UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant
to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 6, 2015 (November 5, 2015)
J. ALEXANDER’S HOLDINGS, INC.
(Exact Name of Registrant as Specified in Charter)
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| Tennessee |
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001-37473 |
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47-1608715 |
| (State or Other Jurisdiction
of Incorporation) |
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(Commission
File Number) |
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(IRS Employer
Identification No.) |
3401 West End Avenue, Suite 260, P.O. Box 24300, Nashville, Tennessee 37203
(Address of Principal Executive Offices) (Zip Code)
Registrant’s telephone number, including area code: (615) 269-1900
Not Applicable
(Former
Name or Former Address, if Changed Since Last Report)
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
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¨ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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¨ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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¨ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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¨ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| Item 2.02 |
Results of Operations and Financial Condition. |
On November 5, 2015, the Company issued a press
release announcing earnings results for J. Alexander’s Holdings, LLC and subsidiaries for its fiscal third quarter ended September 27, 2015. A copy of the press release is being furnished as Exhibit 99.1.
The information in this Item 2.02 in this Current Report on Form 8-K, including Exhibit 99.1 hereto, shall not be deemed “filed” for purposes
of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and shall not be deemed to be incorporated by reference in any filing under the Securities
Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.
| Item 9.01 |
Financial Statements and Exhibits. |
Exhibit 99.1 Press Release issued by J. Alexander’s Holdings,
Inc., dated November 5, 2015.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by
the undersigned, hereunto duly authorized.
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J. Alexander’s Holdings, Inc. |
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| Date: November 6, 2015 |
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By: |
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/s/ Mark A. Parkey |
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Mark A. Parkey |
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Chief Financial Officer & Executive Vice President |
2
EXHIBIT INDEX
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| Exhibit No. |
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Description |
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| 99.1 |
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Press Release issued by J. Alexander’s Holdings, Inc., dated November 5, 2015 |
3
Exhibit 99.1
J. Alexander’s Holdings, Inc. Reports Results For Third Quarter
And First Nine Months Of 2015 Under FNFV Ownership
J. Alexander’s/Redlands Grill Posts 23rd Consecutive Quarter
Of Same Store Sales Increases
Stoney River Records 5th Consecutive Quarter
Of Same Store Sales Improvement
Board Authorizes Share Repurchase Program
NASHVILLE, TN, Nov. 5, 2015 – J. Alexander’s Holdings, Inc. (NYSE: JAX) (the Company), the sole managing member of J. Alexander’s Holdings,
LLC, today reported financial results for J. Alexander’s Holdings, LLC (JAH) for the third quarter and first nine months of fiscal 2015 ended September 27, 2015. As previously announced, on September 28, 2015, the Company completed
its spin-off from Fidelity National Financial Ventures, LLC (NYSE: FNFV). As a result of the spin-off and related reorganization transactions, the Company became an independent public company and the sole managing member of JAH.
Third Quarter 2015 Highlights Compared To The Third Quarter Of 2014
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• |
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Adjusted EBITDA (1) rose 36.5% to $4,426,000 for the third quarter of 2015 from $3,243,000 during the corresponding period of 2014. |
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• |
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Net sales increased 5.6% to $49,335,000 from $46,725,000. |
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• |
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For the J. Alexander’s/Redlands Grill restaurants, average weekly same store sales per restaurant were up 3.0% to $103,500 and for the Stoney River Steakhouse and Grill restaurants, average weekly same store sales
increased by 5.0% to $60,800. |
| |
• |
|
The loss from continuing operations before income taxes totaled $2,437,000 compared to income from continuing operations before income taxes of $16,000 in the third quarter of 2014. Excluding non-recurring transaction
expenses associated with a planned initial public offering during 2014 and the ultimate spin-off from FNFV of $4,197,000 and $224,000 in the third quarter of 2015 and 2014, respectively, income from continuing operations before income taxes would
have totaled $1,760,000 for the third quarter of 2015 compared to $240,000 for the third quarter of 2014. |
| |
• |
|
The net loss of $2,477,000 compared to a net loss of $215,000 in the third quarter a year ago. |
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• |
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Restaurant operating margins (2) were 10.8% for the 2015 quarter as compared to 10.3% in the third quarter of 2014. |
| |
• |
|
Cost of sales as a percentage of net sales, improved to 31.6% during the third quarter of 2015 compared to 32.3% during the third quarter a year ago. |
| (1) |
Please refer to the financial information accompanying this release for reconciliation of Adjusted EBITDA, a financial measure that management uses to evaluate operating performance and the effectiveness of its
business strategies. |
| (2) |
Net sales minus total restaurant operating expenses divided by net sales. Please refer to the financial information accompanying this release for reconciliation of Restaurant Operating Profit, a financial measure
that management uses to measure operating performance at the restaurant level. |
The J. Alexander’s Holdings, Inc. Board of
Directors has authorized a share repurchase program for up to 1.5 million shares of the Company’s outstanding common stock over the next three years. Repurchases will be made in accordance with applicable securities laws and may be made
from time to time in the open market. The timing, prices, and sizes of repurchases will depend upon prevailing market prices, general economic and market conditions and other considerations. The repurchase program does not obligate the Company to
acquire any particular amount of stock.
Chief Executive Officer’s Review
“We were pleased with our overall performance in the third quarter,” said Lonnie J. Stout, II, President and Chief Executive Officer of J.
Alexander’s Holdings, Inc. “The quarter closing September 27, 2015 marked the 23rd consecutive period of positive same store sales for our J. Alexander’s/Redlands Grill
restaurants, and the 5th consecutive period of same store sales improvement for our Stoney River restaurants.”
Stout said another positive measure of the Company’s most recent results included a reduction in cost of sales. “The decrease in cost of sales was
particularly encouraging in light of fresh beef prices, which moderated somewhat during the third quarter but have exceeded prior year prices on a comparative basis during each of the 2015 quarters thus far. Restaurant labor and related costs as a
percent of sales were also down slightly to 32.1% as compared to 32.2% in the corresponding period a year earlier while other restaurant operating expenses increased to 21.3% of net sales as compared to 21.1% of net sales in the third quarter of
2014.”
Stout said that average weekly guest counts (same store base) for the Company’s Stoney River Steakhouse and Grill restaurants were up
4.3% for the third quarter of 2015. At the same time, he said guest counts at the Company’s J. Alexander’s/Redlands Grill concepts declined slightly in the past quarter. For the most recent quarter, average weekly guest counts (same store
base) of the combined J. Alexander’s/Redlands Grill restaurant base were down 1.2%.
Average guest checks, which include alcoholic beverage sales,
for the combined J. Alexander’s/Redlands Grill concepts and Stoney River Steakhouse and Grill concept in the third quarter of 2015 both increased, as J. Alexander’s/Redlands Grill climbed 4.1% to $30.63 while Stoney River rose 0.7% to
$45.89. The effect of menu price increases for the quarter just ended was estimated to be 2.8% for the J. Alexander’s/Redlands Grill restaurants and 1.9% for the Stoney River Steakhouse and Grill restaurants compared to the same period a year
earlier.
Year-To-Date Performance
For the first nine months of 2015, JAH recorded net sales of $158,610,000, up 6.5% from $148,921,000 reported in the first nine months of 2014. Income from
continuing operations before income taxes totaled $3,306,000 for the 2015 period compared to $6,815,000 for the first nine months of 2014. Excluding non-recurring transaction expenses of $6,311,000 and $326,000 in the first nine months of 2015 and
2014, respectively, income from continuing operations before income taxes would have totaled $9,617,000 for the first nine months of 2015 compared to $7,141,000 for the comparable period of 2014. JAH recorded net income of $3,034,000 for the first
three quarters of 2015 compared to $6,323,000 during the same period of 2014. Adjusted EBITDA for the first nine months of 2015 totaled $17,743,000, an increase of $1,988,000, or 12.6%, from $15,755,000 recorded during the first nine months of 2014.
Average weekly same store sales per restaurant for the first nine months of 2015 were up 4.5% to $110,800 for the J. Alexander’s/Redlands Grill
restaurants, and for the Stoney River Steakhouse and Grill restaurants, average weekly same store sales increased by 5.6% to $67,600.
Average weekly
guest counts within the same store base of restaurants increased by 0.4% within the J. Alexander’s/Redlands Grill restaurants and by 3.7% within the Stoney River Steakhouse and Grill restaurants during the first nine months of 2015 compared to
the corresponding period of 2014. The average guest check at J. Alexander’s/Redlands Grill locations increased by 4.1% to $30.67 during the year-to-date 2015 period and the Stoney River average guest check increased by 1.9% to $45.54.
Management estimates that the effect of menu price increases for the year-to-date period totaled 3.3% at J. Alexander’s/Redlands Grill locations and 3.1% at the Stoney River restaurants during the first nine months of 2015.
Cost of sales for the first nine months of 2015 was 31.6%, down from 31.9% in the comparable nine month period of 2014. Restaurant labor and related costs for
the first three quarters of 2015 decreased to 30.5% of net sales from 30.7% of net sales in the same three quarters of 2014, and other restaurant operating expenses decreased to 20.2% of net sales during the 2015 period from 20.4% of net sales in
the comparable prior year period. Restaurant operating margins for the first nine months of 2015 totaled 13.7%, up from 13.2% in the first three quarters of 2014.
“We expect our same store sales for the fourth quarter will be up on a comparative basis,” Stout said. “Our previously released guidance for
2015 remains unchanged. It can be found on page 33 of the September 2015 Investor Presentation located in the investor section of our website under the “Events and Presentations” tab.”
Restaurant Development
During the third quarter of 2015, leases to develop two new J. Alexander’s restaurants were executed, with one in Raleigh, NC and one in Lexington, KY.
These two new restaurants are expected to open in the second and fourth quarters, respectively, of 2016. The Company also announced plans in the third quarter to develop a new Stoney River Steakhouse and Grill in Germantown, TN, near Memphis. The
new Stoney River restaurant is set to open in the first quarter of 2016. Finally during the third quarter, the Company continued its program to transition selected J. Alexander’s restaurants to Redlands Grill restaurants, with 12 such
transitions in progress at September 27, 2015. The Company expects the transition process will be completed during 2016.
J. Alexander’s
Holdings, Inc. presently operates 41 restaurants across 14 states.
Conference Call
J. Alexander’s Holdings, Inc. will hold a conference call on Friday, November 6, at 10 a.m. Central time to discuss its financial results for the
third quarter ended September 27, 2015. The conference call can be accessed live over the phone by dialing 1-877-407-4018 (Toll-Free) or 1-201-689-8471 (Toll/International). To access the call via the internet, go to J. Alexander’s website
at investor.jalexandersholdings.com or http://public.viavid.com/index.php?id=116818.
A replay of the conference call will be available
shortly following the conclusion of the call at investor.jalexandersholdings.com and http://public.viavid.com/index.php?id=116818, as well as by dialing 1-877-870-5176 or 1-858-384-5517 and providing the access code 13623097. The
replay will be accessible through December 6, 2015 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 three complementary restaurant concepts: J. Alexander’s, Redlands Grill and Stoney River Steakhouse and Grill.
J. Alexander’s Holdings, Inc. has its headquarters in Nashville, TN.
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, including 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; as well as other risks and uncertainties described under the headings “Forward-Looking Statements,” “Risk Factors” and other
sections of the Company’s Registration Statement on Form 10 filed with the Securities and Exchange Commission. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events
or otherwise.
Contact:
Mark Parkey
Chief Financial Officer
(615) 269-1900
J. Alexander’s Holdings, LLC and Subsidiaries
Consolidated Statements of Operations
(Unaudited in
thousands)
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| |
|
Quarter Ended |
|
|
Nine Months Ended |
|
| |
|
Sept. 27
2015 |
|
|
Sept. 28
2014 |
|
|
Sept. 27
2015 |
|
|
Sept. 28
2014 |
|
| Net sales |
|
$ |
49,335 |
|
|
$ |
46,725 |
|
|
$ |
158,610 |
|
|
$ |
148,921 |
|
|
|
|
|
|
| Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of sales |
|
|
15,581 |
|
|
|
15,101 |
|
|
|
50,177 |
|
|
|
47,440 |
|
| Restaurant labor and related costs |
|
|
15,819 |
|
|
|
15,032 |
|
|
|
48,455 |
|
|
|
45,743 |
|
| Depreciation and amortization of restaurant property and equipment |
|
|
2,088 |
|
|
|
1,926 |
|
|
|
6,128 |
|
|
|
5,703 |
|
| Other operating expenses |
|
|
10,516 |
|
|
|
9,839 |
|
|
|
32,066 |
|
|
|
30,330 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total restaurant operating expenses |
|
|
44,004 |
|
|
|
41,898 |
|
|
|
136,826 |
|
|
|
129,216 |
|
|
|
|
|
|
| Transaction and integration expenses |
|
|
4,197 |
|
|
|
224 |
|
|
|
6,311 |
|
|
|
326 |
|
| General and administrative expenses |
|
|
3,377 |
|
|
|
3,734 |
|
|
|
11,240 |
|
|
|
10,271 |
|
| Asset impairment charges and restaurant closing costs |
|
|
1 |
|
|
|
— |
|
|
|
2 |
|
|
|
4 |
|
| Pre-opening expenses |
|
|
21 |
|
|
|
141 |
|
|
|
23 |
|
|
|
162 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total operating expenses |
|
|
51,600 |
|
|
|
45,997 |
|
|
|
154,402 |
|
|
|
139,979 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating income (loss) |
|
|
(2,265 |
) |
|
|
728 |
|
|
|
4,208 |
|
|
|
8,942 |
|
| Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest expense |
|
|
(193 |
) |
|
|
(732 |
) |
|
|
(970 |
) |
|
|
(2,223 |
) |
| Other, net |
|
|
21 |
|
|
|
20 |
|
|
|
68 |
|
|
|
96 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total other expense |
|
|
(172 |
) |
|
|
(712 |
) |
|
|
(902 |
) |
|
|
(2,127 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income (loss) from continuing operations before income taxes |
|
|
(2,437 |
) |
|
|
16 |
|
|
|
3,306 |
|
|
|
6,815 |
|
| Income tax (expense) benefit |
|
|
66 |
|
|
|
(124 |
) |
|
|
45 |
|
|
|
(161 |
) |
| Loss from discontinued operations, net |
|
|
(106 |
) |
|
|
(107 |
) |
|
|
(317 |
) |
|
|
(331 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) |
|
$ |
(2,477 |
) |
|
$ |
(215 |
) |
|
$ |
3,034 |
|
|
$ |
6,323 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted EBITDA* |
|
$ |
4,426 |
|
|
$ |
3,243 |
|
|
$ |
17,743 |
|
|
$ |
15,755 |
|
|
|
|
|
|
|
|
|
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|
|
|
|
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| * |
- See reconciliation attached. |
J. Alexander’s Holdings, LLC and Subsidiaries
Consolidated Statements of Operations
Percentages of
Net Sales (Unaudited)
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|
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|
|
|
| |
|
Quarter Ended |
|
|
Nine Months Ended |
|
| |
|
Sept. 27
2015 |
|
|
Sept. 28
2014 |
|
|
Sept. 27
2015 |
|
|
Sept. 28
2014 |
|
| Net sales |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
|
|
|
| Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of sales |
|
|
31.6 |
|
|
|
32.3 |
|
|
|
31.6 |
|
|
|
31.9 |
|
| Restaurant labor and related costs |
|
|
32.1 |
|
|
|
32.2 |
|
|
|
30.5 |
|
|
|
30.7 |
|
| Depreciation and amortization of restaurant property and equipment |
|
|
4.2 |
|
|
|
4.1 |
|
|
|
3.9 |
|
|
|
3.8 |
|
| Other operating expenses |
|
|
21.3 |
|
|
|
21.1 |
|
|
|
20.2 |
|
|
|
20.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total restaurant operating expenses |
|
|
89.2 |
|
|
|
89.7 |
|
|
|
86.3 |
|
|
|
86.8 |
|
| Transaction and integration expenses |
|
|
8.5 |
|
|
|
0.5 |
|
|
|
4.0 |
|
|
|
0.2 |
|
| General and administrative expenses |
|
|
6.8 |
|
|
|
8.0 |
|
|
|
7.1 |
|
|
|
6.9 |
|
| Asset impairment charges and restaurant closing costs |
|
|
0.0 |
|
|
|
0.0 |
|
|
|
0.0 |
|
|
|
0.0 |
|
| Pre-opening expenses |
|
|
0.0 |
|
|
|
0.3 |
|
|
|
0.0 |
|
|
|
0.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total operating expenses |
|
|
104.6 |
|
|
|
98.4 |
|
|
|
97.3 |
|
|
|
94.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating income (loss) |
|
|
(4.6 |
) |
|
|
1.6 |
|
|
|
2.7 |
|
|
|
6.0 |
|
| Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest expense |
|
|
(0.4 |
) |
|
|
(1.6 |
) |
|
|
(0.6 |
) |
|
|
(1.5 |
) |
| Other, net |
|
|
0.0 |
|
|
|
0.0 |
|
|
|
0.0 |
|
|
|
0.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total other expense |
|
|
(0.3 |
) |
|
|
(1.5 |
) |
|
|
(0.6 |
) |
|
|
(1.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income (loss) from continuing operations before income taxes |
|
|
(4.9 |
) |
|
|
0.0 |
|
|
|
2.1 |
|
|
|
4.6 |
|
| Income tax (expense) benefit |
|
|
0.1 |
|
|
|
(0.3 |
) |
|
|
0.0 |
|
|
|
(0.1 |
) |
| Loss from discontinued operations, net |
|
|
(0.2 |
) |
|
|
(0.2 |
) |
|
|
(0.2 |
) |
|
|
(0.2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) |
|
|
(5.0 |
)% |
|
|
(0.5 |
)% |
|
|
1.9 |
% |
|
|
4.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted EBITDA |
|
|
9.0 |
% |
|
|
6.9 |
% |
|
|
11.2 |
% |
|
|
10.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Note:Certain percentage totals do not sum due to rounding. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average weekly sales per restaurant: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| J. Alexander’s Restaurant/Redlands Grill |
|
$ |
102,800 |
|
|
$ |
100,500 |
|
|
$ |
110,200 |
|
|
$ |
106,000 |
|
| Percent increase |
|
|
2.3 |
% |
|
|
|
|
|
|
4.0 |
% |
|
|
|
|
|
|
|
|
|
| Average weekly same store sales per restaurant: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| J. Alexander’s Restaurant/Redlands Grill |
|
$ |
103,500 |
|
|
$ |
100,500 |
|
|
$ |
110,800 |
|
|
$ |
106,000 |
|
| Percent increase |
|
|
3.0 |
% |
|
|
|
|
|
|
4.5 |
% |
|
|
|
|
|
|
|
|
|
| Stoney River Steakhouse and Grill (1) |
|
$ |
60,800 |
|
|
$ |
57,900 |
|
|
$ |
67,600 |
|
|
$ |
64,000 |
|
| Percent increase |
|
|
5.0 |
% |
|
|
|
|
|
|
5.6 |
% |
|
|
|
|
| (1) |
The Company includes restaurants in the same store sales base after they have been in operation for more than 18 months. Because no new restaurants have been opened during the 18 months preceding the comparable periods,
average weekly same store sales per restaurant are the same as average weekly sales per restaurant for the periods presented. |
J. Alexander’s Holdings, LLC and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited in
thousands)
|
|
|
|
|
|
|
|
|
| |
|
September 27
2015 |
|
|
December 28
2014 |
|
| ASSETS |
|
|
|
|
|
|
|
|
|
|
|
| Current assets |
|
|
|
|
|
|
|
|
| Cash and cash equivalents |
|
$ |
12,765 |
|
|
$ |
13,301 |
|
| Other current assets |
|
|
4,923 |
|
|
|
5,559 |
|
|
|
|
|
|
|
|
|
|
| Total current assets |
|
|
17,688 |
|
|
|
18,860 |
|
|
|
|
| Other assets |
|
|
4,094 |
|
|
|
4,405 |
|
| Property and equipment, net |
|
|
86,815 |
|
|
|
86,263 |
|
| Goodwill |
|
|
15,737 |
|
|
|
15,737 |
|
| Tradename and other indefinite-lived assets |
|
|
25,155 |
|
|
|
25,155 |
|
| Deferred charges, net |
|
|
581 |
|
|
|
488 |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
150,070 |
|
|
$ |
150,908 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| LIABILITIES AND MEMBERSHIP EQUITY |
|
|
|
|
|
|
|
|
|
|
|
| Current liabilities |
|
$ |
19,720 |
|
|
$ |
22,962 |
|
| Long-term debt and capital lease obligations, net of current portion |
|
|
20,000 |
|
|
|
11,250 |
|
| Long-term debt due to related party |
|
|
— |
|
|
|
10,000 |
|
| Deferred compensation obligations |
|
|
5,745 |
|
|
|
5,555 |
|
| Other long-term liabilities |
|
|
4,362 |
|
|
|
4,252 |
|
| Membership equity |
|
|
100,243 |
|
|
|
96,889 |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
150,070 |
|
|
$ |
150,908 |
|
|
|
|
|
|
|
|
|
|
J. Alexander’s Holdings, LLC and Subsidiaries
Adjusted EBITDA Reconciliation
(Unaudited in
thousands)
Adjusted EBITDA is a financial measure that management uses to evaluate operating performance and the effectiveness of its business
strategies. Adjusted EBITDA is defined as net income (loss) before interest expense, income tax expense (benefit), depreciation and amortization, and adding transaction and integration costs, loss on disposals of fixed assets, asset impairment
charges and restaurant closing costs, non-cash compensation, loss from discontinued operations, pre-opening expenses and certain unusual items. Management believes Adjusted EBITDA is a useful metric for investors because it provides a comparative
assessment of our operating performance relative to our performance based on our results under GAAP, while isolating the effects of some items that vary from period to period without any correlation to core operating performance. Specifically,
Adjusted EBITDA allows for an assessment of our operating performance without the effect of non-cash depreciation and amortization expenses or our ability to service or incur indebtedness. The following table presents a reconciliation of Adjusted
EBITDA to net income (loss) for all periods presented:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Quarter Ended |
|
|
Nine Months Ended |
|
| |
|
Sept. 27
2015 |
|
|
Sept. 28
2014 |
|
|
Sept. 27
2015 |
|
|
Sept. 28
2014 |
|
| Net income (loss) |
|
$ |
(2,477 |
) |
|
$ |
(215 |
) |
|
$ |
3,034 |
|
|
$ |
6,323 |
|
|
|
|
|
|
| Income tax expense (benefit) |
|
|
(66 |
) |
|
|
124 |
|
|
|
(45 |
) |
|
|
161 |
|
| Interest expense |
|
|
193 |
|
|
|
732 |
|
|
|
970 |
|
|
|
2,223 |
|
| Depreciation and amortization |
|
|
2,179 |
|
|
|
2,013 |
|
|
|
6,398 |
|
|
|
5,955 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| EBITDA |
|
|
(171 |
) |
|
|
2,654 |
|
|
|
10,357 |
|
|
|
14,662 |
|
|
|
|
|
|
| Transaction and integration expenses |
|
|
4,197 |
|
|
|
224 |
|
|
|
6,311 |
|
|
|
326 |
|
| Loss on disposal of fixed assets |
|
|
103 |
|
|
|
75 |
|
|
|
224 |
|
|
|
148 |
|
| Asset impairment charges and restaurant closing costs |
|
|
1 |
|
|
|
— |
|
|
|
2 |
|
|
|
4 |
|
| Non-cash compensation |
|
|
169 |
|
|
|
42 |
|
|
|
509 |
|
|
|
122 |
|
| Loss from discontinued operations, net |
|
|
106 |
|
|
|
107 |
|
|
|
317 |
|
|
|
331 |
|
| Pre-opening expenses |
|
|
21 |
|
|
|
141 |
|
|
|
23 |
|
|
|
162 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted EBITDA |
|
$ |
4,426 |
|
|
$ |
3,243 |
|
|
$ |
17,743 |
|
|
$ |
15,755 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
J. Alexander’s Holdings, LLC and Subsidiaries
Restaurant Operating Profit Reconciliation
(Unaudited
in thousands)
Restaurant Operating Profit is a metric used by management to measure operating performance at the restaurant level. Restaurant
Operating Profit represents net income (loss) before losses from discontinued operations, income tax expense (benefit), interest expense, general and administrative expenses, asset impairment charges and restaurant closing costs, transaction and
integration expenses, pre-opening expenses, and other, net non-operating income or expense. Management believes this measure is useful to investors because it allows for an assessment of our operating performance without the effect of general and
administrative expenses and other non-operating or unusual costs incurred at the corporate level. The following table presents a reconciliation of Restaurant Operating Profit to net income (loss) for all periods presented:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Quarter Ended |
|
|
Nine Months Ended |
|
| |
|
Sept. 27
2015 |
|
|
Sept. 28
2014 |
|
|
Sept. 27
2015 |
|
|
Sept. 28
2014 |
|
| Net income (loss) |
|
$ |
(2,477 |
) |
|
$ |
(215 |
) |
|
$ |
3,034 |
|
|
$ |
6,323 |
|
|
|
|
|
|
| Loss from discontinued operations, net |
|
|
106 |
|
|
|
107 |
|
|
|
317 |
|
|
|
331 |
|
| Income tax expense (benefit) |
|
|
(66 |
) |
|
|
124 |
|
|
|
(45 |
) |
|
|
161 |
|
| Interest expense |
|
|
193 |
|
|
|
732 |
|
|
|
970 |
|
|
|
2,223 |
|
| Other, net |
|
|
(21 |
) |
|
|
(20 |
) |
|
|
(68 |
) |
|
|
(96 |
) |
| General and administrative expenses |
|
|
3,377 |
|
|
|
3,734 |
|
|
|
11,240 |
|
|
|
10,271 |
|
| Asset impairment charges and restaurant closing costs |
|
|
1 |
|
|
|
— |
|
|
|
2 |
|
|
|
4 |
|
| Transaction and integration expenses |
|
|
4,197 |
|
|
|
224 |
|
|
|
6,311 |
|
|
|
326 |
|
| Pre-opening expenses |
|
|
21 |
|
|
|
141 |
|
|
|
23 |
|
|
|
162 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Restaurant Operating Profit |
|
$ |
5,331 |
|
|
$ |
4,827 |
|
|
$ |
21,784 |
|
|
$ |
19,705 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: “Restaurant Operating Profit Margin” is the ratio of Restaurant Operating Profit to net sales.
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