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J. Alexander’s Corporation Reports Results For First Quarter Of 2012 Fiscal Year

J. Alexander’s Corporation is headquartered in Nashville, Tennessee.

Forward Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties. Actual results, performance or developments could differ materially from those expressed or implied by those forward-looking statements as a result of known or unknown risks, uncertainties and other factors. These risks, uncertainties and factors include the Company’s ability to maintain satisfactory guest count levels and maintain or increase sales and operating margins in its restaurants under varying economic conditions, which could worsen, potentially resulting in additional asset impairment charges and/or restaurant closures and charges associated therewith; the effect of higher gasoline prices or commodity prices, unemployment and other economic factors on consumer demand; increases in food input costs or product shortages and the Company’s response to them; changes in consumer spending, consumer tastes, and consumer attitudes toward nutrition and health; the potential impact of mandated food content labeling and disclosure legislation; costs that may be incurred in connection with the contested election of directors; expenses incurred if the Company is the subject of claims or litigation, including matters resulting from complaints or allegations from current, former or prospective employees, or increased governmental regulation; the impact associated with recently passed federal health care reform legislation, including the operating costs necessary to comply with applicable health care benefit requirements; the impact of tax audits conducted by the Internal Revenue Service and various state tax authorities; increases in the minimum wage the Company is required to pay; availability of qualified employees; increased cost of utilities, insurance and other restaurant operating expenses; potential fluctuations of quarterly operating results due to seasonality and other factors; the effect of hurricanes and other weather disturbances which are beyond the control of the Company; the number and timing of new restaurant openings and the Company’s ability to operate them profitably; competition within the casual dining industry, which is very intense; competition by the Company’s new restaurants with its existing restaurants in the same vicinity; fluctuations in the Company’s operating results which could affect compliance with its debt covenants and ability to borrow funds; conditions in the U.S. credit markets and the availability of bank financing on acceptable terms; changes in accounting standards, which may affect the Company’s reported results of operations; and expenses the Company may incur in order to comply with changing corporate governance and public disclosure requirements of the Securities and Exchange Commission and The NASDAQ Stock Market. These as well as other factors are discussed in detail in the Company’s filings made with the Securities and Exchange Commission and other communications.

 

J. Alexander's Corporation and Subsidiaries Consolidated Statements of Income (Unaudited in thousands, except per share amounts)

 
 
    Quarter Ended
April 1   April 3
2012 2011
 
 
Net sales $ 42,711 $ 40,749
Costs and expenses:
Cost of sales 13,467 13,452
Restaurant labor and related costs 13,745 13,204

Depreciation and amortization of restaurant property and equipment

1,452 1,466
Other operating expenses   8,224   8,407
Total restaurant operating expenses 36,888 36,529
General and administrative expenses   2,685   2,444
Operating income 3,138 1,776
Other income (expense):
Interest expense (403 ) (424 )
Other, net   22   20
Total other expense   (381 )   (404 )
Income before income taxes 2,757 1,372
Income tax provision   336   310
Net income $ 2,421 $ 1,062
 
Earnings per share:
Basic earnings per share $ .40 $ .18
Diluted earnings per share $ .39 $ .18
 
Weighted average number of shares:
Basic earnings per share 5,994 5,978
Diluted earnings per share 6,180 6,058
       

J. Alexander's Corporation and SubsidiariesConsolidated Statements of IncomePercentages of Net Sales (Unaudited)

 
Quarter Ended
April 1 April 3
2012 2011
Net sales 100.0 % 100.0 %
Costs and expenses:
Cost of sales 31.5 33.0
Restaurant labor and related costs 32.2 32.4

Depreciation and amortization of restaurant property and equipment

3.4 3.6
Other operating expenses   19.3     20.6  
Total restaurant operating expenses 86.4 89.6
General and administrative expenses   6.3     6.0  
Operating income 7.3 4.4
Other income (expense):
Interest expense (0.9 ) (1.0 )
Other, net   0.1      
Total other expense   (0.9 )   (1.0 )
Income before income taxes 6.5 3.4
Income tax provision   0.8     0.8  
Net income   5.7 %   2.6 %
 

Note: Certain percentage totals do not sum due to rounding.

 
Average Weekly Sales Information:
 
Average weekly sales per restaurant $

99,600

$

95,300

Percent change

4.5

%

 
Same store weekly sales per restaurant $

99,600

$

95,300

Percent change 4.5 %
       

J. Alexander's Corporation and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited in thousands)

 
April 1 January 1
2012 2012
ASSETS
Current Assets
Cash and cash equivalents $ 9,330 $ 7,917
Other current assets   9,797   9,493
Total current assets 19,127 17,410
 
Other assets 1,892 1,797
Property and equipment, net 71,865 71,955
Deferred income taxes 152 152
Deferred Charges, net   391   416
$ 93,427 $ 91,730
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
 
Current liabilities $ 12,437 $ 13,068
Long-term debt and capital lease obligations 17,055 17,356
Other long-term liabilities 11,645 11,521
Stockholders’ equity   52,290   49,785
$ 93,427   $ 91,730
 
 




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