FORM 8-K |
Bob Evans Farms, Inc. (Exact name of registrant as specified in its charter) |
Delaware | 0-1667 | 31-4421866 |
(State or other jurisdiction of incorporation or organization) | (Commission File No.) | (I.R.S. Employer Identification No.) |
99.1 | News release issued by Bob Evans Farms, Inc. on December 5, 2016 announcing the financial results for the second quarter of fiscal year 2017 ended October 28, 2016 | Filed herewith |
BOB EVANS FARMS, INC. | |||
Date: December 5, 2016 | By: | /s/ Mark E. Hood | |
Mark E. Hood, Chief Financial Officer and Chief Administrative Officer |
▪ | Q2 2017 net sales total $316.0 million; GAAP net income of $0.01 per diluted share, non-GAAP net income(1) of $0.56 per diluted share. A $16.0 million pretax impairment charge ($0.55 per diluted share) related to the note receivable from the 2013 sale of Mimi’s Café is the primary difference between GAAP and non-GAAP results |
▪ | BEF Foods reports Q2 side-dish and sausage pounds sold growth of 13.7 percent and 7.6 percent, respectively. Household penetration increases 24 percent during the past year |
▪ | Bob Evans Restaurants’ sales trend continued to improve as Q2 same-store sales declined 1.8 percent with a new menu design, product upgrades, and improved hospitality continuing to enhance the guest experience |
▪ | Company lowers fiscal year 2017 GAAP diluted EPS guidance range to $1.54 to $1.72 to reflect the note receivable impairment. Raises non-GAAP range to $2.15 to $2.30 to reflect improved performance and updated projections |
▪ | Quarterly dividend of $0.34 per share payable on December 23, 2016, to stockholders of record at the close of business on December 12, 2016. Current share repurchase authorization extended through December 31, 2017 |
Same-Store Sales (SSS) Restaurants | August | September | October | Q2 FY ’17 |
521 | -2.0% | -2.0% | -1.4% | -1.8% |
Guidance Metric | FY ‘17 | |
Consolidated net sales | $1.24 to $1.29 billion | |
Bob Evans Restaurants same-store sales | negative low-single digit to flat | |
Bob Evans Restaurants commodity pricing | negative low-single digit to flat | |
BEF Foods net sales | $390 to $410 million | |
BEF Foods sow cost (per hundredweight) | $42-$45 | |
Capital expenditures | $75 to $80 million | |
Depreciation and amortization | $71 to $75 million | |
Net interest expense | $10 to $12 million | |
GAAP Tax rate | 18% to 19% | |
Non-GAAP Tax rate | 24% to 25% | |
Diluted weighted-average share count | approximately 20 million shares | |
Remaining share repurchase authorization | $78.5 million | |
GAAP diluted earnings per share | $1.54 to $1.72 | |
Non-GAAP diluted earnings per share | $2.15 to $2.30 |
(in thousands, except per share amounts) | Basic EPS | Diluted EPS | |||||||||||||||||||||
Three Months Ended | Three Months Ended | Three Months Ended | |||||||||||||||||||||
October 28, 2016 | October 23, 2015 | October 28, 2016 | October 23, 2015 | October 28, 2016 | October 23, 2015 | ||||||||||||||||||
Operating Income (Loss) as Reported | |||||||||||||||||||||||
Bob Evans Restaurants | $ | 13,461 | $ | 13,323 | |||||||||||||||||||
BEF Foods | 18,679 | 13,997 | |||||||||||||||||||||
Corporate and Other | (30,672 | ) | (15,886 | ) | |||||||||||||||||||
Operating Income | 1,468 | 11,434 | |||||||||||||||||||||
Net interest expense | 1,741 | 2,883 | |||||||||||||||||||||
Income Before Income Taxes | (273 | ) | 8,551 | ||||||||||||||||||||
Provision (benefit) for income taxes | (491 | ) | 2,120 | ||||||||||||||||||||
Net Income as reported | 218 | 6,431 | $ | 0.01 | $ | 0.29 | $ | 0.01 | $ | 0.29 | |||||||||||||
Adjustments | |||||||||||||||||||||||
Bob Evans Restaurants | |||||||||||||||||||||||
Severance/Restructuring | — | 318 | |||||||||||||||||||||
BEF Foods | |||||||||||||||||||||||
Loss on Sale of Assets | — | 3,606 | |||||||||||||||||||||
Corporate and Other | |||||||||||||||||||||||
Impairments | 16,000 | — | |||||||||||||||||||||
Activism, Strategic Initiatives and Other | 479 | — | |||||||||||||||||||||
16,479 | — | ||||||||||||||||||||||
Total adjustments | |||||||||||||||||||||||
Impairments | 16,000 | — | |||||||||||||||||||||
Severance/Restructuring | — | 318 | |||||||||||||||||||||
Loss on Sale of Assets | — | 3,606 | |||||||||||||||||||||
Activism, Strategic Initiatives and Other | 479 | — | |||||||||||||||||||||
16,479 | 3,924 | ||||||||||||||||||||||
Non-GAAP operating income (loss) | |||||||||||||||||||||||
Bob Evans Restaurants | 13,461 | 13,641 | |||||||||||||||||||||
BEF Foods | 18,679 | 17,603 | |||||||||||||||||||||
Corporate and Other | (14,193 | ) | (15,886 | ) | |||||||||||||||||||
Total non-GAAP operating income | 17,947 | 15,358 | |||||||||||||||||||||
Adjustments to net interest expense | 1,133 | (480 | ) | ||||||||||||||||||||
Non-GAAP net interest expense | 2,874 | 2,403 | |||||||||||||||||||||
Non-GAAP Income Before Taxes | 15,073 | 12,955 | |||||||||||||||||||||
Adjustments to income tax provision (benefit) | 4,380 | 1,636 | |||||||||||||||||||||
Non-GAAP Provision for Income Taxes | 3,889 | 3,756 | |||||||||||||||||||||
Non-GAAP Net Income | $ | 11,184 | $ | 9,199 | $ | 0.56 | $ | 0.42 | $ | 0.56 | $ | 0.41 | |||||||||||
Weighted Average Shares Outstanding | 19,825 | 22,115 | 19,964 | 22,233 |
(in thousands) | Three Months Ended | |||||||||||||||||||||||||||
Consolidated Results | Bob Evans Restaurants | |||||||||||||||||||||||||||
October 28, 2016 | % of Sales | October 23, 2015 | % of Sales | October 28, 2016 | % of Sales | October 23, 2015 | % of Sales | |||||||||||||||||||||
Operating income as reported | ||||||||||||||||||||||||||||
Net Sales | $ | 315,963 | $ | 325,021 | $ | 219,805 | $ | 230,741 | ||||||||||||||||||||
Cost of sales | 96,232 | 30.5 | % | 102,709 | 31.6 | % | 56,007 | 25.5 | % | 61,725 | 26.8 | % | ||||||||||||||||
Operating wage and fringe benefit expenses | 100,150 | 31.7 | % | 104,403 | 32.1 | % | 89,352 | 40.7 | % | 93,460 | 40.5 | % | ||||||||||||||||
Other operating expenses | 58,457 | 18.5 | % | 56,181 | 17.3 | % | 43,018 | 19.6 | % | 42,984 | 18.6 | % | ||||||||||||||||
Selling, general and administrative expenses | 25,487 | 8.0 | % | 29,902 | 9.2 | % | 6,965 | 3.1 | % | 5,433 | 2.3 | % | ||||||||||||||||
Depreciation and amortization expense | 17,646 | 5.6 | % | 20,107 | 6.2 | % | 10,479 | 4.8 | % | 13,531 | 5.9 | % | ||||||||||||||||
Impairments | 16,523 | 5.2 | % | 285 | 0.1 | % | 523 | 0.2 | % | 285 | 0.1 | % | ||||||||||||||||
Total as reported | 1,468 | 0.5 | % | 11,434 | 3.5 | % | 13,461 | 6.1 | % | 13,323 | 5.8 | % | ||||||||||||||||
Adjustments | ||||||||||||||||||||||||||||
Net Sales | — | — | — | — | ||||||||||||||||||||||||
Cost of sales | — | — | — | — | ||||||||||||||||||||||||
Operating wage and fringe benefit expenses | — | — | — | — | ||||||||||||||||||||||||
Other operating expenses | — | — | — | — | ||||||||||||||||||||||||
Selling, general and administrative expenses | (479 | ) | (3,924 | ) | — | (318 | ) | |||||||||||||||||||||
Depreciation and amortization expense | — | — | — | — | ||||||||||||||||||||||||
Impairments | (16,000 | ) | — | — | — | |||||||||||||||||||||||
Total Adjustments | 16,479 | 3,924 | — | 318 | ||||||||||||||||||||||||
Non-GAAP operating income | ||||||||||||||||||||||||||||
Net Sales | 315,963 | 325,021 | 219,805 | 230,741 | ||||||||||||||||||||||||
Cost of sales | 96,232 | 30.5 | % | 102,709 | 31.6 | % | 56,007 | 25.5 | % | 61,725 | 26.8 | % | ||||||||||||||||
Operating wage and fringe benefit expenses | 100,150 | 31.7 | % | 104,403 | 32.1 | % | 89,352 | 40.7 | % | 93,460 | 40.5 | % | ||||||||||||||||
Other operating expenses | 58,457 | 18.5 | % | 56,181 | 17.3 | % | 43,018 | 19.6 | % | 42,984 | 18.6 | % | ||||||||||||||||
Selling, general and administrative expenses | 25,008 | 7.9 | % | 25,978 | 8.0 | % | 6,965 | 3.1 | % | 5,115 | 2.2 | % | ||||||||||||||||
Depreciation and amortization expense | 17,646 | 5.5 | % | 20,107 | 6.2 | % | 10,479 | 4.8 | % | 13,531 | 5.9 | % | ||||||||||||||||
Impairments | 523 | 0.2 | % | 285 | 0.1 | % | 523 | 0.2 | % | 285 | 0.1 | % | ||||||||||||||||
Total non-GAAP operating income | $ | 17,947 | 5.7 | % | $ | 15,358 | 4.7 | % | $ | 13,461 | 6.1 | % | $ | 13,641 | 5.9 | % |
(in thousands) | Three Months Ended | |||||||||||||||||||||
BEF Foods | Corporate and Other | |||||||||||||||||||||
October 28, 2016 | % of Sales | October 23, 2015 | % of Sales | October 28, 2016 | October 23, 2015 | |||||||||||||||||
Operating income (loss) as reported | ||||||||||||||||||||||
Net Sales | $ | 96,158 | $ | 94,280 | $ | — | $ | — | ||||||||||||||
Cost of sales | 40,225 | 41.8 | % | 40,984 | 43.5 | % | — | — | ||||||||||||||
Operating wage and fringe benefit expenses | 10,798 | 11.2 | % | 10,943 | 11.6 | % | — | — | ||||||||||||||
Other operating expenses | 15,439 | 16.1 | % | 13,197 | 14.0 | % | — | — | ||||||||||||||
Selling, general and administrative expenses | 6,775 | 7.1 | % | 10,964 | 11.7 | % | 11,747 | 13,505 | ||||||||||||||
Depreciation and amortization expense | 4,242 | 4.4 | % | 4,195 | 4.4 | % | 2,925 | 2,381 | ||||||||||||||
Impairments | — | — | % | — | — | % | 16,000 | — | ||||||||||||||
Total as Reported | 18,679 | 19.4 | % | 13,997 | 14.8 | % | (30,672 | ) | (15,886 | ) | ||||||||||||
Adjustments | ||||||||||||||||||||||
Net Sales | — | — | — | — | ||||||||||||||||||
Cost of sales | — | — | — | — | ||||||||||||||||||
Operating wage and fringe benefit expenses | — | — | — | — | ||||||||||||||||||
Other operating expenses | — | — | — | — | ||||||||||||||||||
Selling, general and administrative expenses | — | (3,606 | ) | (479 | ) | — | ||||||||||||||||
Depreciation and amortization expense | — | — | — | — | ||||||||||||||||||
Impairments | — | — | (16,000 | ) | — | |||||||||||||||||
Total adjustments | — | 3,606 | 16,479 | — | ||||||||||||||||||
Non-GAAP operating income (loss) | ||||||||||||||||||||||
Net Sales | 96,158 | 94,280 | — | — | ||||||||||||||||||
Cost of sales | 40,225 | 41.8 | % | 40,984 | 43.5 | % | — | — | ||||||||||||||
Operating wage and fringe benefit expenses | 10,798 | 11.2 | % | 10,943 | 11.6 | % | — | — | ||||||||||||||
Other operating expenses | 15,439 | 16.1 | % | 13,197 | 14.0 | % | — | — | ||||||||||||||
Selling, general and administrative expenses | 6,775 | 7.1 | % | 7,358 | 7.8 | % | 11,268 | 13,505 | ||||||||||||||
Depreciation and amortization expense | 4,242 | 4.4 | % | 4,195 | 4.4 | % | 2,925 | 2,381 | ||||||||||||||
Impairments | — | — | % | — | — | % | — | — | ||||||||||||||
Total non-GAAP operating income (loss) | $ | 18,679 | 19.4 | % | $ | 17,603 | 18.7 | % | $ | (14,193 | ) | $ | (15,886 | ) |
(in thousands, except per share amounts) | Basic EPS | Diluted EPS | |||||||||||||||||||||
Six Months Ended | Six Months Ended | Six Months Ended | |||||||||||||||||||||
October 28, 2016 | October 23, 2015 | October 28, 2016 | October 23, 2015 | October 28, 2016 | October 23, 2015 | ||||||||||||||||||
Operating Income (Loss) as Reported | |||||||||||||||||||||||
Bob Evans Restaurants | $ | 25,062 | $ | 23,132 | |||||||||||||||||||
BEF Foods | 34,066 | 29,834 | |||||||||||||||||||||
Corporate and Other | (43,963 | ) | (33,270 | ) | |||||||||||||||||||
Operating Income | 15,165 | 19,696 | |||||||||||||||||||||
Net interest expense | 3,633 | 5,489 | |||||||||||||||||||||
Income Before Income Taxes | 11,532 | 14,207 | |||||||||||||||||||||
Provision (benefit) for income taxes | 2,151 | 3,496 | |||||||||||||||||||||
Net Income as reported | 9,381 | 10,711 | $ | 0.47 | $ | 0.48 | $ | 0.47 | $ | 0.47 | |||||||||||||
Adjustments | |||||||||||||||||||||||
Bob Evans Restaurants | |||||||||||||||||||||||
Severance/Restructuring | — | 318 | |||||||||||||||||||||
Store Closure Costs | 807 | — | |||||||||||||||||||||
Litigation Reserves | (278 | ) | 10,500 | ||||||||||||||||||||
529 | 10,818 | ||||||||||||||||||||||
BEF Foods | |||||||||||||||||||||||
Loss on Sale of Assets | — | 3,606 | |||||||||||||||||||||
— | 3,606 | ||||||||||||||||||||||
Corporate and Other | |||||||||||||||||||||||
Impairments | 16,000 | — | |||||||||||||||||||||
Activism, Strategic Initiatives and Other | 479 | — | |||||||||||||||||||||
16,479 | — | ||||||||||||||||||||||
Total adjustments | |||||||||||||||||||||||
Impairments | 16,000 | — | |||||||||||||||||||||
Severance/Restructuring | 807 | 318 | |||||||||||||||||||||
Loss on Sale of Assets | — | 3,606 | |||||||||||||||||||||
Activism, Strategic Initiatives and Other | 479 | — | |||||||||||||||||||||
Litigation Reserves | (278 | ) | 10,500 | ||||||||||||||||||||
17,008 | 14,424 | ||||||||||||||||||||||
Non-GAAP operating income (loss) | |||||||||||||||||||||||
Bob Evans Restaurants | 25,591 | 33,950 | |||||||||||||||||||||
BEF Foods | 34,066 | 33,440 | |||||||||||||||||||||
Corporate and Other | (27,484 | ) | (33,270 | ) | |||||||||||||||||||
Total non-GAAP operating income | 32,173 | 34,120 | |||||||||||||||||||||
Adjustments to net interest expense | 1,133 | (480 | ) | ||||||||||||||||||||
Non-GAAP net interest expense | 4,766 | 5,009 | |||||||||||||||||||||
Non-GAAP Income Before Taxes | 27,407 | 29,111 | |||||||||||||||||||||
Adjustments to income tax provision (benefit) | 4,521 | 4,712 | |||||||||||||||||||||
Non-GAAP Provision for Income Taxes | 6,672 | 8,208 | |||||||||||||||||||||
Non-GAAP Net Income | $ | 20,735 | $ | 20,903 | $ | 1.05 | $ | 0.93 | $ | 1.04 | $ | 0.93 | |||||||||||
Weighted Average Shares Outstanding | 19,807 | 22,421 | 19,982 | 22,572 |
(in thousands) | Six Months Ended | ||||||||||||||||||||||||||
Consolidated Results | Bob Evans Restaurants | ||||||||||||||||||||||||||
October 28, 2016 | % of Sales | October 23, 2015 | % of Sales | October 28, 2016 | % of Sales | October 23, 2015 | % of Sales | ||||||||||||||||||||
Operating income as reported | |||||||||||||||||||||||||||
Net Sales | $ | 622,280 | $ | 646,734 | $ | 440,181 | $ | 469,410 | |||||||||||||||||||
Cost of sales | 189,482 | 30.4 | % | 199,030 | 30.8 | % | 111,243 | 25.3 | % | 123,192 | 26.2 | % | |||||||||||||||
Operating wage and fringe benefit expenses | 200,848 | 32.3 | % | 209,287 | 32.4 | % | 180,866 | 41.1 | % | 188,922 | 40.2 | % | |||||||||||||||
Other operating expenses | 114,098 | 18.3 | % | 107,815 | 16.7 | % | 85,562 | 19.4 | % | 83,001 | 17.7 | % | |||||||||||||||
Selling, general and administrative expenses | 50,945 | 8.2 | % | 70,361 | 10.9 | % | 15,371 | 3.5 | % | 23,868 | 5.1 | % | |||||||||||||||
Depreciation and amortization expense | 35,219 | 5.7 | % | 40,260 | 6.2 | % | 21,554 | 4.9 | % | 27,010 | 5.8 | % | |||||||||||||||
Impairments | 16,523 | 2.7 | % | 285 | — | % | 523 | 0.1 | % | 285 | 0.1 | % | |||||||||||||||
Total as reported | $ | 15,165 | 2.4 | % | $ | 19,696 | 3.0 | % | $ | 25,062 | 5.7 | % | $ | 23,132 | 4.9 | % | |||||||||||
Adjustments | |||||||||||||||||||||||||||
Net Sales | $ | — | — | $ | — | $ | — | ||||||||||||||||||||
Cost of sales | — | — | — | — | |||||||||||||||||||||||
Operating wage and fringe benefit expenses | — | — | — | — | |||||||||||||||||||||||
Other operating expenses | (340 | ) | — | (340 | ) | — | |||||||||||||||||||||
Selling, general and administrative expenses | (668 | ) | (14,424 | ) | (189 | ) | (10,818 | ) | |||||||||||||||||||
Depreciation and amortization expense | — | — | — | — | |||||||||||||||||||||||
Impairments | (16,000 | ) | — | — | — | ||||||||||||||||||||||
Total Adjustments | $ | 17,008 | $ | 14,424 | $ | 529 | $ | 10,818 | |||||||||||||||||||
Non-GAAP operating income | |||||||||||||||||||||||||||
Net Sales | $ | 622,280 | $ | 646,734 | $ | 440,181 | $ | 469,410 | |||||||||||||||||||
Cost of sales | 189,482 | 30.4 | % | 199,030 | 30.8 | % | 111,243 | 25.3 | % | 123,192 | 26.2 | % | |||||||||||||||
Operating wage and fringe benefit expenses | 200,848 | 32.3 | % | 209,287 | 32.4 | % | 180,866 | 41.1 | % | 188,922 | 40.2 | % | |||||||||||||||
Other operating expenses | 113,758 | 18.3 | % | 107,815 | 16.7 | % | 85,221 | 19.4 | % | 83,001 | 17.7 | % | |||||||||||||||
Selling, general and administrative expenses | 50,276 | 8.0 | % | 55,937 | 10.9 | % | 15,182 | 3.4 | % | 13,050 | 2.8 | % | |||||||||||||||
Depreciation and amortization expense | 35,219 | 5.7 | % | 40,260 | 6.2 | % | 21,554 | 4.9 | % | 27,010 | 5.8 | % | |||||||||||||||
Impairments | 523 | 0.1 | % | 285 | — | % | 523 | 0.1 | % | 285 | 0.1 | % | |||||||||||||||
Total non-GAAP operating income | $ | 32,174 | 5.2 | % | $ | 34,120 | 3.0 | % | $ | 25,592 | 5.8 | % | $ | 33,950 | 7.2 | % |
(in thousands) | Six Months Ended | ||||||||||||||||||||
BEF Foods | Corporate and Other | ||||||||||||||||||||
October 28, 2016 | % of Sales | October 23, 2015 | % of Sales | October 28, 2016 | October 23, 2015 | ||||||||||||||||
Operating income (loss) as reported | |||||||||||||||||||||
Net Sales | $ | 182,099 | $ | 177,324 | $ | — | $ | — | |||||||||||||
Cost of sales | 78,239 | 43.0 | % | 75,838 | 42.8 | % | — | — | |||||||||||||
Operating wage and fringe benefit expenses | 19,982 | 11.0 | % | 20,365 | 11.5 | % | — | — | |||||||||||||
Other operating expenses | 28,537 | 15.7 | % | 24,814 | 14.0 | % | — | — | |||||||||||||
Selling, general and administrative expenses | 13,240 | 7.2 | % | 17,880 | 10.1 | % | 22,333 | 28,613 | |||||||||||||
Depreciation and amortization expense | 8,035 | 4.4 | % | 8,593 | 4.8 | % | 5,630 | 4,657 | |||||||||||||
Impairments | — | — | % | — | — | % | 16,000 | — | |||||||||||||
Total as Reported | $ | 34,066 | 18.7 | % | $ | 29,834 | 16.8 | % | $ | (43,963 | ) | $ | (33,270 | ) | |||||||
Adjustments | |||||||||||||||||||||
Net Sales | $ | — | $ | — | $ | — | $ | — | |||||||||||||
Cost of sales | — | — | — | — | |||||||||||||||||
Operating wage and fringe benefit expenses | — | — | — | — | |||||||||||||||||
Other operating expenses | — | — | — | — | |||||||||||||||||
Selling, general and administrative expenses | — | (3,606 | ) | (479 | ) | — | |||||||||||||||
Depreciation and amortization expense | — | — | — | — | |||||||||||||||||
Impairments | — | — | (16,000 | ) | — | ||||||||||||||||
Total adjustments | $ | — | $ | 3,606 | $ | 16,479 | $ | — | |||||||||||||
Non-GAAP operating income (loss) | |||||||||||||||||||||
Net Sales | $ | 182,099 | $ | 177,324 | $ | — | $ | — | |||||||||||||
Cost of sales | 78,239 | 43.0 | % | 75,838 | 42.8 | % | — | — | |||||||||||||
Operating wage and fringe benefit expenses | 19,982 | 11.0 | % | 20,365 | 11.5 | % | — | — | |||||||||||||
Other operating expenses | 28,537 | 15.7 | % | 24,814 | 14.0 | % | — | — | |||||||||||||
Selling, general and administrative expenses | 13,240 | 7.2 | % | 14,274 | 8.0 | % | 21,854 | 28,613 | |||||||||||||
Depreciation and amortization expense | 8,035 | 4.4 | % | 8,593 | 4.8 | % | 5,630 | 4,657 | |||||||||||||
Impairments | — | — | % | — | — | % | — | — | |||||||||||||
Total non-GAAP operating income (loss) | $ | 34,066 | 18.7 | % | $ | 33,440 | 18.9 | % | $ | (27,484 | ) | $ | (33,270 | ) |
GAAP Diluted EPS | Non-GAAP Diluted EPS | ||
Year to date EPS through Q2 2017 | $0.47 | $1.04 | |
Expected GAAP EPS - second half of fiscal 2017 | $1.07 - $1.25 | $1.07 - $1.25 | |
Expected impact of non GAAP items - second half of fiscal 2017 | — | $0.01 - $0.04 | |
Expected full year EPS - fiscal 2017 | $1.54 - $1.72 | $2.15 - $2.30 |
(in thousands, except per share amounts) | Three Months Ended | Six Months Ended | |||||||||||||||||||
October 28, 2016 | % of Sales | October 23, 2015 | % of Sales | October 28, 2016 | % of Sales | October 23, 2015 | % of Sales | ||||||||||||||
Net Sales | $ | 315,963 | $ | 325,021 | $ | 622,280 | $ | 646,734 | |||||||||||||
Cost of sales | 96,232 | 30.5 | % | 102,709 | 31.6 | % | 189,482 | 30.4 | % | 199,030 | 30.8 | % | |||||||||
Operating wage and fringe benefit expenses | 100,150 | 31.7 | % | 104,403 | 32.1 | % | 200,848 | 32.3 | % | 209,287 | 32.4 | % | |||||||||
Other operating expenses | 58,457 | 18.5 | % | 56,181 | 17.3 | % | 114,098 | 18.3 | % | 107,815 | 16.7 | % | |||||||||
Selling, general and administrative expenses | 25,487 | 8.0 | % | 29,902 | 9.2 | % | 50,945 | 8.2 | % | 70,361 | 10.9 | % | |||||||||
Depreciation and amortization expense | 17,646 | 5.6 | % | 20,107 | 6.2 | % | 35,219 | 5.7 | % | 40,260 | 6.2 | % | |||||||||
Impairments | 16,523 | 5.2 | % | 285 | 0.1 | % | 16,523 | 2.7 | % | 285 | — | % | |||||||||
Operating Income | 1,468 | 0.5 | % | 11,434 | 3.5 | % | 15,165 | 2.4 | % | 19,696 | 3.0 | % | |||||||||
Net interest expense | 1,741 | 2,883 | 3,633 | 5,489 | |||||||||||||||||
(Loss) Income Before Income Taxes | (273 | ) | 8,551 | 11,532 | 14,207 | ||||||||||||||||
(Benefit) Provision for income taxes | (491 | ) | 2,120 | 2,151 | 3,496 | ||||||||||||||||
Net Income | $ | 218 | $ | 6,431 | $ | 9,381 | $ | 10,711 | |||||||||||||
Earnings Per Share — Net Income | |||||||||||||||||||||
Basic | $ | 0.01 | $ | 0.29 | $ | 0.47 | $ | 0.48 | |||||||||||||
Diluted | $ | 0.01 | $ | 0.29 | $ | 0.47 | $ | 0.47 | |||||||||||||
Cash Dividends Paid Per Share | $ | 0.34 | $ | 0.31 | $ | 0.68 | $ | 0.62 | |||||||||||||
Weighted Average Shares Outstanding | |||||||||||||||||||||
Basic | 19,825 | 22,115 | 19,807 | 22,421 | |||||||||||||||||
Dilutive shares | 139 | 118 | 175 | 151 | |||||||||||||||||
Diluted | 19,964 | 22,233 | 19,982 | 22,572 | |||||||||||||||||
Shares outstanding at quarter end | 19,766 | 21,379 |
(in thousands, except par values) | October 28, 2016 | April 29, 2016 | |||||
Assets | |||||||
Current Assets | |||||||
Cash and equivalents | $ | 4,883 | $ | 12,896 | |||
Accounts receivable, net | 39,823 | 28,893 | |||||
Inventories | 33,335 | 24,997 | |||||
Federal and state income taxes receivable | 4,309 | — | |||||
Prepaid expenses and other current assets | 8,816 | 9,307 | |||||
Current assets held for sale | 23,887 | 31,644 | |||||
Total Current Assets | 115,053 | 107,737 | |||||
Property, plant and equipment | 1,285,883 | 1,263,413 | |||||
Less accumulated depreciation | 689,722 | 665,777 | |||||
Net Property, Plant and Equipment | 596,161 | 597,636 | |||||
Other Assets | |||||||
Deposits and other | 3,826 | 4,622 | |||||
Notes receivable, net | 6,256 | 20,886 | |||||
Rabbi trust assets | 21,629 | 20,662 | |||||
Goodwill and other intangible assets | 19,751 | 19,829 | |||||
Non-current deferred tax assets | 34,905 | 29,002 | |||||
Total Other Assets | 86,367 | 95,001 | |||||
Total Assets | $ | 797,581 | $ | 800,374 | |||
Liabilities and Stockholders’ Equity | |||||||
Current Liabilities | |||||||
Current portion of long-term debt | $ | 3,423 | $ | 3,419 | |||
Accounts payable | 41,628 | 37,518 | |||||
Accrued property, plant and equipment purchases | 5,149 | 5,308 | |||||
Accrued non-income taxes | 14,246 | 15,696 | |||||
Accrued wages and related liabilities | 19,417 | 26,358 | |||||
Self-insurance reserves | 18,429 | 20,169 | |||||
Deferred gift card revenue | 12,051 | 14,147 | |||||
Current taxes payable | 2,699 | 9,473 | |||||
Current reserve for uncertain tax provision | 1,481 | 1,481 | |||||
Other accrued expenses | 25,773 | 31,988 | |||||
Total Current Liabilities | 144,296 | 165,557 | |||||
Long-Term Liabilities | |||||||
Deferred compensation | 18,022 | 17,761 | |||||
Reserve for uncertain tax positions | 2,650 | 2,752 | |||||
Deferred rent and other | 6,313 | 5,851 | |||||
Long-term deferred gain | 54,803 | 56,371 | |||||
Credit facility borrowings and other long-term debt | 358,360 | 335,638 | |||||
Total Long-Term Liabilities | 440,148 | 418,373 | |||||
Stockholders’ Equity | |||||||
Common stock, $.01 par value; authorized 100,000 shares; issued 42,638 shares at October 28, 2016, and April 29, 2016 | 426 | 426 | |||||
Capital in excess of par value | 245,535 | 244,304 | |||||
Retained earnings | 827,999 | 832,323 | |||||
Treasury stock, 22,872 shares at October 28, 2016, and 22,881 shares at April 29, 2016, at cost | (860,823 | ) | (860,609 | ) | |||
Total Stockholders’ Equity | 213,137 | 216,444 | |||||
Total Liabilities and Stockholders' Equity | $ | 797,581 | $ | 800,374 |
Six Months Ended | |||||||
October 28, 2016 | October 23, 2015 | ||||||
Operating activities: | |||||||
Net income | $ | 9,381 | $ | 10,711 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 35,218 | 40,260 | |||||
Impairments | 16,523 | 285 | |||||
(Gain) Loss on disposal of fixed assets | (1,664 | ) | 1,603 | ||||
(Gain) Loss on rabbi trust assets | (967 | ) | 2,453 | ||||
Loss (Gain) on deferred compensation | 1,115 | (1,462 | ) | ||||
Share-based compensation | 3,263 | 3,329 | |||||
Accretion on long-term note receivable | (1,133 | ) | (1,011 | ) | |||
Deferred income taxes | (5,903 | ) | 161 | ||||
Amortization of deferred financing costs | 720 | 1,336 | |||||
Cash provided by (used for) assets and liabilities: | |||||||
Accounts receivable | (10,930 | ) | (5,597 | ) | |||
Inventories | (8,338 | ) | (4,558 | ) | |||
Prepaid expenses and other current assets | 491 | (1,136 | ) | ||||
Accounts payable | 4,110 | 8,454 | |||||
Federal and state income taxes | (11,185 | ) | 10,719 | ||||
Accrued wages and related liabilities | (6,941 | ) | (7,710 | ) | |||
Self-insurance | (1,740 | ) | 1,904 | ||||
Accrued non-income taxes | (1,450 | ) | 2,072 | ||||
Deferred revenue | (2,096 | ) | (1,794 | ) | |||
Other assets and liabilities | (7,060 | ) | 6,332 | ||||
Net cash provided by operating activities | 11,414 | 66,351 | |||||
Investing activities: | |||||||
Purchase of property, plant and equipment | (37,086 | ) | (26,667 | ) | |||
Proceeds from sale of property, plant and equipment | 10,688 | 58,451 | |||||
Deposits and other | 130 | (566 | ) | ||||
Net cash (used in) provided by investing activities | (26,268 | ) | 31,218 | ||||
Financing activities: | |||||||
Cash dividends paid | (13,452 | ) | (14,040 | ) | |||
Gross proceeds from credit facility borrowings and other long-term debt | 189,179 | 380,192 | |||||
Gross repayments of credit facility borrowings and other long-term debt | (166,490 | ) | (356,610 | ) | |||
Payments of debt issuance costs | — | (2,517 | ) | ||||
Purchase of treasury stock | — | (104,929 | ) | ||||
Proceeds from share-based compensation | — | 214 | |||||
Cash paid for taxes on share-based compensation | (667 | ) | (1,007 | ) | |||
Excess tax benefits from share-based compensation | (1,729 | ) | 131 | ||||
Net cash provided by (used in) financing activities | 6,841 | (98,566 | ) | ||||
Net decrease in cash and equivalents | (8,013 | ) | (997 | ) | |||
Cash and equivalents at the beginning of the period | 12,896 | 6,358 | |||||
Cash and equivalents at the end of the period | $ | 4,883 | $ | 5,361 |
Fiscal 2017 | Fiscal 2016 | ||||||||||
Total | Pricing / Mix | Transactions | Total | Pricing / Mix | Transactions | ||||||
May | (2.8)% | 1.2% | (4.0)% | (0.3)% | 3.9% | (4.2)% | |||||
June | (6.1)% | 1.2% | (7.3)% | (0.9)% | 4.4% | (5.3)% | |||||
July | (4.1)% | 1.1% | (5.2)% | 0.3% | 5.8% | (5.5)% | |||||
Q1 | (4.3)% | 1.2% | (5.5)% | (0.3)% | 4.8% | (5.0)% | |||||
August | (2.0)% | 1.1% | (3.1)% | (1.3)% | 3.3% | (4.6)% | |||||
September | (2.0)% | 0.8% | (2.8)% | (3.8)% | 2.9% | (6.6)% | |||||
October | (1.4)% | 1.2% | (2.6)% | (4.4)% | 1.5% | (5.8)% | |||||
Q2 | (1.8)% | 1.0% | (2.8)% | (3.2)% | 2.5% | (5.7)% | |||||
November | (3.2)% | 2.5% | (5.6)% | ||||||||
December | (4.3)% | 3.4% | (7.7)% | ||||||||
January | (3.4)% | 3.1% | (6.5)% | ||||||||
Q3 | (3.6)% | 2.9% | (6.5)% | ||||||||
February | (1.1)% | 0.9% | (2.0)% | ||||||||
March | (2.3)% | 2.2% | (4.5)% | ||||||||
April | (4.9)% | 1.4% | (6.3)% | ||||||||
Q4 | (3.0)% | 1.5% | (4.4)% | ||||||||
Fiscal Year | (3.1)% | 1.1% | (4.1)% | (2.5)% | 2.9% | (5.4)% |
Second-quarter Fiscal 2017 SSS% Day Part Performance - Total Chain | ||||||
Day Part | On-Premises | Off-Premises | Total | |||
Breakfast | (0.7)% | 6.5% | 0.1% | |||
Lunch | (1.6)% | (0.2)% | (1.5)% | |||
Dinner | (4.4)% | (2.6)% | (4.1)% | |||
Total | (2.1)% | 0.2% | (1.8)% |
Bob Evans Restaurants | |||
Average annual store sales ($) - FY17 | $1.7 million | ||
Q2 FY2017 day part mix (%): | |||
Breakfast | 33 | % | |
Lunch | 36 | % | |
Dinner | 31 | % | |
Q2 FY2017 dine-in check average per guest ($): | |||
Breakfast | $ | 9.52 | |
Lunch | $ | 9.83 | |
Dinner | $ | 9.81 | |
Q2 FY2017 dine-in check average per guest ($): | $ | 9.72 | |
Q2 FY2017 dine-in check average per ticket ($): | $ | 18.78 | |
Q2 FY2017 carry-out check average per ticket ($): | $ | 16.50 |
BEF Foods total pounds sold, by category | ||||||||||
Fiscal 2017 | ||||||||||
Category | Q1 | Q2 | Q3 | Q4 | YTD | |||||
Sides | 51.4% | 52.5% | 51.9% | |||||||
Sausage | 21.2% | 21.9% | 21.6% | |||||||
Food Service - External | 11.6% | 10.7% | 11.1% | |||||||
Food Service - Intersegment | 8.3% | 9.0% | 8.7% | |||||||
Frozen | 3.9% | 3.4% | 3.7% | |||||||
Other | 3.6% | 2.5% | 3.0% | |||||||
Fiscal 2016 | ||||||||||
Category | Q1 | Q2 | Q3 | Q4 | FY 2016 | |||||
Sides | 49.6% | 50.7% | 50.9% | 51.4% | 50.7% | |||||
Sausage | 22.0% | 22.3% | 26.6% | 21.7% | 23.3% | |||||
Food Service - External | 14.1% | 12.5% | 10.4% | 11.4% | 11.9% | |||||
Food Service - Intersegment | 6.2% | 6.6% | 6.0% | 8.1% | 6.7% | |||||
Frozen | 4.6% | 4.5% | 3.1% | 3.9% | 4.0% | |||||
Other | 3.5% | 3.4% | 3.0% | 3.5% | 3.4% |