LUBY'S, INC. HOUSTON, Oct. 28, 2015 /PRNewswire/ -- Luby's, Inc. (NYSE: LUB) ("Luby's") today announced unaudited financial results for its sixteen-week fourth quarter fiscal 2015, which ended on August 26, 2015. Comparisons in this press release for the fourth quarter fiscal year 2015 are referred to as "fourth quarter."
Fourth Quarter Highlights
-- Income from continuing operations of $0.1 million compared to a loss of
$1.1 million last year
-- Opened five company-owned Fuddruckers restaurants
-- Store Level Profit grew to 14.2% compared to 13.0% last year
-- Total same-store sales increased 0.7%
-- Fuddruckers same-store sales increased 1.7%
-- Cheeseburger in Paradise same-store sales increased 2.8%, its first
positive sales quarter since 2012
-- Expenses declined in Food and Payroll and related expenses
-- Combo location sales continued to grow, representing 6.4% of total
restaurant sales compared to 4.5% last year
-- Adjusted EBITDA increased by 41%
Chris Pappas, President and CEO, commented, "We were pleased with the increased profitability during the quarter, accomplished through improved store level profit margin and better expense management, both of which led to improved financial results in the fourth quarter. While revenues were relatively flat year over year, our team grew profitability, increased same-store sales and reduced expenses. In addition, we paid down $10.5 million of our revolving credit facility during the quarter, ending the fiscal year with a debt balance of $37.5 million; this compares to a $42.0 million debt balance at the beginning of the year.
"Same-store sales grew 0.7% in the fourth quarter, led by continued strength at our core brands. Luby's Cafeterias experienced 0.2% growth and Fuddruckers achieved 1.7% growth in the fourth quarter. During fiscal 2015, we sold seven real estate locations and other assets for a total of $13.3 million in proceeds that were utilized to reduce debt. We ended fiscal 2015 having spent $20.4 million in capital expenditures, in-line with our plan to reduce capital expenditures and lower outstanding debt.
"In fiscal 2016, we are focused on improving store level profit across all of our restaurant brands, growing same-store sales, and efficiently managing costs to enhance profitability and shareholder value. We will continue to effectively manage our capital expenditures in fiscal 2016, and expect to spend below $20 million for the fiscal year, excluding the purchase of land for development. We also are actively looking for new Combo location sites for potential development in Southern U.S. markets where we do not already operate Luby's Cafeterias. In our franchise pipeline, we estimate at least ten new Fuddruckers restaurant location openings in fiscal 2016, in both domestic and international markets," concluded Pappas.
Same-Store Sales Year-Over-Year Comparison
Q1 Q2 Q3 Q4 Fiscal
2015 2015 2015 2015 2015
---- ---- ---- ---- ----
Luby's
Cafeterias 0.2% 3.1% (1.0%) 0.2% 0.6%
----------- --- --- ----- --- ---
Fuddruckers
Restaurants 0.2% 2.1% 0.2% 1.7% 1.1%
------------ --- --- --- --- ---
Combo
Locations (1) 2.4% 2.4% (3.7%) (6.4%) (1.8%)
(Represents
one
location.)
-----------
Cheeseburger
in Paradise (6.7)% (4.8%) (7.2%) 2.8% (2.9%)
------------ ----- ----- ----- --- -----
Total same-
store sales
(2) (0.1)% 2.5% (1.1%) 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
fourth quarter, there were 88
Luby's Cafeterias, 58 Fuddruckers
Restaurants, 1 Combo location, and
8 Cheeseburger in Paradise
locations that met the definition
of same-stores.
Fourth Quarter Results:
Restaurant
Brand Q4 2015 Q4 2014 Change Change
($000s) ($000s) ($000s) (%)
--- ------ ------ ------ ---
Luby's
Cafeterias $67,871 $69,248 $(1,377) (2.0)%
----------- ------- ------- ------- -----
Fuddruckers
Restaurants 32,815 30,400 2,415 7.9 %
------------ ------ ------ ----- ----
Combo
Locations 7,385 5,197 2,188 42.1 %
---------- ----- ----- ----- -----
Cheeseburger
in
Paradise 7,290 10,472 (3,182) (30.4)%
------------ ----- ------ ------ ------
Koo Koo Roo
(1) - 58 (58) (100.0)%
----------- --- --- --- -------
Total
Restaurant
Sales $115,361 $115,375 $(14) 0.0 %
----------- -------- -------- ---- ----
(1) One location closed in the
fourth quarter fiscal 2014 that
has since re-opened as a
Fuddruckers restaurant
-- Total Restaurant sales were flat year over year in the fourth quarter at
$115.4 million.
-- Same-store sales grew 0.2% at Luby's Cafeteria, resulting from a 2.8%
increase in average spend per guest, offset by a 2.6% decrease in guest
traffic. Luby's Cafeterias sales decreased $1.4 million to $67.9
million, due to the closure of four Luby's Cafeterias.
-- Fuddruckers restaurant sales increased $2.4 million to $32.8 million,
resulting from a 1.7% increase in same-store sales as well as the
incremental sales contribution from ten new Fuddruckers restaurants
(including four locations that were converted from Cheeseburger in
Paradise restaurants, one location that was converted from a Koo Koo Roo
restaurant, and two locations acquired from a franchisee), partially
offset by the absence of sales from seven closed Fuddruckers restaurants
(including two locations that were sold to a franchisee). The 1.7%
increase in same-store sales at Fuddruckers restaurants resulted from a
3.3% increase in average spend per guest, offset by a 1.6% decrease in
guest traffic.
-- Combo location sales increased $2.2 million to $7.4 million due to the
addition of three new Combo locations, offset by a 6.4% decrease in
sales at our first Combo location (included in our same-store
calculation). Combo locations together represented 6.4% of our total
restaurant sales in the fourth quarter compared to 4.5% of our total
restaurant sales in fourth quarter fiscal 2014.
-- Same-store sales increased 2.8% at our Cheeseburger in Paradise
restaurants. Cheeseburger in Paradise restaurant sales declined $3.2
million due to fewer locations, with 15 restaurants operating in fourth
quarter fiscal 2014 compared to eight restaurants in the fourth quarter.
-- Franchise operations revenue decreased $0.1 million, to $2.2 million in
the fourth quarter. We ended the quarter with 106 franchise locations
in our Fuddruckers franchise network. Franchisee same-store sales
increased 5.3% in the fourth quarter compared to the fourth quarter
fiscal 2014.
-- Culinary Contract Services revenues decreased to $4.4 million with 23
operating locations in the fourth quarter compared to $5.8 million from
25 operating locations in the fourth quarter fiscal 2014.
-- 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 $16.4 million, or 14.2% of restaurant sales, in
the fourth quarter compared to $15.0 million, or 13.0% of restaurant
sales, in the fourth quarter fiscal 2014. Lower overall cost of food
and payroll and related expenses led to this increase in profitability.
Store level profit is a non-GAAP measure, and reconciliation to income
from continuing operations is presented after the financial statements.
-- Income from continuing operations was $0.1 million, or $0.00 per diluted
share compared to a loss of $1.1 million, or a loss of $0.04 per diluted
share, in the fourth quarter fiscal 2014. Results in fourth quarter 2015
and 2014 included various special items. Excluding the special items,
loss from continuing operations was $1.1 million, or a loss of $0.04 per
diluted share, in fourth quarter fiscal 2015 compared to a loss of $1.3
million, or a loss of $0.05 per diluted share, in fourth quarter fiscal
2014. The income tax provision was $0.3 million in the fourth quarter
compared to an income tax benefit of $0.8 million the fourth quarter
fiscal 2014. Therefore, income from continuing operations before
special items and before provision for income taxes was approximately a
loss of $0.9 million, or $0.03 per diluted share in the fourth quarter
compared to a loss of $2.2 million, or a loss of $0.07 per diluted
share, in fourth quarter fiscal 2014.
Reconciliation of income from continuing operations to income from continuing operations, before special items and income taxes( (1,2)):
Q4 2015 Q4 2014
------- -------
Item Amount Per Share Amount Per Share
($000s) ($) ($000s) ($)
---- ------- ---------- ------- ----------
Income (Loss) from
continuing operations $141 $0.00 $(1,081) $(0.04)
Net Gain on Asset Disposals
and Impairments (1,241) (0.04) (292) (0.01)
(Income) /Loss from
Cheeseburger in Paradise
(3) (218) (0.01) 28 0.00
Cheeseburger in Paradise
locations closed for
conversion (4) 189 0.01 - -
------------------------ --- ---- --- ---
Loss from continuing
operations, before special
items $(1,129) $(0.04) $(1,345) $(0.05)
Addback Income Tax
Provision /(Benefit) 250 0.01 (807) (0.02)
Income from continuing
operations, before special
items and taxes $(879) $(0.03) $(2,152) $(0.07)
--------------------------- ----- ------ ------- ------
(1) Luby's uses income (loss) from
continuing operations, before
special items, in analyzing its
results, which is a non-GAAP
financial measure. This
information should be considered
in addition to the results
presented in accordance with GAAP,
and should not be considered a
substitute for the GAAP results.
Luby's has reconciled income from
continuing operations, before
special items, to income from
continuing operations, the nearest
GAAP measure in context.
(2) Per share amounts are per diluted
share after tax.
(3) Loss from Cheeseburger in Paradise
is after allocation of
depreciation, direct G&A and
interest expense, net of an
estimated tax benefit. These costs
include rent, property taxes,
utilities and certain restaurant
management labor costs associated
with Cheeseburger in Paradise
locations closed for conversion.
These costs are included in
Opening costs and Payroll and
related costs.
(4) These costs include rent, property
taxes, utilities and certain
restaurant management labor costs
associated with Cheeseburger in
Paradise locations closed for
conversion. These costs are
included in opening costs and
payroll and related costs.
Fourth Quarter Operating Expense Review
The company has renamed the General and administrative (G&A) expense line to Selling, general and administrative expenses (SG&A). Company-owned restaurant expenses for marketing has moved from Other operating expenses to SG&A. In addition, costs associated with training new restaurant managers has moved from Payroll and related costs to SG&A. Property insurance and general liability insurance expenses have moved from Other operating expenses to Occupancy costs. Certain travel and corporate insurance expenses have moved from Other operating expenses to SG&A. The occupancy costs (mainly rent expense and property tax expense) for our centralized bakery and facility service center locations have also moved to SG&A. Furthermore, we have moved all of the direct costs associated with our franchise business segment (primarily SG&A) into a new expense line labeled "Cost of franchise operations" on our Consolidated Statements of Operations. We also moved general and administrative expenses directly associated with our culinary contract services business segment to Cost of culinary contract services. We are making these reclassifications in an effort to reflect only direct costs of operating our company-owned restaurants in our Payroll and related costs and Other operating expense line items on our Consolidated Statements of Operations. We also believe this increases comparability of our Consolidated Statements of Operations with those of our restaurant peers. Lastly, we are including vending revenue as part of store level profit, now defined as restaurant sales plus vending revenue, less cost of food, payroll and related costs, other operating expenses, and occupancy costs.
Cost of food as a percentage of restaurant sales decreased to 28.5% in the fourth quarter compared to 29.1% in fourth quarter fiscal 2014 primarily due to higher average menu prices with food commodity costs that were generally level with fourth quarter 2014.
Payroll and related costs as a percentage of restaurant sales decreased to 34.3% in the fourth quarter compared to 34.5% in fourth quarter fiscal 2014. Payroll and related costs as a percentage of restaurant sales improved for hourly restaurant labor costs as costs decreased significantly at our Combo locations where three locations were still in the opening periods during fourth quarter fiscal 2014. Payroll and related costs are typically higher for the first several months after a new Combo location opens.
Other operating expenses include restaurant-related expenses for utilities, repairs and maintenance, local advertising, insurance, supplies, and services. As a percentage of restaurant sales, other operating expenses increased to 17.7% in the fourth quarter from 17.5% in fourth quarter fiscal 2014. The increase was primarily attributable to higher repairs and maintenance costs and to a lesser extent credit card fees, partially offset by lower utility costs.
Occupancy costs, which include property lease expenses, property taxes, and common area maintenance charges, declined by 10.5% to $6.3 million in the fourth quarter compared to $7.0 million in fourth quarter fiscal 2014.
Opening costs, which include labor, supplies, occupancy, and other costs necessary to support the restaurant through its opening period, were $0.7 million in the fourth quarter compared to $0.8 million in fourth quarter fiscal 2014. Included in this year's fourth quarter opening costs were the carrying costs for four locations that were previously operated as Cheeseburger in Paradise restaurants and were selected for conversion to Fuddruckers restaurants, two of which re-opened October 2015.
Depreciation and amortization expense increased 2.9% to $6.8 million in the fourth quarter compared to $6.6 million in the fourth quarter fiscal 2014. This increase was due primarily to depreciation related to new capital expenditures from new construction at one location and restaurant conversion activity at several locations, offset by certain assets reaching the end of their depreciable lives.
Selling, general and administrative expenses were $12.1 million in the fourth quarter compared to $12.2 million in the fourth quarter fiscal 2014. The decrease in selling, general, and administrative expenses was the result of lower corporate marketing spend, decreased corporate travel, and decreased spending on corporate supplies and other general overhead expenses, partially offset by higher compensation expense.
Balance Sheet and Capital Expenditures
We ended the fourth quarter with a debt balance outstanding of $37.5 million, down from $48.0 million at the end of third quarter fiscal 2015. On October 2, 2015, the company amended its credit agreement with its lenders. By revising our existing arrangement, we have enhanced flexibility by removing certain covenants, negated the need for a new agreement and reduced an overage of excess capacity that is not currently needed. During the fourth quarter, our capital expenditures were $4.0 million, bringing the total for fiscal 2015 to $20.4 million, a reduction of 57% compared to $46.2 million for fiscal 2014. At the end of the fourth quarter, we had $1.5 million in cash and $174.7 million in total shareholders' equity.
Restaurant Counts:
Fiscal 2015 Fiscal 2015 Closings Fiscal 2015
Year Begin Year End
Fiscal 2015 YTD Openings
------------------------
Luby's Cafeterias(1) 1 (2)
94 93
Fuddruckers(1) 9 (5)
71 75
Cheeseburger in
Paradise
8 8
Other restaurants
(2)
1 1
Total 10 (7)
174 177
--- ---
(1) Includes 6 restaurants that
are part of Combo locations
(2) Other restaurants include one
Bob Luby's Seafood
Fiscal 2015 Highlights
-- New Combo location opening (Luby's and Fuddruckers). Sixth Combo
location in Jackson, Mississippi, as first out-of-state Combo location;
six Combos contributed 6.4% of total restaurant sales
-- Eight company-owned stand-alone Fuddruckers locations opened
-- Three locations converted from Cheeseburger in Paradise brand
-- Three locations acquired from franchisees
-- One location converted from previously operated Koo Koo Roo brand
-- One location in newly constructed retail space
-- Luby's Cafeterias same-store sales increased 0.6%; Fuddruckers
same-stores sales increased 1.1%
-- $1.9 million reduction in selling, general, and administrative expense.
-- Opened three international franchise locations (Panama, Chile, and
Poland)
Fiscal 2016 Quarterly Reporting
Beginning in fiscal 2016, we plan to change our fiscal quarter ending dates with the first fiscal quarter end being extended by one accounting period and the fiscal fourth quarter being reduced by one accounting period. The purpose of this change is in part to minimize the Thanksgiving calendar shift by extending the first fiscal quarter until after Thanksgiving. With this change in fiscal quarter ending dates, our first quarter will be 16 weeks, and the remaining three quarters will typically be 12 weeks in length. The fourth fiscal quarter will be 13 weeks in certain fiscal years to adjust for our standard 52 week, or 364 day, fiscal year compared to the 365 day calendar year. Fiscal 2016 is such a year where the fourth quarter will have 13 weeks, resulting in a 53 week fiscal year. Comparability between quarters may be affected by varying lengths of the quarters, as well as the seasonality associated with the restaurant business.
Conference Call
Luby's will host a conference call on October 29, 2015 at 10:00 a.m. Central Time to discuss further its fourth quarter fiscal 2015 results. To access the call live, dial (412) 902-0030 and use the access code 13619692# 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 November 6, 2015 and may be accessed by calling (201) 612-7415 and using the access code 13619692#. 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 177 restaurants under the brands Luby's Cafeteria, Fuddruckers and Cheeseburger in Paradise and provides food service management through its Luby's Culinary Contract Services business segment. The company-owned restaurants include 93 Luby's Cafeterias, 75 Fuddruckers, 8 Cheeseburger in Paradise and one Bob Luby's Seafood Grill. The Company is the franchisor for 106 Fuddruckers franchise locations across the United States (including Puerto Rico), Canada, Mexico, Italy, the Dominican Republic, Panama, and Chile. 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 restaurants. Luby's Culinary Contract Services provides food service management to 23 sites consisting of healthcare, higher education and corporate dining locations.
This press release contains statements that are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release, other than statements of historical fact, are "forward-looking statements" for purposes of these provisions, including the statements under the caption "Outlook" and any other statements regarding scheduled openings of units, scheduled closures of units, sales of assets, expected proceeds from the sale of assets, expected levels of capital expenditures, effects of food commodity costs, anticipated financial results in future periods and expectations of industry conditions.
Luby's cautions readers that various factors could cause its actual financial and operational results to differ materially from those indicated by forward-looking statements made from time-to-time in news releases, reports, proxy statements, registration statements, and other written communications, as well as oral statements made from time to time by representatives of Luby's. The following factors, as well as any other cautionary language included in this press release, provide examples of risks, uncertainties and events that may cause Luby's actual results to differ materially from the expectations Luby's describes in such forward-looking statements: general business and economic conditions; the impact of competition; our operating initiatives; fluctuations in the costs of commodities, including beef, poultry, seafood, dairy, cheese and produce; increases in utility costs, including the costs of natural gas and other energy supplies; changes in the availability and cost of labor; the seasonality of Luby's business; changes in governmental regulations, including changes in minimum wages; the effects of inflation; the availability of credit; unfavorable publicity relating to operations, including publicity concerning food quality, illness or other health concerns or labor relations; the continued service of key management personnel; and other risks and uncertainties disclosed in Luby's annual reports on Form 10-K and quarterly reports on Form 10-Q.
Luby's, Inc.
Consolidated Statements of Operations
(In thousands, except per share data)
Quarter Ended Year Ended
------------- ----------
August 26, August 27, August 26, August 27,
2015 2014 2015 2014
---- ---- ---- ----
(112 days) (112 days) (364 days) (364 days)
(Unaudited) (Unaudited)
SALES:
Restaurant sales $115,361 $115,375 $370,192 $368,267
Culinary contract services 4,408 5,772 16,401 18,555
Franchise revenue 2,197 2,284 6,961 7,027
Vending revenue 175 174 531 532
--- --- --- ---
TOTAL SALES 122,141 123,605 394,085 394,381
COSTS AND EXPENSES:
Cost of food 32,881 33,611 107,053 106,254
Payroll and related costs 39,516 39,780 127,694 126,046
Other operating expenses 20,443 20,177 63,090 61,700
Occupancy costs 6,278 7,011 20,977 21,881
Opening costs 668 801 2,686 2,164
Cost of culinary contract services 3,976 5,261 14,786 16,847
Cost of franchise operations 521 480 1,668 1,733
Depreciation and amortization 6,787 6,596 21,367 20,062
Selling, general and administrative
expenses 12,087 12,239 38,758 40,686
Provision for asset impairments 418 959 636 2,498
Net gain on disposition of property and
equipment (2,298) (1,402) (3,994) (2,357)
------ ------ ------ ------
Total costs and expenses 121,277 125,513 394,721 397,514
------- ------- ------- -------
INCOME (LOSS) FROM OPERATIONS 864 (1,908) (636) (3,133)
Interest income 1 2 4 6
Interest expense (713) (292) (2,336) (1,247)
Other income, net 239 310 520 1,101
--- --- --- -----
Income (loss) before income taxes and
discontinued operations 391 (1,888) (2,448) (3,273)
Provision (benefit) for income taxes 250 (807) (1,076) (1,660)
--- ---- ------ ------
Income (loss) from continuing operations 141 (1,081) (1,372) (1,613)
Loss from discontinued operations, net
of income taxes (190) (366) (702) (1,834)
---- ---- ---- ------
NET LOSS $(49) $(1,447) $(2,074) $(3,447)
==== ======= ======= =======
Income (loss) per share from continuing
operations:
Basic $0.00 $(0.04) $(0.05) $(0.06)
Assuming dilution 0.00 (0.04) (0.05) (0.06)
==== ===== ===== =====
Loss per share from discontinued
operations:
Basic $(0.00) $(0.01) $(0.02) $(0.06)
Assuming dilution (0.00) (0.01) (0.02) (0.06)
===== ===== ===== =====
Net loss per share:
Basic $(0.00) $(0.05) $(0.07) $(0.12)
Assuming dilution (0.00) (0.05) (0.07) (0.12)
===== ===== ===== =====
Weighted average shares outstanding:
Basic 29,121 28,861 28,974 28,812
Assuming dilution 29,121 28,861 28,974 28,812
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 Year Ended
------------- ----------
August 26, August 27, August 26, August 27,
2015 2014 2015 2014
---- ---- ---- ----
(112 days) (112 days) (364 days) (364 days)
Restaurant sales 94.4% 93.3% 93.9% 93.4%
Culinary contract
services 3.6% 4.7% 4.2% 4.7%
Franchise revenue 1.9% 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 28.5% 29.1% 28.9% 28.9%
Payroll and related
costs 34.3% 34.5% 34.5% 34.2%
Other operating
expenses 17.7% 17.5% 17.0% 16.8%
Occupancy costs 5.4% 6.1% 5.7% 5.9%
Vending revenue (0.2)% (0.2)% (0.1)% (0.1)%
Store level profit 14.2% 13.0% 14.0% 14.4%
(As a percentage of
total sales)
Selling, general
and administrative
expenses 9.9% 9.9% 9.8% 10.3%
INCOME (LOSS) FROM
OPERATIONS 0.7% (1.5)% (0.2)% (0.8)%
Luby's, Inc.
Consolidated Balance Sheets
August 26, August 27,
2015 2014
==== ====
(In thousands, except share data)
ASSETS
Current Assets:
Cash and cash equivalents $1,501 $2,788
Trade accounts and other receivables, net 5,175 4,112
Food and supply inventories 4,483 5,556
Prepaid expenses 3,388 2,815
Assets related to discontinued operations 24 52
Deferred income taxes 577 587
--------------------- --- ---
Total current assets 15,148 15,910
Property held for sale 4,536 991
Assets related to discontinued operations 4,014 4,204
Property and equipment, net 199,859 213,492
Intangible assets, net 22,570 24,014
Goodwill 1,643 1,681
Deferred income taxes 12,917 11,294
Other assets 3,571 3,849
------------ ----- -----
Total assets $264,258 $275,435
============ ======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $20,173 $26,269
Liabilities related to discontinued operations 417 590
Accrued expenses and other liabilities 23,958 23,107
-------------------------------------- ------ ------
Total current liabilities 44,548 49,966
Credit facility debt 37,500 42,000
Liabilities related to discontinued operations 190 278
Other liabilities 7,361 8,167
----------------- ----- -----
Total liabilities $89,599 $100,411
================= ======= ========
Commitments and Contingencies
SHAREHOLDERS' EQUITY
Common stock, $0.32 par value; 100,000,000 shares authorized; Shares
issued were 28,949,523 and 28,804,344, respectively; Shares
outstanding were 28,449,523 and 28,304,344, respectively 9,323 9,264
Paid-in capital 29,006 27,356
Retained earnings 141,105 143,179
Less cost of treasury stock, 500,000 shares (4,775) (4,775)
------ ------
Total shareholders' equity 174,659 175,024
------- -------
Total liabilities and shareholders' equity $264,258 $275,435
========================================== ======== ========
Luby's, Inc.
Consolidated Statements of Cash Flows
Year Ended
==========
August 26, August 27,
2015 2014
==== ====
(In thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $(2,074) $(3,447)
Adjustments to reconcile net loss to net cash provided by
operating activities:
Provision for asset impairments and gains on property sales (3,385) 1,347
Depreciation and amortization 21,431 20,221
Amortization of debt issuance cost 204 123
Non-cash compensation expense 1,389 125
Share-based compensation expense 315 1,163
Tax benefit on share-based compensation (5) (50)
Deferred tax benefit (1,996) (3,348)
-------------------- ------ ------
Cash provided by operating activities before changes in
operating asset and liabilities 15,879 16,134
Changes in operating assets and liabilities:
Increase in trade accounts and other receivables (1,063) (29)
Decrease (increase) in food and supply inventories 1,073 (530)
Decrease (increase) in prepaid expenses and other assets (268) 917
Increase (decrease) in accounts payable, accrued expenses and
other liabilities (5,305) 3,947
------------------------------------------------------------- ------ -----
Net cash provided by operating activities 10,316 20,439
----------------------------------------- ------ ------
CASH FLOWS FROM INVESTING ACTIVITIES:
Repayment of note receivable 57 23
Proceeds from disposal of assets, insurance proceeds and
property held for sale 13,278 4,130
Purchases of property and equipment (20,378) (46,184)
----------------------------------- ------- -------
Net cash used in investing activities (7,043) (42,031)
------------------------------------- ------ -------
CASH FLOWS FROM FINANCING ACTIVITIES:
Credit facility borrowings 103,000 105,900
Credit facility repayments (107,500) (83,100)
Debt issuance costs (255) (123)
Tax benefit on share-based compensation 5 50
Proceeds received on the exercise of employee stock options 190 125
------------------------------------------------------ --- ---
Net cash provided by (used in) financing activities (4,560) 22,852
--------------------------------------------------- ------ ------
Net increase (decrease) in cash and cash equivalents (1,287) 1,260
Cash and cash equivalents at beginning of year 2,788 1,528
---------------------------------------------- ----- -----
Cash and cash equivalents at end of year $1,501 $2,788
======================================== ====== ======
Although store level profit, defined as restaurant sales plus vending revenue less cost of food, payroll and related costs, other operating costs, 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 store level profit, a non-GAAP measure, to income (loss) from continuing operations, a GAAP measure:
Quarter Ended Four Quarters Ended
------------- -------------------
August 26, August 27, August 26, August 27,
2015 2014 2015 2014
---- ---- ---- ----
(16 weeks) (16 weeks) (52 weeks) (52 weeks)
--------- --------- --------- ---------
(In thousands)
Store level profit $16,418 $14,970 $51,909 $52,918
Plus:
Sales from culinary
contract services 4,408 5,772 16,401 18,555
Sales from
franchise revenue 2,197 2,284 6,961 7,027
Less:
Opening costs 668 801 2,686 2,164
Cost of culinary
contract services 3,976 5,261 14,786 16,847
Cost of franchise
operations 521 480 1,668 1,733
Depreciation and
amortization 6,787 6,596 21,367 20,062
Selling, general
and administrative
expenses 12,087 12,239 38,758 40,686
Provision for asset
impairments 418 959 636 2,498
Net gain on
disposition of
property and
equipment (2,298) (1,402) (3,994) (2,357)
Interest income (1) (2) (4) (6)
Interest expense 713 292 2,336 1,247
Other income, net (239) (310) (520) (1,101)
Provision (benefit)
for income taxes 250 (807) (1,076) (1,660)
Income (loss) from
continuing
operations $141 $(1,081) $(1,372) $(1,613)
==== ======= ======= =======
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 on disposing of property and equipment, provision for asset impairments, employee stock-based compensation expense, and other income (loss).
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 Four Quarters Ended
------------- -------------------
August 26, August 27, August 26, August 27,
2015 2014 2015 2014
---- ---- ---- ----
(16 weeks) (16 weeks) (52 weeks) (52 weeks)
(In thousands)
Income (loss) from continuing
operations $141 $(1,081) $(1,372) (1,613)
Provision (benefit) for income
taxes 250 (807) (1,076) (1,660)
Depreciation and amortization 6,787 6,596 21,367 20,062
Interest expense, net 712 290 2,332 1,241
Net gain on disposition of
property and equipment (2,298) (1,402) (3,994) (2,357)
Provision for asset impairments 418 959 636 2,498
Employee stock-based
compensation expense 448 175 991 650
Less: Other income, net (239) (310) (520) (1,101)
----
Adjusted EBITDA $6,219 $4,420 $18,364 $17,720
====== ====== ======= =======
For additional information contact:
Dennard-Lascar Associates
713-529-6600
Rick Black / Ken Dennard
Investor Relations
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/lubys-reports-fourth-quarter-and-fiscal-2015-results-300168228.html
SOURCE Luby's, Inc.
