CBRL Group, Inc. Announces 18.9% Increase in Diluted Net Income Per Share for Second Quarter of Fiscal 2005; Provides Guidance for Fiscal 2005 Third Quarter.LEBANON Lebanon, country, Asia Lebanon (lĕb`ənən, –nŏn'), officially Republic of Lebanon, republic (2005 est. pop. 3,826,000), 4,015 sq mi (10,400 sq km), SW Asia. , Tenn. -- Announces Change in Accounting for Certain Leases; Implements Previously Announced Change in Accounting for Contingently con·tin·gent adj. 1. Liable to occur but not with certainty; possible: "All salaries are reckoned on contingent as well as on actual services" Ralph Waldo Emerson. Convertible Debt CBRL CBRL CBRL Group, Inc (stock symbol) CBRL Council for British Research in the Levant (UK) Group, Inc. (the "Company") (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : CBRL) today announced results for its second quarter of fiscal 2005 ended January January: see month. 28, 2005, reporting diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. net income per share of $0.63, an 18.9% increase from a restated $0.53 in the second quarter of fiscal 2004. These results included the effect of implementing the previously announced change in accounting for the Company's contingently convertible debt as required by Emerging Issues Task Force (EITF EITF Emerging Issues Task Force EITF Edinburgh International Television Festival EITF Europe International Taekwon-Do Federation ) Issue No. 04-8, as well as restating results for a change in accounting for certain leases. The Company also announced results for the six-month period ended January 28, 2005. Highlights of the fiscal 2005 second-quarter and year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. results include: --Diluted net income per share for the second quarter was up 18.9% and net income was up 13.7% from the estimated restated year-ago quarter on an 8.9% increase in total revenue. --Comparable store restaurant sales for the second fiscal quarter were up 3.2% for the Company's Cracker Barrel This article is about the restaurant-and-store chain. For the unrelated company marketing cheeses bearing the "Cracker Barrel" trademark, see Kraft Foods. Cracker Barrel Old Country Store, Inc. Old County Store(R) ("Cracker Barrel") operations, and comparable store retail sales at Cracker Barrel were down 0.3%. --Comparable restaurant sales for the second fiscal quarter were up 4.4% in the Company's Logan's Roadhouse Logan's Roadhouse is a chain of restaurants that was founded in 1991, and in 1999 became a wholly owned subsidiary of the publicly held CBRL Group, Inc (which also owns Cracker Barrel). (R) ("Logan's") restaurants. --Operating income margin increased to 7.7% of total revenue for the second fiscal quarter from 7.6% in the year-ago quarter as restated. --Year-to-date net cash provided by operating activities of $137.4 million up sharply from $76.6 million of net cash provided by operating activities in the comparable period of fiscal 2004. --Repurchase of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 1.2 million shares of the Company's outstanding common stock in the second quarter brought year-to-date repurchases to approximately 2.3 million shares. --The quarter and year to date are the first periods when present year and historical results are restated to reflect a previously announced change in accounting for the effect on diluted net income per share from the adoption of EITF 04-8, and for adoption of a change in accounting for lease expense. Second-Quarter Fiscal 2005 Results Total revenue for the second fiscal quarter ended January 28, 2005 of $667.2 million increased 8.9% from the second fiscal quarter of 2004. Comparable store restaurant sales for the second quarter for the Cracker Barrel concept increased 3.2%, including a 4.1% higher average check but 0.9% lower guest traffic. Cracker Barrel's average menu price increase for the full quarter was approximately 3.1%, including approximately 1.7% in menu pricing taken in January of last year and lapped during January this year. Comparable store retail sales at Cracker Barrel decreased 0.3% for the quarter. Logan's comparable restaurant sales for the quarter were up 4.4% as average check increased 4.0% and guest traffic increased 0.4%. Logan's carried approximately 3.3% of menu price increase during the quarter. During the quarter, the Company opened five new Cracker Barrel units, four new company-operated Logan's locations and two new franchised Logan's restaurants. The Company reported net income for the second quarter of fiscal 2005 of $32.6 million, or $0.63 per diluted share, up 13.7% and 18.9%, respectively, from estimated restated net income of $28.6 million and estimated restated diluted net income per share of $0.53 for the second quarter of fiscal 2004. In the second quarter, the Company has determined that it is likely to incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. a lower income tax rate than it previously expected for fiscal 2005, primarily reflecting higher than expected tax credits under certain federal jobs-creation provisions. The 34.2% rate reflected in the second quarter includes a catch-up effect The catch-up effect, also called the theory of convergence, states that poorer economies tend to grow faster than richer economies. Therefore, all economies will eventually converge in terms of per capita income. , so that the 34.6% rate year-to-date reflects the Company's present expectation of its effective tax rate for the full year. The Company also repurchased approximately 1.2 million shares of its common stock during the quarter for approximately $47.2 million. The Company announced that its results reflected certain restatements of historical period results. As announced in its November November: see month. 18, 2004 press release, the Company's second-quarter diluted net income per share calculation includes the effect of implementing EITF Issue No. 04-8, which requires accounting for the Company's contingently convertible debt using "if-converted" accounting regardless of whether the contingency contingency n. an event that might not occur. allowing debt holders to convert is met. As previously announced, the Company implemented the rule change in reporting its second fiscal quarter results, and it has restated previous years to reflect the effect of the rule change on prior periods. Additionally, the Company has changed its current and historical accounting for certain leases to conform with changes recently adopted by numerous other public companies. A further discussion of this change and the related restatement Restatement A revision in a company's earlier financial statements. Notes: The need for restating financial figures can result from fraud, misrepresentation, or a simple clerical error. of historical results are included below. Tables are provided at the end of this press release that show estimated restated quarterly and full-year results for the affected periods for both changes in accounting. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the second quarter increased 10.1% from the prior year and was 7.7% of total revenue compared to an estimated restated 7.6% in the second quarter of fiscal 2004. Compared with the second quarter of last year, operating income margin reflected an obsolescence ob·so·les·cent adj. 1. Being in the process of passing out of use or usefulness; becoming obsolete. 2. Biology Gradually disappearing; imperfectly or only slightly developed. reserve addition of approximately $1.0 million to reflect expected disposition Act of disposing; transferring to the care or possession of another. The parting with, alienation of, or giving up of property. The final settlement of a matter and, with reference to decisions announced by a court, a judge's ruling is commonly referred to as disposition, regardless of of certain aged and slow-moving Adj. 1. slow-moving - moving slowly; "slow-moving cars" slow - not moving quickly; taking a comparatively long time; "a slow walker"; "the slow lane of traffic"; "her steps were slow"; "he was slow in reacting to the news"; "slow but steady growth" retail inventory at Cracker Barrel, and credits of approximately $0.8 million for recoveries or expected recoveries of certain insured The person who obtains or is otherwise covered by insurance on his or her health, life, or property. The insured in a policy is not limited to the insured named in the policy but applies to anyone who is insured under the policy. insured n. losses. Operating income also reflects approximately $0.6 million and $0.5 million, respectively, in the second quarters of fiscal 2005 and estimated restated fiscal 2004 for a change in accounting for certain leases discussed more fully below. Commenting on the second-quarter results, CBRL Group, Inc. President and Chief Executive Officer Michael Michael, archangel Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. A. Woodhouse Wood´house` n. 1. A house or shed in which wood is stored, and sheltered from the weather. said, "We are very pleased with the solid results recorded this quarter, and with the progress made in returning to our long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. objective of 15% diluted net income per share growth through a combination of prudent unit expansion, improved operating results, and share repurchases Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. from the strong cash flow generated by our businesses. We are particularly pleased to post an increase from last year in operating income margin despite the ongoing commodity pressures we experienced during the quarter." Six-Month Fiscal 2005 Results Total revenue for the six months ended January 28, 2005 of $1.3 billion increased 7.6 % from the first six months of 2004. Comparable store restaurant sales for the six months for the Cracker Barrel concept increased 2.8%, including a 3.6% higher average check but 0.8% lower guest traffic. Comparable store retail sales at Cracker Barrel decreased 2.5% for the first six months of fiscal 2005. Logan's comparable restaurant sales for the first six months were up 4.2% with a 4.6% increase in average check but 0.4% lower guest traffic. The Company opened 10 new Cracker Barrel units and 11 new company-owned Logan's locations; two new franchised Logan's restaurants also opened. The Company reported net income for the first six months of fiscal 2005 of $62.5 million, or $1.20 per diluted share, reflecting increases of 10.6% and 13.2%, respectively, from estimated restated net income of $56.5 million and estimated restated diluted net income per share of $1.06 for the first six months of fiscal 2004. The Company reported that year-to-date net cash provided by operating activities of $137.4 million was up sharply from $76.6 million in the first six months of fiscal 2004, and well in excess of net cash used for the purchase of property and equipment (capital expenditures) of $76.6 million. The increased cash provided by operations reflected increased levels of accounts payable from the relatively low levels at the end of fiscal 2004 as well as the higher reported net income. Capital expenditures were higher than the prior year's $63.9 million, primarily reflecting a greater number of new store openings in development for fiscal 2005. The Company repurchased approximately 2.3 million shares of its common stock for approximately $87.1 million year-to-date and paid $11.3 million to shareholders in dividends. As of the end of the second quarter, the Company had approximately 0.6 million shares remaining to be repurchased under previously disclosed dis·close tr.v. dis·closed, dis·clos·ing, dis·clos·es 1. To expose to view, as by removing a cover; uncover. 2. To make known (something heretofore kept secret). authorizations Restatement Related to Changes for Lease Accounting Effective with the reporting contained in this press release, the Company has changed its accounting for certain operating leases Operating Lease A lease contract that allows the use of an asset, but does not convey rights similar to ownership of the asset. Notes: An operating lease is not capitalized it is accounted for as a rental expense. consistent with changes recently adopted by numerous other public companies. As part of this change, it has restated historical results, also consistent with policies adopted by others in its industry. Since 1985, generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. ("GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ") have required that leases for which there are rent increases over the term of the lease be accounted for at the average rent payment over the applicable term. This typically results in accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. rent expense in the early years being higher than cash rent payments, with the difference being recorded on the balance sheet as deferred rent liability. In later years of the lease, actual cash rent payments typically are higher than the average rent, and the difference is recorded by reducing the deferred rent liability. In effect, rent payments from the later years of the lease are partially accrued in the earlier years of the lease. GAAP generally requires that this average, or straight-line straight-line adj. 1. Lying in a straight line. 2. Relating to a device whose linkage produces or copies motion in straight lines. 3. , rent be calculated over the minimum term where the lessee One who rents real property or Personal Property from another. A lessee of land is a tenant. Cross-references Landlord and Tenant. lessee n. the person renting property under a written lease from the owner (lessor). would incur no economic penalty from terminating the lease. The Company indicated that it and apparently many others in the industry have long interpreted Translated from source code into machine code one line at a time. See interpreted language and interpreter. interpreted - interpreter this to mean the base term of the lease (i.e., not including option, or renewal, periods) since not renewing re·new v. re·newed, re·new·ing, re·news v.tr. 1. To make new or as if new again; restore: renewed the antique chair. 2. a lease generally is an economic advantage because it allows the lessee to cease operations at a poorly performing site or to commence operations at a superior site. The Company indicated that it and apparently many others in the industry, however, also generally have depreciated Depreciated may refer to:
Improvements on a leased asset that increase the value of the asset. Notes: A leasehold improvement is classified as an asset that must be depreciated over time. over a longer period, the expected life of the property, which may often include optional renewal periods. The restatement that the Company is recording conforms the period used for straight-line rent calculation with the estimated useful life used for depreciating de·pre·ci·ate v. de·pre·ci·at·ed, de·pre·ci·at·ing, de·pre·ci·ates v.tr. 1. To lessen the price or value of. 2. To think or speak of as being of little worth; belittle. leasehold improvements. This generally means that rent expense accrued in a given period will include rent that will not actually be paid until an even more remote future period, often more than 20 years hence and for which a lessee has no obligation until an option is exercised at some time in the future. If a lessee determines not to exercise a future renewal option, the rent accrued in the early years of the lease attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the later option period would be taken as a credit to income, even though there is no cash transaction. Again, these accrued future rent payments will be accumulated ac·cu·mu·late v. ac·cu·mu·lat·ed, ac·cu·mu·lat·ing, ac·cu·mu·lates v.tr. To gather or pile up; amass. See Synonyms at gather. v.intr. To mount up; increase. on the balance sheet as a deferred rent liability. Additionally, the restatement is based upon the applicable lease terms that include the pre-opening period during construction in which the Company is obligated ob·li·gate tr.v. ob·li·gat·ed, ob·li·gat·ing, ob·li·gates 1. To bind, compel, or constrain by a social, legal, or moral tie. See Synonyms at force. 2. To cause to be grateful or indebted; oblige. to the lease, but not making payments, yet would incur a substantial economic penalty by terminating the lease. Typically, rent payments do not commence until the restaurant opens for business, and the Company has used the earlier of commencement of operations or rent payments as the date on which it began to accrue To increase; to augment; to come to by way of increase; to be added as an increase, profit, or damage. Acquired; falling due; made or executed; matured; occurred; received; vested; was created; was incurred. rent, under the principle of matching revenues and expenses. As a non-cash accrual accrual, n continually recurring short-term liabilities. Examples are accrued wages, taxes, and interest. , the restatement has no net impact on cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses , and the income statement and balance sheet effects are summarized in a table in this press release. The Company will file an amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. Form 10-K/A for fiscal 2004 and an amended Form 10-Q/A for its first fiscal quarter of 2005 as soon as practical. Additionally, the Company will restate re·state tr.v. re·stat·ed, re·stat·ing, re·states To state again or in a new form. See Synonyms at repeat. re·state its second and third quarter of fiscal 2004 prospectively. The current filings should not be relied upon. The Company urges caution in considering its current trends and the earnings guidance disclosed in this press release. The restaurant industry is highly competitive, and trends and guidance are subject to numerous factors and influences, some of which are discussed in the cautionary language at the end of this press release. The Company disclaims any obligation to update disclosed information on trends or targets other than in its periodic filings under Forms 10-K, 10-Q, and 8-K with the Securities and Exchange Commission. Fiscal 2005 Earnings Guidance The Company's present guidance for diluted net income per share for the third quarter of fiscal 2005, which ends April 29, 2005, is for a percentage increase up to the mid-teens compared to the estimated restated $0.48 per share in the third quarter of last year on a total revenue increase of approximately 9-10%. Earnings guidance reflects many assumptions, many of which cannot be known, including, very importantly, sales expectations. The Company presently expects comparable store restaurant sales for the full third quarter to be up approximately 3-5% at Cracker Barrel and up approximately 2-4% at Logan's. Comparable store retail sales at Cracker Barrel are presently expected to be approximately flat to down 1% compared with the year-ago quarter. The Company presently expects operating income margins for the quarter to be flat to down slightly, primarily reflecting higher marketing expenses partly offset by other cost favorability, including lower cost of sales. The Company presently has an estimated 80-85% of its expected food purchases for the third quarter contracted with an overall expected percentage inflation on food purchases of approximately 1% from the third quarter of last year, primarily reflecting expectations for higher pork pork, flesh of swine prepared as food, one of the principal commodities of the meatpacking industry. Pork has long been a staple food in most of the world, although religious taboos have limited its use, especially among Jews and Muslims. , chicken and beef prices, partly offset by lower dairy dairy 1. a retail outlet for milk products. 2. the feeding and milking sheds on a dairy farm. 3. pertaining to or emanating from an animals or other thing concerned in the production of milk, e.g. dairy goat, dairy cleanser. costs. The Company presently expects to open seven new Cracker Barrel units in the third quarter, two of which have already opened, and six new Logan's company-operated units, of which one has already opening. In addition, one new franchised Logan's restaurant is expected to open in the quarter. With the present outlook for a strong fourth quarter, the Company presently expects a percentage increase for the full fiscal year in diluted net income per share in the mid-to-high teens above the estimated restated $2.18 in fiscal 2004 (excluding the settlement charge taken in the fourth quarter of last year), reflecting a high-single-digit percentage increase in total revenue and a full-year operating income margin that is up slightly compared with an estimated restated 7.9% of revenue recorded in fiscal 2004 (also excluding the effect of the settlement charge). The Company's full-year guidance includes an expectation for lower commodity costs in the fourth quarter than in the prior year, with approximately 70% of the Company's food cost purchases for the fourth quarter currently contracted. The Company is developing plans to address the impact of enacted minimum wage increases in certain states in which it operates. The estimated cost of the minimum wage increases is expected to be approximately $1.2-$1.3 million in the fourth quarter and substantially less than that in the third quarter. Fiscal 2005 Second-Quarter Conference Call The live broadcast of CBRL Group's quarterly conference call will be available to the public on-line at www.vcall.com or www.cbrlgroup.com today beginning at 11:00 a.m. (EST EST electroshock therapy. EST abbr. electroshock therapy ). The on-line replay will follow immediately and continue through February February: see month. 24, 2005. Headquartered in Lebanon, Tennessee
Lebanon is a city in Wilson County, Tennessee, in the United States. The population was 20,235 at the 2000 census. , CBRL Group, Inc. presently operates 516 Cracker Barrel Old Country Store restaurants and gift shops located in 41 states and 119 company-operated and 22 franchised Logan's Roadhouse restaurants in 18 states. Except for specific historical information, many 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 forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. concerning matters that involve risks, uncertainties and other factors which may cause the actual performance of CBRL Group, Inc. and its subsidiaries to differ materially from those expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by this discussion. All forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. information is provided by the Company pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. established under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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 The terminology used in the computer and telecommunications field adds tremendous confusion not only for the lay person, but for the technicians themselves. What many do not realize is that terms are made up by anybody and everybody in a nonchalant, casual manner without any regard or such as "assumptions", "target", "guidance", "outlook", "plans", "projection projection, in psychology: see defense mechanism. See rear-projection TV, front-projection TV and LCD panel. (theory) projection - In domain theory, a function, f, which is (a) idempotent, i.e. ", "may", "will", "would", "expect", "intend", "estimate", "anticipate", "believe", "potential" or "continue" (or the negative or other derivatives derivatives In finance, contracts whose value is derived from another asset, which can include stocks, bonds, currencies, interest rates, commodities, and related indexes. Purchasers of derivatives are essentially wagering on the future performance of that asset. of each of these terms) or similar terminology. Factors which could materially affect actual results include, but are not limited to: the effects of uncertain consumer confidence or general or regional economic weakness on sales and customer travel activity; the ability of the Company to identify, acquire and sell successful new lines of retail merchandise MERCHANDISE. By this term is understood all those things which merchants sell either wholesale or retail, as dry goods, hardware, groceries, drugs, &c. It is usually applied to personal chattels only, and to those which are not required for food or immediate support, but such as remain ; the availability and cost of acceptable sites for development and the Company's ability to identify such sites; commodity, workers' compensation workers' compensation, payment by employers for some part of the cost of injuries, or in some cases of occupational diseases, received by employees in the course of their work. , group health and utility price changes; consumer behavior based on concerns over nutritional nutritional pertaining to or emanating from nutrition. nutritional anemia see nutritional anemia. nutritional assessment or safety aspects of the Company's products or restaurant food in general; competitive marketing and operational initiatives; the effects of plans intended to improve operational execution and performance; changes in or implementation of additional governmental or regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. rules, regulations and interpretations affecting accounting, tax, wage and hour matters, health and safety, pensions, insurance or other undeterminable areas; practical or psychological effects of terrorist acts or war and military or government responses; the effects of increased competition at Company locations on sales and on labor recruiting, cost, and retention; the ability of and cost to the Company to recruit RECRUIT. A newly made soldier. , train, and retain qualified restaurant hourly and management employees; disruptions to the company's restaurant or retail supply chain; changes in foreign exchange rates affecting the Company's future retail inventory purchases; the actual results of pending or threatened litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. or governmental investigations and the costs and effects of negative publicity associated with these activities; changes in accounting principles generally accepted in the United States of America UNITED STATES OF AMERICA. The name of this country. The United States, now thirty-one in number, are Alabama, Arkansas, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, New Hampshire, or changes in capital market conditions that could affect valuations of restaurant companies in general or the Company's goodwill in particular; increases in construction costs; changes in interest rates affecting the Company's financing costs; and other factors described from time to time in the Company's filings with the SEC, press releases, and other communications.
CBRL GROUP, INC.
CONSOLIDATED INCOME STATEMENT
(Unaudited)
(In thousands, except share amounts)
Second Quarter Ended
--------------------------------
1/28/05 1/30/04 Change
----------- ------------ ------
(As Restated)
Total revenue $ 667,189 $ 612,801 9 %
Cost of goods sold 236,389 213,527 11
----------- ------------
Gross profit 430,800 399,274 8
Labor & other related expenses 232,749 219,007 6
Other store operating expenses 113,580 102,857 10
----------- ------------
Store operating income 84,471 77,410 9
General and administrative 32,834 30,519 8
----------- ------------
Operating income 51,637 46,891 10
Interest expense 2,200 2,068 6
Interest income 96 5 1820
------------------------
Pretax income 49,533 44,828 10
Provision for income taxes 16,955 16,180 5
----------- ------------
Net income $ 32,578 $ 28,648 14
=========== ============
Earnings per share
Basic $ 0.68 $ 0.58 17
=========== ============
Diluted $ 0.63 $ 0.53 19
=========== ============
Weighted average shares:
Basic 48,138,387 49,528,995 (3)
Diluted 53,816,998 55,707,178 (3)
Ratio Analysis
--------------
Net sales:
Restaurant 75.6% 74.6%
Retail 24.3 25.3
----------- ------------
Total net sales 99.9 99.9
Franchise fees and royalties 0.1 0.1
----------- ------------
Total revenue 100.0 100.0
Cost of goods sold 35.4 34.8
----------- ------------
Gross profit 64.6 65.2
Labor & other related expenses 34.9 35.8
Other store operating expenses 17.0 16.8
----------- ------------
Store operating income 12.7 12.6
General and administrative 5.0 5.0
----------- ------------
Operating income 7.7 7.6
Interest expense 0.3 0.3
Interest income -- --
----------- ------------
Pretax income 7.4 7.3
Provision for income taxes 2.5 2.6
----------- ------------
Net income 4.9% 4.7%
=========== ============
Six Months Ended
--------------------------------
1/28/05 1/30/04 Change
----------- ------------ ------
(As Restated)
Total revenue $ 1,279,842 $ 1,189,166 8%
Cost of goods sold 436,231 399,427 9
----------- ------------
Gross profit 843,611 789,739 7
Labor & other related expenses 458,938 433,310 6
Other store operating expenses 218,127 200,063 9
----------- ------------
Store operating income 166,546 156,366 7
General and administrative 66,766 63,939 4
----------- ------------
Operating income 99,780 92,427 8
Interest expense 4,295 4,291 -
Interest income 96 5 1820
------------------------
Pretax income 95,581 88,141 8
Provision for income taxes 33,073 31,642 5
----------- ------------
Net income $ 62,508 $ 56,499 11
=========== ============
Earnings per share
Basic $ 1.29 $ 1.16 11
=========== ============
Diluted $ 1.20 $ 1.06 13
=========== ============
Weighted average shares:
Basic 48,425,269 48,825,432 (1)
Diluted 54,086,885 55,162,768 (2)
Ratio Analysis
--------------
Net sales:
Restaurant 78.0% 76.8%
Retail 21.9 23.1
----------- ------------
Total net sales 99.9 99.9
Franchise fees and royalties 0.1 0.1
----------- ------------
Total revenue 100.0 100.0
Cost of goods sold 34.1 33.6
Gross profit 65.9 66.4
Labor & other related expenses 35.9 36.5
Other store operating expenses 17.0 16.8
----------- ------------
Store operating income 13.0 13.1
General and administrative 5.2 5.3
----------- ------------
Operating income 7.8 7.8
Interest expense 0.3 0.4
Interest income -- --
----------- ------------
Pretax income 7.5 7.4
Provision for income taxes 2.6 2.6
----------- ------------
Net income 4.9% 4.8%
=========== ============
CONSOLIDATED CONDENSED BALANCE SHEET
(Unaudited)
(In thousands)
1/28/05 7/30/04
----------- -----------
Assets (As Restated)
Cash and cash equivalents $ 20,405 $ 28,775
Other current assets 164,068 174,265
Property and equipment, net 1,160,242 1,118,573
Goodwill 93,724 93,724
Other assets 25,591 20,367
----------- -----------
Total assets $ 1,464,030 $ 1,435,704
=========== ===========
Liabilities and Stockholders' Equity
Current liabilities $ 267,581 $ 242,235
Long-term debt 187,901 185,138
Other long-term obligations 143,195 134,995
Stockholders' equity 865,353 873,336
----------- -----------
Total liabilities and stockholders' equity$ 1,464,030 $ 1,435,704
=========== ===========
CONSOLIDATED CONDENSED CASH FLOW STATEMENT
(Unaudited)
(In thousands)
Six Months Ended
-------------------------
1/28/05 1/30/04
----------- -----------
(As Restated)
Cash flow from operating activities:
Net income $ 62,508 $ 56,499
Depreciation and amortization 33,627 30,929
Loss on disposition of property and
equipment 1,227 972
Accretion on zero-coupon notes 2,763 2,676
Net changes in other assets and
liabilities 37,282 (14,484)
----------- -----------
Net cash provided by operating
activities 137,407 76,592
----------- -----------
Cash flows from investing activities:
Purchase of property and equipment (76,587) (63,899)
Proceeds from sale of property and
equipment 875 682
----------- -----------
Net cash used in investing activities (75,712) (63,217)
----------- -----------
Cash flows from financing activities:
Proceeds from issuance of long-term debt 226,700 130,000
Principal payments under long-term
obligations (226,794) (137,049)
Proceeds from exercise of stock options 28,456 43,768
Purchase and retirement of common stock (87,094) (18,299)
Dividends on common stock (11,333) (5,373)
Other -- (1)
----------- -----------
Net cash (used in) provided by
financing activities (70,065) 13,046
----------- -----------
Net (decrease) increase in cash and cash
equivalents (8,370) 26,421
Cash and cash equivalents, beginning of
period 28,775 14,389
----------- -----------
Cash and cash equivalents, end of period $ 20,405 $ 40,810
=========== ===========
CBRL GROUP, INC.
Supplemental Information
(Unaudited)
As of As of As of
1/28/05 7/30/04 1/30/04
---------- ---------- -----------
Common shares outstanding 47,878,834 48,769,368 49,767,422
========== ========== ===========
Units in operation:
Cracker Barrel 514 504 488
Logan's Roadhouse - company-
owned 118 107 103
---------- ---------- -----------
Total company-owned units 632 611 591
Logan's Roadhouse - franchised 22 20 17
---------- ---------- -----------
System-wide units 654 631 608
========== ========== ===========
Second Quarter Ended Six Months Ended
Net sales in company-owned
stores: 1/28/05 1/30/04 1/28/05 1/30/04
-------- -------- ---------- ----------
(In thousands)
Cracker Barrel - restaurant$410,387 $378,880 $ 818,800 $ 762,191
Cracker Barrel - retail 162,341 155,313 280,252 274,752
-------- -------- ---------- ----------
Cracker Barrel - total 572,728 534,193 1,099,052 1,036,943
Logan's Roadhouse 93,869 78,139 179,669 151,348
-------- -------- ---------- ----------
Total net sales 666,597 612,332 1,278,721 1,188,291
Franchise fees and
royalties 592 469 1,121 875
-------- -------- ---------- ----------
Total revenue $667,189 $612,801 $1,279,842 $1,189,166
======== ======== ========== ==========
Operating weeks - company-
owned stores:
Cracker Barrel 6,661 6,315 13,234 12,583
Logan's Roadhouse 1,516 1,315 2,955 2,596
Average comparable store sales
- company-owned stores:
(In thousands)
Cracker Barrel - restaurant $ 804.1 $ 779.0 $ 1,617.8 $ 1,574.1
Cracker Barrel - retail 314.5 315.6 545.8 560.0
-------- -------- ---------- ----------
Cracker Barrel - total (472
and 466 units) $1,118.6 $1,094.6 $ 2,163.6 $ 2,134.1
======== ======== ========== ==========
Logan's Roadhouse (96 and 93
units) $ 793.7 $ 760.2 $ 1,561.9 $ 1,498.8
======== ======== ========== ==========
Capitalized interest $ 180 $ 164 $ 361 $ 288
======== ======== ========== ==========
Summary Effect of Estimated Restatement for Accounting for EITF 04-8
----------------------------------------------------------------------
and Certain Leases (Unaudited)
------------------------------
CBRL GROUP, INC.
SELECTED INCOME STATEMENT DATA
(In thousands, except share data)
(Unaudited)
FISCAL YEARS ENDING
Income
before
Total Operating income Net
Revenue income (a) taxes (a) income (a)
-------------------------- ---------- ---------- ---------- ----------
July 30, 2004
--------------------------
As reported $2,380,947 $185,136 $176,697 $113,262
-------------------------- ---------- ---------- ---------- ----------
Estimated restatement 2,380,947 182,987 174,548 111,885
-------------------------- ---------- ---------- ---------- ----------
August 1, 2003
--------------------------
As reported 2,198,182 174,081 165,262 106,529
-------------------------- ---------- ---------- ---------- ----------
Estimated restatement 2,198,182 171,878 163,059 105,108
-------------------------- ---------- ---------- ---------- ----------
August 2, 2002
--------------------------
As reported 2,071,784 149,300 142,531 91,789
-------------------------- ---------- ---------- ---------- ----------
Estimated restatement 2,071,784 147,210 140,441 90,444
-------------------------- ---------- ---------- ---------- ----------
August 3, 2001
--------------------------
As reported 1,967,998 96,696 84,464 49,181
-------------------------- ---------- ---------- ---------- ----------
Estimated restatement 1,967,998 95,634 83,402 48,550
-------------------------- ---------- ---------- ---------- ----------
July 28, 2000
--------------------------
As reported 1,777,119 118,969 94,705 58,998
-------------------------- ---------- ---------- ---------- ----------
Estimated restatement 1,777,119 117,824 93,560 58,273
-------------------------- ---------- ---------- ---------- ----------
Basic Diluted
net net Basic Diluted
income income weighted weighted
per per average average
share (a) share (b) shares shares (c)
-------------------------- --------- --------- ----------- -----------
July 30, 2004
--------------------------
As reported $2.32 $2.25 48,877,306 50,369,845
-------------------------- --------- --------- ----------- -----------
Estimated restatement 2.29 2.12 48,877,306 54,952,633
-------------------------- --------- --------- ----------- -----------
August 1, 2003
--------------------------
As reported 2.16 2.09 49,274,373 50,998,339
-------------------------- --------- --------- ----------- -----------
Estimated restatement 2.13 1.97 49,274,373 55,581,127
-------------------------- --------- --------- ----------- -----------
August 2, 2002
--------------------------
As reported 1.69 1.64 54,198,845 56,090,940
-------------------------- --------- --------- ----------- -----------
Estimated restatement 1.67 1.59 54,198,845 57,626,929
-------------------------- --------- --------- ----------- -----------
August 3, 2001
--------------------------
As reported 0.88 0.87 56,128,956 56,799,124
-------------------------- --------- --------- ----------- -----------
Estimated restatement 0.86 0.85 56,128,956 56,799,124
-------------------------- --------- --------- ----------- -----------
July 28, 2000
--------------------------
As reported 1.02 1.02 57,959,646 58,041,290
-------------------------- --------- --------- ----------- -----------
Estimated restatement 1.01 1.00 57,959,646 58,041,290
-------------------------- --------- --------- ----------- -----------
(a) Reflects restatement effects of change in accounting for operating
leases
(b) Reflects restatement effects of change in accounting for operating
leases and adoption of EITF 04-8
(c) Reflects restatement effects of adoption of EITF 04-8
CBRL GROUP, INC.
SELECTED INCOME STATEMENT DATA
(In thousands, except share data)
(Unaudited)
FISCAL QUARTERS ENDING
Income
before
Total Operating income Net
Revenue income (a) taxes (a) income (a)
-------------------------- ---------- ---------- ---------- ----------
October 29, 2004
--------------------------
As reported $612,653 $48,672 $46,577 $30,275
-------------------------- ---------- ---------- ---------- ----------
Estimated restatement 612,653 48,143 46,048 29,930
-------------------------- ---------- ---------- ---------- ----------
July 30, 2004
--------------------------
As reported 607,499 48,823 46,677 29,919
-------------------------- ---------- ---------- ---------- ----------
Estimated restatement 607,499 48,280 46,134 29,571
-------------------------- ---------- ---------- ---------- ----------
April 30, 2004
--------------------------
As reported 584,282 42,852 40,845 26,182
-------------------------- ---------- ---------- ---------- ----------
Estimated restatement 584,282 42,280 40,273 25,815
-------------------------- ---------- ---------- ---------- ----------
January 30, 2004
--------------------------
As reported 612,801 47,444 45,381 29,001
-------------------------- ---------- ---------- ---------- ----------
Estimated restatement 612,801 46,891 44,828 28,648
-------------------------- ---------- ---------- ---------- ----------
October 31, 2003
--------------------------
As reported 576,365 46,017 43,794 28,160
-------------------------- ---------- ---------- ---------- ----------
Estimated restatement 576,365 45,536 43,313 27,851
-------------------------- ---------- ---------- ---------- ----------
Basic Diluted
net net Basic Diluted
income income weighted weighted
per per average average
share (a) share (b) shares shares (c)
-------------------------- --------- --------- ----------- -----------
October 29, 2004
--------------------------
As reported $0.62 $0.61 48,712,161 49,773,983
-------------------------- --------- --------- ----------- -----------
Estimated restatement 0.61 0.57 48,712,161 54,356,771
-------------------------- --------- --------- ----------- -----------
July 30, 2004
--------------------------
As reported 0.61 0.60 48,730,740 49,800,652
-------------------------- --------- --------- ----------- -----------
Estimated restatement 0.61 0.56 48,730,740 54,383,440
-------------------------- --------- --------- ----------- -----------
April 30, 2004
--------------------------
As reported 0.53 0.52 49,127,619 50,518,767
-------------------------- --------- --------- ----------- -----------
Estimated restatement 0.53 0.49 49,127,619 55,101,555
-------------------------- --------- --------- ----------- -----------
January 30, 2004
--------------------------
As reported 0.59 0.57 49,528,995 51,124,390
-------------------------- --------- --------- ----------- -----------
Estimated restatement 0.58 0.53 49,528,995 55,707,178
-------------------------- --------- --------- ----------- -----------
October 31, 2003
--------------------------
As reported 0.59 0.56 48,121,869 50,035,570
-------------------------- --------- --------- ----------- -----------
Estimated restatement 0.58 0.53 48,121,869 54,618,358
-------------------------- --------- --------- ----------- -----------
(a) Reflects restatement effects of change in accounting for operating
leases
(b) Reflects restatement effects of change in accounting for operating
leases and adoption of EITF 04-8
(c) Reflects restatement effects of adoption of EITF 04-8
CBRL GROUP, INC.
SELECTED BALANCE SHEET DATA
(In thousands)
(Unaudited)
PERIODS ENDING
October 29, 2004 October 29, 2004
------------------------------------ ---------------- ----------------
(As reported) (Estimated
restatement)
------------------------------------ ---------------- ----------------
ASSETS
------------------------------------ ---------------- ----------------
Total current assets $225,129 $225,129
------------------------------------ ---------------- ----------------
Net property and equipment 1,139,503 1,139,503
------------------------------------ ---------------- ----------------
Total other assets (a) 117,496 118,338
------------------------------------ ---------------- ----------------
Total assets (a) $1,482,128 $1,482,970
------------------------------------ ---------------- ----------------
LIABILITIES AND STOCKHOLDERS' EQUITY
----------------------------------------------------------------------
Total current liabilities (a) $270,355 $265,624
------------------------------------ ---------------- ----------------
Long-term debt 206,520 206,520
------------------------------------ ---------------- ----------------
Other liabilities (a) 127,711 140,540
------------------------------------ ---------------- ----------------
Total stockholders' equity (a) 877,542 870,286
------------------------------------ ---------------- ----------------
Total liabilities and
stockholders' equity (a) $1,482,128 $1,482,970
------------------------------------ ---------------- ----------------
July 30, 2004 July 30, 2004
------------------------------------------ ------------- -------------
(As reported) (Estimated
restatement)
------------------------------------------ ------------- -------------
ASSETS
------------------------------------------ ------------- -------------
Total current assets $203,040 $203,040
------------------------------------------ ------------- -------------
Net property and equipment 1,118,573 1,118,573
------------------------------------------ ------------- -------------
Total other assets (a) 113,249 114,091
------------------------------------------ ------------- -------------
Total assets (a) $1,434,862 $1,435,704
------------------------------------------ ------------- -------------
LIABILITIES AND STOCKHOLDERS' EQUITY
----------------------------------------------------------------------
Total current liabilities (a) $246,782 $242,235
------------------------------------------ ------------- -------------
Long-term debt 185,138 185,138
------------------------------------------ ------------- -------------
Other liabilities (a) 122,695 134,995
------------------------------------------ ------------- -------------
Total stockholders' equity (a) 880,247 873,336
------------------------------------------ ------------- -------------
Total liabilities and stockholders'
equity (a) $1,434,862 $1,435,704
------------------------------------------ ------------- -------------
(a) Reflects restatement effects of change in accounting for operating
leases
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