HOUSTON, Feb. 3, 2020 /PRNewswire/ -- Luby's, Inc.
(NYSE: LUB) ("Luby's") today announced unaudited financial results
for its sixteen-week first quarter fiscal 2020 referred to as
"first quarter." Comparisons in this earnings release are for
the first quarter compared to the sixteen-week first quarter fiscal
2019.
Same-Store Sales Year-Over-Year Comparison
|
Q1
2020
|
Q1
2019
|
Luby's
Cafeterias
|
1.7%
|
(3.0)%
|
Fuddruckers
|
0.1%
|
(11.2)%
|
Combo locations
(1)
|
6.6%
|
(11.1)%
|
Cheeseburger in
Paradise
|
(1.0)%
|
(0.6)%
|
Total same-store
sales (2)
|
1.7%
|
(5.5)%
|
|
|
(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 first quarter, there were 72 Luby's
Cafeterias locations, 34 Fuddruckers locations, all six Combo
locations, and one Cheeseburger in Paradise location that met the
definition of same-stores.
|
First Quarter Restaurant Sales:
($ thousands)
Restaurant
Brand
|
Q1
2020
|
Q1
2019
|
Change
($)
|
Change
(%)
|
Luby's
Cafeterias
|
$
|
60,785
|
$
|
62,643
|
$
|
(1,858)
|
(3.0)%
|
Combo
locations
|
6,359
|
5,964
|
395
|
6.6%
|
Luby's cafeteria
segment
|
67,144
|
68,607
|
(1,463)
|
(2.1)%
|
Fuddruckers
restaurants segment
|
15,569
|
21,533
|
(5,964)
|
(27.7)%
|
Cheeseburger in
Paradise segment
|
845
|
959
|
(114)
|
(11.9)%
|
Total Restaurant
Sales
|
$
|
83,558
|
$
|
91,099
|
$
|
(7,541)
|
(8.3)%
|
|
Note:
Luby's Cafeterias store count reduced from 78 at Q1 2019
start to 72 at Q1 2020 end; Fuddruckers store count reduced from 54
at Q1 2019 start to 34 at Q1 2020 end; Combo location count at six
(12 restaurants) at Q1 2019 start and at Q1 2020 end; Cheeseburger
in Paradise store count reduced from two at Q1 2019 start to one at
Q1 2020 end.
|
Restaurant Counts:
|
August 28,
2019
|
|
FY20 Q1
Openings
|
|
FY20 Q1
Closings
|
|
December 18,
2019
|
Luby's
Cafeterias(1)
|
79
|
|
—
|
|
(1)
|
|
78
|
Fuddruckers
Restaurants(1)
|
44
|
|
—
|
|
(4)
|
|
40
|
Cheeseburger in
Paradise
|
1
|
|
—
|
|
—
|
|
1
|
Total
|
124
|
|
—
|
|
(5)
|
|
119
|
|
|
(1)
|
Includes 6
restaurants that are part of Combo locations
|
Conference Call
Luby's will host a conference call on February 3, 2020 at 10:00
a.m. Central Time to discuss further its first quarter
fiscal 2020 results. To access the call live, dial (412) 902-0030
and use the access code 13697984# 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 February 10,
2020 and may be accessed by calling (201) 612-7415 and using
the access code 13697984#. 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 119 restaurants nationally as
of December 18, 2019: 78 Luby's Cafeterias, 40 Fuddruckers,
one Cheeseburger in Paradise restaurants. Luby's is the franchisor
for 97 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 Investor
Relations
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
|
|
December
18,
2019
|
|
December
19,
2018
|
|
(16
weeks)
|
|
(16
weeks)
|
SALES:
|
|
|
|
Restaurant
sales
|
$
|
83,558
|
|
|
$
|
91,099
|
|
Culinary contract
services
|
9,774
|
|
|
9,496
|
|
Franchise
revenue
|
1,707
|
|
|
2,224
|
|
Vending
revenue
|
110
|
|
|
99
|
|
TOTAL
SALES
|
95,149
|
|
|
102,918
|
|
COSTS AND
EXPENSES:
|
|
|
|
Cost of
food
|
23,942
|
|
|
25,083
|
|
Payroll and related
costs
|
32,134
|
|
|
34,513
|
|
Other operating
expenses
|
14,794
|
|
|
16,502
|
|
Occupancy
costs
|
4,990
|
|
|
5,875
|
|
Opening
costs
|
12
|
|
|
33
|
|
Cost of culinary
contract services
|
8,948
|
|
|
8,815
|
|
Cost of franchise
operations
|
565
|
|
|
273
|
|
Depreciation and
amortization
|
3,762
|
|
|
4,903
|
|
Selling, general and
administrative expenses
|
10,158
|
|
|
10,010
|
|
Other
charges
|
1,238
|
|
|
1,214
|
|
Provision for asset
impairments and restaurant closings
|
1,110
|
|
|
1,227
|
|
Net loss on
disposition of property and equipment
|
30
|
|
|
149
|
|
Total costs and
expenses
|
101,683
|
|
|
108,597
|
|
LOSS FROM
OPERATIONS
|
(6,534)
|
|
|
(5,679)
|
|
Interest
income
|
23
|
|
|
—
|
|
Interest
expense
|
(1,962)
|
|
|
(1,713)
|
|
Other income,
net
|
240
|
|
|
30
|
|
Loss before income
taxes and discontinued operations
|
(8,233)
|
|
|
(7,362)
|
|
Provision for income
taxes
|
94
|
|
|
121
|
|
Loss from continuing
operations
|
(8,327)
|
|
|
(7,483)
|
|
Loss from
discontinued operations, net of income taxes
|
(11)
|
|
|
(6)
|
|
NET LOSS
|
$
|
(8,338)
|
|
|
$
|
(7,489)
|
|
Loss per share from
continuing operations:
|
|
|
|
Basic
|
$
|
(0.28)
|
|
|
$
|
(0.25)
|
|
Assuming
dilution
|
$
|
(0.28)
|
|
|
$
|
(0.25)
|
|
Loss per share from
discontinued operations:
|
|
|
|
Basic
|
$
|
(0.00)
|
|
|
$
|
(0.00)
|
|
Assuming
dilution
|
$
|
(0.00)
|
|
|
$
|
(0.00)
|
|
Net loss per
share:
|
|
|
|
Basic
|
$
|
(0.28)
|
|
|
$
|
(0.25)
|
|
Assuming
dilution
|
$
|
(0.28)
|
|
|
$
|
(0.25)
|
|
Weighted average
shares outstanding:
|
|
|
|
Basic
|
30,054
|
|
|
30,059
|
|
Assuming
dilution
|
30,054
|
|
|
30,059
|
|
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
|
|
December
18,
2019
|
|
December
19,
2018
|
|
(16
weeks)
|
|
(16
weeks)
|
|
|
|
|
Restaurant
sales
|
87.8
|
%
|
|
88.5
|
%
|
Culinary contract
services
|
10.3
|
%
|
|
9.2
|
%
|
Franchise
revenue
|
1.8
|
%
|
|
2.2
|
%
|
Vending
revenue
|
0.1
|
%
|
|
0.1
|
%
|
TOTAL
SALES
|
100.0
|
%
|
|
100.0
|
%
|
|
|
|
|
COSTS AND
EXPENSES:
|
|
|
|
(As a percentage
of restaurant sales)
|
|
|
|
Cost of
food
|
28.7
|
%
|
|
27.5
|
%
|
Payroll and related
costs
|
38.5
|
%
|
|
37.9
|
%
|
Other operating
expenses
|
17.7
|
%
|
|
18.1
|
%
|
Occupancy
costs
|
6.0
|
%
|
|
6.4
|
%
|
Vending
revenue
|
(0.1)
|
%
|
|
(0.1)
|
%
|
Store level
profit
|
9.3
|
%
|
|
10.1
|
%
|
|
|
|
|
(As a percentage
of total sales)
|
|
|
|
General and
administrative expenses
|
9.0
|
%
|
|
8.8
|
%
|
Marketing and
advertising expenses
|
1.7
|
%
|
|
0.9
|
%
|
Selling, general and
administrative expenses
|
10.7
|
%
|
|
9.7
|
%
|
Luby's,
Inc.
|
Consolidated
Balance Sheets
|
(In thousands,
except per share data)
|
|
|
|
|
December
18,
2019
|
|
August
28,
2019
|
|
(Unaudited)
|
|
|
|
|
|
|
ASSETS
|
|
|
|
Current
Assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
3,734
|
|
|
$
|
3,640
|
|
Restricted cash and
cash equivalents
|
9,646
|
|
|
9,116
|
|
Trade accounts and
other receivables, net
|
10,471
|
|
|
8,852
|
|
Food and supply
inventories
|
2,556
|
|
|
3,432
|
|
Prepaid
expenses
|
1,350
|
|
|
2,355
|
|
Total current
assets
|
27,757
|
|
|
27,395
|
|
Property held for
sale
|
16,488
|
|
|
16,488
|
|
Assets related to
discontinued operations
|
1,813
|
|
|
1,813
|
|
Property and
equipment, net
|
119,202
|
|
|
121,743
|
|
Intangible assets,
net
|
16,349
|
|
|
16,781
|
|
Goodwill
|
514
|
|
|
514
|
|
Operating lease
right-of-use assets
|
24,781
|
|
|
—
|
|
Other
assets
|
1,002
|
|
|
1,266
|
|
Total
assets
|
$
|
207,906
|
|
|
$
|
186,000
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Current
Liabilities:
|
|
|
|
Accounts
payable
|
$
|
7,553
|
|
|
$
|
8,465
|
|
Liabilities related
to discontinued operations
|
25
|
|
|
14
|
|
Current portion of
credit facility debt
|
3,399
|
|
|
—
|
|
Operating lease
liabilities-current
|
5,921
|
|
|
—
|
|
Accrued expenses and
other liabilities
|
26,251
|
|
|
24,475
|
|
Total current
liabilities
|
43,149
|
|
|
32,954
|
|
Credit facility
debt
|
45,629
|
|
|
45,439
|
|
Operating lease
liabilities-noncurrent
|
24,235
|
|
|
—
|
|
Other
liabilities
|
844
|
|
|
6,577
|
|
Total
liabilities
|
$
|
113,857
|
|
|
$
|
84,970
|
|
Commitments and
Contingencies
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
Common stock, $0.32
par value; 100,000,000 shares authorized; shares issued were
30,646,588 and 30,478,972, respectively; shares outstanding were
30,146,588 and 29,978,972, at December 18, 2019 and August 28, 2019
respectively
|
9,807
|
|
|
9,753
|
|
Paid-in
capital
|
35,146
|
|
|
34,870
|
|
Retained
earnings
|
53,871
|
|
|
61,182
|
|
Less cost of treasury
stock, 500,000 shares
|
(4,775)
|
|
|
(4,775)
|
|
Total shareholders'
equity
|
94,049
|
|
|
101,030
|
|
Total liabilities and
shareholders' equity
|
$
|
207,906
|
|
|
$
|
186,000
|
|
Luby's,
Inc.
|
Consolidated
Statements of Cash Flows (unaudited)
|
(In
thousands)
|
|
|
Quarter
Ended
|
|
December
18,
2019
|
|
December
19,
2018
|
|
(16
weeks)
|
|
(16
weeks)
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
Net loss
|
$
|
(8,338)
|
|
|
$
|
(7,489)
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
Provision for asset
impairments and net losses on property sales
|
1,140
|
|
|
1,376
|
|
Depreciation and
amortization
|
3,762
|
|
|
4,903
|
|
Amortization of debt
issuance cost
|
339
|
|
|
449
|
|
Share-based
compensation expense
|
366
|
|
|
439
|
|
Cash used in
operating activities before changes in operating assets and
liabilities
|
(2,731)
|
|
|
(322)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
Decrease (increase)
in trade accounts and other receivables
|
(1,549)
|
|
|
733
|
|
Decrease (increase)
in food and supply inventories
|
369
|
|
|
(123)
|
|
Decrease in prepaid
expenses and other assets
|
804
|
|
|
1,881
|
|
Decrease in operating
lease assets
|
1,922
|
|
|
—
|
|
Decrease in operating
lease liabilities
|
(2,313)
|
|
|
—
|
|
Increase (decrease)
in accounts payable, accrued expenses and other
liabilities
|
1,367
|
|
|
(912)
|
|
Net cash provided by
(used in) operating activities
|
(2,131)
|
|
|
1,257
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
Proceeds from
disposal of assets and property held for sale
|
149
|
|
|
171
|
|
Purchases of property
and equipment
|
(694)
|
|
|
(1,119)
|
|
Net cash used in
investing activities
|
(545)
|
|
|
(948)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
Revolver
borrowings
|
3,300
|
|
|
18,506
|
|
Revolver
repayments
|
—
|
|
|
(38,500)
|
|
Proceeds from term
loan
|
—
|
|
|
58,400
|
|
Term loan
repayments
|
—
|
|
|
(19,506)
|
|
Debt issuance
costs
|
—
|
|
|
(3,155)
|
|
Taxes paid on equity
withheld
|
—
|
|
|
(8)
|
|
Net cash provided by
financing activities
|
3,300
|
|
|
15,737
|
|
Net increase in cash
and cash equivalents and restricted cash
|
624
|
|
|
16,046
|
|
Cash and cash
equivalents and restricted cash at beginning of period
|
12,756
|
|
|
3,722
|
|
Cash and cash
equivalents and restricted cash at end of period
|
$
|
13,380
|
|
|
$
|
19,768
|
|
Cash paid
for:
|
|
|
|
Income taxes, net of
(refunds)
|
$
|
(17)
|
|
|
$
|
29
|
|
Interest
|
1,302
|
|
|
1,637
|
|
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
segments. The following table reconciles between store
level profit, a non-GAAP measure to loss from continuing
operations, a GAAP measure:
($
thousands)
|
Quarter
Ended
|
|
December
18,
2019
|
|
December
19,
2018
|
|
(16
weeks)
|
|
(16
weeks)
|
|
|
|
|
Store level
profit
|
$
|
7,808
|
|
|
$
|
9,225
|
|
|
|
|
|
Plus:
|
|
|
|
Sales from culinary
contract services
|
9,774
|
|
|
9,496
|
|
Sales from franchise
operations
|
1,707
|
|
|
2,224
|
|
|
|
|
|
Less:
|
|
|
|
Opening
costs
|
12
|
|
|
33
|
|
Cost of culinary
contract services
|
8,948
|
|
|
8,815
|
|
Cost of franchise
operations
|
565
|
|
|
273
|
|
Depreciation and
amortization
|
3,762
|
|
|
4,903
|
|
Selling, general and
administrative expenses
|
10,158
|
|
|
10,010
|
|
Other
charges
|
1,238
|
|
|
1,214
|
|
Provision for asset
impairments and restaurant closings
|
1,110
|
|
|
1,227
|
|
Net loss on
disposition of property and equipment
|
30
|
|
|
149
|
|
Interest
income
|
(23)
|
|
|
—
|
|
Interest
expense
|
1,962
|
|
|
1,713
|
|
Other income,
net
|
(240)
|
|
|
(30)
|
|
Provision for income
taxes
|
94
|
|
|
121
|
|
Loss from continuing
operations
|
$
|
(8,327)
|
|
|
$
|
(7,483)
|
|
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, other charges, 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
|
|
|
December
18,
2019
|
|
December
19,
2018
|
|
|
(16
weeks)
|
|
(16
weeks)
|
Loss from
continuing operations
|
|
$
|
(8,327)
|
|
|
$
|
(7,483)
|
|
Depreciation and
amortization
|
|
3,762
|
|
|
4,903
|
|
Provision for income
taxes
|
|
|
94
|
|
|
|
121
|
|
Interest
expense
|
|
1,962
|
|
|
1,713
|
|
Interest
income
|
|
(23)
|
|
|
—
|
|
Other
charges
|
|
1,238
|
|
|
1,214
|
|
Net loss on
disposition of property and equipment
|
|
30
|
|
|
149
|
|
Provision for asset
impairments and restaurant closings
|
|
1,110
|
|
|
1,227
|
|
Non-cash compensation
expense
|
|
366
|
|
|
425
|
|
Franchise
taxes
|
|
55
|
|
|
67
|
|
Increase in fair
value of derivative
|
|
—
|
|
|
88
|
|
Adjusted
EBITDA
|
|
$
|
267
|
|
|
$
|
2,424
|
|
View original
content:http://www.prnewswire.com/news-releases/lubys-reports-first-quarter-fiscal-2020-results-300997391.html
SOURCE Luby's, Inc.