þ
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Tennessee
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62-0854056
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(State or other jurisdiction of
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(I.R.S. Employer
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incorporation or organization)
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Identification No.)
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3401 West End Avenue, Suite 260
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P.O. Box 24300
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Nashville, Tennessee
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37202
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(Address of principal executive offices)
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(Zip Code)
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Large accelerated filer ¨
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Accelerated filer ¨
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Non-accelerated filer ¨
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Smaller reporting company þ
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(Do not check if a smaller reporting company)
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2
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9
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17
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17
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18
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19
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20
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EX-101 XBRL Data Files
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July 3
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January 2
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|||||||
2011
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2011
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|||||||
ASSETS
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||||||||
CURRENT ASSETS
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||||||||
Cash and cash equivalents
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$
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9,545
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$
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8,602
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||||
Income taxes receivable
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319
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306
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||||||
Accounts and notes receivable
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1,898
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2,390
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||||||
Inventories
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1,398
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1,262
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Prepaid expenses and other current assets
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1,370
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1,348
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||||||
TOTAL CURRENT ASSETS
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14,530
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13,908
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||||||
OTHER ASSETS
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1,803
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1,684
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||||||
PROPERTY AND EQUIPMENT, at cost, less accumulated depreciation and | ||||||||
amortization of $63,743 and $61,313 as of July 3, 2011 and January 2, 2011, | ||||||||
respectively
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73,103
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74,699
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||||||
DEFERRED INCOME TAXES
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152
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152
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||||||
DEFERRED CHARGES, less accumulated amortization of $950 and $898 as | ||||||||
of July 3, 2011 and January 2, 2011, respectively
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458
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508
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||||||
$
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90,046
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$
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90,951
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July 3
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January 2
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|||||||
2011
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2011
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|||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
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||||||||
CURRENT LIABILITIES
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||||||||
Accounts payable
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$
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3,357
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$
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4,355
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||||
Accrued expenses and other current liabilities
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5,382
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5,820
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||||||
Unearned revenue
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1,263
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1,858
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||||||
Current portion of long-term debt and obligations under capital leases
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992
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1,038
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||||||
TOTAL CURRENT LIABILITIES
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10,994
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13,071
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||||||
LONG-TERM DEBT AND OBLIGATIONS UNDER CAPITAL LEASES, | ||||||||
net of portion classified as current
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17,929
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18,479
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||||||
OTHER LONG-TERM LIABILITIES
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11,223
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10,871
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||||||
STOCKHOLDERS’ EQUITY
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||||||||
Common Stock, par value $.05 per share: Authorized 10,000,000 shares; | ||||||||
issued and outstanding 5,993,453 and 5,966,942 shares as of July 3, 2011 | ||||||||
and January 2, 2011, respectively
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300
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298
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||||||
Preferred Stock, no par value: Authorized 1,000,000 shares; none issued
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-
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-
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||||||
Additional paid-in capital
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34,434
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34,185
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||||||
Retained earnings
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15,166
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14,047
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||||||
TOTAL STOCKHOLDERS’ EQUITY
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49,900
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48,530
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||||||
Commitments and Contingencies
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||||||||
$
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90,046
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$
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90,951
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Quarter Ended
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Six Months Ended
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|||||||||||||||
July 3
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July 4
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July 3
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July 4
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|||||||||||||
2011
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2010
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2011
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2010
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|||||||||||||
Net sales
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$
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38,564
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$
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36,336
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$
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79,313
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$
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75,061
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||||||||
Costs and expenses:
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||||||||||||||||
Cost of sales
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12,801
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11,774
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26,253
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23,975
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||||||||||||
Restaurant labor and related costs
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13,007
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12,518
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26,211
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25,351
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||||||||||||
Depreciation and amortization of restaurant property and equipment
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1,477
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1,493
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2,943
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3,019
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||||||||||||
Other operating expenses
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8,430
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8,163
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16,837
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16,619
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||||||||||||
Total restaurant operating expenses
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35,715
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33,948
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72,244
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68,964
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||||||||||||
General and administrative expenses
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2,391
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2,278
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4,835
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4,439
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||||||||||||
Operating income
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458
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110
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2,234
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1,658
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||||||||||||
Other income (expense):
|
||||||||||||||||
Interest expense
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(419
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) |
(482
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)
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(843
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)
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(967
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)
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||||||||
Other, net
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8
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15
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28
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33
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||||||||||||
Total other expense
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(411
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) |
(467
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)
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(815
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)
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(934
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)
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||||||||
Income (loss) before income taxes
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47
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(357
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)
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1,419
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724
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|||||||||||
Income tax benefit (provision)
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10
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383
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(300
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)
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99
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|||||||||||
Net income
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$
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57
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$
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26
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$
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1,119
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$
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823
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||||||||
Basic earnings per share
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$
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.01
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$
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-
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$
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.19
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$
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.14
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||||||||
Diluted earnings per share
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$
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.01
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$
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-
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$
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.18
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$
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.14
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Six Months Ended
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||||||||
July 3
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July 4
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|||||||
2011
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2010
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Cash flows from operating activities:
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||||||||
Net income
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$
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1,119
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$
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823
|
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Adjustments to reconcile net income to net cash provided by operating activities:
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||||||||
Depreciation and amortization of property and equipment
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2,972
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3,048
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Share-based compensation expense
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195
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237
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Other
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78
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116
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Changes in assets and liabilities:
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||||||||
Accounts and notes receivable
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492
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920
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||||||
Income taxes receivable
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(13
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)
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(279
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)
|
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Prepaid expenses and other current assets
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(22
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)
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(77
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)
|
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Accounts payable
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(980
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)
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286
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|||||
Accrued expenses and other current liabilities
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(438
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)
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(580
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)
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Other, net
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(393
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)
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(97
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)
|
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Net cash provided by operating activities
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3,010
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4,397
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Cash flows from investing activities:
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||||||||
Purchase of property and equipment
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(1,510
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)
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(981
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)
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Other investing activities
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(16
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)
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(73
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)
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Net cash used in investing activities
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(1,526
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)
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(1,054
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)
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Cash flows from financing activities:
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Payments on debt and obligations under capital leases
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(596
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)
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(880
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)
|
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Decrease in bank overdraft
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-
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(2,594
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)
|
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Other financing activities
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55
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17
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Net cash used in financing activities
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(541
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)
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(3,457
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)
|
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Increase (decrease) in cash and cash equivalents
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943
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(114
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)
|
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Cash and cash equivalents at beginning of period
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8,602
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5,613
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||||||
Cash and cash equivalents at end of period
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$
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9,545
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$
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5,499
|
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Supplemental disclosures of non-cash items:
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||||||||
Property and equipment obligations accrued at beginning of period
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$
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549
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$
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219
|
||||
Property and equipment obligations accrued at end of period
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$
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531
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$
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476
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Quarter Ended
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Six Months Ended
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|||||||||||||||
July 3
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July 4
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July 3
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July 4
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|||||||||||||
(In thousands, except per share amounts)
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2011
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2010
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2011
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2010
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||||||||||||
Numerator:
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||||||||||||||||
Net income (numerator for basic and diluted earnings per share)
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$
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57
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$
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26
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$
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1,119
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$
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823
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||||||||
Denominator:
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||||||||||||||||
Weighted average shares (denominator for basic earnings per share)
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5,991
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5,951
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5,984
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5,949
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||||||||||||
Effect of dilutive securities
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97
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62
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89
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40
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||||||||||||
Adjusted weighted average shares (denominator for diluted earnings per share)
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6,088
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6,013
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6,073
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5,989
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||||||||||||
Basic earnings per share
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$
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.01
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$
|
-
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$
|
.19
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$
|
.14
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||||||||
Diluted earnings per share
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$
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.01
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$
|
-
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$
|
.18
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$
|
.14
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Quarter Ended
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Six Months Ended
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|||||||||||||||||||
July 3
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July 4
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July 3
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July 4
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|||||||||||||||||
2011
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2010
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2011
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2010
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|||||||||||||||||
Net sales
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100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||
Costs and expenses:
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||||||||||||||||||||
Cost of sales
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33.2 | 32.4 | 33.1 | 31.9 | ||||||||||||||||
Restaurant labor and related costs
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33.7 | 34.5 | 33.0 | 33.8 | ||||||||||||||||
Depreciation and amortization of restaurant property and equipment
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3.8 | 4.1 | 3.7 | 4.0 | ||||||||||||||||
Other operating expenses
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21.9 | 22.5 | 21.2 | 22.1 | ||||||||||||||||
Total restaurant operating expenses
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92.6 | 93.4 | 91.1 | 91.9 | ||||||||||||||||
General and administrative expenses
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6.2 | 6.3 | 6.1 | 5.9 | ||||||||||||||||
Operating income
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1.2 | 0.3 | 2.8 | 2.2 | ||||||||||||||||
Other income (expense):
|
||||||||||||||||||||
Interest expense
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(1.1 | ) | (1.3 | ) | (1.1 | ) | (1.3 | ) | ||||||||||||
Other, net
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- | - | - | - | ||||||||||||||||
Total other expense
|
(1.1 | ) | (1.3 | ) | (1.0 | ) | (1.2 | ) | ||||||||||||
Income (loss) before income taxes
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0.1 | (1.0 | ) | 1.8 | 1.0 | |||||||||||||||
Income tax benefit (provision)
|
- | 1.1 | (0.4 | ) | 0.1 | |||||||||||||||
Net income
|
0.1 | % | 0.1 | % | 1.4 | % | 1.1 | % |
Restaurants open at end of period
|
33
|
33
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||||||||||||||||||
Average weekly sales per restaurant (1)
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$
|
89,900
|
$
|
84,800
|
$
|
92,600
|
$
|
87,500
|
||||||||||||
Percent increase
|
6.0
|
% |
5.8
|
% |
(1) |
The Company computes average weekly sales per restaurant by dividing total restaurant sales for the period by the total number of days all restaurants were open for the period to obtain a daily sales average, with the daily sales average then multiplied by seven to arrive at average weekly sales per restaurant. Days on which restaurants are closed for business for any reason other than the scheduled closure of all J. Alexander’s restaurants on Thanksgiving day and Christmas day are excluded from this calculation. Revenue associated with reductions in liabilities for gift cards which are considered to be only remotely likely to be redeemed is not included in the calculation of average weekly sales per restaurant.
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Wendy’s restaurants (14 leases)
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$
|
2,000,000
|
||
Mrs. Winner’s Chicken & Biscuits restaurants (12 leases)
|
800,000
|
|||
Total contingent liability related to assigned leases
|
$
|
2,800,000
|
(a)
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Evaluation of disclosure controls and procedures. The Company’s principal executive officer and principal financial officer have conducted an evaluation of the effectiveness of the Company’s disclosure controls and procedures (as defined in Exchange Act Rule 13a-15(e) and 15d-15(e)) as of the end of the period covered by this quarterly report. Based on that evaluation, the Company’s principal executive officer and principal financial officer concluded that, as of the end of the period covered by this quarterly report, the Company’s disclosure controls and procedures were effective.
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(b)
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Changes in internal controls. There were no changes in the Company’s internal control over financial reporting that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.
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J. ALEXANDER’S CORPORATION
|
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Date: August 17, 2011
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/s/ Lonnie J. Stout II
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Lonnie J. Stout II
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Chairman, President and Chief Executive Officer
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(Principal Executive Officer)
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Date: August 17, 2011
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/s/ R. Gregory Lewis
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R. Gregory Lewis
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Vice President and Chief Financial Officer
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(Principal Financial Officer)
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Exhibit No. | |
Exhibit 31.1
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Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
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Exhibit 31.2
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Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
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Exhibit 32.1
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Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
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Exhibit 101
|
The following financial statements from the Company’s 10-Q for the fiscal quarter ended July 3, 2011, formatted in XBRL: (i) Condensed Consolidated Statements of Income, (ii) Condensed Consolidated Balance Sheets, (iii) Condensed Consolidated Statements of Cash Flows and (iv) Notes to Condensed Consolidated Financial Statements
|
20 |
1.
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I have reviewed this Quarterly Report on Form 10-Q of J. Alexander’s Corporation;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
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4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
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c)
|
evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
By:
|
/s/ Lonnie J. Stout II
|
|
Lonnie J. Stout II
|
||
Chairman of the Board, Chief Executive Officer and President
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of J. Alexander’s Corporation;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
|
evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
By:
|
/s/ R. Gregory Lewis
|
|
R. Gregory Lewis
|
||
Vice President, Chief Financial Officer and Secretary
|
/s/ Lonnie J. Stout II
|
|
Lonnie J. Stout II
|
|
Chairman of the Board, Chief Executive Officer and President
|
|
August 17, 2011
|
|
/s/ R. Gregory Lewis
|
|
R. Gregory Lewis
|
|
Vice President, Chief Financial Officer and Secretary
|
|
August 17, 2011
|
Condensed Consolidated Balance Sheets (Parenthetical) (USD $)
In Thousands, except Share data |
Jul. 03, 2011
|
Jan. 02, 2011
|
---|---|---|
Condensed Consolidated Balance Sheets | Â | Â |
Property and equipment, accumulated depreciation and amortization | $ 63,743 | $ 61,313 |
Deferred charges, accumulated amortization | $ 950 | $ 898 |
Common stock, par value | $ 0.05 | $ 0.05 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 5,993,453 | 5,966,942 |
Common stock, shares outstanding | 5,993,453 | 5,966,942 |
Preferred stock, no par value | ||
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Condensed Consolidated Statements Of Income (USD $)
In Thousands, except Per Share data |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 03, 2011
|
Jul. 04, 2010
|
Jul. 03, 2011
|
Jul. 04, 2010
|
|
Condensed Consolidated Statements Of Income | Â | Â | Â | Â |
Net sales | $ 38,564 | $ 36,336 | $ 79,313 | $ 75,061 |
Costs and expenses: | Â | Â | Â | Â |
Cost of sales | 12,801 | 11,774 | 26,253 | 23,975 |
Restaurant labor and related costs | 13,007 | 12,518 | 26,211 | 25,351 |
Depreciation and amortization of restaurant property and equipment | 1,477 | 1,493 | 2,943 | 3,019 |
Other operating expenses | 8,430 | 8,163 | 16,837 | 16,619 |
Total restaurant operating expenses | 35,715 | 33,948 | 72,244 | 68,964 |
General and administrative expenses | 2,391 | 2,278 | 4,835 | 4,439 |
Operating income | 458 | 110 | 2,234 | 1,658 |
Other income (expense): | Â | Â | Â | Â |
Interest expense | (419) | (482) | (843) | (967) |
Other, net | 8 | 15 | 28 | 33 |
Total other expense | (411) | (467) | (815) | (934) |
Income (loss) before income taxes | 47 | (357) | 1,419 | 724 |
Income tax benefit (provision) | 10 | 383 | (300) | 99 |
Net income | $ 57 | $ 26 | $ 1,119 | $ 823 |
Basic earnings per share | $ 0.01 | $ 0.00 | $ 0.19 | $ 0.14 |
Diluted earnings per share | $ 0.01 | $ 0.00 | $ 0.18 | $ 0.14 |
Document And Entity Information
|
6 Months Ended | |
---|---|---|
Jul. 03, 2011
|
Aug. 15, 2011
|
|
Document And Entity Information | Â | Â |
Document Type | 10-Q | Â |
Amendment Flag | false | Â |
Document Period End Date | Jul. 03, 2011 | |
Document Fiscal Period Focus | Q2 | Â |
Document Fiscal Year Focus | 2011 | Â |
Entity Registrant Name | ALEXANDERS J CORP | Â |
Entity Central Index Key | 0000103884 | Â |
Current Fiscal Year End Date | --01-01 | Â |
Entity Filer Category | Smaller Reporting Company | Â |
Entity Common Stock, Shares Outstanding | Â | 5,993,453 |
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Income Taxes
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Jul. 03, 2011
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Income Taxes | Â |
Income Taxes | Note C – Income TaxesAt the end of each interim period, companies are generally required to estimate their annual effective income tax rate and provide for income taxes by applying that rate to year-to-date operating results. For the first half of 2011, the Company's income tax provision is based on an estimated effective tax rate of 21.1% for fiscal 2011. Because the Company was unable as of the end of the first six months of 2010 to make what it believed was a reliable estimate of the annual effective tax rate for 2010, income taxes for the first six months of 2010 were calculated based on the actual effective rate computed for that period. In addition, in the second quarter of 2010 the Company recorded income tax benefits of approximately $500,000 related to tax strategies which it had determined would be implemented in connection with accelerating certain tax deductions for the 2009 tax year. In connection with the preparation of its financial statements for fiscal year 2009, the Company determined that a valuation allowance for substantially all of its deferred tax assets was necessary in order to reflect the Company's assessment of its ability to realize the benefit of those assets. Such valuation allowance has been maintained as of July 3, 2011 and, as long as the Company maintains a valuation allowance for all, or substantially all, of its net deferred tax assets, the Company's income tax provisions will consist of income tax expense currently payable or the income tax benefit currently receivable which amounts will include the effect of differences between book and taxable income. The Internal Revenue Service is currently conducting an examination of the Company's federal income tax returns for fiscal years 2008 and 2009. |
Basis Of Presentation
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Jul. 03, 2011
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Basis Of Presentation | Â |
Basis Of Presentation | Note A — Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and with the instructions to Form 10-Q and rules of the United States Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (including normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the quarter and six months ended July 3, 2011, are not necessarily indicative of the results that may be expected for the fiscal year ending January 1, 2012. For further information, refer to the Consolidated Financial Statements and footnotes thereto included in the J. Alexander's Corporation (the "Company") Annual Report on Form 10-K for the fiscal year ended January 2, 2011. Net income and comprehensive income are the same for all periods presented. |
Commitments And Contingencies
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Jul. 03, 2011
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Commitments And Contingencies | Â |
Commitments And Contingencies | Note D – Commitments and ContingenciesAs a result of the disposition of its Wendy's operations in 1996, the Company remains secondarily liable for certain real property leases with remaining terms of one to five years. The total estimated maximum amount of lease payments remaining on these ten leases as of July 3, 2011, was approximately $1,500,000. Also, in connection with the sale of its Mrs. Winner's Chicken & Biscuit restaurant operations in 1989 and certain previous dispositions, the Company remains secondarily liable for certain real property leases with remaining terms of one to four years. The total estimated maximum amount of lease payments remaining on these 12 leases as of July 3, 2011, was approximately $800,000. Additionally, in connection with the previous disposition of certain other Wendy's restaurant operations, primarily the southern California restaurants in 1982, the Company remains secondarily liable for real property leases with remaining terms of one to four years. The total estimated maximum amount of lease payments remaining on these four leases as of July 3, 2011, was approximately $500,000. The Company is from time to time subject to routine litigation incidental to its business. The Company believes that the results of such legal proceedings will not have a materially adverse effect on the Company's financial condition, operating results or liquidity. |
Fair Value Measurements
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6 Months Ended |
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Jul. 03, 2011
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Fair Value Measurements | Â |
Fair Value Measurements | Note E — Fair Value Measurements As of July 3, 2011 and January 2, 2011, the fair value of cash and cash equivalents, accounts receivable, inventory, accounts payable and accrued expenses and other current liabilities approximated their carrying value based on the short maturity of these instruments. The fair value of long-term mortgage financing is determined using current applicable interest rates for similar instruments and collateral as of the balance sheet date. The carrying value and estimated fair value of the Company's mortgage loan were $18,755,000 and $17,633,000, respectively, as of July 3, 2011 compared to $19,331,000 and $17,875,000, respectively, at January 2, 2011. There were no assets and liabilities measured at fair value on a nonrecurring basis during the second quarter of fiscal 2011 or 2010. |
Recent Accounting Pronouncements
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Jul. 03, 2011
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Recent Accounting Pronouncements | Â |
Recent Accounting Pronouncements | Note F — Recent Accounting PronouncementsIn May 2011, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2011-04, "Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and International Financial Reporting Standards ("IFRS")." This pronouncement was issued to provide a consistent definition of fair value and ensure that the fair value measurement and disclosure requirements are similar between U.S. GAAP and IFRS. ASU 2011-04 changes certain fair value measurement principles and enhances the disclosure requirements particularly for Level 3 fair value measurements. This pronouncement is effective for reporting periods beginning on or after December 15, 2011. The adoption of ASU 2011-04 is not expected to have a significant impact to the Company's consolidated financial position or results of operations. |
Earnings Per Share
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Jul. 03, 2011
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Earnings Per Share | Â | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Note B – Earnings Per ShareThe following table sets forth the computation of basic and diluted earnings per share:
The calculations of diluted earnings per share exclude options for the purchase of 483,500 shares of the Company's common stock for the quarter and six-month period ended July 3, 2011, and 727,000 shares of the Company's common stock for the quarter and six-month period ended July 4, 2010, because the effect of their inclusion would be anti-dilutive. Subsequent to July 3, 2011, 223,000 options to purchase common stock at a market price of $5.50 were issued to members of the Board of Directors as well as to selected management employees. |