HOUSTON, April 21,
2022 /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 9,
2022.
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 include in
the Company's assets and liabilities the undiscounted estimate of
future revenues and expenses through the end of the
liquidation. Based on the liquidation basis of accounting,
the net assets in liquidation at March 9,
2022 are currently estimated to result in future aggregate
liquidating distributions of $2.89
per common share based on the number of common shares outstanding
on that date. This represents no change from our last
reported estimate at the end of the first quarter of fiscal
2022. After giving effect to the $0.50 per common share distribution paid on
March 28, 2022, the net assets in
liquidation are currently estimated to result in remaining future
aggregate liquidating distributions of $2.39 per common share. 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 to complete the plan of liquidation, including
costs of any transfers to a liquidating entity at that
time.
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 9, 2022 has been estimated
based on undiscounted cash flow projections and assumes a final
liquidation of the Company on June 30,
2022, with any remaining assets and liabilities being
transferred to a liquidating entity at that time, even though the
actual timing of the sale of the Company's remaining operating
locations and real estate holdings cannot be determined with any
specificity at this time. As such, the final liquidation of
the Company and it's monetization of it's remaining assets while in
a liquidating entity 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.
Asset Sales
During the second quarter of fiscal year 2022, the Company sold
4 real estate assets for total gross proceeds of approximately
$10.3 million.
Subsequent to the second quarter of fiscal year 2022, the
Company sold the Culinary Contract Services business.
The Company currently owns 18 real estate assets, of which 6 are
operating locations and 12 are vacant. The Company currently has 10
Luby's Cafeterias and two Fuddruckers (including 1 combo unit)
which are managed by third parties as the Company pursues
disposition options for owned properties and leases.
Distributions
On March 28, 2022, the Company
paid a cash liquidating distribution of $15.5 million, or $0.50 per common share, to stockholders of record
as of March 21, 2022.
About Luby's
Luby's, Inc. (NYSE: LUB) previously announced its plan of
liquidation and dissolution, which was approved by its shareholders
on November 17, 2020. Luby's has sold
both its restaurant brands, Luby's Cafeterias and Fuddruckers, as
well as its Culinary Contract Services business segment.
Luby's is actively seeking buyers for its remaining real estate
assets.
Forward Looking Statements
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, effects of the Company's Liquidation and Dissolution Plan
(the "Plan"), expected value or proceeds attributable to the sale
of assets, and expected proceeds to be distributed to stockholders
or the timing thereof. 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 the COVID-19 pandemic; 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 governmental regulations, including changes in
minimum wages; the effects of inflation; unfavorable publicity
relating to operations, including publicity concerning food
quality, illness or other health concerns or labor relations; and
other risks and uncertainties disclosed in Luby's annual reports on
Form 10- K and quarterly reports on Form 10-Q, including
information regarding the risks, uncertainties and other factors
relating to the Plan, the expected net proceeds from the sale of
assets, and expected proceeds to be distributed to
stockholders.
For additional information contact:
John Garilli, Interim CEO
LInvestors@lubys.com
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SOURCE Luby's, Inc.