LEBANON,
Tenn., May 30, 2024 /PRNewswire/ -- Cracker
Barrel Old Country Store, Inc. ("Cracker Barrel" or the "Company")
(Nasdaq: CBRL) today reported its financial results for the
third quarter of fiscal 2024 ended April 26,
2024.
Third Quarter Fiscal 2024 Highlights
- The Company reported third quarter total revenue of
$817.1 million. Compared to the prior
year third quarter, total revenue decreased 1.9%.
- Comparable store restaurant sales decreased 1.5%, while
comparable store retail sales decreased 3.8%.
- GAAP earnings (loss) per diluted share were ($0.41), and adjusted1 earnings per
diluted share were $0.88.
- GAAP net income (loss) for the third quarter was ($9.2) million, or (1.1%) of total revenue, and
adjusted EBITDA1 was $47.9
million, or 5.9% of total revenue.
Commenting on the third quarter results, Cracker Barrel
President and Chief Executive Officer Julie Masino said, "As
we indicated in our recent business update call, our third quarter
results came in below expectations due to softer traffic than we
originally anticipated, which underscores the importance of
executing our strategic transformation. Our teams are fully
committed to bringing these plans to life while continuing to
deliver an exceptional guest experience and managing our business
every shift, every day."
Third Quarter Fiscal 2024 Results
Revenue
The Company reported total revenue of $817.1
million for the third quarter of fiscal 2024, representing a
decrease of 1.9% compared to the third quarter of fiscal 2023.
Cracker Barrel comparable store restaurant sales decreased 1.5%,
including total menu pricing increases of 4.0%. Comparable store
retail sales decreased 3.8% from the prior year quarter.
Net Income, EBITDA, and Earnings per Diluted
Share
GAAP net income (loss) for the third quarter
was ($9.2) million, or (1.1%) of
total revenue, as compared to prior year third quarter GAAP net
income of $14.0 million, or 1.7% of
total revenue. Adjusted1 net income for the third
quarter was $19.6 million, or
2.4% of total revenue, as compared to prior year quarter
adjusted1 net income of $24.6
million, or 3.0% of total revenue.
Adjusted EBITDA1 was $47.9
million, or 5.9% of total revenue, as compared to the prior
year quarter adjusted EBITDA1 of $59.6 million, or 7.2% of total revenue.
GAAP earnings (loss) per diluted share for the third quarter
were ($0.41), as compared to the
prior year third quarter GAAP earnings per diluted share of
$0.63.
Adjusted1 earnings per diluted share were
$0.88, a 20.7% decrease compared
to the prior year quarter adjusted1 earnings per diluted
share of $1.11.
Quarterly Dividend Declaration
The Company previously
announced that its Board of Directors declared a quarterly dividend
of $0.25 per share on the Company's
common stock. The quarterly dividend is payable on August 6, 2024 to shareholders of record as of
July 19, 2024.
Fiscal 2024 Outlook
The Company provided the following
update to its fiscal 2024 outlook:
- Total revenue of $3.47 billion to
$3.51 billion
- Two new Cracker Barrel stores and 8 to 10 new Maple Street
Biscuit Company units
- Commodity inflation that is approximately flat compared to the
prior year
- Hourly wage inflation of approximately 5% compared to the prior
year
- Adjusted EBITDA1 of $200
million to $220 million, which
includes the impact from the 53rd week in the fiscal
2024 year2
- Capital expenditures of $120
million to $125 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 Adjusted net
income, adjusted EBITDA and adjusted earnings per diluted share are
non-GAAP financial measures. For definitions of these non-GAAP
measures and reconciliations of these non-GAAP measures to the most
directly comparable GAAP measures, please refer to the
Reconciliation of GAAP-Basis Operating Results to Non-GAAP
Operating Results section of this release.
|
|
2 The Company has
determined to provide guidance focused on adjusted EBITDA because
the Company believes it will be more useful to investors to
evaluate the Company's performance prior to the impact of
depreciation (given the expected increase in investments and the
resulting higher expected depreciation expense), taxes, closure and
impairment charges, and other items that management believes are
not reflective of the Company's current operations. The Company is
not able to reconcile the forward-looking estimate of adjusted
EBITDA set forth above to a forward-looking estimate of net income,
the most directly comparable estimated measure calculated in
accordance with GAAP, without unreasonable efforts because the
Company is unable to predict, forecast or determine the probable
significance of certain items impacting these estimates, including
interest expense, taxes, closure and impairment charges and
share-based compensation, with a reasonable degree of accuracy.
Accordingly, the most directly comparable forward-looking GAAP
estimate is not provided.
|
Fiscal 2024 Third 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 June 14, 2024.
About Cracker Barrel Old Country
Store®
Cracker Barrel Old Country Store,
Inc. (Nasdaq: CBRL) is on a mission to bring craveable, delicious
homestyle food and unique retail products to all guests while
serving up memorable, distinctive experiences that make everyone
feel welcome. Established in 1969 in Lebanon, Tenn., Cracker Barrel and its
affiliates operate approximately 660 company-owned Cracker Barrel
Old Country Store® locations in 44 states and own the fast-casual
Maple Street Biscuit Company. For more information about the
company, visit www.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, including the
Company's previously announced strategic transformation plan; 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 the Company's
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 the Company's filings
with the Securities and Exchange Commission, press releases, and
other communications. Any forward-looking statement made by the
Company herein, or elsewhere, speaks only as of the date on which
made. The Company expressly disclaims any intent, obligation or
undertaking to update or revise any forward-looking statements made
herein to reflect any change in the Company's 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)
|
|
|
Third Quarter
Ended
|
|
Nine Months
Ended
|
|
4/26/2024
|
4/28/2023
|
Percentage
Change
|
|
4/26/2024
|
4/28/2023
|
Percentage
Change
|
|
Total
revenue
|
$817,135
|
$832,689
|
(2 %)
|
|
$2,576,375
|
$2,606,076
|
(1 %)
|
|
Cost of goods sold
(exclusive of depreciation & rent)
|
245,070
|
262,191
|
(7)
|
|
815,480
|
870,286
|
(6)
|
|
Labor and other related
expenses
|
308,791
|
297,883
|
4
|
|
936,434
|
903,558
|
4
|
|
Other store operating
expenses
|
200,390
|
196,886
|
2
|
|
618,131
|
602,447
|
3
|
|
General and
administrative expenses
|
54,524
|
45,049
|
21
|
|
155,795
|
136,515
|
14
|
|
Impairment and store
closing costs
|
22,942
|
13,890
|
65
|
|
22,942
|
13,890
|
65
|
|
Goodwill
impairment
|
4,690
|
0
|
-
|
|
4,690
|
0
|
-
|
|
Operating income
(loss)
|
(19,272)
|
16,790
|
(215)
|
|
22,903
|
79,380
|
(71)
|
|
Interest
expense
|
5,187
|
4,536
|
14
|
|
15,192
|
12,476
|
22
|
|
Income (loss) before
income taxes
|
(24,459)
|
12,254
|
(300)
|
|
7,711
|
66,904
|
(88)
|
|
Provision for income
taxes (income tax benefit)
|
(15,260)
|
(1,714)
|
(790)
|
|
(15,080)
|
5,316
|
(384)
|
|
Net income
(loss)
|
($9,199)
|
$13,968
|
(166)
|
|
$22,791
|
$61,588
|
(63)
|
|
|
|
|
|
|
|
|
|
Earnings per share –
Basic:
|
($0.41)
|
$0.63
|
(165)
|
|
$1.03
|
$2.78
|
(63)
|
|
Earnings per share –
Diluted:
|
($0.41)
|
$0.63
|
(165)
|
|
$1.02
|
$2.77
|
(63)
|
|
|
|
|
|
|
|
|
|
Weighted average
shares:
|
|
|
|
|
|
|
|
|
Basic
|
22,201,964
|
22,152,002
|
0
|
|
22,188,191
|
22,173,019
|
0
|
|
Diluted
|
22,201,964
|
22,254,511
|
(0)
|
|
22,307,646
|
22,266,333
|
0
|
|
|
|
|
|
|
|
|
|
Ratio
Analysis
|
|
|
|
|
|
|
|
|
Total
revenue:
|
|
|
|
|
|
|
|
|
Restaurant
|
82.2 %
|
81.8 %
|
|
|
80.1 %
|
79.1 %
|
|
|
Retail
|
17.8
|
18.2
|
|
|
19.9
|
20.9
|
|
|
Total
revenue
|
100.0
|
100.0
|
|
|
100.0
|
100.0
|
|
|
Cost of goods sold
(exclusive of depreciation & rent)
|
30.0
|
31.5
|
|
|
31.7
|
33.4
|
|
|
Labor and other related
expenses
|
37.8
|
35.8
|
|
|
36.3
|
34.7
|
|
|
Other store operating
expenses
|
24.5
|
23.6
|
|
|
24.0
|
23.1
|
|
|
General and
administrative expenses
|
6.7
|
5.4
|
|
|
6.0
|
5.3
|
|
|
Impairment and store
closing costs
|
2.8
|
1.7
|
|
|
0.9
|
0.5
|
|
|
Goodwill
impairment
|
0.6
|
0.0
|
|
|
0.2
|
0.0
|
|
|
Operating income
(loss)
|
(2.4)
|
2.0
|
|
|
0.9
|
3.0
|
|
|
Interest
expense
|
0.6
|
0.5
|
|
|
0.6
|
0.4
|
|
|
Income (loss) before
income taxes
|
(3.0)
|
1.5
|
|
|
0.3
|
2.6
|
|
|
Provision for income
taxes (income tax benefit)
|
(1.9)
|
(0.2)
|
|
|
(0.6)
|
0.2
|
|
|
Net income
(loss)
|
(1.1 %)
|
1.7 %
|
|
|
0.9 %
|
2.4 %
|
|
|
CRACKER BARREL OLD
COUNTRY STORE, INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(Unaudited and in
thousands, except share amounts)
|
|
|
4/26/24
|
|
4/28/23
|
|
|
Assets
|
|
|
|
|
|
Cash and
cash equivalents
|
$11,852
|
|
$22,452
|
|
|
Accounts
receivable
|
34,847
|
|
32,086
|
|
|
Income taxes
receivable
|
21,661
|
|
2,820
|
|
|
Inventories
|
175,278
|
|
184,813
|
|
|
Prepaid
expenses and other current assets
|
35,365
|
|
30,861
|
|
|
Property
and equipment, net
|
944,859
|
|
963,565
|
|
|
Operating
lease right-of-use assets, net
|
860,879
|
|
903,435
|
|
|
Goodwill
|
0
|
|
4,690
|
|
|
Intangible
assets
|
24,480
|
|
22,090
|
|
|
Other
assets
|
47,872
|
|
46,657
|
|
|
Total assets
|
$2,157,093
|
|
$2,213,469
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
Accounts
payable
|
$137,672
|
|
$132,032
|
|
|
Other
current liabilities
|
308,535
|
|
317,191
|
|
|
Long-term
debt
|
472,216
|
|
444,545
|
|
|
Long-term
operating lease liabilities
|
681,272
|
|
711,199
|
|
|
Other
long-term obligations
|
130,841
|
|
134,634
|
|
|
Shareholders' equity, net
|
426,557
|
|
473,868
|
|
|
Total liabilities and shareholders' equity
|
$2,157,093
|
|
$2,213,469
|
|
|
|
|
|
|
|
Common shares issued
and outstanding
|
22,202,296
|
|
22,152,432
|
|
|
CRACKER BARREL OLD
COUNTRY STORE, INC.
CONDENSED
CONSOLIDATED CASH FLOW STATEMENT
(Unaudited and in
thousands)
|
|
Nine Months
Ended
|
|
4/26/24
|
|
4/28/23
|
|
Cash flows from
operating activities:
|
|
|
|
|
Net income
|
$22,791
|
|
$61,588
|
|
Depreciation and amortization
|
82,765
|
|
76,805
|
|
Amortization of debt issuance costs
|
1,312
|
|
1,296
|
|
Loss on disposition of property and equipment
|
8,860
|
|
4,793
|
|
Impairment
|
17,448
|
|
11,692
|
|
Goodwill
impairment
|
4,690
|
|
0
|
|
Share-based compensation
|
9,189
|
|
7,585
|
|
Noncash lease expense
|
45,050
|
|
44,727
|
|
Amortization of asset recognized from gain on sale and leaseback
transaction
|
9,551
|
|
9,551
|
|
Decrease in inventories
|
14,086
|
|
28,436
|
|
Decrease in accounts payable
|
(27,812)
|
|
(37,839)
|
|
Net changes in other assets and liabilities
|
(88,474)
|
|
(57,398)
|
|
Net cash provided by operating activities
|
99,456
|
|
151,236
|
|
Cash flows from
investing activities:
|
|
|
|
|
Purchase of property and equipment, net of insurance
recoveries
|
(80,081)
|
|
(86,898)
|
|
Proceeds from sale of property and equipment
|
131
|
|
250
|
|
Net cash used in investing activities
|
(79,950)
|
|
(86,648)
|
|
Cash flows from
financing activities:
|
|
|
|
|
Net proceeds under long-term debt
|
56,000
|
|
19,951
|
|
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
|
(87,204)
|
|
(87,343)
|
|
Net cash used in financing activities
|
(32,801)
|
|
(87,241)
|
|
|
|
|
|
Net decrease in cash
and cash equivalents
|
(13,295)
|
|
(22,653)
|
|
Cash and cash
equivalents, beginning of period
|
25,147
|
|
45,105
|
|
Cash and cash
equivalents, end of period
|
$11,852
|
|
$22,452
|
|
CRACKER BARREL OLD
COUNTRY STORE, INC.
Supplemental
Information
(Unaudited)
|
|
|
Third Quarter
Ended
|
|
|
4/26/24
|
|
4/28/23
|
|
|
Net Change in
Company-Owned Units During Quarter:
|
|
|
|
|
|
Cracker Barrel
|
(4)
|
|
(4)
|
|
|
Maple Street Biscuit
Company
|
0
|
|
0
|
|
|
Company-Owned Units in
Operation at End of Quarter:
|
|
|
|
|
|
Cracker Barrel
|
658
|
|
661
|
|
|
Maple Street Biscuit
Company
|
63
|
|
56
|
|
|
Third Quarter
Ended
|
|
Nine Months
Ended
|
|
4/26/24
|
|
4/28/23
|
|
4/26/24
|
|
4/28/23
|
|
Total revenue*: (In
thousands)
|
|
|
|
|
|
|
|
|
Restaurant
|
$654,410
|
|
$665,468
|
|
$2,013,609
|
|
$2,015,420
|
|
Retail
|
145,430
|
|
151,278
|
|
512,981
|
|
544,158
|
|
Total
revenue
|
$799,840
|
|
$816,746
|
|
$2,526,590
|
|
$2,559,578
|
|
|
|
|
|
|
|
|
|
Cost of goods sold*
(exclusive of depreciation and rent): (In thousands)
|
|
|
|
|
|
|
|
|
Restaurant
|
$169,373
|
|
$182,421
|
|
$540,553
|
|
$577,341
|
|
Retail
|
71,432
|
|
76,013
|
|
262,430
|
|
281,337
|
|
Total cost of goods
sold
|
$240,805
|
|
$258,434
|
|
$802,983
|
|
$858,678
|
|
|
|
|
|
|
|
|
|
Average unit
volume*: (In thousands)
|
|
|
|
|
|
|
|
|
Restaurant
|
$994.6
|
|
$1,003.0
|
|
$3,049.4
|
|
$3,035.3
|
|
Retail
|
221.0
|
|
228.0
|
|
776.8
|
|
819.5
|
|
Total
|
$1,215.6
|
|
$1,231.0
|
|
$3,826.2
|
|
$3,854.8
|
|
Operating
weeks*:
|
8,554
|
|
8,625
|
|
25,753
|
|
25,896
|
|
|
|
|
|
|
|
|
|
|
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 Net Income and Earnings Per Share
In the
accompanying press release, the Company makes reference to its
third quarter fiscal 2023 and fiscal 2024 adjusted net income
(loss) and earnings (loss) per share. The Company defines adjusted
net income (loss) as net income (loss), calculated in accordance
with GAAP, excluding, to the extent the following items occurred
during the periods presented: (i) impairment charges and store
closing costs, (ii) expenses related to the proxy contest and
settlement in connection with the Company's 2022 annual meeting of
shareholders, (iii) expenses related to the Company's CEO
transition, (iv) expenses associated with the Company's strategic
transformation initiative, (v) a corporate restructuring charge,
(vi) an employee benefits policy change, (vii) goodwill impairment
charges, and (viii) the related tax impacts of the foregoing. 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. The
Company calculates adjusted net income margin by dividing adjusted
net income by consolidated GAAP revenue. Beginning with the
Company's third quarter fiscal 2024, the Company is no longer
adjusting its non-GAAP financial measures for the non-cash
amortization of the asset recognized from the gains on sale and
leaseback transactions (approximately $3.2M in each fiscal quarter since the beginning
of fiscal 2021 and expected to remain at a similar level over the
remaining life of these leases). The Company believes this
modification to its adjusted net income definition will improve
comparability to similar measures presented by peers and enhance
investors' understanding of the Company's operating performance.
Prior period results have been restated in accordance with this
revised definition. This information is not intended to be
considered in isolation or as a substitute for net income (loss) or
earnings (loss) per share information prepared in accordance with
GAAP.
|
Third Quarter
Ended
|
Nine Months
Ended
|
|
|
4/26/24
|
Margin
|
|
4/28/23
|
Margin
|
|
4/26/24
|
Margin
|
|
4/28/23
|
Margin
|
|
|
Revenue
|
$817,135
|
100 %
|
|
$832,689
|
100 %
|
|
$2,576,375
|
100 %
|
|
$2,606,076
|
100 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
(loss)
|
($9,199)
|
(1.1)
|
|
$13,968
|
1.7
|
|
$22,791
|
0.9
|
|
$61,588
|
2.4
|
|
|
Expenses related to the
Company's CEO transition
|
3,465
|
0.4
|
|
0
|
0.0
|
|
8,574
|
0.3
|
|
0
|
0.0
|
|
|
Expenses associated
with a strategic transformation initiative
|
6,590
|
0.8
|
|
0
|
0.0
|
|
11,546
|
0.4
|
|
0
|
0.0
|
|
|
Employee benefits
policy change
|
0
|
0.0
|
|
0
|
0.0
|
|
(5,284)
|
(0.2)
|
|
0
|
0.0
|
|
|
Corporate restructuring
charge
|
0
|
0.0
|
|
0
|
0.0
|
|
1,643
|
0.1
|
|
0
|
0.0
|
|
|
Expenses related to the
proxy contest and settlement in connection
with the Company's 2022 annual meeting of shareholders
|
0
|
0.0
|
|
0
|
0.0
|
|
0
|
0.0
|
|
3,198
|
0.1
|
|
|
Impairment and store
closing costs
|
22,942
|
2.8
|
|
13,890
|
1.7
|
|
22,942
|
0.9
|
|
13,890
|
0.5
|
|
|
Goodwill
impairment
|
4,690
|
0.6
|
|
0
|
0.0
|
|
4,690
|
0.2
|
|
0
|
0.0
|
|
|
Tax impacts of the
foregoing
|
(8,856)
|
(1.1)
|
|
(3,264)
|
(0.4)
|
|
(10,366)
|
(0.4)
|
|
(4,016)
|
(0.2)
|
|
|
Adjusted net
income
|
$19,632
|
2.4 %
|
|
$24,594
|
3.0 %
|
|
$56,536
|
2.2 %
|
|
$74,660
|
2.9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Earnings per share
- basic
|
($0.41)
|
|
|
$0.63
|
|
|
$1.03
|
|
$2.78
|
|
|
|
|
GAAP Earnings per share
- diluted
|
($0.41)
|
|
|
$0.63
|
|
|
$1.02
|
|
$2.77
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Earnings per
share - basic
|
$0.88
|
|
|
$1.11
|
|
|
$2.55
|
|
$3.37
|
|
|
|
|
Adjusted Earnings per
share - diluted
|
$0.88
|
|
|
$1.11
|
|
|
$2.53
|
|
$3.35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
- basic
|
22,201,964
|
|
|
22,152,002
|
|
|
22,188,191
|
|
22,173,019
|
|
|
|
|
Weighted average shares
- diluted
|
22,201,964
|
|
|
22,254,511
|
|
|
22,307,646
|
|
22,266,333
|
|
|
|
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 and the below reconciliation tables, the
Company makes reference to EBITDA and adjusted EBITDA. The Company
defines EBITDA as net income (loss), calculated in accordance with
GAAP, excluding depreciation and amortization, interest expense and
tax expense. The Company further adjusts EBITDA to exclude, to the
extent the following items occurred during the periods presented:
(i) expenses related to share-based compensation, (ii) impairment
charges and store closing costs, (iii) the proxy contest and
settlement in connection with the Company's 2022 annual meeting of
shareholders, (iv) goodwill impairment charges, (v) the Company's
CEO transition, (vi) expenses associated with the Company's
strategic transformation initiative, (vii) a corporate
restructuring charge, and (viii) an employee benefits policy
change. Beginning with the Company's third quarter fiscal 2024, the
Company includes an adjustment for share-based compensation expense
in its adjusted EBITDA definition, and the Company is no longer
adjusting EBITDA for the non-cash amortization of the asset
recognized from the gains on sale and leaseback transactions
(approximately $3.2M in each fiscal
quarter since the beginning of fiscal 2021 and expected to remain
at a similar level over the remaining life of these leases). The
Company believes these modifications to its calculation of EBITDA
and Adjusted EBITDA will improve comparability to similar measures
presented by peers and enhance investors' understanding of the
Company's operating performance. The Company calculates EBITDA and
adjusted EBITDA margin by dividing EBITDA and adjusted EBITDA by
consolidated GAAP revenue. Prior period results have been restated
in accordance with these revised definitions. The Company believes
that presentation of EBITDA and adjusted EBITDA (together with
related margin figures) 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 (loss), 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 (loss) or net income (loss) margin
prepared in accordance with GAAP.
|
Third Quarter
Ended
April 26, 2024
|
Margin
|
|
Nine Months
Ended
April 26, 2024
|
Margin
|
|
Revenue
|
$817,135
|
100 %
|
|
$2,576,375
|
100 %
|
|
|
|
|
|
|
|
GAAP Net income
(loss)
|
($9,199)
|
(1.1)
|
|
$22,791
|
0.9
|
|
(+) Depreciation
& amortization
|
28,337
|
3.5
|
|
82,765
|
3.2
|
|
(+) Interest
expense
|
5,187
|
0.6
|
|
15,192
|
0.6
|
|
(+) Tax expense
(tax benefit)
|
(15,260)
|
(1.9)
|
|
(15,080)
|
(0.6)
|
|
EBITDA
|
$9,065
|
1.1 %
|
|
$105,668
|
4.1 %
|
|
Adjustments
|
|
|
|
|
|
|
(+) CEO
transition expenses
|
3,465
|
0.4
|
|
8,574
|
0.3
|
|
(+) Strategic
transformation initiative expenses
|
6,590
|
0.8
|
|
11,546
|
0.4
|
|
(+) Corporate
restructuring charge including separation with executive
|
0
|
0.0
|
|
1,643
|
0.1
|
|
(+) Share-based
compensation, net
|
1,187
|
0.1
|
|
4,475
|
0.2
|
|
(-) Employee
benefits policy change
|
0
|
0.0
|
|
(5,284)
|
(0.2)
|
|
(+) Impairment
and store closing costs
|
22,942
|
2.8
|
|
22,942
|
0.9
|
|
(+) Goodwill
impairment
|
4,690
|
0.6
|
|
4,690
|
0.2
|
|
Adjusted
EBITDA
|
$47,939
|
5.9 %
|
|
$154,254
|
6.0 %
|
|
|
|
|
Third Quarter
Ended
April 28, 2023
|
Margin
|
|
Nine Months
Ended
April 28, 2023
|
Margin
|
|
Revenue
|
|
|
|
$832,689
|
100 %
|
|
$2,606,076
|
100 %
|
|
|
|
|
|
|
|
|
|
|
GAAP Net
income
|
|
|
|
$13,968
|
1.7
|
|
$61,588
|
2.4
|
|
(+) Depreciation
& amortization
|
|
|
|
26,444
|
3.2
|
|
76,805
|
2.9
|
|
(+) Interest
expense
|
|
|
|
4,536
|
0.5
|
|
12,476
|
0.5
|
|
(+) Tax expense
(tax benefit)
|
|
|
|
(1,714)
|
(0.2)
|
|
5,316
|
0.2
|
|
EBITDA
|
|
|
|
$43,234
|
5.2 %
|
|
$156,185
|
6.0 %
|
|
Adjustments
|
|
|
|
|
|
|
|
|
|
(+) Share-based
compensation
|
|
|
|
2,474
|
0.3
|
|
7,585
|
0.3
|
|
(+) Impairment
and store closing costs
|
|
|
|
13,890
|
1.7
|
|
13,890
|
0.5
|
|
(+) Proxy contest
and settlement expenses
|
|
|
|
0
|
0.0
|
|
3,198
|
0.1
|
|
Adjusted
EBITDA
|
|
|
|
$59,598
|
7.2 %
|
|
$180,858
|
6.9 %
|
|
|
|
|
|
|
|
|
|
|
CRACKER BARREL OLD COUNTRY STORE,
INC.
Reconciliation of GAAP-Basis Operating Results to
Non-GAAP Operating Results
(Unaudited and in
thousands)
EBITDA/Adjusted EBITDA
The Company
believes that it is beneficial to investors to recast its
calculation of EBITDA and adjusted EBITDA for each completed
quarter in the period beginning with the Company's first quarter
fiscal 2023 through the Company's second fiscal quarter 2024, to
enhance comparability of EBITDA and adjusted EBITDA calculated
under the Company's modified definitions with the Company's
historical results. The Company believes that the presentation of
these non-GAAP financial measures, when combined with the primary
presentation of net income (loss) calculated in accordance with
GAAP, will enhance investors' understanding of the Company's
operating performance. This information is not intended to be
considered in isolation or as a substitute for net income (loss) or
net income (loss) margin calculated in accordance with GAAP.
|
Three Months
Ended
|
|
4/26/24
|
1/26/24
|
10/27/23
|
07/28/23
|
4/28/23
|
1/27/23
|
10/28/22
|
|
Revenue
|
$817,135
|
$935,401
|
$823,839
|
$836,732
|
$832,689
|
$933,868
|
$839,519
|
|
|
|
|
|
|
|
|
|
GAAP Net income
(loss)
|
($9,199)
|
$26,534
|
$5,456
|
$37,462
|
$13,968
|
$30,491
|
$17,129
|
|
(+) Depreciation
& amortization
|
28,337
|
27,759
|
26,669
|
27,680
|
26,444
|
25,570
|
24,791
|
|
(+) Interest
expense
|
5,187
|
5,067
|
4,938
|
4,530
|
4,536
|
4,408
|
3,532
|
|
(+) Tax expense
(income tax benefit)
|
(15,260)
|
(839)
|
1,019
|
(755)
|
(1,714)
|
4,072
|
2,958
|
|
EBITDA
|
$9,065
|
$58,521
|
$38,082
|
$68,917
|
$43,234
|
$64,541
|
$48,410
|
|
Adjustments
|
|
|
|
|
|
|
|
|
(+) CEO
transition expenses
|
3,465
|
3,473
|
1,636
|
0
|
0
|
0
|
0
|
|
(+) Strategic
transformation initiative expenses
|
6,590
|
3,815
|
1,141
|
0
|
0
|
0
|
0
|
|
(+) Corporate
restructuring charge including separation with executive
|
0
|
0
|
1,643
|
0
|
0
|
0
|
0
|
|
(+) Employee
benefit adjustment
|
0
|
(5,284)
|
0
|
0
|
0
|
0
|
0
|
|
(+) Share-based
compensation, net
|
1,187
|
1,893
|
1,395
|
1,460
|
2,474
|
2,689
|
2,422
|
|
(+) Impairment
and store closing costs
|
22,942
|
0
|
0
|
0
|
13,890
|
0
|
0
|
|
(+) Goodwill
impairment
|
4,690
|
0
|
0
|
0
|
0
|
0
|
0
|
|
(+) Proxy contest
and settlement expenses
|
0
|
0
|
0
|
0
|
0
|
0
|
3,198
|
|
Adjusted
EBITDA
|
$47,939
|
$62,418
|
$43,897
|
$70,377
|
$59,598
|
$67,230
|
$54,030
|
|
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-third-quarter-fiscal-2024-results-302158591.html
SOURCE Cracker Barrel Old Country Store, Inc.