 30,003,642 at August 28, 2019 and August 29,
2018, respectively; Shares outstanding were 29,978,972 and
29,503,642 at August 28, 2019 and August 29, 2018,
respectively
|
9,753
|
|
|
9,602
|
|
Paid-in
capital
|
34,870
|
|
|
33,872
|
|
Retained
earnings
|
61,182
|
|
|
73,929
|
|
Less cost of treasury
stock, 500,000 shares
|
(4,775)
|
|
|
(4,775)
|
|
Total shareholders'
equity
|
101,030
|
|
|
112,628
|
|
Total liabilities and
shareholders' equity
|
$
|
186,000
|
|
|
$
|
199,989
|
|
Luby's,
Inc.
Consolidated
Statements of Cash Flows (unaudited)
(In
thousands)
|
|
|
Year
Ended
|
|
August 28,
2019
|
|
August 29,
2018
|
|
(52
weeks)
|
|
(52
weeks)
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
Net loss
|
$
|
(15,226)
|
|
|
$
|
(33,568)
|
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
Provision for asset
impairments and net loss (gain) on property dispositions
|
(7,229)
|
|
|
3,619
|
|
Depreciation and
amortization
|
13,998
|
|
|
17,453
|
|
Amortization of debt
issuance cost
|
1,317
|
|
|
534
|
|
Share-based
compensation expense
|
1,140
|
|
|
2,144
|
|
Deferred tax
provision
|
—
|
|
|
8,192
|
|
Cash used in
operating activities before changes in operating assets and
liabilities
|
(6,000)
|
|
|
(1,626)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
Increase in trade
accounts and other receivables
|
(65)
|
|
|
(775)
|
|
Decrease in food and
supply inventories
|
590
|
|
|
432
|
|
Decrease in prepaid
expenses and other assets
|
1,657
|
|
|
808
|
|
Decrease in accounts
payable, accrued expenses and other liabilities
|
(9,312)
|
|
|
(7,292)
|
|
Net cash used in
operating activities
|
(13,130)
|
|
|
(8,453)
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
Proceeds from
disposal of assets and property held for sale
|
21,836
|
|
|
14,191
|
|
Insurance proceeds
related to property and equipment
|
—
|
|
|
2,070
|
|
Purchases of property
and equipment
|
(3,987)
|
|
|
(13,247)
|
|
Net cash provided by
investing activities
|
17,849
|
|
|
3,014
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
Revolver
borrowings
|
42,300
|
|
|
147,600
|
|
Revolver
repayments
|
(57,000)
|
|
|
(132,000)
|
|
Debt issuance
costs
|
(3,266)
|
|
|
(386)
|
|
Proceeds on term
loan
|
58,400
|
|
|
—
|
|
Term loan
repayments
|
(36,107)
|
|
|
(7,079)
|
|
Tax paid on equity
withheld
|
(12)
|
|
|
(70)
|
|
Net cash provided by
financing activities
|
4,315
|
|
|
8,065
|
|
Net increase in cash
and cash equivalents and restricted cash
|
9,034
|
|
|
2,626
|
|
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
|
$
|
12,756
|
|
|
$
|
3,722
|
|
Cash paid
for:
|
|
|
|
Income
taxes
|
$
|
470
|
|
|
$
|
426
|
|
Interest
|
4,452
|
|
|
2,499
|
|
Although store level profit, defined as restaurant sales plus
vending revenue, less cost of food, payroll and related costs,
other operating expenses, and occupancy costs is a non-GAAP
measure, we believe its presentation is useful because it
explicitly shows the results of our most significant reportable
segment. The following table reconciles between store
level profit, a non-GAAP measure to loss from continuing
operations, a GAAP measure:
|
Quarter
Ended
|
|
Year
Ended
|
|
August 28,
2019
|
|
August 29,
2018
|
|
August 28,
2019
|
|
August 29,
2018
|
|
(12
weeks)
|
|
(12
weeks)
|
|
(52
weeks)
|
|
(52
weeks)
|
|
(In
thousands)
|
|
(In
thousands)
|
Store level
profit
|
$
|
4,946
|
|
|
$
|
8,177
|
|
|
$
|
27,885
|
|
|
$
|
31,648
|
|
|
|
|
|
|
|
|
|
Plus:
|
|
|
|
|
|
|
|
Sales from culinary
contract services
|
7,278
|
|
|
6,369
|
|
|
31,888
|
|
|
25,782
|
|
Sales from franchise
operations
|
1,563
|
|
|
1,634
|
|
|
6,690
|
|
|
6,365
|
|
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
|
|
Opening
costs
|
6
|
|
|
64
|
|
|
56
|
|
|
554
|
|
Cost of culinary
contract services
|
6,230
|
|
|
6,048
|
|
|
28,554
|
|
|
24,161
|
|
Cost of franchise
operations
|
783
|
|
|
330
|
|
|
1,633
|
|
|
1,528
|
|
Depreciation and
amortization
|
2,946
|
|
|
4,051
|
|
|
13,998
|
|
|
17,453
|
|
Selling, general and
administrative expenses(a)
|
8,298
|
|
|
9,506
|
|
|
34,179
|
|
|
38,725
|
|
Other
charges
|
485
|
|
|
—
|
|
|
4,270
|
|
|
—
|
|
Provision for asset
impairments and restaurant closings
|
2,506
|
|
|
2,200
|
|
|
5,603
|
|
|
8,917
|
|
Net loss (gain) on
disposition of property and equipment
|
103
|
|
|
(5,529)
|
|
|
(12,832)
|
|
|
(5,357)
|
|
Interest
income
|
—
|
|
|
—
|
|
|
(30)
|
|
|
(12)
|
|
Interest
expense
|
1,384
|
|
|
1,112
|
|
|
5,977
|
|
|
3,348
|
|
Other income
(expense), net
|
3
|
|
|
20
|
|
|
(195)
|
|
|
(298)
|
|
Provision for income
taxes
|
123
|
|
|
236
|
|
|
469
|
|
|
7,730
|
|
Loss from continuing
operations
|
$
|
(9,080)
|
|
|
$
|
(1,858)
|
|
|
$
|
(15,219)
|
|
|
$
|
(32,954)
|
|
|
(a) Marketing and
advertising expense included in Selling, general and administrative
expenses was $0.9 million and $0.6 million for the fourth quarter
fiscal 2019 and 2018, respectively, and $3.9 million and $3.5
million for fiscal year 2019 and 2018, respectively.
|
Adjusted EBITDA
Adjusted EBITDA is defined as income (loss) from continuing
operations before interest, provision (benefit) for income taxes,
and depreciation and amortization and excluding net gain (loss) on
disposing of property and equipment, provision for asset
impairments and restaurant closings, other charges, franchise
taxes, and non-cash compensation expense.
Adjusted EBITDA is intended as a supplemental measure of our
performance that is not required by, or presented in accordance
with GAAP. We believe Adjusted EBITDA provides useful
information to management and investors in valuing the Company and
evaluating ongoing operating results and trends and in comparing
our results to other competitors. Our management uses Adjusted
EBITDA in evaluating management's performance when determining
incentive compensation.
Adjusted EBITDA, as defined, may not be comparable to other
similarly titled measures as computed by other companies. These
measures should be considered supplemental and not a substitute or
superior to other GAAP performance measures.
($
thousands)
|
Quarter
Ended
|
|
Year
Ended
|
|
August 28,
2019
|
|
August 29,
2018
|
|
August 28,
2019
|
|
August 29,
2018
|
|
(12
weeks)
|
|
(12
weeks)
|
|
(52
weeks)
|
|
(52
weeks)
|
Loss from
continuing operations
|
$
|
(9,080)
|
|
|
$
|
(1,858)
|
|
|
$
|
(15,219)
|
|
|
$
|
(32,954)
|
|
Depreciation and
amortization
|
2,946
|
|
|
4,051
|
|
|
13,998
|
|
|
17,453
|
|
Provision for income
taxes
|
123
|
|
|
236
|
|
|
469
|
|
|
7,730
|
|
Interest
expense
|
1,384
|
|
|
1,112
|
|
|
5,977
|
|
|
3,348
|
|
Interest
income
|
—
|
|
|
—
|
|
|
(30)
|
|
|
(12)
|
|
Other
charges
|
485
|
|
|
—
|
|
|
4,270
|
|
|
—
|
|
Net loss (gain) on
disposition of property and equipment
|
103
|
|
|
(5,529)
|
|
|
(12,832)
|
|
|
(5,357)
|
|
Provision for asset
impairments and restaurant closings
|
2,506
|
|
|
2,200
|
|
|
5,603
|
|
|
8,917
|
|
Non-cash compensation
expense
|
(53)
|
|
|
245
|
|
|
1,140
|
|
|
1,404
|
|
Franchise
taxes
|
42
|
|
|
41
|
|
|
205
|
|
|
213
|
|
Decrease (Increase)
in fair value of derivative
|
—
|
|
|
—
|
|
|
88
|
|
|
(701)
|
|
Adjusted
EBITDA
|
$
|
(1,544)
|
|
|
$
|
498
|
|
|
$
|
3,669
|
|
|
$
|
41
|
|
For additional information contact:
Dennard-Lascar Associates
Rick Black / Ken Dennard
Investor Relations
713-529-6600
View original
content:http://www.prnewswire.com/news-releases/lubys-reports-fourth-quarter-and-fiscal-year-2019-results-300965126.html
SOURCE Luby's, Inc.