Board declares $1.30 quarterly dividend per share
LEBANON, Tenn., Feb. 27,
2024 /PRNewswire/ -- Cracker Barrel Old Country
Store, Inc. ("Cracker Barrel" or the "Company") (Nasdaq: CBRL)
today reported its financial results for the second quarter of
fiscal 2024 ended January 26,
2024.
Second Quarter Fiscal 2024 Highlights
- The Company reported second quarter total revenue of
$935.4 million. Compared to the prior
year second quarter, total revenue increased 0.2%.
- Comparable store restaurant sales increased 1.2%, while
comparable store retail sales decreased 5.3%.
- GAAP operating income for the second quarter was $30.8 million, or 3.3% of total revenue, and
adjusted1 operating income was $35.9 million, or 3.8% of total revenue.
- GAAP earnings per diluted share were $1.19, and adjusted1 earnings per
diluted share were $1.37.
- GAAP net income for the second quarter was $26.5 million, or 2.8% of total revenue, and
adjusted EBITDA1 was $63.7
million, or 6.8% of total revenue.
Commenting on the second quarter results, Cracker
Barrel President and Chief Executive Officer Julie Masino
said, "While margins remain pressured, we were encouraged by
the improvement in our traffic trend during the quarter, which we
believe was supported by our investments in labor and advertising
and our focus on the guest experience. Additionally, we continued
to make progress on the development of our strategic
transformation, and our teams are engaged in our efforts to improve
our relevancy, deliver food and an experience that our guests love,
and grow profitability."
Second Quarter Fiscal 2024
Results
Revenue
The Company reported total revenue of $935.4
million for the second quarter of fiscal 2024, representing
an increase of 0.2% compared to the second quarter of fiscal
2023.
Cracker Barrel comparable store restaurant sales
increased 1.2%, including total menu pricing increases of 4.8%.
Comparable store retail sales decreased 5.3% from the prior year
quarter.
Operating Income
GAAP operating
income for the second quarter was $30.8
million, or 3.3% of total revenue, compared to $39.0 million, or 4.2% of total revenue, in the
prior year quarter. Adjusted1 operating income for the
second quarter was $35.9 million, or
3.8% of total revenue, compared to $42.2
million, or 4.5%, of total revenue in the prior year
quarter.
The decrease in the Company's GAAP operating
income as a percentage of total revenue versus the prior year
quarter is primarily the result of higher labor and related
expenses, higher other operating expenses, and higher general and
administrative expenses, partially offset by lower cost of goods
sold in the current year quarter.
The decrease in the Company's
adjusted1 operating income as a percentage of total
revenue versus the prior year quarter is primarily the result of
higher labor and related expenses and higher other operating
expenses, partially offset by lower cost of goods sold in the
current year quarter.
Net Income, EBITDA, and Earnings per
Diluted Share
GAAP net income for the second
quarter was $26.5 million, or
2.8% of total revenue. This represented a 13.0% decrease compared
to prior year quarter GAAP net income of $30.5 million, or 3.3% of total revenue.
Adjusted1 net income for the second quarter was
$30.5 million, or 3.3% of total
revenue. This represented a 7.4% decrease compared to prior year
quarter adjusted1 net income of $32.9 million, or 3.5% of total revenue.
Adjusted EBITDA1 was $63.7 million, or 6.8% of total revenue, a 5.9%
decrease compared to the prior year quarter adjusted
EBITDA1 of $67.7 million, or 7.3% of total revenue.
GAAP earnings per diluted share for the second
quarter were $1.19, a 13.1% decrease
compared to the prior year quarter GAAP earnings per diluted share
of $1.37.
Adjusted1 earnings per diluted share were
$1.37, a 7.5% decrease compared
to the prior year quarter adjusted1 earnings per diluted
share of $1.48.
Quarterly Dividend Declaration
The
Company announced that its Board of Directors declared a quarterly
dividend of $1.30 per share on the
Company's common stock. The quarterly dividend is payable on
May 7, 2024 to shareholders of record
as of April 12, 2024.
Fiscal 2024 Outlook
The Company
provided the following update to its fiscal 2024 outlook:
- Total revenue of $3.5 billion to
$3.6 billion
- Two new Cracker Barrel stores and 9 to 11 new Maple Street
Biscuit Company units
- Commodity inflation of 0% to 2%
- Hourly wage inflation of approximately 5%
- GAAP operating income of $95
million to $105 million and
adjusted1 operating income of $125 million to $135
million, which includes the impact from the 53rd
week in the fiscal 2024 year and reflects the expectation that
third quarter adjusted1 operating income will be
meaningfully below prior year and fourth quarter
adjusted1 operating income will be above prior
year.
- Capital expenditures of $120
million to $135 million
The Company reminds investors that its outlook
reflects a number of assumptions, many of which are outside the
Company's control. In particular, uncertainties created by
macroeconomic conditions, such as ongoing inflation, low consumer
confidence and high interest rates may adversely affect consumer
behavior and cause actual results to differ materially from those
expected.
1 For Non-GAAP
reconciliations, please refer to the Reconciliation of GAAP-Basis
Operating Results to Non-GAAP Operating Results section of this
release.
|
Fiscal 2024 Second Quarter Conference
Call
As previously announced, the live broadcast of Cracker
Barrel's quarterly conference call will be available to the public
online at investor.crackerbarrel.com today beginning at
11:00 a.m. (ET). The online replay
will be available at 2:00 p.m. (ET)
and continue through March 12,
2024.
About Cracker Barrel Old Country
Store®
Cracker Barrel Old Country Store,
Inc. (Nasdaq: CBRL) provides a caring and friendly
home-away-from-home experience while offering guests high-quality
homestyle food to enjoy in-store or to-go and unique shopping — all
at a fair price. Established in 1969 in Lebanon, Tenn., Cracker Barrel and its
affiliates operate over 660 company-owned Cracker Barrel Old
Country Store® locations in 45 states and own the fast-casual Maple
Street Biscuit Company. For more information about the Company,
visit crackerbarrel.com.
CBRL-F
Except for specific historical information, certain of the
matters discussed in this press release may express or imply
projections of items such as revenues or expenditures, statements
of plans and objectives or future operations or statements of
future economic performance. These and similar statements regarding
events or results that the Company expects will or may occur in the
future are forward-looking statements concerning matters that
involve risks, uncertainties and other factors which may cause the
actual results and performance of the Company to differ materially
from those expressed or implied by such forward-looking statements.
All forward-looking information is provided pursuant to the safe
harbor established under the Private Securities Litigation Reform
Act of 1995 and should be evaluated in the context of these risks,
uncertainties and other factors. Forward-looking statements
generally can be identified by the use of forward-looking
terminology such as "trends," "assumptions," "target," "guidance,"
"outlook," "opportunity," "future," "plans," "goals," "objectives,"
"expectations," "near-term," "long-term," "projection," "may,"
"will," "would," "could," "expect," "intend," "estimate,"
"anticipate," "believe," "potential," "regular," "should,"
"projects," "forecasts," or "continue" (or the negative or other
derivatives of each of these terms) or similar terminology. The
Company believes that the assumptions underlying any
forward-looking statements are reasonable; however, any of the
assumptions could be inaccurate, and therefore, actual results may
differ materially from those projected in or implied by the
forward-looking statements. In addition to the risks of ordinary
business operations, factors and risks that may result in actual
results differing from this forward-looking information include,
but are not limited to risks and uncertainties associated with
inflationary conditions with respect to the price of commodities,
transportation, distribution and labor; disruptions to the
Company's restaurant or retail supply chain; the Company's ability
to identify, acquire and sell successful new lines of retail
merchandise and new menu items at its restaurants; the Company's
ability to sustain or the effects of plans intended to improve
operational or marketing execution and performance; the effects of
increased competition at the Company's locations on sales and on
labor recruiting, cost, and retention; consumer behavior based on
negative publicity or changes in consumer health or dietary trends
or safety aspects of the Company's food or products or those of the
restaurant industry in general, including concerns about outbreaks
of infectious disease, as well as the possible effects of such
events on the price or availability of ingredients used in the
Company's restaurants; the effects of the Company's indebtedness
and associated restrictions on the Company's financial and
operating flexibility and ability to execute or pursue its
operating plans and objectives; changes in interest rates,
increases in borrowed capital or capital market conditions
affecting the Company's financing costs and ability to refinance
its indebtedness, in whole or in part; the Company's reliance on
limited distribution facilities and certain significant vendors;
information technology-related incidents, including data privacy
and information security breaches, whether as a result of
infrastructure failures, employee or vendor errors, or actions of
third parties; changes in or implementation of additional
governmental or regulatory rules, regulations and interpretations
affecting tax, wage and hour matters, health and safety, animal
welfare, pensions, insurance or other undeterminable areas; the
effects of plans intended to promote or protect our brands and
products; the actual results of pending, future or threatened
litigation or governmental investigations and the costs and effects
of negative publicity or the Company's ability to manage the impact
of social media associated with these activities; the impact of
activist shareholders; the Company's ability to enter successfully
into new geographic markets that may be less familiar to it;
changes in land, building materials and construction costs; the
availability and cost of suitable sites for restaurant development
and the Company's ability to identify those sites; the Company's
ability to retain key personnel; the ability of and cost to the
Company to recruit, train, and retain qualified hourly and
management employees; uncertain performance of acquired businesses,
strategic investments and other initiatives that the Company may
pursue from time to time; the effects of business trends on the
outlook for individual restaurant locations and the effect on the
carrying value of those locations; general or regional economic
weakness, business and societal conditions and the weather impact
on sales and customer travel; discretionary income or personal
expenditure activity of the Company's customers; economic or
psychological effects of natural disasters or other unforeseen
events such as terrorist acts, social unrest or war and the
military or government responses to such events; changes in foreign
exchange rates affecting the Company's future retail inventory
purchases; workers' compensation, group health and utility price
changes; implementation of new or changes in interpretation of
existing accounting principles generally accepted in the United States of America ("GAAP"); and
other factors described from time to time in our filings with the
Securities and Exchange Commission, press releases, and other
communications. Any forward-looking statement made by us herein, or
elsewhere, speaks only as of the date on which made. We expressly
disclaim any intent, obligation or undertaking to update or revise
any forward-looking statements made herein to reflect any change in
our expectations with regard thereto or any change in events,
conditions or circumstances on which any such statements are
based.
CRACKER BARREL OLD
COUNTRY STORE, INC.
CONDENSED
CONSOLIDATED INCOME STATEMENT
(Unaudited)
(In thousands,
except share and per share amounts, percentages and
ratios)
|
|
|
|
|
Second Quarter
Ended
|
|
Six Months
Ended
|
|
|
1/26/2024
|
1/27/2023
|
Percentage
Change
|
|
1/26/2024
|
1/27/2023
|
Percentage
Change
|
|
Total
revenue
|
$935,401
|
$933,868
|
0 %
|
|
$1,759,240
|
$1,773,387
|
(1 %)
|
|
Cost of goods sold
(exclusive of depreciation & rent)
|
314,851
|
326,555
|
(4)
|
|
570,410
|
608,095
|
(6)
|
|
Labor and other related
expenses
|
323,196
|
313,967
|
3
|
|
627,643
|
605,675
|
4
|
|
Other store operating
expenses
|
214,056
|
208,857
|
2
|
|
417,741
|
405,561
|
3
|
|
General and
administrative expenses
|
52,536
|
45,518
|
15
|
|
101,271
|
91,466
|
11
|
|
Operating
income
|
30,762
|
38,971
|
(21)
|
|
42,175
|
62,590
|
(33)
|
|
Interest
expense
|
5,067
|
4,408
|
15
|
|
10,005
|
7,940
|
26
|
|
Income before income
taxes
|
25,695
|
34,563
|
(26)
|
|
32,170
|
54,650
|
(41)
|
|
Provision for income
taxes (income tax benefit)
|
(839)
|
4,072
|
(121)
|
|
180
|
7,030
|
(97)
|
|
Net income
|
$26,534
|
$30,491
|
(13)
|
|
$31,990
|
$47,620
|
(33)
|
|
|
|
|
|
|
|
|
|
|
Earnings per share –
Basic:
|
$1.20
|
$1.38
|
(13)
|
|
$1.44
|
$2.15
|
(33)
|
|
Earnings per share –
Diluted:
|
$1.19
|
$1.37
|
(13)
|
|
$1.44
|
$2.14
|
(33)
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares:
|
|
|
|
|
|
|
|
|
Basic
|
22,196,758
|
22,173,280
|
0
|
|
22,181,305
|
22,183,527
|
0
|
|
Diluted
|
22,295,532
|
22,251,835
|
0
|
|
22,279,611
|
22,272,244
|
0
|
|
|
|
|
|
|
|
|
|
|
Ratio
Analysis
|
|
|
|
|
|
|
|
|
Total
revenue:
|
|
|
|
|
|
|
|
|
Restaurant
|
78.1 %
|
76.9 %
|
|
|
79.1 %
|
77.8 %
|
|
|
Retail
|
21.9
|
23.1
|
|
|
20.9
|
22.2
|
|
|
Total
revenue
|
100.0
|
100.0
|
|
|
100.0
|
100.0
|
|
|
Cost of goods sold
(exclusive of depreciation & rent)
|
33.7
|
35.0
|
|
|
32.4
|
34.3
|
|
|
Labor and other related
expenses
|
34.5
|
33.6
|
|
|
35.7
|
34.1
|
|
|
Other store operating
expenses
|
22.9
|
22.4
|
|
|
23.7
|
22.9
|
|
|
General and
administrative expenses
|
5.6
|
4.8
|
|
|
5.8
|
5.2
|
|
|
Operating
income
|
3.3
|
4.2
|
|
|
2.4
|
3.5
|
|
|
Interest
expense
|
0.6
|
0.5
|
|
|
0.6
|
0.4
|
|
|
Income before income
taxes
|
2.7
|
3.7
|
|
|
1.8
|
3.1
|
|
|
Provision for income
taxes (income tax benefit)
|
(0.1)
|
0.4
|
|
|
0.0
|
0.4
|
|
|
Net income
|
2.8 %
|
3.3 %
|
|
|
1.8 %
|
2.7 %
|
|
|
CRACKER BARREL OLD COUNTRY STORE,
INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited and in thousands, except share
amounts)
|
|
1/26/24
|
|
1/27/23
|
|
Assets
|
|
|
|
|
Cash and
cash equivalents
|
$12,602
|
|
$49,404
|
|
Accounts
receivable
|
41,524
|
|
36,513
|
|
Inventories
|
172,702
|
|
187,251
|
|
Prepaid
expenses and other current assets
|
40,972
|
|
35,515
|
|
Property
and equipment, net
|
965,667
|
|
965,565
|
|
Operating
lease right-of-use assets, net
|
877,580
|
|
910,182
|
|
Intangible
assets
|
24,498
|
|
21,173
|
|
Other
assets
|
44,824
|
|
46,414
|
|
Goodwill
|
4,690
|
|
4,690
|
|
Total assets
|
$2,185,059
|
|
$2,256,707
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
Accounts
payable
|
$136,388
|
|
$135,473
|
|
Other
current liabilities
|
322,449
|
|
335,318
|
|
Long-term
debt
|
452,278
|
|
454,111
|
|
Long-term
operating lease liabilities
|
689,499
|
|
712,056
|
|
Other
long-term obligations
|
47,791
|
|
53,293
|
|
Deferred
income taxes
|
74,687
|
|
79,963
|
|
Shareholders' equity, net
|
461,967
|
|
486,493
|
|
Total liabilities and shareholders' equity
|
$2,185,059
|
|
$2,256,707
|
|
|
|
|
|
|
Common shares issued
and outstanding
|
22,201,086
|
|
22,150,800
|
|
CRACKER BARREL OLD
COUNTRY STORE, INC.
CONDENSED
CONSOLIDATED CASH FLOW STATEMENT
(Unaudited and in
thousands)
|
|
Six Months
Ended
|
|
1/26/24
|
|
1/27/23
|
Cash flows from
operating activities:
|
|
|
|
Net income
|
$31,990
|
|
$47,620
|
Depreciation and amortization
|
54,428
|
|
50,361
|
Amortization of debt issuance costs
|
874
|
|
862
|
Loss on disposition of property and equipment
|
2,898
|
|
2,225
|
Share-based compensation
|
6,253
|
|
5,111
|
Noncash lease expense
|
30,162
|
|
29,845
|
Amortization of asset recognized from gain on sale and leaseback
transaction
|
6,368
|
|
6,368
|
Decrease in inventories
|
16,662
|
|
25,998
|
Decrease in accounts payable
|
(29,096)
|
|
(34,398)
|
Net changes in other assets and liabilities
|
(58,660)
|
|
(33,170)
|
Net cash provided by operating activities
|
61,879
|
|
100,822
|
Cash flows from
investing activities:
|
|
|
|
Purchase of property and equipment, net of insurance
recoveries
|
(51,080)
|
|
(48,369)
|
Proceeds from sale of property and equipment
|
91
|
|
226
|
Net cash used in investing activities
|
(50,989)
|
|
(48,143)
|
Cash flows from
financing activities:
|
|
|
|
Net proceeds under long-term debt
|
36,500
|
|
29,951
|
Taxes withheld from issuance of share-based compensation
awards
|
(1,597)
|
|
(2,400)
|
Purchases and retirement of common stock
|
0
|
|
(17,449)
|
Dividends on common stock
|
(58,338)
|
|
(58,482)
|
Net cash used in financing activities
|
(23,435)
|
|
(48,380)
|
|
|
|
|
Net increase (decrease)
in cash and cash equivalents
|
(12,545)
|
|
4,299
|
Cash and cash
equivalents, beginning of period
|
25,147
|
|
45,105
|
Cash and cash
equivalents, end of period
|
$12,602
|
|
$49,404
|
CRACKER BARREL OLD
COUNTRY STORE, INC.
Supplemental
Information
(Unaudited)
|
|
|
Second Quarter
Ended
|
|
|
1/26/24
|
|
1/27/23
|
|
Net Change in
Company-Owned Units During Quarter:
|
|
|
|
|
Cracker Barrel
|
1
|
|
1
|
|
Maple Street Biscuit
Company
|
3
|
|
2
|
|
Company-Owned Units in
Operation at End of Quarter:
|
|
|
|
|
Cracker Barrel
|
662
|
|
665
|
|
Maple Street Biscuit
Company
|
63
|
|
56
|
|
|
Second Quarter
Ended
|
|
Six Months
Ended
|
|
1/26/24
|
|
1/27/23
|
|
1/26/24
|
|
1/27/23
|
Total revenue*: (In
thousands)
|
|
|
|
|
|
|
|
Restaurant
|
$714,310
|
|
$702,707
|
|
$1,359,199
|
|
$1,349,952
|
Retail
|
204,517
|
|
215,739
|
|
367,551
|
|
392,880
|
Total
revenue
|
$918,827
|
|
$918,446
|
|
$1,726,750
|
|
$1,742,832
|
|
|
|
|
|
|
|
|
Cost of goods sold*
(exclusive of depreciation and rent): (In thousands)
|
|
|
|
|
|
|
|
Restaurant
|
$201,608
|
|
$206,415
|
|
$371,180
|
|
$394,920
|
Retail
|
108,914
|
|
116,398
|
|
190,998
|
|
205,324
|
Total cost of goods
sold
|
$310,522
|
|
$322,813
|
|
$562,178
|
|
$600,244
|
|
|
|
|
|
|
|
|
Average unit
volume*: (In thousands)
|
|
|
|
|
|
|
|
Restaurant
|
$1,079.0
|
|
$1,057.3
|
|
$2,054.7
|
|
$2,032.2
|
Retail
|
309.0
|
|
324.6
|
|
555.7
|
|
591.5
|
Total
|
$1,388.0
|
|
$1,381.9
|
|
$2,610.4
|
|
$2,623.7
|
Operating
weeks*:
|
8,606
|
|
8,640
|
|
17,199
|
|
17,271
|
|
|
|
|
|
|
|
|
|
Note*: This information
is for Cracker Barrel stores only and excludes Maple Street Biscuit
Company
|
CRACKER BARREL OLD COUNTRY STORE,
INC.
Reconciliation of GAAP-Basis Operating Results to
Non-GAAP Operating Results
(Unaudited and in
thousands, except per share amounts)
Adjusted Operating Income and Earnings Per
Share
In the accompanying press release, the Company makes
reference to its second quarter fiscal 2023 and fiscal 2024
adjusted operating income and earnings per share. In regard to
fiscal 2023, this reconciliation excludes the non-cash amortization
of the asset recognized from the gains on the sale and leaseback
transactions and expenses related to the proxy contest and
settlement in connection with the Company's 2022 annual meeting of
shareholders and the related tax impacts. In regard to fiscal 2024,
this reconciliation excludes the non-cash amortization of the asset
recognized from the gains on the sale and leaseback transactions,
expenses related to the Company's CEO transition, expenses
associated with a strategic transformation initiative, a corporate
restructuring charge, and an employee benefits policy change and
the related tax impacts. The Company believes excluding these items
from its financial results provides investors with an enhanced
understanding of the Company's financial results and enhances
comparability across periods. This information is not intended to
be considered in isolation or as a substitute for operating income
or earnings per share information prepared in accordance with
GAAP.
|
Second
Quarter Ended January 26, 2024
|
|
Six Month Ended
January 26, 2024
|
|
As
Reported
|
Adjustment
|
As
Adjusted
|
|
As
Reported
|
Adjustment
|
As
Adjusted
|
|
|
(1)
|
|
|
|
(1)(2)
|
|
Total
Revenue
|
$935,401
|
$0
|
$935,401
|
|
$1,759,240
|
$0
|
$1,759,240
|
Store operating
expense
|
852,103
|
2,099
|
854,202
|
|
1,615,794
|
(1,084)
|
1,614,710
|
General and
administrative expense
|
52,536
|
(7,287)
|
45,249
|
|
101,271
|
(11,706)
|
89,565
|
Operating
income
|
30,762
|
5,188
|
35,950
|
|
42,175
|
12,790
|
54,965
|
Interest
expense
|
5,067
|
0
|
5,067
|
|
10,005
|
0
|
10,005
|
Income before income
taxes
|
25,695
|
5,188
|
30,883
|
|
32,170
|
12,790
|
44,960
|
Provision for income
taxes (tax benefit)
|
(839)
|
1,220
|
381
|
|
180
|
3,006
|
3,186
|
Net income
|
$26,534
|
$3,968
|
$30,502
|
|
$31,990
|
$9,784
|
$41,774
|
Earnings per share –
basic
|
$1.20
|
$0.17
|
$1.37
|
|
$1.44
|
$0.44
|
$1.88
|
Earnings per share –
diluted
|
$1.19
|
$0.18
|
$1.37
|
|
$1.44
|
$0.44
|
$1.88
|
|
(1) Adjusted for the
non-cash amortization of the asset recognized from the gains on the
sale and leaseback transactions, expenses related to the Company's
CEO transition, expenses associated with a strategic transformation
initiative, and an employee benefits policy change and the related
tax impacts.
|
(2) Adjusted for a
corporate restructuring charge and the related tax
impacts.
|
|
Second
Quarter Ended January 27, 2023
|
|
Six Month Ended
January 27, 2023
|
|
|
As
Reported
|
Adjustment
|
As
Adjusted
|
|
As
Reported
|
Adjustment
|
As
Adjusted
|
|
|
(1)
|
|
|
|
(1)(2)
|
|
Total
Revenue
|
$933,868
|
$0
|
$933,868
|
|
$1,773,387
|
$0
|
$1,773,387
|
Store operating
expense
|
849,379
|
(3,184)
|
846,195
|
|
1,619,331
|
(6,368)
|
1,612,963
|
General and
administrative expense
|
45,518
|
0
|
45,518
|
|
91,466
|
(3,198)
|
88,268
|
Operating
income
|
38,971
|
3,184
|
42,155
|
|
62,590
|
9,566
|
72,156
|
Interest
expense
|
4,408
|
0
|
4,408
|
|
7,940
|
0
|
7,940
|
Income before income
taxes
|
34,563
|
3,184
|
37,747
|
|
54,650
|
9,566
|
64,216
|
Provision for income
taxes
|
4,072
|
748
|
4,820
|
|
7,030
|
2,248
|
9,278
|
Net income
|
$30,491
|
$2,436
|
$32,927
|
|
$47,620
|
$7,318
|
$54,938
|
Earnings per share –
basic
|
$1.38
|
$0.10
|
$1.48
|
|
$2.15
|
$0.33
|
$2.48
|
Earnings per share –
diluted
|
$1.37
|
$0.11
|
$1.48
|
|
$2.14
|
$0.33
|
$2.47
|
|
|
|
|
|
|
|
|
|
(1) Adjusted for the
non-cash amortization of the asset recognized from the gain on sale
and leaseback transactions and related tax impacts.
|
(2) Adjusted for
expenses related to proxy contest and settlement expenses and
related tax impacts.
|
CRACKER BARREL OLD COUNTRY STORE,
INC.
Reconciliation of GAAP-Basis Operating Results to
Non-GAAP Operating Results
(Unaudited and in
thousands)
EBITDA/Adjusted EBITDA
In the accompanying press
release, the Company makes reference to its second quarter fiscal
2023 and fiscal 2024 EBITDA and adjusted EBITDA. The Company
defines EBITDA as net income excluding depreciation and
amortization, non-cash amortization of the asset recognized from
the gains on sale and leaseback transactions, interest expense and
tax expense. In regard to fiscal 2023, the Company further adjusts
EBITDA to exclude expenses related to the proxy contest and
settlement in connection with the Company's 2022 annual meeting of
shareholders and the related tax impacts. In regard to fiscal 2024,
the Company further adjusts EBITDA to exclude expenses related to
the Company's CEO transition, expenses associated with a strategic
transformation initiative, a corporate restructuring charge, and an
employee benefits policy change and the related tax impacts. The
Company believes that presentation of EBITDA and adjusted EBITDA
provides investors with an enhanced understanding of the Company's
operating performance and debt leverage metrics and enhances
comparability with the Company's historical results, and that the
presentation of this non-GAAP financial measure, when combined with
the primary presentation of net income, is beneficial to an
investor's complete understanding of the Company's operating
performance. This information is not intended to be considered in
isolation or as a substitute for net income prepared in accordance
with GAAP.
|
|
|
|
Second Quarter
Ended
January 26, 2024
|
|
Six Months
Ended
January 26, 2024
|
Net
Income
|
|
|
|
$26,534
|
|
$31,990
|
(+) Depreciation
& amortization
|
|
|
|
27,759
|
|
54,428
|
(+) Amortization
of asset recognized from gain on sale and leaseback
transactions
|
|
3,184
|
|
6,368
|
(+) Interest
expense
|
|
|
|
5,067
|
|
10,005
|
(+) Tax expense
(tax benefit)
|
|
|
|
(839)
|
|
180
|
EBITDA
|
|
|
|
$61,705
|
|
$102,971
|
Adjustments
|
|
|
|
|
|
|
(+) CEO
transition expenses
|
|
|
|
3,473
|
|
5,109
|
(+) Strategic
transformation initiative expenses
|
|
|
|
3,815
|
|
4,956
|
(+) Corporate
restructuring charge
|
|
0
|
|
1,643
|
(-) Employee
benefits policy change
|
|
|
|
(5,284)
|
|
(5,284)
|
Adjusted
EBITDA
|
|
|
|
$63,709
|
|
$109,395
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter
Ended
January 27, 2023
|
|
Six Months
Ended
January 27, 2023
|
Net
Income
|
|
|
|
$30,491
|
|
$47,620
|
(+) Depreciation
& amortization
|
|
|
|
25,570
|
|
50,361
|
(+) Amortization
of asset recognized from gain on sale and leaseback
transactions
|
|
3,184
|
|
6,368
|
(+) Interest
expense
|
|
|
|
4,408
|
|
7,940
|
(+) Tax
expense
|
|
|
|
4,072
|
|
7,030
|
EBITDA
|
|
|
|
$67,725
|
|
$119,319
|
Adjustments
|
|
|
|
|
|
|
(+) Proxy contest
and settlement expenses
|
|
|
|
0
|
|
3,198
|
Adjusted
EBITDA
|
|
|
|
$67,725
|
|
$122,517
|
Reconciliation of GAAP Operating Income
Outlook to Non-GAAP Operating Income Outlook
In the
accompanying press release, the Company provides its current
outlook for adjusted operating income, a non-GAAP financial
measure, for fiscal 2024. The Company's adjusted operating income
outlook excludes the non-cash amortization of the asset recognized
from the gains on the sale and leaseback transactions, expenses
related to the Company's CEO transition, expenses associated with a
strategic transformation initiative, a corporate restructuring
charge, and an employee benefits policy change and the related tax
impacts. The Company believes presenting its current outlook for
adjusted operating income that excludes these items provides
investors with an enhanced understanding of the Company's expected
performance and enhances comparability with the Company's
historical results. This information is not intended to be
considered in isolation or as a substitute for operating income
outlook reported in accordance with GAAP.
|
$
Million
|
|
Reported GAAP Operating
Income Outlook
|
$95
|
to
|
$105
|
|
Non-cash amortization
of the asset recognized from the gain on sale and leaseback
transactions
|
$13
|
|
$13
|
|
Expenses related to CEO
transition
|
$10
|
|
$10
|
|
Expenses related to
strategic transformation initiative
|
$10
|
|
$10
|
|
Corporate restructuring
charge
|
$2
|
|
$2
|
|
Employee benefits
policy change
|
($5)
|
|
($5)
|
|
Adjusted Operating
Income Outlook
|
$125
|
to
|
$135
|
|
Investor
Contact:
|
Adam Hanan
|
|
(615)
443-9887
|
Media
Contact:
|
Heidi Pearce
|
|
(615)
235-4135
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/cracker-barrel-reports-second-quarter-fiscal-2024-results-302071809.html
SOURCE Cracker Barrel Old Country Store, Inc.