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


 

Cision View original content:http://www.prnewswire.com/news-releases/lubys-reports-first-quarter-fiscal-2020-results-300997391.html

SOURCE Luby's, Inc.

Copyright 2020 PR Newswire

Lubys (NYSE:LUB)
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more Lubys Charts.
Lubys (NYSE:LUB)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more Lubys Charts.