CORRECTING and REPLACING CBRL Group, Inc. Announces 13% Increase in Diluted Net Income Per Share for Third Quarter of Fiscal 2004.Business Editors CORRECTION CORRECTION,punishment. Chastisement by one having authority of a person who has committed some offence, for the purpose of bringing him to legal subjection. 2. It is chiefly exercised in a parental manner, by parents, or those who are placed in loco parentis. ...by CBRL CBRL CBRL Group, Inc (stock symbol) CBRL Council for British Research in the Levant (UK) Group, Inc. 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)--May 20, 2004 In BW5285 issued May 20, 2004: Tenth Tenth can mean: In mathematics:
The corrected release reads: CBRL GROUP, INC. ANNOUNCES 13% INCREASE IN 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 FOR THIRD QUARTER OF FISCAL 2004 CBRL 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 third quarter of fiscal 2004 ended April 30, 2004, reporting diluted net income per share of $0.52, up 13.0% from $0.46 in the third quarter of fiscal 2003. The Company also reported recent fourth-quarter fiscal 2004 sales trends for the fourth quarter of fiscal 2004. Highlights of the fiscal 2004 third-quarter results and current sales trends include: -- Diluted net income per share for the third quarter of fiscal 2004 was up 13.0% and net income was up 11.9% from the third quarter of fiscal 2003 on a 10.8% increase in total revenue. -- Comparable store restaurant sales for the quarter were up 4.9% in 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 Country Store(R) ("Cracker Barrel barrel: see English units of measurement. ") operations, and comparable store retail sales at Cracker Barrel were up 6.2%. -- Comparable restaurant sales for the quarter were up 7.3% 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. -- Eight new Cracker Barrel stores and four new Logan's company-owned restaurants and two new franchised Logan's restaurants were opened during the quarter. -- Approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 1.3 million shares of the Company's common stock were repurchased during the third quarter. -- Comparable store restaurant sales trends, nearly three weeks into the fourth quarter of fiscal 2004, are down approximately 1.5% in Cracker Barrel but up approximately 4.5% in Logan's. To date, fiscal 2004 fourth-quarter comparable store retail sales in Cracker Barrel are down approximately 1.5-2%. Third-Quarter Fiscal 2004 Results Total revenue for the third fiscal quarter ended April 30, 2004 of $584.3 million increased 10.8% from the third fiscal quarter of 2003. Comparable store restaurant sales for the third quarter for the Cracker Barrel concept increased 4.9% (compared with a 1.7% decrease in last year's third quarter), with a 2.1% higher average check (including 1.7% higher menu prices) and a 2.8% increase in guest traffic. Comparable store retail sales at Cracker Barrel increased 6.2% for the quarter (compared with a 2.3% decrease in last year's third quarter). Logan's comparable restaurant sales for the quarter were up 7.3% (compared with a 1.1% decrease in last year's third quarter), with a 5.7% increase in guest traffic and a 1.6% higher average check, which included 0.7% of higher menu prices. During the quarter, the Company opened eight new Cracker Barrel units and four new company-owned Logan's restaurants; two new franchised Logan's restaurants also opened during the quarter. The Company reported net income for the third quarter of fiscal 2004 of $26.2 million, or $0.52 per diluted share, reflecting increases of 11.9% and 13.0%, respectively, from net income of $23.4 million and diluted net income per share of $0.46 for the third quarter of fiscal 2003. The results were in line with the Company's guidance, given throughout the quarter, of a percentage increase of up to the mid-teens in diluted net income per share. 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 third quarter grew 11.3% from the prior year quarter and, at 7.3% of total revenue, was flat as a percent of total revenue compared to the third fiscal quarter of 2003. Higher 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 during the quarter offset lower labor, other store operating, and general and administrative expenses. Increases in cost of goods sold reflected higher commodity prices at both Cracker Barrel and Logan's and higher retail markdowns. Cost of goods sold also included higher than expected retail markdowns associated with the sale of certain aged inventory during a Porch porch Roofed structure, usually open at front and sides, projecting from the face of a building and used to protect an entrance. If colonnaded, it may be called a portico. Sale event late in the quarter as well as an increase in costs related to discontinuance Cessation; ending; giving up. The discontinuance of a lawsuit, also known as a dismissal or a non-suit, is the voluntary or involuntary termination of an action. DISCONTINUANCE, pleading. A chasm or interruption in the pleading. 2. of one of the Company's suppliers. Commenting on the third-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 achieved solid results in our third quarter that were in line with our guidance and expectations. Our double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. growth in net income and diluted net income per share came during a period of extraordinary product cost pressure for our industry, and we are pleased with the responsiveness responsiveness Medtalk The ability to respond to a stimulus. See Airway responsiveness. of our leadership teams at both Cracker Barrel and Logan's to these extraordinary conditions. Our sales performance was strong, including guest traffic increases at both our concepts." During the quarter, the Company resumed repurchasing its common stock and purchased approximately 1.3 million shares during the third quarter for approximately $50.9 million, or approximately $38.61 per share. Approximately 900,000 shares remain under the previously announced share repurchase 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. authorizations. Nine-Month Fiscal 2004 Results Total revenue for the nine months ended April 30, 2004 of nearly $1.8 billion increased 9.6% from the first nine months of 2003. Comparable store restaurant sales for the nine months for the Cracker Barrel concept increased 2.9%, including a 1.7% higher average check and 1.2% higher guest traffic. Comparable store retail sales at Cracker Barrel increased 7.9% for the first nine months of fiscal 2004. Logan's comparable restaurant sales for the first nine months were up 4.4% with a 3.6% increase in guest traffic and a 0.8% higher average check. The Company opened 16 new Cracker Barrel units and 11 new company-owned Logan's locations during the first nine months of the fiscal year; three new franchised Logan's restaurants also opened. The Company reported net income for the first nine months of fiscal 2004 of $83.3 million, or $1.65 per diluted share, reflecting increases of 17.4% and 18.7%, respectively, from net income of $71.0 million and diluted net income per share of $1.39 for the first nine months of fiscal 2003. Current Sales Trends and Earnings Outlook The Company urges caution in considering its current trends and the outlook 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). 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 expectations other than in its periodic filings with the Securities and Exchange Commission ("SEC"). The Company reported that comparable store restaurant sales for the nearly three-week period of its fourth quarter of fiscal 2004 are down approximately 1.5% in its Cracker Barrel units compared with the same period a year ago, reflecting approximately 1-1.5% higher average check, including 1.7% in menu price increases, but approximately 2.5-3% lower guest traffic. Quarter-to-date retail sales in the comparable units are down approximately 1.5-2%. Quarter-to-date comparable restaurant sales in the Company's Logan's restaurants are up approximately 4.5% compared with last year, reflecting approximately 0.5-1% higher guest traffic and approximately 3.5-4% higher average check. Logan's introduced a new menu in early May that included a price increase of approximately 2.3%. Previously, the Company expected a percentage increase in diluted net income per share up to the mid-teens for the fourth quarter of fiscal 2004. That outlook was based on low double-digit total revenue growth. As noted above, over the past few weeks the Company has experienced a softening softening /sof·ten·ing/ (sof´en-ing) malacia. softening a change of consistency, with loss of firmness or hardness. in sales or guest traffic from previous trends in both of its concepts, and recent trends are below previous expectations. Because this change in trends is so recent, the Company is not yet sufficiently comfortable to assess how trends might change or continue over the remainder of the quarter, especially for the seasonally strong period after Memorial Day. As a result, the Company believes that it is not in a position to confirm its previous guidance or provide an update at this time. The Company will endeavor See Endevor. to update its guidance after it has obtained more visibility into the factors behind the revenue softness. Fiscal 2004 Third-Quarter Conference Call The live broadcast of the CBRL Group 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. (EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT ). The on-line replay will follow immediately and will be available through May 27, 2004. 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 498 Cracker Barrel Old Country Store restaurants and gift shops located in 41 states and 107 company-operated and 19 franchised Logan's Roadhouse restaurants in 17 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 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; 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; the effects of uncertain consumer confidence or general or regional economic weakness on sales and customer travel activity; 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 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 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 availability and cost of acceptable sites for development and the Company's ability to identify such sites; 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 per share amounts)
Third Quarter Ended Nine Months Ended
----------------------- ---------------------------
4/30/04 5/2/03 Change 4/30/04 5/2/03 Change
-------- -------- ----- ---------- ---------- -----
Total revenue $584,282 $527,189 11% $1,773,448 $1,617,847 10%
Cost of goods sold 190,718 165,378 15 590,145 521,455 13
-------- -------- ---------- ----------
Gross profit 393,564 361,811 9 1,183,303 1,096,392 8
Labor & other
related expenses 221,230 201,170 10 654,540 605,357 8
Other store
operating expenses 98,890 92,573 7 297,925 280,558 6
-------- -------- ---------- ----------
Store operating
income 73,444 68,068 8 230,838 210,477 10
General and
administrative 30,592 29,577 3 94,525 93,798 1
-------- -------- ---------- ----------
Operating income 42,852 38,491 11 136,313 116,679 17
Interest expense 2,007 2,214 (9) 6,298 6,659 (5)
Interest income -- -- -- 5 73 (93)
-------- -------- ---------- ----------
Pretax income 40,845 36,277 13 130,020 110,093 18
Provision for
income taxes 14,663 12,878 14 46,677 39,083 19
-------- -------- ---------- ----------
Net income $ 26,182 $ 23,399 12 $ 83,343 $ 71,010 17
======== ======== ========== ==========
Earnings per share:
Basic $ 0.53 $ 0.48 10 $ 1.70 $ 1.43 19
======== ======== ========== ==========
Diluted $ 0.52 $ 0.46 13 $ 1.65 $ 1.39 19
======== ======== ========== ==========
Weighted average
shares:
Basic 49,128 49,077 -- 48,926 49,609 (1)
Diluted 50,519 50,767 -- 50,560 51,178 (1)
Ratio Analysis
-------------------
Net sales:
Restaurant 82.2% 82.1% 78.6% 79.1%
Retail 17.7 17.8 21.3 20.8
-------- -------- ---------- ----------
Total net sales 99.9 99.9 99.9 99.9
Franchise fees and
royalties 0.1 0.1 0.1 0.1
-------- -------- ---------- ----------
Total revenue 100.0 100.0 100.0 100.0
Cost of goods sold 32.6 31.4 33.3 32.2
-------- -------- ---------- ----------
Gross profit 67.4 68.6 66.7 67.8
Labor & other
related expenses 37.9 38.1 36.9 37.4
Other store
operating expenses 16.9 17.6 16.8 17.4
-------- -------- ---------- ----------
Store operating
income 12.6 12.9 13.0 13.0
General and
administrative 5.3 5.6 5.3 5.8
-------- -------- ---------- ----------
Operating income 7.3 7.3 7.7 7.2
Interest expense 0.3 0.4 0.4 0.4
Interest income -- -- -- --
-------- -------- ---------- ----------
Pretax income 7.0 6.9 7.3 6.8
Provision for
income taxes 2.5 2.5 2.6 2.4
-------- -------- ---------- ----------
Net income 4.5% 4.4% 4.7% 4.4%
======== ======== ========== ==========
CONSOLIDATED CONDENSED BALANCE SHEET
(Unaudited)
(In thousands)
4/30/04 8/1/03
Assets ---------- ----------
Cash and cash equivalents $ 14,035 $ 14,389
Other current assets 157,933 161,670
Property and equipment, net 1,091,842 1,040,315
Goodwill 92,882 92,882
Other assets 20,338 17,067
---------- ----------
Total assets $1,377,030 $1,326,323
========== ==========
Liabilities and Stockholders' Equity
Accounts payable $ 39,534 $ 82,172
Other current liabilities 211,035 164,542
Long-term debt 183,757 186,730
Other long-term obligations 100,995 97,983
Stockholders' equity 841,709 794,896
---------- ----------
Total liabilities and stockholders' equity $1,377,030 $1,326,323
========== ==========
CONSOLIDATED CONDENSED CASH FLOW STATEMENT
(Unaudited)
(In thousands)
Nine Months Ended
----------------------
4/30/04 5/2/03
-------- --------
Cash flows from operating activities:
Net income $ 83,343 $ 71,010
Depreciation and amortization 47,160 48,316
Loss on disposition of property
and equipment 1,846 478
Accretion on zero-coupon notes 4,027 3,916
Net changes in other assets
and liabilities 732 30,342
-------- --------
Net cash provided by operating
activities 137,108 154,062
-------- --------
Cash flows from investing activities:
Purchase of property and equipment (99,982) (85,260)
Proceeds from sale of property
and equipment 777 1,517
-------- --------
Net cash used in investing activities (99,205) (83,743)
-------- --------
Cash flows from financing activities:
Proceeds from issuance of long-term debt 150,000 276,600
Principal payments under long-term
obligations (157,082) (276,665)
Deferred financing costs (1) (1,203)
Proceeds from exercise of stock options 48,869 27,626
Purchase and retirement of common stock (69,206) (95,003)
Dividends on common stock (10,837) (1,043)
-------- --------
Net cash used in financing activities (38,257) (69,688)
-------- --------
Net (decrease) increase in cash and
cash equivalents (354) 631
Cash and cash equivalents, beginning
of period 14,389 15,074
-------- --------
Cash and cash equivalents, end of period $ 14,035 $ 15,705
======== ========
CBRL GROUP, INC.
Supplemental Information
(Unaudited)
As of As of As of
4/30/04 8/1/03 5/2/03
---------- ---------- ----------
Common shares outstanding 48,706,391 47,872,542 48,350,589
========== ========== ==========
Units in operation:
Cracker Barrel 496 480 472
Logan's Roadhouse - company-owned 107 96 96
---------- ---------- ----------
Total company-owned units 603 576 568
Logan's Roadhouse - franchised 19 16 13
---------- ---------- ----------
System-wide units 622 592 581
========== ========== ==========
Third Quarter Ended Nine Months Ended
Net sales in company- 4/30/04 5/2/03 4/30/04 5/2/03
owned stores: -------- -------- ---------- ----------
(In thousands)
Cracker Barrel -
restaurant $394,926 $360,862 $1,157,117 $1,076,876
Cracker Barrel - retail 103,715 93,685 378,467 336,517
-------- -------- ---------- ----------
Cracker Barrel - total 498,641 454,547 1,535,584 1,413,393
Logan's Roadhouse 85,106 72,278 236,454 203,530
-------- -------- ---------- ----------
Total net sales 583,747 526,825 1,772,038 1,616,923
Franchise fees and
royalties 535 364 1,410 924
-------- -------- ---------- ----------
Total revenue $584,282 $527,189 $1,773,448 $1,617,847
======== ======== ========== ==========
Operating weeks -
company-owned stores:
Cracker Barrel 6,417 6,127 19,000 18,120
Logan's Roadhouse 1,366 1,238 3,962 3,543
Average comparable store
sales - company-owned
stores: (In thousands)
Cracker Barrel -
restaurant $ 800.5 $ 763.3 $ 2,377.1 $ 2,309.8
Cracker Barrel - retail 208.3 196.1 772.5 716.1
-------- -------- ---------- ----------
Cracker Barrel - total $1,008.8 $ 959.4 $ 3,149.6 $ 3,025.9
======== ======== ========== ==========
Logan's Roadhouse $ 796.6 $ 742.5 $ 2,281.7 $ 2,184.8
======== ======== ========== ==========
Capitalized interest $ 140 $ 104 $ 428 $ 345
======== ======== ========== ==========
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