HOUSTON, April 26, 2021 /PRNewswire/ -- Luby's, Inc.
(NYSE: LUB) ("Luby's") which is in the process of monetizing its
assets for the benefit of its shareholders, announced today its
financial results for the second quarter ended March 10, 2021.
Financial Results
Liquidation Basis of Accounting
As a result of Luby's shareholder approval of its plan of
liquidation on November 17, 2020,
effective November 19, 2020, in
accordance with Generally Accepted Accounting Principles ("GAAP"),
the Company began reporting its financial results on the
liquidation basis of accounting. The liquidation basis of
accounting requires, among other things, that management estimates
net sales proceeds on an undiscounted basis as well as includes in
the Company's assets and liabilities the undiscounted estimate of
future revenues and expenses of the Company through the end of the
liquidation. Based on the liquidation basis of accounting,
the net assets in liquidation at March 10,
2021 are currently estimated to result in future liquidating
distributions of approximately $3.98
per common share based on the number of common shares outstanding
on that date, which was increased $0.16 per share from last quarter's estimate
owing primarily to actual realization from completed
transactions. This estimate of future liquidating
distributions includes projections of sales proceeds and net
operating revenues to be received and costs and expenses to be
incurred, including costs to dispose of the Company's assets,
during the period required to complete the plan of liquidation
which is currently projected to be completed by June 30, 2022.
There is inherent uncertainty with these projections, and
accordingly, these projections could change materially based on a
number of factors both within and outside of Luby's control. There
can be no assurance that these estimated values will be
realized. Such amounts should not be taken as an indication
of the timing or the amount of future distributions or our actual
dissolution.
The current estimate of net assets in liquidation at
March 10, 2021 has been estimated
based on undiscounted cash flow projections and assumes a final
liquidation on June 30, 2022 even
though the actual timing of the sale of the Company's operating
businesses and real estate holdings cannot be determined with any
specificity at this time. As such, the final liquidation of
the Company is subject to future events and uncertainties.
Liabilities are carried at their contractual amounts due as
adjusted for the impact of timing of the planned liquidation.
It is not possible to predict with certainty the timing or
aggregate amount which may ultimately be distributed to our
shareholders and no assurance can be given that the distributions
will equal or exceed the estimate presented in this release.
The Company currently operates 58 Luby's Cafeterias and 11
Fuddruckers, as well as Culinary Contract Services at 25 locations,
while pursuing sales of these businesses as part of its liquidation
plan. Operationally, it is business as usual as we progress through
this plan to find new stewards for these iconic brands.
About Luby's
Luby's, Inc. (NYSE: LUB) operates two core restaurant brands:
Luby's Cafeterias and Fuddruckers. Luby's is also the franchisor
for the Fuddruckers restaurant brand. In addition, through its
Luby's Culinary Contract Services business segment, Luby's provides
food service management to sites consisting of healthcare,
corporate dining locations, sports stadiums, and sales through
retail grocery stores.
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 regarding sales of
assets, expected proceeds from the sale of assets, expected
proceeds to be distributed to stockholders, 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 effects of public health crises such as the
COVID-19 pandemic; 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 report on Form 10-K,
quarterly reports on Form 10-Q, and current reports on Form
8-k.
For additional information contact:
John Garilli, Interim CEO
LInvestors@lubys.com
View original
content:http://www.prnewswire.com/news-releases/lubys-issues-second-quarter-fiscal-2021-report-301277151.html
SOURCE Luby's, Inc.