-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, PAJ8Js0BJjsx7Ku3wNQCVyA2Iz7TtAqXL0E9omsg3hl6hPrEyDBIsXjb1TnVmiMj Jq7v1Oz/DLn95bbxrOLXOw== 0000891082-98-000021.txt : 19981119 0000891082-98-000021.hdr.sgml : 19981119 ACCESSION NUMBER: 0000891082-98-000021 CONFORMED SUBMISSION TYPE: 10-Q/A PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19980927 FILED AS OF DATE: 19981118 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TACO CABANA INC CENTRAL INDEX KEY: 0000891082 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-EATING PLACES [5812] IRS NUMBER: 742201241 STATE OF INCORPORATION: DE FISCAL YEAR END: 1228 FILING VALUES: FORM TYPE: 10-Q/A SEC ACT: SEC FILE NUMBER: 000-20716 FILM NUMBER: 98754876 BUSINESS ADDRESS: STREET 1: 8918 TESORO DRIVE STREET 2: SUITE 200 CITY: SAN ANTONIO STATE: TX ZIP: 78217-6219 BUSINESS PHONE: 2108040990 MAIL ADDRESS: STREET 1: 3309 SAN PEDRO AVE STREET 2: SUITE 200 CITY: SAN ANTONIO STATE: TX ZIP: 78212 10-Q/A 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. FORM 10-Q/A Amendment No. 1 to Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 27, 1998 Commission File Number: 0-20716 TACO CABANA, INC. (Exact name of registrant as specified in its charter) DELAWARE 74-2201241 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification Number) 8918 Tesoro Dr., Suite 200 San Antonio, Texas 78217 (Address of principal executive offices) (210) 804-0990 (Registrant's telephone number, including area code) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days: Yes X No Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date: Class Outstanding at October 30, 1998 Common Stock 13,633,150 shares TACO CABANA, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) December 28, September 27, 1997 1998 ------------ ----------- ASSETS CURRENT ASSETS: Cash and cash equivalents................. $ 339,000 $ 803,000 Receivables, net.......................... 502,000 316,000 Inventory................................. 2,105,000 2,287,000 Prepaid expenses.......................... 1,704,000 3,616,000 Federal income taxes receivable........... 200,000 200,000 ----------- ----------- Total current assets...................... 4,850,000 7,222,000 PROPERTY AND EQUIPMENT, net............... 59,540,000 68,784,000 NOTES RECEIVABLE.......................... 344,000 292,000 INTANGIBLE ASSETS, net.................... 11,293,000 10,864,000 OTHER ASSETS.............................. 233,000 204,000 ----------- ----------- TOTAL.....................................$76,260,000 $87,366,000 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable.......................... $4,430,000 $3,838,000 Accrued liabilities....................... 6,266,000 6,046,000 Current maturities of long-term debt and capital leases........................ 1,573,000 2,105,000 Line of credit............................ 4,223,000 4,270,000 ----------- ----------- Total current liabilities................. 16,492,000 16,259,000 LONG-TERM OBLIGATIONS, net of current maturities: Capital leases............................ 2,357,000 2,196,000 Long-term debt............................ 11,170,000 19,774,000 ----------- ----------- Total long-term obligations............... 13,527,000 21,970,000 ACQUISITION AND CLOSED RESTAURANT LIABILITIES............................... 9,126,000 9,433,000 DEFERRED LEASE PAYMENTS................... 702,000 771,000 STOCKHOLDERS' EQUITY: Common stock.............................. 157,000 157,000 Additional paid-in capital................ 97,095,000 97,315,000 Retained deficit..........................(57,278,000)(49,230,000) Treasury stock, at cost (871,937 shares at December 28, 1997 and 1,862,437 shares at September 27, 1998)........... (3,561,000) (9,309,000) ----------- ----------- Total stockholders' equity.............. 36,413,000 38,933,000 ----------- ----------- TOTAL.....................................$76,260,000 $87,366,000 =========== =========== See Notes to Condensed Consolidated Financial Statements. TACO CABANA, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) For the Thirteen Weeks Ended ---------------------------- September 28,September 27, 1997 1998 ------------- ------------- REVENUES: Restaurant sales.......................... $34,967,000 $36,176,000 Franchise fees and royalty income......... 84,000 94,000 ----------- ----------- Total revenues............................ 35,051,000 36,270,000 ----------- ----------- COSTS AND EXPENSES: Restaurant cost of sales.................. 10,873,000 11,102,000 Labor..................................... 9,794,000 9,599,000 Occupancy................................. 2,123,000 1,966,000 Other restaurant operating costs.......... 6,899,000 6,259,000 General and administrative................ 1,515,000 1,911,000 Depreciation, amortization and restaurant opening costs............................. 2,698,000 1,995,000 ----------- ----------- Total costs and expenses.................. 33,902,000 32,832,000 ----------- ----------- INCOME FROM OPERATIONS.................... 1,149,000 3,438,000 ----------- ----------- INTEREST EXPENSE, NET..................... (256,000) (543,000) ----------- ----------- INCOME BEFORE INCOME TAXES................ 893,000 2,895,000 PROVISION FOR INCOME TAXES................ (331,000) - ----------- ----------- NET INCOME................................ $562,000 $2,895,000 =========== =========== BASIC EARNINGS PER SHARE.................. $ 0.04 $ 0.20 =========== =========== BASIC WEIGHTED SHARES OUTSTANDING......... 15,036,811 14,186,259 =========== =========== DILUTED EARNINGS PER SHARE................ $ 0.04 $ 0.20 =========== =========== DILUTED WEIGHTED SHARES OUTSTANDING....... 15,108,018 14,305,200 =========== =========== See Notes to Condensed Consolidated Financial Statements. TACO CABANA, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) For the Thirty-Nine weeks Ended ------------------------------- September 28,September 27, 1997 1998 ------------- ------------ REVENUES: Restaurant sales.......................... $99,171,000 $104,704,000 Franchise fees and royalty income......... 267,000 265,000 ----------- ------------ Total revenues............................ 99,438,000 104,969,000 ----------- ------------ COSTS AND EXPENSES: Restaurant cost of sales.................. 30,607,000 31,723,000 Labor..................................... 27,173,000 28,009,000 Occupancy................................. 6,222,000 5,830,000 Other restaurant operating costs.......... 18,650,000 18,355,000 General and administrative................ 5,089,000 5,777,000 Depreciation, amortization and restaurant opening costs............................. 7,758,000 5,837,000 ----------- ----------- Total costs and expenses.................. 95,499,000 95,531,000 ----------- ----------- INCOME FROM OPERATIONS.................... 3,939,000 9,438,000 ----------- ----------- INTEREST EXPENSE, NET..................... (772,000) (1,389,000) ----------- ----------- INCOME BEFORE FOR INCOME TAXES............ 3,167,000 8,049,000 PROVISION FOR INCOME TAXES................ (1,172,000) - ----------- ----------- NET INCOME................................ $1,995,000 $8,049,000 =========== =========== BASIC EARNINGS PER SHARE.................. $ 0.13 $ 0.55 =========== =========== BASIC WEIGHTED SHARES OUTSTANDING......... 15,474,687 14,593,555 =========== =========== DILUTED EARNINS PER SHARE................. $ 0.13 $ 0.55 =========== =========== DILUTED WEIGHTED SHARES OUTSTANDING....... 15,555,680 14,746,499 =========== =========== See Notes to Condensed Consolidated Financial Statements TACO CABANA, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) For the Thirty-Nine weeks Ended ------------------------------- September 28,September 27, 1997 1998 ------------ ------------ CASH FLOWS FROM OPERATING ACTIVITIES: Net income................................ $1,995,000 $8,049,000 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization......... 7,758,000 5,375,000 Deferred income taxes................. 2,313,000 - Capitalized interest.................. (88,000) (94,000) Deferred lease payments............... (114,000) 69,000 Changes in operating working capital items............................... (2,188,000) (2,637,000) ---------- ----------- Net cash provided by operating activities. 9,676,000 10,762,000 ---------- ----------- CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property and equipment........(12,838,000)(16,987,000) Proceeds from the sale of property and equipment............................... 1,379,000 3,195,000 ---------- ----------- Net cash used for investing activities....(11,459,000)(13,792,000) ---------- ----------- CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of notes payable and draws on line of credit............. 13,173,000 11,130,000 Principal payments under long-term debt and line of credit...................... (8,213,000) (1,967,000) Principal payments under capital leases... (146,000) (141,000) Purchase of treasury stock................ (3,561,000) (5,748,000) Exercise of stock options................. - 220,000 ---------- ----------- Net cash provided by financing activities. 1,253,000 3,494,000 ---------- ----------- NET (DECREASE) INCREASE IN CASH........... (530,000) 464,000 CASH AND CASH EQUIVALENTS, beginning of period.................................. 748,000 339,000 ---------- ----------- CASH AND CASH EQUIVALENTS, end of period.. $218,000 $803,000 ========== =========== See Notes to Condensed Consolidated Financial Statements. TACO CABANA, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 1. Basis of Presentation Principles of Consolidation - The consolidated financial statements include all accounts of Taco Cabana, Inc. and its wholly-owned subsidiaries (the Company). All significant intercompany balances and transactions have been eliminated. The unaudited Condensed Consolidated Financial Statements include all adjustments, consisting of normal, recurring adjustments and accruals, which the Company considers necessary for fair presentation of financial position and the results of operations for the periods presented. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. The interim financial statements should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended December 28, 1997. Recently Issued Accounting Pronouncements: In April 1998, the Accounting Standards Executive Committee of the American Institute of Certified Public Accountants (AICPA) issued Statement of Position 98-5, "Reporting on the Costs of Start-Up Activities". The accounting standard requires entities to expense as incurred all start-up and preopening costs that are not otherwise capitalizable as long-lived assets. The accounting standard is effective for fiscal years beginning after December 15, 1998, with earlier application encouraged. The Company adopted the accounting standard during the first quarter of 1998. The cumulative effect of the change in the accounting principle is not material to the results of operations or financial position of the Company. 2. Earnings per Share Basic earnings per share was computed by dividing income available to common stockholders by the weighted average number of common shares outstanding for the reporting period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. Outstanding stock options issued by the Company represent the only dilutive effect reflected in diluted weighted average shares. All earnings per share amounts for all periods have been presented, and where necessary, restated to conform to the Statement of Financial Accounting Standards No. 128, Earnings per Share. The following table sets forth the computation of basic and diluted earnings per share: 13 Weeks Ended 39 Weeks Ended -------------- -------------- September 28, September 27, September 28, September 27, 1997 1998 1997 1998 ------------ ------------ ------------ ------------ Numerator for basic and diluted earnings per share - net income... $562,000 $2,895,000 $1,995,000 $8,049,000 Denominator for basic earnings per share: Weighted-average shares.......... 15,036,811 14,186,259 15,474,687 14,593,555 Effect of dilutive securities: Employee stock options 71,207 118,941 80,993 152,944 ---------- ---------- ---------- ---------- Denominator for diluted earnings per share: Adjusted weighted-average and assumed conversions.......... 15,108,018 14,305,200 15,555,680 14,746,499 ========== ========== ========== ========== Basic earnings per share............ $ 0.04 $ 0.20 $ 0.13 $ 0.55 ========== ========== ========== ========== Diluted earnings per share............ $ 0.04 $ 0.20 $ 0.13 $ 0.55 ========== ========== ========== ========== 3. Supplemental Disclosure of Cash Flow Information Thirty-nine weeks Ended ----------------------- September 28, September 27, ------------ ------------- 1997 1998 ------------ ------------- (Unaudited) (Unaudited) Cash paid for interest ......... $ 890,000 $1,313,000 Interest capitalized on construction costs ........... 88,000 94,000 Cash paid for income taxes ..... 74,000 - Cash received for income taxes . 4,000 - Item 6. Exhibits and Reports on Form 8-K Exhibit 27 Financial Data Schedule. Filed with EDGAR version.* Amended Financial Statements.** No reports on Form 8-K were filed during the period covered by this report. - -------------------- * Filed previously. ** Filed herewith. Signature Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this amendment to be signed on its behalf by the undersigned thereunto duly authorized. Dated: November 18, 1998 Taco Cabana, Inc. /s/David G. Lloyd ---------------------------------------------- David G. Lloyd Senior Vice President, Chief Financial Officer, Secretary and Treasurer Signing on behalf of the registrant and as the principal financial and accounting officer -----END PRIVACY-ENHANCED MESSAGE-----