HOUSTON, Nov. 8, 2017 /PRNewswire/ -- Luby's, Inc. (NYSE:
LUB) ("Luby's") today announced unaudited financial results for its
fifty-two week fiscal year 2017 and its twelve-week fourth quarter
fiscal 2017, which ended on August 30, 2017. Comparisons
in this press release for the fourth quarter fiscal 2017 are
referred to as "fourth quarter." Comparisons to the fourth quarter
fiscal 2016 are to the thirteen-week period that ended August 31, 2016. The company reports 16 weeks in
its first fiscal quarter, and the remaining three quarters
typically include 12 weeks. 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 was a year where the fourth quarter had 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.
Fiscal Year 2017 Summary Points:
- Total sales were $376.0 million,
including $350.8 million in
restaurant sales. On a comparable 52-week basis, total sales
decreased approximately $19.5
million, including a $9.2
million reduction in sales due to closure of underperforming
restaurants in fiscal 2017 and fiscal 2016.
- Total same-store sales decreased 3.4%, including a 3.3%
same-store sales decrease at the Luby's Cafeterias and a 1.8%
same-store sales decrease at Fuddruckers. Hurricane Harvey reduced
Luby's same-store sales by approximately 1.0% and reduced
Fuddruckers same-store sales by approximately 0.6%.
- Culinary contract services revenue increased $1.2 million, or 7.5%, to $17.9 million compared to fiscal 2016. Culinary
contract services operated at 25 locations at the end of fiscal
2017 compared to 24 locations at the end of fiscal 2016.
- Selling, general and administrative expenses decreased
$4.5 million, or 10.7%, to
$37.9 million compared to fiscal
2016. This decrease included reductions in salaries, benefits, and
other compensation expense, lower corporate travel expense, and
reduced investment in marketing and advertising.
- Loss from continuing operations was $22.8 million, or $0.77 per diluted share, in fiscal 2017, compared
to a loss of $10.3 million, or
$0.35 per diluted share, in fiscal
2016. Loss from continuing operations included non-cash asset
impairment charges of $10.6 million
($7.0 million after-tax) and
$1.4 million ($1.0 million after-tax) in fiscal 2017 and fiscal
2016, respectively. Loss from continuing operations also included
non-cash charges for deferred tax asset valuation allowance
increases of approximately $9.5
million and $6.9 million in
fiscal 2017 and fiscal 2016, respectively. Excluding special items,
loss from continuing operations was $6.1
million, or $0.21 per diluted
share, in fiscal 2017, compared to a loss of $1.6 million, or $0.06 per diluted share, in fiscal 2016.
- Adjusted EBITDA was $13.3 million
in fiscal 2017 compared to $22.1
million in fiscal 2016. $6.0
million of the $8.8 million
decline in Adjusted EBITDA occurred in the first two fiscal
quarters of fiscal 2017.
- One company-owned Fuddruckers Restaurant and eight
franchise-owned Fuddruckers Restaurants opened during fiscal
2017.
- Nine underperforming company-owned restaurants were closed in
fiscal 2017 and five were closed in fiscal 2016. These restaurants
accounted for $2.1 million in pre-tax
loss, or $1.4 million in after-tax
loss from continuing operations, in fiscal 2017 prior to their
closure.
- Five owned property locations were sold generating $8.0 million in net cash proceeds; the proceeds
were used to reduce our outstanding debt balance.
Chris Pappas, President and CEO,
commented, "We ended the year with improved cost controls and
reduced capital expenditures despite a challenging economic
environment and unforeseen weather conditions during the
quarter. We are encouraged by the progress of operational and
guest initiatives that were implemented during the year to help
improve guest service, store level profit and EBITDA going
forward.
"Hurricane Harvey and its after effects impacted the last week
of the fiscal year. While we lost almost 200 restaurant days
due to closures, we were fortunate that approximately 60
restaurants in the path of the storm were mostly spared from severe
physical damage. No Luby's Cafeteria suffered major damage,
and only two Fuddruckers restaurants in the Houston area had water
damage and remain closed for restoration. We have operated
multiple restaurant brands throughout Texas, particularly near the Gulf Coast, for
decades and I am continually impressed by the tremendous dedication
of our team members during major weather events. Our team
members worked tirelessly to get all of our restaurants open and
fully operational as quickly as possible to serve relief workers
and guests — all with the goal of providing food service to assist
our communities recover from the impact of the storm. Luby's
is proud to be Houston Strong!
"Our team continues to focus on enhancing guest experiences
across all of our brands, including through technological advances
to improve guests' interactions and speed of service. We now have
three Fuddruckers locations with self-order kiosks and our iconic
brands are now available for delivery through multiple trusted
third party options.
"Our Culinary Contract Services segment revenue grew
significantly in the fourth quarter and is on track to show
meaningful growth in fiscal year 2018. In addition, sales of Luby's
famous Mac & Cheese and Fried Fish from our partnership with
H-E-B grocery stores in the state of Texas remain promising and continue to provide
additional product branding opportunities for our Company. We
remain optimistic in our ability to overcome industry challenges
and strengthen our iconic brands that guests have loved and trusted
for decades."
Same-Store Sales Year-Over-Year Comparison
|
Quarter
Ended
|
Four Quarters
Ended
|
|
December 21,
2016
|
March 15,
2017
|
June 7,
2017
|
August 30,
2017
|
August 30,
2017
|
|
Q1
2017(3)
|
Q2
2017(3)
|
Q3
2017(3)
|
Q4
2017(3)
|
Full
Year
2017(3)
|
|
(16 weeks vs 16
weeks)
|
(12 weeks vs 12
weeks)
|
(12 weeks vs 12
weeks)
|
(12 weeks vs 12
weeks)
|
(52 weeks vs 52
weeks)
|
Luby's
Cafeterias
|
(2.2)%
|
(4.4)%
|
(2.5)%
|
(4.5)%
|
(3.3)%
|
Fuddruckers
Restaurants
|
(1.6)%
|
(1.1)%
|
(0.9)%
|
(3.6)%
|
(1.8)%
|
Cheeseburger in
Paradise
|
(7.8)%
|
(7.3)%
|
(9.8)%
|
(15.4)%
|
(10.5)%
|
Combo locations
(1)
|
(2.3)%
|
(6.5)%
|
(5.5)%
|
(7.2)%
|
(5.3)%
|
Total same-
store sales (2)
|
(2.3)%
|
(3.8)%
|
(2.7)%
|
(5.1)%
|
(3.4)%
|
|
|
(1)
|
Combo locations
consist of a side-by-side Luby's Cafeteria and Fuddruckers
Restaurant at one property location.
|
(2)
|
Luby's includes a
restaurant's sales results into the same-store sales calculation in
the quarter after that store has been open for six complete
consecutive quarters. In the fourth quarter, there were 82
Luby's Cafeterias, 63 Fuddruckers Restaurants, 6 Combo locations,
and 8 Cheeseburger in Paradise locations that met the definition of
same-stores.
|
(3)
|
Q1 2017, Q2 2017, Q3
2017, Q4 2017 and YTDQ4 2017 same-store sales reflect the
year-over-year change in restaurant sales for the locations
included in the same-store grouping for each of the comparable
periods.
|
Fourth Quarter Same-Store Sales:
- Luby's Cafeterias same-store sales decreased 4.5% in the fourth
quarter. An 8.6% decrease in guest traffic was offset by a 4.1%
increase in average spend per guest. Hurricane Harvey reduced
Luby's same-store sales by approximately 3.9%.
- Fuddruckers Restaurants same-store sales decreased 3.6% in the
fourth quarter. The 3.6% decrease was the result of a 7.6% decrease
in guest traffic offset by a 4.0% increase in average spend per
guest. Hurricane Harvey reduced Fuddruckers restaurant same-store
sales by approximately 2.3%.
- Cheeseburger in Paradise same-store sales (representing eight
Cheeseburger in Paradise locations) decreased 15.4% in the fourth
quarter.
- Combo location same-store sales (representing all six Combo
locations) declined 7.2% in the fourth quarter.
Fourth Quarter Total Restaurant Sales:
($ thousands)
|
Quarter
Ended
|
Quarter
Ended
|
Restaurant
Brand
|
August 30,
2017
|
% of
Total
|
August 31,
2016
|
% of
Total
|
|
(12 weeks)
|
(12 weeks)
|
(13 weeks)
|
(13 weeks)
|
Luby's
Cafeterias
|
$
|
46,915
|
|
59.3%
|
$
|
54,253
|
|
59.1%
|
Fuddruckers
Restaurants
|
22,794
|
|
28.8%
|
26,218
|
|
28.6%
|
Combo
locations
|
4,739
|
|
6.0%
|
5,512
|
|
6.0%
|
Cheeseburger in
Paradise
|
4,629
|
|
5.9%
|
5,792
|
|
6.3%
|
Total Restaurant
Sales
|
$
|
79,077
|
|
100.0%
|
$
|
91,775
|
|
100.0%
|
- Restaurant sales in the fourth quarter decreased to
$79.1 million versus $91.8 million in the fourth quarter fiscal 2016.
The decrease was due to one less operating week in the fourth
quarter fiscal 2017 compared to the fourth quarter fiscal 2016, the
impact of closed restaurants, and a 5.1% decline in same-store
sales, partially attributable to the impact of Hurricane Harvey.
Four Luby's Cafeterias and five company-owned Fuddruckers
Restaurants closed in fiscal 2017.
- 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 $8.6 million, or 10.8% of restaurant sales, in
the fourth quarter compared to $12.9
million, or 14.0% of restaurant sales, during the fourth
quarter fiscal 2016. Hurricane Harvey reduced store level profit by
approximately $1.5 million in the
fourth quarter. The impact of the hurricane as well as lower
underlying same-store sales, coupled with higher restaurant labor
cost, higher restaurant services costs, and higher repairs and
maintenance costs led to this decrease in profitability. Payroll
and related costs were impacted by changes in workers' compensation
liability estimates in both fourth quarter fiscal 2017 and fiscal
2016; these changes in estimates amounted to an approximate
decrease of 0.8% of restaurant sales. Store level profit is a
non-GAAP measure, and reconciliation to loss from continuing
operations is presented after the financial statements.
- Culinary Contract Services revenues increased to $5.8 million with 25 operating locations at the
end of the fourth quarter compared to $4.0
million with 24 operating locations at the end of fourth
quarter fiscal 2016; the increase in sales was due to a change in
the mix of locations whereby new higher sales volume locations
replaced lower sales volume locations that ceased operations.
Culinary profit was 17.5% of Culinary Contract Services sales in
the fourth quarter and 12.3% in the fourth quarter fiscal
2016.
- Franchise revenue decreased to $1.6
million during the fourth quarter compared to $1.8 million during the fourth quarter fiscal
2016; the decrease was due in part to one less operating week and
decreases in sales volumes at franchise locations. In the fourth
quarter, a franchisee opened one location in Delaware that we previously operated as a
company-owned location. We ended fiscal 2017 with a franchise
network of 113 domestic and international locations; during fiscal
2017 eight franchise locations opened and a separate eight
franchise locations ceased operations.
- Selling, general and administrative expenses decreased
$1.8 million, or 17.4%, to
$8.3 million compared to fiscal 2016.
This decrease included reductions in salaries, benefits, and other
compensation expense, lower outside professional service fees,
lower corporate travel expense, and reduced investment in marketing
and advertising.
- Loss from continuing operations was $4.1
million, or a loss of $0.14
per diluted share, in the fourth quarter compared to a loss of
$7.8 million, or $0.27 per diluted share, in the fourth quarter
fiscal 2016. Excluding special items, loss from continuing
operations in the fourth quarter was $1.7
million, or $0.06 per diluted
share, compared to income of $0.3
million, or $0.01 per diluted
share, in the fourth quarter fiscal 2016.
Balance Sheet and Capital Expenditures
We ended the fourth quarter with a debt balance outstanding of
$31.0 million, down from $37.0 million at the end of fiscal 2016, a
reduction of 16.3%. During the fourth quarter, our capital
expenditures were $2.4 million,
compared to $3.9 million in the
fourth quarter fiscal 2016. For the full year, capital
expenditures were $12.5 million for
fiscal 2017, compared to $18.3
million for fiscal 2016. At the end of the fourth
quarter, we had $1.1 million in cash
and $144.1 million in total
shareholders' equity.
Restaurant Counts:
|
August 31,
2016
|
|
Fiscal 2017
YTD
Openings
|
|
Fiscal 2017
YTD
Closings
|
|
August 30,
2017
|
Luby's
Cafeterias(1)
|
91
|
|
—
|
|
(3)
|
|
88
|
Fuddruckers
Restaurants(1)
|
75
|
|
1
|
|
(5)
|
|
71
|
Cheeseburger in
Paradise
|
8
|
|
—
|
|
—
|
|
8
|
Other
restaurants(2)
|
1
|
|
—
|
|
(1)
|
|
—
|
Total
|
175
|
|
1
|
|
(9)
|
|
167
|
|
|
(1)
|
Includes 6
restaurants that are part of Combo locations.
|
(2)
|
Other restaurants
include one Bob Luby's Seafood Grill which closed in fiscal
2017
|
Conference Call
Luby's will host a conference call on November 9, 2017 at 10:00
a.m. Central Time to discuss further its fourth quarter
fiscal 2017 results. To access the call live, dial (412) 902-0030
and use the access code 13671860# 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 16,
2017 and may be accessed by calling (201) 612-7415 and using
the access code 13671860#. 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 163 restaurants nationally as
of November 8, 2017: 88 Luby's Cafeterias, 68 Fuddruckers, and
7 Cheeseburger in Paradise. The Company is also the franchisor for
110 Fuddruckers franchise locations across the United States (including Puerto Rico), Canada, Mexico, Italy, the Dominican
Republic, Panama,
Chile, and Colombia. Additionally, a licensee operates 34
restaurants with the exclusive right to use the Fuddruckers
proprietary marks, trade dress, and system in certain countries in
the Middle East. The Company does not receive revenue or
royalties from these Middle East
restaurants. Luby's Culinary Contract Services provides food
service management to 23 sites consisting of healthcare, higher
education, sport stadiums, and corporate dining locations as of
November 8, 2017.
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
|
|
Year
Ended
|
|
August 30,
2017
|
|
August 31,
2016
|
|
August 30,
2017
|
|
August 31,
2016
|
|
(12
weeks)
|
|
(13
weeks)
|
|
(52
weeks)
|
|
(53
weeks)
|
SALES:
|
|
|
|
|
|
|
|
Restaurant
sales
|
$
|
79,077
|
|
|
$
|
91,775
|
|
|
$
|
350,818
|
|
|
$
|
378,111
|
|
Culinary contract
services
|
5,826
|
|
|
3,969
|
|
|
17,943
|
|
|
16,695
|
|
Franchise
revenue
|
1,556
|
|
|
1,839
|
|
|
6,723
|
|
|
7,250
|
|
Vending
revenue
|
130
|
|
|
146
|
|
|
547
|
|
|
583
|
|
TOTAL
SALES
|
86,589
|
|
|
97,729
|
|
|
376,031
|
|
|
402,639
|
|
COSTS AND
EXPENSES:
|
|
|
|
|
|
|
|
Cost of
food
|
22,361
|
|
|
25,723
|
|
|
98,714
|
|
|
106,980
|
|
Payroll and related
costs
|
28,511
|
|
|
32,953
|
|
|
125,997
|
|
|
132,960
|
|
Other operating
expenses
|
14,717
|
|
|
15,232
|
|
|
61,924
|
|
|
60,961
|
|
Occupancy
costs
|
5,067
|
|
|
5,132
|
|
|
21,787
|
|
|
22,374
|
|
Opening
costs
|
61
|
|
|
99
|
|
|
492
|
|
|
787
|
|
Cost of culinary
contract services
|
4,808
|
|
|
3,480
|
|
|
15,774
|
|
|
14,955
|
|
Cost of franchise
operations
|
355
|
|
|
397
|
|
|
1,733
|
|
|
1,877
|
|
Depreciation and
amortization
|
4,461
|
|
|
4,351
|
|
|
20,438
|
|
|
21,889
|
|
Selling, general and
administrative expenses
|
8,347
|
|
|
10,110
|
|
|
37,878
|
|
|
42,422
|
|
Provision for asset
impairments and restaurant closings
|
3,447
|
|
|
1,233
|
|
|
10,567
|
|
|
1,442
|
|
Net loss (gain) on
disposition of property and equipment
|
(2,023)
|
|
|
110
|
|
|
(1,804)
|
|
|
(684)
|
|
Total costs and
expenses
|
90,112
|
|
|
98,820
|
|
|
393,500
|
|
|
405,963
|
|
LOSS FROM
OPERATIONS
|
(3,523)
|
|
|
(1,091)
|
|
|
(17,469)
|
|
|
(3,324)
|
|
Interest
income
|
2
|
|
|
2
|
|
|
8
|
|
|
4
|
|
Interest
expense
|
(544)
|
|
|
(574)
|
|
|
(2,443)
|
|
|
(2,247)
|
|
Other income
(expense), net
|
(142)
|
|
|
188
|
|
|
(454)
|
|
|
186
|
|
Loss before income
taxes and discontinued operations
|
(4,207)
|
|
|
(1,475)
|
|
|
(20,358)
|
|
|
(5,381)
|
|
Provision (benefit)
for income taxes
|
(138)
|
|
|
6,314
|
|
|
2,438
|
|
|
4,875
|
|
Loss from continuing
operations
|
(4,069)
|
|
|
(7,789)
|
|
|
(22,796)
|
|
|
(10,256)
|
|
Loss from
discontinued operations, net of income taxes
|
(32)
|
|
|
(13)
|
|
|
(466)
|
|
|
(90)
|
|
NET LOSS
|
$
|
(4,101)
|
|
|
$
|
(7,802)
|
|
|
$
|
(23,262)
|
|
|
$
|
(10,346)
|
|
Loss per share from
continuing operations:
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.14)
|
|
|
$
|
(0.27)
|
|
|
$
|
(0.77)
|
|
|
$
|
(0.35)
|
|
Assuming
dilution
|
$
|
(0.14)
|
|
|
$
|
(0.27)
|
|
|
$
|
(0.77)
|
|
|
$
|
(0.35)
|
|
Loss per share from
discontinued operations:
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.00)
|
|
|
$
|
(0.00)
|
|
|
$
|
(0.02)
|
|
|
$
|
(0.00)
|
|
Assuming
dilution
|
$
|
(0.00)
|
|
|
$
|
(0.00)
|
|
|
$
|
(0.02)
|
|
|
$
|
(0.00)
|
|
Net loss per
share:
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.14)
|
|
|
$
|
(0.27)
|
|
|
$
|
(0.79)
|
|
|
$
|
(0.35)
|
|
Assuming
dilution
|
$
|
(0.14)
|
|
|
$
|
(0.27)
|
|
|
$
|
(0.79)
|
|
|
$
|
(0.35)
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
29,554
|
|
|
29,281
|
|
|
29,476
|
|
|
29,226
|
|
Assuming
dilution
|
29,554
|
|
|
29,281
|
|
|
29,476
|
|
|
29,226
|
|
The following table contains information derived from the
Company's Consolidated Statements of Operations expressed as a
percentage of sales. Percentages may not total due to
rounding.
|
Quarter
Ended
|
|
Year
Ended
|
|
August 30,
2017
|
August 31,
2016
|
|
August 30,
2017
|
August 31,
2016
|
|
(12
weeks)
|
(13
weeks)
|
|
(52
weeks)
|
(53
weeks)
|
Restaurant
sales
|
91.3
|
%
|
93.9
|
%
|
|
93.3
|
%
|
93.9
|
%
|
Culinary contract
services
|
6.7
|
%
|
4.1
|
%
|
|
4.8
|
%
|
4.1
|
%
|
Franchise
revenue
|
1.8
|
%
|
1.9
|
%
|
|
1.8
|
%
|
1.8
|
%
|
Vending
revenue
|
0.2
|
%
|
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
|
28.3
|
%
|
28.0
|
%
|
|
28.1
|
%
|
28.3
|
%
|
Payroll and related
costs
|
36.1
|
%
|
35.9
|
%
|
|
35.9
|
%
|
35.2
|
%
|
Other operating
expenses
|
18.6
|
%
|
16.6
|
%
|
|
17.7
|
%
|
16.1
|
%
|
Occupancy
costs
|
6.4
|
%
|
5.6
|
%
|
|
6.2
|
%
|
5.9
|
%
|
Vending
revenue
|
(0.2)
|
%
|
(0.2)
|
%
|
|
(0.2)
|
%
|
(0.2)
|
%
|
Store level
profit
|
10.8
|
%
|
14.0
|
%
|
|
12.2
|
%
|
14.7
|
%
|
|
|
|
|
|
|
(As a percentage
of total sales)
|
|
|
|
|
|
Marketing and
advertising expenses
|
0.6
|
%
|
1.3
|
%
|
|
1.4
|
%
|
1.4
|
%
|
General and
administrative expenses
|
9.0
|
%
|
9.0
|
%
|
|
8.7
|
%
|
9.1
|
%
|
Selling, general and
administrative expenses
|
9.6
|
%
|
10.3
|
%
|
|
10.1
|
%
|
10.5
|
%
|
LOSS FROM
OPERATIONS
|
(4.1)
|
%
|
(1.1)
|
%
|
|
(4.6)
|
%
|
(0.8)
|
%
|
Luby's,
Inc.
|
Consolidated
Balance Sheets
|
(In thousands,
except per share data)
|
|
|
August 30,
2017
|
|
August 31,
2016
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
Current
Assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
1,096
|
|
|
$
|
1,339
|
|
Trade accounts and
other receivables, net
|
8,011
|
|
|
5,919
|
|
Food and supply
inventories
|
4,453
|
|
|
4,596
|
|
Prepaid
expenses
|
3,431
|
|
|
3,147
|
|
Assets related to
discontinued operations
|
—
|
|
|
1
|
|
Deferred income
taxes
|
—
|
|
|
540
|
|
Total current
assets
|
16,991
|
|
|
15,542
|
|
Property held for
sale
|
3,372
|
|
|
5,522
|
|
Assets related to
discontinued operations
|
2,755
|
|
|
3,192
|
|
Property and
equipment, net
|
172,814
|
|
|
193,218
|
|
Intangible assets,
net
|
19,640
|
|
|
21,074
|
|
Goodwill
|
1,068
|
|
|
1,605
|
|
Deferred income
taxes
|
7,254
|
|
|
8,738
|
|
Other
assets
|
2,563
|
|
|
3,334
|
|
Total
assets
|
$
|
226,457
|
|
|
$
|
252,225
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Current
Liabilities:
|
|
|
|
Accounts
payable
|
$
|
15,937
|
|
|
$
|
17,539
|
|
Liabilities related
to discontinued operations
|
367
|
|
|
412
|
|
Current portion of
credit facility debt
|
—
|
|
|
—
|
|
Accrued expenses and
other liabilities
|
28,076
|
|
|
23,752
|
|
Total current
liabilities
|
44,380
|
|
|
41,703
|
|
Credit facility debt,
net
|
30,698
|
|
|
37,000
|
|
Liabilities related
to discontinued operations
|
16
|
|
|
17
|
|
Other
liabilities
|
7,311
|
|
|
7,752
|
|
Total
liabilities
|
$
|
82,405
|
|
|
$
|
86,472
|
|
Commitments and
Contingencies
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
Common stock, $0.32
par value; 100,000,000 shares authorized; Shares issued were
29,624,083 and 29,440,041, respectively; Shares outstanding were
29,124,083 and 28,940,041, respectively
|
9,480
|
|
|
9,421
|
|
Paid-in
capital
|
31,850
|
|
|
30,348
|
|
Retained
earnings
|
107,497
|
|
|
130,759
|
|
Less cost of treasury
stock, 500,000 shares
|
(4,775)
|
|
|
(4,775)
|
|
Total
shareholders' equity
|
144,052
|
|
|
165,753
|
|
Total liabilities and
shareholders' equity
|
$
|
226,457
|
|
|
$
|
252,225
|
|
Luby's,
Inc.
|
Consolidated
Statements of Cash Flows (unaudited)
|
(In
thousands)
|
|
|
Year
Ended
|
|
August 30,
2017
|
|
August 31,
2016
|
|
(52
weeks)
|
|
(53
weeks)
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
Net loss
|
$
|
(23,262)
|
|
|
$
|
(10,346)
|
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
Provision for asset
impairments and net loss (gain) on property sales
|
8,762
|
|
|
734
|
|
Depreciation and
amortization
|
20,438
|
|
|
21,906
|
|
Amortization of debt
issuance cost
|
348
|
|
|
313
|
|
Share-based
compensation expense
|
1,561
|
|
|
1,477
|
|
Excess tax deficit
from share-based compensation
|
—
|
|
|
119
|
|
Deferred tax
provision
|
2,792
|
|
|
4,707
|
|
Cash provided by
operating activities before changes in operating assets and
liabilities
|
10,639
|
|
|
18,910
|
|
Changes in operating
assets and liabilities:
|
|
|
|
Increase in trade
accounts and other receivables
|
(2,092)
|
|
|
(744)
|
|
Decrease (Increase)
in food and supply inventories
|
143
|
|
|
(616)
|
|
Decrease in prepaid
expenses and other assets
|
504
|
|
|
215
|
|
Increase (decrease)
in accounts payable, accrued expenses and other
liabilities
|
446
|
|
|
(3,906)
|
|
Net cash provided by
operating activities
|
9,640
|
|
|
13,859
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
Proceeds from
disposal of assets and property held for sale
|
9,286
|
|
|
4,794
|
|
Repayment of note
receivable
|
—
|
|
|
17
|
|
Purchases of property
and equipment
|
(12,502)
|
|
|
(18,253)
|
|
Net cash used in
investing activities
|
(3,216)
|
|
|
(13,442)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
Revolver
borrowings
|
107,800
|
|
|
106,000
|
|
Revolver
repayments
|
(140,400)
|
|
|
(106,500)
|
|
Debt issuance
costs
|
(652)
|
|
|
(42)
|
|
Proceeds on term
loan
|
35,000
|
|
|
—
|
|
Term loan
repayments
|
(8,415)
|
|
|
—
|
|
Excess tax deficit
from share-based compensation
|
—
|
|
|
(119)
|
|
Proceeds received on
the exercise of employee stock options
|
—
|
|
|
82
|
|
Net cash used in
financing activities
|
(6,667)
|
|
|
(579)
|
|
Net decrease in cash
and cash equivalents
|
(243)
|
|
|
(162)
|
|
Cash and cash
equivalents at beginning of period
|
1,339
|
|
|
1,501
|
|
Cash and cash
equivalents at end of period
|
$
|
1,096
|
|
|
$
|
1,339
|
|
Cash paid
for:
|
|
|
|
Income
taxes
|
$
|
411
|
|
|
$
|
357
|
|
Interest
|
1,787
|
|
|
1,873
|
|
Although store level profit, defined as restaurant sales plus
vending revenue, less cost of food, payroll and related costs,
other operating expenses, and occupancy costs is a non-GAAP
measure, we believe its presentation is useful because it
explicitly shows the results of our most significant reportable
segment. The following table reconciles between store
level profit, a non-GAAP measure to loss from continuing
operations, a GAAP measure:
|
Quarter
Ended
|
|
Year
Ended
|
|
August 30,
2017
|
|
August 31,
2016
|
|
August 30,
2017
|
|
August 31,
2016
|
|
(12
weeks)
|
|
(13
weeks)
|
|
(52
weeks)
|
|
(53
weeks)
|
|
(In
thousands)
|
|
(In
thousands)
|
Store level
profit
|
$
|
8,551
|
|
|
$
|
12,881
|
|
|
$
|
42,943
|
|
|
$
|
55,419
|
|
|
|
|
|
|
|
|
|
Plus:
|
|
|
|
|
|
|
|
Sales from culinary
contract services
|
5,826
|
|
|
3,969
|
|
|
17,943
|
|
|
16,695
|
|
Sales from franchise
operations
|
1,556
|
|
|
1,839
|
|
|
6,723
|
|
|
7,250
|
|
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
|
|
Opening
costs
|
61
|
|
|
99
|
|
|
492
|
|
|
787
|
|
Cost of culinary
contract services
|
4,808
|
|
|
3,480
|
|
|
15,774
|
|
|
14,955
|
|
Cost of franchise
operations
|
355
|
|
|
397
|
|
|
1,733
|
|
|
1,877
|
|
Depreciation and
amortization
|
4,461
|
|
|
4,351
|
|
|
20,438
|
|
|
21,889
|
|
Selling, general and
administrative expenses(a)
|
8,347
|
|
|
10,110
|
|
|
37,878
|
|
|
42,422
|
|
Provision for asset
impairments and restaurant closings
|
3,447
|
|
|
1,233
|
|
|
10,567
|
|
|
1,442
|
|
Net loss (gain) on
disposition of property and equipment
|
(2,023)
|
|
|
110
|
|
|
(1,804)
|
|
|
(684)
|
|
Interest
income
|
(2)
|
|
|
(2)
|
|
|
(8)
|
|
|
(4)
|
|
Interest
expense
|
544
|
|
|
574
|
|
|
2,443
|
|
|
2,247
|
|
Other income
(expense), net
|
142
|
|
|
(188)
|
|
|
454
|
|
|
(186)
|
|
Provision (benefit)
for income taxes
|
(138)
|
|
|
6,314
|
|
|
2,438
|
|
|
4,875
|
|
Loss from continuing
operations
|
$
|
(4,069)
|
|
|
$
|
(7,789)
|
|
|
$
|
(22,796)
|
|
|
$
|
(10,256)
|
|
|
|
(a)
|
Marketing and
advertising expense included in Selling, general and administrative
expenses was $0.5 million and $1.2 million for the fourth quarter
fiscal 2017 and 2016, respectively, and $5.1 million
and $5.6 million for the fiscal year 2017 and 2016,
respectively.
|
The Company has also provided a non-GAAP measurement which
presents income (loss) from continuing operations, before special
items. The non-GAAP measurement is not intended to replace
the presentation of our financial results in accordance with
GAAP. Rather, the Company believes that the presentation of
income (loss) from continuing operations, before special items,
provides additional information to investors to facilitate the
comparison of past and present operations, excluding items that the
Company does not believe are indicative of our ongoing operations
due to their size and/or nature.
Reconciliation of
loss from continuing operations to income (loss) from continuing
operations, before special items (1,2):
|
|
|
Q4
FY2017
|
Q4
FY2016
|
Item
|
Amount
($000s)
|
Per Share
($)
|
Amount
($000s)
|
Per Share
($)
|
Loss from continuing
operations
|
|
$
|
(4,069)
|
|
|
$
|
(0.14)
|
|
|
$
|
(7,789)
|
|
|
$
|
(0.27)
|
|
Provision for asset
impairments and restaurant closings
|
|
2,275
|
|
|
0.08
|
|
|
814
|
|
|
0.03
|
|
Net loss (gain) on
disposition of property and equipment
|
|
(1,335)
|
|
|
(0.05)
|
|
|
73
|
|
|
0.00
|
|
Losses from closed
stores(3)
|
|
275
|
|
|
0.01
|
|
|
289
|
|
|
0.01
|
|
Deferred tax asset
valuation allowance
|
|
1,172
|
|
|
0.04
|
|
|
6,905
|
|
|
$
|
0.24
|
|
Income (loss) from
continuing operations, before special items
|
|
$
|
(1,682)
|
|
|
$
|
(0.06)
|
|
|
$
|
292
|
|
|
$
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
FY2017
|
FY2016
|
|
Amount
($000s)
|
Per Share
($)
|
Amount
($000s)
|
Per Share
($)
|
Loss from continuing
operations
|
|
$
|
(22,796)
|
|
|
$
|
(0.77)
|
|
|
$
|
(10,256)
|
|
|
$
|
(0.35)
|
|
Provision for asset
impairments and restaurant closings
|
|
6,974
|
|
|
0.24
|
|
|
952
|
|
|
0.03
|
|
Net gain on
disposition of property and equipment
|
|
(1,191)
|
|
|
(0.04)
|
|
|
(451)
|
|
|
(0.02)
|
|
Losses from closed
stores(3)
|
|
1,371
|
|
|
0.05
|
|
|
1,216
|
|
|
0.05
|
|
Deferred tax asset
valuation allowance
|
|
9,519
|
|
|
0.32
|
|
|
6,905
|
|
|
$
|
0.24
|
|
Loss from continuing
operations, before special items
|
|
$
|
(6,123)
|
|
|
$
|
(0.21)
|
|
|
$
|
(1,634)
|
|
|
$
|
(0.06)
|
|
|
|
(1)
|
We use income (loss)
from continuing operations, before special items, in analyzing
results, which is a non-GAAP financial measure. This information
should be considered in addition to the results presented in
accordance with GAAP, and should not be considered a substitute for
the GAAP results. Luby's has reconciled loss from continuing
operations, before special items, to loss from continuing
operations, the nearest GAAP measure in context.
|
(2)
|
Per share amounts are
per diluted share after tax.
|
(3)
|
Losses from closed
stores includes the store level profit (loss) less
depreciation for stores that closed in fiscal 2017 (nine
restaurants) and subsequent to fiscal 2017 year-end through
November 7, 2017 (three restaurants).
|
Adjusted EBITDA
Adjusted EBITDA is defined as income (loss) from continuing
operations before interest, provision (benefit) for income taxes,
and depreciation and amortization and excluding net gain (loss) on
disposing of property and equipment, provision for asset
impairments and restaurant closings, non-cash compensation expense,
and other income (expense).
Adjusted EBITDA is intended as a supplemental measure of our
performance that is not required by, or presented in accordance
with GAAP. We believe Adjusted EBITDA provides useful
information to management and investors in valuing the Company and
evaluating ongoing operating results and trends and in comparing
our results to other competitors. Our management uses Adjusted
EBITDA in evaluating management's performance when determining
incentive compensation.
Adjusted EBITDA, as defined, may not be comparable to other
similarly titled measures as computed by other companies. These
measures should be considered supplemental and not a substitute or
superior to other GAAP performance measures.
($
thousands)
|
Quarter
Ended
|
|
Year
Ended
|
|
August 30,
2017
|
|
August 31,
2016
|
|
August 30,
2017
|
|
August 31,
2016
|
|
(12
weeks)
|
|
(13
weeks)
|
|
(52
weeks)
|
|
(53
weeks)
|
Loss from
continuing operations
|
$
|
(4,069)
|
|
|
$
|
(7,789)
|
|
|
$
|
(22,796)
|
|
|
$
|
(10,256)
|
|
Depreciation and
amortization
|
4,461
|
|
|
4,351
|
|
|
20,438
|
|
|
21,889
|
|
Provision (benefit)
for income taxes
|
(138)
|
|
|
6,314
|
|
|
2,438
|
|
|
4,875
|
|
Interest
expense
|
544
|
|
|
574
|
|
|
2,443
|
|
|
2,247
|
|
Interest
income
|
(2)
|
|
|
(2)
|
|
|
(8)
|
|
|
(4)
|
|
Net loss (gain) on
disposition of property and equipment
|
(2,023)
|
|
|
110
|
|
|
(1,804)
|
|
|
(684)
|
|
Provision for asset
impairments and restaurant closings
|
3,447
|
|
|
1,233
|
|
|
10,567
|
|
|
1,442
|
|
Non-cash compensation
expense
|
730
|
|
|
775
|
|
|
1,604
|
|
|
2,369
|
|
Franchise
taxes
|
42
|
|
|
42
|
|
|
187
|
|
|
180
|
|
Decrease in fair
value of derivative
|
45
|
|
|
—
|
|
|
266
|
|
|
—
|
|
Adjusted
EBITDA
|
$
|
3,037
|
|
|
$
|
5,608
|
|
|
$
|
13,335
|
|
|
$
|
22,058
|
|
For additional information contact:
Dennard-Lascar Associates
Rick Black / Ken Dennard
Investor Relations
713-529-6600
View original
content:http://www.prnewswire.com/news-releases/lubys-reports-fiscal-year-2017-and-fourth-quarter-results-300552347.html
SOURCE Luby's, Inc.