For the first six months of 2012, J. Alexander's Corporation recorded net sales of $82,897,000, up 4.5% from $79,313,000 reported in the first two quarters of 2011. The Company recorded net income of $2,642,000, or $.42 per diluted share, compared to net income of $1,119,000, or $.18 per diluted share, posted in the comparable two periods of 2011.
General and administrative expenses for the first half of 2012 included pre-tax charges, consisting primarily of legal and professional fees, associated with the evaluation of strategic alternatives for the Company and the possible contested election of directors totaling approximately $1,050,000. Excluding these charges which on an after tax basis were approximately $910,000, net income for the six-month period would have been $3,552,000, or $.57 per diluted share.
J. Alexander's Corporation’s average weekly same store sales per restaurant were $96,600 in the first six months of 2012, up 4.3% from $92,600 recorded in the first two quarters of 2011.
The Company’s average guest counts for the first six months of 2012 decreased 1.4% from the comparable six months of 2011. The average guest check, including alcoholic beverage sales, increased 5.7% to $28.04. The effect of menu price increases for the first two quarters of 2012 was approximately 4.1% compared to the same period of the prior year.
Cost of sales for the first six months of 2012 was 31.5%, a decrease from 33.1% in the comparable six month period of 2011. Restaurant labor and related costs for the first two quarters of the current year decreased to 32.9% of net sales from 33.0% of net sales in the same two periods of 2011, and other restaurant operating expenses decreased to 19.9% of net sales for the first half of 2012 compared to 21.2% for the first half of 2011. For the first six months of 2012, J. Alexander's Corporation had restaurant operating margins of 12.1%, up from 8.9% in the first two quarters of 2011.