8-K

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):  November 3, 2008 (October 31, 2008)

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))

Item 1.01. Entry into a Material Definitive Agreement.

On October 31, 2008, J. Alexander’s Corporation (the “Company”) entered into the Third Amendment (the “Third Amendment”) to its Loan Agreement dated as of May 12, 2003, by and among the Company and J. Alexander’s Restaurants, Inc., collectively as the Borrower, and Bank of America, N.A., as the Lender, as amended by that certain First Amendment to the Loan Agreement dated January 20, 2004 and that certain Second Amendment to the Loan Agreement dated September 20, 2006 (the “Loan Agreement”).

The Third Amendment to the Loan Agreement changes the maximum adjusted debt to EBITDAR ratio from 3.5 to 1 to 4.5 to 1 until March 29, 2009 and then 3.5 to 1 at the end of each fiscal quarter thereafter. Under the Loan Agreement, EBITDAR is defined as the sum of net income for the applicable period (excluding the effect of any extraordinary or non-recurring gains or losses) plus an amount which, in the determination of net income for such period has been deducted for (i) interest expense for such period;  (ii) total federal, state, foreign or other income taxes for such period; (iii) all depreciation and amortization for such period; (iv) rent payments; and (v) non-cash FASB 123R items, i.e., stock based compensation, all as determined in accordance with GAAP. Adjusted debt is (i) the Company’s debt obligations net of any short term investments, cash or cash equivalents plus (ii) rent payments multiplied by eight.

The foregoing description of the Third Amendment does not purport to be complete and is qualified in its entirety by reference to the Third Amendment, a copy of which is filed as Exhibit 10.1 to this Current Report on Form 8-K.

Item 2.02. Results of Operations and Financial Condition.

On October 31, 2008, The Company issued a press release announcing its financial results for the third quarter ended September 28, 2008, (the “Earnings Press Release”) the text of which is set forth in Exhibit 99.1.

Item 7.01. Regulation FD Disclosure.

The Company’s press release announcing its financial results for the third quarter ended September 28, 2008 is furnished as Exhibit 99.1.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits:

The following exhibits are filed or furnished herewith as noted above:

10.1 Third Amendment to Loan Agreement dated October 31, 2008, by and among the Company, J. Alexander’s Restaurants, Inc. and Bank of America, N.A.

99.1 Earnings Press Release issued by J. Alexander’s Corporation dated October 31, 2008.

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:  November 3, 2008	J. ALEXANDER’S CORPORATION
	By:	/s/ R. Gregory Lewis
		R. Gregory Lewis Chief Financial Officer, Vice President of Finance and Secretary

EXHIBIT INDEX

Exhibit No.	Description
10.1	Third Amendment to Loan Agreement dated October 31, 2008, by and among the Company, J. Alexander’s Restaurants, Inc. and Bank of America, N.A.
99.1	Earnings Press Release issued by J. Alexander’s Corporation dated October 31, 2008

EX-10

Exhibit 10.1

THIRD AMENDMENT TO LOAN AGREEMENT

This Third Amendment to Loan Agreement (“Amendment”) is dated as of October 31, 2008, by and among J. ALEXANDER’S CORPORATION, J. ALEXANDER’S RESTAURANTS, INC., both Tennessee corporations (collectively referred to as the “Borrower”), and BANK OF AMERICA, N.A., a national banking association (“Lender”).

W I T N E S S E T H

WHEREAS, Borrower and Lender entered into that certain Loan Agreement dated May 12, 2003, as amended by that certain First Amendment to Loan Agreement dated January 20, 2004, as amended by that certain Second Amendment to Loan Agreement dated September 20, 2006 (the “Loan Agreement”); and

WHEREAS, Borrower has requested and Lender has agreed to amend the Loan Agreement as set forth herein.

NOW, THEREFORE, as an inducement to cause Lender to extend credit to Borrower, and for other valuable consideration, the receipt and sufficiency of which are acknowledged, it is agreed as follows:

1.           Capitalized terms not defined herein shall have the meaning contained in the Loan Agreement.

2.           Section 1(b) of the Loan Agreement is hereby deleted in its entirety and in lieu thereof shall read as follows:

“(b) “Applicable Margin” means for any Fiscal Quarter the applicable rate per annum in excess of the LIBOR Fixed Rate set forth in the table below:

LEVEL	Ratio of Adjusted Debt to EBITDAR	Applicable Margin	Unused Commitment Fee %
I	Less than or equal to 2.50	2.25%	0.25%
II	Less than or equal to 3.00 but greater than 2.50	2.75%	0.50%
III	Less than or equal to 4.00 but greater than 3.00	3.25%	0.50%
IV	Greater than 4.00	3.75%	0.75%

3.           Section 1(d) of the Loan Agreement is hereby deleted in its entirety and in lieu thereof shall read as follows:

“(d) “Base Rate” means the LIBOR Fixed Rate plus the Applicable Margin.  For purposes hereof, the Applicable Margin will be that shown as Level II in the table contained in the definition of Applicable Margin for the period from October 17, 2008 until delivery by Borrower of the quarterly financial statements of the Borrower in accordance with Section 17(b) for the Fiscal Quarter ending September 28, 2008.  Upon receipt of the Borrower’s quarterly financial statements for such Fiscal Quarter, Lender shall determine if the results of such financial statements justify resetting the Applicable Margin to another Level, and if so, then the Applicable Margin shall be retroactively adjusted as of the first day of the then Fiscal Quarter to Level I, II, III, or IV, as applicable, and shall continue to the last day of such Fiscal Quarter. This will continue each Fiscal Quarter thereafter.  If Borrower fails to deliver the quarterly financial statements in accordance with time limits set forth in Section 17(b), the Applicable Margin shall be retroactively adjusted as of the first day of the then Fiscal Quarter to Level III.”

4.           Effective September 28, 2008, Section 34(a) of the Loan Agreement is hereby deleted in its entirety and in lieu thereof shall read as follows:

“(a) Fixed Charge Coverage Ratio.  The Fixed Charge Coverage Ratio measured at the end of each fiscal quarter computed on a trailing four quarters basis shall be at least 1.50 to 1.00.  For purposes hereof, the Fixed Charge Coverage Ratio is defined as: (Net Income (excluding the effect of any extraordinary or non-recurring gains or losses) plus depreciation and amortization plus interest expense plus rent payments plus non-cash FASB 123R items, i.e., stock based compensation plus changes in the valuation allowance for deferred tax assets, minus the greater of i) total store maintenance capital expenditures (excluding major remodeling or image enhancements), or ii) the total number of Borrower’s stores operating for at least 18 months multiplied by $40,000.00) divided by (interest expense plus rent payments plus current maturities of long term debt plus current maturities of capital leases, plus an amount equal to the aggregate value of all stock redemptions during the applicable period).”

5.           Effective September 28, 2008, Section 34(b) of the Loan Agreement is hereby deleted in its entirety and in lieu thereof shall read as follows:

“(b) Maximum Adjusted Debt to EBITDAR Ratio.  The Maximum Adjusted Debt to EBITDAR Ratio measured at the end of each fiscal quarter computed on a trailing four quarters basis shall be less than 4.50 to 1.00 through March 29, 2009 and 3.50 to 1.00 at the end of each fiscal quarter thereafter.  For purposes hereof, the Maximum Adjusted Debt to EBITDAR Ratio is defined as the ratio of (i) total Funded Debt minus Invested Funds plus (rent payments multiplied by 8), to (ii) EBITDAR.  For purposes hereof, Invested Funds is defined as short term, liquid investments such as money markets with maturities less than one year in length, and cash and cash equivalents; provided that investments into any joint venture or any endeavor not consistent with the Borrower’s core restaurant operating business without the written consent of Lender shall be specifically excluded.  For purposes hereof, EBITDAR is defined as the sum of Net Income for such period (excluding the effect of any extraordinary or non-recurring gains or losses) plus an amount which, in the determination of Net Income for such period has been deducted for (i) interest expense for such period;  (ii) total federal, state, foreign or other income taxes for such period; (iii) all depreciation and amortization for such period; (iv) rent payments; and (v) non-cash FASB 123R items, i.e., stock based compensation, all as determined in accordance with GAAP.”

6.           Collateral, Security Interest & Liens.  Borrower hereby acknowledges that the Revolving Loan is secured by the Lender’s security interest and liens in certain real property located in Lyndhurst, Ohio and Northbrook, Illinois, as evidenced by that certain Open End Mortgage Deed, Security Agreement and Assignment of Rents and Leases made by J. Alexander’s Corporation in favor of Lender dated May 12, 2003 and of record as instrument no. 200305230500, Cuyahoga County, Ohio Recorder’s Office; and that certain Mortgage dated May 12, 2003 made by J. Alexander’s Restaurants, Inc. in favor of Lender and of record as Instrument No. 0317517012, Cook County, Illinois, Recorder of Deeds, both as amended.  Furthermore, Borrower has executed in favor of Lender those certain Negative Pledge Agreements whereby Borrower has agreed to refrain from granting a security interest or lien in certain real property owned by Borrower as more particularly set forth therein.

7.           Representations & Warranties; Waiver & Release.  When the Borrower signs this Amendment, the Borrower represents and warrants to the Lender that after giving effect to this Amendment:  (a) there is no event which is, or with notice or lapse of time or both would be, a default under the Loan Documents except those events, if any, that have been disclosed in writing to the Lender or waived in writing by the Lender, (b) the representations and warranties in the Loan Agreement are true as of the date of this Amendment as if made on the date of this Amendment (except with regard to matters expressed only as of a specific time or which have been supplemented or superseded by disclosures to Lender in writing), (c) this Amendment does not conflict with any law, agreement, or obligation by which the Borrower is bound, and (d) this Amendment is within the Borrower's powers, has been duly authorized, and does not conflict with any of the Borrower's organizational papers.  Borrower further acknowledges that Borrower’s obligations evidenced by the Loan Documents are not subject to any counterclaim, defense or right of set-off and Borrower does hereby release Lender from any claim, known or unknown, that Borrower may have against Lender as of the execution of this Amendment.

8.           Conditions.  This Amendment will be effective when the Lender receives the following items, in form and content acceptable to the Lender:

(a) If the Borrower or any guarantor is anything other than a natural person, evidence that the execution, delivery and performance by the Borrower and/or such guarantor of this Amendment and any instrument or agreement required under this Amendment have been duly authorized.

(b) Payment by the Borrower of a loan modification fee in the amount of Fifteen Thousand  Dollars ($15,000.00).

(c) Payment by the Borrower of all costs, expenses and attorneys' fees (including allocated costs for in-house legal services) incurred by the Lender in connection with this Amendment.

9.           Effect of Amendment.  Except as provided in this Amendment, all of the terms and conditions of the Loan Agreement shall remain in full force and effect.  The validity, construction and enforcement hereof shall be determined according to the substantive laws of the State of Tennessee.

10.         Counterparts.  This Amendment may be executed in counterparts, each of which when so executed shall be deemed an original, but all such counterparts together shall constitute but one and the same instrument.

11.           FINAL AGREEMENT. BY SIGNING THIS DOCUMENT EACH PARTY REPRESENTS AND AGREES THAT:  (A) THIS DOCUMENT REPRESENTS THE FINAL AGREEMENT BETWEEN PARTIES WITH RESPECT TO THE SUBJECT MATTER HEREOF, (B) THIS DOCUMENT SUPERSEDES ANY COMMITMENT LETTER, TERM SHEET OR OTHER WRITTEN OUTLINE OF TERMS AND CONDITIONS RELATING TO THE SUBJECT MATTER HEREOF, UNLESS SUCH COMMITMENT LETTER, TERM SHEET OR OTHER WRITTEN OUTLINE OF TERMS AND CONDITIONS EXPRESSLY PROVIDES TO THE CONTRARY, (C) THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES, AND (D) THIS DOCUMENT MAY NOT BE CONTRADICTED BY EVIDENCE OF ANY PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OR UNDERSTANDINGS OF THE PARTIES.

IN WITNESS WHEREOF, the parties have executed this Amendment to be effective the day and year first above written (except as otherwise set forth herein).

BANK OF AMERICA, N.A. By: /s/ William H. Diehl Title: Senior Vice President	J. ALEXANDER’S CORPORATION By: /s/ R. Gregory Lewis Title: Vice President and Chief Financial Officer
	J. ALEXANDER’S RESTAURANTS, INC. By: /s/ R. Gregory Lewis Title: Vice President

EX-99

Exhibit 99.1

FOR IMMEDIATE RELEASE	CONTACT:   R. Gregory Lewis
	(615) 269-1900

J. ALEXANDER’S CORPORATION REPORTS RESULTS

 FOR THIRD QUARTER AND FIRST NINE MONTHS OF 2008

NASHVILLE, TN, October 31, 2008 -- J. Alexander’s Corporation (NASDAQ: JAX) today reported operating results for the third quarter and first nine months of 2008.

A summary of the results for the third quarter of 2008 compared to the third period of 2007 follows:

·   Net sales decreased 3.0% to $32,361,000 from $33,356,000.

·   Average weekly same store sales per restaurant decreased by 7.9%.

·   The loss before income taxes for the quarter, which included pre-opening expense of $872,000, was $2,421,000, compared to income before income taxes of $240,000 in 2007.  The 2007 results included $537,000 of pre-opening expense.

·   The third quarter of 2008 included an income tax benefit of $426,000, compared to a benefit of $150,000 in 2007.

·   The net loss for the most recent quarter was $1,995,000, or $.30 per share, compared to net income of $390,000, or $ .06 per diluted share, in the comparable quarter of 2007.

For the first nine months of 2008, J. Alexander’s Corporation recorded net sales of $104,614,000, down slightly from $104,623,000 reported in the first three periods of 2007.  The Company recorded net income of $804,000, or $.12 per diluted share, for the first three quarters of 2008, down from $3,368,000, or $ .48 per diluted share, posted in the corresponding nine months of 2007.

Net income for the first nine months of 2008 included an income tax benefit of $343,000 compared to income tax expense of $952,000 recorded in the same period of 2007.  The income tax benefit recorded in 2008 relates primarily to the effect of tax credits earned by the Company which exceed the tax liability computed at statutory rates.

Commenting on the results for the third quarter of 2008, Lonnie J. Stout II, Chairman, President and Chief Executive Officer, said, “The quarter just ended was awful.  Same store sales, which were down for the fourth consecutive quarter, fell nearly 8%.  This marked the largest decline ever posted by J. Alexander’s restaurants.

“We have never quite seen anything like the consumer environment we are in today,” Stout observed.   “Our issues continue to be directly linked to changing spending patterns by consumers caused by poor economic conditions.  Our downturn in revenue for the recent quarter included sales weakness in virtually all J. Alexander’s restaurants.”

Stout continued, “The consumer environment continues to be impacted by the events of the financial markets.  In September we experienced increased weakening of sales trends that were already under significant pressure.  This is the absolute worst retail environment I have personally observed in my business career.  We anticipate the retail environment will remain weak and we will continue to post same store sales declines until the economic conditions that have caused this dramatic consumer pullback abate.  The frequency of dining out in upscale restaurants as seen throughout the industry has decreased dramatically over the last few months.”

Stout explained that while J. Alexander’s Corporation continues to have significant issues in the revenue area, he was pleased with the Company’s expense control management in the third quarter of 2008.

 J. Alexander’s Corporation’s average weekly same store sales per restaurant decreased to $84,300 in the most recent quarter from $91,500 in the corresponding period a year earlier.  Same store sales calculations are based on restaurants open for more than 18 months.  The Company’s average weekly sales per restaurant for the third quarter of 2008 decreased 10.8% to $81,600 from $91,500 in the 2007 quarter.

The Company’s average guest check, including alcoholic beverage sales, in the third quarter of 2008 did not change compared to the corresponding period a year earlier, while average guest counts on a same store basis declined by approximately 7.7%.  Menu prices in the third quarter of 2008 were estimated to be less than 1.0% higher than in 2007.

During the third quarter of 2008, J. Alexander’s Corporation recorded pre-opening expense of $872,000 related primarily to the opening of its newest J. Alexander’s restaurant in Orlando, Florida and in connection with a new restaurant opened in Scottsdale, Arizona at the beginning of the fourth quarter.  Due to the opening of the Orlando location, along with two other restaurants opened in the fourth quarter of 2007, restaurant labor and related costs were up $401,000 for the quarter while other operating expenses rose $690,000.

Cost of sales for the third quarter of 2008 was 33.0% of net sales, up from 32.8% in the third period a year ago.  While the Company experienced significant increases in input costs for a number of food products, the overall increase in cost of sales was constrained by lower prices paid for beef, which was purchased at market prices in 2008 rather than at fixed contract prices as in 2007.  The effect of the lower beef prices was approximately 1.0% of net sales.

Restaurant labor and related costs for the most recent quarter, including the impact of three new restaurants, were 35.4% of net sales, as compared to 33.2% in the corresponding period of 2007.  The Company’s restaurant operating margins (net sales minus total restaurant operating expenses divided by net sales) decreased to 4.0% in the third quarter of 2008 from 9.9% in the 2007 period.

For the first nine months of 2008, J. Alexander's Corporation had weekly average same store sales per restaurant of $91,100, down 4.8% from $95,700 recorded in the corresponding nine months of 2007.  The Company’s average weekly sales per restaurant for the first three quarters of 2008 were $89,100, down 6.9% from $95,700 reported in the same three quarters a year earlier.

Cost of sales for the first nine months of 2008 was 32.1%, as compared to 32.4% in the comparable first nine months of 2007.  Restaurant labor and related costs for the first three quarters of the current year were 32.9% of net sales, as compared to 32.0% of net sales in the first three periods a year ago.  The Company’s restaurant operating margins decreased to 9.7% in the first nine months of 2008, as compared to 12.2% in the comparable three quarters of 2007.

 J. Alexander’s Corporation’s new restaurant development program for 2008 includes three new J. Alexander’s locations.  The Orlando restaurant opened in the third quarter while a J. Alexander’s restaurant in Scottsdale, Arizona, opened early in the fourth quarter.  The third location is scheduled to open in early December in Jacksonville, Florida.  Stout said that no new restaurants are planned for opening in 2009, noting that the Company is opting to be cautious and conserve its capital until there is a clearer picture of the future of the economy.

 “Our outlook for the final quarter of 2008 has not changed from the previous period,” Stout said.  “Our research shows we have not lost our guests, but that they are dining with us less frequently.  Our research also indicates that consumers are not likely to resume normal spending patterns in the near future.  We expect continued same store sales declines in the fourth quarter.”

Stout said that because of the effect of expected same store sales declines, rising costs and expected operating losses which are typically incurred in newer restaurants, management expects that results for the fourth quarter of 2008 will be significantly below those recorded in the fourth quarter of 2007.  He said the Company expects to incur pre-opening expense of approximately $400,000 in the final quarter of 2008 related to the Jacksonville restaurant.

“These are very difficult times,” Stout said, “but we will stay focused on being strong operators delivering exceptional food and service on a consistent basis to our customers.”

J. Alexander’s Corporation operates 32 J. Alexander’s restaurants in Alabama, Arizona, Colorado, Florida, Georgia, Illinois, Kansas, Kentucky, Louisiana, Michigan, Ohio, Tennessee and Texas.  J. Alexander’s is an upscale, contemporary American restaurant known for its wood-fired cuisine.  The Company’s menu features a wide selection of American classics, including steaks, prime rib of beef and fresh seafood, as well as a large assortment of interesting salads, sandwiches and desserts.  J. Alexander’s also has a full-service bar that features an outstanding selection of wines by the glass and bottle.

J. Alexander’s Corporation is headquartered 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 maintain satisfactory guest count levels and increase  sales and operating margins in its restaurants; changes in business or economic conditions, including rising food costs and product shortages as well as mandated  increases in the minimum wage the Company is required to pay; the effect of  higher gasoline prices and other economic factors on consumer demand; 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 NASDAQ Stock Market LLC.  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.

Tables follow

J. Alexander's Corporation and Subsidiaries

Consolidated Statements of Operations

(Unaudited in thousands, except per share amounts)

	Quarter Ended						Nine Months Ended
	Sept. 28			Sept. 30			Sept. 28			Sept. 30
	2008			2007			2008			2007
Net sales	$	32,361		$	33,356		$	104,614		$	104,623
Costs and expenses:
Cost of sales		10,695			10,945			33,546			33,938
Restaurant labor and related costs		11,469			11,068			34,421			33,430
Depreciation and amortization of restaurant
property and equipment		1,492			1,304			4,382			3,881
Other operating expenses		7,426			6,736			22,105			20,571
Total restaurant operating expenses		31,082			30,053			94,454			91,820
General and administrative expenses		2,470			2,264			7,394			7,074
Pre-opening expense		872			537			1,205			593
Operating income (loss)		(2,063	)		502			1,561			5,136
Other income (expense):
Interest expense		(402	)		(406	)		(1,281	)		(1,357	)
Interest income		27			127			130			486
Other, net		17			17			51			55
Total other expense		(358	)		(262	)		(1,100	)		(816	)
Income (loss) before income taxes		(2,421	)		240			461			4,320
Income tax benefit (provision)		426			150			343			(952	)
Net income (loss)	$	(1,995	)	$	390		$	804		$	3,368
Earnings (loss) per share:
Basic earnings per share	$	(.30	)	$	.06		$	.12		$	.51
Diluted earnings per share	$	(.30	)	$	.06		$	.12		$	.48
Weighted average number of shares:
Basic earnings per share		6,679			6,639			6,672			6,607
Diluted earnings per share		6,679			7,019			6,867			6,976

J. Alexander's Corporation and Subsidiaries

Consolidated Statements of Operations

Percentages of Net Sales (Unaudited)

	Quarter Ended						Nine Months Ended
	Sept. 28			Sept. 30			Sept. 28			Sept. 30
	2008			2007			2008			2007
Net sales		100.0	%		100.0	%		100.0	%		100.0	%
Costs and expenses:
Cost of sales		33.0			32.8			32.1			32.4
Restaurant labor and related costs		35.4			33.2			32.9			32.0
Depreciation and amortization of restaurant
property and equipment		4.6			3.9			4.2			3.7
Other operating expenses		22.9			20.2			21.1			19.7
Total restaurant operating expenses		96.0			90.1			90.3			87.8
General and administrative expenses		7.6			6.8			7.1			6.8
Pre-opening expense		2.7			1.6			1.2			0.6
Operating income (loss)		(6.4	)		1.5			1.5			4.9
Other income (expense):
Interest expense		(1.2	)		(1.2	)		(1.2	)		(1.3	)
Interest income		0.1			0.4			0.1			0.5
Other, net		0.1			0.1			-			0.1
Total other expense		(1.1	)		(0.8	)		(1.1	)		(0.8	)
Income (loss) before income taxes		(7.5	)		0.7			0.4			4.1
Income tax benefit (provision)		1.3			0.4			0.3			(0.9	)
Net income (loss)		(6.2	)%		1.2	%		0.8	%		3.2	%
Note: Certain percentage totals do not sum due to rounding.
Average Weekly Sales Information:
Average weekly sales per restaurant	$	81,600		$	91,500		$	89,100		$	95,700
Percent change		-10.8	%					-6.9	%
Same store weekly sales per restaurant (1)	$	84,300		$	91,500		$	91,100		$	95,700
Percent change		-7.9	%					-4.8	%

(1) Includes the twenty-eight restaurants open for more than eighteen months.

J. Alexander's Corporation and Subsidiaries

Condensed Consolidated Balance Sheets

(Unaudited in thousands)

	September 28		December 30
	2008		2007
ASSETS
Current Assets
Cash and cash equivalents	$	4,882	$	11,325
Deferred income taxes		1,047		1,047
Other current assets		6,439		6,258
Total current assets		12,368		18,630
Other assets		1,462		1,341
Property and equipment, net		86,354		78,551
Deferred income taxes		5,583		5,341
Deferred charges, net		667		716
	$	106,434	$	104,579
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities	$	14,977	$	14,218
Long-term debt and capital lease obligations		20,696		21,349
Other long-term liabilities		7,037		6,431
Stockholders' equity		63,724		62,581
	$	106,434	$	104,579