0001104659-21-026473.txt : 20210223 0001104659-21-026473.hdr.sgml : 20210223 20210223082545 ACCESSION NUMBER: 0001104659-21-026473 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 15 CONFORMED PERIOD OF REPORT: 20210223 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20210223 DATE AS OF CHANGE: 20210223 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CRACKER BARREL OLD COUNTRY STORE, INC CENTRAL INDEX KEY: 0001067294 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-EATING PLACES [5812] IRS NUMBER: 620812904 FISCAL YEAR END: 0730 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-25225 FILM NUMBER: 21663196 BUSINESS ADDRESS: STREET 1: PO BOX 787 CITY: LEBANON STATE: TN ZIP: 370880787 BUSINESS PHONE: 6154439217 MAIL ADDRESS: STREET 1: PO BOX 787 CITY: LEBANON STATE: TN ZIP: 37087 FORMER COMPANY: FORMER CONFORMED NAME: CBRL GROUP INC DATE OF NAME CHANGE: 19980730 8-K 1 tm217517d1_8k.htm 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): February 23, 2021

 

 

 

CRACKER BARREL OLD COUNTRY STORE, INC.

(Exact Name of Registrant as Specified in its Charter)

 

 

 

Tennessee   001-25225   62-0812904

(State or Other Jurisdiction

of Incorporation) 

  (Commission File Number)

(IRS Employer

Identification No.) 

         

305 Hartmann Drive, Lebanon, Tennessee 37087

(Address of Principal Executive Offices) (Zip code)

 

(615) 444-5533

(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:

 

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

 

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

 

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

 

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

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class   Trading Symbol(s)   Name of each exchange on which
registered

Common Stock (Par Value $0.01) Rights to Purchase Series A Junior Participating Preferred Stock (Par Value $0.01)

  CBRL   The Nasdaq Stock Market LLC
(Nasdaq Global Select Market)

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

 

Emerging growth company ¨

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

 

 

 

 

 

 

Item 2.02. Results of Operations and Financial Condition.

 

On February 23, 2021, Cracker Barrel Old Country Store, Inc. (the “Company”) issued a press release (the “Press Release”) announcing the Company’s fiscal 2021 second quarter results of operations and projected outlook of certain items for the remainder of fiscal 2021. A copy of the Press Release is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.

 

Item 9.01. Financial Statements and Exhibits.

 

  (d) Exhibits.
       
    Exhibit No.   Description
    99.1   Press Release issued by Cracker Barrel Old Country Store, Inc. dated February 23, 2021.
         
    104   Cover Page Interactive Data File (embedded within the Inline XBRL document).

 

 

 

 

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: February 23, 2021

 

CRACKER BARREL OLD COUNTRY STORE, INC.
   
   
  By: /s/ Richard M. Wolfson
  Name: Richard M. Wolfson
  Title: Senior Vice President, General Counsel and Corporate Secretary

 

 

 

EX-99.1 2 tm217517d1_ex99-1.htm EXHIBIT 99.1

Exhibit 99.1

 

 

 

Investor Contact:Adam Hanan
 (615) 443-9887

  

Media Contact:Heidi Pearce
 (615) 235-4135

 

CRACKER BARREL REPORTS SECOND QUARTER FISCAL 2021 RESULTS

 

LEBANON, Tenn. February 23, 2021 – Cracker Barrel Old Country Store, Inc. (“Cracker Barrel” or the “Company”) (Nasdaq: CBRL) today reported its financial results for the second quarter of fiscal 2021 ended January 29, 2021.

 

Second Quarter Fiscal 2021 Highlights

 

·Dining room service was adversely impacted by the nationwide resurgence of COVID-19 during the quarter, resulting in increased dining room closures and capacity restrictions compared to the first quarter.

 

·For the second quarter, comparable store restaurant sales decreased 21.9% and comparable store retail sales decreased 15.3% compared to the prior year quarter.

 

·Comparable store off-premise sales grew 78% over the prior year quarter and represented approximately 30% of restaurant sales.

 

·GAAP operating income in the second quarter was $14.4 million, or 2.1% of total revenue. Adjusted operating income was $17.6 million, or 2.6% of total revenue, compared to prior year quarter GAAP operating income of $79.1 million, or 9.4% of total revenue. (See non-GAAP reconciliation below.)

 

·GAAP earnings per diluted share were $0.59, and adjusted earnings per diluted share were $0.70, compared to prior year quarter GAAP earnings per diluted share of $2.55. (See non-GAAP reconciliation below.)

 

Commenting on the second quarter results, Cracker Barrel President and Chief Executive Officer Sandra B. Cochran said, “The resurgence of COVID-19 during the busy holiday and travel season impacted our business on a variety of fronts, but I was proud that our teams were able to provide a hospitable and safe experience for our guests and especially pleased at the number of guests who made us a part of their holiday celebrations in this unprecedented environment. Despite the challenges we faced in the second quarter, we expect to return to stronger levels of performance in the back half of the year.

 

The COVID-19 resurgence we experienced around the country during the second quarter impacted our guests and our employees and produced headwinds for both sales and margins. While our sales were largely in line with expectations coming out of the first quarter, monthly sales in the second quarter were volatile, as the resurgence forced unanticipated dining room closures, increased capacity restrictions, and disrupted typical holiday seasonal travel patterns. These closures and capacity restrictions also shifted our mix to a higher percentage of off-premise business during the busy holiday season, including a higher percentage of Heat n’ Serve sales, which is a lower margin offering and plays an outsized role in our holiday sales, particularly this year. Further, the shift to off-premise and the operational and staffing challenges caused by increased cases of COVID-19 negatively impacted food waste and labor efficiency during the quarter. Although we were pleased with our strong retail sales performance, the shift to a higher percent of total sales increased our cost of goods sold.

 

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February 23, 2021

 

Despite these challenges, our teams did an outstanding job delivering hospitality and care to our guests, and we believe these efforts further enhanced our position as the preferred choice for many families for their holiday celebrations. Looking ahead, we believe that as dining rooms open to greater capacities in the spring and summer, we should continue to see improvement in both sales and margin and believe that our business is well-positioned to capitalize on a more normalized environment. We are particularly focused on our fourth quarter, which is typically one of our biggest and most important quarters of the year.”

 

Second Quarter Fiscal 2021 Results

Revenue

The Company reported total revenue of $677.2 million for the second quarter of fiscal 2021, representing a decrease of 20% compared to the second quarter of the prior year. Cracker Barrel second quarter comparable store restaurant sales decreased 21.9% compared to the prior year quarter, which was comprised of a 24.2% decrease in comparable store restaurant traffic partially offset by a 2.3% increase in average check. Comparable store retail sales decreased 15.3% compared to the prior year quarter.

 

Cracker Barrel comparable store restaurant and retail sales for fiscal November, December, January, and the second quarter were as follows:

 

   Month
Ended
11/27/20
   Month
Ended
12/25/20
   Month
Ended
1/29/21
   Second
Quarter
Ended
1/29/21
 
Comparable store restaurant sales   (18.5)%   (28.8)%   (19.3)%   (21.9)%
Comparable store retail sales   (21.3)%   (18.4)%   (0.2)%   (15.3)%

 

Operating Income (EBIT)

GAAP operating income in the second quarter was $14.4 million, or 2.1% of total revenue. Excluding the approximately $3.2 million in non-cash amortization related to the gains on our previously disclosed sale-leaseback transactions, adjusted operating income was $17.6 million, or 2.6% of total revenue compared to prior year quarter GAAP operating income of $79.1 million, or 9.4% of total revenue. Second quarter operating income margin was negatively impacted by lower dine-in sales resulting from mandated dining-room closures and increased capacity restrictions. Additionally, lower seasonal travel, a higher percentage of lower margin Heat n’ Serve sales, and food waste and labor inefficiencies occasioned by the more challenging operational environment related to the COVID-19 resurgence pressured margins. (See non-GAAP reconciliation below.)

 

Net Income, EBITDA and Earnings per Diluted Share

Net income was $14.0 million, or 2.1% of total revenue, and EBITDA was $45.0 million, or 6.6% of total revenue, in the second quarter. GAAP earnings per diluted share were $0.59, and adjusted earnings per diluted share were $0.70, compared to prior year quarter GAAP earnings per diluted share of $2.55. (See non-GAAP reconciliation below.)

 

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Cracker Barrel Reports Second Quarter Fiscal 2021 Results

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February 23, 2021

 

Fiscal 2021 Outlook

Commenting on the Company’s outlook for the remainder of fiscal 2021, Ms. Cochran said, “We anticipate improved trends in both sales and operating income margin in the second half of our fiscal year as a result of stimulus spending, pent-up demand, continued vaccinations, and a lower COVID-19 caseload.

 

Despite the widespread and severe weather disruptions that we’ve seen across a number of our core markets in February, we are projecting that our third quarter will see us generate comparable store restaurant sales that are down between 11% and 14% from pre-pandemic 2019 levels, with comparable store retail sales down between 7% and 9% from 2019. We expect operating income margins to improve between 50 basis points and 100 basis points from the second quarter to the third quarter. This includes additional investment and ramp-up expenses associated with the continued rollout of key initiatives such as beer & wine, digital enhancements, and our new menu. We anticipate continued improvement in sales and operating income margin in our fourth quarter, as our stores gear up to welcome back more of our loyal guests.”

 

The Company also expects:

 

·Its effective tax rate for the full year to be between 17% and 18% but with significant variability from quarter to quarter.

·Fiscal second half:

 

oCommodity inflation of approximately 2%

oGeneral and Administrative expenses of approximately $75 million

oCapital Expenditures of approximately $60 million

 

Additionally, the Company expects to repay up to $375 million of its third-party borrowings in fiscal 2021, which includes the approximately $175 million that the Company has already repaid during the fiscal year-to-date.

 

The Company reminds investors that its outlook for fiscal 2021 reflects a number of assumptions, many of which are outside the Company’s control, and a continued uncertain environment occasioned by the pandemic.

 

Fiscal 2021 Second Quarter Conference Call

As previously announced, the live broadcast of Cracker Barrel’s quarterly conference call will be available to the public on-line at investor.crackerbarrel.com today beginning at 11:00 a.m. (ET). The on-line replay will be available at 2:00 p.m. (ET) and continue through March 9, 2021.

 

About Cracker Barrel Old Country Store®

Cracker Barrel Old Country Store, Inc. (Nasdaq: CBRL) shares warm welcomes and friendly service while offering guests high-quality homestyle food and unique shopping — all at a fair price. By creating a world filled with hospitality through an experience that combines dining and shopping, guests are cared for like family. Established in 1969 in Lebanon, Tenn., Cracker Barrel and its affiliates operate more than 660 company-owned Cracker Barrel Old Country Store® locations in 45 states and own the fast-casual Maple Street Biscuit Company. For more information about the company, visit crackerbarrel.com.

 

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Cracker Barrel Reports Second Quarter Fiscal 2021 Results

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February 23, 2021

 

CBRL-F

 

Except for specific historical information, certain of the matters discussed in this press release may express or imply projections of revenues or expenditures, statements of plans and objectives or future operations or statements of future economic performance. These, and similar statements are forward-looking statements concerning matters that involve risks, uncertainties and other factors which may cause the actual performance of Cracker Barrel Old Country Store, Inc. and its subsidiaries to differ materially from those expressed or implied by this discussion. All forward-looking information is subject to completion of our financial procedures for Q2 FY 2021 and is provided pursuant to the safe harbor established under the Private Securities Litigation Reform Act of 1995 and should be evaluated in the context of these factors. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "trends," "assumptions," "target," "guidance," "outlook," "opportunity," "future," "plans," "goals," "objectives," "expectations," "near-term," "long-term," "projection," "may," "will," "would," "could," "expect," "intend," "estimate," "anticipate," "believe," "potential," "regular," "should," "projects," "forecasts," or "continue" (or the negative or other derivatives of each of these terms) or similar terminology and include the expected effects of COVID-19 on our business, financial condition and results of operations and of operational improvement initiatives, such as new menu items and retail offerings. Factors which could materially affect actual results include, but are not limited to: risks and uncertainties associated with the COVID-19 pandemic, including the duration of the COVID-19 pandemic and its ultimate impact on our business, levels of consumer confidence in the safety of dine-in restaurants, restrictions (including occupancy restrictions) imposed by governmental authorities, the effectiveness of cost saving measures undertaken throughout our operations, disruptions to our operations as a result of the spread of COVID-19 in our workforce, and our increased level of indebtedness, or constraints on our expenditures or cash management, brought on by additional borrowing necessitated by the COVID-19 pandemic; general or regional economic weakness, business and societal conditions, and weather on sales and customer travel; discretionary income or personal expenditure activity of our customers; information technology-related incidents, including data privacy and information security breaches, whether as a result of infrastructure failures, employee or vendor errors, or actions of third parties; our ability to identify, acquire and sell successful new lines of retail merchandise and new menu items at our restaurants; our ability to sustain or the effects of plans intended to improve operational or marketing execution and performance; uncertain performance of acquired businesses, strategic investments and other initiatives that we may pursue now or in the future; changes in or implementation of additional governmental or regulatory rules, regulations and interpretations affecting tax, wage and hour matters, health and safety, pensions, insurance or other undeterminable areas; the effects of plans intended to promote or protect our brands and products; commodity price increases; the ability of and cost to us to recruit, train, and retain qualified hourly and management employees; the effects of increased competition at our locations on sales and on labor recruiting, cost, and retention; workers' compensation, group health and utility price changes; consumer behavior based on negative publicity or changes in consumer health or dietary trends or safety aspects of our food or products or those of the restaurant industry in general, including concerns about outbreaks of infectious disease, as well as the possible effects of such events on the price or availability of ingredients used in our restaurants; the effects of our indebtedness and associated restrictions on our financial and operating flexibility and ability to execute or pursue our operating plans and objectives; changes in interest rates, increases in borrowed capital or capital market conditions affecting our financing costs and ability to refinance all or portions of our indebtedness; the effects of business trends on the outlook for individual restaurant locations and the effect on the carrying value of those locations; our ability to retain key personnel; the availability and cost of suitable sites for restaurant development and our ability to identify those sites; our ability to enter successfully into new geographic markets that may be less familiar to us; changes in land, building materials and construction costs; the actual results of pending, future or threatened litigation or governmental investigations and the costs and effects of negative publicity or our ability to manage the impact of social media associated with these activities; economic or psychological effects of natural disasters or unforeseen events such as terrorist acts, social unrest or war and the military or government responses to such events; disruptions to our restaurant or retail supply chain, including as a result of COVID-19; changes in foreign exchange rates affecting our future retail inventory purchases; the impact of activist shareholders; our reliance on limited distribution facilities and certain significant vendors; implementation of new or changes in interpretation of existing accounting principles generally accepted in the United States of America ("GAAP"); and other factors described from time to time in our filings with the Securities and Exchange Commission, press releases, and other communications. Any forward-looking statement made by us herein, or elsewhere, speaks only as of the date on which made. We expressly disclaim any intent, obligation or undertaking to update or revise any forward-looking statements made herein to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based.

 

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Cracker Barrel Reports Second Quarter Fiscal 2021 Results

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February 23, 2021

 

CRACKER BARREL OLD COUNTRY STORE, INC.
CONDENSED CONSOLIDATED INCOME STATEMENT
(Unaudited)

(In thousands, except share and per share amounts, percentages and ratios)

 

   Second Quarter Ended   Six Months Ended 
           Percentage           Percentage 
   1/29/21   1/31/20   Change   1/29/21   1/31/20   Change 
Total revenue  $677,169   $846,143    (20)%  $1,323,623   $1,595,183    (17)%
Cost of goods sold, (exclusive of depreciation and rent)   225,084    272,207    (17)   424,128    492,021    (14)
Labor and other related expenses   236,862    284,777    (17)   464,050    548,091    (15)
Other store operating expenses   166,871    171,638    (3)   328,145    334,546    (2)
General and administrative expenses   33,957    38,386    (12)   73,521    78,017    (6)
Gain on sale-leaseback   0    0         (217,722)   0      
Operating income   14,395    79,135    (82)   251,501    142,508    76 
Interest expense   10,815    3,505    209    21,530    7,085    204 
Income before income taxes   3,580    75,630    (95)   229,971    135,423    70 
(Income tax benefit) provision for income taxes   (10,420)   10,878    (196)   45,291    21,468    111 
Loss from unconsolidated subsidiary   0    (3,584)        0    (9,564)     
Net income  $14,000   $61,168    (77)  $184,680   $104,391    77 
                               
Earnings per share – Basic:  $0.59   $2.55    (77)  $7.79   $4.35    79 
Earnings per share – Diluted:  $0.59   $2.55    (77)  $7.77   $4.34    79 
                               
Weighted average shares:                              
    Basic   23,723,395    23,950,811    (1)   23,715,573    23,994,583    (1)
    Diluted   23,785,374    24,005,817    (1)   23,778,302    24,054,870    (1)
                               
Ratio Analysis                              
Total revenue:                              
    Restaurant   77.0%   78.4%        78.3%   79.6%     
    Retail   23.0    21.6         21.7    20.4      
          Total revenue   100.0    100.0         100.0    100.0      
Cost of goods sold, (exclusive of depreciation and rent)   33.2    32.2         32.0    30.8      
Labor and other related expenses   35.0    33.6         35.1    34.4      
Other store operating expenses   24.7    20.3         24.8    21.0      
General and administrative expenses   5.0    4.5         5.6    4.9      
Gain on sale-leaseback   0.0    0.0         (16.5)   0.0      
Operating income   2.1    9.4         19.0    8.9      
Interest expense   1.6    0.5         1.6    0.4      
Income before income taxes   0.5    8.9         17.4    8.5      
(Income tax benefit) provision for income taxes   (1.6)   1.3         3.4    1.4      
Loss from unconsolidated subsidiary   0.0    (0.4)        0.0    (0.6)     
Net income   2.1%   7.2%        14.0%   6.5%     

 

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Cracker Barrel Reports Second Quarter Fiscal 2021 Results

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February 23, 2021

 

CRACKER BARREL OLD COUNTRY STORE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited and in thousands, except share amounts)

 

   1/29/21   1/31/20 
Assets          
Cash and cash equivalents  $568,839   $72,840 
Accounts receivable   22,361    20,778 
Inventories   134,768    157,352 
Prepaid expenses and other current assets   70,817    35,100 
Property and equipment, net   995,845    1,176,747 
Operating lease right-of-use assets, net   997,764    465,685 
Investment in unconsolidated subsidiary   0    79,536 
Intangible Assets   21,099    19,460 
Other assets   55,860    103,054 
Goodwill   4,690    6,364 
Total assets  $2,872,043   $2,136,916 
           
Liabilities and Shareholders’ Equity          
Accounts payable  $118,308   $123,318 
Other current liabilities   320,395    321,566 
Long-term debt   835,049    460,000 
Long-term operating lease liabilities   763,826    460,840 
Other long-term obligations   131,570    85,927 
Deferred income taxes   94,284    55,335 
Shareholders’ equity, net   608,611    629,930 
Total liabilities and shareholders’ equity  $2,872,043   $2,136,916 
           
Common shares issued and outstanding   23,724,412     23,943,248  

 

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Cracker Barrel Reports Second Quarter Fiscal 2021 Results

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February 23, 2021

 

CRACKER BARREL OLD COUNTRY STORE, INC.
CONDENSED CONSOLIDATED CASH FLOW STATEMENT

(Unaudited and in thousands)

 

   Six Months Ended 
   1/29/21   1/31/20 
Cash flows from operating activities:          
Net income  $184,680   $104,391 
Loss from unconsolidated subsidiary   0    9,564 
Depreciation and amortization   53,770    58,277 
Loss on disposition of property and equipment   1,933    4,005 
Gain on sale-leaseback   (217,722)   0 
Impairment   0    664 
Share-based compensation   3,966    3,920 
Noncash lease expense   27,704    30,845 
Amortization of asset recognized from gain on sale and leaseback transaction   6,368    0 
(Increase) decrease in inventories   4,323    (2,167)
Increase (decrease) in accounts payable   14,804    (10,779)
Net changes in other assets and liabilities   41,490    (14,716)
Net cash provided by operating activities   121,316    184,004 
Cash flows from investing activities:          
Purchase of property and equipment, net of insurance recoveries   (29,224)   (58,289)
Proceeds from sale of property and equipment   149,877    1,565 
Notes receivable from unconsolidated subsidiary   0    (33,000)
Acquisition of business, net of cash acquired   (1,500)   (32,971)
Net cash provided by (used in) investing activities   119,153    (122,695)
Cash flows from financing activities:          
Net (payments) proceeds from long-term debt   (75,049)   60,000 
(Taxes withheld) from issuance of share-based compensation awards   (1,999)   (1,994)
Purchases and retirement of common stock   0    (20,000)
Dividends on common stock   (31,578)   (63,359)
Net cash used in financing activities   (108,626)   (25,353)
           
Net increase in cash and cash equivalents   131,843    35,956 
Cash and cash equivalents, beginning of period   436,996    36,884 
Cash and cash equivalents, end of period  $568,839   $72,840 

 

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Cracker Barrel Reports Second Quarter Fiscal 2021 Results

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February 23, 2021

 

CRACKER BARREL OLD COUNTRY STORE, INC.

Supplemental Information

(Unaudited)

 

   Second Quarter Ended 
   1/29/21   1/31/20 
Net Change in Company-Owned Units During Quarter:          
     Cracker Barrel   0    1 
     Maple Street Biscuit Company   1    0 
Company-Owned Units in Operation at End of Quarter:          
     Cracker Barrel   663    661 
     Maple Street Biscuit Company   36    28 

 

   Second Quarter Ended   Six Months Ended 
   1/29/21   1/31/20   1/29/21   1/31/20 
Total revenue*: (In thousands)                    
Restaurant  $512,264   $655,818   $1,019,505   $1,260,386 
Retail   155,916    183,094    287,146    325,047 
Total revenue  $668,180   $838,912   $1,306,651   $1,585,433 
                     
Cost of goods sold* (exclusive of depreciation and rent): (In thousands)                    
Restaurant  $138,497   $170,609   $269,311   $319,470 
Retail   84,615    99,520    151,046    169,872 
Total cost of goods sold  $223,112   $270,129   $420,357   $489,342 
                     
Average unit volume*: (In thousands)                    
Restaurant  $772.6   $992.6   $1,537.6   $1,908.7 
Retail   235.2    277.1    433.1    492.2 
Total  $1,007.8   $1,269.7   $1,970.7   $2,400.9 
                     
Operating weeks*:   8,619    8,589    17,239    17,169 

 

Note*: This information is for Cracker Barrel stores only and excludes Maple Street Biscuit Company and Holler & Dash

 

   Q2 2021 vs. Q2 2020   6 mo. 2021 vs. 6 mo. 2020 
Comparable Cracker Barrel store sales period to period decrease:          
Restaurant   (21.9)%   (19.3)%
Retail   (15.3)%   (12.1)%
           
Number of Cracker Barrel locations in comparable store base   657    655 

 

- MORE -

 

 

 

Cracker Barrel Reports Second Quarter Fiscal 2021 Results

Page 9

February 23, 2021

 

CRACKER BARREL OLD COUNTRY STORE, INC.

Reconciliation of GAAP-basis operating results to non-GAAP operating results

(Unaudited)

 

Adjusted Operating Income and Earnings Per Share

In the accompanying press release, the Company makes reference to its second quarter fiscal 2021 adjusted operating income and earnings per share. This reconciliation excludes the gain on sale of assets from the sale-leaseback transaction that closed in the first quarter, non-cash amortization of the asset recognized from the gains on sale-leaseback transactions, expenses related to the proxy contest initiated by affiliates of Sardar Biglari in connection with the Company's 2020 annual meeting of shareholders, and the related tax impacts of these items. The Company believes excluding these items from its financial results provides investors with an enhanced understanding of the Company's financial results. This information is not intended to be considered in isolation or as a substitute for operating income or earnings per share information prepared in accordance with GAAP.

 

   Second Quarter Ended January 29, 2021   Six Months Ended January 29, 2021 
   As Reported   Adjustment   As Adjusted   As Reported   Adjustments   As Adjusted 
        (1) (2)             (1) (3) (4) (5)      
Total Revenue  $677,169    -   $677,169   $1,323,623    -   $1,323,623 
Store operating expense   628,817    (3,184)   625,633    1,216,323    (6,368)   1,209,955 
General and administrative expense   33,957    -    33,957    73,521    (5,154)   68,367 
Gain on sale-leaseback   0    -    -    (217,722)   217,722    - 
Operating income   14,395    3,184    17,579    251,501    (206,200)   45,301 
Interest expense   10,815    -    10,815    21,530    -    21,530 
Income before income taxes   3,580    3,184    6,764    229,971    (206,200)   23,771 
(Income tax benefit) Provision for income taxes   (10,420)   530    (9,890)   45,291    (54,508)   (9,217)
Net income  $14,000   $2,654   $16,654   $184,680   $(151,692)  $32,988 
Earnings per share – basic  $0.59   $0.11   $0.70   $7.79   ($6.40)  $1.39 
Earnings per share – diluted  $0.59   $0.11   $0.70   $7.77   ($6.38)  $1.39 

 

(1) Adjusted for the non-cash amortization of asset recognized from the gain on sale-leaseback transactions.

(2) Adjusted for the tax impacts of (1) above

(3) Adjusted for proxy contest-related expenses

(4) Adjusted for the gain on sale of assets related to the sale-leaseback transaction.

(5) Adjusted for the tax impacts of (1), (3), and (4) above

 

EBITDA and Adjusted EBITDA

In the accompanying press release, the Company makes reference to its second quarter fiscal 2021 EBITDA and adjusted EBITDA. The Company defines EBITDA as net income excluding depreciation and amortization, non-cash amortization of the asset recognized from the gains on sale-leaseback transactions, interest expense and tax expense. Adjusted EBITDA, as used in this release, further excludes the gain on sale of assets from the first quarter sale-leaseback transaction and expenses related to the proxy contest initiated by affiliates of Sardar Biglari in connection with the Company's 2020 annual meeting of shareholders. The Company believes excluding these items from its financial results provides investors with an enhanced understanding of the Company's financial results and clearer comparability to prior period results. This information is not intended to be considered in isolation or as a substitute for net income prepared in accordance with GAAP.

 

   Second Quarter Ended
January 29, 2021
   Six Months Ended
January 29, 2021
 
Net Income  $14,000   $184,680  
(+) Depreciation & amortization   27,419    53,770  
(+) Amortization of asset recognized from the gains on sale-leaseback transactions   3,184    6,368  
(+) Interest expense   10,815    21,530  
(+) Tax expense   (10,420)   45,291  
EBITDA   44,998    311,639  
Adjustments           
(-) Gain on sale-leaseback   -    (217,722 )
(+) Proxy contest-related expenses   -    5,154  
Adjusted EBITDA  $44,998   $99,071  

 

- END -

 

 

 

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M2H=7\*ZQ<:?JC6T$;S_VZFI01-*%\Y$5.,]%)P>M>@T46H\O:!DC XML 8 tm217517d1_8k_htm.xml IDEA: XBRL DOCUMENT 0001067294 2021-02-23 2021-02-23 iso4217:USD shares iso4217:USD shares 0001067294 false 8-K 2021-02-23 CRACKER BARREL OLD COUNTRY STORE, INC. TN 001-25225 62-0812904 305 Hartmann Drive Lebanon TN 37087 615 444-5533 false false false false Common Stock (Par Value $0.01) Rights to Purchase Series A Junior Participating Preferred Stock (Par Value $0.01) CBRL NASDAQ false XML 9 R1.htm IDEA: XBRL DOCUMENT v3.20.4
Cover
Feb. 23, 2021
Cover [Abstract]  
Document Type 8-K
Amendment Flag false
Document Period End Date Feb. 23, 2021
Entity File Number 001-25225
Entity Registrant Name CRACKER BARREL OLD COUNTRY STORE, INC.
Entity Central Index Key 0001067294
Entity Tax Identification Number 62-0812904
Entity Incorporation, State or Country Code TN
Entity Address, Address Line One 305 Hartmann Drive
Entity Address, City or Town Lebanon
Entity Address, State or Province TN
Entity Address, Postal Zip Code 37087
City Area Code 615
Local Phone Number 444-5533
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock (Par Value $0.01) Rights to Purchase Series A Junior Participating Preferred Stock (Par Value $0.01)
Trading Symbol CBRL
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
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