HOUSTON, June 3, 2020 /PRNewswire/ -- Luby's, Inc.
(NYSE: LUB) ("Luby's") today announced unaudited financial results
for its twelve-week second quarter fiscal 2020 ended March 11, 2020, referred to as "second
quarter." Comparisons in this earnings release are for the
second quarter compared to the twelve-week second quarter fiscal
2019.
Same-Store Sales Year-over-Year Comparison:
|
Q1 2020
|
Q2 2020
|
YTD
Q2 2020
|
Luby's
Cafeterias
|
1.7%
|
1.3
|
%
|
1.5
|
%
|
Fuddruckers
|
0.1%
|
0.4
|
%
|
0.2
|
%
|
Combo locations
(1)
|
6.6%
|
6.8
|
%
|
6.7
|
%
|
Cheeseburger in
Paradise
|
(1.0)%
|
9.4
|
%
|
3.2
|
%
|
Total same-store
sales (2)
|
1.7%
|
1.6
|
%
|
1.7
|
%
|
|
|
(1)
|
Combo locations
consist of a side-by-side Luby's Cafeteria and Fuddruckers
Restaurant at one property location.
|
(2)
|
Luby's includes a
restaurant's sales results into the same-store sales calculation in
the quarter after that store has been open for six complete
consecutive quarters. In the second quarter, there were 72 Luby's
Cafeterias locations, 33 Fuddruckers locations, all six Combo
locations, and one Cheeseburger in Paradise location that met the
definition of same-stores.
|
Second Quarter Restaurant Sales:
($ thousands)
Restaurant
Brand
|
Q2 2020
|
Q2 2019
|
Change ($)
|
Change (%)
|
Luby's
Cafeterias
|
$
|
43,302
|
|
$
|
44,266
|
|
$
|
(964)
|
|
(2.2)
|
%
|
Combo
locations
|
4,653
|
|
4,355
|
|
298
|
|
6.8
|
%
|
Luby's cafeteria
segment
|
47,955
|
|
48,621
|
|
(666)
|
|
(1.4)
|
%
|
Fuddruckers
restaurants segment
|
11,789
|
|
16,156
|
|
(4,367)
|
|
(27.0)
|
%
|
Cheeseburger in
Paradise segment
|
647
|
|
592
|
|
55
|
|
9.3
|
%
|
Total Restaurant
Sales
|
$
|
60,391
|
|
$
|
65,369
|
|
$
|
(4,978)
|
|
(7.6)
|
%
|
|
Note:
Luby's Cafeterias store count reduced from 76 at Q2 2019
start to 72 at Q2 2020 end; Fuddruckers store count reduced from 51
at Q2 2019 start to 33 at Q2 2020 end; Combo location count at six
(12 restaurants) at Q2 2019 start and at Q2 2020 end; Cheeseburger
in Paradise store count at one at Q2 2019 and at Q2 2020
end.
|
Restaurant Counts:
|
August 28,
2019
|
|
FY20 YTDQ2
Openings
|
|
FY20 YTDQ2
Closings
|
|
March 11,
2020
|
Luby's
Cafeterias(1)
|
79
|
|
|
—
|
|
|
(1)
|
|
|
78
|
|
Fuddruckers
Restaurants(1)
|
44
|
|
|
—
|
|
|
(5)
|
|
|
39
|
|
Cheeseburger in
Paradise
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
Total
|
124
|
|
|
—
|
|
|
(6)
|
|
|
118
|
|
|
|
(1)
|
Includes 6
restaurants that are part of Combo locations
|
Comments related to COVID-19:
After the end of our fiscal second quarter, the spread of the
COVID-19 pandemic has affected the United
States economy, our operations and those of third parties on
which we rely. Beginning on March 17,
2020, we began suspending on-premise dining at our
restaurants and substantially all employees at those locations
were placed on furlough. By March 31, 2020 we had suspended
on-premise dining at all 118 of our company-owned restaurants and
had suspended all operations at 50 of our Luby's Cafeteria's, 36
company-owned Fuddruckers restaurants and our one Cheeseburger in
Paradise restaurant. The 28 Luby's Cafeteria's and 3 Fuddruckers
restaurants that remained open were providing take-out,
drive-through and curbside pickup, or delivery with reduced
operating hours and on-site staff. In addition, more than 50
percent of our general and administrative staff were placed on
furlough and salaries were temporarily reduced by 50 percent for
the remaining general and administrative staff and other salaried
employees, including all senior management. Furthermore, our
franchise owners suspended operations or moved to limited
food-to-go operations at their locations, reducing the number of
franchise locations in operation to 37 by early April 2020 from 90 prior to the COVID-19
pandemic.
Beginning in May 2020, we began to
gradually reopen the dining rooms with state-mandated limits on
guest capacity at the 28 Luby's locations and 3 Fuddruckers
locations that had been previously operating with food-to-go
service only. We also began to reopen restaurants that were
temporarily closed. As of the date of this release, there were 31
Luby's Cafeteria's and 8 Fuddruckers restaurants operating,
all of which had their dining rooms open at limited capacity; these
restaurants were operating at approximately 75% of their
pre-pandemic weekly sales levels. Additionally, there were 59
franchise locations in operation as of the date of this
release.
The full extent and duration of the impact of the COVID-19
pandemic on our operations and financial performance is currently
unknown, and depends on future developments that are uncertain and
unpredictable, including the duration of the spread of the
pandemic, its impact of capital and financial markets on a
macro-scale and any new information that may emerge concerning the
severity of the virus, its spread to other regions, the actions to
contain the virus or treat its impact, and consumer attitudes and
behaviors, among others.
In response to the changed operating environment from the
COVID-19 pandemic, we took the following actions to minimize the
financial impact and preserve the prospects for emerging from this
unprecedented period.
- We revamped restaurant operations to generate cost efficiencies
resulting in higher restaurant operating margins even if sales
levels do not return to pre-COVID-19 pandemic levels. As the
restaurants adapted to the new operating environment, a lower cost
labor model was deployed, food costs declined as menu offerings
were concentrated among the historically top selling items, and
various restaurant service and supplier costs were
reevaluated.
- We began restructuring corporate overhead earlier in calendar
2020 prior to the pandemic, including a transition to a 3rd party
provider for certain accounting and payroll function. Significant
further restructuring took place in April and May of 2020, as we
reviewed all corporate service providers, information technology
needs, and personnel requirements to support a reduced level of
operations going forward.
- We obtained a $10.0 million
"Payroll Protection Program" loan under the Coronavirus Aid, Relief
and Economic Security Act which was necessary for funding
continuing operations. We believe that a portion of the loan will
be eligible for forgiveness; however, that amount cannot currently
be calculated.
- We continued efforts to close real estate sales transactions
with anticipated aggregate sales proceeds in excess of $20.0 million prior to the end of fiscal 2020. In
addition, the Company has identified other real estate properties
that may be sold to generate funds for ongoing operations.
About Luby's
Luby's, Inc. (NYSE: LUB) operates 118 restaurants nationally as
of March 11, 2020: 78 Luby's Cafeterias, 39 Fuddruckers, one
Cheeseburger in Paradise restaurants. Luby's is the franchisor for
90 Fuddruckers franchise locations across the United States (including Puerto Rico), Canada, Mexico, Colombia, and Panama. Luby's Culinary Contract Services
provides food service management to 28 sites consisting of
healthcare, corporate dining locations, sports stadiums, and sales
through retail grocery stores.
This press release contains statements that are
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. All statements
contained in this press release, other than statements of
historical fact, are "forward-looking statements" for purposes of
these provisions, including the statements under the caption
"Outlook" and any other statements regarding scheduled openings of
units, scheduled closures of units, sales of assets, expected
proceeds from the sale of assets, expected levels of capital
expenditures, effects of food commodity costs, anticipated
financial results in future periods and expectations of industry
conditions.
Luby's cautions readers that various factors could cause its
actual financial and operational results to differ materially from
those indicated by forward-looking statements made from
time-to-time in news releases, reports, proxy statements,
registration statements, and other written communications, as well
as oral statements made from time to time by representatives of
Luby's. The following factors, as well as any other cautionary
language included in this press release, provide examples of risks,
uncertainties and events that may cause Luby's actual results to
differ materially from the expectations Luby's describes in such
forward-looking statements: general business and economic
conditions; the impact of competition; our operating initiatives;
fluctuations in the costs of commodities, including beef, poultry,
seafood, dairy, cheese and produce; increases in utility costs,
including the costs of natural gas and other energy supplies;
changes in the availability and cost of labor; the seasonality of
Luby's business; changes in governmental regulations, including
changes in minimum wages; the effects of inflation; the
availability of credit; unfavorable publicity relating to
operations, including publicity concerning food quality, illness or
other health concerns or labor relations; the continued service of
key management personnel; and other risks and uncertainties
disclosed in Luby's annual reports on Form 10-K and quarterly
reports on Form 10-Q.
For additional information contact:
Dennard-Lascar Investor Relations
Rick Black / Ken Dennard
Investor Relations
713-529-6600
Luby's,
Inc.
|
Consolidated
Statements of Operations (unaudited)
|
(In thousands,
except per share data)
|
|
|
Quarter
Ended
|
|
Two Quarters
Ended
|
|
March
11,
2020
|
|
March
13,
2019
|
|
March
11,
2020
|
|
March
13,
2019
|
|
(12
weeks)
|
|
(12
weeks)
|
|
(28
weeks)
|
|
(28
weeks)
|
SALES:
|
|
|
|
|
|
|
|
Restaurant
sales
|
$
|
60,391
|
|
|
$
|
65,369
|
|
|
$
|
143,949
|
|
|
$
|
156,468
|
|
Culinary contract
services
|
6,998
|
|
|
7,543
|
|
|
16,772
|
|
|
17,039
|
|
Franchise
revenue
|
1,158
|
|
|
1,421
|
|
|
2,865
|
|
|
3,644
|
|
Vending
revenue
|
14
|
|
|
90
|
|
|
124
|
|
|
190
|
|
TOTAL
SALES
|
68,561
|
|
|
74,423
|
|
|
163,710
|
|
|
177,341
|
|
COSTS AND
EXPENSES:
|
|
|
|
|
|
|
|
Cost of
food
|
17,399
|
|
|
18,145
|
|
|
41,341
|
|
|
43,226
|
|
Payroll and related
costs
|
23,782
|
|
|
24,730
|
|
|
55,915
|
|
|
59,244
|
|
Other operating
expenses
|
10,065
|
|
|
11,412
|
|
|
24,860
|
|
|
27,914
|
|
Occupancy
costs
|
3,783
|
|
|
4,166
|
|
|
8,773
|
|
|
10,041
|
|
Opening
costs
|
2
|
|
|
11
|
|
|
14
|
|
|
44
|
|
Cost of culinary
contract services
|
6,400
|
|
|
6,717
|
|
|
15,348
|
|
|
15,532
|
|
Cost of franchise
operations
|
409
|
|
|
247
|
|
|
974
|
|
|
519
|
|
Depreciation and
amortization
|
2,677
|
|
|
3,222
|
|
|
6,440
|
|
|
8,126
|
|
Selling, general and
administrative expenses
|
6,816
|
|
|
7,753
|
|
|
16,974
|
|
|
17,763
|
|
Other
Charges
|
1,509
|
|
|
1,263
|
|
|
2,748
|
|
|
2,477
|
|
Provision for asset
impairments and restaurant closings
|
661
|
|
|
1,195
|
|
|
1,770
|
|
|
2,422
|
|
Net gain on
disposition of property and equipment
|
(2,527)
|
|
|
(12,651)
|
|
|
(2,498)
|
|
|
(12,501)
|
|
Total costs and
expenses
|
70,976
|
|
|
66,210
|
|
|
172,659
|
|
|
174,807
|
|
INCOME (LOSS) FROM
OPERATIONS
|
(2,415)
|
|
|
8,213
|
|
|
(8,949)
|
|
|
2,534
|
|
Interest
income
|
5
|
|
|
19
|
|
|
28
|
|
|
19
|
|
Interest
expense
|
(1,473)
|
|
|
(1,554)
|
|
|
(3,435)
|
|
|
(3,269)
|
|
Other income,
net
|
148
|
|
|
55
|
|
|
388
|
|
|
86
|
|
Income (loss) before
income taxes and discontinued operations
|
(3,735)
|
|
|
6,733
|
|
|
(11,968)
|
|
|
(630)
|
|
Provision for income
taxes
|
62
|
|
|
93
|
|
|
156
|
|
|
213
|
|
Income (loss) from
continuing operations
|
(3,797)
|
|
|
6,640
|
|
|
(12,124)
|
|
|
(843)
|
|
Loss from
discontinued operations, net of income taxes
|
(6)
|
|
|
(8)
|
|
|
(17)
|
|
|
(13)
|
|
NET INCOME
(LOSS)
|
$
|
(3,803)
|
|
|
$
|
6,632
|
|
|
$
|
(12,141)
|
|
|
$
|
(856)
|
|
Income (loss) per
share from continuing operations:
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.13)
|
|
|
$
|
0.22
|
|
|
$
|
(0.40)
|
|
|
$
|
(0.03)
|
|
Assuming
dilution
|
$
|
(0.13)
|
|
|
$
|
0.22
|
|
|
$
|
(0.40)
|
|
|
$
|
(0.03)
|
|
Loss per share from
discontinued operations:
|
|
|
|
|
|
|
|
Basic
|
$
|
0.00
|
|
|
$
|
0.00
|
|
|
$
|
0.00
|
|
|
$
|
0.00
|
|
Assuming
dilution
|
$
|
0.00
|
|
|
$
|
0.00
|
|
|
$
|
0.00
|
|
|
$
|
0.00
|
|
Net income (loss) per
share:
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.13)
|
|
|
$
|
0.22
|
|
|
$
|
(0.40)
|
|
|
$
|
(0.03)
|
|
Assuming
dilution
|
$
|
(0.13)
|
|
|
$
|
0.22
|
|
|
$
|
(0.40)
|
|
|
$
|
(0.03)
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
30,215
|
|
|
29,769
|
|
|
30,123
|
|
|
29,671
|
|
Assuming
dilution
|
30,215
|
|
|
29,799
|
|
|
30,123
|
|
|
29,671
|
|
The following table contains information derived from the
Company's Consolidated Statements of Operations expressed as a
percentage of sales. Percentages may not total due to rounding.
|
Quarter
Ended
|
|
Two Quarters
Ended
|
|
March
11,
2020
|
|
March
13,
2019
|
|
March
11,
2020
|
|
March
13,
2019
|
|
(12
weeks)
|
|
(12
weeks)
|
|
(28
weeks)
|
|
(28
weeks)
|
|
|
|
|
|
|
|
|
Restaurant
sales
|
88.1
|
%
|
|
87.8
|
%
|
|
87.9
|
%
|
|
88.2
|
%
|
Culinary contract
services
|
10.2
|
%
|
|
10.1
|
%
|
|
10.2
|
%
|
|
9.6
|
%
|
Franchise
revenue
|
1.7
|
%
|
|
1.9
|
%
|
|
1.8
|
%
|
|
2.1
|
%
|
Vending
revenue
|
0.0
|
%
|
|
0.1
|
%
|
|
0.1
|
%
|
|
0.1
|
%
|
TOTAL
SALES
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
COSTS AND
EXPENSES:
|
|
|
|
|
|
|
|
(As a percentage
of restaurant sales)
|
|
|
|
|
|
|
|
Cost of
food
|
28.8
|
%
|
|
27.8
|
%
|
|
28.7
|
%
|
|
27.6
|
%
|
Payroll and related
costs
|
39.4
|
%
|
|
37.8
|
%
|
|
38.8
|
%
|
|
37.9
|
%
|
Other operating
expenses
|
16.7
|
%
|
|
17.5
|
%
|
|
17.3
|
%
|
|
17.8
|
%
|
Occupancy
costs
|
6.3
|
%
|
|
6.4
|
%
|
|
6.1
|
%
|
|
6.4
|
%
|
Vending
revenue
|
0.0
|
%
|
|
(0.1)
|
%
|
|
(0.1)
|
%
|
|
(0.1)
|
%
|
Store level
profit
|
8.9
|
%
|
|
10.7
|
%
|
|
9.2
|
%
|
|
10.4
|
%
|
|
|
|
|
|
|
|
|
(As a percentage
of total sales)
|
|
|
|
|
|
|
|
General and
administrative expenses
|
7.8
|
%
|
|
9.4
|
%
|
|
8.5
|
%
|
|
9.0
|
%
|
Marketing and
advertising expenses
|
2.1
|
%
|
|
1.0
|
%
|
|
1.9
|
%
|
|
1.0
|
%
|
Selling, general and
administrative expenses
|
9.9
|
%
|
|
10.4
|
%
|
|
10.4
|
%
|
|
10.0
|
%
|
Luby's,
Inc.
|
Consolidated
Balance Sheets
|
(In thousands,
except per share data)
|
|
|
March
11,
2020
|
|
August
28,
2019
|
|
(Unaudited)
|
|
|
|
|
|
|
ASSETS
|
|
|
|
Current
Assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
7,080
|
|
|
$
|
3,640
|
|
Restricted cash and
cash equivalents
|
8,704
|
|
|
9,116
|
|
Trade accounts and
other receivables, net
|
8,413
|
|
|
8,852
|
|
Food and supply
inventories
|
2,392
|
|
|
3,432
|
|
Prepaid
expenses
|
1,970
|
|
|
2,355
|
|
Total current
assets
|
28,559
|
|
|
27,395
|
|
Property held for
sale
|
13,770
|
|
|
16,488
|
|
Assets related to
discontinued operations
|
1,813
|
|
|
1,813
|
|
Property and
equipment, net
|
117,430
|
|
|
121,743
|
|
Intangible assets,
net
|
16,025
|
|
|
16,781
|
|
Goodwill
|
514
|
|
|
514
|
|
Operating lease
right-of-use assets
|
24,296
|
|
|
—
|
|
Other
assets
|
890
|
|
|
1,266
|
|
Total
assets
|
$
|
203,297
|
|
|
$
|
186,000
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Current
Liabilities:
|
|
|
|
Accounts
payable
|
$
|
7,945
|
|
|
$
|
8,465
|
|
Liabilities related to
discontinued operations
|
5
|
|
|
14
|
|
Current portion of
credit facility debt
|
2,567
|
|
|
—
|
|
Operating lease
liabilities-current
|
5,916
|
|
|
—
|
|
Accrued expenses and
other liabilities
|
24,015
|
|
|
24,475
|
|
Total current
liabilities
|
40,448
|
|
|
32,954
|
|
Credit facility debt,
less current portion
|
48,268
|
|
|
45,439
|
|
Operating lease
liabilities-noncurrent
|
23,047
|
|
|
—
|
|
Other
liabilities
|
922
|
|
|
6,577
|
|
Total
liabilities
|
$
|
112,685
|
|
|
$
|
84,970
|
|
Commitments and
Contingencies
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
Common stock, 0.32
par value; 100,000,000 shares authorized; shares issued were
30,751,629 and 30,478,972; and shares outstanding were 30,251,629
and 29,978,972, at March 11, 2020 and August 28, 2019,
respectively
|
9,841
|
|
|
9,753
|
|
Paid-in
capital
|
35,478
|
|
|
34,870
|
|
Retained
earnings
|
50,068
|
|
|
61,182
|
|
Less cost of treasury
stock, 500,000 shares
|
(4,775)
|
|
|
(4,775)
|
|
Total shareholders'
equity
|
90,612
|
|
|
101,030
|
|
Total liabilities and
shareholders' equity
|
$
|
203,297
|
|
|
$
|
186,000
|
|
Luby's,
Inc.
|
Consolidated
Statements of Cash Flows (unaudited)
|
(In
thousands)
|
|
|
Quarter
Ended
|
|
March
11,
2020
|
|
March
13,
2019
|
|
(28
weeks)
|
|
(28
weeks)
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
Net loss
|
$
|
(12,141)
|
|
|
$
|
(856)
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
Provision for asset
impairments and net (gains) losses on property sales
|
(727)
|
|
|
(10,079)
|
|
Depreciation and
amortization
|
6,440
|
|
|
8,126
|
|
Amortization of debt
issuance cost
|
577
|
|
|
811
|
|
Share-based
compensation expense
|
732
|
|
|
823
|
|
Cash used in
operating activities before changes in operating assets and
liabilities
|
(5,119)
|
|
|
(1,175)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
Decrease (increase) in
trade accounts and other receivables
|
509
|
|
|
(414)
|
|
Increase in food and
supply inventories
|
(94)
|
|
|
(45)
|
|
Decrease in prepaid
expenses and other assets
|
197
|
|
|
1,115
|
|
Decrease in operating
lease assets
|
2,407
|
|
|
—
|
|
Decrease in operating
lease liabilities
|
(3,541)
|
|
|
—
|
|
Decrease in accounts
payable, accrued expenses and other liabilities
|
(263)
|
|
|
(7,110)
|
|
Net cash used in
operating activities
|
(5,904)
|
|
|
(7,629)
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
Proceeds from disposal
of assets and property held for sale
|
5,453
|
|
|
20,444
|
|
Purchases of property
and equipment
|
(1,490)
|
|
|
(1,781)
|
|
Net cash provided by
investing activities
|
3,963
|
|
|
18,663
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
Revolver
borrowings
|
3,300
|
|
|
34,500
|
|
Revolver
repayments
|
—
|
|
|
(54,500)
|
|
Proceeds from term
loan
|
2,500
|
|
|
58,400
|
|
Term loan
repayments
|
(831)
|
|
|
(35,169)
|
|
Debt issuance
costs
|
—
|
|
|
(3,236)
|
|
Taxes paid on equity
withheld
|
—
|
|
|
(12)
|
|
Net cash provided by
(used in) financing activities
|
4,969
|
|
|
(17)
|
|
Net increase in cash
and cash equivalents and restricted cash
|
3,028
|
|
|
11,017
|
|
Cash and cash
equivalents and restricted cash at beginning of period
|
12,756
|
|
|
3,722
|
|
Cash and cash
equivalents and restricted cash at end of period
|
$
|
15,784
|
|
|
$
|
14,739
|
|
Cash paid
for:
|
|
|
|
Income taxes, net of
(refunds)
|
$
|
7
|
|
|
$
|
51
|
|
Interest
|
2,647
|
|
|
1,951
|
|
Store Level Profit
Although store level profit, defined as restaurant sales plus
vending revenue, less cost of food, payroll and related costs,
other operating expenses, and occupancy costs, is a non-GAAP
measure, we believe its presentation is useful because it
explicitly shows the results of our most significant reportable
segments. The following table reconciles between store level
profit, a non-GAAP measure to loss from continuing operations, a
GAAP measure:
($
thousands)
|
Quarter
Ended
|
|
Two Quarters
Ended
|
|
March
11,
2020
|
|
March
13,
2019
|
|
March
11,
2020
|
|
March
13,
2019
|
|
(12
weeks)
|
|
(12
weeks)
|
|
(28
weeks)
|
|
(28
weeks)
|
|
|
|
|
|
|
|
|
Store level
profit
|
$
|
5,376
|
|
|
$
|
7,006
|
|
|
$
|
13,184
|
|
|
$
|
16,233
|
|
|
|
|
|
|
|
|
|
Plus:
|
|
|
|
|
|
|
|
Sales from culinary
contract services
|
6,998
|
|
|
7,543
|
|
|
16,772
|
|
|
17,039
|
|
Sales from franchise
operations
|
1,158
|
|
|
1,421
|
|
|
2,865
|
|
|
3,644
|
|
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
|
|
Opening
costs
|
2
|
|
|
11
|
|
|
14
|
|
|
44
|
|
Cost of culinary
contract services
|
6,400
|
|
|
6,717
|
|
|
15,348
|
|
|
15,532
|
|
Cost of franchise
operations
|
409
|
|
|
247
|
|
|
974
|
|
|
519
|
|
Depreciation and
amortization
|
2,677
|
|
|
3,222
|
|
|
6,440
|
|
|
8,126
|
|
Selling, general and
administrative expenses
|
6,816
|
|
|
7,753
|
|
|
16,974
|
|
|
17,763
|
|
Other
Charges
|
1,509
|
|
|
1,263
|
|
|
2,748
|
|
|
2,477
|
|
Provision for asset
impairments and restaurant closings
|
661
|
|
|
1,195
|
|
|
1,770
|
|
|
2,422
|
|
Net gain on
disposition of property and equipment
|
(2,527)
|
|
|
(12,651)
|
|
|
(2,498)
|
|
|
(12,501)
|
|
Interest
income
|
(5)
|
|
|
(19)
|
|
|
(28)
|
|
|
(19)
|
|
Interest
expense
|
1,473
|
|
|
1,554
|
|
|
3,435
|
|
|
3,269
|
|
Other income,
net
|
(148)
|
|
|
(55)
|
|
|
(388)
|
|
|
(86)
|
|
Provision for income
taxes
|
62
|
|
|
93
|
|
|
156
|
|
|
213
|
|
Income (loss) from
continuing operations
|
$
|
(3,797)
|
|
|
$
|
6,640
|
|
|
$
|
(12,124)
|
|
|
$
|
(843)
|
|
Adjusted EBITDA
Adjusted EBITDA is defined as income (loss) from continuing
operations before interest, provision (benefit) for income taxes,
and depreciation and amortization, and excluding net loss (gain) on
disposing of property and equipment, provision for asset
impairments and restaurant closings, other charges, non-cash
compensation expense, franchise taxes, and decrease / (increase) in
fair value of derivatives.
Adjusted EBITDA is intended as a supplemental measure of our
performance that is not required by, or presented in accordance
with GAAP. We believe Adjusted EBITDA provides useful
information to management and investors in valuing the Company and
evaluating ongoing operating results and trends and in comparing
our results to other competitors. Our management uses Adjusted
EBITDA in evaluating management's performance when determining
incentive compensation.
Adjusted EBITDA, as defined, may not be comparable to other
similarly titled measures as computed by other companies. These
measures should be considered supplemental and not a substitute or
superior to other GAAP performance measures.
($
thousands)
|
Quarter
Ended
|
|
Two Quarters
Ended
|
|
March
11,
2020
|
|
March
13,
2019
|
|
March
11,
2020
|
|
March
13,
2019
|
|
(12
weeks)
|
|
(12
weeks)
|
|
(28
weeks)
|
|
(28
weeks)
|
Income (loss) from
continuing operations
|
$
|
(3,797)
|
|
|
$
|
6,640
|
|
|
(12,124)
|
|
|
(843)
|
|
Depreciation and
amortization
|
2,677
|
|
|
3,222
|
|
|
6,440
|
|
|
8,126
|
|
Provision for income
taxes
|
62
|
|
|
93
|
|
|
$
|
156
|
|
|
$
|
213
|
|
Interest
expense
|
1,473
|
|
|
1,554
|
|
|
3,435
|
|
|
3,269
|
|
Interest
income
|
(5)
|
|
|
(19)
|
|
|
(28)
|
|
|
(19)
|
|
Other
Charges
|
1,509
|
|
|
1,263
|
|
|
2,748
|
|
|
2,477
|
|
Net loss on
disposition of property and equipment
|
(2,527)
|
|
|
(12,651)
|
|
|
(2,498)
|
|
|
(12,501)
|
|
Provision for asset
impairments and restaurant closings
|
661
|
|
|
1,195
|
|
|
1,770
|
|
|
2,422
|
|
Non-cash compensation
expense
|
366
|
|
|
398
|
|
|
732
|
|
|
823
|
|
Franchise
Taxes
|
42
|
|
|
42
|
|
|
98
|
|
|
108
|
|
Increase in fair
value of derivative
|
—
|
|
|
—
|
|
|
—
|
|
|
88
|
|
Adjusted
EBITDA
|
$
|
461
|
|
|
$
|
1,737
|
|
|
$
|
729
|
|
|
$
|
4,163
|
|
View original
content:http://www.prnewswire.com/news-releases/lubys-reports-second-quarter-fiscal-2020-results-301070364.html
SOURCE Luby's, Inc.