CBRL Group, Inc. Announces First Quarter Results and Updates Current Trends and Earnings Targets for Fiscal 2001.Business Editors 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.--(BUSINESS WIRE)--Nov. 16, 2000 CBRL CBRL CBRL Group, Inc (stock symbol) CBRL Council for British Research in the Levant (UK) Group, Inc. (Nasdaq:CBRL) today announced results for its first quarter of fiscal 2001 ended October October: see month. 27, 2000, reporting diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of of $0.30, up 20% from $0.25 in the year-earlier period. The Company also updated information on current trends and earnings targets for its current fiscal second quarter and full year. Revenue for the quarter was $467.3 million compared with $422.6 million in the first quarter of fiscal 2000, an increase of 10.6%. Comparable store sales for 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 Country Store concept were up 5.3% for restaurants, including 3.2% menu pricing and 2.1% customer traffic, and up 2.5% in retail. The 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). concept recorded a comparable store sales increase of 0.6%, reflecting 2.6% in menu pricing partly offset by a 2.0% traffic decline. During the quarter, the Company opened six new Cracker Barrel Old Country Store units and five new Logan's Roadhouse restaurants. For the first quarter ended October 27, 2000, the Company reported net income of $16.9 million, or $0.30 per share (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. ), compared with net income of $14.5 million, or $0.25 per share (diluted), for the first quarter of fiscal 2000, an improvement of 17% in net income and 20% in diluted earnings per share. Commenting on the results, CBRL Group, Inc. Chairman and Chief Executive Officer Dan W. Evins, said, "We are very pleased with our continuing improvements. The sales and profit performance at Cracker Barrel Old Country Store has exceeded our expectations. Furthermore, for the first time in many quarters, we are fully staffed in the store management ranks in our Cracker Barrel Old Country Store system, an accomplishment that should provide for potential further improvements in quality of operations. While we wish Logan's Roadhouse comparable store sales were not affected by competitive intrusion Unauthorized access to a computer system or network. See intruder and IDS. against so many stores, the remaining stores showed improvement recording a 2.3% sales increase over prior year. We continue to expect that Logan's management's focus on high standards of execution combined with appeal of the Logan's concept will result in recovery with the passage of time." The Company urges caution in considering its current trends and earnings targets as 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). below. The restaurant industry is highly competitive, and trends and targets 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 assumes no 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. Although there can be no assurance that such trends will continue, second quarter-to-date comparable store sales in the Cracker Barrel Old Country Store restaurants have been positive about 6.5-7.0%, a rate that includes a menu price factor of about 3.5%. Cracker Barrel Old Country Store comparable store retail sales have been positive about 5.0-5.5%. Retail sales typically have greater volatility Volatility 1. A statistical measure of the tendency of a market or security to rise or fall sharply within a period of time. 2. A variable in option pricing formulas that denotes the extent to which the return of the underlying asset will fluctuate between now and the and uncertainty than restaurant sales because of the significant impact of availability or lack of availability of very popular retail items, as well as the substantial reliance on successful seasonal sales before Christmas Christmas [Christ's Mass], in the Christian calendar, feast of the nativity of Jesus, celebrated in Roman Catholic and Protestant Churches on Dec. 25. In liturgical importance it ranks after Easter, Pentecost, and Epiphany (Jan. 6). , and there can be no assurance that such trends will continue. Second quarter-to-date comparable store sales trends for the Logan's Roadhouse concept have been down about 4.5-5.0%, including higher menu prices of about 0.8% compared with last year. The Company has opened one new Cracker Barrel Old Country Store unit thus far in the second quarter. It presently expects to open one more new unit next week, its final opening in the second quarter, with a total of 15 new units to be opened during the full fiscal year. Four new Logan's Roadhouse locations are expected to be opened before second quarter-end and a total of 13 during the full fiscal year including a replacement for a restaurant destroyed by fire during fiscal 2000. No additional Carmine carmine /car·mine/ (kahr´min) a red coloring matter used as a histologic stain. indigo carmine indigotindisulfonate sodium. car·mine n. Giardini's locations will be opened this fiscal year. The Company's present internal targets for diluted earnings per share in the second quarter of fiscal 2001 are in the high-$0.20's per share, compared with $0.11 in the second quarter of fiscal 2000. The year-ago period was affected by charges totaling $0.09 per share (diluted). For the full fiscal year, the Company indicated that it continues to target diluted earnings per share in the mid- mid- pref. Middle: midbrain. $1.30's, which includes the effect of an additional week in the fourth fiscal quarter as fiscal 2001 will have 53 weeks. The Company's present internal targets are based on Cracker Barrel Old Country Store sales running slightly above first quarter rates of improvement in the near term and moderating later in the year, partly offset by softness in Logan's Roadhouse sales, which appears to be continuing at this time. The Company expects to take a menu price increase of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. one percent in its Cracker Barrel Old Country Store units in December December: see month. at approximately the same time it laps a year-ago price increase of 1.6%, but no price increases are expected in the near term at Logan's Roadhouse. Principal areas of cost pressure are expected to be in rent related to an earlier sale/leaseback transaction (partly offset by reduced interest expense), labor, retail cost of goods sold Cost of goods sold The total cost of buying raw materials, and paying for all the factors that go into producing finished goods. cost of goods sold , and utilities. General and administrative expenses are expected to be at least in line with year-over-year revenue growth after a first quarter affected by higher than normal training and recruiting costs. Commenting on the present trends and earnings targets, 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. , president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. of CBRL Group, Inc., said, "We continue to be encouraged and pleased by our overall trends, and our confidence in the progress of our turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. is reflected in our earnings targets. Still, any turnaround is P. subject to significant uncertainty, and we continue to manage our business and expectations deliberately de·lib·er·ate adj. 1. Done with or marked by full consciousness of the nature and effects; intentional: mistook the oversight for a deliberate insult. 2. and conservatively for long-run adj. 1. relating to or extending over a relatively long time; as, the long-run significance of the elections s>. Adj. 1. long-run , sustainable earnings growth." 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. currently operates 433 Cracker Barrel Old Country Store restaurants and gift shops located in 40 states, 70 Logan's Roadhouse company-operated and eight franchised restaurants located in 15 states, and three Carmine Giardini's Gourmet Markets located in Florida Florida, state, United States Florida (flôr`ĭdə, flŏr`–), state in the extreme SE United States. A long, low peninsula between the Atlantic Ocean (E) and the Gulf of Mexico (W), Florida is bordered by Georgia and . Except for specific historical information, the matters discussed in this press release 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. that involve risks, uncertainties and other factors that may cause actual results and performance of CBRL Group, Inc. 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. Factors which will affect actual results include, but are not limited to: 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; the ability of the Company to identify 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 , especially during seasonal sales periods such as the Christmas holiday season; the 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. ; the availability and costs of acceptable sites for development; the acceptance of the Company's concepts as the Company expands into new markets and geographic geographic /geo·graph·ic/ (je?o-graf´ik) in pathology, of or referring to a pattern that is well demarcated, resembling outlines on a map. geographic pertaining to geography. regions; commodity price increases; adverse general economic conditions; adverse weather conditions; changes in interest rates affecting the Company's financing costs; changes in or implementation of additional governmental rules and regulations affecting wage and hour matters, health and safety, pensions and insurance; other undeterminable areas of government actions or regulations; and other factors described from time to time in the Company's filings with the Securities and Exchange Commission and press releases.
CBRL GROUP, INC.
CONSOLIDATED INCOME STATEMENT
(Unaudited)
(In thousands, except per share amounts)
First Quarter Ended
-------------------------------------
10/27/2000 10/29/1999 Change
----------- ----------- ------
Net sales:
Restaurant $ 370,042 $ 332,454 11%
Retail 97,022 89,967 8
----------- -----------
Total net sales 467,064 422,421 11
Franchise fees and royalties 191 186 3
----------- -----------
Total revenue 467,255 422,607 11
Cost of goods sold 156,072 145,759 7
----------- -----------
Gross profit 311,183 276,848 12
Labor & other related expenses 173,290 153,220 13
Other store operating expenses 79,798 70,358 13
----------- -----------
Store operating income 58,095 53,270 9
General and administrative 26,630 23,369 14
Amortization of goodwill 998 998 --
----------- -----------
Operating income 30,467 28,903 5
Interest expense 3,478 5,329 (35)
Interest income 19 31 (39)
----------- -----------
Pretax income 27,008 23,605 14
Provision for income taxes 10,074 9,133 10
----------- -----------
Net income $ 16,934 $ 14,472 17
=========== ===========
Earnings per share:
Basic $ 0.30 $ 0.25 20
=========== ===========
Diluted $ 0.30 $ 0.25 20
=========== ===========
Weighted average shares:
Basic 56,699 58,629 (3)
Diluted 56,815 58,721 (3)
RATIO ANALYSIS
Net sales:
Restaurant 79.2% 78.7%
Retail 20.8 21.3
----------- -----------
Total net sales 100.0 100.0
Franchise fees and royalties -- --
----------- -----------
Total revenue 100.0 100.0
Cost of goods sold 33.4 34.5
----------- -----------
Gross profit 66.6 65.5
Labor & other related expenses 37.1 36.3
Other store operating expenses 17.1 16.6
----------- -----------
Store operating income 12.4 12.6
General and administrative 5.7 5.5
Amortization of goodwill 0.2 0.2
----------- -----------
Operating income 6.5 6.9
Interest expense 0.7 1.3
Interest income -- --
----------- -----------
Pretax income 5.8 5.6
Provision for income taxes 2.2 2.2
----------- -----------
Net income 3.6% 3.4%
=========== ===========
CONSOLIDATED CONDENSED BALANCE SHEET
(Unaudited)
(In thousands)
10/27/2000 7/28/2000
----------- -----------
Assets
Cash and cash equivalents $ 9,720 $ 13,865
Other current assets 147,661 130,170
Property and equipment, net 949,895 1,075,134
Goodwill, net 106,254 107,253
Other assets 10,223 8,601
----------- -----------
Total assets $ 1,223,753 $ 1,335,023
=========== ===========
Liabilities and Stockholders'
Equity
Current liabilities $ 165,417 $ 173,578
Long-term debt 165,300 292,000
Other long-term obligations 46,864 40,475
Stockholders' equity 846,172 828,970
----------- -----------
Total liabilities and
stockholders' equity $ 1,223,753 $ 1,335,023
=========== ===========
CONSOLIDATED CONDENSED CASH FLOW STATEMENT
(Unaudited)
(In thousands)
First Quarter Ended
-------------------------
10/27/2000 10/29/1999
------------ -----------
Cash flow from operating activities:
Net income $ 16,934 $ 14,472
Depreciation and amortization 15,624 15,390
Loss (gain) on disposition of
property and equipment 533 (269)
Net changes in other assets
and liabilities (20,898) (19,318)
------------ -----------
Net cash provided by
operating activities 12,193 10,275
----------- -----------
Cash flows from investing activities:
Purchase of property and equipment (30,346) (40,758)
Proceeds from sale of property
and equipment 140,499 716
----------- -----------
Net cash provided by (used in)
investing activities 110,153 (40,042)
----------- -----------
Cash flows from financing activities:
Proceeds from issuance of
long-term debt 85,000 76,500
Principal payments under long-term
obligations (211,759) (46,559)
Proceeds from exercise of
stock options 268 42
Dividends on common stock -- (293)
----------- -----------
Net cash (used in) provided by
financing activities (126,491) 26,690
------------ -----------
Net decrease in cash and
cash equivalents (4,145) (77)
Cash and cash equivalents,
beginning of period 13,865 18,262
------------ -----------
Cash and cash equivalents,
end of period $ 9,720 $ 18,185
=========== ===========
CBRL GROUP, INC.
Supplemental Information
As of As of As of
10/27/2000 7/28/2000 10/29/1999
---------- --------- ----------
Common shares outstanding 56,701,849 56,668,349 58,633,162
Units in operation:
Cracker Barrel 432 426 409
Carmine Giardini's Gourmet Market 3 3 2
Logan's Roadhouse - company-owned 70 65 60
--------- ---------- -----------
Total company-owned units 505 494 471
Logan's Roadhouse - franchised 8 7 6
--------- ---------- -----------
System-wide units 513 501 477
========= ========== ===========
Net sales in company-owned stores: First Quarter Ended
(In thousands) ---------------------------
10/27/2000 10/29/1999
---------- -----------
Cracker Barrel - restaurant $ 320,933 $ 289,970
Cracker Barrel - retail 94,809 88,289
--------- -----------
Cracker Barrel - total 415,742 378,259
Carmine Giardini's Gourmet Market 3,085 2,160
Logan's Roadhouse 48,237 42,002
--------- -----------
Total net sales $ 467,064 $ 422,421
========= ===========
Operating weeks - company-owned stores:
Cracker Barrel 5,584 5,258
Logan's Roadhouse 877 732
Average comparable store sales -
company-owned stores: (In thousands)
Cracker Barrel - restaurant $ 750.2 $ 712.2
Cracker Barrel - retail 221.2 215.8
--------- -----------
Cracker Barrel - total $ 971.4 $ 928.0
========= ===========
Logan's Roadhouse $ 722.1 $ 717.6
========= ===========
Capitalized interest $ 322 $ 460
========= ===========
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