CBRL Group, Inc. Announces Fourth Quarter and Fiscal Year-End Results and Comments On 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)--Sept. 7, 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 fourth quarter and fiscal year ended July July: see month. 28, 2000. The company also commented on current trends and earnings targets for its current fiscal first quarter and full year. Revenue for the fourth quarter ended July 28, 2000 was $470.9 million compared with $426.7 million in the fourth quarter of fiscal 1999, an increase of 10.4%. Comparable store sales for the 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 3.8% for restaurants, including 2.5% menu pricing and 1.3% customer traffic, and down 3.9% 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 1.9%, reflecting 2.8% in menu pricing partly offset by a 0.9% traffic decline. The traffic decline for the Logan's Roadhouse concept reflected the impact of significant new competitive intrusion Unauthorized access to a computer system or network. See intruder and IDS. in the trade areas of over 30% of its comparable stores. The remaining comparable stores recorded 6.6% higher sales than in the year ago quarter. During the quarter, the company opened no new Cracker Barrel Old Country Store units and one new Logan's Roadhouse restaurant. Revenue for the fiscal year was $1.8 billion compared with $1.5 billion in fiscal 1999, an increase of 15.7%, partly reflecting the mid-year acquisition of the Logan's Roadhouse concept in fiscal 1999. Comparable store sales for the Cracker Barrel Old Country Store concept were up 0.6% for restaurants, including 0.4% lower menu pricing and 1.0% customer traffic improvement, and down 2.3% in retail. The Logan's Roadhouse concept, which was acquired during the third fiscal quarter of 1999, recorded a comparable store sales increase of 3.2%, reflecting 1.7% in menu pricing and a 1.5% traffic improvement. During the fiscal year, the company opened thirty new Cracker Barrel Old Country Store units, twelve new company operated and three franchised Logan's Roadhouse restaurants, and one Carmine carmine /car·mine/ (kahr´min) a red coloring matter used as a histologic stain. indigo carmine indigotindisulfonate sodium. car·mine n. Giardini's Gourmet Market and La Trattoria trat·to·ri·a n. pl. trat·to·ri·as or trat·to·ri·e An informal restaurant or tavern serving simple Italian dishes. [Italian, from trattore, host, from trattare Ristorante. For the quarter ended July 28, 2000, the company reported net income of $23.7 million, or $0.42 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 $12.3 million, or $0.21 per share (diluted), for the fourth fiscal quarter of 1999, an improvement of 93% in net income and 100% in earnings per share (diluted). For the full fiscal year, net income was $59.0 million, or $1.02 per share (diluted), including the effect of previously reported charges of $5.4 million, or $0.09 per share (diluted), recorded in the fiscal second quarter. Net income in fiscal 1999 was $70.2 million, or $1.16 per share (diluted). Commenting on the results, CBRL Group, Inc. Chairman and Chief Executive Officer, Dan W. Evins said, "We are very pleased with the marked improvements made in the last half of the fiscal year. These results reflect the efforts and dedication of a lot of hard-working hard-working adj → trabajador(a) hard-working hard adj → travailleur/euse, consciencieux/euse hard-working hard , capable people in our operating companies operating company A business that engages in transactions with outsiders. . Earnings from Cracker Barrel Old Country Store and Logan's Roadhouse both have improved nicely from last year's fourth quarter. While competitive intrusion did negatively impact approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 30% of our Logan's Roadhouse stores, the remaining stores did very well. We believe that Logan's management's focus on high standards of execution and the appeal of the Logan's concept will result in recovery with the passage of time as recent experience suggests." 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, quarter-to-date comparable store sales in the Cracker Barrel Old Country Store restaurants have been positive about 3.5-4.0%, a rate that includes a menu price factor of about 2.8%. Cracker Barrel Old Country Store comparable store retail sales have been positive about 0.5%. Retail sales trends typically are subject to 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 that can be attributed to availability or lack of availability of very popular retail items, and there can be no assurance that such trends will continue. Quarter-to-date comparable store sales trends for the Logan's Roadhouse concept have softened soft·en v. soft·ened, soft·en·ing, soft·ens v.tr. 1. To make soft or softer. 2. To undermine or reduce the strength, morale, or resistance of. 3. somewhat from the fourth quarter, running positive about 1%. This trend includes a menu price increase of about 3.9% compared with last year. The company has opened three new Cracker Barrel Old Country Store units thus far this quarter. It presently expects to open three more new units before quarter-end, with a total of fifteen new units to be opened during the fiscal year. Two new Logan's Roadhouse locations have been opened during the quarter, with three more expected before quarter-end and a total of thirteen during the fiscal year including a replacement for a restaurant destroyed by fire during fiscal 2000. No additional Carmine Giardini's locations will be opened this fiscal year. The company expects to generate net positive free cash flow during fiscal 2001, but it has not yet determined how such cash flow will be used. At the present time, consideration is being given to reduction of debt and to repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of shares. Any decision to repurchase shares will be announced prior to commencement of any repurchase activities. The company's present internal targets for earnings per share in the first quarter of fiscal 2001 are $0.27-0.29 per share, compared with $0.25 in the first quarter of fiscal 2000. For the full year, the company is targeting earnings per share up to the mid- mid- pref. Middle: midbrain. $1.30's, which includes approximately $0.07 attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to an additional week in the fourth fiscal quarter as fiscal 2001 will have 53 weeks. The effect of the additional week reflects a lower fixed cost burden incurred during this week. The company again urges caution in considering its present trends and internal targets, and it assumes no obligation to update this information other than in its periodic filings to the Securities and Exchange Commission under Forms 10-K, 10-Q, and 8-K. Commenting on the current 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 have made clear progress in turning around our operating and financial results. The current trends and our internal earnings targets, while not without challenges and risks, reflect our expectation that this progress will continue." 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 429 Cracker Barrel Old Country Store restaurants and gift shops located in 40 states, 67 Logan's Roadhouse company-operated and seven franchised restaurants in 15 states, and three Carmine Giardini's Gourmet Markets 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 such 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 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 should be evaluated in the context of these factors. Factors which will affect actual results include, but are not limited to: changes in interest rates affecting the company's financing costs; the availability and costs of acceptable sites for development; the effects of increased competition at company locations on sales and 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 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; 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. ; commodity price increases; adverse general economic conditions; adverse weather conditions; 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)
Fourth Quarter Ended
----------------------------------
7/28/00 7/30/99 Change
---------- --------- ------
Net sales:
Restaurant $ 375,171 $ 334,279 12%
Retail 95,575 92,221 4
---------- ----------
Net sales 470,746 426,500 10
Franchise fees and royalties 203 165 23
---------- ----------
Total revenue 470,949 426,665 10
Cost of goods sold 157,694 150,252 5
---------- ----------
Gross profit 313,255 276,413 13
Labor & other related expenses 172,362 159,482 8
Other store operating expenses 72,357 67,000 8
---------- ----------
Store operating income 68,536 49,931 37
General and administrative 22,718 22,683 -
Amortization of goodwill 998 979 2
---------- ----------
Operating income 44,820 26,269 71
Interest expense 6,870 6,039 14
Interest income 85 417 (80)
---------- ----------
Pretax income 38,035 20,647 84
Provision for income taxes 14,342 8,370 71
---------- ----------
Net income $ 23,693 $ 12,277 93
========== ==========
Earnings per share:
Basic $ 0.42 $ 0.21 100
Diluted $ 0.42 $ 0.21 100
Weighted average shares:
Basic 56,872 58,610 (3)
Diluted 56,986 58,725 (3)
Ratio Analysis
Net sales:
Restaurant 79.7% 78.4%
Retail 20.3 21.6
---------- ----------
Net sales 100.0 100.0
Franchise fees and royalties - -
---------- ----------
Total revenue 100.0 100.0
Cost of goods sold 33.5 35.2
---------- ----------
Gross profit 66.5 64.8
Labor & other related expenses 36.6 37.4
Other store operating expenses 15.4 15.7
---------- ----------
Store operating income 14.5 11.7
General and administrative 4.8 5.3
Amortization of goodwill 0.2 0.2
---------- ----------
Operating income 9.5 6.2
Interest expense 1.5 1.4
Interest income - 0.1
---------- ----------
Pretax income 8.0 4.9
Provision for income taxes 3.0 2.0
---------- ----------
Net income 5.0% 2.9%
========== ==========
Year Ended
---------------------------------
7/28/00 7/30/99 Change
---------- ---------- ------
Net sales:
Restaurant $ 1,378,753 $ 1,163,213 19%
Retail 393,293 368,127 7
---------- -----------
Net sales 1,772,046 1,531,340 16
Franchise fees and royalties 666 285 134
---------- -----------
Total revenue 1,772,712 1,531,625 16
Cost of goods sold 614,472 538,051 14
---------- -----------
Gross profit 1,158,240 993,574 17
Labor & other related expenses 645,976 538,348 20
Other store operating expenses 294,012 248,208 18
---------- -----------
Store operating income 218,252 207,018 5
General and administrative 95,289 82,006 16
Amortization of goodwill 3,994 2,169 84
---------- -----------
Operating income 118,969 122,843 (3)
Interest expense 24,616 11,324 117
Interest income 352 1,319 (73)
---------- -----------
Pretax income 94,705 112,838 (16)
Provision for income taxes 35,707 42,653 (16)
---------- -----------
Net income $ 58,998 $ 70,185 (16)
========== ===========
Earnings per share:
Basic $ 1.02 $ 1.16 (12)
Diluted $ 1.02 $ 1.16 (12)
Weighted average shares:
Basic 57,960 60,329 (4)
Diluted 58,041 60,610 (4)
Ratio Analysis
Net sales:
Restaurant 77.8% 76.0%
Retail 22.2 24.0
---------- -----------
Net sales 100.0 100.0
Franchise fees and royalties - -
---------- -----------
Total revenue 100.0 100.0
Cost of goods sold 34.7 35.1
---------- -----------
Gross profit 65.3 64.9
Labor & other related expenses 36.4 35.2
Other store operating expenses 16.6 16.2
---------- -----------
Store operating income 12.3 13.5
General and administrative 5.4 5.4
Amortization of goodwill 0.2 0.1
---------- -----------
Operating income 6.7 8.0
Interest expense 1.4 0.7
Interest income - 0.1
---------- -----------
Pretax income 5.3 7.4
Provision for income taxes 2.0 2.8
---------- -----------
Net income 3.3% 4.6%
========== ===========
CONSOLIDATED CONDENSED BALANCE SHEET
(Unaudited)
(In thousands)
7/28/00 7/30/99
----------- -----------
Assets
Cash and cash equivalents $ 13,865 $ 18,262
Other current assets 130,170 119,888
Property and equipment, net 1,075,134 1,020,055
Goodwill, net 107,253 111,246
Other assets 8,601 8,330
----------- -----------
Total assets $ 1,335,023 $ 1,277,781
=========== ===========
Liabilities and Stockholders' Equity
Current liabilities $ 173,578 $ 143,953
Long-term debt 292,000 312,000
Other long-term obligations 40,475 30,821
Stockholders' equity 828,970 791,007
----------- -----------
Total liabilities and
stockholders' equity $ 1,335,023 $ 1,277,781
=========== ===========
CONSOLIDATED CONDENSED CASH FLOW STATEMENT
(Unaudited)
(In thousands)
Fiscal Year Ended
---------------------------
7/28/00 7/30/99
----------- -----------
Cash flow from operating activities:
Net income $ 58,998 $ 70,185
Depreciation and amortization 65,218 53,838
Loss (gain) on disposition of
property and equipment 664 (259)
Impairment loss 3,887 -
Net changes in other assets and
liabilities 31,480 17,769
----------- ---------
Net cash provided by operating
activities 160,247 141,533
----------- ---------
Cash flows from investing activities:
Purchase of property and equipment (138,032) (164,718)
Cash paid for acquisition, net of
cash acquired - (182,392)
Net proceeds from sale of property
and equipment 17,333 3,383
---------- ---------
Net cash used in investing activities (120,699) (343,727)
---------- ---------
Cash flows from financing activities:
Proceeds from issuance of long-term
debt 444,500 355,000
Principal payments under long-term
debt and other long-term
obligations (467,234) (113,976)
Proceeds from exercise of stock
options 530 1,265
Purchases of treasury stock (21,104) (83,471)
Dividends on common stock (637) (955)
---------- ---------
Net cash (used in) provided by
financing activities (43,945) 157,863
---------- ---------
Net decrease in cash and cash
equivalents (4,397) (44,331)
Cash and cash equivalents,
beginning of year 18,262 62,593
---------- ---------
Cash and cash equivalents,
end of year $ 13,865 $ 18,262
========== =========
CBRL GROUP, INC.
Supplemental Information
As of As of
7/28/00 7/30/99
------------- -------------
Common shares outstanding 56,668,349 58,628,162
Units in operation:
Cracker Barrel 426 396
Carmine Giardini's Gourmet Market 3 2
Logan's Roadhouse - company-owned 65 54
------------- -------------
Total company-owned units 494 452
Logan's Roadhouse - franchised 7 4
------------- -------------
System-wide units 501 456
============ =============
Fourth Quarter Ended
-----------------------------
Net sales in company-owned stores: 7/28/00 7/30/99
-------------- -------------
(In thousands)
Cracker Barrel - restaurant $ 328,074 $ 294,449
Cracker Barrel - retail 93,211 90,408
-------------- -------------
Cracker Barrel - total 421,285 384,857
Carmine Giardini's Gourmet Market 3,439 2,366
Logan's Roadhouse 46,022 39,277
-------------- -------------
Total net sales $ 470,746 $ 426,500
============== =============
Operating weeks - company-owned stores:
Cracker Barrel 5,538 5,109
Logan's Roadhouse 840 668
Average comparable store sales -
Company-owned stores: (In thousands)
Cracker Barrel - restaurant $ 775.6 $ 747.3
Cracker Barrel - retail 219.5 228.4
-------------- -------------
Cracker Barrel - total $ 995.1 $ 975.7
============== =============
Logan's Roadhouse $ 765.4 $ 750.8
============== =============
Capitalized interest $ 333 $ 566
============== =============
Fiscal Year Ended
-----------------------------
Net sales in company-owned stores: 7/28/00 7/30/99
-------------- --------------
(In thousands)
Cracker Barrel - restaurant $ 1,196,680 $ 1,090,296
Cracker Barrel - retail 382,932 358,577
-------------- --------------
Cracker Barrel - total 1,579,612 1,448,873
Carmine Giardini's Gourmet Market 14,137 12,609
Logan's Roadhouse 178,297 69,858
-------------- --------------
Total net sales $ 1,772,046 $ 1,531,340
============== ==============
Operating weeks - company-owned stores:
Cracker Barrel 21,676 19,715
Logan's Roadhouse 3,165 1,178
Average comparable store sales -
Company-owned stores:(In thousands)
Cracker Barrel - restaurant $ 2,922.1 $ 2,904.6
Cracker Barrel - retail 929.8 952.2
-------------- --------------
Cracker Barrel - total $ 3,851.9 $ 3,856.8
============== ==============
Logan's Roadhouse $ 3,157.3 $ 3,059.5
============== ==============
Capitalized interest $ 1,511 $ 1,827
============== ==============
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