HOUSTON, April 19, 2017 /PRNewswire/ -- Luby's, Inc. (NYSE: LUB) ("Luby's") today announced unaudited financial results for its twelve-week second quarter fiscal 2017, which ended on March 15, 2017. Comparisons in this press release for the second quarter fiscal 2017 are referred to as "second quarter."

Second Quarter Key Metrics


    --  Opened three Fuddruckers franchise locations: one domestic and two
        international locations
    --  Capital expenditures decreased $2.2 million in the second quarter
        compared to the second quarter fiscal 2016
    --  Same-store sales decreased 3.8%

Chris Pappas, President and CEO, commented, "During the second quarter we achieved improved cost controls and reduced our capital expenditures as previously planned. Going forward we will continue our efforts to control costs while remaining focused on an enhanced guest experience across all of our brands in a reduced sales environment. In addition, we continue to evaluate under-performing store locations and, when appropriate, close stores to improve overall company profitability.

"We opened three Fuddruckers franchise locations in the second quarter and one new company-owned location earlier this month in our third quarter of fiscal 2017. In December, we announced a new and exclusive partnership with H-E-B grocery stores in the state of Texas to sell Luby's famous Mac & Cheese. We then expanded our retail product line to include Luby's famous Fried Fish in February. We remain encouraged by the sales of these dishes and for the opportunity this additional product branding establishes for our company. We remain optimistic in our ability to demonstrate financial improvement and to strengthen our iconic brands that guests have loved and trusted for decades."



    Same-Store Sales Year-Over-Year Comparison


                                                    Quarter Ended              Two Quarters
                                                                                   Ended
                                                                                   -----

                                                    December 21,                 March 15,              March 15,
                                                                     2016                    2017                            2017
                                                                     ----                    ----                            ----

                                                         Q1                         Q2                    YTD Q2

                                                                  2017(3)                 2017(3)                         2017(3)
                                                                   ------                  ------                          ------

                                               (16 weeks vs 16 weeks)     (12 weeks vs 12 weeks)  (28 weeks vs 28 weeks)
                                                ---------------------     ----------------------  ---------------------

    Luby's Cafeterias                                              (2.2)%                 (4.4)%                         (3.1)%
    -----------------                                               -----                   -----                           -----

    Fuddruckers
     Restaurants                                                   (1.6)%                 (1.1)%                         (1.4)%
                                                                    -----                   -----                           -----

    Combo locations (1)                                            (2.3)%                 (6.5)%                         (4.3)%
    ------------------                                              -----                   -----                           -----

    Cheeseburger in
     Paradise                                                      (7.8)%                 (7.3)%                         (7.6)%
    ---------------                                                 -----                   -----                           -----

    Total same-store
     sales (2)                                                     (2.3)%                 (3.8)%                         (2.9)%
    ----------------                                                -----                   -----                           -----



    (1)              Combo locations consist of a side-
                     by-side Luby's Cafeteria and
                     Fuddruckers Restaurant at one
                     property location.

    (2)              Luby's includes a restaurant's
                     sales results into the same-store
                     sales calculation in the quarter
                     after that store has been open for
                     six complete consecutive quarters.
                     In the second quarter, there were
                     86 Luby's Cafeterias, 58
                     Fuddruckers locations, all 6 Combo
                     locations, and all 8 Cheeseburger
                     in Paradise locations that met the
                     definition of same-stores.

    (3)              Q1 2017, Q2 2017, and Year-to-
                     date Fiscal  2017 same-store
                     sales reflect the change in
                     restaurant sales for the locations
                     included in the same-store
                     grouping for each of the
                     comparable periods.


    Second Quarter Restaurant
     Sales:

    ($ thousands)


                                   Quarter Ended

    Restaurant Brand  March 15,       March 9,   Change           Change
                              2017          2016
                                                  ($)              (%)
    ---                                           ---              ---

                      (12 weeks)     (12 weeks)   (12 weeks vs 12 weeks)
                      ---------      ---------     ---------------------

    Luby's Cafeterias                   $49,975                          $52,915          $(2,940) (5.6)%
    -----------------                   -------                          -------           -------   -----

    Fuddruckers             22,860                   24,567               (1,707) (6.9)%
    -----------             ------                   ------                ------   -----

    Combo locations          4,951                    5,295                 (344) (6.5)%
    ---------------          -----                    -----                  ----   -----

    Cheeseburger in
     Paradise                3,278                    3,537                 (259) (7.3)%
    ---------------          -----                    -----                  ----   -----

    Total Restaurant
     Sales                              $81,064                          $86,314          $(5,250) (6.1)%
    ----------------                    -------                          -------           -------   -----

    --  Restaurant sales in the second quarter decreased to $81.1 million, a
        decrease of 6.1% versus the second quarter fiscal 2016.
        --  Luby's Cafeterias sales decreased $2.9 million versus the second
            quarter fiscal 2016, due to the closure of two locations over the
            prior year and a 4.4%  decrease in Luby's same-store sales. The 4.4%
            decrease was the result of a 6.6% decrease in guest traffic
            partially offset by a 2.2% increase in average spend per guest
            primarily due to a modest price increase and reduced discounting.
        --  Fuddruckers sales at company-owned restaurants decreased $1.7
            million versus the second quarter fiscal 2016, due to six restaurant
            closings over the prior year and a 1.1% decrease in same-store
            sales, offset by the opening of three company-owned Fuddruckers
            locations over the prior year.  The 1.1% decrease in same-store
            sales was the result of a 2.8% decrease in guest traffic offset by a
            3.9% increase in average spend per guest.
        --  Combo location sales decreased $0.3 million and represented 6.1% of
            total restaurant sales in the second quarter. Approximately half of
            the decline in sales occurred at one Combo location.   Two of the
            six Combo locations increased sales by 2.2% and 3.4%, respectively.
        --  Cheeseburger in Paradise sales decreased $0.3 million, or 7.3%,
            compared to a significant prior year same-store sales increase of
            4.2%.
    --  Store level profit, defined as restaurant sales plus vending revenue
        less cost of food, payroll and related costs, other operating expenses,
        and occupancy costs, was $10.2 million, or 12.6% of restaurant sales, in
        the second quarter compared to $12.7 million, or 14.8% of restaurant
        sales, during the second quarter fiscal 2016. While cost controls were
        more efficient in labor scheduling, food cost management, and certain
        restaurant operation costs, the lower overall sales volumes led to the
        decrease in store level profitability.  Store level profit is a non-GAAP
        measure, and reconciliation to income from continuing operations is
        presented after the financial statements.
    --  Culinary Contract Services revenues decreased to $3.3 million with 23
        operating locations during the second quarter compared to $3.9 million
        with 28 operating locations during the second quarter fiscal 2016.
        Culinary Contract Services profit margin increased to 10.5% of Culinary
        Contract Services sales in the second quarter compared to 10.2% in the
        second quarter fiscal 2016.
    --  Franchise revenue increased $119 thousand, or 7.0%, in the second
        quarter compared to the second quarter fiscal 2016. The increase
        included (1) an approximate $291 thousand increase in non-royalty
        related fee income in realized franchise development fees, partially
        offset by (2) an approximate $172 thousand decrease in franchise
        royalties due in part to the closure of certain franchise locations,
        lower international royalty income, and same-store sales declines at
        franchise locations, partially offset by the opening of new franchise
        locations. In the second quarter, franchisees opened two international
        locations (in Canada and Panama) and one domestic location (in Nevada).
        Two locations also closed during the second quarter.
    --  Loss from continuing operations was $12.8 million, or a loss of  $0.44
        per diluted share, compared to a loss of $0.6 million, or a loss of
        $0.02 per diluted share, in the second quarter fiscal 2016. Excluding
        special non-cash items, loss from continuing operations was $2.1
        million, or a loss of $0.07 per diluted share, in the second quarter
        compared to a loss of $0.9 million, or a loss of $0.03 per diluted
        share, in the second quarter fiscal 2016.  Loss from continuing
        operations, excluding special items, is a non-GAAP measure, and
        reconciliation to loss from continuing operations is presented below.


    Reconciliation of Loss from continuing
     operations to Loss from continuing
     operations,

    before special items (1,2):


                             Q2 FY2017                        Q2 FY2016

    Item             Amount                 Per Share  Amount     Per Share
                    ($000s)                    ($)    ($000s)        ($)
    ---              ------

    Loss from
     continuing
     operations                     $(12,836)                          $(0.44)           $(582)       $(0.02)

    Net loss (gain)
     on disposition
     of property
     and equipment,
     and provision
     for asset
     impairments
     and restaurant
     closings, net          4,153                        0.14                  (343)       (0.01)

    Deferred tax
     asset
     valuation
     allowance                         $6,627                    0.22                  -            -
    ------------                       ------                    ----                ---          ---

    Loss from
     continuing
     operations,
     before special
     items                           $(2,056)                          $(0.07)           $(925)       $(0.03)



    (1)              We use loss from continuing
                     operations, before special
                     items, in analyzing results,
                     which is a non-GAAP financial
                     measure. This information
                     should be considered in
                     addition to the results
                     presented in accordance with
                     GAAP, and should not be
                     considered a substitute for the
                     GAAP results. Luby's has
                     reconciled loss from continuing
                     operations, before special
                     items, to loss from continuing
                     operations, the nearest GAAP
                     measure in context.

    (2)              Per share amounts are per
                     diluted share after tax
                     (adjustments assume an
                     effective 34% tax rate).

Balance Sheet and Capital Expenditures

We ended the second quarter with a debt balance outstanding of $37.4 million, up from $37.0 million at the end of fiscal 2016. During the second quarter, our capital expenditures decreased to $3.0 million, compared to $5.2 million in the second quarter fiscal 2016. At the end of the second quarter, we had $1.4 million in cash and $147.9 million in total shareholders' equity.


    Restaurant Counts:


                               August  FY17 YTD   FY17 YTD   March
                                 31,                           15,
                                  2016     Q2         Q2        2017
                                       Openings   Closings
                                       --------   --------

    Luby's Cafeterias(1)            91          -          -      91

    Fuddruckers Restaurants(1)      75          -        (2)      73

    Cheeseburger in Paradise         8          -          -       8

    Other restaurants(2)             1          -          -       1
                                   ---        ---        ---     ---

    Total                          175          -        (2)     173
                                   ===        ===        ===      ===



    (1)               Includes 6 restaurants that
                       are part of Combo locations

    (2)               Other restaurants include one
                       Bob Luby's Seafood Grill

Conference Call

Luby's will host a conference call on April 19, 2017 at 4:30 p.m. Central Time to discuss further its second quarter fiscal 2017 results. To access the call live, dial (412) 902-0030 and use the access code 13658969# 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 April 26, 2017 and may be accessed by calling (201) 612-7415 and using the access code 13658969#. 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 172 restaurants nationally as of April 19, 2017: 90 Luby's Cafeterias, 73 Fuddruckers, 8 Cheeseburger in Paradise and one Bob Luby's Seafood Grill. Luby's is the franchisor for 113 Fuddruckers franchise locations across the United States (including Puerto Rico), Canada, Mexico, Italy, the Dominican Republic, 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 23 sites consisting of healthcare 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
Rick Black / Ken Dennard
Investor Relations
713-529-6600


                                                                                  Luby's, Inc.

                                                                Consolidated Statements of Operations (unaudited)
                                                                ------------------------------------------------

                                                                      (In thousands, except per share data)


                                              Quarter Ended                                   Two Quarters Ended

                                          March 15,                     March 9,                                  March 15,        March 9,
                                                     2017                      2016                                           2017          2016
                                                     ----                      ----                                           ----          ----

                                         (12 weeks)                     (12 weeks)                                (28 weeks)       (28 weeks)

    SALES:

    Restaurant sales                                          $81,064                                           $86,314                  $189,147    $199,861

    Culinary contract
     services                                       3,306                     3,918                                          7,602         8,833

    Franchise revenue                               1,819                     1,700                                          3,691         3,825

    Vending revenue                                   125                       137                                            284           295
                                                      ---                       ---                                            ---           ---

    TOTAL SALES                                    86,314                    92,069                                        200,724       212,814

    COSTS AND EXPENSES:

    Cost of food                                   22,583                    24,600                                         53,433        57,034

    Payroll and related
     costs                                         29,295                    29,834                                         67,968        69,258

    Other operating
     expenses                                      13,763                    13,736                                         33,411        32,157

    Occupancy costs                                 5,322                     5,535                                         11,797        12,177

    Opening costs                                     132                       174                                            298           571

    Cost of culinary
     contract services                              2,960                     3,520                                          6,771         7,942

    Cost of franchise
     operations                                       436                       428                                          1,016         1,039

    Depreciation and
     amortization                                   4,788                     5,220                                         11,338        12,235

    Selling, general and
     administrative
     expenses                                       9,008                     9,843                                         22,767        23,086

    Provision for asset
     impairments and
     restaurant
     closings, net                                  5,963                        37                                          6,250            37

    Net loss (gain) on
     disposition of
     property and
     equipment                                        329                     (556)                                           414         (835)
                                                      ---                      ----                                            ---          ----

    Total costs and
     expenses                                      94,579                    92,371                                        215,463       214,701
                                                   ------                    ------                                        -------       -------

    LOSS FROM OPERATIONS                          (8,265)                    (302)                                       (14,739)      (1,887)

    Interest income                                     1                         1                                              3             2

    Interest expense                                (727)                    (495)                                        (1,330)      (1,191)

    Other income
     (expense), net                                 (242)                       29                                           (139)         (90)
                                                     ----                       ---                                           ----           ---

    Loss before income
     taxes and
     discontinued
     operations                                   (9,233)                    (767)                                       (16,205)      (3,166)

    Provision (benefit)
     for income taxes                               3,603                     (185)                                         2,145         (845)
                                                    -----                      ----                                          -----          ----

    Loss from continuing
     operations                                  (12,836)                    (582)                                       (18,350)      (2,321)

    Loss from
     discontinued
     operations, net of
     income taxes                                   (343)                     (17)                                          (415)         (89)
                                                     ----                       ---                                           ----           ---

    NET LOSS                                                $(13,179)                                           $(599)                $(18,765)   $(2,410)
                                                             --------                                             -----                  --------     -------

    Loss per share from continuing
     operations:

    Basic                                                     $(0.44)                                          $(0.02)                  $(0.62)    $(0.08)

    Assuming dilution                                         $(0.44)                                          $(0.02)                  $(0.62)    $(0.08)
                                                               ======                                            ======                    ======      ======

    Loss per share from discontinued
     operations:

    Basic                                                     $(0.01)                                          $(0.00)                  $(0.02)    $(0.00)

    Assuming dilution                                         $(0.01)                                          $(0.00)                  $(0.02)    $(0.00)
                                                               ======                                            ======                    ======      ======

    Net loss per share:

    Basic                                                     $(0.45)                                          $(0.02)                  $(0.64)    $(0.08)

    Assuming dilution                                         $(0.45)                                          $(0.02)                  $(0.64)    $(0.08)
                                                               ======                                            ======                    ======      ======

    Weighted average shares outstanding:

    Basic                                          29,522                    29,247                                         29,418        29,182

    Assuming dilution                              29,522                    29,247                                         29,418        29,182

The following table contains information derived from the Company's Consolidated Statements of Operations expressed as a percentage of sales. Percentages may not total due to rounding.


                            Quarter Ended             Two Quarters Ended

                        March 15,         March 9,              March 15,     March 9,
                              2017               2016                   2017          2016
                              ----               ----                   ----          ----

                        (12 weeks)        (12 weeks)            (28 weeks)   (28 weeks)


    Restaurant sales         93.9%                      93.7%                     94.2%     93.9%

    Culinary contract
     services                 3.8%                       4.3%                      3.8%      4.2%

    Franchise revenue         2.1%                       1.8%                      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             27.9%                      28.5%                     28.2%     28.5%

    Payroll and related
     costs                   36.1%                      34.6%                     35.9%     34.7%

    Other operating
     expenses                17.0%                      15.9%                     17.7%     16.1%

    Occupancy costs           6.6%                       6.4%                      6.2%      6.1%

    Vending revenue         (0.2)%                     (0.2)%                    (0.2)%    (0.1)%
                             -----                       -----                      -----      -----

    Store level profit       12.6%                      14.8%                     12.1%     14.8%


    (As a percentage of
     total sales)

    Marketing and
     advertising
     expenses                 1.7%                       1.6%                      1.9%      1.6%

    General and
     administrative
     expenses                 8.7%                       9.1%                      9.4%      9.2%
                               ---                         ---                        ---        ---

    Selling, general
     and administrative
     expenses                10.4%                      10.7%                     11.3%     10.8%

    LOSS FROM
     OPERATIONS             (9.6)%                     (0.3)%                    (7.3)%    (0.9)%


                                                      Luby's, Inc.

                                              Consolidated Balance Sheets
                                              ---------------------------

                                         (In thousands, except per share data)


                                                             March 15,                     August 31,
                                                                             2017                 2016
                                                                             ----                 ----

                                                            (Unaudited)

    ASSETS

    Current Assets:

    Cash and cash equivalents                                                       $1,352               $1,339

    Trade accounts and other
     receivables, net                                                       5,389                5,919

    Food and supply inventories                                             4,589                4,596

    Prepaid expenses                                                        3,035                3,147

    Assets related to
     discontinued operations                                                    -                   1

    Deferred income taxes                                                     255                  540
                                                                              ---                  ---

    Total current assets                                                   14,620               15,542

    Property held for sale                                                  3,929                5,522

    Assets related to
     discontinued operations                                                2,830                3,192

    Property and equipment, net                                           185,067              193,218

    Intangible assets, net                                                 20,298               21,074

    Goodwill                                                                1,068                1,605

    Deferred income taxes                                                   7,011                8,738

    Other assets                                                            3,278                3,334
                                                                            -----                -----

    Total assets                                                                  $238,101             $252,225
                                                                                  ========             ========

    LIABILITIES AND SHAREHOLDERS' EQUITY

    Current Liabilities:

    Accounts payable                                                               $18,311              $17,539

    Liabilities related to
     discontinued operations                                                  387                  412

    Current portion of credit
     facility debt                                                          2,450                    -

    Accrued expenses and other
     liabilities                                                           26,321               23,752
                                                                           ------               ------

    Total current liabilities                                              47,469               41,703

    Credit facility debt, less
     current portion                                                       34,617               37,000

    Liabilities related to
     discontinued operations                                                   16                   17

    Other liabilities                                                       8,141                7,752
                                                                            -----                -----

    Total liabilities                                                              $90,243              $86,472
                                                                                   =======              =======

    Commitments and Contingencies

    SHAREHOLDERS' EQUITY

    Common stock, $0.32 par
     value; 100,000,000 shares
     authorized; shares issued
     were 29,566,355 and
     29,440,041, respectively;
     shares outstanding were
     29,066,355 and 28,940,041,
     respectively                                                           9,461                9,421

    Paid-in capital                                                        31,178               30,348

    Retained earnings                                                     111,994              130,759

    Less cost of treasury
     stock, 500,000 shares                                                (4,775)             (4,775)
                                                                           ------               ------

       Total shareholders' equity                                         147,858              165,753
                                                                          -------              -------

    Total liabilities and
     shareholders' equity                                                         $238,101             $252,225
                                                                                  ========             ========


                                              Luby's, Inc.

                            Consolidated Statements of Cash Flows (unaudited)
                            ------------------------------------------------

                                             (In thousands)


                                                      Two Quarters Ended

                                                    March 15,                   March 9,
                                                               2017                    2016
                                                               ----                    ----

                                                   (28 weeks)                   (28 weeks)

    CASH FLOWS FROM OPERATING ACTIVITIES:

    Net loss                                                          $(18,765)               $(2,410)

    Adjustments to reconcile net loss to
     net cash provided by operating
     activities:

    Provision for asset
     impairments and net
     (gains) on property
     sales                                                    6,664                   (798)

    Depreciation and
     amortization                                            11,338                  12,250

    Amortization of debt
     issuance cost                                              283                     202

    Share-based
     compensation expense                                       870                     803

    Deferred tax
     provision (benefit)                                      2,399                 (1,247)
                                                              -----                  ------

    Cash provided by
     operating activities
     before changes in
     operating assets and
     liabilities                                              2,789                   8,800

    Changes in operating assets and
     liabilities:

    Decrease (Increase)
     in trade accounts
     and other
     receivables                                                530                   (214)

    Decrease (Increase)
     in food and supply
     inventories                                                  7                   (805)

    Decrease in prepaid
     expenses and other
     assets                                                     210                     381

    Increase (Decrease)
     in accounts payable,
     accrued expenses and
     other liabilities                                        3,067                   (971)
                                                              -----                    ----

    Net cash provided by
     operating activities                                     6,603                   7,191
                                                              -----                   -----

    CASH FLOWS FROM INVESTING ACTIVITIES:

    Proceeds from
     disposal of assets
     and property held
     for sale                                                 1,631                   4,167

    Decrease in notes
     receivable                                                   -                     17

    Purchases of property
     and equipment                                          (7,962)               (10,970)
                                                             ------                 -------

    Net cash used in
     investing activities                                   (6,331)                (6,786)
                                                             ------                  ------

    CASH FLOWS FROM FINANCING ACTIVITIES:

    Revolver borrowings                                      65,700                  50,700

    Revolver repayments                                    (99,700)               (51,200)

    Proceeds from term
     loan                                                    35,000                       -

    Term loan repayments                                      (613)                      -

    Debt issuance costs                                       (646)                   (42)

    Proceeds received on
     the exercise of
     employee stock
     options                                                      -                     75
                                                                ---                    ---

    Net cash used in
     financing activities                                     (259)                  (467)
                                                               ----                    ----

    Net increase
     (decrease) in cash
     and cash equivalents                                        13                    (62)

    Cash and cash
     equivalents at
     beginning of period                                      1,339                   1,501
                                                              -----                   -----

    Cash and cash
     equivalents at end
     of period                                                           $1,352                  $1,439
                                                                         ======                  ======

    Cash paid for:

    Income taxes                                                  $           -             $        -

    Interest                                                    679                     951

Although store level profit, defined as restaurant sales plus vending revenue, 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                       Two Quarters Ended

                          March 15,                   March 9,                          March 15,      March 9,
                                     2017                    2016                                 2017       2016
                                     ----                    ----                                 ----       ----

                         (12 weeks)                   (12 weeks)                        (28 weeks)     (28 weeks)


    Store level profit                        $10,226                               $12,746                $22,822     $29,530


    Plus:

    Sales from culinary
     contract services              3,306                   3,918                                7,602      8,833

    Sales from franchise
     operations                     1,819                   1,700                                3,691      3,825


    Less:

    Opening costs                     132                     174                                  298        571

    Cost of culinary
     contract services              2,960                   3,520                                6,771      7,942

    Cost of franchise
     operations                       436                     428                                1,016      1,039

    Depreciation and
     amortization                   4,788                   5,220                               11,338     12,235

    Selling, general and
     administrative
     expenses                       9,008                   9,843                               22,767     23,086

    Provision for asset
     impairments and
     restaurant
     closings, net                  5,963                      37                                6,250         37

    Net loss (gain) on
     disposition of
     property and
     equipment                        329                   (556)                                 414      (835)

    Interest income                   (1)                    (1)                                  (3)       (2)

    Interest expense                  727                     495                                1,330      1,191

    Other income
     (expense), net                   242                    (29)                                 139         90

    Provision (benefit)
     for income taxes               3,603                   (185)                               2,145      (845)
                                    -----                    ----                                -----       ----

    Loss from continuing
     operations                             $(12,836)                               $(582)             $(18,350)   $(2,321)
                                             ========                                 =====               ========     =======

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 and restaurant closings, non-cash compensation expense, franchise taxes, and decrease / (increase) in fair value of derivatives.

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.


    ($ thousands)            Quarter Ended                       Two Quarters Ended

                         March 15,                   March 9,                          March 15,     March 9,
                                    2017                    2016                                2017       2016
                                    ----                    ----                                ----       ----

                        (12 weeks)                   (12 weeks)                       (28 weeks)     (28 weeks)


    Loss from
     continuing
     operations                            $(12,836)                              $(582)             $(18,350)   $(2,321)

    Depreciation and
     amortization                  4,788                   5,220                              11,338     12,235

    Provision (benefit)
     for income taxes              3,603                   (185)                              2,145      (845)

    Interest expense                 727                     495                               1,330      1,191

    Interest income                  (1)                    (1)                                 (3)       (2)

    Net loss (gain) on
     disposition of
     property and
     equipment                       329                   (556)                                414      (835)

    Provision for asset
     impairments and
     restaurant
     closings, net                 5,963                      37                               6,250         37

    Non-cash
     compensation
     expense                         689                     443                               1,458      1,169

    Franchise Taxes                   42                      42                                  97         97

    Decrease /
     (Increase) in Fair
     Value of
     Derivative                     (46)                      -                                 45          -

    Adjusted EBITDA                           $3,258                               $4,913                 $4,724     $10,726
                                              ======                               ======                 ======     =======

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/lubys-reports-second-quarter-fiscal-2017-results-300442209.html

SOURCE Luby's, Inc.