-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, RSF2bF7TJRrayumkVJiIkc1UUCzYXkGB4CVkUMS+FlTrXyav5xP9l+1rX53SGSAS GwkXMrjaKoCMiQlHH34eqw== 0000950144-06-001716.txt : 20060302 0000950144-06-001716.hdr.sgml : 20060302 20060302155703 ACCESSION NUMBER: 0000950144-06-001716 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060302 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060302 DATE AS OF CHANGE: 20060302 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ALEXANDERS J CORP CENTRAL INDEX KEY: 0000103884 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-EATING PLACES [5812] IRS NUMBER: 620854056 STATE OF INCORPORATION: TN FISCAL YEAR END: 0103 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-08766 FILM NUMBER: 06659890 BUSINESS ADDRESS: STREET 1: 3401 WEST END AVE STREET 2: P O BOX 24300 CITY: NASHVILLE STATE: TN ZIP: 37203 BUSINESS PHONE: 6152691900 MAIL ADDRESS: STREET 1: 3401 WEST END AVE STREET 2: SUITE 260 CITY: NASHVILLE STATE: TN ZIP: 37203 FORMER COMPANY: FORMER CONFORMED NAME: VOLUNTEER CAPITAL CORP / TN / DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: WINNERS CORP DATE OF NAME CHANGE: 19890910 FORMER COMPANY: FORMER CONFORMED NAME: VOLUNTEER CAPITAL CORP DATE OF NAME CHANGE: 19820520 8-K 1 g99891e8vk.htm J. ALEXANDER'S CORPORATION - FORM 8-K J. ALEXANDER'S CORPORATION - FORM 8-K
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): March 2, 2006 (March 2, 2006)

J. ALEXANDER’S CORPORATION

(Exact name of registrant as specified in its charter)
         
Tennessee   1-08766   62-0854056
         
(State or Other Jurisdiction of Incorporation)   (Commission File Number)   (I.R.S. Employer
Identification No.)
     

3401 West End Avenue, Suite 260, P.O. Box 24300, Nashville, Tennessee 37202

(Address of principal executive offices) (Zip Code)

(615) 269-1900

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

     Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 
 

 

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Item 2.02. Results of Operations and Financial Condition.
Item 7.01. Regulation FD Disclosure.
Item 9.01. Financial Statements and Exhibits.
SIGNATURE
EXHIBIT INDEX
EX-99.1 PRESS RELEASE 03/02/06

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Item 2.02. Results of Operations and Financial Condition.

     On March 2, 2006, J. Alexander’s Corporation issued a press release announcing its financial results for the fourth quarter and year ended January 1, 2006, the text of which is set forth in Exhibit 99.1.

Item 7.01. Regulation FD Disclosure.

     J. Alexander’s Corporation’s press release announcing its financial results for the fourth quarter and year ended January 1, 2006 is furnished as Exhibit 99.1.

Item 9.01. Financial Statements and Exhibits.

     (c) Exhibits:

          The following exhibit is furnished herewith:

          99.1      Press Release dated March 2, 2006.

2

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SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
         
Date: March 2, 2006  J. ALEXANDER’S CORPORATION
 		  
  By:   /s/ R. Gregory Lewis    
    R. Gregory Lewis   
    Chief Financial Officer, Vice President of Finance and Secretary   

3

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EXHIBIT INDEX

         
Exhibit No.   Description
  99.1    
Press Release issued by J. Alexander’s Corporation dated March 2, 2006

4

EX-99.1 2 g99891exv99w1.txt EX-99.1 PRESS RELEASE 03/02/06 EXHIBIT 99.1 FOR IMMEDIATE RELEASE CONTACT: R. Gregory Lewis - --------------------- (615) 269-1900 J. ALEXANDER'S CORPORATION REPORTS FOURTH QUARTER AND YEAR END RESULTS FOR 2005 NASHVILLE, TN., March 2, 2006 -- J. Alexander's Corporation (AMEX: JAX) today announced operating results for its fourth quarter and year ended January 1, 2006. Highlights for the 13-week fourth quarter of 2005 compared to the 14-week fourth quarter of 2004 were as follows: - - Net sales were $33.5 million in both periods. - - Weighted average weekly same store sales, adjusted for hurricane-related closure days, increased 4.4%. - - Income before income taxes decreased to $1.4 million from $1.7 million. - - Net income was $1.2 million, or $.18 per diluted share, compared to $3.0 million, or $.45 per diluted share in 2004. Net income for 2005 included a favorable adjustment of $122,000, or $.02 per diluted share, to the Company's income tax provision related to a reduction in the Company's valuation allowance for deferred tax assets. Net income for 2004 included a similar adjustment of $1.5 million, or $.23 per diluted share. - - The Company opened its 28th J. Alexander's restaurant. Highlights for the 52-week 2005 fiscal year compared to the 53-week 2004 fiscal year were as follows: - - Net sales increased 3.0% to $126.6 million. - - Weighted average weekly same store sales, adjusted for hurricane-related closure days, increased 3.9%. - - Income before income taxes totaled $4.4 million for both periods. J. Alexander's Corporation Reports Fourth Quarter and Year End Results for 2005 - 2 - - Net income was $3.6 million, or $.52 per diluted share, compared to $4.8 million, or $.71 per diluted share in 2004. Net income for 2005 included a favorable adjustment of $122,000, or $.02 per diluted share, to the Company's income tax provision related to a reduction in the Company's valuation allowance for deferred tax assets. Net income for 2004 included a similar adjustment of $1.5 million, or $.23 per diluted share. Commenting on the Company's performance, Lonnie J. Stout II, Chairman, President and Chief Executive Officer, said, "Our results for 2005 were impacted by several factors. These included one less operating week, the effects of a severe hurricane season, and pre-opening expenses along with initial operating losses from the opening of our new restaurant in Nashville. While some of these factors were outside our control, we were nonetheless disappointed that we did not achieve all of our operating objectives." Stout noted that, even after adjustment for the effects of hurricanes, the Company's weekly average same store sales increase for the year was slightly below the Company's business plan objective. Net sales were also below expectations due to a delay in the opening of the Company's newest J. Alexander's restaurant in Nashville. "Our restaurant operating expenses were higher than expected due to significant increases in utility costs, along with cost increases in several other operating expense categories," Stout explained. Despite the increases in operating expenses, Stout said the Company was able to lower cost of sales as a percentage of net sales primarily as a result of changes in pricing format and increases in menu prices during the year. The Company estimates that net sales lost from the effect of hurricanes were approximately $365,000 in the fourth quarter of 2005 and $465,000 for fiscal year 2005. This compares to estimated net sales losses from hurricanes of $300,000 in the third J. Alexander's Corporation Reports Fourth Quarter and Year End Results for 2005 - 3 quarter of 2004. Net income for both the fourth quarter and full year of 2005 were reduced by an estimated $.02 per diluted share related to the effect of hurricanes. Net income for 2004 included an estimated loss of $.01 per diluted share related to hurricanes. Approximately $2.5 million of net sales were recorded in the extra week included in the 2004 fiscal year. Weekly average same store sales for the 13 weeks ended January 1, 2006 compared to the comparable 13 weeks ended January 2, 2005 increased by 3.9%, after adjustment for the hurricane-related closure days for both periods. The increase for the comparable 13 week periods without adjustment for days the Company's restaurants were closed was 2.7%. Same store sales calculations are based on 27 restaurants open for more than 18 months. Average weekly guest counts for the most recent quarter, adjusted for the hurricane-related closures, decreased by less than 1%. The Company's check average, including alcoholic beverage sales, increased approximately 6%. Average weekly sales per restaurant for the fourth quarter of 2005 increased 4.9% to $92,200 from $87,900 posted for the fourth period of the prior year. Income before income taxes for the fourth quarter of 2005 included $296,000 of pre-opening expenses and fiscal year 2005 included $411,000 of pre-opening expenses, while no pre-opening expenses were incurred in 2004. Income before income taxes also included income of $532,000 and $166,000 for the fourth quarters of 2005 and 2004, respectively, related to reductions in liabilities for gift certificates and cards which, although they do not expire, management believes are only remotely likely to be J. Alexander's Corporation Reports Fourth Quarter and Year End Results for 2005 - 4 redeemed. The Company's 2004 fourth quarter and full year pre-tax results also included a gain of $117,000 on a settlement of a real estate eminent domain proceeding. Stout pointed out that although pressure on operating margins was considerable in 2005, the Company was successful in building same store sales by increasing guest check average while, at the same time, maintaining acceptable guest counts. "This momentum has carried over to 2006," he said, "and our projected operating results for the first quarter of 2006 are very encouraging. Our same store sales were up almost 5% for the first eight weeks of 2006 compared to the same period of 2005." Stout noted that the Company's food cost outlook is relatively stable, but that beef prices will increase under the Company's recently completed annual beef pricing agreement which will be effective in March. The Company expects its costs for beef tenderloins and prime rib to increase by approximately $400,000 annually under the new agreement, while an increase in the price of strip loins is expected to be offset by a change in specifications to allow for more efficient cutting yields. Stout said the Company expects to raise menu prices on prime rib and some steaks to compensate for the higher input costs. "We are constantly monitoring our restaurant margins and will continue to carefully consider menu price increases to maintain or improve them," Stout observed. He emphasized that rising utility costs are continuing to impact operating expenses in the first quarter of 2006. According to the J. Alexander's CEO, the Company's newest restaurant in Nashville, Tennessee has been performing well since opening last fall and is expected to make a positive contribution in the current year. The Company continues to actively seek J. Alexander's Corporation Reports Fourth Quarter and Year End Results for 2005 - 5 new J. Alexander's restaurants, with this effort being lead by Rick Carson, director of real estate, a veteran restaurant real estate executive who joined the Company last July. While no new J. Alexander's restaurants are expected to open in 2006, the Company's goal is to open two new locations in 2007. Stout said the Company expects same store sales growth for 2006 to remain in the 3% to 5% range. He said the Company also anticipates an increase in net income due to improved restaurant margins and profit contributed by the new J. Alexander's restaurant opened in October of 2005, and because no pre-opening expenses are expected to be incurred in 2006. J. Alexander's Corporation presently owns 28 J. Alexander's contemporary, upscale, American casual dining restaurants which place a special emphasis on food quality and professional service. The Company's restaurants are located in Alabama, Colorado, Florida, Georgia, Illinois, Kansas, Kentucky, Louisiana, Michigan, Ohio, Tennessee and Texas. The Company is based in Nashville, Tennessee. This press release contains forward-looking statements that involve risks and uncertainties. Actual results, performance or developments could differ materially from those expressed or implied by those forward-looking statements as a result of known or unknown risks, uncertainties and other factors. These risks, uncertainties and factors include the Company's ability to increase sales and operating margins in its restaurants; changes in business or economic conditions, including rising food costs and product shortages; availability of qualified employees; increased cost of utilities, insurance and other restaurant operating expenses; potential fluctuations of quarterly operating results due to seasonality and other factors; the effect of hurricanes and other weather disturbances which are beyond the control of the Company; the number and timing of new restaurant openings and the Company's ability to operate them profitably; competition within the casual dining industry, which is very intense; competition by the Company's new restaurants with its existing restaurants in the same vicinity; changes in consumer spending, consumer tastes, and consumer attitudes toward nutrition and health; expenses incurred if the Company is the subject of claims or litigation or increased governmental regulation; changes in accounting standards, which may affect the Company's reported results of operations; and expenses the Company may incur in order to comply with changing corporate governance and public disclosure requirements of the Securities and Exchange Commission and the American Stock Exchange. These as well as other factors are discussed in detail in the Company's filings made with the Securities and Exchange Commission and other communications. J. Alexander's Corporation Reports Fourth Quarter and Year End Results for 2005 - 6 J. ALEXANDER'S CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Quarter Ended Year Ended ------------- ---------- JAN. 1 Jan. 2 JAN. 1 Jan. 2 2006 2005 2006 2005 -------- -------- --------- --------- (13 WEEKS) (14 weeks) (52 WEEKS) (53 weeks) Net sales .................................... $ 33,466 $ 33,488 $ 126,617 $ 122,918 Costs and expenses: Cost of sales ............................. 11,012 11,187 41,710 41,324 Restaurant labor and related costs ........ 10,276 10,237 39,860 38,597 Depreciation and amortization of restaurant property and equipment .................. 1,255 1,218 4,835 4,703 Other operating expenses .................. 6,516 6,362 24,639 23,361 -------- -------- --------- --------- Total restaurant operating expenses ..... 29,059 29,004 111,044 107,985 General and administrative expenses .......... 2,336 2,280 9,081 8,568 Pre-opening expense .......................... 296 -- 411 -- Gain on involuntary property conversion ...... -- 117 -- 117 -------- -------- --------- --------- Operating income ............................. 1,775 2,321 6,081 6,482 Other income (expense): Interest expense, net ..................... (440) (556) (1,770) (2,130) Other, net ................................ 16 (18) 114 26 -------- -------- --------- --------- Total other expense ..................... (424) (574) (1,656) (2,104) -------- -------- --------- --------- Income before income taxes ................... 1,351 1,747 4,425 4,378 Income tax provision (benefit): Current ................................... 693 602 1,772 1,444 Deferred .................................. (567) (1,888) (907) (1,888) -------- -------- --------- --------- Total ................................... 126 (1,286) 865 (444) -------- -------- --------- --------- Net income ................................... $ 1,225 $ 3,033 $ 3,560 $ 4,822 ======== ======== ========= ========= Earnings per share: Basic earnings per share .................. $ .19 $ .47 $ .55 $ .75 ======== ======== ========= ========= Diluted earnings per share ................ $ .18 $ .45 $ .52 $ .71 ======== ======== ========= ========= Weighted average number of shares: Basic earnings per share .................. 6,524 6,455 6,489 6,446 Diluted earnings per share ................ 6,836 6,769 6,814 6,781
J. Alexander's Corporation Reports Fourth Quarter and Year End Results for 2005 - 7 J. ALEXANDER'S CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME PERCENTAGES OF NET SALES
Quarter Ended Year Ended ------------- ---------- JAN. 1 Jan. 2 JAN. 1 Jan. 2 2006 2005 2006 2005 ---- ---- ---- ---- (13 weeks) (14 weeks) (52 weeks) (53 weeks) Net sales.............................................. 100.0% 100.0% 100.0% 100.0% Costs and expenses: Cost of sales..................................... 32.9 33.4 32.9 33.6 Restaurant labor and related costs................ 30.7 30.6 31.5 31.4 Depreciation and amortization of restaurant property and equipment.......................... 3.8 3.6 3.8 3.8 Other operating expenses.......................... 19.5 19.0 19.5 19.0 ---- ---- ---- ---- Total restaurant operating expenses............. 86.8 86.6 87.7 87.9 General and administrative expenses.................. 7.0 6.8 7.2 7.0 Pre-opening expense.................................. 0.9 -- 0.3 -- Gain on involuntary property conversion.............. -- 0.3 -- 0.1 ----- --- ----- --- Operating income..................................... 5.3 6.9 4.8 5.3 Other income (expense): Interest expense, net............................ (1.3) (1.7) (1.4) (1.7) Other, net........................................ -- (0.1) 0.1 -- ----- ---- --- ---- Total other expense............................. (1.3) (1.7) (1.3) (1.7) ---- ---- ---- Income before income taxes........................... 4.0 5.2 3.5 3.6 Income tax provision (benefit): Current........................................... 2.1 1.8 1.4 1.2 Deferred ........................................ (1.7) (5.6) (0.7) (1.5) ---- ------ ---- ----- Total........................................... 0.4 (3.8) 0.7 (0.4) ----- ----- ----- ----- Net income........................................... 3.7% 9.1% 2.8% 3.9% ===== ===== ===== ===== Note: Certain percentage totals do not sum due to rounding. AVERAGE WEEKLY SALES INFORMATION: Average weekly sales per restaurant.................. $92,200 $87,900 $89,300 $85,800 Percent increase................................ +4.9% +4.1% Same store weekly sales per restaurant (1)........... $91,800 $87,900 $90,000 $86,600 Percent increase................................ +4.4% +3.9%
(1) Includes the twenty-seven restaurants open for more than eighteen months. J. Alexander's Corporation Reports Fourth Quarter and Year End Results for 2005 - 8 J. ALEXANDER'S CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (DOLLARS IN THOUSANDS)
JANUARY 1 January 2 2006 2005 ---- ---- ASSETS Current Assets Cash and cash equivalents ............. $ 8,200 $ 6,129 Deferred income taxes ................. 1,170 1,327 Other current assets .................. 4,542 4,501 ------- ------- Total current assets ............... 13,912 11,957 Other assets ................................ 1,164 1,122 Property and equipment, net ................. 74,187 72,425 Deferred income taxes ....................... 4,304 3,236 Deferred charges, net ....................... 733 814 ------- ------- $94,300 $89,554 ======= ======= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities ......................... $12,244 $11,392 Long-term debt and capital lease obligations 23,193 24,017 Other long-term liabilities ................. 5,103 4,543 Stockholders' equity ........................ 53,760 49,602 ------- ------- $94,300 $89,554 ======= =======
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