Same Store Sales Rise In Both Restaurant
Concepts
J. Alexander’s Holdings, Inc. (NYSE: JAX) (the Company), owner
and operator of a collection of restaurants which includes J.
Alexander’s, Redlands Grill, Stoney River Steakhouse and Grill and
selected other restaurants, today reported financial results for
the second quarter ended July 1, 2018.
Second Quarter 2018 Highlights Compared to the Second Quarter
of 2017
- Net sales were $60,420,000, an increase
of 3.8% from $58,216,000 achieved in the second quarter of
2017.
- For the J. Alexander’s/Grill
restaurants, average weekly same store sales per restaurant (1)
were $116,200, an increase of 1.9% from $114,000 reported in the
second quarter of 2017. For the Stoney River Steakhouse and Grill
restaurants, average weekly same store sales were $78,900, up 6.2%
from $74,300 recorded in the second quarter of 2017.
- Pre-opening expense totaled $504,000
for the quarter ended July 1, 2018 compared to $10,000 during the
second quarter of 2017, with the increase attributable to the
timing of new restaurant openings.
- Income from continuing operations
before income taxes was $2,203,000 for the second quarter of 2018
compared to income from continuing operations before income taxes
of $42,000 for the corresponding quarter of 2017. The sharp
increase in results for the most recent quarter was primarily due
to a favorable swing in the quarterly valuation of the Black Knight
Advisory Services, LLC (Black Knight) profits interest grant. For
the second quarter of 2018, the Company realized income of $53,000
compared to a profits interest expense of $1,714,000 in the same
quarter a year ago. The Black Knight profits interest grant was
issued in October 2015 and requires a quarterly valuation. The
non-cash expense (income) associated with this grant is being
recognized over a three‐year vesting period which runs through
October 6, 2018. It is calculated each quarter based upon the most
recent valuation performed using the Black‐Scholes valuation model,
with any cumulative change associated with the most recent
valuation impacting the most recent quarter. Primarily due to the
$11.15 per share closing price of the Company’s stock at the end of
the most recent quarter, the grant’s valuation decreased from
$6,684,000 at April 1, 2018 to $6,018,000 at July 1, 2018. The
Company also incurred consulting fees of $205,000 under its
management agreement with Black Knight for the most recent quarter
compared to $174,000 in the second quarter of 2017.
- Net income for the second quarter of
2018 was $2,105,000, up from net income of $186,000 recorded for
the comparable quarter of 2017.
- Basic and diluted earnings per share
were $0.14 for the second quarter of 2018 compared to $0.01 for the
second quarter of 2017.
- Adjusted EBITDA(2) rose 9.9% from
$5,465,000 in the second quarter of 2017 to $6,007,000 in the
second quarter of 2018.
- Restaurant Operating Profit Margin (3)
as a percent of net sales was 12.5% in the most recent quarter
compared to 12.1% for the second quarter of 2017.
- Cost of sales as a percentage of net
sales in the second quarter of 2018 was 32.2% compared to 33.0% in
the corresponding quarter of 2017.
(1)Average weekly same store sales per restaurant is computed by
dividing total restaurant same store sales for the period by the
total number of days all same store restaurants were open for the
period to obtain a daily sales average. The daily same store sales
average is then multiplied by seven to arrive at average weekly
same store sales per restaurant. Days on which restaurants are
closed for business for any reason other than scheduled closures on
Thanksgiving and Christmas are excluded from this calculation.
Sales and sales days used in this calculation and amounts of other
“same store” figures in this release include only those for
restaurants in operation at the end of the period which have been
open for more than 18 months. Revenue associated with reduction in
liabilities for gift cards, which is recognized in proportion to
guest redemptions based on historical redemption rates and commonly
referred to as gift card breakage, is not included in the
calculation of average weekly same store sales per restaurant.
Average weekly same store sales is computed from sales amounts that
have been determined in accordance with U.S. generally accepted
accounting principles (GAAP).
(2)Please refer to the financial information accompanying this
release for our definition of and a reconciliation of the non‐GAAP
financial measure Adjusted EBITDA to net income. Management uses
Adjusted EBITDA to evaluate operating performance and the
effectiveness of its business strategies.
(3)“Restaurant Operating Profit Margin” is the ratio of
Restaurant Operating Profit, a non‐GAAP financial measure, to net
sales. Please refer to the financial information accompanying this
release for our definition of and a reconciliation of the non‐GAAP
financial measure Restaurant Operating Profit to Operating Income.
Management uses Restaurant Operating Profit to measure operating
performance at the restaurant level.
For the second quarter of 2018, the Company’s restaurant labor
and related costs as a percentage of net sales were 31.1% compared
to 30.8% of net sales in the second quarter of 2017. Other
restaurant operating expenses were 19.8% of net sales in both the
second quarter of 2018 and second quarter of 2017.
The Company’s operating income for the second quarter of 2018
was $2,334,000 compared to operating income of $215,000 for the
second quarter of 2017.
The average weekly guest counts within the same store base of
the Company’s J. Alexander’s/Grills collection were down 0.6% in
the second quarter of 2018 compared to the second quarter of the
prior year. Guest counts within the same store base at the
Company’s Stoney River Steakhouse and Grill restaurants were up
6.2% for the second quarter of 2018 over the second quarter of
2017. With respect to average guest checks, which include alcoholic
beverage sales, the average guest check within the J.
Alexander’s/Grills same store base of restaurants during the second
quarter of 2018 was $31.60, up 2.6% from $30.80 during the second
quarter of 2017. The average guest check within the same store base
of Stoney River Steakhouse and Grill restaurants reached $42.27
during the second quarter of 2018, up 0.1% from $42.23 recorded in
the corresponding quarter of 2017.
On a consolidated basis, average weekly guest counts within the
Company’s J. Alexander’s/Grills locations in the second quarter of
2018 were down 2.0% from the second quarter of 2017, while average
weekly guest counts within the Company’s Stoney River Steakhouse
and Grill locations increased 7.8% for the second quarter of 2018
compared to the second quarter of 2017. Average guest checks for
the combined J. Alexander’s/Grills concepts rose 2.7% from $30.85
in the second quarter of 2017 to $31.69 for the second quarter of
2018. Average guest checks for the Stoney River Steakhouse and
Grill restaurants decreased 0.6% from $42.17 in the second quarter
of 2017 to $41.90 in the second quarter of 2018.
The effect of menu pricing for the second quarter of 2018 was
estimated to be a 1.8% increase for the J. Alexander’s/Grills
restaurants and a 1.9% increase for the Stoney River Steakhouse and
Grill restaurants compared to the corresponding quarter of 2017.
Deflation in food costs for the second quarter of 2018 was
estimated to total 0.9% for the J. Alexander’s/Grills restaurants,
with beef costs decreasing by an estimated 4.6% compared to the
second quarter of 2017. For the Stoney River Steakhouse and Grill
restaurants, deflation for the second quarter of 2018 was estimated
to total 3.0%, with beef costs down by approximately 7.2% from the
comparable quarter of 2017.
Chief Executive Officer’s Comments
“The second quarter of 2018 again reflected increases in average
weekly same store sales for both of our restaurant groups,” Lonnie
J. Stout II, President and Chief Executive Officer, said. “It was a
solid quarter that included improvement not only at the top line,
but also in several key operating areas. We were pleased with our
overall performance.”
During the second quarter, Stout said the Company continued to
execute strategies allowing it to build guest loyalty in both of
its restaurant collections.
“We were encouraged that guest counts at our J.
Alexander’s/Grill restaurants showed improvement over the first
quarter’s performance. We realize, however, that further
improvement is needed in the final half of 2018 and we remain
tightly focused on making certain each guest visit is an
outstanding experience.” Stout noted that the modest decrease in
guest counts within the Company’s J. Alexander’s/Grills group
during the second quarter of 2018 was significantly influenced by
three specific locations. “From time to time, we will encounter
situations that impact our traditional guest traffic patterns and
require us to work that much harder to recapture or replace the
business. Examples include the relocation of a major corporate
presence within a specific market or, for limited periods of time,
competitive intrusion of a new restaurant opened within a specific
market. As we analyze our same store guest traffic, excluding three
specific restaurants that have been subject to events similar to
these examples, our performance for the second quarter of 2018
would have reflected a slight increase instead of the 0.6% decrease
previously noted.”
Stout said the recent addition of lunch and brunch at several
Stoney River locations in the last quarter has positively impacted
guest traffic and sales of the restaurant group, but that the
primary factor influencing the increase in average weekly same
store sales per restaurant was organic growth in guest counts.
“This collection has continued to show stronger than anticipated
momentum, including our newer restaurants.”
The Company’s cost of sales decreased in the most recent quarter
due principally to falling beef prices. Restaurant operating
margins also showed improvement, rising 0.4% for the quarter ended
July 1, 2018 over the same quarter a year earlier.
“We remain cautiously optimistic that the beef market will
continue to perform within acceptable parameters,” Stout continued.
“On balance, we continue to be encouraged by the performance of our
newer restaurants in both operating groups, and look forward to
announcing plans for additional locations as soon as leases are
executed,” he added.
Highlights for the First Six Months of 2018
For the six months ended July 1, 2018, the Company posted net
sales of $122,329,000, up 3.6% from $118,038,000 recorded in the
first half of 2017. Within the J. Alexander’s/Grill restaurants,
average weekly same store sales per restaurant were $118,100 for
the six months ended July 1, 2018, an increase of 1.0% from
$116,900 achieved in the same two quarters of 2017. For the Stoney
River Steakhouse and Grill restaurants, average weekly same store
sales per restaurant advanced 6.1% from $76,600 in the first six
months of 2017 to $81,300 in the first half of 2018.
Income from continuing operations before income taxes for the
six months ended July 1, 2018 was $4,045,000, up 9.8% from
$3,683,000 reported for the same two quarters a year ago.
During the first half of 2018, the Black Knight profits interest
grant resulted in non-cash profits interest expense of $1,854,000,
an increase of 10.6% from profits interest expense of $1,676,000
reported in the same six months of 2017. For the first six months
of 2018, the Company had consulting fees of $449,000 from its
management agreement with Black Knight compared to $439,000 of
expense in the first half of 2017.
The Company posted net income of $3,698,000 in the first six
months of 2018, up 28.9% from $2,870,000 for the same two quarters
of 2017. Adjusted EBITDA for the first two quarters of 2018 totaled
$14,158,000, up 8.4% from $13,066,000 recorded in the first six
months of 2017. Basic earnings per share and diluted earnings per
share totaled $0.25 in the first half of 2018. In the comparable
two quarters of 2017, basic earnings per share totaled $0.20 while
diluted earnings per share totaled $0.19. See attached “Adjusted
EBITDA Reconciliation” for our definition of Adjusted EBITDA and a
reconciliation to net income.
Guest counts within the same store base of restaurants decreased
by 1.4% within the J. Alexander’s/Grill restaurants for the first
half of 2018, and increased 7.2% within the Stoney River Steakhouse
and Grill restaurants during the same two quarters. The average
guest check within the same store base at the combined J.
Alexander’s/Grill restaurants increased 2.5% from $30.95 for the
first six months of 2017 to $31.73 for the first half of 2018,
while the Stoney River average guest check decreased by 0.8% from
$42.94 in the first two quarters of 2017 to $42.58 for the first
half of 2018. The effect of menu price changes for the first half
of 2018 was estimated to be a 1.8% increase at the J.
Alexander’s/Grill locations and a 1.7% increase at the Stoney River
Steakhouse and Grill restaurants compared to the first six months
of 2017.
Cost of sales as a percentage of net sales for the first two
quarters of 2018 was 31.6% compared to 31.9% for the first six
months of 2017. The estimated effect of inflation in food costs for
the first half of 2018 was 1.0% for the J. Alexander’s/Grill
restaurants, with beef costs declining by approximately 1.1%
compared to the same six months a year earlier. For the Stoney
River Steakhouse and Grill restaurants, deflation was an estimated
0.3%, including an estimated decrease of 2.7% in beef costs
compared to the first half of 2017.
Restaurant Development
During the second quarter of 2018, the Company opened a new J.
Alexander’s restaurant in King of Prussia, PA, marking the
Company’s entry into Pennsylvania. The Company continued
construction on a new Stoney River Steakhouse and Grill in Troy,
MI. This new restaurant is expected to open in the fourth quarter
of 2018. The Company anticipates opening three to four new
restaurants in 2019, and will announce details once leases related
to such sites have been executed.
Guidance For 2018 Unchanged
Our performance outlook is based on current information as of
August 8, 2018. The Company does not expect to update its 2018
guidance before next quarter’s earnings release. However, the
information on which the outlook is based is subject to change, and
the Company may update its full business outlook or any portion
thereof at any time for any reason. Based upon current information,
the guidance for the 2018 fiscal year is the same as reported on
May 3, 2018.
Conference Call
The Company will hold a conference call on Thursday, August 9,
2018, at 10 a.m., Central time to discuss its financial results for
the second quarter ended July 1, 2018. The conference call can be
accessed live over the phone by dialing 1‐877‐407‐0789 (Toll‐Free)
or 1‐201‐689‐8562 (Toll/International). To access the call via the
internet, go to J. Alexander’s website at http://investor.jalexandersholdings.com or http://public.viavid.com/index.php?id=130771.
A replay of the conference call will be available shortly following
the conclusion of the call at http://investor.jalexandersholdings.com and http://public.viavid.com/index.php?id=130771, as
well as by dialing 1‐844‐512‐2921 or 1‐412‐317‐6671 and providing
the access code 13682084. The replay will be accessible through
August 16, 2018 via telephone and for 30 days on the internet.
About J. Alexander’s Holdings, Inc.
J. Alexander’s Holdings, Inc. is a collection of restaurants
that focus on providing high quality food, outstanding professional
service and an attractive ambiance. The Company presently operates
45 restaurants in 16 states. The Company has its headquarters in
Nashville, TN.
For additional information, visit
www.jalexandersholdings.com.
Forward‐Looking Statements
This press release issued by J. Alexander’s Holdings, Inc.
contains forward‐looking statements, which include all statements
that do not relate solely to historical or current facts, such as
statements regarding our expectations, intentions or strategies
regarding the future. These forward‐looking statements are based on
management's beliefs, as well as assumptions made by, and
information currently available to, management. Because such
statements are based on expectations as to future financial and
operating results and are not statements of fact, actual results
may differ materially from those projected and are subject to a
number of known and unknown risks and uncertainties, including the
Company’s ability to maintain satisfactory guest count levels and
maintain or increase sales and operating margins in its restaurants
under varying economic conditions; the effect of higher commodity
prices, unemployment and other economic factors on consumer demand;
increases in food input costs or product shortages and the
Company’s response to them; the number and timing of new restaurant
openings and the Company’s ability to operate them profitably;
competition within the casual dining industry and within the
markets in which our restaurants are located; adverse weather
conditions in regions in which the Company’s restaurants are
located; factors that are under the control of third parties,
including government agencies; as well as other risks and
uncertainties described under the headings "Forward‐Looking
Statements," "Risk Factors" and other sections of the Company’s
Annual Report on Form 10‐K filed with the Securities and Exchange
Commission on March 15, 2018 and subsequent filings. The Company
undertakes no obligation to update any forward‐looking statements,
whether as a result of new information, future events or
otherwise.
J. Alexander's
Holdings, Inc. and Subsidiaries Condensed Consolidated
Statements of Income (Unaudited in thousands, except per
share amounts) Quarter Ended Six Months Ended
July 1 July 2 July 1 July 2
2018 2017 2018
2017 Net sales
$
60,420 $ 58,216
$ 122,329 $ 118,038 Costs and
expenses: Cost of sales
19,433 19,197
38,694 37,628
Restaurant labor and related costs
18,781 17,959
37,007 35,904
Depreciation and amortization of
restaurant property and equipment
2,696 2,500
5,265 4,878 Other operating expenses
11,943 11,539
23,961 23,109 Total restaurant
operating expenses
52,853 51,195
104,927 101,519
Transaction and integration expenses
7 460
933 460
General and administrative expenses
4,722 6,336
11,247 11,164 Pre-opening expense
504
10
830 886 Total
operating expenses
58,086 58,001
117,937 114,029 Operating income
2,334 215
4,392 4,009 Other income (expense):
Interest expense
(186 ) (224 )
(360 )
(398 ) Other, net
55 51
13 72 Total other expense
(131 ) (173 )
(347 )
(326 )
Income from continuing operations before
income taxes
2,203 42
4,045 3,683 Income tax benefit (expense)
12 254
(126 ) (590 ) Loss from discontinued
operations, net
(110 ) (110 )
(221 ) (223 ) Net income
$ 2,105
$ 186
$ 3,698 $ 2,870
Basic Earnings per share: Income from continuing operations,
net of tax
$ 0.15 $ 0.02
$ 0.27 $ 0.21
Loss from discontinued operations, net
(0.01 )
(0.01 )
(0.02 ) (0.02 ) Basic
earnings per share
$ 0.14 $ 0.01
$ 0.25 $ 0.20 Diluted Earnings
per share: Income from continuing operations, net of tax
$
0.15 $ 0.02
$ 0.26 $ 0.21 Loss from
discontinued operations, net
(0.01 )
(0.01 )
(0.01 ) (0.02 ) Diluted
earnings per share
$ 0.14 $ 0.01
$ 0.25 $ 0.19 Weighted average
common shares outstanding: Basic
14,695 14,695
14,695
14,695 Diluted
14,901 14,905
14,869 14,800
J. Alexander's Holdings, Inc. and Subsidiaries
Condensed Consolidated Statements of Income Data as a Percentage
of Net Sales and Other Financial and Performance Data
(Unaudited) Quarter Ended Six Months Ended
July 1 July 2 July 1 July 2
2018 2017 2018
2017 Net sales
100.0 %
100.0 %
100.0 % 100.0 % Costs and expenses: Cost of
sales
32.2 33.0
31.6 31.9 Restaurant labor and
related costs
31.1 30.8
30.3 30.4
Depreciation and amortization of
restaurant property and equipment
4.5 4.3
4.3 4.1 Other operating expenses
19.8 19.8
19.6
19.6 Total restaurant operating expenses
87.5
87.9
85.8 86.0 Transaction and integration expenses
0.0 0.8
0.8 0.4 General and administrative expenses
7.8 10.9
9.2 9.5 Pre-opening expense
0.8 0.0
0.7
0.8 Total operating expenses
96.1
99.6
96.4 96.6
Operating income
3.9 0.4
3.6 3.4 Other income
(expense): Interest expense
(0.3 ) (0.4 )
(0.3
) (0.3 ) Other, net
0.1 0.1
0.0 0.1 Total other
expense
(0.2 ) (0.3 )
(0.3 ) (0.3 )
Income from continuing operations before
income taxes
3.6 0.1
3.3 3.1 Income tax benefit (expense)
0.0 0.4
(0.1 ) (0.5 ) Loss from discontinued
operations, net
(0.2 ) (0.2 )
(0.2 ) (0.2 ) Net income
3.5
% 0.3 %
3.0
% 2.4 % Note: Certain percentage totals
do not sum due to rounding.
Other Financial and
Performance Data: Adjusted EBITDA(1)
$
6,007 $ 5,465
$ 14,158 $ 13,066 As a % of net
sales
9.9 % 9.4 %
11.6 % 11.1 %
Average weekly sales per restaurant: J. Alexander’s
Restaurant/ Grills
$ 113,200 $ 112,600
$
115,700 $ 115,400 Percent change
0.5 %
0.3 % Stoney River Steakhouse and Grill
$ 78,400 $ 73,100
$ 80,500 $ 75,400
Percent change
7.3 % 6.8 %
Average weekly same store sales per restaurant: J.
Alexander’s Restaurant/ Grills
$ 116,200 $ 114,000
$ 118,100 $ 116,900 Percent change
1.9
% 1.0 % Stoney River Steakhouse and
Grill
$ 78,900 $ 74,300
$ 81,300 $
76,600 Percent change
6.2 % 6.1 %
(1) See definitions and reconciliation
attached.
J. Alexander's Holdings, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited in
thousands) July 1 December 31 2018
2017 Assets Current assets: Cash and cash
equivalents
$ 7,259 $ 10,711 Other current assets
7,563 8,019 Total current assets
14,822
18,730 Other assets
5,776 6,183 Property and
equipment, net
107,033 103,615 Goodwill
15,737 15,737
Tradename and other indefinite-lived intangibles
25,631
25,202 Deferred Charges, net
167 184
$
169,166 $ 169,651
Liabilities and Stockholders'
Equity Current liabilities
$ 26,304 $
30,027
Long term debt, net of portion classified
as current and unamortized deferred loan costs
8,322 10,781 Deferred compensation obligations
6,592
6,451 Deferred income taxes
1,193 2,075 Other long-term
liabilities
6,779 6,456 Stockholders' equity
119,976 113,861
$ 169,166 $ 169,651
J. Alexander's Holdings, Inc. and
Subsidiaries Condensed Consolidated Statements of Cash
Flows (Unaudited in thousands) Six Months Ended
July 1 July 2 2018
2017 Cash flows from operating activities: Net
income
$ 3,698 $ 2,870 Adjustments to reconcile net
income to net cash provided by operating activities: Depreciation
and amortization of property and equipment
5,411 5,021
Equity-based compensation expense
2,383 2,308 Other, net
(282 ) 52 Changes in assets and liabilities, net
(2,631 ) (2,147 ) Net cash provided by
operating activities
8,579 8,104 Cash flows from
investing activities: Purchase of property and equipment
(9,019 ) (6,597 ) Other investing activities
(512 ) (273 ) Net cash used in investing
activities
(9,531 ) (6,870 ) Cash flows from
financing activities: Payments on long-term debt and obligations
under capital leases
(2,500 ) (1,111 ) Other
financing activities
- (2 ) Net cash
used in financing activities
(2,500 )
(1,113 ) Increase (decrease) in cash and cash equivalents
(3,452 ) 121 Cash and cash equivalents at beginning
of period
10,711 6,632 Cash and
cash equivalents at end of period
$ 7,259 $
6,753 Supplemental disclosures: Property and
equipment obligations accrued at beginning of period
$
1,854 $ 2,587 Property and equipment obligations accrued at
end of period
1,760 969 Cash paid for interest
402
395 Cash paid for income taxes
234 1,838
J. Alexander's Holdings, Inc. and Subsidiaries
Non-GAAP Financial Measures and Reconciliations
(Unaudited in thousands) Non-GAAP Financial
Measures
Within this press release, we present the
following non-GAAP financial measures which we believe are useful
to investors as key measures of our operating performance:
We define Adjusted Earnings Before
Interest, Taxes, Depreciation and Amortization, or “Adjusted
EBITDA”, as net income (loss) before interest expense, income tax
expense (benefit), depreciation and amortization, and adding asset
impairment charges and restaurant closing costs, loss on disposals
of fixed assets, transaction and integration costs, non-cash
compensation, loss from discontinued operations, gain on debt
extinguishment and pre-opening costs.
Adjusted EBITDA is a non-GAAP financial
measure that we believe is useful to investors because it provides
information regarding certain financial and business trends
relating to our operating results and excludes certain items that
are not indicative of our operations. Adjusted EBITDA does not
fully consider the impact of investing or financing transactions as
it specifically excludes depreciation and interest charges, which
should also be considered in the overall evaluation of our results
of operations.
We define “Restaurant Operating Profit” as net sales less
restaurant operating costs, which are cost of sales, restaurant
labor and related costs, depreciation and amortization of
restaurant property and equipment, and other operating expenses.
Restaurant Operating Profit is a non-GAAP financial measure that we
believe is useful to investors because it provides a measure of
profitability for evaluation that does not reflect corporate
overhead and other non-operating or unusual costs. “Restaurant
Operating Profit Margin” is the ratio of Restaurant Operating
Profit to net sales. Our management uses Adjusted EBITDA and
Restaurant Operating Profit to evaluate the effectiveness of our
business strategies. We caution investors that amounts presented in
accordance with the above definitions of Adjusted EBITDA or
Restaurant Operating Profit may not be comparable to similar
measures disclosed by other companies, because not all companies
calculate these non-GAAP financial measures in the same manner.
Adjusted EBITDA and Restaurant Operating Profit should not be
assessed in isolation from, or construed as a substitute for, net
income or other measures presented in accordance with GAAP.
A reconciliation of these non-GAAP financial measures to the
closest GAAP measure is set forth in the following tables:
Quarter Ended Six Months Ended July 1 July
2 July 1 July 2 2018 2017
2018 2017 Net income
$
2,105 $ 186
$ 3,698 $ 2,870 Income tax
(benefit) expense
(12 ) (254 )
126 590
Interest expense
186 224
360 398 Depreciation and
amortization
2,780 2,586
5,433 5,048 EBITDA
5,059 2,742
9,617 8,906 Transaction and integration expenses
7 460
933 460 Loss on disposal of fixed assets
38 54
96 88
Asset impairment charges and restaurant
closing costs
12 27
10 133 Non-cash compensation
277 2,062
2,451 2,370 Loss from discontinued operations, net
110 110
221 223 Pre-opening expense
504
10
830 886
Adjusted EBITDA
$ 6,007 $ 5,465
$ 14,158 $ 13,066 Note: For purposes of
computing Adjusted EBITDA, the $(53) and $1,714 for the quarters
ended July 1, 2018 and July 2, 2017, respectively, and $1,854 and
$1,676 for the six months ended July 1, 2018 and July 2, 2017,
respectively, in non-cash compensation associated with a profits
interest grant issued to Black Knight Advisory Services, LLC
("BKAS") on October 6, 2015 has been included in "Non-cash
compensation" above. Additional expenses associated with the
Company's management agreement with BKAS totaling $205 and $174 for
the quarters ended July 1, 2018 and July 2, 2017, respectively, and
totaling $449 and $439 for the six months ended July 1, 2018 and
July 2, 2017, respectively, are included in general and
administrative expenses and have not been included in the
reconciliation set forth above.
J. Alexander's
Holdings, Inc. and Subsidiaries Non-GAAP Financial Measures
and Reconciliations (Unaudited in thousands)
Quarter Ended Six Months Ended
July 1 July 2 July 1 July 2
2018 2017 2018 2017
Amount
Percent of Net
Sales
Amount
Percent of Net
Sales
Amount
Percent of Net
Sales
Amount
Percent of Net
Sales
Operating income
$ 2,334 3.9
% $ 215 0.4 %
$ 4,392 3.6 % $
4,009 3.4 % General and administrative expenses
4,722
7.8 % 6,336 10.9 %
11,247 9.2 %
11,164 9.5 % Transaction and integration expenses
7
0.0 % 460 0.8 %
933 0.8 % 460
0.4 % Pre-opening expense
504
0.8 % 10 0.0 %
830
0.7 % 886 0.8 %
Restaurant Operating Profit
$ 7,567
12.5 % $ 7,021 12.1 %
$
17,402 14.2 % $ 16,519
14.0 %
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J. Alexander’s Holdings, Inc.Mark A. Parkey, 615-269-1900Chief
Financial Officer
J Alexanders (NYSE:JAX)
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J Alexanders (NYSE:JAX)
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