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Cracker Barrel Reports Results For Second Quarter Fiscal 2013

Cracker Barrel Old Country Store, Inc. (Nasdaq: CBRL) was established in 1969 in Lebanon, Tenn. and operates 621 company-owned locations in 42 states. Every Cracker Barrel store is open seven days a week with hours Sunday through Thursday, 6 a.m. – 10 p.m., and Friday and Saturday, 6 a.m. - 11 p.m. For more information, visit: crackerbarrel.com.

CBRL-F

Except for specific historical information, certain 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 concerning matters that involve risks, uncertainties and other factors which may cause the actual performance of Cracker Barrel Old Country Store, Inc. and its subsidiaries to differ materially from those expressed or implied by this discussion. All forward-looking information is subject to completion of our financial procedures for Q2 FY13 and is provided pursuant to the safe harbor established under the Private Securities Litigation Reform Act 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 such as "trends," "assumptions," "target," "guidance," "outlook," "opportunity," "future," "plans," "goals," "objectives," "expectations," "near-term," "long-term," "projection," "may," "will," "would," "could," "expect," "intend," "estimate," "anticipate," "believe," "potential," "should," "projects," "forecasts," or "continue" (or the negative or other derivatives of each of these terms) or similar terminology and include the expected effects of operational improvement initiatives, such as new menu items and retail offerings. Factors which could materially affect actual results include, but are not limited to: the effects of uncertain consumer confidence, higher costs for energy, general or regional economic weakness, weather on sales and customer travel, and discretionary income or personal expenditure activity of our customers; our ability to identify, acquire and sell successful new lines of retail merchandise and new menu items at our restaurants; our ability to successfully implement or sustain plans intended to improve operational or marketing execution and performance; changes in or implementation of additional governmental or regulatory rules, regulations and interpretations affecting tax, wage and hour matters, health and safety, pensions, insurance or other undeterminable areas; our ability to successfully implement plans intended to promote or protect our brands and products; commodity price increases; the ability of and cost to us to recruit, train, and retain qualified hourly and management employees in an escalating wage environment; the effects of increased competition at our locations on sales and on labor recruiting, cost, and retention; workers' compensation, group health and utility price changes; consumer behavior based on negative publicity or concerns over nutritional or safety aspects of our food or products or those of the restaurant industry in general, including concerns about pandemics, as well as the possible effects of such events on the price or availability of ingredients used in our restaurants; the effects of our substantial indebtedness and associated restrictions on our financial and operating flexibility and ability to execute or pursue our operating plans and objectives; changes in interest rates or capital market conditions affecting our financing costs and ability to refinance all or portions of our indebtedness; the effects of business trends on the outlook for individual restaurant locations and the effect on the carrying value of those locations; the availability and cost of suitable sites for restaurant development and our ability to identify those sites; changes in land, building materials and construction costs; the actual results of pending, future or threatened litigation or governmental investigations and the costs and effects of negative publicity associated with these activities; practical or psychological effects of natural disasters or terrorist acts or war and military or government responses; disruptions to our restaurant or retail supply chain; changes in foreign exchange rates affecting our future retail inventory purchases; implementation of new or changes in interpretation of existing accounting principles generally accepted in the United States of America; and other factors described from time to time in our filings with the Securities and Exchange Commission, press releases, and other communications.

Any forward-looking statement made by us herein, or elsewhere, speaks only as of the date on which made. We expressly disclaim any intent, obligation or undertaking to update or revise any forward-looking statements made herein to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based.

           
CRACKER BARREL OLD COUNTRY STORE, INC.
CONDENSED CONSOLIDATED INCOME STATEMENT
(Unaudited)
(In thousands, except share and per share amounts, percentages and ratios)
 

Second Quarter Ended

Six Months Ended

            Percentage             Percentage
  2/1/13     1/27/12   Change   2/1/13     1/27/12   Change
Total revenue $ 702,671 $ 673,234 4 % $ 1,330,122 $ 1,271,671 5 %
Cost of goods sold   244,187     235,391   4   442,045     421,698   5
Gross profit 458,484 437,843 4 888,077 849,973 5
Labor and other related expenses 244,871 234,933 4 477,610 455,901 5
Other store operating expenses   122,586     119,136   3   238,451     228,180   5
Store operating income 91,027 83,774 9 172,016 165,892 4
General and administrative expenses   33,830     36,437   (7 )   69,511     73,931   (6 )
Operating income 57,197 47,337 21 102,505 91,961 12
Interest expense   10,293     11,025   (7 )   21,005     22,160   (5 )
Pretax income 46,904 36,312 29 81,500 69,801 17
Provision for income taxes   11,736     10,703   10   23,140     20,390   14
Net income $ 35,168   $ 25,609   37 $ 58,360   $ 49,411   18
 
Earnings per share – Basic: $ 1.48   $ 1.11   33 $ 2.47   $ 2.16   14
Earnings per share – Diluted: $ 1.47   $ 1.10   34 $ 2.45   $ 2.13   15
 
Weighted average shares:
Basic 23,711,235 22,968,002 3 23,644,405 22,919,451 3
Diluted 23,945,236 23,306,177 3 23,866,431 23,225,963 3
 

Ratio Analysis

Total revenue:
Restaurant 75.2 % 74.8 % 77.6 % 77.5 %
Retail   24.8     25.2     22.4     22.5  
Total revenue 100.0 100.0 100.0 100.0
Cost of goods sold   34.8     35.0     33.2     33.2  
Gross profit 65.2 65.0 66.8 66.8
Labor and other related expenses 34.8 34.9 35.9 35.9
Other store operating expenses   17.4     17.7     18.0     17.9  
Store operating income 13.0 12.4 12.9 13.0
General and administrative expenses   4.9     5.4     5.2     5.8  
Operating income 8.1 7.0 7.7 7.2
Interest expense   1.4     1.6     1.6     1.7  
Pretax income 6.7 5.4 6.1 5.5
Provision for income taxes   1.7     1.6     1.7     1.6  
Net income   5.0 %   3.8 %   4.4 %   3.9 %
 
           

CRACKER BARREL OLD COUNTRY STORE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited and in thousands, except share amounts)

 

2/1/13

8/3/12

Assets
Cash and cash equivalents $ 186,148 $ 151,962
Property held for sale 882 884
Accounts receivable 13,338 14,609
Inventory 139,567 143,267
Prepaid expenses 19,229 11,405
Deferred income taxes 9,206 15,181
Property and equipment, net 1,017,930 1,022,370
Other long-term assets 59,301 59,314
Total assets $ 1,445,601 $ 1,418,992
 
Liabilities and Shareholders’ Equity
Accounts payable $ 85,109 $ 101,271
Other current liabilities 220,585 217,788
Long-term debt 512,500 525,036
Interest rate swap liability 14,911 14,166
Other long-term obligations 116,660 114,897
Deferred income taxes 61,543 63,159
Shareholders’ equity, net 434,293 382,675
Total liabilities and shareholders’ equity $ 1,445,601 $ 1,418,992
 
Common shares issued and outstanding 23,728,808 23,473,024
 
     
CRACKER BARREL OLD COUNTRY STORE, INC.
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
(Unaudited and in thousands)
 
Six Months Ended
2/1/13       1/27/12
Cash flows from operating activities:
Net income $ 58,360 $ 49,411
Depreciation and amortization 32,357 31,339
Loss on disposition of property and equipment 1,465 1,258
Share-based compensation, net of excess tax benefit 4,120 5,791
Increase in inventories 3,700 14,371
(Decrease) in accounts payable (16,162 ) (6,087 )
Net changes in other assets and liabilities (2,860 ) 17,876
Net cash provided by operating activities 80,980 113,959
Cash flows from investing activities:
Purchase of property and equipment, net of insurance recoveries (29,329 ) (38,719 )
Proceeds from sale of property and equipment 333 477
Net cash used in investing activities (28,996 ) (38,242 )
Cash flows from financing activities:
Net payments for credit facilities and other long-term obligations (58 ) (76 )
Proceeds from exercise of share-based compensation awards 2,622 2,137
Excess tax benefit from share-based compensation 1,289 155
Dividends on common stock (21,651 ) (10,822 )
Net cash used in financing activities (17,798 ) (8,606 )
 
Net increase in cash and cash equivalents 34,186 67,111
Cash and cash equivalents, beginning of period 151,962 52,274
Cash and cash equivalents, end of period $ 186,148 $ 119,385
 
           
CRACKER BARREL OLD COUNTRY STORE, INC.
Supplemental Information
(Unaudited)
 
Second Quarter Ended Six Months Ended
2/1/13       1/27/12 2/1/13       1/27/12
 
Units in operation:
Open at beginning of period 620 606 616 603
Opened during period 1 2 5 5
Open at end of period 621 608 621 608
 
Total revenue: (In thousands)
Restaurant $ 528,155 $ 503,531 $ 1,032,469 $ 985,040
Retail 174,516 169,703 297,653 286,631
Total revenue $ 702,671 $ 673,234 $ 1,330,122 $ 1,271,671
 
Cost of goods sold: (In thousands)
Restaurant $ 146,338 $ 138,456 $ 281,521 $ 266,152
Retail 97,849 96,935 160,524 155,546
Total cost of goods sold $ 244,187 $ 235,391 $ 442,045 $ 421,698

Average unit volume: (In thousands)

Restaurant $ 850.5 $ 828.3 $ 1,665.7 $ 1,625.5
Retail 281.0 279.1 480.2 473.0
Total $ 1,131.5 $ 1,107.4 $ 2,145.9 $ 2,098.5
 

Operating weeks:

8,073

7,903

16,116

15,756

 

 

     

Q2 2013 vs. Q2 2012

     

6 mo. 2013 vs. 6 mo. 2012

 
Comparable store sales period to period increase:
Restaurant 3.3 %

3.3

%

Retail 3.1 %

2.5

%

 
Number of locations in comparable store base

600

596

 

CRACKER BARREL OLD COUNTRY STORE, INC. Reconciliation of GAAP basis operating results to adjusted non-GAAP operating results (Unaudited and in thousands)

The Company makes reference in this release to “adjusted store operating income,” “adjusted operating income,” “adjusted net income,” “adjusted earnings per diluted share,” and “adjusted general and administrative expenses,” excluding the impact of severance and proxy contest expenses and the retroactive restatement of the work opportunities tax credit. The Company believes that excluding these items and their related tax effects from its financial results reflects operating results that are more indicative of the Company's ongoing operating performance while improving comparability to prior periods, and as such, may provide investors with an enhanced understanding of the Company's past financial performance and prospects for the future. This information is not intended to be considered in isolation or as a substitute for operating income, net income, or earnings per share or expense information prepared in accordance with GAAP.

         
Second Quarter ended February 1, 2013 Second Quarter ended January 27, 2012
As Reported     Adjust     As Adjusted As Reported     Adjust     As Adjusted
(1) (2) (3) (1)
 
Store operating income $ 91,027 $ - $ 91,027 $ 83,774 $ - $ 83,774
General and administrative expenses   33,830   (1,726 )   32,104   36,437   (3,249 )   33,188
Operating income 57,197 1,726 58,923 47,337 3,249 50,586
Interest Expense   10,293   -     10,293   11,025   -     11,025
Pretax income 46,904 1,726 48,630 36,312 3,249 39,561
Provision for income taxes   11,736   2,637     14,373   10,703   958     11,661
Net income $ 35,168 $ (911 ) $ 34,257 $ 25,609 $ 2,291   $ 27,900
 
Earning per share - Basic $ 1.48 (0.04 ) $ 1.44 $ 1.11 $ 0.10 $ 1.21
Earning per share - Diluted $ 1.47 (0.04 ) $ 1.43 $ 1.10 $ 0.10 $ 1.20
 
Six months ended February 1, 2013 Six months ended January 27, 2012
As Reported Adjust As Adjusted As Reported Adjust As Adjusted
(1) (2) (3) (1)
 
Store operating income $ 172,016 $ - $ 172,016 $ 165,892 $ - $ 165,892
General and administrative expenses   69,511   (5,634 )   63,877   73,931   (5,203 )   68,728
Operating income 102,505 5,634 108,139 91,961 5,203 97,164
Interest Expense   21,005   -     21,005   22,160   -     22,160
Pretax income 81,500 5,634 87,134 69,801 5,203 75,004
Provision for income taxes   23,140   3,847     26,987   20,390   1,520     21,910
Net income $ 58,360 $ 1,787   $ 60,147 $ 49,411 $ 3,683   $ 53,094
 
Earning per share - Basic $ 2.47 $ 0.07 $ 2.54 $ 2.16 $ 0.16 $ 2.32
Earning per share - Diluted $ 2.45 $ 0.07 $ 2.52 $ 2.13 $ 0.16 $ 2.29
(1) Charges and tax effects of the proxy contest concluded at the Company's annual meeting of shareholders.
(2) Severance, other charges and tax effects related to organizational changes.
(3) Provision for taxes adjusted to exclude the $2.1 million prior year favorable effect of the retroactive reinstatement of the work opportunity tax credit.
 




Stock quotes in this article: CBRL 

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