LUBY'S, INC. HOUSTON, June 10, 2015 /PRNewswire/ -- Luby's, Inc. (NYSE: LUB) ("Luby's") today announced unaudited financial results for its twelve-week third quarter fiscal 2015, which ended on May 6, 2015. Comparisons in this press release for the third quarter fiscal year 2015 are referred to as "third quarter."
Third Quarter Highlights
-- Income from continuing operations increased to $0.09 per diluted share
compared to $0.06 the prior year
-- Other operating and general and administrative expenses reduced
-- Debt balance reduced by $6.5 million
-- Combo restaurant sales were $6.4, million representing 7.2% of total
restaurant sales
-- Total same-store sales decreased 1.1%
-- Adjusted EBITDA increased 7.6%
Chris Pappas, President and CEO, commented, "In the third quarter, income from continuing operations increased $0.03 per share year over year driven by enhanced Combo location profitability and lower overhead costs. While we are pleased with the improved profitability in the quarter, we remain focused on improving restaurant sales.
"In the third quarter, we paid down $6.5 million of our revolving credit facility and had $5.4 million of capital expenditures, keeping us on pace to achieve our capital expenditure estimate for the fiscal year of $20 million to $22 million.
"Our six Combo locations (consisting of a side-by-side Luby's Cafeteria and Fuddruckers at one property location) accounted for 7.2% of total restaurant sales in the third quarter, up from 5.8% in the second quarter, due to our sixth location opening this quarter. Our Combo location in Jackson, Mississippi that opened February 19th continues to outperform sales expectations, which supports our interest in opening Combo locations in new markets. Combo locations are performing well and continue to represent a strategic growth driver for our company.
"We continue to execute on our strategic plan to convert certain Cheeseburger in Paradise restaurants to Fuddruckers restaurants. We have completed four restaurant conversions this year with up to three additional conversions set to re-open in the fourth quarter."
Same-Store Sales Year-Over-Year Comparison
Q1 Q2 Q3 YTD
2015 2015 2015 2015
---- ---- ---- ----
Luby's Cafeterias 0.2% 3.1% (1.0%) 0.7%
----------------- --- --- ----- ---
Fuddruckers Restaurants 0.2% 2.1% 0.2% 0.8%
----------------------- --- --- --- ---
Combo Locations(1) 2.4% 2.4% (3.7%) 0.2%
----------------- --- --- ----- ---
Cheeseburger in Paradise (6.7)% (4.8%) (7.2%) (6.3%)
------------------------ ----- ----- ----- -----
Total same-store sales(2) (0.1)% 2.5% (1.1%) 0.4%
------------------------ ----- --- ----- ---
(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 third quarter, there were
88 Luby's Cafeterias, 57
Fuddruckers Restaurants, 1 Combo
location, and 8 Cheeseburger in
Paradise locations that met the
definition of same-stores.
----------------------------------
Third Quarter Results:
Restaurant
Brand Q3 2015 Q3 2014 Change Change
($000s) ($000s) ($000s) (%)
--- ------ ------ ------ ---
Luby's
Cafeterias $53,975 $55,851 $(1,876) (3.4)%
----------- ------- ------- ------- -----
Fuddruckers
Restaurants 24,204 23,578 626 2.7%
------------ ------ ------ --- ---
Combo
Locations 6,355 2,846 3,509 123.3%
---------- ----- ----- ----- -----
Cheeseburger
in Paradise 4,254 7,490 (3,236) (43.2%)
------------ ----- ----- ------ ------
Koo Koo Roo
(1) - 245 (245) (100.0%)
----------- --- --- ---- -------
Total
Restaurant
Sales $88,788 $90,010 $(1,222) (1.4)%
----------- ------- ------- ------- -----
(1) One location closed in the
fourth quarter fiscal 2014
that has since re-opened as a
Fuddruckers restaurant
-- Restaurant sales decreased $1.2 million to $88.8 million in the third
quarter compared to $90.0 million in the third quarter last year.
-- Sales decreased $1.9 million at Luby's Cafeterias to $54.0 million. The
decrease in sales at Luby's Cafeterias resulted from a 1.0% decrease in
same-store sales and the absence in sales from three closed Luby's
Cafeterias. The 1.0% decrease in same-store Luby's Cafeteria sales
resulted from a 2.7% decrease in guest traffic, due in part to adverse
weather, offset by a 1.7% increase in average spend per guest.
-- Sales increased $0.6 million at our Fuddruckers restaurants. The sales
increase at Fuddruckers restaurants resulted from a 0.2% increase in
same-store sales and the incremental sales contribution from five new
Fuddruckers restaurants (including two locations that were converted
from Cheeseburger in Paradise restaurants), partially offset by the
absence of sales from four closed Fuddruckers restaurants. The 0.2%
increase in same-store sales at Fuddruckers restaurants resulted from a
1.5% increase in average spend per guest, offset by a 1.3% decrease in
guest traffic.
-- Sales increased $3.5 million at our Combo locations due to the addition
of three new Combo locations, offset by a 3.7% decrease in sales at our
first Combo location (included in our same-store grouping) due in part
to adverse weather. The Combo locations together represented 7.2% of our
total restaurant sales in the third quarter compared to 3.2% of our
total restaurant sales in the third quarter fiscal 2014.
-- Sales declined $3.2 million at our Cheeseburger in Paradise restaurants
due to locations closed for future conversions. Operating restaurants
decreased from 19 restaurants in the third quarter fiscal 2014 to eight
restaurants in third quarter 2015. Sales declined 7.2% at the eight
remaining Cheeseburger in Paradise restaurants in operation during the
third quarter fiscal 2015. Partially offsetting the $3.2 million sales
decline was $1.2 million in sales recaptured at the four locations that
were converted from Cheeseburger in Paradise to Fuddruckers.
-- Revenue from franchise operations was $1.6 million in the third quarter
compared to $1.7 million in the third quarter fiscal 2014. We ended the
third quarter with 105 franchise locations in our Fuddruckers franchise
network.
-- Revenue from Culinary Contract Services decreased to $3.6 million
operating at 21 locations in the third quarter compared to $4.5 million
operating at 26 locations at the end of the third quarter last year.
Compared to the second quarter, revenue declined $0.2 million as
operating locations decreased from 24 locations to 21 locations.
-- Store level profit, defined as restaurant sales less cost of food,
payroll and related costs, other operating expenses, and occupancy
costs, was $13.1 million, or 14.8% of restaurant sales in the third
quarter compared to $13.5 million or 15.0% of restaurant sales in the
third quarter fiscal 2014. This decline was primarily related to lower
restaurant sales in the quarter along with higher payroll and related
costs, partially offset by new Combo location profits. Store level
profit is a non-GAAP measure and reconciliation to income from
continuing operations is presented after the financial statements.
-- In the third quarter, income from continuing operations was $2.5
million, or $0.09 per diluted share compared to $1.7 million, or $0.06
per diluted share, in the third quarter fiscal 2014. Results in the
third quarter of 2015 and 2014 included various special items.
Excluding special items, income from continuing operations was $2.6
million, or $0.09 per diluted share, in third quarter, compared to $1.3
million, or $0.05 per diluted share, in third quarter fiscal 2014. The
income tax provision decreased $1.2 million in the third quarter
compared to the third quarter fiscal 2014. Income from continuing
operations before special items and before provision for income taxes
was approximately $3.0 million, or $0.10 per diluted share in the third
quarter, consistent with the third quarter fiscal 2014.
Reconciliation of income from continuing operations to income from continuing operations, before special items and income taxes( (1,2)):
Q3 FY2015 Q3 FY2014
--------- ---------
Item Amount Per Share Amount Per Share
($000s) ($) ($000s) ($)
---- ------- ---------- ------- ----------
Income from continuing
operations $2,529 $0.09 $1,741 $0.06
Asset charges; loss (gain)
on disposal of assets (402) (0.01) (675) (0.02)
Loss from Cheeseburger in
Paradise (3) 192 0.00 216 0.01
Cheeseburger in Paradise
locations closed for
conversion (4) 271 0.01
------------------------ --- ----
Income from continuing
operations, before
special items $2,590 $0.09 $1,283 $0.05
Addback Income Tax
Provision 395 0.01 1,621 0.05
Income from continuing
operations, before
special items and taxes $2,985 $0.10 $2,904 $0.10
------------------------ ------ ----- ------ -----
(1) Luby's uses income from continuing
operations, before special items
and income taxes, 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 and income
taxes, 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 general and
administrative, 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.
Third Quarter Operating Expense Review
Cost of food as a percentage of restaurant sales decreased to 28.4% in the third quarter compared to 28.6% in the third quarter fiscal 2014. The cost of food as a percentage of restaurant sales decreased in part due to higher average menu prices, partially offset by higher food commodity prices.
In the third quarter, payroll and related costs as a percentage of restaurant sales increased to 34.0% compared to 33.3% in the third quarter fiscal 2014. The increase reflects primarily the fixed component of management labor costs, and to a lesser extent hourly labor costs, over lower sales volumes. These increases were partially offset by lower management and hourly labor costs as a percentage of restaurant sales at our Combo locations where the prior year included increased labor deployed during the first several months of operations at newly opened Combo locations.
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 decreased to 17.4% in the third quarter from 17.7% in the third quarter fiscal 2014. The decrease was attributable to lower utilities expenses, insurance costs, and marketing and advertising costs as percentage of restaurant sales. These expenses were partially offset by higher supplies 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 third quarter, consistent with occupancy costs of $4.8 million in the third quarter fiscal 2014.
Opening costs include labor, supplies, occupancy, and other costs necessary to support the restaurant through its opening period. Opening costs were $0.4 million in the third quarter compared to $0.3 million in the third quarter fiscal 2014. Included in the opening costs in the third quarter were the carrying costs for five locations that were previously operated as Cheeseburger in Paradise restaurants and were selected for conversion to Fuddruckers restaurants, one of which is schedule to re-open this month.
Depreciation and amortization expense increased 1.6% to $4.8 million in the third quarter compared to $4.7 million in the third quarter fiscal 2014. This increase was due primarily to the addition of depreciation related to new capital expenditures from new construction and restaurant conversion activity offset by the reduction in depreciation related to certain assets reaching the end of their depreciable lives.
General and administrative expenses decreased to $7.3 million in the third quarter compared to $8.3 million in the third quarter fiscal 2014. General and administrative expenses included decreased spending on outside professional fees and services, office supplies and equipment, travel expenses, and lower overall compensation expenses. As a percentage of total revenues, general and administrative expenses were 7.8% in the third quarter, a decrease from 8.7% in the third quarter last year.
Balance Sheet and Capital Expenditures
We ended the third quarter with an outstanding debt balance of $48.0 million, down from $54.5 million at the end of the second quarter. During the third quarter, our capital expenditures were $5.4 million bringing the total for the first three quarters of fiscal 2015 to $16.4 million, down from $31.1 million for the first three quarters of fiscal 2014. At the end of the third quarter, we had $1.6 million in cash and $174.1 million in total shareholders' equity.
Restaurant Counts:
FY2015 Year Begin FY15 YTD Openings FY15 YTD Closings FY2015 Q3 End
----------------- ----------------- -------------
Luby's Cafeterias(1) 94 1 (1) 94
Fuddruckers(1) 71 4 (3) 72
Cheeseburger in
Paradise 8 8
Other restaurants(2) 1 1
Total 174 5 (4) 175
--- --- --- ---
(1) Includes 6 restaurants that
are part of Combo locations
(2) Other restaurants include one
Bob Luby's Seafood
Fiscal 2015 Outlook
"We remain focused on improving store level profit across all of our restaurant brands through dedicated efforts to continually enhance our product offerings and provide superior service to our guests. Our entire team is focused on improving sales and profitability through efficient operating cost management, store-level performance initiatives and modest price adjustments on selected menu items. Our fiscal 2015 expectation 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 continue to effectively manage our capital expenditures in fiscal 2015 and we expect to achieve our capital expenditure guidance range for fiscal 2015 of between $20 and $22 million. Over the next 24 months, we also expect to sell excess real estate and redeploy over $15 million in estimated net proceeds into a new remodel program, new units, and debt reduction. Our strategy to enhance growth through the opening of new Combo locations remains on track. We are actively looking for the next Combo site in the Southern U.S. in new markets where we do not already operate with our Luby's Cafeteria brand. In our franchise pipeline, we estimate six new Fuddruckers restaurant location openings in fiscal 2015, in both domestic and international markets, including Italy, Poland, Panama, and Chile," concluded Pappas.
Conference Call
Luby's will host a conference call on June 11, 2015 at 10:00 a.m. Central Time to discuss further its third quarter fiscal 2015 results. To access the call live, dial (412) 902-0030 and use the access code 13607675# 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 June 17, 2015 and may be accessed by calling (201) 612-7415 and using the access code 13607675#. 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 175 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 94 Luby's Cafeterias, 72 Fuddruckers, 8 Cheeseburger in Paradise and one Bob Luby's Seafood Grill. The Company is the franchisor for 105 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 21 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.
For additional information contact:
Dennard-Lascar Associates
713-529-6600
Rick Black / Ken Dennard
Investor Relations
Luby's, Inc.
Consolidated Statements of Operations (unaudited)
(In thousands except per share data)
-----------------------------------
Quarter Ended Three Quarters Ended
------------- --------------------
May 6, May 7, May 6, May 7,
2015 2014 2015 2014
---- ---- ---- ----
(12 weeks) (12 weeks) (36 weeks) (36 weeks)
SALES:
Restaurant sales $88,788 $90,010 $254,832 $252,891
Culinary contract services 3,624 4,534 11,993 12,783
Franchise revenue 1,578 1,684 4,764 4,744
Vending revenue 112 131 355 358
--- --- --- ---
TOTAL SALES 94,102 96,359 271,944 270,776
COSTS AND EXPENSES:
Cost of food 25,225 25,754 74,189 72,665
Payroll and related costs 30,216 29,971 89,372 87,384
Other operating expenses 15,442 15,967 47,144 46,511
Occupancy costs 4,759 4,845 14,167 14,374
Opening costs 427 334 2,035 1,365
Cost of culinary contract services 3,087 3,974 10,369 11,142
Depreciation and amortization 4,750 4,674 14,580 13,466
General and administrative expenses 7,312 8,342 23,088 24,526
Provision for asset impairments, net - - 218 1,539
Net gain on disposition of property and
equipment (609) (1,023) (1,696) (956)
---- ------ ------ ----
Total costs and expenses 90,609 92,838 273,466 272,016
------ ------ ------- -------
INCOME (LOSS) FROM OPERATIONS 3,493 3,521 (1,522) (1,240)
Interest income 1 1 3 4
Interest expense (599) (410) (1,624) (955)
Other income, net 29 250 301 806
--- --- --- ---
Income (loss) before income taxes and
discontinued operations 2,924 3,362 (2,842) (1,385)
Provision (benefit) for income taxes 395 1,621 (1,326) (853)
--- ----- ------ ----
Income (loss) from continuing operations 2,529 1,741 (1,516) (532)
Loss from discontinued operations, net
of income taxes (176) (12) (509) (1,468)
---- --- ---- ------
NET INCOME (LOSS) $2,353 $1,729 $(2,025) $(2,000)
====== ====== ======= =======
Income (loss) per share from continuing
operations:
Basic $0.09 $0.06 $(0.05) $(0.02)
Assuming dilution 0.09 0.06 (0.05) (0.02)
==== ==== ===== =====
Loss per share from discontinued
operations:
Basic $(0.01) $ - $(0.02) $(0.05)
Assuming dilution (0.01) - (0.02) (0.05)
===== === ===== =====
Net income (loss) per share:
Basic $0.08 $0.06 $(0.07) $(0.07)
Assuming dilution 0.08 0.06 (0.07) (0.07)
==== ==== ===== =====
Weighted average shares outstanding:
Basic 29,009 28,791 28,940 28,777
Assuming dilution 29,111 29,476 28,940 28,777
The accompanying notes are an integral part of these Consolidated Financial Statements.
The following table contains information derived from Luby's Consolidated Statements of Operations expressed as a percentage of total sales, or restaurant sales, applicable. Percentages may not add due to rounding.
Quarter Ended Three Quarters Ended
------------- --------------------
May 6, May 7, May 6, May 7,
2015 2014 2015 2014
---- ---- ---- ----
(12 weeks) (12 weeks) (36 weeks) (36 weeks)
Restaurant sales 94.4% 93.4% 93.7% 93.4%
Culinary contract
services 3.9% 4.7% 4.4% 4.7%
Franchise revenue 1.7% 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 28.4% 28.6% 29.1% 28.7%
Payroll and related
costs 34.0% 33.3% 35.1% 34.6%
Other operating
expenses 17.4% 17.7% 18.5% 18.4%
Occupancy 5.4% 5.4% 5.6% 5.7%
--- --- --- ---
Store level profit 14.8% 15.0% 11.8% 12.6%
==== ==== ==== ====
(As a percentage of
total sales)
General and
administrative
expenses 7.8% 8.7% 8.5% 9.1%
INCOME (LOSS) FROM
OPERATIONS 3.7% 3.7% (0.6)% (0.5)%
Luby's, Inc.
Consolidated Balance Sheets
(In thousands, except per share data)
------------------------------------
May 6, August 27,
2015 2014
---- ----
(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $1,575 $2,788
Trade accounts and other
receivables, net 4,220 4,112
Food and supply inventories 4,422 5,556
Prepaid expenses 4,964 2,815
Assets related to discontinued
operations 26 52
Deferred income taxes 605 587
--- ---
Total current assets 15,812 15,910
Property held for sale 6,261 991
Assets related to discontinued
operations 4,725 4,204
Property and equipment, net 205,497 213,492
Intangible assets, net 23,014 24,014
Goodwill 1,643 1,681
Deferred income taxes 13,254 11,294
Other assets 3,764 3,849
----- -----
Total assets $273,970 $275,435
======== ========
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current Liabilities:
Accounts payable $19,183 $26,269
Liabilities related to
discontinued operations 469 590
Accrued expenses and other
liabilities 24,639 23,107
------ ------
Total current liabilities 44,291 49,966
Credit facility debt 48,000 42,000
Liabilities related to
discontinued operations 62 278
Other liabilities 7,517 8,167
----- -----
Total liabilities 99,870 100,411
====== =======
Commitments and Contingencies
SHAREHOLDERS' EQUITY
Common stock, $0.32 par value;
100,000,000 shares authorized;
shares issued were 29,097,902 and
28,949,523, respectively; shares
outstanding were 28,597,902 and
28,449,523, respectively 9,311 9,264
Paid-in capital 28,410 27,356
Retained earnings 141,154 143,179
Less cost of treasury stock,
500,000 shares (4,775) (4,775)
------ ------
Total shareholders' equity 174,100 175,024
------- -------
Total liabilities and
shareholders' equity $273,970 $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)
-------------
Three Quarters Ended
--------------------
May 6, May 7,
2015 2014
---- ----
(36 weeks) (36 weeks)
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net loss $(2,025) $(2,000)
Adjustments to reconcile net
income to net cash provided
by operating activities:
Provision for asset
impairments, net of gains/
losses on property sales (1,386) 1,352
Depreciation and amortization 14,624 13,604
Amortization of debt issuance
cost 127 78
Non-cash compensation expense 862 254
Share-based compensation
expense 240 573
Increase in tax benefits from
share-based compensation - (53)
Deferred tax benefit (1,978) (1,889)
------ ------
Cash provided by operating
activities before changes in
operating assets and
liabilities 10,464 11,919
Changes in operating assets
and liabilities, net of
business acquisition:
Decrease (increase) in trade
accounts and other
receivables (108) 112
Decrease (increase) in food
and supply inventories 1,135 (466)
Decrease (increase) in prepaid
expenses and other assets (1,979) 840
Decrease in accounts payable,
accrued expenses and other
liabilities (5,350) (617)
------ ----
Net cash provided by operating
activities 4,162 11,788
----- ------
CASH FLOWS FROM INVESTING
ACTIVITIES:
Proceeds from disposal of
assets and property held for
sale 5,142 2,713
Purchases of property and
equipment (16,429) (31,124)
Decrease in note receivable 50 23
--- ---
Net cash used in investing
activities (11,237) (28,388)
------- -------
CASH FLOWS FROM FINANCING
ACTIVITIES:
Credit facility borrowings 80,100 77,800
Credit facility repayments (74,100) (61,000)
Debt issue cost (253) -
Proceed from exercise of stock
options 115 32
Tax benefit on stock options - 53
--- ---
Net cash provided by financing
activities 5,862 16,885
----- ------
Net increase (decrease) in
cash and cash equivalents (1,213) 285
Cash and cash equivalents at
beginning of period 2,788 1,528
----- -----
Cash and cash equivalents at
end of period $1,575 $1,813
====== ======
Cash paid for:
Income taxes $ - $ -
Interest 1,505 834
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, 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 income from continuing operations, a GAAP measure:
Quarter Ended Three Quarters Ended
------------- --------------------
May 6, May 7, May 6, May 7,
2015 2014 2015 2014
---- ---- ---- ----
(12 weeks) (12 weeks) (36 weeks) (36 weeks)
(In thousands)
Store level profit $13,146 $13,473 $29,960 $31,957
Plus:
Sales from vending
revenue 112 131 355 358
Sales from culinary
contract services 3,624 4,534 11,993 12,783
Sales from
franchise revenue 1,578 1,684 4,764 4,744
Less:
Opening costs 427 334 2,035 1,365
Cost of culinary
contract services 3,087 3,974 10,369 11,142
Depreciation and
amortization 4,750 4,674 14,580 13,466
General and
administrative
expenses 7,312 8,342 23,088 24,526
Provision for asset
impairments, net - - 218 1,539
Net gain on
disposition of
property and
equipment (609) (1,023) (1,696) (956)
Interest income (1) (1) (3) (4)
Interest expense 599 410 1,624 955
Other income, net (29) (250) (301) (806)
Provision (benefit)
for income taxes 395 1,621 (1,326) (853)
--- ----- ------ ----
Income (loss) from
continuing
operations $2,529 $1,741 $(1,516) $(532)
====== ====== ======= =====
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, non-cash 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 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 Three Quarters Ended
------------- --------------------
May 6, May 7, May 6, May 7,
2015 2014 2015 2014
---- ---- ---- ----
(12 weeks) (12 weeks) (36 weeks) (36 weeks)
Income (loss) from
continuing
operations $2,529 $1,741 $(1,516) (532)
Provision (benefit)
for income taxes 395 1,621 (1,326) (853)
Depreciation and
amortization 4,750 4,674 14,580 13,466
Interest expense,
net 598 409 1,621 951
Net gain on
disposition of
assets (609) (1,023) (1,696) (956)
Provision for asset
impairments - - 218 1,539
Non-cash
compensation
expense 241 147 542 476
Less: Other
income, net (29) (250) (301) (806)
--- ---- ---- ----
Adjusted EBITDA $7,875 $7,309 $12,122 $13,285
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/lubys-reports-third-quarter-fiscal-2015-results-300097336.html
SOURCE Luby's, Inc.
