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): March 23, 2015
Luby's,
Inc.
(Exact name of registrant as specified in its charter)
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)
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)) |
Item 2.02. | Results of Operations and Financial Condition. |
On March 23, 2015, the Company released a press release announcing the results of the second quarter ended February 11, 2015. A copy of that release is attached as Exhibit 99.1. The information and exhibit furnished under Item 2.02 of this Current Report on Form 8-K shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section.
Item 9.01. | Financial Statements and Exhibits. |
Exhibit 99.1 | Luby’s Press Release dated March 23, 2015 |
SIGNATURES
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.
LUBY'S, INC. | |
(Registrant) |
Date: | March 23, 2015 | By: | /s/Christopher J. Pappas | ||
Christopher J. Pappas | |||||
President and Chief Executive Officer | |||||
EXHIBIT INDEX
Exhibit No. | Description |
99.1 | Luby’s Press Release dated March 23, 2015 |
Luby's Reports Second Quarter Fiscal 2015 Results
HOUSTON, March 23, 2015 /PRNewswire/ -- Luby's, Inc. (NYSE: LUB) ("Luby's") today announced unaudited financial results for its twelve-week second quarter fiscal 2015, which ended on February 11, 2015.
Total revenues for the second quarter fiscal 2015 increased $2.4 million to $91.0 million. Loss from continuing operations before special items was $0.04 per diluted share compared to income from continuing operations before special items of $0.01 per diluted share in the second quarter fiscal 2014.
Chris Pappas, President and CEO, commented, "We are pleased to report year-over-year total revenue growth this quarter in our Company-owned Restaurants and Franchising business segments. We also achieved sales increases on a same-store restaurant basis at our core Luby's Cafeterias and Fuddruckers restaurant brands.
"Our five Combo locations (consisting of a side-by-side Luby's Cafeteria and Fuddruckers at one property location) contributed 5.8% to our total restaurant sales in the second quarter fiscal 2015. Our first Combo location, which has operated for more than two years, achieved 2.4% sales growth. These Combo locations are performing well since their introduction and represent a strategic growth driver for our company.
"In the second quarter fiscal 2015, we opened a Fuddruckers restaurant in Newark, Delaware which we converted from a Cheeseburger in Paradise restaurant. Additionally, we announced a new franchise partnership to open a Fuddruckers restaurant in Maine later this year. Early in our third quarter fiscal 2015, we were also excited to have debuted our first Combo location outside of Texas, representing our sixth Combo location to date. This newest Combo location opened with much fanfare in Jackson, Mississippi and has broken all sales records so far for a new Combo opening."
Second Quarter Fiscal 2015 Highlights
Same-Store Sales Year-Over-Year Comparison
| Q1 2015 | Q2 2015 | YTD 2015 |
Luby's Cafeterias | 0.2% | 3.1% | 1.7% |
Fuddruckers Restaurants | 0.2% | 2.1% | 1.1% |
Combo Locations(1) | 2.4% | 2.4% | 2.4% |
Cheeseburger in Paradise | (6.7)% | (4.8%) | (5.8%) |
Total same-store sales | (0.1)% | 2.5% | 1.2% |
|
|
(1) | Combo locations consist of a side-by-side Luby's Cafeteria and Fuddruckers Restaurant at one property location. |
(2) | Note: Luby's includes a restaurant's sales results into the same-store sales calculation in the quarter after a store has been open for six complete consecutive quarters. The first Combo location met the definition of same-stores in the third quarter fiscal 2014; the Cheeseburger in Paradise locations met the definition of same-stores in the first quarter fiscal 2015. In the second quarter fiscal 2015, there were 89 Luby's Cafeterias, 57 Fuddruckers Restaurants, 1 Combo location, and 8 Cheeseburger in Paradise locations that met the definition of same-stores. |
Second Quarter Fiscal 2015 Results:
Restaurant Brand | Q2 2015 ($000s) | Q2 2014 ($000s) | Change ($000s) | Change (%) |
Luby's Cafeterias | $ 54,574 | $ 54,291 | $ 283 | 0.5% |
Fuddruckers Restaurants | 22,820 | 20,575 | 2,245 | 10.9% |
Combo Locations | 4,937 | 1,519 | 3,418 | 225.1% |
Cheeseburger in Paradise | 3,155 | 6,266 | (3,111) | (49.7%) |
Koo Koo Roo | — | 279 | (279) | (100%) |
Total Restaurant Sales | $ 85,486 | $ 82,930 | $ 2,556 | 3.1% |
Reconciliation of loss from continuing operations to income/(loss) from continuing operations, before special items (1,2): | ||||||||||||||||
|
| Q2 FY2015 |
| Q2 FY2014 |
| |||||||||||
Item |
| Amount ($000s) |
| Per Share ($) |
| Amount ($000s) |
| Per Share ($) |
| |||||||
Loss from continuing operations |
| $ | (1,229) |
|
| $ | (0.04) |
|
| $ | (1,581) |
|
| $ | (0.05) |
|
Asset charges; loss (gain) on disposal of assets |
|
| (765) |
|
|
| (0.03) |
|
|
| 888 |
|
|
| 0.03 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from Cheeseburger in Paradise (3) |
|
| 510 |
|
|
| 0.02 |
|
|
| 575 |
|
|
| 0.02 |
|
Cheeseburger in Paradise locations closed for conversion (4) |
|
| 284 |
|
|
| 0.01 |
|
|
| 404 |
|
|
| 0.01 |
|
Income (Loss) from Continuing Operations, before special items |
| $ | (1,200) |
|
| $ | (0.04) |
|
| $ | 286 |
|
| $ | 0.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Luby's uses income (loss) from continuing operations, before special items, in analyzing its 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 income from continuing operations, before special items, to income from continuing operations, the nearest GAAP measure in context. |
(2) | Per share amounts are per diluted share after tax. |
(3) | Loss from Cheeseburger in Paradise is after allocation of depreciation, direct G&A and interest expense, net of an estimated tax benefit. |
(4) | These costs include rent, property taxes, utilities and certain restaurant management labor costs associated with Cheeseburger in Paradise locations closed for conversion. These costs are included in opening costs and payroll and related costs. |
|
|
Second Quarter Fiscal 2015 Operating Expense Review
Cost of food as a percentage of restaurant sales increased to 29.8% in the second quarter fiscal 2015 compared to 29.0% in the second quarter fiscal 2014. The cost of food as a percentage of sales increased primarily from higher food commodity costs which impacted each of our restaurant brands. Food commodity prices for our basket of food commodity purchases were higher by approximately 7.0% at our Luby's Cafeterias and approximately 12.0% at our Fuddruckers restaurants.
In the second quarter fiscal 2015, payroll and related costs as a percentage of restaurant sales decreased to 34.9% compared to 35.3% in the second quarter fiscal 2014. The decrease reflects our ability to leverage hourly and management costs on higher sales volumes. This decrease also reflects comparison to the second quarter fiscal 2014 when increased management labor was deployed during the first eight weeks of operations at newly opened stores. These decreases were partially offset by additional investments in restaurant labor in order to enhance guest service and motivate increased guest traffic.
Other operating expenses include restaurant-related expenses for utilities, repairs and maintenance, advertising, insurance, supplies, and services. As a percentage of restaurant sales, other operating expenses were 18.6% in the second quarter fiscal 2015 consistent with the second quarter fiscal 2014. The decrease was attributable to lower utilities expenses, insurance costs, and restaurant services costs as percentage of restaurant sales. These expenses were offset by higher marketing and advertising expenses and higher repairs and maintenance costs as percentage of restaurant sales.
Occupancy costs include property lease expense, property taxes, and common area maintenance charges. Occupancy costs were $4.8 million in the second quarter fiscal 2015, consistent with occupancy costs of $4.8 million in the second quarter fiscal 2014.
Opening costs include labor, supplies, occupancy, and other costs necessary to support the restaurant through its opening period. Opening costs were $0.7 million in the second quarter fiscal 2015, consistent with the second quarter fiscal 2014. Included in the opening costs in the second quarter fiscal 2015 were the carrying costs of approximately $0.3 million associated with six locations that were previously operated as Cheeseburger in Paradise restaurants and are in the process of conversion to Fuddruckers restaurants.
Depreciation and amortization expense increased by $0.3 million to $4.8 million in the second quarter fiscal 2015. This increase was due primarily to an increase in the depreciable asset base from recent new store construction and restaurant conversion activity.
General and administrative expenses were $8.1 million in the second quarter fiscal 2015 consistent with the second quarter fiscal 2014. As a percentage of total revenues, general and administrative expenses were 8.9% in the second quarter fiscal 2015, a decrease from 9.2% in the second quarter fiscal 2014.
Balance Sheet and Capital Expenditures
We ended the second quarter fiscal 2015 with an outstanding debt balance of $54.5 million. During the first two quarters of fiscal 2015, our capital expenditures totaled $11.0 million. At the end of the second quarter fiscal 2015, we had $1.6 million in cash and $171.2 million in shareholders' equity.
Fiscal Year to Date:
Restaurant Counts:
| FY2015
|
| FY15 YTD
|
| FY15 YTD
|
| FY2015 Q2 End | |||||||||||
Luby's Cafeterias(1) |
| 94 |
|
|
|
|
| 94 | ||||||||||
Fuddruckers(1) |
| 71 |
| 3 |
| (3) |
| 71 | ||||||||||
Cheeseburger in Paradise |
| 8 |
|
|
|
|
| 8 | ||||||||||
Other restaurants(2) |
| 1 |
|
|
|
|
| 1 | ||||||||||
Total |
| 174 |
| 3 |
| (3) |
| 174 |
|
|
(1) | Includes 5 restaurants that are part of "Combo" locations |
(2) | Other restaurants include one Bob Luby's Seafood |
Fiscal 2015 Outlook
"In fiscal 2014, we exceeded our new restaurant development expectations by opening twelve new restaurant locations. In fiscal 2015, we are focused on improving store level profit at these new restaurants while also enhancing profitability at legacy locations. While we expect commodity cost pressures to increase in certain categories, we continue to implement and manage store-level initiatives to improve sales and profitability, including modest price adjustments on selected menu items. Our expectation in fiscal 2015 is to realize same-store sales growth at our core Luby's Cafeterias and Fuddruckers brands and higher store level profit, with lower general and administrative expenses, offset by higher depreciation and interest expense, resulting in improved financial results over the prior year. We plan to reduce our capital expenditures in fiscal 2015 to between $20 and $22 million. From our franchise pipeline, we estimate seven new Fuddruckers restaurant location openings in fiscal 2015, to be located in both domestic and international markets, including Italy, Poland, Panama, and Chile," concluded Pappas.
Conference Call
Luby's will host a conference call today at 10:00 a.m. Central Time to discuss further its second quarter fiscal 2015 results. To access the call live, dial (412) 902-0030 and use the access code 13603330# at least 10 minutes prior to the start time, or listen live over the Internet by visiting the events page in the investor relations section of www.lubysinc.com. For those who cannot listen to the live call, a telephonic replay will be available through March 30, 2015 and may be accessed by calling (201) 612-7415 and using the access code 13603330#. Also, an archive of the webcast will be available after the call for a period of 90 days on the "Investors" section of the Company's website.
About Luby's
Luby's, Inc. (NYSE: LUB) operates restaurants under the brands Luby's Cafeteria, Fuddruckers and Cheeseburger in Paradise and provides food service management through its Culinary Contract Services business segment. The company-owned restaurants include 95 Luby's Cafeterias, 72 Fuddruckers restaurants, 8 Cheeseburger in Paradise full service restaurants and bars and one Bob Luby's Seafood Grill. Its 95 Luby's Cafeterias are located primarily in Texas. In addition to the 72 company-operated Fuddruckers locations, Luby's is the franchisor for 107 Fuddruckers franchise locations across the United States (including Puerto Rico), Canada, Mexico, Italy, the Dominican Republic, Panama, and Chile. Additionally, a licensee operates 31 restaurants with the exclusive right to use the Fuddruckers proprietary marks, trade dress, and system in certain countries in the Middle East. The Company does not receive revenue or royalties from these restaurants. Luby's Culinary Contract Services provides food service management to 24 sites consisting of healthcare, higher education and corporate dining locations.
This press release contains statements that are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release, other than statements of historical fact, are "forward-looking statements" for purposes of these provisions, including the statements under the caption "Outlook" and any other statements regarding scheduled openings of units, scheduled closures of units, sales of assets, expected proceeds from the sale of assets, expected levels of capital expenditures, effects of food commodity costs, anticipated financial results in future periods and expectations of industry conditions.
Luby's cautions readers that various factors could cause its actual financial and operational results to differ materially from those indicated by forward-looking statements made from time-to-time in news releases, reports, proxy statements, registration statements, and other written communications, as well as oral statements made from time to time by representatives of Luby's. The following factors, as well as any other cautionary language included in this press release, provide examples of risks, uncertainties and events that may cause Luby's actual results to differ materially from the expectations Luby's describes in such forward-looking statements: general business and economic conditions; the impact of competition; our operating initiatives; fluctuations in the costs of commodities, including beef, poultry, seafood, dairy, cheese and produce; increases in utility costs, including the costs of natural gas and other energy supplies; changes in the availability and cost of labor; the seasonality of Luby's business; changes in governmental regulations, including changes in minimum wages; the effects of inflation; the availability of credit; unfavorable publicity relating to operations, including publicity concerning food quality, illness or other health concerns or labor relations; the continued service of key management personnel; and other risks and uncertainties disclosed in Luby's annual reports on Form 10-K and quarterly reports on Form 10-Q.
Luby's, Inc. Consolidated Statements of Operations (unaudited) (In thousands, except per share data) | ||||||||||||||||
| ||||||||||||||||
|
| Quarter Ended |
|
| Two Quarters Ended |
| ||||||||||
|
| February 11,
|
|
| February 12,
|
|
| February 11,
|
|
| February 12,
|
| ||||
|
| (12 weeks) |
|
| (12 weeks) |
|
| (24 weeks) |
|
| (24 weeks) |
| ||||
SALES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restaurant sales |
| $ | 85,486 |
|
| $ | 82,930 |
|
| $ | 166,043 |
|
| $ | 162,881 |
|
Culinary contract services |
|
| 3,771 |
|
|
| 3,979 |
|
|
| 8,369 |
|
|
| 8,249 |
|
Franchise revenue |
|
| 1,605 |
|
|
| 1,545 |
|
|
| 3,186 |
|
|
| 3,060 |
|
Vending revenue |
|
| 120 |
|
|
| 115 |
|
|
| 244 |
|
|
| 227 |
|
TOTAL SALES |
|
| 90,982 |
|
|
| 88,569 |
|
|
| 177,842 |
|
|
| 174,417 |
|
COSTS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of food |
|
| 25,471 |
|
|
| 24,042 |
|
|
| 48,964 |
|
|
| 46,911 |
|
Payroll and related costs |
|
| 29,837 |
|
|
| 29,248 |
|
|
| 59,156 |
|
|
| 57,413 |
|
Other operating expenses |
|
| 15,879 |
|
|
| 15,401 |
|
|
| 31,703 |
|
|
| 30,544 |
|
Occupancy costs |
|
| 4,780 |
|
|
| 4,840 |
|
|
| 9,408 |
|
|
| 9,529 |
|
Opening costs |
|
| 683 |
|
|
| 682 |
|
|
| 1,608 |
|
|
| 1,031 |
|
Cost of culinary contract services |
|
| 3,331 |
|
|
| 3,496 |
|
|
| 7,282 |
|
|
| 7,169 |
|
Depreciation and amortization |
|
| 4,772 |
|
|
| 4,473 |
|
|
| 9,830 |
|
|
| 8,792 |
|
General and administrative expenses |
|
| 8,074 |
|
|
| 8,118 |
|
|
| 15,777 |
|
|
| 16,184 |
|
Provision for asset impairments, net |
|
| 218 |
|
|
| 1,329 |
|
|
| 218 |
|
|
| 1,539 |
|
Net loss (gain) on disposition of property and equipment |
|
| (1,377) |
|
|
| 16 |
|
|
| (1,087) |
|
|
| 67 |
|
Total costs and expenses |
|
| 91,668 |
|
|
| 91,645 |
|
|
| 182,859 |
|
|
| 179,179 |
|
LOSS FROM OPERATIONS |
|
| (686) |
|
|
| (3,076) |
|
|
| (5,017) |
|
|
| (4,762) |
|
Interest income |
|
| 1 |
|
|
| 1 |
|
|
| 2 |
|
|
| 3 |
|
Interest expense |
|
| (568) |
|
|
| (292) |
|
|
| (1,024) |
|
|
| (545) |
|
Other income, net |
|
| 86 |
|
|
| 260 |
|
|
| 273 |
|
|
| 556 |
|
Loss before income taxes and discontinued operations |
|
| (1,167) |
|
|
| (3,107) |
|
|
| (5,766) |
|
|
| (4,748) |
|
Provision (benefit) for income taxes |
|
| 62 |
|
|
| (1,526) |
|
|
| (1,721) |
|
|
| (2,474) |
|
Loss from continuing operations |
|
| (1,229) |
|
|
| (1,581) |
|
|
| (4,045) |
|
|
| (2,274) |
|
Loss from discontinued operations, net of income taxes |
|
| (130) |
|
|
| (603) |
|
|
| (333) |
|
|
| (1,455) |
|
NET LOSS |
| $ | (1,359) |
|
| $ | (2,184) |
|
| $ | (4,378) |
|
| $ | (3,729) |
|
Loss per share from continuing operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
| $ | (0.04) |
|
| $ | (0.06) |
|
| $ | (0.14) |
|
| $ | (0.08) |
|
Assuming dilution |
|
| (0.04) |
|
|
| (0.06) |
|
|
| (0.14) |
|
|
| (0.08) |
|
Loss per share from discontinued operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
| $ | (0.01) |
|
| $ | (0.02) |
|
| $ | (0.01) |
|
| $ | (0.05) |
|
Assuming dilution |
|
| (0.01) |
|
|
| (0.02) |
|
|
| (0.01) |
|
|
| (0.05) |
|
Loss income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
| $ | (0.05) |
|
| $ | (0.08) |
|
| $ | (0.15) |
|
| $ | (0.13) |
|
Assuming dilution |
|
| (0.05) |
|
|
| (0.08) |
|
|
| (0.15) |
|
|
| (0.13) |
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
| 28,921 |
|
|
| 28,775 |
|
|
| 28,906 |
|
|
| 28,770 |
|
Assuming dilution |
|
| 28,921 |
|
|
| 28,775 |
|
|
| 28,906 |
|
|
| 28,770 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of these Consolidated Financial Statements.
The following table contains information derived from the Company's Consolidated Statements of Operations expressed as a percentage of sales. Percentages may not add due to rounding.
|
| Quarter Ended |
| Two Quarters Ended |
| ||||||||
|
| February 11, |
| February 12, |
| February 11, |
| February 12, |
| ||||
|
| 2015 |
| 2014 |
| 2015 |
| 2014 |
| ||||
|
| (12 weeks) |
| (12 weeks) |
| (24 weeks) |
| (24 weeks) |
| ||||
|
|
|
| ||||||||||
Restaurant sales |
|
| 94.0 | % |
| 93.6 | % |
| 93.4 | % |
| 93.4 | % |
Culinary contract services |
|
| 4.1 | % |
| 4.5 | % |
| 4.7 | % |
| 4.7 | % |
Franchise revenue |
|
| 1.8 | % |
| 1.7 | % |
| 1.8 | % |
| 1.8 | % |
Vending revenue |
|
| 0.1 | % |
| 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 |
|
| 29.8 | % |
| 29.0 | % |
| 29.5 | % |
| 28.8 | % |
Payroll and related costs |
|
| 34.9 | % |
| 35.3 | % |
| 35.6 | % |
| 35.2 | % |
Other operating expenses |
|
| 18.6 | % |
| 18.6 | % |
| 19.1 | % |
| 18.8 | % |
Occupancy |
|
| 5.6 | % |
| 5.8 | % |
| 5.7 | % |
| 5.9 | % |
Store level profit |
|
| 11.1 | % |
| 11.3 | % |
| 10.1 | % |
| 11.3 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(As a percentage of total sales) |
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative expenses |
|
| 8.9 | % |
| 9.2 | % |
| 8.9 | % |
| 9.3 | % |
LOSS FROM OPERATIONS |
|
| (0.8)% |
|
| (3.5)% |
|
| (2.8)% |
|
| (2.7)% |
|
|
Luby's, Inc. Consolidated Balance Sheets (In thousands, except share data) | ||||||||
|
| February 11, 2015 |
|
| August 27, 2014 |
| ||
|
|
|
| |||||
|
| (Unaudited) |
|
|
|
|
| |
ASSETS |
|
|
|
|
|
|
|
|
Current Assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
| $ | 1,621 |
|
| $ | 2,788 |
|
Trade accounts and other receivables, net |
|
| 5,317 |
|
|
| 4,112 |
|
Food and supply inventories |
|
| 5,151 |
|
|
| 5,556 |
|
Prepaid expenses |
|
| 3,194 |
|
|
| 2,815 |
|
Assets related to discontinued operations |
|
| 36 |
|
|
| 52 |
|
Deferred income taxes |
|
| 589 |
|
|
| 587 |
|
Total current assets |
|
| 15,908 |
|
|
| 15,910 |
|
Property held for sale |
|
| 2,702 |
|
|
| 991 |
|
Assets related to discontinued operations |
|
| 4,820 |
|
|
| 4,204 |
|
Property and equipment, net |
|
| 210,411 |
|
|
| 213,492 |
|
Intangible assets, net |
|
| 23,347 |
|
|
| 24,014 |
|
Goodwill |
|
| 1,643 |
|
|
| 1,681 |
|
Deferred income taxes |
|
| 13,419 |
|
|
| 11,294 |
|
Other assets |
|
| 3,699 |
|
|
| 3,849 |
|
Total assets |
| $ | 275,949 |
|
| $ | 275,435 |
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
Current Liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
| $ | 18,861 |
|
| $ | 26,269 |
|
Liabilities related to discontinued operations |
|
| 433 |
|
|
| 590 |
|
Accrued expenses and other liabilities |
|
| 22,976 |
|
|
| 23,107 |
|
Total current liabilities |
|
| 42,270 |
|
|
| 49,966 |
|
Credit facility debt |
|
| 54,500 |
|
|
| 42,000 |
|
Liabilities related to discontinued operations |
|
| 72 |
|
|
| 278 |
|
Other liabilities |
|
| 7,874 |
|
|
| 8,167 |
|
Total liabilities |
|
| 104,716 |
|
|
| 100,411 |
|
Commitments and Contingencies |
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
Common stock, $0.32 par value; 100,000,000 shares authorized; shares issued were 29,050,796 and 28,949,523, respectively; shares outstanding were 28,550,796 and 28,449,523, respectively |
|
| 9,296 |
|
|
| 9,264 |
|
Paid-in capital |
|
| 27,911 |
|
|
| 27,356 |
|
Retained earnings |
|
| 138,801 |
|
|
| 143,179 |
|
Less cost of treasury stock, 500,000 shares |
|
| (4,775) |
|
|
| (4,775) |
|
Total shareholders' equity |
|
| 171,233 |
|
|
| 175,024 |
|
Total liabilities and shareholders' equity |
| $ | 275,949 |
|
| $ | 275,435 |
|
|
|
The accompanying notes are an integral part of these Consolidated Financial Statements.
Luby's, Inc. Consolidated Statements of Cash Flows (unaudited) (In thousands)
| ||||||||
|
| Two Quarters Ended |
| |||||
|
| February 11, |
|
| February 12, |
| ||
|
| 2015 |
|
| 2014 |
| ||
|
| (24 weeks) |
|
| (24 weeks) |
| ||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
|
Net loss |
| $ | (4,378) |
|
| $ | (3,729) |
|
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Provision for asset impairments, net of gains/losses on property sales |
|
| (869) |
|
|
| 2,362 |
|
Depreciation and amortization |
|
| 9,860 |
|
|
| 8,916 |
|
Amortization of debt issuance cost |
|
| 76 |
|
|
| 52 |
|
Non-cash compensation expense |
|
| 422 |
|
|
| 163 |
|
Share-based compensation expense |
|
| 165 |
|
|
| 325 |
|
Deferred tax benefit |
|
| (2,128) |
|
|
| (3,075) |
|
Cash provided by operating activities before changes in operating assets and liabilities |
|
| 3,148 |
|
|
| 5,014 |
|
Changes in operating assets and liabilities, net of business acquisition: |
|
|
|
|
|
|
|
|
Decrease (increase) in trade accounts and other receivables |
|
| (1,205) |
|
|
| 458 |
|
Decrease (increase) in food and supply inventories |
|
| 405 |
|
|
| (299) |
|
Decrease (increase) in prepaid expenses and other assets |
|
| (221) |
|
|
| 1,131 |
|
Decrease in accounts payable, accrued expenses and other liabilities |
|
| (7,801) |
|
|
| (5,464) |
|
Net cash provided by (used in) operating activities |
|
| (5,674) |
|
|
| 840 |
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
|
Proceeds from disposal of assets and property held for sale |
|
| 3,060 |
|
|
| 567 |
|
Purchases of property and equipment |
|
| (10,988) |
|
|
| (19,082) |
|
Decrease in note receivable |
|
| — |
|
|
| 23 |
|
Net cash used in investing activities |
|
| (7,928) |
|
|
| (18,492) |
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
Credit facility borrowings |
|
| 58,800 |
|
|
| 57,300 |
|
Credit facility repayments |
|
| (46,300) |
|
|
| (39,500) |
|
Proceeds from exercise of stock options |
|
| 3 |
|
|
| 9 |
|
Debt issuance costs |
|
| (68) |
|
|
| — |
|
Net cash provided by financing activities |
|
| 12,435 |
|
|
| 17,809 |
|
Net (decrease) increase cash and cash equivalents |
|
| (1,167) |
|
|
| 157 |
|
Cash and cash equivalents at beginning of period |
|
| 2,788 |
|
|
| 1,528 |
|
Cash and cash equivalents at end of period |
| $ | 1,621 |
|
| $ | 1,685 |
|
Cash paid for: |
|
|
|
|
|
|
|
|
Income taxes |
| $ | — |
|
| $ | — |
|
Interest |
|
| 969 |
|
|
| 470 |
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of these Consolidated Financial Statements.
Although store level profit, defined as restaurant sales less cost of food, payroll and related costs, operating expenses, and occupancy costs is a non-GAAP measure, we believe its presentation is useful because it explicitly shows the results of our most significant reportable segment. The following table reconciles between store level profit, a non-GAAP measure to income from continuing operations, a GAAP measure:
|
|
|
|
|
| |
| Quarter Ended | Two Quarters Ended |
| |||
| February 11,
| February 12,
| February 11,
| February 12,
|
| |
| (12 weeks) | (12 weeks) | (24 weeks) | (24 weeks) |
| |
| (In thousands) |
| ||||
|
|
|
|
|
| |
Store level profit | $ 9,519 | $ 9,399 | $ 16,812 | $ 18,484 |
| |
|
|
|
|
|
|
|
Plus: |
|
|
|
|
| |
Sales from vending revenue | 120 | 115 | 244 | 227 |
| |
Sales from culinary contract services | 3,771 | 3,979 | 8,369 | 8,249 |
| |
Sales from franchise revenue | 1,605 | 1,545 | 3,186 | 3,060 |
| |
|
|
|
|
|
| |
Less: |
|
|
|
|
| |
Opening costs | 683 | 682 | 1,608 | 1,031 |
| |
Cost of culinary contract services | 3,331 | 3,496 | 7,282 | 7,169 |
| |
Depreciation and amortization | 4,772 | 4,473 | 9,830 | 8,792 |
| |
General and administrative expenses | 8,074 | 8,118 | 15,777 | 16,184 |
| |
Provision for asset impairments, net | 218 | 1,329 | 218 | 1,539 |
| |
Net loss (gain) on disposition of property and equipment | (1,377) | 16 | (1,087) | 67 |
| |
Interest income | (1) | (1) | (2) | (3) |
| |
Interest expense | 568 | 292 | 1,024 | 545 |
| |
Other income, net | (86) | (260) | (273) | (556) |
| |
Provision (benefit) for income taxes | 62 | (1,526) | (1,721) | (2,474) |
| |
|
|
|
|
|
| |
Loss from continuing operations | $ (1,229) | $ (1,581) | $ (4,045) | $ (2,274) |
| |
|
|
|
|
|
| |
|
|
|
|
|
|
|
For additional information contact:
Dennard-Lascar Associates
713-529-6600
Rick Black / Ken Dennard
Investor Relations