0001104659-21-117657.txt : 20210921 0001104659-21-117657.hdr.sgml : 20210921 20210921081215 ACCESSION NUMBER: 0001104659-21-117657 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 15 CONFORMED PERIOD OF REPORT: 20210921 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20210921 DATE AS OF CHANGE: 20210921 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: 211264855 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 tm2128040d1_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): September 21, 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 September 21, 2021, Cracker Barrel Old Country Store, Inc. (the “Company”) issued a press release (the “Press Release”) announcing the Company’s fiscal 2021 full year and fourth quarter results of operations and projected outlook of certain items for fiscal year 2022. 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 September 21, 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:  September 21, 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 tm2128040d1_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

 

 

 

 

Investor Contact: Jessica Hazel  
  (615) 235-4367  

 

Media Contact: Heidi Pearce  
  (615) 235-4135  

 

CRACKER BARREL REPORTS FOURTH QUARTER AND FULL YEAR FISCAL 2021 RESULTS AND DECLARES QUARTERLY DIVIDEND

 

Board increases quarterly dividend to pre-pandemic level of $1.30 per share

 

LEBANON, Tenn. September 21, 2021 – Cracker Barrel Old Country Store, Inc. (“Cracker Barrel” or the “Company”) (Nasdaq: CBRL) today reported its financial results for the fourth quarter of fiscal 2021 ended July 30, 2021.

 

Fourth Quarter Fiscal 2021 Highlights

 

·Total revenue in the fourth quarter of $784.4 million was approximately flat compared to the fourth quarter of fiscal 2019 total revenue of $787.1 million.

·Compared to the fourth quarter of fiscal 20191, comparable store restaurant sales decreased 6.8% and comparable store retail sales increased 18.2%.

oComparable store off-premise restaurant sales grew 108.6% compared to the fourth quarter of 20191 and represented approximately 19% of restaurant sales.

·GAAP operating income in the fourth quarter was $62.7 million, or 8.0% of total revenue, and adjusted2 operating income was $65.9 million, or 8.4% of total revenue.

·GAAP net income was $36.4 million, or 4.6% of total revenue. EBITDA was $93.5 million, or 11.9% of total revenue, which represented a 30 basis point sequential improvement compared to fiscal 2021 third quarter EBITDA margin.

·GAAP earnings per diluted share were $1.53, and adjusted2 earnings per diluted share were $2.25.

·The Company announced that its Board of Directors declared a regular quarterly dividend of $1.30 per share and authorized share repurchases up to $100 million of the Company’s outstanding common stock.

 

Commenting on the fourth quarter results, Cracker Barrel President and Chief Executive Officer Sandra B. Cochran said, “Despite the well-known headwinds that the industry continues to face with respect to staffing, commodity and wage inflation, and the resurgence of the pandemic, we were pleased that our fourth quarter profitability continued to trend positively from the third quarter and that our off-premise sales, retail business, and Maple Street Biscuit Company concept continued to outperform. In addition to these strengths, our impressive field and home office support teams delivered on multiple fronts throughout the year, including cost-savings, the introduction of our new dinner menu and the continued roll-out of beer and wine to our stores, and helped ensure our continued recovery in 2021. I’m confident that these and other initiatives position us well for 2022 despite the uncertain environment.”

 

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Cracker Barrel Reports Fourth Quarter Fiscal 2021 Results

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September 21, 2021

 

Fourth Quarter Fiscal 2021 Results

 

Revenue

 

The Company reported total revenue of $784.4 million for the fourth quarter of fiscal 2021, representing an increase of 58.4% compared to the fourth quarter of fiscal 2020, and a decrease of 0.3% compared to the fourth quarter of 2019.

 

Cracker Barrel comparable store restaurant and retail sales compared to the fourth quarter of fiscal 20191 and versus the fourth quarter of fiscal 2020 were as follows:

 

   Versus FY19 Comparable Period1  

Versus FY20

Comparable Period

 
   Fourth Quarter Ended
7/30/21
   Fourth Quarter Ended
7/30/21
 
Comparable restaurant sales   -6.8%   53.5%
Comparable retail sales   18.2%   74.8%

 

Operating Income

 

GAAP operating income in the fourth quarter was $62.7 million, or 8.0% of total revenue. Excluding the approximately $3.2 million in non-cash amortization related to the gains on the previously disclosed sale and leaseback transactions adjusted2 operating income for the fourth quarter was $65.9 million, or 8.4% of total revenue.

 

Net Income, EBITDA and Earnings per Diluted Share

 

GAAP net income in the fourth quarter was $36.4 million, or 4.6% of total revenue, and EBITDA was $93.5 million, or 11.9% of total revenue. GAAP earnings per diluted share were $1.53, and adjusted2 earnings per diluted share were $2.25.

 

Convertible Debt Offering

 

As previously disclosed, during the fourth quarter the Company completed the private offering of $300 million of 0.625% convertible senior notes due 2026, which generated net proceeds of approximately $291 million.

 

The Company used approximately $30 million net, of the proceeds to fund the cost of entering into certain convertible note hedging transactions to minimize the risk of potential future dilution from the offering. The remainder of the proceeds were used to pay down debt under the Company’s revolving credit facility. The Company ended the fourth quarter with approximately $327 million in total debt.

 

The Company also paid approximately $18 million to terminate the interest rate swaps that it had been using to hedge interest rate risk on the debt outstanding under the Company’s revolving credit facility. We anticipate this action will result in savings on interest expense over the next two years.

 

In connection with the offering, the Company also repurchased $35 million of its common stock.

 

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Cracker Barrel Reports Fourth Quarter Fiscal 2021 Results

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September 21, 2021

 

Quarterly Dividend and Share Repurchase Authorization

 

The Company’s Board of Directors declared a quarterly dividend to common shareholders of $1.30 per share, payable on November 9, 2021 to shareholders of record on October 22, 2021. This dividend represents a return to the Company’s pre-pandemic quarterly dividend level. Additionally, the Board of Directors authorized share repurchases up to $100 million of the Company’s outstanding common stock.

 

Fiscal 2021 Results

 

Revenue

 

The Company reported total revenue of $2.81 billion for fiscal 2021, representing an increase of 11.8% compared to fiscal 2020 and a decrease of 8.2% compared to fiscal 2019. Comparable store restaurant sales for fiscal 2021 increased 8.4% compared to fiscal 2020, including a 5.3% increase in store traffic and a 3.1% increase in average check. Comparable store retail sales for fiscal 2021 increased 20.9% compared to fiscal 2020.

 

Operating Income

 

GAAP operating income in fiscal 2021 was $366.7 million, or 13.0% of total revenue, compared to $103.6 million, or 4.1% of total revenue, in fiscal 2020. Adjusted2 operating income for fiscal 2021 was $166.8 million.

 

Net Income, EBITDA and Earnings per Diluted Share

 

GAAP net income was $254.5 million, or 9.0% of total revenue, and EBITDA was $488.0 million, or 17.3% of total revenue, in fiscal 2021. Adjusted2 EBITDA was $275.4 million, or 9.8% of total revenue. GAAP earnings per diluted share were $10.71, and adjusted2 earnings per diluted share were $5.14.

 

Fiscal 2022 Outlook

 

As a result of the ongoing business impact and significant uncertainty created by the COVID-19 pandemic, including the nationwide increase in infections and responsive public health restrictions brought about by the rise of the “Delta variant” of the virus, the Company is not providing its customary annual earnings guidance for fiscal 2022 at this time.

 

For the full fiscal year 2022, the Company expects:

 

§Commodity and wage inflation in the mid-to-high single digits;

§Capital expenditures of approximately $120 million;

§An effective tax rate of approximately 18%; and

§The opening of three new Cracker Barrel locations and 15 new Maple Street Biscuit Company locations.

 

The Company reminds investors that its outlook for fiscal 2022 reflects a number of assumptions, many of which are outside the Company’s control.

 

1 For the purpose of comparing to fiscal 2019, comparable stores are defined as restaurants open a full 30 months before the beginning of the applicable period.

 

2 For Non-GAAP reconciliations, please refer to the Reconciliation of GAAP-basis operating results to non-GAAP operating results section of this release.

 

Fiscal 2021 Fourth 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 October 5, 2021.

 

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Cracker Barrel Reports Fourth Quarter Fiscal 2021 Results

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September 21, 2021

 

About Cracker Barrel Old Country Store®

 

Cracker Barrel Old Country Store, Inc. (Nasdaq: CBRL) provides a caring and friendly home-away-from-home experience while offering guests high-quality homestyle food to enjoy in-store or to-go and unique shopping — all at a fair price. 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.

 

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 Q4 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 level of indebtedness, or constraints on our expenditures, ability to service our debt obligations or make cash distributions to our shareholders or cash management generally, 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, including under our credit facility and our convertible senior notes, 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 dilution of our existing stockholders’ ownership interest that may ensue from any conversions of our convertible senior notes or the related warrants issued in connection with our convertible note hedging transactions; 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 Fourth Quarter Fiscal 2021 Results

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September 21, 2021

 

CRACKER BARREL OLD COUNTRY STORE, INC.

CONDENSED CONSOLIDATED INCOME STATEMENT

(Unaudited)

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

 

   Fourth Quarter Ended   Twelve Months Ended 
   7/30/21   7/31/20   Percentage
Change
   7/30/21   7/31/20   Percentage
Change
 
Total revenue  $784,405   $495,065    58%  $2,821,444   $2,522,792    12%
Cost of goods sold, exclusive of depreciation and rent   235,754    150,778    56    865,261    779,937    11 
Labor and other related expenses   268,702    187,785    43    983,120    924,994    6 
Other store operating expenses   180,333    141,267    28    676,301    614,733    10 
General and administrative expenses   36,948    40,950    (10)   147,825    146,975    1 
Gain on sale and leaseback transactions   0    (69,954)   (100)   (217,722)   (69,954)   211 
Impairment   0    4,160    (100)   0    22,496    (100)
Operating income   62,668    40,079    56    366,659    103,611    254 
Interest expense   24,964    9,944    151    56,108    22,327    151 
Income before income taxes   37,704    30,135    25    310,551    81,284    282 
Provision for income taxes (income tax benefit)   1,341    5,069    (74)   56,038    (28,683)   295 
Loss from unconsolidated subsidiary   0    0         0    (142,442)     
Net income (loss)  $36,363   $25,066    45   $254,513   ($32,475)   884 
                               
Earnings (loss) per share – basic:  $1.54   $1.06    45   $10.74   ($1.36)   890 
Earnings (loss) per share – diluted:  $1.53   $1.05    46   $10.71   ($1.36)   888 
                               
Weighted average shares:                              
Basic   23,611,922    23,694,385    (0)   23,692,063    23,865,367    (1)
Diluted   23,705,547    23,760,922    (0)   23,767,390    23,865,367    (0)
                               
Ratio Analysis                              
Total revenue:                              
Restaurant   79.2%   81.1%        78.9%   80.5%     
Retail   20.8    18.9         21.1    19.5      
Total revenue   100.0    100.0         100.0    100.0      
Cost of goods sold, exclusive of depreciation and rent   30.1    30.5         30.7    30.9      
Labor and other related expenses   34.2    37.9         34.8    36.7      
Other store operating expenses   23.0    28.5         24.0    24.4      
General and administrative expenses   4.7    8.3         5.2    5.8      
Gain on sale and leaseback transactions   0.0    (14.1)        (7.7)   (2.8)     
Impairment   0.0    0.8         0.0    0.9      
Operating income   8.0    8.1         13.0    4.1      
Interest expense   3.2    2.0         2.0    0.9      
Income before income taxes   4.8    6.1         11.0    3.2      
Provision for income taxes (income tax benefit)   0.2    1.0         2.0    (1.1)     
Loss from unconsolidated subsidiary   0.0    0.0         0.0    (5.6)     
Net income (loss)   4.6%   5.1%        9.0%   (1.3%)     

 

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September 21, 2021

 

CRACKER BARREL OLD COUNTRY STORE, INC. 

CONDENSED CONSOLIDATED BALANCE SHEET 

(Unaudited and in thousands, except share amounts)

 

   7/30/21   7/31/20 
Assets          
Cash and cash equivalents  $144,593   $436,996 
Accounts receivable   27,372    20,157 
Inventories   138,320    139,091 
Prepaid expenses and other current assets   43,311    46,768 
Property and equipment, net   979,850    1,130,061 
Operating lease right-of-use assets, net   974,477    691,949 
Intangible assets   21,285    20,960 
Other assets   57,796    53,586 
Goodwill   4,690    4,690 
Total assets  $2,391,694   $2,544,258 
           
Liabilities and Shareholders’ Equity          
Accounts payable  $135,176   $103,504 
Other current liabilities   330,086    347,552 
Long-term debt   327,253    910,000 
Long-term operating lease liabilities   748,305    632,630 
Other long-term obligations   88,615    104,465 
Deferred income taxes   98,626    27,718 
Shareholders’ equity, net   663,633    418,389 
Total liabilities and shareholders’ equity  $2,391,694   $2,544,258 
           
Common shares issued and outstanding   23,497,166    23,697,396 

 

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Cracker Barrel Reports Fourth Quarter Fiscal 2021 Results

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September 21, 2021

  

CRACKER BARREL OLD COUNTRY STORE, INC.
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
(Unaudited and in thousands)

 

   Twelve Months Ended 
    7/30/21    7/31/20 
Cash flows from operating activities:          
Net income (loss)  $254,513   $(32,475)
Loss from unconsolidated subsidiary   0    142,442 
Depreciation and amortization   108,604    118,178 
Amortization of debt discount and issuance costs   864    0 
Loss on disposition of property and equipment   4,064    6,469 
Gain on sale and leaseback transactions   (217,722)   (69,954)
Impairment   0    23,160 
Share-based compensation, net of excess tax benefit   8,729    6,386 
Noncash lease expense   55,817    63,442 
Amortization of asset recognized from gain on sale and leaseback transaction   12,735    0 
Decrease in inventories   771    16,094 
(Decrease) increase in accounts payable   31,672    (30,593)
Net changes in other assets and liabilities   41,856    (82,147)
Net cash provided by operating activities   301,903    161,002 
Cash flows from investing activities:          
Purchase of property and equipment, net of insurance recoveries   (70,130)   (296,008)
Proceeds from sale of property and equipment   149,960    207,253 
Notes receivable from unconsolidated subsidiary   0    (35,500)
Acquisition of business, net of cash acquired   (1,500)   (32,971)
Net cash (used in) provided by investing activities   78,330    (157,226)
Cash flows from financing activities:          
Net (payments) proceeds from long-term debt   (572,967)   549,395 
Proceeds from issuance of warrants   31,710    0 
Purchases of convertible note hedge   (62,010)   0 
(Taxes withheld) from issuance of share-based compensation awards   (2,282)   (2,160)
Purchases and retirement of common stock   (35,000)   (55,007)
Deferred financing costs   (420)   (1,348)
Dividends on common stock   (31,667)   (94,544)
Net cash provided by (used in) financing activities   (672,636)   396,336 
           
Net increase (decrease) in cash and cash equivalents   (292,403)   400,112 
Cash and cash equivalents, beginning of period   436,996    36,884 
Cash and cash equivalents, end of period  $144,593   $436,996 

 

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Cracker Barrel Reports Fourth Quarter Fiscal 2021 Results

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September 21, 2021

 

CRACKER BARREL OLD COUNTRY STORE, INC.
Supplemental Information
(Unaudited)

 

   Fourth Quarter Ended 
    7/30/21    7/31/20 
Net Change in Company-Owned Units During Quarter:          
Cracker Barrel   0    (1)
Maple Street Biscuit Company   0    7 
           
Company-Owned Units in Operation at End of Quarter:          
Cracker Barrel   664    663 
Maple Street Biscuit Company   37    35 

 

   Fourth Quarter Ended   Twelve Months Ended 
    7/30/21    7/31/20    7/30/21    7/31/20 
Total revenue*: (In thousands)                    
Restaurant  $609,865   $394,985   $2,188,761   $2,010,892 
Retail   162,894    93,536    594,007    490,749 
Total revenue  $772,759   $488,521   $2,782,768   $2,501,641 
                     
Cost of goods sold* (exclusive of depreciation and rent): (In thousands)                    
Restaurant  $153,706   $97,981   $559,297   $510,448 
Retail   79,404    51,479    297,312    264,255 
Total cost of goods sold  $233,110   $149,460   $856,609   $774,703 
                     
Average unit volume*: (In thousands)                    
Restaurant  $918.5   $595.1   $3,298.7   $3,037.5 
Retail   245.3    141.0    895.3    741.3 
Total  $1,163.8   $736.1   $4,194.0   $3,778.8 
                     
Operating Weeks*   8,632    8,628    34,503    34,452 

 

 

 

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

 

   Q4 2021 vs. Q4 2020   12 mo. 2021 vs. 12 mo. 2020 
Comparable Cracker Barrel store sales period to period increase:          
Restaurant   53.5%   8.4%
Retail   74.8%   20.9%
Number of Cracker Barrel locations in comparable store base:   658    655 

 

-MORE-

Cracker Barrel Reports Fourth Quarter Fiscal 2021 Results

Page 9

September 21, 2021

 

CRACKER BARREL OLD COUNTRY STORE, INC.

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

(Unaudited and in thousands, except per share amounts)

 

Adjusted Operating Income and Earnings Per Share

 

In the accompanying press release, the Company makes reference to its fourth quarter fiscal 2020 and fiscal 2021 adjusted operating income and earnings per share. In regards to fiscal 2021, this reconciliation excludes the gain on sale of assets from the sale and leaseback transaction that closed in the first quarter, non-cash amortization of the asset recognized from the gains on the sale and leaseback transactions, interest expense related to the termination of interest rate swaps and the convertible senior notes offering carried out in the fourth quarter, 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. In regards to fiscal 2020, this reconciliation excludes non-cash asset impairment charges related to store assets, expenses related to COVID-19, an impairment charge related to its equity investment in Punch Bowl Social 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 and enhances comparability across periods. 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.

 

   Fourth Quarter Ended July 30, 2021  Twelve Months Ended July 30, 2021 
   As Reported  Adjustment  As Adjusted  As Reported  Adjustments  As Adjusted 
      (1) (2) (3)        (1) (2) (4) (5) (6)    
Total Revenue  $784,405   -  $784,405  $2,821,444   -  $2,821,444 
Store operating expense   684,789   (3,184)  681,605   2,524,682   (12,735)  2,511,947 
General and administrative expense   36,948   -   36,948   147,825   (5,154)  142,671 
Gain on sale and leaseback transactions   -   -   -   (217,722)  217,722   - 
Operating income   62,668   3,184   65,852   366,659   (199,833)  166,826 
Interest expense   24,964   (18,852)  6,112   56,108   (18,852)  37,256 
Income before income taxes   37,704   22,036   59,740   310,551   (180,981)  129,570 
Provision for income taxes   1,341   5,178   6,519   56,038   (48,582)  7,456 
Net income  $36,363  $16,858  $53,221  $254,513  $(132,399) $122,114 
Earnings per share – basic  $1.54  $0.71  $2.25  $10.74  $(5.59) $5.15 
Earnings per share – diluted  $1.53  $0.72  $2.25  $10.71  $(5.57) $5.14 

 

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

(2) Adjusted for interest expense related to the termination of swaps and the convertible senior notes offering

(3) Adjusted for the tax impacts of (1) and (2) above
(4) Adjusted for proxy contest-related expenses
(5) Adjusted for the gain on sale of assets related to the sale and leaseback transaction
(6) Adjusted for the tax impacts of (1), (2), (4), and (5) above

 

   Fourth Quarter Ended July 31, 2020  Twelve Months Ended July 31, 2020 
   As Reported  Adjustment  As Adjusted  As Reported  Adjustments  As Adjusted 
      (1) (2)        (1) (2)    
Total Revenue  $495,065   -  $495,065  $2,522,792   -  $2,522,792 
Store operating expense   479,830   -   479,830   2,319,664   (3,947)  2,315,717 
Impairment   4,160   (4,160)  -   22,496   (22,496)  - 
General and administrative expense   40,950   (5,711)  35,239   146,975   (8,833)  138,142 
Gain on sale and leaseback transactions   (69,954)  69,954   -   (69,954)  69,954   - 
Operating income (loss)   40,079   (60,083)  (20,004)  103,611   (34,678)  68,933 
Interest expense   9,944   -   9,944   22,327   -   22,327 
Income (loss) before income taxes   30,135   (60,083)  (29,948)  81,284   (34,678)  46,606 

(Income tax benefit) Provision for income

taxes

   5,069   (14,891)  (9,822)  (28,683)  26,678   (2,005)
Loss from unconsolidated subsidiary   -   -   -   (142,442)  142,442   - 
Net income (loss)  $25,066  $(45,192) $(20,126) $(32,475) $81,086  $48,611 
Earnings (loss) per share – basic  $1.06  $(1.91) $(0.85) $(1.36) $3.40  $2.04 
Earnings (loss) per share – diluted  $1.05  $(1.90) $(0.85) $(1.36) $3.40  $2.04 

 

(1) Adjusted for non-cash impairment charges related to store assets, expenses related to COVID-19, the gain on sale of assets related to the sale and leaseback transaction that occurred during the fourth quarter, and impairment charge related to the Company’s equity investment in its unconsolidated subsidiary, Punch Bowl Social. This adjustment does not excluded from the Company’s results the approximately $17 million payment the Company made to its hourly store employees during the third quarter of 2020 to provide short-term financial assistance as their hours were being reduced as a result of dining room closures in response to the COVID-19 pandemic

 

(2) These adjustments include the tax impacts on the actual tax benefits recorded in the Condensed Consolidated Income Statement, including the deferral of recognition for the tax benefits of capital loss on impairment of the unconsolidated subsidiary

 

-MORE-

Cracker Barrel Reports Fourth Quarter Fiscal 2021 Results

Page 10

September 21, 2021

 

CRACKER BARREL OLD COUNTRY STORE, INC.

Reconciliation of GAAP-basis operating results to non-GAAP operating results (Unaudited and in thousands)

 

EBITDA

 

In the accompanying press release, the Company makes reference to its fourth quarter fiscal 2021 EBITDA. The Company defines EBITDA as net income excluding depreciation and amortization, non-cash amortization of the asset recognized from the gains on sale and leaseback transactions, interest expense and tax expense. This information is not intended to be considered in isolation or as a substitute for net income prepared in accordance with GAAP.

 

   Third Quarter
Ended April 30,
2021
   Fourth Quarter
Ended July 30,
2021
   Twelve Months
Ended July
 20,2021
 
Net Income  $33,470   $36,363   $254,513 
 (+) Depreciation & Amortization   27,162    27,672    108,604 
 (+) Amortization of asset recognized from gain on sale and leaseback transactions   3,183    3,184    12,735 
 (+) Interest Expense   9,614    24,964    56,108 
 (+) Tax Expense   9,406    1,341    56,038 
EBITDA  $82,835   $93,524   $487,998 
Adjustments               
 (-) Gain on sale and leaseback transaction   -    -    (217,722)
 (+) Proxy contest-related expenses   -    -    5,154 
Adjusted EBITDA  $82,835   $93,524   $275,430 

 

- END -

 

 

 

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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 v3.21.2
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Sep. 21, 2021
Cover [Abstract]  
Document Type 8-K
Amendment Flag false
Document Period End Date Sep. 21, 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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