Board declares $1.30 quarterly dividend per share; appoints
William Moreton to Board of
Directors
LEBANON,
Tenn., Dec. 2, 2022 /PRNewswire/ -- Cracker
Barrel Old Country Store, Inc. ("Cracker Barrel" or the "Company")
(Nasdaq: CBRL) today reported its financial results for the
first quarter of fiscal 2023 ended October
28, 2022.
First Quarter Fiscal 2023 Highlights
- The Company reported first quarter total revenue of
$839.5 million. Compared to the prior
year first quarter, total revenue increased 7.0%.
-
- Comparable store restaurant sales increased 7.1%, while
comparable store retail sales increased 4.3%.
- GAAP operating income for the first quarter was $23.6 million, or 2.8% of total revenue, and
adjusted1 operating income was $30.0 million, or 3.6% of total revenue.
- GAAP net income was $17.1
million, or 2.0% of total revenue. Adjusted
EBITDA1 was $54.8 million,
or 6.5% of total revenue.
- GAAP earnings per diluted share were $0.77, and adjusted1 earnings per
diluted share were $0.99.
- The Company announced that its Board of Directors declared a
regular quarterly dividend of $1.30
per share.
- The Company has appointed veteran restaurant leader,
William Moreton, to its Board of
Directors.
Commenting on the first quarter results, Cracker Barrel
President and Chief Executive Officer, Sandra B. Cochran said, "We delivered topline
performance and operating income results in line with our
expectations. I was pleased with our teams' ability to successfully
operate in a challenging environment and with our progress on key
initiatives including cost savings, digital experience, store
technology, and hospitality. I remain confident in our strategy,
and we continue to expect improved performance in the second half
of the fiscal year. While the increased macroeconomic uncertainty
and persistent inflationary pressures merit caution, we believe our
value proposition and strong guest experience position us well to
navigate the environment."
Announcing the appointment of William
Moreton to the Company's Board of Directors, Ms. Cochran
commented, "We are happy to announce that Bill Moreton has agreed to join our Board of
Directors. Bill has over thirty-five years of leadership and
financial experience in the restaurant space, including as the
Chief Executive Officer and Executive Vice Chairman of Panera Bread
Company, President and Chief Financial Officer of Potbelly Sandwich
Works, Chief Executive Officer of Baja
Fresh, and Executive Vice President and Chief Financial
Officer of Houlihan's Restaurant Group, as well as experience in
banking and public accounting. With this background, Bill
brings even more industry expertise and valuable perspective to our
Board and adds to our Board's already impressive level of strategic
capabilities as we navigate industry challenges. Our other
directors and our management team are looking forward to his
contributions."
First Quarter Fiscal 2023 Results
Revenue
The Company reported total revenue of $839.5
million for the first quarter of fiscal 2023, representing
an increase of 7.0% compared to the first quarter of fiscal 2022.
Cracker Barrel comparable store restaurant sales increased 7.1%,
including total menu pricing of 7.8%. Comparable store retail sales
increased 4.3% from the prior year quarter.
Operating Income
GAAP operating income for the
first quarter was $23.6 million, or
2.8% of total revenue. Excluding the approximately $3.2 million in non-cash amortization related to
the gains on the previously disclosed sale and leaseback
transactions and approximately $3.2
million in proxy contest and settlement expenses incurred in
the first quarter, adjusted1 operating income for the
first quarter was $30.0 million, or
3.6% of total revenue, compared to $46.1
million, or 5.9%, of total revenue in the prior year
quarter.
The decline in the Company's adjusted operating income as a
percent of total revenue versus the prior year is primarily the
result of commodity, wage and other expense inflation in excess of
pricing, higher retail cost of goods sold, and elevated maintenance
expense.
Net Income, EBITDA, and Earnings per Diluted
Share
GAAP net income for the first quarter was
$17.1 million, or 2.0% of total
revenue. This represented a 48.7% decrease compared to prior year
quarter GAAP net income of $33.4
million, or 4.3% of total revenue. Adjusted
EBITDA1 was $54.8 million,
or 6.5% of total revenue, a 23.8% decrease compared to the prior
year quarter EBITDA1 of $71.9
million, or 9.2% of total revenue.
GAAP earnings per diluted share for the first quarter were
$0.77, a 45.4% decrease compared to
the prior year quarter GAAP earnings per diluted share of
$1.41. Adjusted1 earnings
per diluted share were $0.99, a 34.9%
decrease compared to the prior year quarter adjusted1
earnings per diluted share of $1.52.
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
January 31, 2023 to shareholders of
record as of January 13, 2023.
Fiscal 2023 Outlook
The Company anticipates the near-term consumer environment will
remain challenged due to continued inflation, low consumer
confidence, and macroeconomic uncertainty. The Company expects the
environment and results to improve, although later in the year than
the Company forecasted last quarter. The Company has thus adjusted
its outlook for the fiscal year as follows:
- Total revenue growth of 6% to 8% compared to the prior fiscal
year;
- Commodity inflation of 8% to 9%, with sequential moderation
each quarter;
- Wage inflation of 5% to 6%;
- GAAP operating income margin rate in the low 4% range and
adjusted operating income margin rate in the high 4% range.
The Company reiterated the following components of its
outlook:
- Three to four new Cracker Barrel units and 15 to 20 new Maple
Street Biscuit Company units
- Cost savings and business model improvements that are expected
to contribute between $20 million to
$25 million to fiscal 2023
profitability;
- Capital expenditures of approximately $125 million; and
- An effective tax rate in the range of 10% to 15%.
The Company reminds readers that the uncertainties created by
current macroeconomic conditions may cause actual results to differ
materially from those expected and that its outlook for fiscal 2023
reflects a number of assumptions, many of which are outside the
Company's control.
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 2023 First 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 December 16,
2022.
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 more than 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 revenues or expenditures, statements of plans and
objectives or future operations or statements of future economic
performance. These, and similar statements are forward-looking
statements concerning matters that involve risks, uncertainties and
other factors which may cause the actual performance of Cracker
Barrel Old Country Store, Inc. and its subsidiaries to differ
materially from those expressed or implied by this discussion. All
forward-looking information is subject to completion of our
financial procedures for Q1 FY 2023 and 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
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 and include the expected effects of
COVID-19 on our business, financial condition and results of
operations and of operational improvement initiatives, such as new
menu items and retail offerings. Factors which could materially
affect actual results include, but are not limited to: risks and
uncertainties associated with inflationary conditions with respect
to the cost for food, ingredients, retail merchandise,
transportation, distribution, labor and utilities and their effects
on the availability of key inputs to our business as well as
consumer spending, travel and demand generally; the COVID-19
pandemic, including the duration of the COVID-19 pandemic and its
ultimate impact on our business, levels of consumer confidence in
the safety of dine-in restaurants, restrictions (including
occupancy restrictions) imposed by governmental authorities, the
effectiveness of cost saving measures undertaken throughout our
operations, disruptions to our operations as a result of the spread
of COVID-19 in our workforce, and our level of indebtedness, or
constraints on our expenditures, ability to service our debt
obligations or make cash distributions to our shareholders or cash
management generally; general or regional economic weakness,
business and societal conditions, and weather on sales and customer
travel; discretionary income or personal expenditure activity of
our customers; 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; our ability to identify, acquire and sell
successful new lines of retail merchandise and new menu items at
our restaurants; our ability to sustain or the effects of plans
intended to improve operational or marketing execution and
performance; uncertain performance of acquired businesses,
strategic investments and other initiatives that we may pursue now
or in the future; changes in or implementation of additional
governmental or regulatory rules, regulations and interpretations
affecting tax, wage and hour matters, health and safety, pensions,
insurance or other undeterminable areas; the effects of plans
intended to promote or protect our brands and products; commodity
price increases; the ability of and cost to us to recruit, train,
and retain qualified hourly and management employees; the effects
of increased competition at our locations on sales and on labor
recruiting, cost, and retention; workers' compensation, group
health and utility price changes; consumer behavior based on
negative publicity or changes in consumer health or dietary trends
or safety aspects of our 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 our
restaurants; the effects of our indebtedness, including under our
credit facility and our convertible senior notes, and associated
restrictions on our financial and operating flexibility and ability
to execute or pursue our operating plans and objectives; changes in
interest rates, increases in borrowed capital or capital market
conditions affecting our financing costs and ability to refinance
all or portions of our indebtedness; the effects of dilution of our
existing stockholders' ownership interest that may ensue from any
conversions of our convertible senior notes or the related warrants
issued in connection with our convertible note hedging
transactions; the effects of business trends on the outlook for
individual restaurant locations and the effect on the carrying
value of those locations; our ability to retain key personnel; the
availability and cost of suitable sites for restaurant development
and our ability to identify those sites; our ability to enter
successfully into new geographic markets that may be less familiar
to us; changes in land, building materials and construction costs;
the actual results of pending, future or threatened litigation or
governmental investigations and the costs and effects of negative
publicity or our ability to manage the impact of social media
associated with these activities; economic or psychological effects
of natural disasters or unforeseen events such as terrorist acts,
social unrest or war and the military or government responses to
such events; disruptions to our restaurant or retail supply chain,
including as a result of COVID-19; changes in foreign exchange
rates affecting our future retail inventory purchases; the impact
of activist shareholders; our reliance on limited distribution
facilities and certain significant vendors; 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)
|
|
First Quarter
Ended
|
|
|
|
10/28/22
|
10/29/21
|
Percentage
Change
|
|
|
|
|
Total
revenue
|
$839,519
|
$784,930
|
7 %
|
|
|
|
|
Cost of goods sold,
(exclusive of depreciation & rent)
|
281,540
|
242,771
|
16
|
|
|
|
|
Labor and other related
expenses
|
291,708
|
274,657
|
6
|
|
|
|
|
Other store operating
expenses
|
196,704
|
183,679
|
7
|
|
|
|
|
General and
administrative expenses
|
45,948
|
40,910
|
12
|
|
|
|
|
Operating
income
|
23,619
|
42,913
|
(45)
|
|
|
|
|
Interest
expense
|
3,532
|
2,629
|
34
|
|
|
|
|
Income before income
taxes
|
20,087
|
40,284
|
(50)
|
|
|
|
|
Provision for income
taxes
|
2,958
|
6,908
|
(57)
|
|
|
|
|
Net income
|
$17,129
|
$33,376
|
(49)
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share –
Basic:
|
$0.77
|
$1.42
|
(46)
|
|
|
|
|
Earnings per share –
Diluted:
|
$0.77
|
$1.41
|
(45)
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares:
|
|
|
|
|
|
|
|
Basic
|
22,193,774
|
23,507,361
|
(6)
|
|
|
|
|
Diluted
|
22,292,654
|
23,593,882
|
(6)
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio
Analysis
|
|
|
|
|
|
|
|
Total
revenue:
|
|
|
|
|
|
|
|
Restaurant
|
78.9 %
|
78.4 %
|
|
|
|
|
|
Retail
|
21.1
|
21.6
|
|
|
|
|
|
Total
revenue
|
100.0
|
100.0
|
|
|
|
|
|
Cost of goods sold,
(exclusive of depreciation & rent)
|
33.5
|
30.9
|
|
|
|
|
|
Labor and other related
expenses
|
34.8
|
35.0
|
|
|
|
|
|
Other store operating
expenses
|
23.4
|
23.4
|
|
|
|
|
|
General and
administrative expenses
|
5.5
|
5.2
|
|
|
|
|
|
Operating
income
|
2.8
|
5.5
|
|
|
|
|
|
Interest
expense
|
0.4
|
0.4
|
|
|
|
|
|
Income before income
taxes
|
2.4
|
5.1
|
|
|
|
|
|
Provision for income
taxes
|
0.4
|
0.8
|
|
|
|
|
|
Net income
|
2.0 %
|
4.3 %
|
|
|
|
|
|
CRACKER BARREL OLD
COUNTRY STORE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited and in thousands, except share
amounts)
|
|
10/28/22
|
|
10/29/21
|
Assets
|
|
|
|
Cash and
cash equivalents
|
$38,705
|
|
$125,865
|
Accounts
receivable
|
32,943
|
|
30,197
|
Inventories
|
231,010
|
|
159,633
|
Prepaid
expenses and other current assets
|
28,583
|
|
41,528
|
Property
and equipment, net
|
965,795
|
|
967,099
|
Operating
lease right-of-use assets, net
|
918,725
|
|
966,866
|
Intangible
Assets
|
21,191
|
|
21,267
|
Other
assets
|
45,411
|
|
55,592
|
Goodwill
|
4,690
|
|
4,690
|
Total assets
|
$2,287,053
|
|
$2,372,737
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
Accounts
payable
|
$135,480
|
|
$138,199
|
Other
current liabilities
|
334,040
|
|
311,448
|
Long-term
debt
|
483,679
|
|
376,974
|
Long-term
operating lease liabilities
|
714,155
|
|
744,150
|
Other
long-term obligations
|
52,110
|
|
86,562
|
Deferred
income taxes
|
80,076
|
|
86,189
|
Shareholders' equity, net
|
487,513
|
|
629,215
|
Total liabilities and shareholders' equity
|
$2,287,053
|
|
$2,372,737
|
|
|
|
|
Common shares issued
and outstanding
|
22,195,467
|
|
23,519,857
|
CRACKER BARREL OLD
COUNTRY STORE, INC.
CONDENSED
CONSOLIDATED CASH FLOW STATEMENT
(Unaudited and in
thousands)
|
|
Three Months
Ended
|
|
10/28/22
|
|
10/29/21
|
Cash flows from
operating activities:
|
|
|
|
Net income
|
$17,129
|
|
$33,376
|
Depreciation and amortization
|
24,791
|
|
25,788
|
Amortization of debt issuance costs
|
431
|
|
479
|
Loss on disposition of property and equipment
|
683
|
|
1,870
|
Share-based compensation
|
2,422
|
|
2,309
|
Noncash lease expense
|
15,013
|
|
14,329
|
Amortization of asset recognized from gain on sale and leaseback
transaction
|
3,184
|
|
3,184
|
Increase in inventories
|
(17,761)
|
|
(21,313)
|
Increase in accounts payable
|
(34,391)
|
|
3,023
|
Net changes in other assets and liabilities
|
(12,101)
|
|
(40,022)
|
Net cash (used in) provided by operating activities
|
(600)
|
|
23,023
|
Cash flows from
investing activities:
|
|
|
|
Purchase of property and equipment, net of insurance
recoveries
|
(21,626)
|
|
(14,053)
|
Proceeds from sale of property and equipment
|
166
|
|
14
|
Acquisition of business, net of cash acquired
|
0
|
|
(1,500)
|
Net cash used in investing activities
|
(21,460)
|
|
(15,539)
|
Cash flows from
financing activities:
|
|
|
|
Proceeds under long-term debt
|
60,000
|
|
0
|
Taxes withheld from issuance of share-based compensation
awards
|
(2,380)
|
|
(2,309)
|
Purchases and retirement of common stock
|
(12,448)
|
|
0
|
Dividends on common stock
|
(29,512)
|
|
(23,903)
|
Net cash provided by (used in) financing activities
|
15,660
|
|
(26,212)
|
|
|
|
|
Net decrease in cash
and cash equivalents
|
(6,400)
|
|
(18,728)
|
Cash and cash
equivalents, beginning of period
|
45,105
|
|
144,593
|
Cash and cash
equivalents, end of period
|
$38,705
|
|
$125,865
|
|
|
|
|
|
|
|
|
|
|
|
|
CRACKER BARREL OLD
COUNTRY STORE, INC.
Supplemental
Information
(Unaudited)
|
|
First Quarter
Ended
|
|
|
|
10/28/22
|
|
10/29/21
|
|
|
Net Change in
Company-Owned Units During Quarter:
|
|
|
|
|
|
Cracker Barrel
|
0
|
|
0
|
|
|
Maple Street Biscuit
Company
|
3
|
|
0
|
|
|
Company-Owned Units in
Operation at End of Quarter:
|
|
|
|
|
|
Cracker Barrel
|
664
|
|
664
|
|
|
Maple Street Biscuit
Company
|
54
|
|
37
|
|
|
|
|
First Quarter
Ended
|
|
|
|
10/28/22
|
|
10/29/21
|
|
|
|
|
Total revenue*: (In
thousands)
|
|
|
|
|
|
|
|
Restaurant
|
$647,245
|
|
$604,278
|
|
|
|
|
Retail
|
177,141
|
|
169,386
|
|
|
|
|
Total
revenue
|
$824,386
|
|
$773,664
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold*
(exclusive of depreciation and rent): (In thousands)
|
|
|
|
|
|
|
|
Restaurant
|
$188,505
|
|
$157,787
|
|
|
|
|
Retail
|
88,926
|
|
82,376
|
|
|
|
|
Total cost of goods
sold
|
$277,431
|
|
$240,163
|
|
|
|
|
|
|
|
|
|
|
|
|
Average unit
volume*: (In thousands)
|
|
|
|
|
|
|
|
Restaurant
|
$974.9
|
|
$910.1
|
|
|
|
|
Retail
|
266.8
|
|
255.1
|
|
|
|
|
Total
|
$1,241.7
|
|
$1,165.2
|
|
|
|
|
Operating
weeks*:
|
8,631
|
|
8,632
|
|
|
|
|
Note*: This information
is for Cracker Barrel stores only and excludes Maple Street Biscuit
Company
|
|
Q1 2023 vs. Q1
2022
|
|
|
Comparable Cracker
Barrel store sales period to period increase:
|
|
|
|
Restaurant
|
7.1 %
|
|
|
Retail
|
4.3 %
|
|
|
Total
|
6.5 %
|
|
|
|
|
|
|
Number of Cracker
Barrel locations in comparable store base
|
662
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 first quarter fiscal 2023 adjusted operating
income and earnings per share. In regards to fiscal 2022, this
reconciliation excludes non-cash amortization of the asset
recognized from the gains on the sale and leaseback transactions
and the related tax impact. In regard to fiscal 2023, this
reconciliation excludes non-cash amortization of the asset
recognized from the gains on the sale and leaseback transactions
and the related tax impact and expenses related to proxy contest
and settlement expenses in connection with the Company's 2022
annual meeting of shareholders. 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.
|
First Quarter Ended
October 28, 2022
|
|
|
|
As
Reported
|
Adjustment
|
As
Adjusted
|
|
|
|
|
|
|
|
(1)(2)(3)
|
|
|
|
|
|
|
Total
Revenue
|
$839,519
|
$0
|
$839,519
|
|
|
|
|
|
Store operating
expense
|
769,952
|
(3,184)
|
766,768
|
|
|
|
|
|
General and
administrative expense
|
45,948
|
(3,198)
|
42,750
|
|
|
|
|
|
Operating
income
|
23,619
|
6,382
|
30,001
|
|
|
|
|
|
Interest
expense
|
3,532
|
0
|
3,532
|
|
|
|
|
|
Income before income
taxes
|
20,087
|
6,382
|
26,469
|
|
|
|
|
|
Provision for income
taxes
|
2,958
|
1,500
|
4,458
|
|
|
|
|
|
Net income
|
$17,129
|
$4,882
|
$22,011
|
|
|
|
|
|
Earnings per share –
basic
|
$0.77
|
$0.22
|
$0.99
|
|
|
|
|
|
Earnings per share –
diluted
|
$0.77
|
$0.22
|
$0.99
|
|
|
|
|
|
|
|
(1)
|
Adjusted for the
non-cash amortization of asset recognized from the gain on sale and
leaseback transactions
|
(2)
|
Adjusted for expenses
related to proxy contest and settlement expenses
|
(3)
|
Adjusted for the tax
impacts of (1) and (2) above
|
|
First Quarter Ended
October 29, 2021
|
|
|
|
As
Reported
|
Adjustment
|
As
Adjusted
|
|
|
|
|
|
|
|
(1)
|
|
|
|
|
|
|
Total
Revenue
|
$784,930
|
-
|
$784,930
|
|
|
|
|
|
Store operating
expense
|
701,107
|
(3,184)
|
697,923
|
|
|
|
|
|
General and
administrative expense
|
40,910
|
-
|
40,910
|
|
|
|
|
|
Operating
income
|
42,913
|
3,184
|
46,097
|
|
|
|
|
|
Interest
expense
|
2,629
|
-
|
2,629
|
|
|
|
|
|
Income before income
taxes
|
40,284
|
3,184
|
43,468
|
|
|
|
|
|
Provision for income
taxes
|
6,908
|
748
|
7,656
|
|
|
|
|
|
Net income
|
$33,376
|
$2,436
|
$35,812
|
|
|
|
|
|
Earnings per share –
basic
|
$1.42
|
$0.10
|
$1.52
|
|
|
|
|
|
Earnings per share –
diluted
|
$1.41
|
$0.11
|
$1.52
|
|
|
|
|
|
|
|
(1)
|
Adjusted for the
non-cash amortization of the asset recognized from the gain on sale
and leaseback transactions 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
In the accompanying press release, the Company
makes reference to its first quarter fiscal 2023 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. The Company believes that presentation of EBITDA
provides investors with an enhanced understanding of the Company's
operating performance and debt leverage metrics, 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 its operating performance.
This information is not intended to be considered in isolation or
as a substitute for net income prepared in accordance with
GAAP.
|
First
Quarter
Ended October 28,
2022
|
|
Net
Income
|
$17,129
|
|
(+) Depreciation
& Amortization
|
24,791
|
|
(+) Amortization
of asset recognized from gain on sale and leaseback
transactions
|
3,184
|
|
(+) Interest
Expense
|
3,532
|
|
(+) Tax (Benefit)
Expense
|
2,958
|
|
EBITDA
|
$51,594
|
|
Adjustments
|
|
|
(+) Expenses related to
proxy contest and settlement expenses
|
3,198
|
|
Adjusted
EBITDA
|
$54,792
|
|
|
|
|
|
|
First Quarter
Ended October 29, 2021
|
|
|
Net
Income
|
$33,376
|
|
|
(+) Depreciation
& Amortization
|
25,788
|
|
|
(+) Amortization
of asset recognized from gain on sale and leaseback
transactions
|
3,184
|
|
|
(+) Interest
Expense
|
2,629
|
|
|
(+) Tax
Expense
|
6,908
|
|
|
EBITDA
|
$71,885
|
|
|
Reconciliation of GAAP-basis Operating Income Margin outlook
to non-GAAP Operating Income Margin outlook
In the
accompanying press release, the Company provides its current
outlook for adjusted operating income margin, a non-GAAP financial
measure, for fiscal 2023. The Company's adjusted operating
income margin outlook excludes the expected non-cash amortization
of the asset recognized from the gains on the sale and leaseback
transactions and expenses related to proxy contest and settlement
expenses in connection with the Company's 2022 annual meeting of
shareholders. The Company believes presenting its current
outlook for adjusted operating income margin that excludes these
items provides investors with an enhanced understanding of the
Company's expected margin 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 margin outlook reported in accordance with
GAAP.
Reconciliation of
Fiscal 2023 Reported to Adjusted Operating Income Margin
Outlook
|
% of Total
Revenue
|
|
Reported Operating
Income Margin Outlook
|
4.1 %
|
4.4 %
|
$12.7M non-cash
amortization of the asset recognized from the gain on sale and
leaseback transactions
|
0.4 %
|
0.4 %
|
$3.2M in expenses
related to proxy contest & settlement
|
0.1 %
|
0.1 %
|
Adjusted Operating
Income Margin Outlook
|
4.6 %
|
4.9 %
|
|
|
|
|
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-first-quarter-fiscal-2023-results-301692055.html
SOURCE Cracker Barrel Old Country Store, Inc.