Delaware | 001-8308 | 74-1335253 |
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (IRS Employer Identification Number) |
13111 Northwest Freeway, Suite 600 Houston, Texas 77040 | ||
(Address of principal executive offices, including zip code) |
(713) 329-6800 | ||
(Registrant's telephone number, including area code) |
(Former name, former address and former fiscal year, if changed since last report) |
¨ | 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)) |
Item 2.02. | Results of Operations and Financial Condition. |
Item 9.01. | Financial Statements and Exhibits. |
Exhibit 99.1 | November 8, 2017 |
LUBY'S, INC. | |||||
(Registrant) | |||||
Date: | November 8, 2017 | By: | /s/Christopher J. Pappas | ||
Christopher J. Pappas | |||||
President and Chief Executive Officer |
Exhibit No. | Description | |
99.1 | Luby’s Press Release dated | November 8, 2017 |
For additional information contact: | ||
FOR IMMEDIATE RELEASE | Dennard-Lascar Associates | |
Rick Black / Ken Dennard | ||
Investor Relations | ||
713-529-6600 |
• | Total sales were $376.0 million, including $350.8 million in restaurant sales. On a comparable 52-week basis, total sales decreased approximately $19.5 million, including a $9.2 million reduction in sales due to closure of underperforming restaurants in fiscal 2017 and fiscal 2016. |
• | Total same-store sales decreased 3.4%, including a 3.3% same-store sales decrease at the Luby's Cafeterias and a 1.8% same-store sales decrease at Fuddruckers. Hurricane Harvey reduced Luby's same-store sales by approximately 1.0% and reduced Fuddruckers same-store sales by approximately 0.6%. |
• | Culinary contract services revenue increased $1.2 million, or 7.5%, to $17.9 million compared to fiscal 2016. Culinary contract services operated at 25 locations at the end of fiscal 2017 compared to 24 locations at the end of fiscal 2016. |
• | Selling, general and administrative expenses decreased $4.5 million, or 10.7%, to $37.9 million compared to fiscal 2016. This decrease included reductions in salaries, benefits, and other compensation expense, lower corporate travel expense, and reduced investment in marketing and advertising. |
• | Loss from continuing operations was $22.8 million, or $0.77 per diluted share, in fiscal 2017, compared to a loss of $10.3 million, or $0.35 per diluted share, in fiscal 2016. Loss from continuing operations included non-cash asset impairment charges of $10.6 million ($7.0 million after-tax) and $1.4 million ($1.0 million after-tax) in fiscal 2017 and fiscal 2016, respectively. Loss from continuing operations also included non-cash charges for deferred tax asset valuation allowance increases of approximately $9.5 million and $6.9 million in fiscal 2017 and fiscal 2016, respectively. Excluding special items, loss from continuing operations was $6.1 million, or $0.21 per diluted share, in fiscal 2017, compared to a loss of $1.6 million, or $0.06 per diluted share, in fiscal 2016. |
• | Adjusted EBITDA was $13.3 million in fiscal 2017 compared to $22.1 million in fiscal 2016. $6.0 million of the $8.8 million decline in Adjusted EBITDA occurred in the first two fiscal quarters of fiscal 2017. |
• | One company-owned Fuddruckers Restaurant and eight franchise-owned Fuddruckers Restaurants opened during fiscal 2017. |
• | Nine underperforming company-owned restaurants were closed in fiscal 2017 and five were closed in fiscal 2016. These restaurants accounted for $2.1 million in pre-tax loss, or $1.4 million in after-tax loss from continuing operations, in fiscal 2017 prior to their closure. |
• | Five owned property locations were sold generating $8.0 million in net cash proceeds; the proceeds were used to reduce our outstanding debt balance. |
Quarter Ended | Four Quarters Ended | ||||
December 21, 2016 | March 15, 2017 | June 7, 2017 | August 30, 2017 | August 30, 2017 | |
Q1 2017(3) | Q2 2017(3) | Q3 2017(3) | Q4 2017(3) | Full Year 2017(3) | |
(16 weeks vs 16 weeks) | (12 weeks vs 12 weeks) | (12 weeks vs 12 weeks) | (12 weeks vs 12 weeks) | (52 weeks vs 52 weeks) | |
Luby's Cafeterias | (2.2)% | (4.4)% | (2.5)% | (4.5)% | (3.3)% |
Fuddruckers Restaurants | (1.6)% | (1.1)% | (0.9)% | (3.6)% | (1.8)% |
Cheeseburger in Paradise | (7.8)% | (7.3)% | (9.8)% | (15.4)% | (10.5)% |
Combo locations (1) | (2.3)% | (6.5)% | (5.5)% | (7.2)% | (5.3)% |
Total same-store sales (2) | (2.3)% | (3.8)% | (2.7)% | (5.1)% | (3.4)% |
(1) | Combo locations consist of a side-by-side Luby’s Cafeteria and Fuddruckers Restaurant at one property location. |
(2) | Luby’s includes a restaurant’s sales results into the same-store sales calculation in the quarter after that store has been open for six complete consecutive quarters. In the fourth quarter, there were 82 Luby’s Cafeterias, 63 Fuddruckers Restaurants, 6 Combo locations, and 8 Cheeseburger in Paradise locations that met the definition of same-stores. |
(3) | Q1 2017, Q2 2017, Q3 2017, Q4 2017 and YTDQ4 2017 same-store sales reflect the year-over-year change in restaurant sales for the locations included in the same-store grouping for each of the comparable periods. |
• | Luby’s Cafeterias same-store sales decreased 4.5% in the fourth quarter. An 8.6% decrease in guest traffic was offset by a 4.1% increase in average spend per guest. Hurricane Harvey reduced Luby's same-store sales by approximately 3.9%. |
• | Fuddruckers Restaurants same-store sales decreased 3.6% in the fourth quarter. The 3.6% decrease was the result of a 7.6% decrease in guest traffic offset by a 4.0% increase in average spend per guest. Hurricane Harvey reduced Fuddruckers restaurant same-store sales by approximately 2.3%. |
• | Cheeseburger in Paradise same-store sales (representing eight Cheeseburger in Paradise locations) decreased 15.4% in the fourth quarter. |
• | Combo location same-store sales (representing all six Combo locations) declined 7.2% in the fourth quarter. |
Quarter Ended | Quarter Ended | |||||||||
Restaurant Brand | August 30, 2017 | % of Total | August 31, 2016 | % of Total | ||||||
(12 weeks) | (12 weeks) | (13 weeks) | (13 weeks) | |||||||
Luby’s Cafeterias | $ | 46,915 | 59.3 | % | $ | 54,253 | 59.1 | % | ||
Fuddruckers Restaurants | 22,794 | 28.8 | % | 26,218 | 28.6 | % | ||||
Combo locations | 4,739 | 6.0 | % | 5,512 | 6.0 | % | ||||
Cheeseburger in Paradise | 4,629 | 5.9 | % | 5,792 | 6.3 | % | ||||
Total Restaurant Sales | $ | 79,077 | 100.0 | % | $ | 91,775 | 100.0 | % |
• | Restaurant sales in the fourth quarter decreased to $79.1 million versus $91.8 million in the fourth quarter fiscal 2016. The decrease was due to one less operating week in the fourth quarter fiscal 2017 compared to the fourth quarter fiscal 2016, the impact of closed restaurants, and a 5.1% decline in same-store sales, |
• | Store level profit, defined as restaurant sales plus vending revenue less cost of food, payroll and related costs, other operating expenses, and occupancy costs, was $8.6 million, or 10.8% of restaurant sales, in the fourth quarter compared to $12.9 million, or 14.0% of restaurant sales, during the fourth quarter fiscal 2016. Hurricane Harvey reduced store level profit by approximately $1.5 million in the fourth quarter. The impact of the hurricane as well as lower underlying same-store sales, coupled with higher restaurant labor cost, higher restaurant services costs, and higher repairs and maintenance costs led to this decrease in profitability. Payroll and related costs were impacted by changes in workers' compensation liability estimates in both fourth quarter fiscal 2017 and fiscal 2016; these changes in estimates amounted to an approximate decrease of 0.8% of restaurant sales. Store level profit is a non-GAAP measure, and reconciliation to loss from continuing operations is presented after the financial statements. |
• | Culinary Contract Services revenues increased to $5.8 million with 25 operating locations at the end of the fourth quarter compared to $4.0 million with 24 operating locations at the end of fourth quarter fiscal 2016; the increase in sales was due to a change in the mix of locations whereby new higher sales volume locations replaced lower sales volume locations that ceased operations. Culinary profit was 17.5% of Culinary Contract Services sales in the fourth quarter and 12.3% in the fourth quarter fiscal 2016. |
• | Franchise revenue decreased to $1.6 million during the fourth quarter compared to $1.8 million during the fourth quarter fiscal 2016; the decrease was due in part to one less operating week and decreases in sales volumes at franchise locations. In the fourth quarter, a franchisee opened one location in Delaware that we previously operated as a company-owned location. We ended fiscal 2017 with a franchise network of 113 domestic and international locations; during fiscal 2017 eight franchise locations opened and a separate eight franchise locations ceased operations. |
• | Selling, general and administrative expenses decreased $1.8 million, or 17.4%, to $8.3 million compared to fiscal 2016. This decrease included reductions in salaries, benefits, and other compensation expense, lower outside professional service fees, lower corporate travel expense, and reduced investment in marketing and advertising. |
• | Loss from continuing operations was $4.1 million, or a loss of $0.14 per diluted share, in the fourth quarter compared to a loss of $7.8 million, or $0.27 per diluted share, in the fourth quarter fiscal 2016. Excluding special items, loss from continuing operations in the fourth quarter was $1.7 million, or $0.06 per diluted share, compared to income of $0.3 million, or $0.01 per diluted share, in the fourth quarter fiscal 2016. |
August 31, 2016 | Fiscal 2017 YTD Openings | Fiscal 2017 YTD Closings | August 30, 2017 | ||||||||
Luby’s Cafeterias(1) | 91 | — | (3 | ) | 88 | ||||||
Fuddruckers Restaurants(1) | 75 | 1 | (5 | ) | 71 | ||||||
Cheeseburger in Paradise | 8 | — | — | 8 | |||||||
Other restaurants(2) | 1 | — | (1 | ) | — | ||||||
Total | 175 | 1 | (9 | ) | 167 |
(1) | Includes 6 restaurants that are part of Combo locations. |
(2) | Other restaurants include one Bob Luby’s Seafood Grill which closed in fiscal 2017 |
Quarter Ended | Year Ended | ||||||||||||||
August 30, 2017 | August 31, 2016 | August 30, 2017 | August 31, 2016 | ||||||||||||
(12 weeks) | (13 weeks) | (52 weeks) | (53 weeks) | ||||||||||||
SALES: | |||||||||||||||
Restaurant sales | $ | 79,077 | $ | 91,775 | $ | 350,818 | $ | 378,111 | |||||||
Culinary contract services | 5,826 | 3,969 | 17,943 | 16,695 | |||||||||||
Franchise revenue | 1,556 | 1,839 | 6,723 | 7,250 | |||||||||||
Vending revenue | 130 | 146 | 547 | 583 | |||||||||||
TOTAL SALES | 86,589 | 97,729 | 376,031 | 402,639 | |||||||||||
COSTS AND EXPENSES: | |||||||||||||||
Cost of food | 22,361 | 25,723 | 98,714 | 106,980 | |||||||||||
Payroll and related costs | 28,511 | 32,953 | 125,997 | 132,960 | |||||||||||
Other operating expenses | 14,717 | 15,232 | 61,924 | 60,961 | |||||||||||
Occupancy costs | 5,067 | 5,132 | 21,787 | 22,374 | |||||||||||
Opening costs | 61 | 99 | 492 | 787 | |||||||||||
Cost of culinary contract services | 4,808 | 3,480 | 15,774 | 14,955 | |||||||||||
Cost of franchise operations | 355 | 397 | 1,733 | 1,877 | |||||||||||
Depreciation and amortization | 4,461 | 4,351 | 20,438 | 21,889 | |||||||||||
Selling, general and administrative expenses | 8,347 | 10,110 | 37,878 | 42,422 | |||||||||||
Provision for asset impairments and restaurant closings | 3,447 | 1,233 | 10,567 | 1,442 | |||||||||||
Net loss (gain) on disposition of property and equipment | (2,023 | ) | 110 | (1,804 | ) | (684 | ) | ||||||||
Total costs and expenses | 90,112 | 98,820 | 393,500 | 405,963 | |||||||||||
LOSS FROM OPERATIONS | (3,523 | ) | (1,091 | ) | (17,469 | ) | (3,324 | ) | |||||||
Interest income | 2 | 2 | 8 | 4 | |||||||||||
Interest expense | (544 | ) | (574 | ) | (2,443 | ) | (2,247 | ) | |||||||
Other income (expense), net | (142 | ) | 188 | (454 | ) | 186 | |||||||||
Loss before income taxes and discontinued operations | (4,207 | ) | (1,475 | ) | (20,358 | ) | (5,381 | ) | |||||||
Provision (benefit) for income taxes | (138 | ) | 6,314 | 2,438 | 4,875 | ||||||||||
Loss from continuing operations | (4,069 | ) | (7,789 | ) | (22,796 | ) | (10,256 | ) | |||||||
Loss from discontinued operations, net of income taxes | (32 | ) | (13 | ) | (466 | ) | (90 | ) | |||||||
NET LOSS | $ | (4,101 | ) | $ | (7,802 | ) | $ | (23,262 | ) | $ | (10,346 | ) | |||
Loss per share from continuing operations: | |||||||||||||||
Basic | $ | (0.14 | ) | $ | (0.27 | ) | $ | (0.77 | ) | $ | (0.35 | ) | |||
Assuming dilution | $ | (0.14 | ) | $ | (0.27 | ) | $ | (0.77 | ) | $ | (0.35 | ) | |||
Loss per share from discontinued operations: | |||||||||||||||
Basic | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.02 | ) | $ | (0.00 | ) | |||
Assuming dilution | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.02 | ) | $ | (0.00 | ) | |||
Net loss per share: | |||||||||||||||
Basic | $ | (0.14 | ) | $ | (0.27 | ) | $ | (0.79 | ) | $ | (0.35 | ) | |||
Assuming dilution | $ | (0.14 | ) | $ | (0.27 | ) | $ | (0.79 | ) | $ | (0.35 | ) | |||
Weighted average shares outstanding: | |||||||||||||||
Basic | 29,554 | 29,281 | 29,476 | 29,226 | |||||||||||
Assuming dilution | 29,554 | 29,281 | 29,476 | 29,226 |
Quarter Ended | Year Ended | ||||||||
August 30, 2017 | August 31, 2016 | August 30, 2017 | August 31, 2016 | ||||||
(12 weeks) | (13 weeks) | (52 weeks) | (53 weeks) | ||||||
Restaurant sales | 91.3 | % | 93.9 | % | 93.3 | % | 93.9 | % | |
Culinary contract services | 6.7 | % | 4.1 | % | 4.8 | % | 4.1 | % | |
Franchise revenue | 1.8 | % | 1.9 | % | 1.8 | % | 1.8 | % | |
Vending revenue | 0.2 | % | 0.1 | % | 0.1 | % | 0.1 | % | |
TOTAL SALES | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |
COSTS AND EXPENSES: | |||||||||
(As a percentage of restaurant sales) | |||||||||
Cost of food | 28.3 | % | 28.0 | % | 28.1 | % | 28.3 | % | |
Payroll and related costs | 36.1 | % | 35.9 | % | 35.9 | % | 35.2 | % | |
Other operating expenses | 18.6 | % | 16.6 | % | 17.7 | % | 16.1 | % | |
Occupancy costs | 6.4 | % | 5.6 | % | 6.2 | % | 5.9 | % | |
Vending revenue | (0.2 | )% | (0.2 | )% | (0.2 | )% | (0.2 | )% | |
Store level profit | 10.8 | % | 14.0 | % | 12.2 | % | 14.7 | % | |
(As a percentage of total sales) | |||||||||
Marketing and advertising expenses | 0.6 | % | 1.3 | % | 1.4 | % | 1.4 | % | |
General and administrative expenses | 9.0 | % | 9.0 | % | 8.7 | % | 9.1 | % | |
Selling, general and administrative expenses | 9.6 | % | 10.3 | % | 10.1 | % | 10.5 | % | |
LOSS FROM OPERATIONS | (4.1 | )% | (1.1 | )% | (4.6 | )% | (0.8 | )% |
August 30, 2017 | August 31, 2016 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 1,096 | $ | 1,339 | |||
Trade accounts and other receivables, net | 8,011 | 5,919 | |||||
Food and supply inventories | 4,453 | 4,596 | |||||
Prepaid expenses | 3,431 | 3,147 | |||||
Assets related to discontinued operations | — | 1 | |||||
Deferred income taxes | — | 540 | |||||
Total current assets | 16,991 | 15,542 | |||||
Property held for sale | 3,372 | 5,522 | |||||
Assets related to discontinued operations | 2,755 | 3,192 | |||||
Property and equipment, net | 172,814 | 193,218 | |||||
Intangible assets, net | 19,640 | 21,074 | |||||
Goodwill | 1,068 | 1,605 | |||||
Deferred income taxes | 7,254 | 8,738 | |||||
Other assets | 2,563 | 3,334 | |||||
Total assets | $ | 226,457 | $ | 252,225 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Current Liabilities: | |||||||
Accounts payable | $ | 15,937 | $ | 17,539 | |||
Liabilities related to discontinued operations | 367 | 412 | |||||
Current portion of credit facility debt | — | — | |||||
Accrued expenses and other liabilities | 28,076 | 23,752 | |||||
Total current liabilities | 44,380 | 41,703 | |||||
Credit facility debt, net | 30,698 | 37,000 | |||||
Liabilities related to discontinued operations | 16 | 17 | |||||
Other liabilities | 7,311 | 7,752 | |||||
Total liabilities | $ | 82,405 | $ | 86,472 | |||
Commitments and Contingencies | |||||||
SHAREHOLDERS’ EQUITY | |||||||
Common stock, $0.32 par value; 100,000,000 shares authorized; Shares issued were 29,624,083 and 29,440,041, respectively; Shares outstanding were 29,124,083 and 28,940,041, respectively | 9,480 | 9,421 | |||||
Paid-in capital | 31,850 | 30,348 | |||||
Retained earnings | 107,497 | 130,759 | |||||
Less cost of treasury stock, 500,000 shares | (4,775 | ) | (4,775 | ) | |||
Total shareholders’ equity | 144,052 | 165,753 | |||||
Total liabilities and shareholders’ equity | $ | 226,457 | $ | 252,225 |
Year Ended | |||||||
August 30, 2017 | August 31, 2016 | ||||||
(52 weeks) | (53 weeks) | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net loss | $ | (23,262 | ) | $ | (10,346 | ) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
Provision for asset impairments and net loss (gain) on property sales | 8,762 | 734 | |||||
Depreciation and amortization | 20,438 | 21,906 | |||||
Amortization of debt issuance cost | 348 | 313 | |||||
Share-based compensation expense | 1,561 | 1,477 | |||||
Excess tax deficit from share-based compensation | — | 119 | |||||
Deferred tax provision | 2,792 | 4,707 | |||||
Cash provided by operating activities before changes in operating assets and liabilities | 10,639 | 18,910 | |||||
Changes in operating assets and liabilities: | |||||||
Increase in trade accounts and other receivables | (2,092 | ) | (744 | ) | |||
Decrease (Increase) in food and supply inventories | 143 | (616 | ) | ||||
Decrease in prepaid expenses and other assets | 504 | 215 | |||||
Increase (decrease) in accounts payable, accrued expenses and other liabilities | 446 | (3,906 | ) | ||||
Net cash provided by operating activities | 9,640 | 13,859 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Proceeds from disposal of assets and property held for sale | 9,286 | 4,794 | |||||
Repayment of note receivable | — | 17 | |||||
Purchases of property and equipment | (12,502 | ) | (18,253 | ) | |||
Net cash used in investing activities | (3,216 | ) | (13,442 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Revolver borrowings | 107,800 | 106,000 | |||||
Revolver repayments | (140,400 | ) | (106,500 | ) | |||
Debt issuance costs | (652 | ) | (42 | ) | |||
Proceeds on term loan | 35,000 | — | |||||
Term loan repayments | (8,415 | ) | — | ||||
Excess tax deficit from share-based compensation | — | (119 | ) | ||||
Proceeds received on the exercise of employee stock options | — | 82 | |||||
Net cash used in financing activities | (6,667 | ) | (579 | ) | |||
Net decrease in cash and cash equivalents | (243 | ) | (162 | ) | |||
Cash and cash equivalents at beginning of period | 1,339 | 1,501 | |||||
Cash and cash equivalents at end of period | $ | 1,096 | $ | 1,339 | |||
Cash paid for: | |||||||
Income taxes | $ | 411 | $ | 357 | |||
Interest | 1,787 | 1,873 |
Quarter Ended | Year Ended | ||||||||||||||
August 30, 2017 | August 31, 2016 | August 30, 2017 | August 31, 2016 | ||||||||||||
(12 weeks) | (13 weeks) | (52 weeks) | (53 weeks) | ||||||||||||
(In thousands) | (In thousands) | ||||||||||||||
Store level profit | $ | 8,551 | $ | 12,881 | $ | 42,943 | $ | 55,419 | |||||||
Plus: | |||||||||||||||
Sales from culinary contract services | 5,826 | 3,969 | 17,943 | 16,695 | |||||||||||
Sales from franchise operations | 1,556 | 1,839 | 6,723 | 7,250 | |||||||||||
Less: | |||||||||||||||
Opening costs | 61 | 99 | 492 | 787 | |||||||||||
Cost of culinary contract services | 4,808 | 3,480 | 15,774 | 14,955 | |||||||||||
Cost of franchise operations | 355 | 397 | 1,733 | 1,877 | |||||||||||
Depreciation and amortization | 4,461 | 4,351 | 20,438 | 21,889 | |||||||||||
Selling, general and administrative expenses(a) | 8,347 | 10,110 | 37,878 | 42,422 | |||||||||||
Provision for asset impairments and restaurant closings | 3,447 | 1,233 | 10,567 | 1,442 | |||||||||||
Net loss (gain) on disposition of property and equipment | (2,023 | ) | 110 | (1,804 | ) | (684 | ) | ||||||||
Interest income | (2 | ) | (2 | ) | (8 | ) | (4 | ) | |||||||
Interest expense | 544 | 574 | 2,443 | 2,247 | |||||||||||
Other income (expense), net | 142 | (188 | ) | 454 | (186 | ) | |||||||||
Provision (benefit) for income taxes | (138 | ) | 6,314 | 2,438 | 4,875 | ||||||||||
Loss from continuing operations | $ | (4,069 | ) | $ | (7,789 | ) | $ | (22,796 | ) | $ | (10,256 | ) |
Q4 FY2017 | Q4 FY2016 | |||||||||||||||
Item | Amount ($000s) | Per Share ($) | Amount ($000s) | Per Share ($) | ||||||||||||
Loss from continuing operations | $ | (4,069 | ) | $ | (0.14 | ) | $ | (7,789 | ) | $ | (0.27 | ) | ||||
Provision for asset impairments and restaurant closings | 2,275 | 0.08 | 814 | 0.03 | ||||||||||||
Net loss (gain) on disposition of property and equipment | (1,335 | ) | (0.05 | ) | 73 | 0.00 | ||||||||||
Losses from closed stores(3) | 275 | 0.01 | 289 | 0.01 | ||||||||||||
Deferred tax asset valuation allowance | 1,172 | 0.04 | 6,905 | $ | 0.24 | |||||||||||
Income (loss) from continuing operations, before special items | $ | (1,682 | ) | $ | (0.06 | ) | $ | 292 | $ | 0.01 | ||||||
FY2017 | FY2016 | |||||||||||||||
Amount ($000s) | Per Share ($) | Amount ($000s) | Per Share ($) | |||||||||||||
Loss from continuing operations | $ | (22,796 | ) | $ | (0.77 | ) | $ | (10,256 | ) | $ | (0.35 | ) | ||||
Provision for asset impairments and restaurant closings | 6,974 | 0.24 | 952 | 0.03 | ||||||||||||
Net gain on disposition of property and equipment | (1,191 | ) | (0.04 | ) | (451 | ) | (0.02 | ) | ||||||||
Losses from closed stores(3) | 1,371 | 0.05 | 1,216 | 0.05 | ||||||||||||
Deferred tax asset valuation allowance | 9,519 | 0.32 | 6,905 | $ | 0.24 | |||||||||||
Loss from continuing operations, before special items | $ | (6,123 | ) | $ | (0.21 | ) | $ | (1,634 | ) | $ | (0.06 | ) |
(1) | We use income (loss) from continuing operations, before special items, in analyzing results, which is a non-GAAP financial measure. This information should be considered in addition to the results presented in accordance with GAAP, and should not be considered a substitute for the GAAP results. Luby’s has reconciled loss from continuing operations, before special items, to loss from continuing operations, the nearest GAAP measure in context. |
(2) | Per share amounts are per diluted share after tax. |
(3) | Losses from closed stores includes the store level profit (loss) less depreciation for stores that closed in fiscal 2017 (nine restaurants) and subsequent to fiscal 2017 year-end through November 7, 2017 (three restaurants). |
($ thousands) | Quarter Ended | Year Ended | |||||||||||||
August 30, 2017 | August 31, 2016 | August 30, 2017 | August 31, 2016 | ||||||||||||
(12 weeks) | (13 weeks) | (52 weeks) | (53 weeks) | ||||||||||||
Loss from continuing operations | $ | (4,069 | ) | $ | (7,789 | ) | $ | (22,796 | ) | $ | (10,256 | ) | |||
Depreciation and amortization | 4,461 | 4,351 | 20,438 | 21,889 | |||||||||||
Provision (benefit) for income taxes | (138 | ) | 6,314 | 2,438 | 4,875 | ||||||||||
Interest expense | 544 | 574 | 2,443 | 2,247 | |||||||||||
Interest income | (2 | ) | (2 | ) | (8 | ) | (4 | ) | |||||||
Net loss (gain) on disposition of property and equipment | (2,023 | ) | 110 | (1,804 | ) | (684 | ) | ||||||||
Provision for asset impairments and restaurant closings | 3,447 | 1,233 | 10,567 | 1,442 | |||||||||||
Non-cash compensation expense | 730 | 775 | 1,604 | 2,369 | |||||||||||
Franchise taxes | 42 | 42 | 187 | 180 | |||||||||||
Decrease in fair value of derivative | 45 | — | 266 | — | |||||||||||
Adjusted EBITDA | $ | 3,037 | $ | 5,608 | $ | 13,335 | $ | 22,058 |
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