LUBY'S, INC. HOUSTON, March 23, 2015 /PRNewswire/ -- Luby's, Inc. (NYSE: LUB) ("Luby's") today announced unaudited financial results for its twelve-week second quarter fiscal 2015, which ended on February 11, 2015.
Total revenues for the second quarter fiscal 2015 increased $2.4 million to $91.0 million. Loss from continuing operations before special items was $0.04 per diluted share compared to income from continuing operations before special items of $0.01 per diluted share in the second quarter fiscal 2014.
Chris Pappas, President and CEO, commented, "We are pleased to report year-over-year total revenue growth this quarter in our Company-owned Restaurants and Franchising business segments. We also achieved sales increases on a same-store restaurant basis at our core Luby's Cafeterias and Fuddruckers restaurant brands.
"Our five Combo locations (consisting of a side-by-side Luby's Cafeteria and Fuddruckers at one property location) contributed 5.8% to our total restaurant sales in the second quarter fiscal 2015. Our first Combo location, which has operated for more than two years, achieved 2.4% sales growth. These Combo locations are performing well since their introduction and represent a strategic growth driver for our company.
"In the second quarter fiscal 2015, we opened a Fuddruckers restaurant in Newark, Delaware which we converted from a Cheeseburger in Paradise restaurant. Additionally, we announced a new franchise partnership to open a Fuddruckers restaurant in Maine later this year. Early in our third quarter fiscal 2015, we were also excited to have debuted our first Combo location outside of Texas, representing our sixth Combo location to date. This newest Combo location opened with much fanfare in Jackson, Mississippi and has broken all sales records so far for a new Combo opening."
Second Quarter Fiscal 2015 Highlights
-- Total revenue increased $2.4 million. Same-store sales increased 2.5%.
-- Sales at Combo locations were $4.9 million in the second quarter fiscal
2015 and represented 5.8% of total restaurant sales compared to 1.8% of
sales in the second quarter fiscal 2014
-- One new Company-owned Fuddruckers restaurant opened in Newark, Delaware.
Same-Store Sales Year-Over-Year Comparison
Q1 Q2 YTD
2015 2015 2015
---- ---- ----
Luby's Cafeterias 0.2% 3.1% 1.7%
----------------- --- --- ---
Fuddruckers Restaurants 0.2% 2.1% 1.1%
----------------------- --- --- ---
Combo Locations(1) 2.4% 2.4% 2.4%
----------------- --- --- ---
Cheeseburger in Paradise (6.7)% (4.8%) (5.8%)
------------------------ ----- ----- -----
Total same-store sales (0.1)% 2.5% 1.2%
---------------------- ----- --- ---
(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. The first
Combo location met the definition
of same-stores in the third
quarter fiscal 2014; the
Cheeseburger in Paradise locations
met the definition of same-stores
in the first quarter fiscal 2015.
In the second quarter fiscal 2015,
there were 89 Luby's Cafeterias,
57 Fuddruckers Restaurants, 1
Combo location, and 8 Cheeseburger
in Paradise locations that met the
definition of same-stores.
----------------------------------
Second Quarter Fiscal 2015 Results:
Restaurant Brand Q2 2015 Q2 2014 Change Change
($000s) ($000s) ($000s) (%)
------ ------ ------ ---
Luby's
Cafeterias $54,574 $54,291 $283 0.5%
Fuddruckers
Restaurants 22,820 20,575 2,245 10.9%
Combo Locations 4,937 1,519 3,418 225.1%
Cheeseburger in
Paradise 3,155 6,266 (3,111) (49.7%)
Koo Koo Roo - 279 (279) (100%)
Total Restaurant
Sales $85,486 $82,930 $2,556 3.1%
-- Restaurant sales increased by $2.6 million to $85.5 million in the
second quarter fiscal 2015 compared to $82.9 million in the second
quarter fiscal 2014.
-- Sales increased at Luby's Cafeteria by $0.3 million to $54.6 million.
The increase in sales at Luby's Cafeterias resulted from a 3.1% increase
in same-store sales offset by the absence in sales from three closed
Luby's Cafeterias. The 3.1% increase in same-store Luby's Cafeteria
sales resulted from a 2.2% increase in guest traffic and a 0.9% increase
in average spend per guest.
-- Sales increased $2.2 million at our Fuddruckers restaurants. The sales
increase at Fuddruckers restaurants resulted from a 2.1% increase in
same-store sales and the incremental sales contribution from nine new
Fuddruckers restaurants (including four locations that were converted
from Cheeseburger in Paradise restaurants), with these additions
partially offset by the absence of sales from four closed Fuddruckers
restaurants. The 2.1% increase in same-store sales at Fuddruckers
restaurants resulted from a 1.8% increase in guest traffic and a 0.3%
increase in average spend per guest.
-- Sales increased $3.4 million at our Combo locations due to a 2.4%
increase in sales at our first Combo location (included in our
same-store grouping) and the sales contribution from four new Combo
locations. The Combo locations together represented 5.8% of our total
restaurant sales in the second quarter fiscal 2015 compared to 1.8% of
our total restaurant sales in the second quarter fiscal 2014.
-- Sales declined $3.1 million at our Cheeseburger in Paradise restaurants
due to a reduction in operating restaurants included in our continuing
operations, down from 16 restaurants at the end of second quarter fiscal
2014 to eight restaurants in the second quarter fiscal 2015. In
addition, sales declined 4.8% at the eight Cheeseburger in Paradise
restaurants in operation during the second quarter fiscal 2015.
Offsetting the $3.1 million sales decline was $1.4 million in sales
recaptured at the four locations that were converted from a Cheeseburger
in Paradise restaurant to a Fuddruckers restaurant.
-- We ceased operations at the remaining Koo Koo Roo Chicken restaurant
prior to the start of fiscal 2015. The absence of those sales accounted
for an additional $0.3 million reduction in total restaurant sales.
-- Revenue from franchise operations was $1.6 million in the second quarter
fiscal 2015 compared to $1.5 million in the second quarter fiscal 2014.
We ended the quarter with 107 franchise locations in our Fuddruckers
franchise network.
-- Revenue from Culinary Contract Services decreased to $3.8 million in the
second quarter fiscal 2015 compared to $4.0 million in the second
quarter fiscal 2014. We ended the second quarter fiscal 2015 operating
24 locations, an increase from 22 locations at the end of the second
quarter fiscal 2014 but a decrease from 26 locations in first quarter
fiscal 2015.
-- Store level profit, defined as restaurant sales less cost of food,
payroll and related costs, other operating expenses, and occupancy
costs, was $9.5 million, or 11.1% of restaurant sales in the second
quarter fiscal 2015 compared to $9.4 million or 11.3% of restaurant
sales in the second quarter fiscal 2014. While higher food commodity
costs continued to represent a significant cost pressure, we were able
to increase store level profit by $0.1 million through top-line
restaurant sales growth of $2.6 million, allowing us to leverage our
other operating expenses. Offsetting the $0.1 million increase in store
level profit was the higher depreciation expense and higher interest
expense related to our growth strategy, leading to reduced income from
continuing operations. Store level profit is a non-GAAP measure and
reconciliation to income from continuing operations is presented after
the financial statements.
-- In the second quarter fiscal 2015, the company reported a loss from
continuing operations of $1.2 million, or a loss of $0.04 per diluted
share. This compares to loss from continuing operations of $1.6
million, or a loss of $0.05 per diluted share, in the second quarter
fiscal 2014. Results in fiscal 2015 and fiscal 2014 included various
special items. Excluding special items, the loss from continuing
operations was also $1.2 million, or a loss of $0.04 per diluted share,
in second quarter fiscal 2015, compared to income from continuing
operations of $0.3 million, or earnings of $0.01 per diluted share, in
second quarter fiscal 2014.
Reconciliation of loss from continuing operations to income/(loss) from continuing operations, before special items (1,2):
Q2 FY2015 Q2 FY2014
--------- ---------
Item Amount ($000s) Per Share ($) Per Share ($)
Amount ($000s)
--- -------------
Loss from continuing
operations $(1,229) $(0.04) $(1,581) $(0.05)
Asset charges; loss (gain)
on disposal of assets (765) (0.03) 888 0.03
Loss from Cheeseburger in
Paradise (3) 510 0.02 575 0.02
Cheeseburger in Paradise
locations closed for
conversion (4) 284 0.01 404 0.01
------------------------ --- ---- --- ----
Income (Loss) from
Continuing Operations,
before special items $(1,200) $(0.04) $286 $0.01
(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.
(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.
Second Quarter Fiscal 2015 Operating Expense Review
Cost of food as a percentage of restaurant sales increased to 29.8% in the second quarter fiscal 2015 compared to 29.0% in the second quarter fiscal 2014. The cost of food as a percentage of sales increased primarily from higher food commodity costs which impacted each of our restaurant brands. Food commodity prices for our basket of food commodity purchases were higher by approximately 7.0% at our Luby's Cafeterias and approximately 12.0% at our Fuddruckers restaurants.
In the second quarter fiscal 2015, payroll and related costs as a percentage of restaurant sales decreased to 34.9% compared to 35.3% in the second quarter fiscal 2014. The decrease reflects our ability to leverage hourly and management costs on higher sales volumes. This decrease also reflects comparison to the second quarter fiscal 2014 when increased management labor was deployed during the first eight weeks of operations at newly opened stores. These decreases were partially offset by additional investments in restaurant labor in order to enhance guest service and motivate increased guest traffic.
Other operating expenses include restaurant-related expenses for utilities, repairs and maintenance, advertising, insurance, supplies, and services. As a percentage of restaurant sales, other operating expenses were 18.6% in the second quarter fiscal 2015 consistent with the second quarter fiscal 2014. The decrease was attributable to lower utilities expenses, insurance costs, and restaurant services costs as percentage of restaurant sales. These expenses were offset by higher marketing and advertising expenses and higher repairs and maintenance costs as percentage of restaurant sales.
Occupancy costs include property lease expense, property taxes, and common area maintenance charges. Occupancy costs were $4.8 million in the second quarter fiscal 2015, consistent with occupancy costs of $4.8 million in the second quarter fiscal 2014.
Opening costs include labor, supplies, occupancy, and other costs necessary to support the restaurant through its opening period. Opening costs were $0.7 million in the second quarter fiscal 2015, consistent with the second quarter fiscal 2014. Included in the opening costs in the second quarter fiscal 2015 were the carrying costs of approximately $0.3 million associated with six locations that were previously operated as Cheeseburger in Paradise restaurants and are in the process of conversion to Fuddruckers restaurants.
Depreciation and amortization expense increased by $0.3 million to $4.8 million in the second quarter fiscal 2015. This increase was due primarily to an increase in the depreciable asset base from recent new store construction and restaurant conversion activity.
General and administrative expenses were $8.1 million in the second quarter fiscal 2015 consistent with the second quarter fiscal 2014. As a percentage of total revenues, general and administrative expenses were 8.9% in the second quarter fiscal 2015, a decrease from 9.2% in the second quarter fiscal 2014.
Balance Sheet and Capital Expenditures
We ended the second quarter fiscal 2015 with an outstanding debt balance of $54.5 million. During the first two quarters of fiscal 2015, our capital expenditures totaled $11.0 million. At the end of the second quarter fiscal 2015, we had $1.6 million in cash and $171.2 million in shareholders' equity.
Fiscal Year to Date:
-- Restaurant sales were $166.0 million during the first two fiscal
quarters of 2015, an increase from $162.9 million in the comparable
quarters in fiscal 2014.
-- Same store sales increased 1.2% during the first two fiscal quarters of
2015 compared to the comparable quarters in fiscal 2014.
-- Culinary Contract Services revenue rose to $8.4 million during the first
two quarters of fiscal 2015, compared to $8.2 million in the comparable
quarters in fiscal 2014.
-- Store level profit was $16.8 million, or 10.1% of restaurant sales, in
the first two quarters of fiscal 2015, a decrease from $18.5 million, or
11.3% of restaurant sales, in the comparable quarters in fiscal 2014.
Restaurant Counts:
FY2015 FY15 YTD FY2015
Year Begin Openings
FY15 YTD Q2 End
Closings
--------
Luby's Cafeterias(1) 94 94
Fuddruckers(1) 71 3 (3) 71
Cheeseburger in Paradise 8 8
Other restaurants(2) 1 1
Total 174 3 (3) 174
--- --- --- ---
(1) Includes 5 restaurants that
are part of "Combo" locations
(2) Other restaurants include one
Bob Luby's Seafood
Fiscal 2015 Outlook
"In fiscal 2014, we exceeded our new restaurant development expectations by opening twelve new restaurant locations. In fiscal 2015, we are focused on improving store level profit at these new restaurants while also enhancing profitability at legacy locations. While we expect commodity cost pressures to increase in certain categories, we continue to implement and manage store-level initiatives to improve sales and profitability, including modest price adjustments on selected menu items. Our expectation in fiscal 2015 is to realize same-store sales growth at our core Luby's Cafeterias and Fuddruckers brands and higher store level profit, with lower general and administrative expenses, offset by higher depreciation and interest expense, resulting in improved financial results over the prior year. We plan to reduce our capital expenditures in fiscal 2015 to between $20 and $22 million. From our franchise pipeline, we estimate seven new Fuddruckers restaurant location openings in fiscal 2015, to be located in both domestic and international markets, including Italy, Poland, Panama, and Chile," concluded Pappas.
Conference Call
Luby's will host a conference call today at 10:00 a.m. Central Time to discuss further its second quarter fiscal 2015 results. To access the call live, dial (412) 902-0030 and use the access code 13603330# 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 March 30, 2015 and may be accessed by calling (201) 612-7415 and using the access code 13603330#. 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 restaurants under the brands Luby's Cafeteria, Fuddruckers and Cheeseburger in Paradise and provides food service management through its Culinary Contract Services business segment. The company-owned restaurants include 95 Luby's Cafeterias, 72 Fuddruckers restaurants, 8 Cheeseburger in Paradise full service restaurants and bars and one Bob Luby's Seafood Grill. Its 95 Luby's Cafeterias are located primarily in Texas. In addition to the 72 company-operated Fuddruckers locations, Luby's is the franchisor for 107 Fuddruckers franchise locations across the United States (including Puerto Rico), Canada, Mexico, Italy, the Dominican Republic, Panama, and Chile. Additionally, a licensee operates 31 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 24 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 (unaudited)
(In thousands, except per share data)
------------------------------------
Quarter Ended Two Quarters Ended
------------- ------------------
February 11, February 12, February 11, February 12,
2015 2014 2015 2014
---- ---- ---- ----
(12 weeks) (12 weeks) (24 weeks) (24 weeks)
SALES:
Restaurant sales $85,486 $82,930 $166,043 $162,881
Culinary contract services 3,771 3,979 8,369 8,249
Franchise revenue 1,605 1,545 3,186 3,060
Vending revenue 120 115 244 227
--- --- --- ---
TOTAL SALES 90,982 88,569 177,842 174,417
COSTS AND EXPENSES:
Cost of food 25,471 24,042 48,964 46,911
Payroll and related costs 29,837 29,248 59,156 57,413
Other operating expenses 15,879 15,401 31,703 30,544
Occupancy costs 4,780 4,840 9,408 9,529
Opening costs 683 682 1,608 1,031
Cost of culinary contract
services 3,331 3,496 7,282 7,169
Depreciation and amortization 4,772 4,473 9,830 8,792
General and administrative
expenses 8,074 8,118 15,777 16,184
Provision for asset
impairments, net 218 1,329 218 1,539
Net loss (gain) on disposition
of property and equipment (1,377) 16 (1,087) 67
------ --- ------ ---
Total costs and expenses 91,668 91,645 182,859 179,179
------ ------ ------- -------
LOSS FROM OPERATIONS (686) (3,076) (5,017) (4,762)
Interest income 1 1 2 3
Interest expense (568) (292) (1,024) (545)
Other income, net 86 260 273 556
--- --- --- ---
Loss before income taxes and
discontinued operations (1,167) (3,107) (5,766) (4,748)
Provision (benefit) for income
taxes 62 (1,526) (1,721) (2,474)
--- ------ ------ ------
Loss from continuing
operations (1,229) (1,581) (4,045) (2,274)
Loss from discontinued
operations, net of income
taxes (130) (603) (333) (1,455)
---- ---- ---- ------
NET LOSS $(1,359) $(2,184) $(4,378) $(3,729)
======= ======= ======= =======
Loss per share from continuing
operations:
Basic $(0.04) $(0.06) $(0.14) $(0.08)
Assuming dilution (0.04) (0.06) (0.14) (0.08)
===== ===== ===== =====
Loss per share from
discontinued operations:
Basic $(0.01) $(0.02) $(0.01) $(0.05)
Assuming dilution (0.01) (0.02) (0.01) (0.05)
===== ===== ===== =====
Loss income per share:
Basic $(0.05) $(0.08) $(0.15) $(0.13)
Assuming dilution (0.05) (0.08) (0.15) (0.13)
===== ===== ===== =====
Weighted average shares
outstanding:
Basic 28,921 28,775 28,906 28,770
Assuming dilution 28,921 28,775 28,906 28,770
The accompanying notes are an integral part of these Consolidated Financial Statements.
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 Two Quarters Ended
------------- ------------------
February 11, February 12, February 11, February 12,
2015 2014 2015 2014
---- ---- ---- ----
(12 weeks) (12 weeks) (24 weeks) (24 weeks)
Restaurant sales 94.0% 93.6% 93.4% 93.4%
Culinary contract services 4.1% 4.5% 4.7% 4.7%
Franchise revenue 1.8% 1.7% 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 29.8% 29.0% 29.5% 28.8%
Payroll and related costs 34.9% 35.3% 35.6% 35.2%
Other operating expenses 18.6% 18.6% 19.1% 18.8%
Occupancy 5.6% 5.8% 5.7% 5.9%
--- --- --- ---
Store level profit 11.1% 11.3% 10.1% 11.3%
==== ==== ==== ====
(As a percentage of total
sales)
General and administrative
expenses 8.9% 9.2% 8.9% 9.3%
LOSS FROM OPERATIONS (0.8)% (3.5)% (2.8)% (2.7)%
Luby's, Inc.
Consolidated Balance Sheets
(In thousands, except share data)
--------------------------------
February 11, August 27,
2015 2014
---- ----
(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $1,621 $2,788
Trade accounts and other receivables, net 5,317 4,112
Food and supply inventories 5,151 5,556
Prepaid expenses 3,194 2,815
Assets related to discontinued operations 36 52
Deferred income taxes 589 587
--- ---
Total current assets 15,908 15,910
Property held for sale 2,702 991
Assets related to discontinued operations 4,820 4,204
Property and equipment, net 210,411 213,492
Intangible assets, net 23,347 24,014
Goodwill 1,643 1,681
Deferred income taxes 13,419 11,294
Other assets 3,699 3,849
----- -----
Total assets $275,949 $275,435
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $18,861 $26,269
Liabilities related to discontinued
operations 433 590
Accrued expenses and other liabilities 22,976 23,107
------ ------
Total current liabilities 42,270 49,966
Credit facility debt 54,500 42,000
Liabilities related to discontinued
operations 72 278
Other liabilities 7,874 8,167
----- -----
Total liabilities 104,716 100,411
======= =======
Commitments and Contingencies
SHAREHOLDERS' EQUITY
Common stock, $0.32 par value; 100,000,000
shares authorized; shares issued were
29,050,796 and 28,949,523, respectively;
shares outstanding were 28,550,796 and
28,449,523, respectively 9,296 9,264
Paid-in capital 27,911 27,356
Retained earnings 138,801 143,179
Less cost of treasury stock, 500,000 shares (4,775) (4,775)
------ ------
Total shareholders' equity 171,233 175,024
------- -------
Total liabilities and shareholders' equity $275,949 $275,435
======== ========
The accompanying notes are an integral part of these Consolidated Financial Statements.
Luby's, Inc.
Consolidated Statements of Cash Flows (unaudited)
(In thousands)
---
Two Quarters Ended
------------------
February 11, February 12,
2015 2014
---- ----
(24 weeks) (24 weeks)
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net loss $(4,378) $(3,729)
Adjustments to reconcile net
loss to net cash provided by
operating activities:
Provision for asset
impairments, net of gains/
losses on property sales (869) 2,362
Depreciation and amortization 9,860 8,916
Amortization of debt issuance
cost 76 52
Non-cash compensation expense 422 163
Share-based compensation
expense 165 325
Deferred tax benefit (2,128) (3,075)
------ ------
Cash provided by operating
activities before changes in
operating assets and
liabilities 3,148 5,014
Changes in operating assets
and liabilities, net of
business acquisition:
Decrease (increase) in trade
accounts and other
receivables (1,205) 458
Decrease (increase) in food
and supply inventories 405 (299)
Decrease (increase) in prepaid
expenses and other assets (221) 1,131
Decrease in accounts payable,
accrued expenses and other
liabilities (7,801) (5,464)
------ ------
Net cash provided by (used in)
operating activities (5,674) 840
------ ---
CASH FLOWS FROM INVESTING
ACTIVITIES:
Proceeds from disposal of
assets and property held for
sale 3,060 567
Purchases of property and
equipment (10,988) (19,082)
Decrease in note receivable - 23
--- ---
Net cash used in investing
activities (7,928) (18,492)
------ -------
CASH FLOWS FROM FINANCING
ACTIVITIES:
Credit facility borrowings 58,800 57,300
Credit facility repayments (46,300) (39,500)
Proceeds from exercise of
stock options 3 9
Debt issuance costs (68) -
--- ---
Net cash provided by financing
activities 12,435 17,809
------ ------
Net (decrease) increase cash
and cash equivalents (1,167) 157
Cash and cash equivalents at
beginning of period 2,788 1,528
----- -----
Cash and cash equivalents at
end of period $1,621 $1,685
====== ======
Cash paid for:
Income taxes $ - $ -
Interest 969 470
The accompanying notes are an integral part of these Consolidated Financial Statements.
Although store level profit, defined as restaurant sales less cost of food, payroll and related costs, 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 income from continuing operations, a GAAP measure:
Quarter Ended Two Quarters Ended
------------- ------------------
February 11, February 12, February 11, February 12,
2015 2014 2015 2014
---- ---- ---- ----
(12 weeks) (12 weeks) (24 weeks) (24 weeks)
(In thousands)
$9,519 $9,399 $16,812 $18,484
Store level profit
Plus:
Sales from vending
revenue 120 115 244 227
Sales from culinary
contract services 3,771 3,979 8,369 8,249
1,605 1,545 3,186 3,060
Sales from franchise
revenue
Less:
Opening costs 683 682 1,608 1,031
Cost of culinary
contract services 3,331 3,496 7,282 7,169
4,772 4,473 9,830 8,792
Depreciation and
amortization
General and
administrative
expenses 8,074 8,118 15,777 16,184
Provision for asset
impairments, net 218 1,329 218 1,539
Net loss (gain) on
disposition of
property and
equipment (1,377) 16 (1,087) 67
Interest income (1) (1) (2) (3)
568 292 1,024 545
Interest expense
Other income, net (86) (260) (273) (556)
Provision (benefit)
for income taxes 62 (1,526) (1,721) (2,474)
--- ------ ------ ------
Loss from continuing
operations $(1,229) $(1,581) $(4,045) $(2,274)
======= ======= ======= =======
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-second-quarter-fiscal-2015-results-300054135.html
SOURCE Luby's, Inc.
