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): January 21, 2016
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 January 21, 2016, the Company released a press release announcing the results of the first quarter ended December 16, 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 January 21, 2016 |
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: | January 21, 2016 | 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 January 21, 2016 |
Luby's Reports First Quarter Fiscal 2016 Results
HOUSTON, Jan. 21, 2016 /PRNewswire/ -- Luby's, Inc. (NYSE: LUB) ("Luby's") today announced unaudited financial results for its sixteen-week first quarter fiscal 2016, which ended on December 16, 2015. As announced in the company's fourth quarter fiscal 2015 earnings press release, Luby's has changed the number of reporting weeks included in the first fiscal quarter from 12 weeks to 16 weeks. This change is in part to minimize the Thanksgiving calendar shift by extending the first fiscal quarter until after Thanksgiving. The company now reports 16 weeks in its first fiscal quarter, and the remaining three quarters will typically include 12 weeks. Comparisons in this press release for the first quarter fiscal year 2016 are referred to as "first quarter."
First Quarter Highlights
Chris Pappas, President and CEO, commented, "In the first quarter, same store-sales growth and lower expenses increased our store-level profit margin and improved earnings year over year. Our team continues to execute on our strategy to enhance store level performance across all of our brands through a defined process of investing, coaching, training, and building our leadership throughout the organization. We are focused on driving value through achieving operational excellence and efficient cost management to grow profitability and enhance shareholder value."
| |||
Same-Store Sales Year-Over-Year Comparison | |||
| |||
| Q1 2016(3) | Q4 2015 | Fiscal 2015 |
Luby's Cafeterias | 1.2% | 0.2% | 0.6% |
Fuddruckers Restaurants | 1.3% | 1.7% | 1.1% |
Combo Locations (1) (Represents two locations) | (1.3%) | (6.4%) | (1.8%) |
Cheeseburger in Paradise | 5.5% | 2.8% | (2.9%) |
Total same-store sales (2) | 1.4% | 0.7% | 0.5% |
(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. In the first quarter, there were 88 Luby's Cafeterias, 59 Fuddruckers Restaurants, 2 Combo locations, and 8 Cheeseburger in Paradise locations that met the definition of same-stores. |
(3) | Q1 2016 same-store sales reflects the change in restaurant sales for the locations included in the same-store grouping for the 16-week first quarter relative to the comparable 16-week period in fiscal 2015. |
First Quarter Restaurant Sales: | |||||
($ millions) | |||||
Restaurant Brand | Q1 2016 | Q1 2015 | Q1 2015 Comp Q1* | Change Comp Q1* | Change (%) Comp Q1* |
| (16 weeks) | (12 weeks) | (16 weeks) | (16 weeks) | (16 weeks) |
Luby's Cafeterias | $ 70,905 | $ 50,548 | $ 71,111 | $ (206) | (0.3%) |
Fuddruckers Restaurants | 30,880 | 21,452 | 28,782 | 2,098 | 7.3% |
Combo Locations | 7,020 | 5,057 | 6,847 | 173 | 2.5% |
Cheeseburger in Paradise | 4,741 | 3,500 | 4,493 | 248 | 5.5% |
Total Restaurant Sales | $ 113,546 | $ 80,557 | $ 111,233 | $ 2,313 | 2.1% |
Note: FY2016 Q1 includes high sales volume around Thanksgiving and Christmas holidays. FY2015 Q1 ended the day prior to Thanksgiving | |
* "Comp Q1" is the 16 week period in fiscal 2015 that is comparable to the 16 week period in fiscal 2016 |
Reconciliation of loss from continuing operations to loss from continuing operations, before special items (1,2): | ||||||||||||||||
| ||||||||||||||||
|
| Q1 FY2016 |
|
| Q1 FY2015 |
| ||||||||||
Item |
| Amount
|
|
| Per Share
|
|
| Amount
|
|
| Per Share
|
| ||||
Loss from continuing operations |
| $ | (1,739) |
|
|
| (0.06) |
|
|
| (2,880) |
|
|
| (0.10) |
|
Loss (gain) on asset disposals and impairments |
|
| (184) |
|
|
| (0.01) |
|
|
| 191 |
|
|
| 0.01 |
|
Loss from continuing operations, before special items |
| $ | (1,923) |
|
|
| (0.07) |
|
|
| (2,689) |
|
|
| (0.09) |
|
|
|
(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 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. |
Balance Sheet and Capital Expenditures
We ended the first quarter with a debt balance outstanding of $35.0 million, down from $37.5 million at the end of the fourth quarter fiscal 2015. During the first quarter, our capital expenditures were $5.7 million, compared to $3.6 million in the 12-week first quarter fiscal 2015. At the end of the first quarter, we had $1.6 million in cash and $173.4 million in total shareholders' equity.
Restaurant Counts: | |||||||||||||
| |||||||||||||
|
| Fiscal 2016
|
| 2016 Q1
|
| 2016 Q1
|
| Fiscal 2016
| |||||
Luby's Cafeterias(1) |
| 93 |
|
|
|
|
| 93 | |||||
Fuddruckers(1) |
| 75 |
| 2 |
|
|
| 77 | |||||
Cheeseburger in Paradise |
| 8 |
|
|
|
|
| 8 | |||||
Other restaurants (2) |
| 1 |
|
|
|
|
| 1 | |||||
Total |
| 177 |
| 2 |
|
|
| 179 |
|
|
(1) | Includes 6 restaurants that are part of Combo locations |
(2) | Other restaurants include one Bob Luby's Seafood |
Conference Call
Luby's will host a conference call on January 22, 2016 at 10:00 a.m. Central Time to discuss further its first quarter fiscal 2016 results. To access the call live, dial (412) 902-0030 and use the access code 13627673# 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 January 29, 2016 and may be accessed by calling (201) 612-7415 and using the access code 13627673#. 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 179 restaurants nationally: 93 Luby's Cafeterias, 77 Fuddruckers, 8 Cheeseburger in Paradise and one Bob Luby's Seafood Grill. The Company is the franchisor for 111 Fuddruckers franchise locations across the United States (including Puerto Rico), Canada, Mexico, Italy, the Dominican Republic, Panama, Chile, and Colombia. Additionally, a licensee operates 35 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 Middle East restaurants. Luby's Culinary Contract Services provides food service management to 28 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.
For additional information contact:
Dennard-Lascar Associates
713-529-6600
Rick Black / Ken Dennard
Investor Relations
Luby's, Inc. | ||||||||
Consolidated Statements of Operations (unaudited) | ||||||||
(In thousands, except per share data) | ||||||||
| ||||||||
|
| Quarter Ended |
| |||||
|
| December 16,
|
|
| November 19,
|
| ||
|
| (16 weeks) |
|
| (12 weeks) |
| ||
SALES: |
|
|
|
|
|
|
|
|
Restaurant sales |
| $ | 113,546 |
|
| $ | 80,557 |
|
Culinary contract services |
|
| 4,915 |
|
|
| 4,598 |
|
Franchise revenue |
|
| 2,125 |
|
|
| 1,581 |
|
Vending revenue |
|
| 158 |
|
|
| 125 |
|
TOTAL SALES |
|
| 120,744 |
|
|
| 86,861 |
|
COSTS AND EXPENSES: |
|
|
|
|
|
|
|
|
Cost of food |
|
| 32,434 |
|
|
| 23,484 |
|
Payroll and related costs |
|
| 39,424 |
|
|
| 28,686 |
|
Other operating expenses |
|
| 18,421 |
|
|
| 14,219 |
|
Occupancy costs |
|
| 6,642 |
|
|
| 4,942 |
|
Opening costs |
|
| 397 |
|
|
| 925 |
|
Cost of culinary contract services |
|
| 4,422 |
|
|
| 4,099 |
|
Cost of franchise operations |
|
| 612 |
|
|
| 384 |
|
Depreciation and amortization |
|
| 7,014 |
|
|
| 5,068 |
|
Selling, general and administrative expenses |
|
| 13,243 |
|
|
| 9,151 |
|
Net (gain) loss on disposition of property and equipment |
|
| (279) |
|
|
| 290 |
|
Total costs and expenses |
|
| 122,330 |
|
|
| 91,248 |
|
LOSS FROM OPERATIONS |
|
| (1,586) |
|
|
| (4,387) |
|
Interest income |
|
| 1 |
|
|
| 1 |
|
Interest expense |
|
| (696) |
|
|
| (456) |
|
Other income (expense), net |
|
| (118) |
|
|
| 180 |
|
Loss before income taxes and discontinued operations |
|
| (2,399) |
|
|
| (4,662) |
|
Benefit for income taxes |
|
| (660) |
|
|
| (1,782) |
|
Loss from continuing operations |
|
| (1,739) |
|
|
| (2,880) |
|
Loss from discontinued operations, net of income taxes |
|
| (72) |
|
|
| (139) |
|
NET LOSS |
| $ | (1,811) |
|
| $ | (3,019) |
|
Loss per share from continuing operations: |
|
|
|
|
|
|
|
|
Basic |
| $ | (0.06) |
|
| $ | (0.10) |
|
Assuming dilution |
|
| (0.06) |
|
|
| (0.10) |
|
Loss per share from discontinued operations: |
|
|
|
|
|
|
|
|
Basic |
| $ | (0.00) |
|
| $ | (0.01) |
|
Assuming dilution |
|
| (0.00) |
|
|
| (0.01) |
|
Net loss per share: |
|
|
|
|
|
|
|
|
Basic |
| $ | (0.06) |
|
| $ | (0.11) |
|
Assuming dilution |
|
| (0.06) |
|
|
| (0.11) |
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
| 29,133 |
|
|
| 28,890 |
|
Assuming dilution |
|
| 29,133 |
|
|
| 28,890 |
|
|
|
|
|
|
|
|
|
|
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 |
| |||||||||
|
| December 16,
|
|
| November 19,
|
|
| December 17,
|
| |||
|
| (16 weeks) |
|
| (12 weeks) |
|
| (16 weeks) |
| |||
|
|
|
| |||||||||
Restaurants sales |
|
|
|
|
|
|
|
|
|
|
|
|
Culinary contract services |
|
| 94.0 | % |
|
| 92.7 | % |
|
| 93.1 | % |
Franchise revenue |
|
| 4.1 | % |
|
| 5.3 | % |
|
| 4.9 | % |
Vending revenue |
|
| 1.8 | % |
|
| 1.8 | % |
|
| 1.8 | % |
TOTAL SALES |
|
| 0.1 | % |
|
| 0.1 | % |
|
| 0.1 | % |
|
|
| 100.0 | % |
|
| 100.0 | % |
|
| 100.0 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
COST AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
(As a percentage of restaurant sales) |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of food |
|
| 28.6 | % |
|
| 29.2 | % |
|
| 29.4 | % |
Payroll and related costs |
|
| 34.7 | % |
|
| 35.6 | % |
|
| 34.8 | % |
Other operating expenses |
|
| 16.2 | % |
|
| 17.7 | % |
|
| 17.1 | % |
Occupancy costs |
|
| 5.8 | % |
|
| 6.1 | % |
|
| 6.0 | % |
Vending income |
|
| (0.1) | % |
|
| (0.2) | % |
|
| (0.1) | % |
Store level profit |
|
| 14.8 | % |
|
| 11.6 | % |
|
| 12.8 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
(As a percentage of total sales) |
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses |
|
| 11.0 | % |
|
| 10.5 | % |
|
| 10.3 | % |
LOSS FROM OPERATIONS |
|
| (1.3) | % |
|
| (5.1) | % |
|
| (3.3) | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
Luby's, Inc. | ||||||||
Consolidated Balance Sheets | ||||||||
(In thousands, except per share data) | ||||||||
| ||||||||
|
| December 16,
|
|
| August 26,
|
| ||
|
| (Unaudited) |
|
|
|
|
| |
ASSETS |
|
|
|
|
|
|
|
|
Current Assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
| $ | 1,581 |
|
| $ | 1,501 |
|
Trade accounts and other receivables, net |
|
| 4,949 |
|
|
| 5,175 |
|
Food and supply inventories |
|
| 4,948 |
|
|
| 4,483 |
|
Prepaid expenses |
|
| 2,881 |
|
|
| 3,402 |
|
Assets related to discontinued operations |
|
| 3 |
|
|
| 10 |
|
Deferred income taxes |
|
| 577 |
|
|
| 577 |
|
Total current assets |
|
| 14,939 |
|
|
| 15,148 |
|
Property held for sale |
|
| 3,058 |
|
|
| 4,536 |
|
Assets related to discontinued operations |
|
| 3,672 |
|
|
| 3,671 |
|
Property and equipment, net |
|
| 199,754 |
|
|
| 200,202 |
|
Intangible assets, net |
|
| 22,089 |
|
|
| 22,570 |
|
Goodwill |
|
| 1,643 |
|
|
| 1,643 |
|
Deferred income taxes |
|
| 13,844 |
|
|
| 12,917 |
|
Other assets |
|
| 3,613 |
|
|
| 3,571 |
|
Total assets |
| $ | 262,612 |
|
| $ | 264,258 |
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
Current Liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
| $ | 18,912 |
|
| $ | 20,173 |
|
Liabilities related to discontinued operations |
|
| 438 |
|
|
| 408 |
|
Accrued expenses and other liabilities |
|
| 27,448 |
|
|
| 23,967 |
|
Total current liabilities |
|
| 46,798 |
|
|
| 44,548 |
|
Credit facility debt |
|
| 35,000 |
|
|
| 37,500 |
|
Liabilities related to discontinued operations |
|
| 17 |
|
|
| 182 |
|
Other liabilities |
|
| 7,429 |
|
|
| 7,369 |
|
Total liabilities |
|
| 89,244 |
|
|
| 89,599 |
|
Commitments and Contingencies |
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
Common stock, $0.32 par value; 100,000,000 shares authorized; shares issued were 29,325,754 and 29,134,603, respectively; shares outstanding were 28,825,754 and 28,634,603, respectively |
|
| 9,384 |
|
|
| 9,323 |
|
Paid-in capital |
|
| 29,465 |
|
|
| 29,006 |
|
Retained earnings |
|
| 139,294 |
|
|
| 141,105 |
|
Less cost of treasury stock, 500,000 shares |
|
| (4,775) |
|
|
| (4,775) |
|
Total shareholders' equity |
|
| 173,368 |
|
|
| 174,659 |
|
Total liabilities and shareholders' equity |
| $ | 262,612 |
|
| $ | 264,258 |
|
Luby's, Inc. | ||||||||
Consolidated Statements of Cash Flows (unaudited) | ||||||||
(In thousands) | ||||||||
| ||||||||
|
| Quarter Ended |
| |||||
|
| December 16,
|
|
| November 19,
|
| ||
|
| (16 weeks) |
|
| (12 weeks) |
| ||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
|
Net loss |
| $ | (1,811) |
|
| $ | (3,019) |
|
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Net (gain) loss on disposition of property and equipment |
|
| (279) |
|
|
| 290 |
|
Depreciation and amortization |
|
| 7,021 |
|
|
| 5,073 |
|
Amortization of debt issuance cost |
|
| 148 |
|
|
| 36 |
|
Non-cash compensation expense |
|
| 75 |
|
|
| — |
|
Share-based compensation expense |
|
| 445 |
|
|
| 322 |
|
Other non-cash compensation expense |
|
| 74 |
|
|
| — |
|
Deferred tax benefit |
|
| (927) |
|
|
| (2,028) |
|
Cash provided by operating activities before changes in operating assets and liabilities |
|
| 4,746 |
|
|
| 674 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Decrease (Increase) in trade accounts and other receivables |
|
| 226 |
|
|
| (690) |
|
Increase in food and supply inventories |
|
| (968) |
|
|
| (1,998) |
|
Decrease in prepaid expenses and other assets |
|
| 364 |
|
|
| 1,118 |
|
Increase (Decrease) in accounts payable, accrued expenses and other liabilities |
|
| 1,975 |
|
|
| (3,431) |
|
Net cash provided by (used in) operating activities |
|
| 6,343 |
|
|
| (4,327) |
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
|
Proceeds from disposal of assets and property held for sale |
|
| 1,916 |
|
|
| 692 |
|
Decrease in notes receivable |
|
| 17 |
|
|
| — |
|
Purchases of property and equipment |
|
| (5,729) |
|
|
| (3,589) |
|
Net cash used in investing activities |
|
| (3,796) |
|
|
| (2,897) |
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
Credit facility borrowings |
|
| 27,000 |
|
|
| 25,800 |
|
Credit facility repayments |
|
| (29,500) |
|
|
| (19,500) |
|
Debt issuance costs |
|
| (42) |
|
|
| (50) |
|
Proceeds received on the exercise of employee stock options |
|
| 75 |
|
|
| — |
|
Net cash provided by (used in) financing activities |
|
| (2,467) |
|
|
| 6,250 |
|
Net increase (decrease) in cash and cash equivalents |
|
| 80 |
|
|
| (974) |
|
Cash and cash equivalents at beginning of period |
|
| 1,501 |
|
|
| 2,788 |
|
Cash and cash equivalents at end of period |
|
| 1,581 |
|
| $ | 1,814 |
|
Cash paid for: |
|
|
|
|
|
|
|
|
Income taxes |
| $ | — |
|
| $ | — |
|
Interest |
|
| 520 |
|
|
| 451 |
|
Although store level profit, defined as restaurant sales less cost of food, payroll and related costs, other 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 loss from continuing operations, a GAAP measure:
|
| Quarter Ended |
| |||||||
|
| December 16, |
| November 19, |
| December 17, |
| |||
|
| 2015 |
| 2014 |
| 2014 |
| |||
|
| (16 weeks) |
| (12 weeks) |
| (16 weeks) |
| |||
|
|
|
| |||||||
Store level profit |
| $ | 16,783 |
| $ | 9,351 |
| $ | 14,218 |
|
|
|
|
|
|
|
|
|
|
|
|
Plus: |
|
|
|
|
|
|
|
|
|
|
Sales from culinary contract services |
|
| 4,915 |
|
| 4,598 |
|
| 5,908 |
|
Sales from franchise revenue |
|
| 2,125 |
|
| 1,581 |
|
| 2,136 |
|
|
|
|
|
|
|
|
|
|
|
|
Less: |
|
|
|
|
|
|
|
|
|
|
Opening costs |
|
| 397 |
|
| 925 |
|
| 1,024 |
|
Cost of culinary contract services |
|
| 4,422 |
|
| 4,099 |
|
| 5,302 |
|
Cost of franchise operations |
|
| 612 |
|
| 384 |
|
| 539 |
|
Depreciation and amortization |
|
| 7,014 |
|
| 5,068 |
|
| 6,664 |
|
Selling, general and administrative expenses |
|
| 13,243 |
|
| 9,151 |
|
| 12,262 |
|
Net (gain) loss on disposition of property and equipment |
|
| (279) |
|
| 290 |
|
| 363 |
|
Interest income |
|
| (1) |
|
| (1) |
|
| (1) |
|
Interest expense |
|
| 696 |
|
| 456 |
|
| 629 |
|
Other income (expense), net |
|
| 118 |
|
| (180) |
|
| (230) |
|
Benefit for income taxes |
|
| (660) |
|
| (1,782) |
|
| (1,776) |
|
Loss from continuing operations |
| $ | (1,739) |
| $ | (2,880) |
| $ | (2,514) |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
Adjusted EBITDA is defined as income (loss) from continuing operations before interest, provision (benefit) for income taxes and depreciation and amortization and excluding net gain (loss) on disposing of property and equipment, provision for asset impairments, non-cash compensation expense, and other income (expense).
Adjusted EBITDA is intended as a supplemental measure of our performance that is not required by, or presented in accordance with GAAP. We believe Adjusted EBITDA provides useful information to management and investors in valuing the Company and evaluating ongoing operating results and trends and in comparing our results to other competitors. Our management uses Adjusted EBITDA in evaluating management's performance when determining incentive compensation.
Adjusted EBITDA, as defined, may not be comparable to other similarly titled measures as computed by other companies. These measures should be considered supplemental and not a substitute or superior to other GAAP performance measures.
|
| Quarter Ended |
| |||||||
|
| December 16, |
| November 19, |
| December 17, |
| |||
|
| 2015 |
| 2014 |
| 2014 |
| |||
|
| (16 weeks) |
| (12 weeks) |
| (16 weeks) |
| |||
|
|
|
| |||||||
Loss from continuing operations |
| $ | (1,739) |
| $ | (2,880) |
| $ | (2,514) |
|
Benefit for income taxes |
|
| (660) |
|
| (1,782) |
|
| (1,776) |
|
Depreciation and amortization |
|
| 7,014 |
|
| 5,068 |
|
| 6,664 |
|
Interest expense, net |
|
| 696 |
|
| 455 |
|
| 628 |
|
Net loss (gain) on disposition of assets |
|
| (279) |
|
| 290 |
|
| 363 |
|
Employee stock-based compensation expense |
|
| 529 |
|
| 154 |
|
| 194 |
|
Less: Other income (expense), net |
|
| 118 |
|
| (180) |
|
| (230) |
|
Adjusted EBITDA |
| $ | 5,679 |
| $ | 1,125 |
| $ | 3,329 |
|