x
|
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
o
|
Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
Tennessee
(State or other jurisdiction of incorporation or organization)
|
62-0812904
(I.R.S. Employer Identification Number)
|
|
305 Hartmann Drive, P.O. Box 787
Lebanon, Tennessee
(Address of principal executive offices)
|
37088-0787
(Zip code)
|
Large accelerated filer þ
|
Accelerated filer o
|
||
Non-accelerated filer o
|
Smaller reporting company o
|
PART I. FINANCIAL INFORMATION
|
Page
|
||
Item 1
|
|||
· Condensed Consolidated Financial Statements (Unaudited)
|
|||
3
|
|||
4
|
|||
5
|
|||
|
|||
6
|
|||
7
|
|||
Item 2
|
|||
15
|
|||
Item 3
|
|||
28
|
|||
Item 4
|
|||
28
|
|||
PART II. OTHER INFORMATION
|
|||
Item 1
|
|||
29
|
|||
Item 1A
|
|||
29
|
|||
Item 2
|
|||
29
|
|||
Item 6
|
|||
· Exhibits
|
29
|
||
30
|
ASSETS
|
May 3,
2013
|
August 3,
2012*
|
||||||
Current Assets:
|
||||||||
Cash and cash equivalents
|
$ | 58,457 | $ | 151,962 | ||||
Property held for sale
|
884 | 884 | ||||||
Accounts receivable
|
14,406 | 14,609 | ||||||
Income taxes receivable
|
1,435 | -- | ||||||
Inventories
|
134,131 | 143,267 | ||||||
Prepaid expenses and other current assets
|
16,016 | 11,405 | ||||||
Deferred income taxes
|
7,407 | 15,181 | ||||||
Total current assets
|
232,736 | 337,308 | ||||||
Property and equipment
|
1,775,076 | 1,741,571 | ||||||
Less: Accumulated depreciation and amortization of capital leases
|
758,265 | 719,201 | ||||||
Property and equipment – net
|
1,016,811 | 1,022,370 | ||||||
Other assets
|
60,126 | 59,314 | ||||||
Total assets
|
$ | 1,309,673 | $ | 1,418,992 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||||||
Current Liabilities:
|
||||||||
Accounts payable
|
$ | 72,732 | $ | 101,271 | ||||
Income taxes payable
|
-- | 5,825 | ||||||
Deferred revenues
|
47,374 | 37,696 | ||||||
Current interest rate swap liability
|
-- | 20,215 | ||||||
Other current liabilities
|
135,753 | 154,052 | ||||||
Total current liabilities
|
255,859 | 319,059 | ||||||
Long-term debt
|
400,000 | 525,036 | ||||||
Long-term interest rate swap liability
|
16,888 | 14,166 | ||||||
Other long-term obligations
|
119,855 | 114,897 | ||||||
Deferred income taxes
|
61,739 | 63,159 | ||||||
Commitments and Contingencies (Note 11)
|
||||||||
Shareholders’ Equity:
|
||||||||
Preferred stock – 100,000,000 shares of $.01 par value authorized; 300,000 shares designated as Series A Junior Participating Preferred Stock; no shares issued
|
-- | -- | ||||||
Common stock – 400,000,000 shares of $.01 par value authorized; 23,757,956 shares issued and outstanding at May 3, 2013, and 23,473,024 shares issued and outstanding at August 3, 2012
|
237 | 234 | ||||||
Additional paid-in capital
|
43,255 | 28,676 | ||||||
Accumulated other comprehensive loss
|
(10,376 | ) | (21,158 | ) | ||||
Retained earnings
|
422,216 | 374,923 | ||||||
Total shareholders’ equity
|
455,332 | 382,675 | ||||||
Total liabilities and shareholders’ equity
|
$ | 1,309,673 | $ | 1,418,992 |
Quarter Ended
|
Nine Months Ended
|
|||||||||||||||
May 3,
|
April 27,
|
May 3,
|
April 27,
|
|||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
Total revenue
|
$ | 640,407 | $ | 608,514 | $ | 1,970,529 | $ | 1,880,185 | ||||||||
Cost of goods sold
|
201,982 | 189,615 | 644,027 | 611,313 | ||||||||||||
Gross profit
|
438,425 | 418,899 | 1,326,502 | 1,268,872 | ||||||||||||
Labor and other related expenses
|
241,864 | 235,275 | 719,474 | 691,176 | ||||||||||||
Other store operating expenses
|
116,408 | 109,947 | 354,859 | 338,127 | ||||||||||||
Store operating income
|
80,153 | 73,677 | 252,169 | 239,569 | ||||||||||||
General and administrative expenses
|
35,981 | 34,569 | 105,492 | 108,500 | ||||||||||||
Operating income
|
44,172 | 39,108 | 146,677 | 131,069 | ||||||||||||
Interest expense
|
10,194 | 11,173 | 31,199 | 33,333 | ||||||||||||
Income before income taxes
|
33,978 | 27,935 | 115,478 | 97,736 | ||||||||||||
Provision for income taxes
|
9,376 | 8,961 | 32,516 | 29,351 | ||||||||||||
Net income
|
$ | 24,602 | $ | 18,974 | $ | 82,962 | $ | 68,385 | ||||||||
Net income per share:
|
||||||||||||||||
Basic
|
$ | 1.04 | $ | 0.82 | $ | 3.50 | $ | 2.97 | ||||||||
Diluted
|
$ | 1.02 | $ | 0.81 | $ | 3.47 | $ | 2.93 | ||||||||
Weighted average shares:
|
||||||||||||||||
Basic
|
23,760,589 | 23,132,730 | 23,683,133 | 22,990,544 | ||||||||||||
Diluted
|
24,006,821 | 23,535,765 | 23,913,226 | 23,329,230 | ||||||||||||
Dividends declared per share
|
$ | 0.50 | $ | 0.65 | $ | 1.50 | $ | 1.15 |
Quarter Ended
|
Nine Months Ended
|
|||||||||||||||
May 3,
|
April 27,
|
May 3,
|
April 27,
|
|||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
Net income
|
$ | 24,602 | $ | 18,974 | $ | 82,962 | $ | 68,385 | ||||||||
Other comprehensive income before income tax expense:
|
||||||||||||||||
Change in fair value of interest rate swaps
|
4,982 | 6,348 | 17,493 | 12,902 | ||||||||||||
Income tax expense
|
1,921 | 1,808 | 6,711 | 2,000 | ||||||||||||
Other comprehensive income, net of tax
|
3,061 | 4,540 | 10,782 | 10,902 | ||||||||||||
Comprehensive income
|
$ | 27,663 | $ | 23,514 | $ | 93,744 | $ | 79,287 |
Nine Months Ended
|
||||||||
May 3,
|
April 27,
|
|||||||
2013
|
2012
|
|||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$ | 82,962 | $ | 68,385 | ||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
49,000 | 47,742 | ||||||
Loss on disposition of property and equipment
|
2,324 | 1,832 | ||||||
Share-based compensation
|
10,996 | 9,430 | ||||||
Excess tax benefit from share-based compensation
|
(1,961 | ) | (1,921 | ) | ||||
Changes in assets and liabilities:
|
||||||||
Inventories
|
9,136 | 10,543 | ||||||
Other current assets
|
(3,882 | ) | (2,263 | ) | ||||
Accounts payable
|
(28,539 | ) | (12,023 | ) | ||||
Other current liabilities
|
(16,550 | ) | 18,699 | |||||
Other long-term assets and liabilities
|
3,213 | 1,461 | ||||||
Net cash provided by operating activities
|
106,699 | 141,885 | ||||||
Cash flows from investing activities:
|
||||||||
Purchase of property and equipment
|
(46,178 | ) | (57,434 | ) | ||||
Proceeds from sale of property and equipment
|
550 | 491 | ||||||
Proceeds from insurance recoveries of property and equipment
|
440 | 668 | ||||||
Net cash used in investing activities
|
(45,188 | ) | (56,275 | ) | ||||
Cash flows from financing activities:
|
||||||||
Proceeds from issuance of long-term debt
|
-- | 92,600 | ||||||
Principal payments under long-term debt and other long-term obligations
|
(125,087 | ) | (92,704 | ) | ||||
Proceeds from exercise of share-based compensation awards
|
5,195 | 16,729 | ||||||
Excess tax benefit from share-based compensation
|
1,961 | 1,921 | ||||||
Purchases and retirement of common stock
|
(3,570 | ) | (12,279 | ) | ||||
Deferred financing costs
|
-- | (263 | ) | |||||
Dividends on common stock
|
(33,515 | ) | (16,568 | ) | ||||
Net cash used in financing activities
|
(155,016 | ) | (10,564 | ) | ||||
Net (decrease) increase in cash and cash equivalents
|
(93,505 | ) | 75,046 | |||||
Cash and cash equivalents, beginning of period
|
151,962 | 52,274 | ||||||
Cash and cash equivalents, end of period
|
$ | 58,457 | $ | 127,320 | ||||
Supplemental disclosures of cash flow information:
|
||||||||
Cash paid during the period for:
|
||||||||
Interest, net of amounts capitalized
|
$ | 29,670 | $ | 29,593 | ||||
Income taxes
|
$ | 35,659 | $ | 11,764 | ||||
Supplemental schedule of non-cash financing activity:
|
||||||||
Change in fair value of interest rate swaps
|
$ | 17,493 | $ | 12,902 | ||||
Change in deferred tax asset for interest rate swaps
|
$ | (6,711 | ) | $ | (2,000 | ) |
1.
|
Condensed Consolidated Financial Statements
|
2.
|
Fair Value Measurements
|
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
Fair Value as
of May 3, 2013
|
|||||||||||||
Cash equivalents*
|
$ | 29,766 | $ | -- | $ | -- | $ | 29,766 | ||||||||
Deferred compensation plan assets**
|
31,046 | -- | -- | 31,046 | ||||||||||||
Total assets at fair value
|
$ | 60,812 | $ | -- | $ | -- | $ | 60,812 | ||||||||
Interest rate swap liability (see Note 5)
|
$ | -- | $ | 16,888 | $ | -- | $ | 16,888 | ||||||||
Total liabilities at fair value
|
$ | -- | $ | 16,888 | $ | -- | $ | 16,888 |
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
Fair Value as
of August 3,
2012
|
|||||||||||||
Cash equivalents*
|
$ | 104,531 | $ | -- | $ | -- | $ | 104,531 | ||||||||
Deferred compensation plan assets**
|
29,443 | -- | -- | 29,443 | ||||||||||||
Total assets at fair value
|
$ | 133,974 | $ | -- | $ | -- | $ | 133,974 | ||||||||
Interest rate swap liability (see Note 5)
|
$ | -- | $ | 34,381 | $ | -- | $ | 34,381 | ||||||||
Total liabilities at fair value
|
$ | -- | $ | 34,381 | $ | -- | $ | 34,381 |
3.
|
Inventories
|
May 3, 2013
|
August 3, 2012
|
|||||||
Retail
|
$ | 98,110 | $ | 108,846 | ||||
Restaurant
|
21,185 | 19,728 | ||||||
Supplies
|
14,836 | 14,693 | ||||||
Total
|
$ | 134,131 | $ | 143,267 |
4.
|
Debt
|
May 3, 2013
|
August 3, 2012
|
|||||||
Revolving credit facility expiring on July 8, 2016
|
$ | 212,500 | $ | 312,500 | ||||
Term loan payable on or before July 8, 2016
|
187,500 | 212,500 | ||||||
Note payable
|
63 | 142 | ||||||
400,063 | 525,142 | |||||||
Current maturities
|
(63 | ) | (106 | ) | ||||
Long-term debt
|
$ | 400,000 | $ | 525,036 |
5.
|
Derivative Instruments and Hedging Activities
|
Trade Date
|
Effective Date
|
Term
(in Years)
|
Notional Amount
|
Fixed Rate
|
||||||||||
August 10, 2010
|
May 3, 2013
|
2 | $ | 200,000 | 2.73 | % | ||||||||
July 25, 2011
|
May 3, 2013
|
2 | 50,000 | 2.00 | % | |||||||||
July 25, 2011
|
May 3, 2013
|
3 | 50,000 | 2.45 | % | |||||||||
September 19, 2011
|
May 3, 2013
|
2 | 25,000 | 1.05 | % | |||||||||
September 19, 2011
|
May 3, 2013
|
2 | 25,000 | 1.05 | % | |||||||||
December 7, 2011
|
May 3, 2013
|
3 | 50,000 | 1.40 | % | |||||||||
March 18, 2013
|
May 3, 2015
|
3 | 50,000 | 1.51 | % | |||||||||
April 8, 2013
|
May 3, 2015
|
2 | 50,000 | 1.05 | % | |||||||||
April 15, 2013
|
May 3, 2015
|
2 | 50,000 | 1.03 | % | |||||||||
April 22, 2013
|
May 3, 2015
|
3 | 25,000 | 1.30 | % | |||||||||
April 25, 2013
|
May 3, 2015
|
3 | 25,000 | 1.29 | % |
Balance Sheet Location
|
May 3, 2013
|
August 3, 2012
|
|||||||
Interest rate swap
|
Current interest rate swap liability
|
$ | -- | $ | 20,215 | ||||
Interest rate swaps
|
Long-term interest rate swap liability
|
16,888 | 14,166 | ||||||
Total (See Note 2)
|
$ | 16,888 | $ | 34,381 |
Amount of Income Recognized in AOCL on
Derivatives (Effective Portion)
|
||||||||
Nine Months Ended
|
Year Ended
|
|||||||
May 3, 2013
|
August 3, 2012
|
|||||||
Cash flow hedges:
|
||||||||
Interest rate swaps
|
$ | 17,493 | $ | 17,223 |
Location of Loss
Reclassified from
AOCL into Income
(Effective Portion)
|
Amount of Loss Reclassified from AOCL into Income
(Effective Portion)
|
||||||||||||||||
Quarter Ended
|
Nine Months Ended
|
||||||||||||||||
May 3,
2013
|
April 27,
2012
|
May 3,
2013
|
April 27,
2012
|
||||||||||||||
Cash flow hedges:
|
|||||||||||||||||
Interest rate swaps
|
Interest expense
|
$ | 13,743 | $ | 7,222 | $ | 20,773 | $ | 22,134 |
6.
|
Shareholders’ Equity
|
7.
|
Seasonality
|
8.
|
Segment Information
|
Quarter Ended
|
Nine Months Ended
|
|||||||||||||||
May 3,
2013
|
April 27,
2012
|
May 3,
2013
|
April 27,
2012
|
|||||||||||||
Revenue:
|
||||||||||||||||
Restaurant
|
$ | 522,642 | $ | 500,025 | $ | 1,555,111 | $ | 1,485,065 | ||||||||
Retail
|
117,765 | 108,489 | 415,418 | 395,120 | ||||||||||||
Total revenue
|
$ | 640,407 | $ | 608,514 | $ | 1,970,529 | $ | 1,880,185 |
9.
|
Share-Based Compensation
|
Quarter Ended
|
Nine Months Ended
|
|||||||||||||||
May 3,
2013
|
April 27,
2012
|
May 3,
2013
|
April 27,
2012
|
|||||||||||||
Nonvested stock awards
|
$ | 5,074 | $ | 2,774 | $ | 9,238 | $ | 6,839 | ||||||||
Performance-based market stock units (“MSU Grants”)
|
513 | 491 | 1,670 | 1,526 | ||||||||||||
Stock options
|
-- | 219 | 88 | 1,065 | ||||||||||||
$ | 5,587 | $ | 3,484 | $ | 10,996 | $ | 9,430 |
10.
|
Net Income Per Share and Weighted Average Shares
|
Quarter Ended
|
Nine Months Ended
|
|||||||||||||||
May 3,
2013
|
April 27,
2012
|
May 3,
2013
|
April 27,
2012
|
|||||||||||||
Net income per share numerator
|
$ | 24,602 | $ | 18,974 | $ | 82,962 | $ | 68,385 | ||||||||
Net income per share denominator:
|
||||||||||||||||
Weighted average shares
|
23,760,589 | 23,132,730 | 23,683,133 | 22,990,544 | ||||||||||||
Add potential dilution:
|
||||||||||||||||
Stock options, nonvested stock awards and MSU Grants
|
246,232 | 403,035 | 230,093 | 338,686 | ||||||||||||
Diluted weighted average shares
|
24,006,821 | 23,535,765 | 23,913,226 | 23,329,230 |
11.
|
Commitments and Contingencies
|
|
·
|
Refresh select menu categories that will reinforce our value and provide healthier options to our guests;
|
|
·
|
Grow retail sales with unique merchandise;
|
|
·
|
Build on the successful “Handcrafted by Cracker Barrel” advertising campaign;
|
|
·
|
Invest in and leverage technology and equipment to support operations and reduce costs;
|
|
·
|
Continued focus on shareholder return; and
|
|
·
|
Expand the brand through e-commerce and licensing.
|
Quarter Ended
|
Nine Months Ended
|
|||||||||||||||
May 3,
|
April 27,
|
May 3,
|
April 27,
|
|||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
Total revenue
|
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
Cost of goods sold
|
31.5 | 31.2 | 32.7 | 32.5 | ||||||||||||
Gross profit
|
68.5 | 68.8 | 67.3 | 67.5 | ||||||||||||
Labor and other related expenses
|
37.8 | 38.6 | 36.5 | 36.8 | ||||||||||||
Other store operating expenses
|
18.2 | 18.1 | 18.0 | 18.0 | ||||||||||||
Store operating income
|
12.5 | 12.1 | 12.8 | 12.7 | ||||||||||||
General and administrative expenses
|
5.6 | 5.7 | 5.4 | 5.7 | ||||||||||||
Operating income
|
6.9 | 6.4 | 7.4 | 7.0 | ||||||||||||
Interest expense
|
1.6 | 1.8 | 1.5 | 1.8 | ||||||||||||
Income before income taxes
|
5.3 | 4.6 | 5.9 | 5.2 | ||||||||||||
Provision for income taxes
|
1.5 | 1.5 | 1.7 | 1.6 | ||||||||||||
Net income
|
3.8 | % | 3.1 | % | 4.2 | % | 3.6 | % |
Quarter Ended
|
Nine Months Ended
|
|||||||||||||||
May 3,
|
April 27,
|
May 3,
|
April 27,
|
|||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
Open at beginning of period
|
621 | 608 | 616 | 603 | ||||||||||||
Opened during period
|
1 | 5 | 6 | 10 | ||||||||||||
Open at the end of period
|
622 | 613 | 622 | 613 |
Quarter Ended
|
Nine Months Ended
|
|||||||||||||||
May 3,
2013
|
April 27,
2012
|
May 3,
2013
|
April 27,
2012
|
|||||||||||||
Revenue in dollars:
|
||||||||||||||||
Restaurant
|
$ | 522,642 | $ | 500,025 | $ | 1,555,111 | $ | 1,485,065 | ||||||||
Retail
|
117,765 | 108,489 | 415,418 | 395,120 | ||||||||||||
Total revenue
|
$ | 640,407 | $ | 608,514 | $ | 1,970,529 | $ | 1,880,185 | ||||||||
Total revenue by percentage relationships:
|
||||||||||||||||
Restaurant
|
81.6 | % | 82.2 | % | 78.9 | % | 79.0 | % | ||||||||
Retail
|
18.4 | % | 17.8 | % | 21.1 | % | 21.0 | % | ||||||||
Average unit volumes(1):
|
||||||||||||||||
Restaurant
|
$ | 840.8 | $ | 817.9 | $ | 2,506.5 | $ | 2,443.4 | ||||||||
Retail
|
189.4 | 177.4 | 669.5 | 650.1 | ||||||||||||
Total revenue
|
$ | 1,030.2 | $ | 995.3 | $ | 3,176.0 | $ | 3,093.5 | ||||||||
Comparable store sales increase:
|
||||||||||||||||
Restaurant
|
3.1 | % | 3.1 | % | 3.2 | % | 1.7 | % | ||||||||
Retail
|
5.5 | % | 0.3 | % | 3.4 | % | 1.1 | % | ||||||||
Restaurant and retail
|
3.5 | % | 2.6 | % | 3.3 | % | 1.5 | % |
Quarter Ended
|
Nine Months Ended
|
|||||||||||||||
May 3,
2013
|
April 27,
2012
|
May 3,
2013
|
April 27,
2012
|
|||||||||||||
Cost of Goods Sold in dollars:
|
||||||||||||||||
Restaurant
|
$ | 141,617 | $ | 135,301 | $ | 423,138 | $ | 401,453 | ||||||||
Retail
|
60,365 | 54,314 | 220,889 | 209,860 | ||||||||||||
Total Cost of Goods Sold
|
$ | 201,982 | $ | 189,615 | $ | 644,027 | $ | 611,313 | ||||||||
Cost of Goods Sold by percentage of revenue:
|
||||||||||||||||
Restaurant
|
27.1 | % | 27.1 | % | 27.2 | % | 27.0 | % | ||||||||
Retail
|
51.3 | % | 50.1 | % | 53.2 | % | 53.1 | % |
Third Quarter
Increase as a Percentage of
Retail Revenue
|
||||
Markdowns
|
0.9 | % | ||
Freight
|
0.3 | % |
Third Quarter
(Decrease) Increase as a
Percentage of Total Revenue
|
||||
Store hourly labor and related payroll taxes
|
(0.9 | %) | ||
Workers’ compensation expense
|
(0.1 | %) | ||
Pre-opening labor expense
|
(0.1 | %) | ||
Store bonus expense
|
0.3 | % |
Nine Month Period
(Decrease) Increase as a
Percentage of Total Revenue
|
||||
Store hourly labor and related payroll taxes
|
(0.6 | %) | ||
Employee health care expenses
|
0.2 | % | ||
Store bonus expense
|
0.2 | % |
Nine Month Period
Increase (Decrease) as a
Percentage of Total Revenue
|
||||
Litigation settlement received in 2012
|
0.2 | % | ||
Utilities expense
|
(0.2 | %) |
Third Quarter
(Decrease) Increase as a
Percentage of Total Revenue
|
||||
Payroll and related expenses
|
(0.5 | %) | ||
Incentive compensation
|
0.4 | % |
Nine Month Period
(Decrease) as a Percentage
of Total Revenue
|
||||
Payroll and related expenses
|
(0.2 | %) | ||
Manager conference expense
|
(0.1 | %) |
|
·
|
management believes are most important to the accurate portrayal of both our financial condition and operating results, and
|
|
·
|
require management’s most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain.
|
|
·
|
Impairment of Long-Lived Assets and Provision for Asset Dispositions
|
|
·
|
Insurance Reserves
|
|
·
|
Retail Inventory Valuation
|
|
·
|
Tax Provision
|
|
·
|
Share-Based Compensation
|
|
·
|
The expected volatility is a blend of implied volatility based on market-traded options on our stock and historical volatility of our stock over the period commensurate with the three-year performance period.
|
|
·
|
The risk-free interest rate is based on the U.S. Treasury rate assumption commensurate with the three-year performance period.
|
|
·
|
The expected dividend yield is based on our current dividend yield as the best estimate of projected dividend yield for periods within the three-year performance period.
|
ITEM 4.
|
ITEM 1.
|
ITEM 1A.
|
Period
|
Total Number of Shares Purchased
|
Average Price Paid Per
Share (1)
|
Total Number of
Shares
Purchased as Part
of Publicly
Announced Plans
or Programs
|
Maximum Number of
Shares that May Yet Be
Purchased Under the
Plans or Programs
|
|||||||||
2/2/13 – 3/1/13
|
-- | -- | -- |
Indeterminate (2)
|
|||||||||
3/2/13 – 3/29/13
|
31,800 | $ | 80.75 | 31,800 |
Indeterminate (2)
|
||||||||
3/30/13 – 5/3/13
|
12,500 | $ | 80.14 | 12,500 |
Indeterminate (2)
|
||||||||
Total for the quarter
|
44,300 | $ | 80.58 | 44,300 |
Indeterminate (2)
|
|
(1)
|
Average price paid per share is calculated on a settlement basis and includes commissions and fees.
|
|
(2)
|
Subject to a maximum amount of $100,000 and the limits imposed by our Credit Facility, we have been authorized by our Board of Directors, on September 19, 2012, to repurchase shares during 2013. See Note 7 to our Consolidated Financial Statements contained in the 2012 Form 10-K.
|
ITEM 6.
|
CRACKER BARREL OLD COUNTRY STORE, INC.
|
||
Date: June 3, 2013
|
By:
|
/s/Lawrence E. Hyatt
|
Lawrence E. Hyatt, Senior Vice President and
|
||
Chief Financial Officer
|
||
Date: June 3, 2013
|
By:
|
/s/P. Douglas Couvillion
|
P. Douglas Couvillion, Vice President, Corporate Controller and
Principal Accounting Officer
|
Second Amendment to Credit Agreement dated as of May 31, 2013
|
|
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)
|
|
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)
|
|
Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith)
|
|
Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith)
|
|
101.INS
|
XBRL Instance Document (filed herewith)
|
101.SCH
|
XBRL Taxonomy Extension Schema (filed herewith)
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase (filed herewith)
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase (filed herewith)
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase (filed herewith)
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase (filed herewith)
|
BORROWER:
|
CRACKER BARREL OLD COUNTRY STORE, INC. | ||
By:
|
/s/ Lawrence E. Hyatt | ||
Name:
|
Lawrence E. Hyatt
|
||
Title:
|
Senior Vice President & CFO
|
GUARANTORS:
|
CB MUSIC, LLC
|
||
By:
|
/s/ Michael J. Zylstra
|
||
Name:
|
Michael J. Zylstra
|
||
Title:
|
Secretary
|
||
CBOCS DISTRIBUTION, INC. | |||
By:
|
/s/ Michael J. Zylstra
|
||
Name:
|
Michael J. Zylstra
|
||
Title:
|
Secretary
|
||
CBOCS TEXAS, LLC | |||
By:
|
/s/ Doug Couvillion
|
||
Name:
|
Doug Couvillion
|
||
Title:
|
President
|
||
CBOCS PENNSYLVANIA, LLC | |||
By:
|
/s/ Michael J. Zylstra
|
||
Name:
|
Michael J. Zylstra
|
||
Title:
|
Secretary
|
CBOCS PROPERTIES, INC. | |||
By:
|
/s/ Christopher A. Ciavarra
|
||
Name:
|
Christopher A. Ciavarra
|
||
Title:
|
Vice President
|
||
CBOCS SUPPLY, INC. | |||
By:
|
/s/ Michael J. Zylstra
|
||
Name:
|
Michael J. Zylstra
|
||
Title:
|
Secretary
|
CBOCS WEST, INC.
|
|||
By:
|
/s/ Michael J. Zylstra
|
||
Name:
|
Michael J. Zylstra
|
||
Title: |
Secretary
|
||
ROCKING CHAIR, INC. | |||
By:
|
/s/ Elizabeth Wilson
|
||
Name:
|
Elizabeth Wilson
|
||
Title:
|
Assistant Secretary
|
ADMINISTRATIVE AGENT:
|
WELLS FARGO BANK, NATIONAL ASSOCIATION,
|
||
as Administrative Agent on behalf of itself and the Required Lenders,
|
|||
By:
|
/s/ Stephen A. Leon
|
||
Name:
|
Stephen A. Leon | ||
Title:
|
Managing Director |
|
Re:
|
Second Amendment to Credit Agreement dated as of May __, 2013 (the “Second Amendment”) to that certain Credit Agreement dated as of July 8, 2011 (as amended, the “Credit Agreement”) among Cracker Barrel Old Country Store, Inc. (the “Borrower”), the lenders identified therein (the “Lenders”) and Wells Fargo Bank, National Association, as administrative agent (the “Administrative Agent”) for the Lenders.
|
[Insert name of applicable financial institution] | |||
By:
|
|||
Name:
|
|||
Title:
|
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Cracker Barrel Old Country Store, Inc.;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
|
5.
|
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Cracker Barrel Old Country Store, Inc.;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
|
5.
|
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
1.
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Issuer.
|
Date: June 3, 2013
|
By: /s/Sandra B. Cochran
|
Sandra B. Cochran
|
|
President and Chief Executive Officer
|
1.
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Issuer.
|
Date: June 3, 2013
|
By: /s/Lawrence E. Hyatt
|
Lawrence E. Hyatt,
|
|
Senior Vice President and Chief Financial Officer
|
Commitments and Contingencies
|
9 Months Ended |
---|---|
May 03, 2013
|
|
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 11. Commitments and Contingencies The Company and its subsidiaries are party to various legal and regulatory proceedings and claims incidental to their business in the ordinary course. In the opinion of management, based upon information currently available, the ultimate liability with respect to these proceedings and claims will not materially affect the Company's consolidated results of operations or financial position. Related to its workers' compensation insurance coverage, the Company is contingently liable pursuant to standby letters of credit as credit guarantees to certain insurers. As of May 3, 2013, the Company had $28,171 of standby letters of credit related to securing reserved claims under workers' compensation insurance. All standby letters of credit are renewable annually and reduce the Company's borrowing availability under its Revolving Credit Facility (see Note 4). At May 3, 2013, the Company is secondarily liable for lease payments associated with two properties. The Company is not aware of any non-performance under these lease arrangements that would result in the Company having to perform in accordance with the terms of those guarantees; and therefore, no provision has been recorded in the Condensed Consolidated Balance Sheets for amounts to be paid in case of non-performance by the third parties. The Company enters into certain indemnification agreements in favor of third parties in the ordinary course of business. The Company believes that the probability of incurring an actual liability under such indemnification agreements is sufficiently remote so that no liability has been recorded in the Condensed Consolidated Balance Sheets. |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (USD $)
In Thousands, except Share data, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
May 03, 2013
|
Apr. 27, 2012
|
May 03, 2013
|
Apr. 27, 2012
|
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) [Abstract] | ||||
Total revenue | $ 640,407 | $ 608,514 | $ 1,970,529 | $ 1,880,185 |
Cost of goods sold | 201,982 | 189,615 | 644,027 | 611,313 |
Gross profit | 438,425 | 418,899 | 1,326,502 | 1,268,872 |
Labor and other related expenses | 241,864 | 235,275 | 719,474 | 691,176 |
Other store operating expenses | 116,408 | 109,947 | 354,859 | 338,127 |
Store operating income | 80,153 | 73,677 | 252,169 | 239,569 |
General and administrative expenses | 35,981 | 34,569 | 105,492 | 108,500 |
Operating income | 44,172 | 39,108 | 146,677 | 131,069 |
Interest expense | 10,194 | 11,173 | 31,199 | 33,333 |
Income before income taxes | 33,978 | 27,935 | 115,478 | 97,736 |
Provision for income taxes | 9,376 | 8,961 | 32,516 | 29,351 |
Net income | $ 24,602 | $ 18,974 | $ 82,962 | $ 68,385 |
Net income per share: | ||||
Basic (in dollars per share) | $ 1.04 | $ 0.82 | $ 3.50 | $ 2.97 |
Diluted (in dollars per share) | $ 1.02 | $ 0.81 | $ 3.47 | $ 2.93 |
Weighted average shares: | ||||
Basic (in shares) | 23,760,589 | 23,132,730 | 23,683,133 | 22,990,544 |
Diluted (in shares) | 24,006,821 | 23,535,765 | 23,913,226 | 23,329,230 |
Dividends declared per share (in dollars per share) | $ 0.50 | $ 0.65 | $ 1.50 | $ 1.15 |
Debt
|
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 03, 2013
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | 4. Debt Long-term debt consisted of the following at:
The Company's $750,000 credit facility (the "Credit Facility") consists of a term loan and a $500,000 revolving credit facility (the "Revolving Credit Facility"). At May 3, 2013, the Company had $212,500 of outstanding borrowings under the Revolving Credit Facility and $28,171 of standby letters of credit, which reduce the Company's availability under the Revolving Credit Facility (see Note 11). At May 3, 2013, the Company had $259,329 in borrowing availability under the Revolving Credit Facility. In accordance with the Credit Facility, outstanding borrowings bear interest, at the Company's election, either at LIBOR or prime plus a percentage point spread based on certain specified financial ratios under the Credit Facility. As of May 3, 2013, the Company's outstanding borrowings were swapped at a weighted average interest rate of 3.98% (see Note 5 for information on the Company's interest rate swaps). The Credit Facility contains customary financial covenants, which include maintenance of a maximum consolidated total leverage ratio and a minimum consolidated interest coverage ratio. At May 3, 2013, the Company was in compliance with all debt covenants. The Credit Facility also imposes restrictions on the amount of dividends the Company is permitted to pay. Prior to the June 3, 2013 amendment described below, if there was no default existing and the total of the Company's availability under the Revolving Credit Facility plus the Company's cash and cash equivalents on hand was at least $100,000 (the "liquidity requirements"), the Company could declare and pay cash dividends on shares of its common stock if the aggregate amount of dividends paid in any fiscal year was less than 20% of Consolidated EBITDA from continuing operations (as defined in the Credit Facility) (the "20% limitation") during the immediately preceding fiscal year. In any event, as long as the liquidity requirements were met, dividends could be declared and paid in any fiscal year up to the amount of dividends permitted and paid in the preceding fiscal year without regard to the 20% limitation. Effective June 3, 2013, the Company amended the Credit Facility to provide more flexibility with regard to the dividends the Company is permitted to pay. Under the amended Credit Facility, if there is no default existing and the liquidity requirements are met, the Company may declare and pay cash dividends on shares of its common stock if the aggregate amount of dividends paid in any fiscal year is less than the sum of (1) the 20% limitation and (2) provided the Company's consolidated total leverage ratio is 3.25 to 1.00 or less, $100,000 (less the amount of any share repurchases during the current fiscal year). In any event, as long as the liquidity requirements are met, dividends may be declared and paid in any fiscal year up to the amount of dividends permitted and paid in the preceding fiscal year without regard to the 20% limitation. The note payable consists of a five-year note with a vendor with an original principal amount of $507 and represents the financing of prepaid maintenance for telecommunications equipment. The note payable is payable in monthly installments of principal and interest of $9 through October 16, 2013 and bears interest at 2.88% per year. |
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Net Income Per Share and Weighted Average Shares (Tables)
|
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 03, 2013
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income Per Share and Weighted Average Shares [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of components of diluted earnings per share computations | The following table reconciles the components of diluted earnings per share computations:
|
Fair Value Measurements (Tables)
|
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 03, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities measured at fair value on a recurring basis | The Company's assets and liabilities measured at fair value on a recurring basis at May 3, 2013 were as follows:
The Company's assets and liabilities measured at fair value on a recurring basis at August 3, 2012 were as follows:
*Consists of money market fund investments. **Represents plan assets invested in mutual funds established under a Rabbi Trust for the Company's non-qualified savings plan and is included in the Consolidated Balance Sheets as other assets. |
Debt (Details) (USD $)
In Thousands, unless otherwise specified |
9 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 0 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 03, 2013
|
Jun. 03, 2013
|
Aug. 03, 2012
|
May 03, 2013
Revolving Credit Facility [Member]
|
Aug. 03, 2012
Revolving Credit Facility [Member]
|
May 03, 2013
Term Loans Payable [Member]
|
Aug. 03, 2012
Term Loans Payable [Member]
|
May 03, 2013
Notes Payable [Member]
|
Aug. 03, 2012
Notes Payable [Member]
|
Jun. 03, 2013
Credit Facility [Member]
|
May 03, 2013
Credit Facility [Member]
|
||||
Debt Instrument [Line Items] | ||||||||||||||
Long-term debt, gross | $ 400,063 | $ 525,142 | $ 212,500 | $ 312,500 | $ 187,500 | $ 212,500 | $ 63 | $ 142 | ||||||
Current maturities | (63) | (106) | ||||||||||||
Long-term debt | 400,000 | 525,036 | [1] | |||||||||||
Line of credit facility, expiration date | Jul. 08, 2016 | |||||||||||||
Maturity date | Jul. 08, 2016 | Oct. 16, 2013 | ||||||||||||
Maximum borrowing capacity | 500,000 | 750,000 | ||||||||||||
Amount of standby letters of credit | 28,171 | |||||||||||||
Current borrowing capacity | 259,329 | |||||||||||||
Weighted average interest rates of the Company's swapped term loans (in hundredths) | 3.98% | |||||||||||||
Restrictions on dividends payable | The Credit Facility also imposes restrictions on the amount of dividends the Company is permitted to pay. Prior to the June 3, 2013 amendment described below, if there was no default existing and the total of the Company's availability under the Revolving Credit Facility plus the Company's cash and cash equivalents on hand was at least $100,000 (the "liquidity requirements"), the Company could declare and pay cash dividends on shares of its common stock if the aggregate amount of dividends paid in any fiscal year was less than 20% of Consolidated EBITDA from continuing operations (as defined in the Credit Facility) (the "20% limitation") during the immediately preceding fiscal year. In any event, as long as the liquidity requirements were met, dividends could be declared and paid in any fiscal year up to the amount of dividends permitted and paid in the preceding fiscal year without regard to the 20% limitation. | |||||||||||||
Term of debt instrument | 5 years | |||||||||||||
Original principal amount of notes payable | 507 | |||||||||||||
Monthly installment of principal and interest on notes payable | 9 | |||||||||||||
Interest rate during the period (in hundredths) | 2.88% | |||||||||||||
Liquidity requirements | 100,000 | |||||||||||||
Dividend limitation (in hundredths) | 20.00% | 20.00% | ||||||||||||
Dividends limit | $ 100,000 | |||||||||||||
Leverage ratio | 3.25 | |||||||||||||
|
Inventories (Details) (USD $)
In Thousands, unless otherwise specified |
May 03, 2013
|
Aug. 03, 2012
|
|||
---|---|---|---|---|---|
Inventories [Abstract] | |||||
Retail | $ 98,110 | $ 108,846 | |||
Restaurant | 21,185 | 19,728 | |||
Supplies | 14,836 | 14,693 | |||
Total | $ 134,131 | $ 143,267 | [1] | ||
|
Share-Based Compensation (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
May 03, 2013
|
Apr. 27, 2012
|
May 03, 2013
|
Apr. 27, 2012
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation cost | $ 5,587 | $ 3,484 | $ 10,996 | $ 9,430 |
Nonvested Stock Awards [Member]
|
||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation cost | 5,074 | 2,774 | 9,238 | 6,839 |
Performance-Based Market Stock Units ("MSU Grants") [Member]
|
||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation cost | 513 | 491 | 1,670 | 1,526 |
Stock Options [Member]
|
||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation cost | $ 0 | $ 219 | $ 88 | $ 1,065 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)
In Thousands, unless otherwise specified |
9 Months Ended | ||||
---|---|---|---|---|---|
May 03, 2013
|
Apr. 27, 2012
|
||||
Cash flows from operating activities: | |||||
Net income | $ 82,962 | $ 68,385 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Depreciation and amortization | 49,000 | 47,742 | |||
Loss on disposition of property and equipment | 2,324 | 1,832 | |||
Share-based compensation | 10,996 | 9,430 | |||
Excess tax benefit from share-based compensation | (1,961) | (1,921) | |||
Changes in assets and liabilities: | |||||
Inventories | 9,136 | 10,543 | |||
Other current assets | (3,882) | (2,263) | |||
Accounts payable | (28,539) | (12,023) | |||
Other current liabilities | (16,550) | 18,699 | |||
Other long-term assets and liabilities | 3,213 | 1,461 | |||
Net cash provided by operating activities | 106,699 | 141,885 | |||
Cash flows from investing activities: | |||||
Purchase of property and equipment | (46,178) | (57,434) | |||
Proceeds from sale of property and equipment | 550 | 491 | |||
Proceeds from insurance recoveries of property and equipment | 440 | 668 | |||
Net cash used in investing activities | (45,188) | (56,275) | |||
Cash flows from financing activities: | |||||
Proceeds from issuance of long-term debt | 0 | 92,600 | |||
Principal payments under long-term debt and other long-term obligations | (125,087) | (92,704) | |||
Proceeds from exercise of share-based compensation awards | 5,195 | 16,729 | |||
Excess tax benefit from share-based compensation | 1,961 | 1,921 | |||
Purchases and retirement of common stock | (3,570) | (12,279) | |||
Deferred financing costs | 0 | (263) | |||
Dividends on common stock | (33,515) | (16,568) | |||
Net cash used in financing activities | (155,016) | (10,564) | |||
Net (decrease) increase in cash and cash equivalents | (93,505) | 75,046 | |||
Cash and cash equivalents, beginning of period | 151,962 | [1] | 52,274 | ||
Cash and cash equivalents, end of period | 58,457 | 127,320 | |||
Cash paid during the period for: | |||||
Interest, net of amounts capitalized | 29,670 | 29,593 | |||
Income taxes | 35,659 | 11,764 | |||
Supplemental schedule of non-cash financing activity: | |||||
Change in fair value of interest rate swaps | 17,493 | 12,902 | |||
Change in deferred tax asset for interest rate swaps | $ (6,711) | $ (2,000) | |||
|
Fair Value Measurements
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9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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May 03, 2013
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Fair Value Measurements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | 2. Fair Value Measurements The Company's assets and liabilities measured at fair value on a recurring basis at May 3, 2013 were as follows:
The Company's assets and liabilities measured at fair value on a recurring basis at August 3, 2012 were as follows:
*Consists of money market fund investments. **Represents plan assets invested in mutual funds established under a Rabbi Trust for the Company's non-qualified savings plan and is included in the Consolidated Balance Sheets as other assets. The Company's money market fund investments and deferred compensation plan assets are measured at fair value using quoted market prices. The fair value of the Company's interest rate swap liabilities is determined based on the present value of expected future cash flows. Since the values of the Company's interest rate swaps are based on the LIBOR forward curve, which is observable at commonly quoted intervals for the full terms of the swaps, it is considered a Level 2 input. Non-performance risk is reflected in determining the fair value of the interest rate swaps by using the Company's credit spread less the risk-free interest rate, both of which are observable at commonly quoted intervals for the terms of the swaps. Thus, the adjustment for non-performance risk is also considered a Level 2 input. The fair values of the Company's accounts receivable and accounts payable approximate their carrying amounts because of their short duration. The fair value of the Company's variable rate debt, based on quoted market prices, which are considered Level 1 inputs, approximates its carrying amount at May 3, 2013 and August 3, 2012. |
Derivative Instruments and Hedging Activities
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9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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May 03, 2013
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities | 5. Derivative Instruments and Hedging Activities The Company has interest rate risk relative to its outstanding borrowings (see Note 4). The Company's policy has been to manage interest cost using a mix of fixed and variable rate debt. To manage this risk in a cost efficient manner, the Company uses derivative instruments, specifically interest rate swaps. For each of the Company's interest rate swaps, the Company has agreed to exchange with a counterparty the difference between fixed and variable interest amounts calculated by reference to an agreed-upon notional principal amount. The interest rates on the portion of the Company's outstanding debt covered by its interest rate swaps are fixed at the rates in the table below plus the Company's credit spread. The Company's weighted average credit spread at May 3, 2013 was 1.75%. All of the Company's interest rate swaps are accounted for as cash flow hedges. A summary of the Company's interest rate swaps at May 3, 2013 is as follows:
The Company's interest rate swap with a notional amount of $525,000 and a fixed rate of 5.57% expired on May 3, 2013. The Company does not hold or use derivative instruments for trading purposes. The Company also does not have any derivatives not designated as hedging instruments and has not designated any non-derivatives as hedging instruments. The estimated fair values of the Company's derivative instruments as of May 3, 2013 and August 3, 2012 were as follows:
The estimated fair value of the Company's interest rate swap liabilities incorporates the Company's non-performance risk (see Note 2). The adjustment related to the Company's non-performance risk at May 3, 2013 and August 3, 2012 resulted in reductions of $360 and $851, respectively, in the fair value of the interest rate swap liabilities. The offset to the interest rate swap liabilities is recorded in accumulated other comprehensive loss ("AOCL"), net of the deferred tax asset, and will be reclassified into earnings over the term of the underlying debt. As of May 3, 2013, the estimated pre-tax portion of AOCL that is expected to be reclassified into earnings over the next twelve months is $5,959. Cash flows related to the interest rate swap are included in interest expense and in operating activities. The following table summarizes the pre-tax effects of the Company's derivative instruments on AOCL for the nine-month period ended May 3, 2013 and the year ended August 3, 2012:
The following table summarizes the pre-tax effects of the Company's derivative instruments on income for the quarters and nine-month periods ended May 3, 2013 and April 27, 2012:
Any portion of the fair value of the swaps determined to be ineffective will be recognized currently in earnings. No ineffectiveness has been recorded in the nine-month periods ended May 3, 2013 and April 27, 2012. |
Inventories
|
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 03, 2013
|
||||||||||||||||||||||||||||||||||||||||||||||
Inventories [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
Inventories | 3. Inventories Inventories were comprised of the following at:
|
Derivative Instruments and Hedging Activities (Details) (USD $)
In Thousands, unless otherwise specified |
9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 03, 2013
|
May 03, 2013
Interest Rate Swap [Member]
|
Aug. 03, 2012
Interest Rate Swap [Member]
|
May 03, 2013
Interest Rate Swap [Member]
Cash Flow Hedging [Member]
|
Aug. 03, 2012
Interest Rate Swap [Member]
Cash Flow Hedging [Member]
|
May 03, 2013
Interest Rate Swap [Member]
Cash Flow Hedging [Member]
Interest Expense [Member]
|
Apr. 27, 2012
Interest Rate Swap [Member]
Cash Flow Hedging [Member]
Interest Expense [Member]
|
May 03, 2013
Interest Rate Swap [Member]
Cash Flow Hedging [Member]
Interest Expense [Member]
|
Apr. 27, 2012
Interest Rate Swap [Member]
Cash Flow Hedging [Member]
Interest Expense [Member]
|
May 03, 2013
Current interest rate swap liability [Member]
|
Aug. 03, 2012
Current interest rate swap liability [Member]
|
May 03, 2013
Current interest rate swap liability [Member]
Interest Rate Swap [Member]
|
Aug. 03, 2012
Current interest rate swap liability [Member]
Interest Rate Swap [Member]
|
May 03, 2013
Long-term interest rate swap liability [Member]
Interest Rate Swap [Member]
|
Aug. 03, 2012
Long-term interest rate swap liability [Member]
Interest Rate Swap [Member]
|
May 03, 2013
Interest Rate Swap Aug 10, 2010 [Member]
|
May 03, 2013
Two Year Interest Rate Swap July 25, 2011 [Member]
|
May 03, 2013
Three Year Interest Rate Swap July 25, 2011 [Member]
|
May 03, 2013
Interest Rate Swap 1 September 19, 2011 [Member]
|
May 03, 2013
Interest Rate Swap 2 September 19, 2011 [Member]
|
May 03, 2013
Interest Rate Swap December 7, 2011 [Member]
|
May 03, 2013
Interest Rate Swap March 18, 2013 [Member]
|
May 03, 2013
Interest Rate Swap April 8, 2013 [Member]
|
May 03, 2013
Interest Rate Swap April 15, 2013 [Member]
|
May 03, 2013
Interest Rate Swap April 22, 2013 [Member]
|
May 03, 2013
Interest Rate Swap April 25, 2013 [Member]
|
May 03, 2013
Interest Rate Swap May 4, 2006 [Member]
|
|
Derivative [Line Items] | |||||||||||||||||||||||||||
Company's credit spread (in hundredths) | 1.75% | ||||||||||||||||||||||||||
Effective date | May 03, 2013 | May 03, 2013 | May 03, 2013 | May 03, 2013 | May 03, 2013 | May 03, 2013 | May 03, 2015 | May 03, 2015 | May 03, 2015 | May 03, 2015 | May 03, 2015 | ||||||||||||||||
Term | 2 years | 2 years | 3 years | 2 years | 2 years | 3 years | 3 years | 2 years | 2 years | 3 years | 3 years | ||||||||||||||||
Notional amount | $ 200,000 | $ 50,000 | $ 50,000 | $ 25,000 | $ 25,000 | $ 50,000 | $ 50,000 | $ 50,000 | $ 50,000 | $ 25,000 | $ 25,000 | $ 525,000 | |||||||||||||||
Fixed rate (in hundredths) | 2.73% | 2.00% | 2.45% | 1.05% | 1.05% | 1.40% | 1.51% | 1.05% | 1.03% | 1.30% | 1.29% | 5.57% | |||||||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||||||||||||||||||
Fair Value | 16,888 | 34,381 | 0 | 20,215 | 16,888 | 14,166 | |||||||||||||||||||||
Reduction in the fair value | 360 | 851 | |||||||||||||||||||||||||
Estimated pre-tax portion of AOCL that is expected to be reclassified into earnings over the next twelve months | 5,959 | ||||||||||||||||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||||||||||||||||||
Amount of Income Recognized in AOCL on Derivative (Effective Portion) | 17,493 | 17,223 | |||||||||||||||||||||||||
Amount of Loss Reclassified from AOCL into Income (Effective Portion) | $ 13,743 | $ 7,222 | $ 20,773 | $ 22,134 |
Net Income Per Share and Weighted Average Shares (Details) (USD $)
In Thousands, except Share data, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
May 03, 2013
|
Apr. 27, 2012
|
May 03, 2013
|
Apr. 27, 2012
|
|
Net Income Per Share and Weighted Average Shares [Abstract] | ||||
Net income per share numerator | $ 24,602 | $ 18,974 | $ 82,962 | $ 68,385 |
Net income per share denominator: [Abstract] | ||||
Basic weighted average shares outstanding (in shares) | 23,760,589 | 23,132,730 | 23,683,133 | 22,990,544 |
Add potential dilution: [Abstract] | ||||
Stock options and nonvested stock awards and MSU Grants (in shares) | 246,232 | 403,035 | 230,093 | 338,686 |
Diluted weighted average shares outstanding (in shares) | 24,006,821 | 23,535,765 | 23,913,226 | 23,329,230 |