UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES
EXCHANGE ACT OF 1934
Date
of
Report (date of earliest event reported): September
19, 2006
CBRL
GROUP, INC.
|
Tennessee
|
0-25225
|
62-1749513
|
|
(State
or Other Jurisdiction
|
(Commission
File Number)
|
(I.R.S.
Employer
|
|
of
Incorporation)
|
Identification
No.)
|
305
Hartmann Drive, Lebanon, Tennessee 37087
(615)
444-5533
Check
the
appropriate box if the Form 8-K filing is intended to simultaneously satisfy
the
filing obligation of the registrant under any of the following
provisions:
[
]
Written communications pursuant to Rule 425 under the Securities Act (17
CFR
230.425)
[
]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[
]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act
(17 CFR 240.14d-2(b))
[
]
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act
(17 CFR 240.13e-4(c))
Item
2.02. Results of Operations and Financial Condition.
On
September 19, 2006, CBRL Group, Inc. issued the press release that is furnished
as Exhibit 99.1 to this Current Report on Form 8-K, which by this reference
is
incorporated herein as if copied verbatim, with respect to fiscal 2006 fourth
quarter and full-year results, fiscal 2007 outlook, other information and
the
conference call to be held to discuss this information.
Item
7.01. Regulation FD Disclosure.
The
information set forth in Item 2.02 above is incorporated by reference as
if
fully set forth herein.
Item
9.01. Financial
Statements and Exhibits.
(d)
Exhibits.
99.1 Press
Release issued by CBRL Group, Inc. dated September 19, 2006.
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant
has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
|
Dated:
September 19, 2006
|
CBRL
GROUP, INC.
|
|
|
By:
|
/s/
N.B. Forrest Shoaf
|
|
|
Name:
|
N.B.
Forrest Shoaf
|
|
|
Title:
|
Senior
Vice President, Secretary
|
|
|
and
General Counsel
|
LEBANON, TENNESSEE
37088-0787
PHONE
615.443.9869
C B R L GROUP,
INC.
|
Investor
Contact:
|
Diana
S. Wynne
|
|
Senior
Vice President, Corporate Affairs
|
|
|
(615)
443-9837
|
|
Media
Contact:
|
Julie
K. Davis
|
|
Director
Corporate Communications
|
|
|
(615)
443-9266
|
|
CBRL
GROUP, INC. ANNOUNCES INCREASE IN DILUTED NET INCOME PER
SHARE
|
|
FOR
FISCAL 2006 FOURTH QUARTER
|
|
Announces
Full-Year Fiscal 2006 Results
|
|
Provides
Fiscal 2007
Outlook
|
LEBANON,
Tenn. (September 19, 2006) -- CBRL Group, Inc. (“CBRL” or the “Company”)
(Nasdaq: CBRL) today announced results for its fourth quarter and fiscal year
ended July 28, 2006, reporting diluted net income per share of $1.03, a 39.2%
increase from $0.74 in the fourth quarter of fiscal 2005. Diluted net income
per
share for the quarter benefited from the Company’s recent recapitalization, in
which it repurchased approximately 35% of its outstanding shares financed by
a
new $725 million term loan, and from a lower income tax rate. For the full
year,
the Company reported diluted net income per share of $2.50 compared with $2.45
in fiscal 2005.
Highlights
of the
2006 fourth-quarter and full-year results include:
|
|
Comparable store restaurant sales for the fourth quarter were down 3.0% for Cracker Barrel Old Country StoreÒ (“Cracker Barrel”), while comparable store retail sales at Cracker Barrel were down 4.9% |
|
|
Comparable restaurant sales for the fourth quarter were flat for Logan’s Roadhouse® (“Logan’s”) |
|
|
Total
revenue for the fourth quarter of $671 million was up 1.7% from
the
year-ago quarter
|
|
|
Operating
income margin in the fourth quarter was 8.9% of total revenues
compared to
9.0% in the year-ago quarter
|
|
|
Net
income and diluted net income per share for the fourth quarter
were $35.8
million and $1.03, respectively, compared to net income of $37.6
million
and diluted net income per share of $0.74 in the
prior-year comparable period. The fourth quarter of fiscal 2006
was the
first quarter that fully reflected the Company’s recent recapitalization,
which had the effect of reducing net income due to higher interest
on
additional debt, while increasing diluted net income per share
due to a
reduction in the number of shares
outstanding
|
CBRL Announces Fourth Quarter Results
Page 2
September 19, 2006
|
|
Full
year diluted net income per share for 2006 was $2.50, an increase
of 2.0%
over 2005, on a 2.9% increase in total
revenue.
|
Commenting
on the quarter, CBRL Chairman, President and Chief Executive Officer Michael
A.
Woodhouse said, “Fiscal 2006 was a difficult year from a revenue perspective due
to both internal and external factors, including last fall’s devastating
hurricane season and the continuing pressure on consumer discretionary income
as
gasoline prices soared to record levels. Despite these challenges, we are
quite
pleased to have achieved the solid results reported today. More importantly,
we
are making progress on improving our future results as we lap last year’s
difficult environment and begin to see the benefits from our efforts, especially
in our retail operations, and from our recapitalization
initiatives.”
Fourth-Quarter
Fiscal 2006 Results
Revenue
Total
revenue for the fourth quarter ended July 28, 2006 of $671.1 million increased
1.7% from the fourth quarter of 2005. Comparable store restaurant sales
at
Cracker Barrel for the period decreased 3.0%, including a 1.0% higher average
check, while guest traffic declined 4.0%. Cracker Barrel’s average menu price
increase for the quarter was approximately 0.9% compared with last year.
Comparable store retail sales at Cracker Barrel decreased 4.9% for the
quarter.
At Logan’s, comparable restaurant sales for the quarter were flat, as the
average check increased 1.7% while guest traffic declined 1.7%. Logan’s average
menu price increased approximately 1.7 % during the fourth quarter compared
with
last year. During the quarter, the Company opened four new Cracker Barrel
units,
and seven new Logan’s company-operated restaurants.
Income
Operating
income for the fourth quarter of 2006 of $60.0 million was 8.9% of
total revenue
compared to $59.5 million, or 9.0% of revenue, in the fourth quarter
of fiscal
2005. Net income for the fourth quarter of 2006 was $35.8 million,
or $1.03 per
diluted share, compared to net income of $37.6 million, or $0.74 per
diluted
share in the fourth quarter of 2005. In fiscal 2006, the Company began
expensing
stock options, recording in the fourth quarter $2.3 million of expense
before
income taxes (0.4% of revenues) that was not reflected in the year
earlier
quarter. Other expense items affecting fourth quarter results related
to the
Company’s recapitalization, including interest expense, the planned divestiture
of Logan’s, previously announced severance expenses at Cracker Barrel, and
higher utilities expenses and retail cost of goods sold. Margins were
also
adversely impacted by the effect of softer sales. Offsetting these
unfavorable
effects were lower food cost of goods sold reflecting favorable commodity
costs,
improved menu pricing and reduced waste. The Company also benefited
from
improved hourly labor and workers’ compensation expense, including the effects
of reduced actuarial estimates of losses, favorable gift card breakage,
lower
advertising expense, and lower annual bonus accruals. Other favorable
items
include gains on the disposition of certain of the locations closed
by the
Company in the third fiscal quarter and insurance recoveries from last
year’s
hurricane season. Net income benefited from lower effective state and
local
income tax rates, completion of a
-MORE-
CBRL Announces Fourth Quarter Results
Page 3
September 19, 2006
federal
audit and higher than expected tax credits. Diluted net income per share
reflected fewer shares outstanding compared with the year-ago period as a
result
of the recapitalization earlier in the fiscal year.
Full-Year
Fiscal 2006 Results
Full
year
fiscal 2006 revenue of $2.6 billion increased 2.9% from 2005. Comparable
store
restaurant sales year-to-date for Cracker Barrel decreased 1.1%, including
a
2.1% higher average check, while guest traffic declined by 3.2%. Comparable
store retail sales at Cracker Barrel decreased 8.1% for the year. Logan’s fiscal
2006 comparable restaurant sales increased 0.8%, as average check increased
2.4%, while guest traffic declined 1.6%. In 2006, the Company opened
21 new
Cracker Barrel units and 20 new Logan’s company-operated restaurants while
franchisees opened an additional two new Logan’s franchised
restaurants.
The
Company reported net income for 2006 of $116.3 million, or $2.50 per
diluted
share, compared to net income of $126.6 million, or $2.45 per diluted
share, for
2005. Fiscal 2006 results included stock option expense of approximately
$6.9
million after income taxes, or $0.15 per diluted share. In addition,
during
fiscal 2006, the Company had incurred expenses for store closings and
impairment
charges net of the gains on disposition of certain of those properties,
expenses
related to the implementation of the Company’s strategic initiatives including
higher interest expense, organizational restructuring expenses, and
higher
utilities expenses. The Company benefited during the year from a favorable
commodities environment, lower hourly labor and workers’ compensation expense,
as well as a lower effective income tax rate and fewer shares
outstanding.
The
Company urges caution in considering its current trends and the outlook
disclosed 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 obligations to update disclosed information
on trends
or targets other than in its periodic filings on Forms 10-K, 10-Q,
and 8-K with
the Securities and Exchange Commission.
The
Company commented on its outlook for fiscal 2007 and announced
that it is
adopting a practice of providing guidance on full fiscal year targets
rather
than quarterly expectations or objectives. The Company noted that
its outlook
reflects many assumptions, many of which cannot be known, including,
very
importantly, sales expectations and the effects of a possible Logan’s
divestiture. In anticipation of divesting Logan’s during fiscal 2007, the
Company’s outlook addresses expectations for results of continuing operations
for Cracker Barrel, excluding Logan’s, and can be compared to the pro-forma
historical results from continuing operations for Cracker Barrel,
excluding
Logan’s, presented in the financial tables at the end of this release.
The
Company presently expects fiscal 2007 total revenues from Cracker
Barrel of
approximately $2.4 billion, reflecting opening 19-20 new Cracker
Barrel stores
during the year, full-year comparable store restaurant sales that
are flat to up
2% and full-year
-MORE-
CBRL Announces Fourth Quarter Results
Page 4
September 19, 2006
comparable
store retail sales that are up 7-9% compared to prior year (on a comparable
week
basis), and the benefit of an estimated $45-50 million in sales from a 53rd
week
in fiscal 2007. The Company presently expects fiscal 2007 operating income
margins from continuing operations to be flat to 0.2% of revenues higher
than in
fiscal 2006. The Company’s margin expectations reflect lower food and retail
product costs and the non-recurrence of certain impairment and store closing
costs incurred in fiscal 2006, partly offset by higher marketing expenses.
Certain expenses related to the Company’s strategic initiatives begun in fiscal
2006 will continue into fiscal 2007. The Company expects the effect of the
53rd
week to be margin neutral, including the impact of plans for additional spending
to support advertising tests during the year. The Company presently expects
fiscal 2007 capital expenditures of up to $115 million, excluding
Logan’s.
Commenting
on the outlook, Mr. Woodhouse said, “Fiscal 2007 will be a transition year for
CBRL. We believe that we are in the final stages of the Logan’s divestiture
which will leave only the potential refinancing of our existing convertible
debt
to conclude the strategic initiatives we began in Fiscal 2006. While the
exact
timing of the expected divestiture, the exact amount to be received, and
the use
of the proceeds are still to be determined, we are completely focused on
Cracker
Barrel’s future with a leadership team that brings considerable industry and
functional experience to the task. We expect high single-digit percentage
revenue growth from same store sales improvements and new store openings,
as
well as a 53rd week, and flat to slightly improved operating margins. We
are
investing to sustain the strength of our brand and to create long-term
shareholder value.”
Historical
CBRL Financial Results
The
Company provided certain full-year and/or quarterly historical CBRL
operating results, excluding Logan’s, at the end of this press release. Also
included for 2006 are pro forma depreciation and amortization expense
and
capital expenditures, excluding Logan’s.
Fiscal
2007 Calendar for Press Releases Disclosing Financial
Results
The
Company announced its calendar for scheduled press releases disclosing its
financial results and annual outlook during fiscal 2007. Dates and content
of
press releases are preliminary and subject to change. The expected schedule
is
as follows:
|
September
26, 2006:
Sales results for 4 weeks ending September 22, 2006
|
|
October
31,2006: Sales
results for 5 weeks ending October 27, 2006
|
|
November
21, 2006:
Financial results for first quarter of fiscal 2007, update to
2007 annual
outlook
|
|
November
28,2006:
Sales results for 4 weeks ending November 24, 2006
|
|
December
28, 2006: Sales
results for 4 weeks ending December 22, 2006
|
|
January
30, 2007:
Sales results for 5 weeks ending January 26, 2006
|
|
February
20, 2007:
Financial results for second quarter of fiscal 2007, update to
2007 annual
outlook
|
-MORE-
|
CBRL Announces Fourth Quarter Results
Page 5
September 19, 2006
|
|
February
27, 2007:
Sales results for 4 weeks ending February 23, 2007
|
|
March
27, 2007:
Sales results for 4 weeks ending March 23, 2007
|
|
May
1, 2007:
Sales results for the 5 weeks ending April 27, 2007
|
|
May
22, 2007:
Financial results for third quarter of fiscal 2007, update to
2007 annual
outlook
|
|
May
30, 2007: Sales
results for 4 weeks ending May 25, 2007
|
|
June
26, 2007: Sales
results for 4 weeks ending June 22, 2007
|
|
August
7, 2007: Sales
results for 6 weeks ending August 3, 2007
|
|
September
5, 2007:
Sales results for 4 weeks ending August 31, 2007
|
|
September
18, 2007:
Financial results for fourth quarter of fiscal 2007, annual outlook
for
fiscal 2008.
|
Fiscal
2006 Fourth-Quarter Conference Call
As
previously announced, the live broadcast of CBRL Group’s quarterly conference
call will be available to the public on-line at earnings.com
or
cbrlgroup.com
today
beginning at 11:00 a.m. (ET). The on-line replay will follow immediately
and
continue through September 26, 2006.
Headquartered
in Lebanon, Tennessee, CBRL Group, Inc. presently operates 544 Cracker
Barrel
Old Country Store restaurants and gift shops located in 41 states and
142
company-operated and 25 franchised Logan’s Roadhouse restaurants in 20
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
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 by this discussion. All forward-looking information
is
provided by the Company 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,” “plans,” “goals,” “objectives,” “expectations,”
“near-term,” “long-term,” “projection,” “may,” “will,” “would,” “could,”
“expect,” “intend,” “estimate,” “anticipate,” “believe,” “potential,” “regular,”
or “continue” (or the negative or other derivatives of each of these terms) or
similar terminology. Factors which could materially affect actual results
include, but are not limited to: the timing and ability of the Company
to
execute a successful divestiture of its Logan’s Roadhouse, Inc. subsidiary,
including the effects of changes in capital market or economic conditions
that
could affect valuations of restaurant companies; the effects of incurring
substantial indebtedness and associated restrictions on the Company’s financial
and operating flexibility and ability to execute or pursue its operating
plans
and objectives; the effects of uncertain consumer confidence, higher
costs for
energy, consumer debt payments, or general or regional economic weakness,
or
weather on sales and customer travel, discretionary income or personal
expenditure activity of our customers; the ability
-MORE-
CBRL Announces Fourth Quarter Results
Page 6
September 19, 2006
of
the Company to identify, acquire and sell successful new lines of retail
merchandise and new menu items at our restaurants; the ability of the Company
to
sustain or the effects of plans intended to improve operational 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;
the effects of plans intended to promote or protect the Company’s brands and
products; commodity, workers compensation, group health and utility price
changes; consumer behavior based on negative publicity or concerns over
nutritional or safety aspects of the Company’s products or restaurant food in
general, including concerns about E. coli bacteria, hepatitis A, “mad cow”
disease, “foot-and-mouth” disease, and bird flu, as well as the possible effects
of such events on the price or availability of ingredients used in our
restaurants; changes in interest rates or capital market conditions affecting
the Company’s financing costs or ability to obtain financing or execute
initiatives; the effects of business trends on the outlook for individual
restaurant locations and the effect on the carrying value of those locations;
the ability of the Company to retain key personnel during and after the
restructuring process; the ability of and cost to the Company to recruit,
train,
and retain qualified hourly and management employees; the effects of increased
competition at Company locations on sales and on labor recruiting, cost,
and
retention; the availability and cost of suitable sites for restaurant
development and our ability to identify those sites; changes in 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 the company’s restaurant or retail
supply chain; changes in foreign exchange rates affecting the Company’s future
retail inventory purchases; implementation of new or changes in interpretation
of existing accounting principles generally accepted in the United States
of
America (“GAAP”); effectiveness of internal controls over financial reporting
and disclosure; and other factors described from time to time in the Company’s
filings with the Securities and Exchange Commission, press releases, and
other
communications.
CBRL Announces Fourth Quarter Results
Page 7
September 19, 2006
|
CBRL
GROUP, INC.
|
|
CONDENSED
CONSOLIDATED INCOME STATEMENT
|
|
(Unaudited)
|
|
(In
thousands, except share
amounts)
|
Fourth
Quarter Ended
Fiscal Year Ended
|
7/28/06
|
7/29/05
|
Change
|
7/28/06
|
7/29/05
|
Change
|
||||||||||||||
| Total Revenue | $ |
671,
084
|
$ | 659,707 | 2 | % | $ | 2,642,997 | $ | 2,567,548 | 3 | % | |||||||
| Cost of goods sold | 208,636 | 207,112 | 1 | 845,644 | 847,045 | -- | |||||||||||||
| Gross profit | 462,448 | 452,595 | 2 | 1,797,353 | 1,720,503 | 4 | |||||||||||||
|
Labor & other related expenses
|
243,930 | 243,337 | -- | 963,922 | 939,849 | 3 | |||||||||||||
| Impairment and store closing charges | (1,471 | ) | -- | -- | 8,890 | 431 | 1963 | ||||||||||||
| Other store operating expenses | 119,338 | 115,947 | 3 | 479,165 | 445,455 | 8 | |||||||||||||
| Store operating income | 100,651 | 93,311 | 8 | 345,376 | 334,768 | 3 | |||||||||||||
| General and administrative | 40,662 | 33,775 | 20 | 155,847 | 132,606 | 18 | |||||||||||||
| Operating income | 59,989 | 59,536 | 1 | 189,529 | 202,162 | (6 | ) | ||||||||||||
| Interest expense | 14,782 | 2,177 | 579 | 22,298 | 8,693 | 157 | |||||||||||||
| Interest income | 700 | -- | -- | 818 | 96 | 752 | |||||||||||||
| Income before income taxes | 45,907 | 57,359 | (20 | ) | 168,049 | 193,565 | (13 | ) | |||||||||||
| Provision for income taxes | 10,107 | 19,798 | (49 | ) | 51,758 | 66,925 | (23 | ) | |||||||||||
| Net income | 35,800 | 37,561 | (5 | ) | 116,291 | 126,640 | (8 | ) | |||||||||||
| Net income per share: | |||||||||||||||||||
| Basic | $ | 1.16 | $ | 0.80 | 45 | $ | 2.71 | $ | 2.65 | 2 | |||||||||
| Diluted | $ | 1.03 | $ | 0.74 | 39 | $ | 2.50 | $ | 2.45 | 2 | |||||||||
| Weighted average shares: | |||||||||||||||||||
| Basic | 30,919,876 | 46,758,841 | (34 | ) | 42,917,319 | 47,791,317 | (10 | ) | |||||||||||
| Diluted | 35,974,358 | 52,204,963 | (31 | ) | 48,044,440 | 53,382,007 | (10 | ) | |||||||||||
| Ratio Analysis | |||||||||||||||||||
| Net Sales: | |||||||||||||||||||
| Restaurant | 83.8 | % | 83.2 | % | 82.1 | % | 80.7 | % | |||||||||||
| Retail | 16.1 | 16.7 | 17.8 | 19.2 | |||||||||||||||
| Total net sales | 99.9 | 99.9 | 99.9 | 99.9 | |||||||||||||||
| Franchise fees | 0.1 | 0.1 | 0.1 | 0.1 | |||||||||||||||
| Total revenue | 100.0 | 100.0 | 100.0 | 100.0 | |||||||||||||||
| Cost of goods sold | 31.1 | 31.4 | 32.0 | 33.0 | |||||||||||||||
| Gross profit | 68.9 | 68.6 | 68.0 | 67.0 | |||||||||||||||
| Labor & other related expenses | 36.3 | 36.9 | 36.5 | 36.6 | |||||||||||||||
| Impairment and store clsoing charges | (0.2 | ) | -- | 0.3 | -- | ||||||||||||||
| Other store operating expenses | 17.8 | 17.6 | 18.1 | 17.4 | |||||||||||||||
| Store operating income | 15.0 | 14.1 | 13.1 | 13.0 | |||||||||||||||
| General and administrative | 6.1 | 5.1 | 5.9 | 5.1 | |||||||||||||||
| Operating income | 8.9 | 9.0 | 7.2 | 7.9 | |||||||||||||||
| Interest expense | 2.2 | 0.3 | 0.8 | 0.4 | |||||||||||||||
| Interest income | 0.1 | -- | -- | -- | |||||||||||||||
| Income before income taxes | 6.8 | 8.7 | 6.4 | 7.5 | |||||||||||||||
| Provision for income taxes | 1.5 | 3.0 | 2.0 | 2.6 | |||||||||||||||
| Net income | 5.3 | % | 5.7 | % | 4.4 | % | 4.9 | % |
-MORE-
CBRL Announces Fourth Quarter Results
Page 8
September 19, 2006
|
CONDENSED CONSOLIDATED
BALANCE SHEET
|
|
(Unaudited
and in thousands)
|
|
7/28/06
|
7/29/05
|
||||||
| Assets | |||||||
| Cash and cash equivalents | $ | 89,562 | $ | 17,173 | |||
| Assets held for sale | 4,716 | -- | |||||
| Other current assests | 175,818 |
173,310
|
|||||
| Property and equipment, net | 1,270,084 | 1,218,298 | |||||
| Long-lived assets | 141,117 | 124,491 | |||||
| Total assets | 1,681,297 | 1,533,272 | |||||
| Liabilities and Shareholders' Equity | |||||||
| Current Liabilities | $ | 287,681 | $ | 295,345 | |||
| Long-term debt | 919,464 | 212,218 | |||||
| Other long-term obligations |
171,870
|
155,721 | |||||
| Shareholders' equity | 302,282 |
869,988
|
|||||
| Total liabilities and shareholders' equity | 1,681,297 | 1,533,272 | |||||
|
CONDENSED
CONSOLIDATED CASH FLOW STATEMENT
|
|
(Unaudited
and in thousands)
|
|
Fiscal
Year Ended
|
|
| 7/28/06 7/29/05 |
| Cash flow from operating activities: | |||||||
| Net income | $ | 116,291 | $ |
126,640
|
|||
| Depreciation and amortization | 72,278 |
67,321
|
|||||
| Loss on disposition of property and equipment | 1,859 | 3,654 | |||||
| Impairment charges |
7,662
|
431
|
|||||
| Accretion on zero-coupon notes | 5,747 | 5,579 | |||||
| Share-based compensation, net of excess tax benefit |
6,998
|
(11,729
|
)
|
||||
| Net changes in other assets and liabilities |
4,011
|
76,278 | |||||
|
Net
cash
provided by operating activities
|
214,846
|
268,174 | |||||
| Cash flows from investing activities: | |||||||
| Purchase of property and equipment, net of insurance recoveries | (144,926
|
)
|
(171,447
|
)
|
|||
| Proceeds from sale of property and equipment | 7,854 | 1,381 | |||||
| Net cash used in investing activities | (137,072 | ) | (170,066 | ) | |||
| Cash flows from financing activities: | |||||||
| Net proceeds from credit facilities and other long-term obligations |
701,268
|
21,312
|
|||||
| Proceeds from exercise of stock options |
27,283
|
38,080
|
|||||
| Excess tax benefit from share-based compensation |
6,441
|
12,990
|
|||||
| Purchase and retirement of common stock |
(704,160
|
)
|
(159,328
|
)
|
|||
| Other |
(12,198
|
)
|
-- | ||||
| Divedends on common stock |
(24,019
|
)
|
(22,764
|
)
|
|||
| Net cash used in financing activities |
(5,385
|
)
|
(109,710
|
)
|
|||
| Net increase/(decrease) in cash and cash equivalents |
72,389
|
(11,602
|
)
|
||||
| Cash and cash equivalents, beginning of period | 17,173 | 28,775 | |||||
| Cash and cash equivalents, end of period | $ | 89,562 | $ |
17,173
|
|||
-MORE-
CBRL Announces Fourth Quarter Results
Page 9
September 19, 2006
|
CBRL
GROUP, INC.
|
|
Supplemental
Information
|
|
(Unaudited)
|
|
As
of
7/28/06
|
As
of
7/29/05
|
As
of
4/28/06
|
||||||||
| Common shares outstanding |
30,926,906
|
46,619,803
|
47,661,958
|
|||||||
Fourth Quarter
Ended
Fiscal Year Ended
|
Units in operation:
|
|
|
7/28/06
|
|
|
7/29/05
|
|
|
7/28/06
|
|
|
7/29/05
|
|
| Cracker Barrel | |||||||||||||
| Open at beginning of period | 539 | 520 | 529 | 504 | |||||||||
| Opened during period | 4 | 9 | 21 | 25 | |||||||||
| Closed during period | -- | -- | (7 | ) | -- | ||||||||
| Open at end of period | 543 | 529 | 543 | 529 | |||||||||
| Logan's-- company-owned | |||||||||||||
| Open at beginning of period | 134 | 123 | 124 | 107 | |||||||||
| Opened during period | 7 | 1 | 20 | 17 | |||||||||
| Closed during period | -- | -- | (3 | ) | -- | ||||||||
| Open at end of period | 141 | 124 | 141 | 124 | |||||||||
| Total company-owned units | 684 | 653 | 684 | 653 | |||||||||
| Logan's-- franchised | |||||||||||||
| Open at beginning of period | 25 | 22 | 23 | 20 | |||||||||
| Opened during period | -- | 1 | 2 | 3 | |||||||||
| Closed during period | -- | -- | -- | -- | |||||||||
| Open at end of period | 25 | 23 | 25 | 23 | |||||||||
| System-wide uints | 709 | 676 | 709 | 676 | |||||||||
| Net sales in company-owned stores: | |||||||||||||
| (In thousands) | |||||||||||||
| Cracker Barrel - restaurant | $ | 455,065 | $ | 453,757 | $ | 1,748,193 | $ | 1,696,706 | |||||
| Cracker Barrel - retail | 108,194 | 109,935 | 471,282 | 494,160 | |||||||||
| Total revenue - Cracker Barrel | 563,259 | 563,692 | 2,219,475 | 2,190,866 | |||||||||
| Logan's revenue | $ | 107,205 | $ | 95,362 | $ | 421,055 | $ | 374,305 | |||||
| Franchise fees and royalties | 620 | 653 | 2,467 | 2,377 | |||||||||
| Total revenue - Logan's | 107,825 | $ | 96,015 | $ | 423,522 | $ | 376,682 | ||||||
| Operating weeks - company-owned stores: | |||||||||||||
| Cracker Barrel | 7,043 | 6,839 | 27,984 | 26,804 | |||||||||
| Logan's | 1,794 | 1,611 | 6,879 | 6,137 | |||||||||
| Average unit volume - company-owneed stores: (In thousands) | |||||||||||||
| Cracker Barrel - restaurant | $ | 840.0 | $ | 862.5 | $ |
3,248.5
|
$ | 3,291.6 | |||||
| Cracker Barrel - retail | 199.7 | 209.0 | 875.7 | 958.7 | |||||||||
| Cracker Barrel - total | $ | 1,039.7 | $ | 1,071.5 | $ | 4,124.2 | $ | 4,250.3 | |||||
| Logan's | $ | 776.8 | $ | 769.5 | $ | 3,182.9 | $ | 3,171.6 |
Comparable store sales period-to-period increase/(decrease):
Q4 2006 vs. Q4 2005 12mo
2006 vs. 12mo
2005
|
|
|
|
Cracker Barrel
|
|
|
Logan's
|
|
|
Cracker Barrel
|
|
|
Logan's
|
|
| Restaurant | (3.0 | %) | 0.0 | % | (1.1 | %) | 0.8 | % | |||||
| Retail | (4.9 | %) | (8.1 | %) | |||||||||
| Number of stores in comparable store base | 502 | 111 | 482 | 100 |
-MORE-
CBRL Announces Fourth Quarter Results
Page 10
September 19, 2006
|
CBRL
Group, Inc.
|
||||||||||||||||||||||
|
Pro-Forma
Statement of Income from Continuing Operations, Excluding
Logan’s
|
||||||||||||||||||||||
|
(Unaudited)
|
||||||||||||||||||||||
|
(In
millions)
|
||||||||||||||||||||||
|
Full
Year
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Full
Year
|
Full
Year
|
||||||||||||||||
|
Ending
|
Ending
|
Ending
|
Ending
|
Ending
|
Ending
|
Ending
|
||||||||||||||||
|
07/28/06
|
07/28/06
|
04/28/06
|
01/27/06
|
10/28/05
|
07/29/05
|
07/30/04
|
||||||||||||||||
|
|
||||||||||||||||||||||
|
Net
Revenues
|
||||||||||||||||||||||
|
Restaurant
|
$
|
1,748
|
$
|
455
|
$
|
432
|
$
|
435
|
$
|
426
|
$
|
1,697
|
$
|
1,574
|
||||||||
|
Retail
|
471
|
108
|
102
|
152
|
109
|
494
|
486
|
|||||||||||||||
|
Total
Net Revenues
|
2,219
|
563
|
534
|
587
|
535
|
2,191
|
2,060
|
|||||||||||||||
|
Franchise
fees
and royalties
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
|
Total
Revenue
|
2,219
|
563
|
534
|
587
|
535
|
2,191
|
2,060
|
|||||||||||||||
|
Cost
of goods sold
|
706
|
173
|
166
|
200
|
166
|
717
|
679
|
|||||||||||||||
|
Gross
profit
|
1,513
|
390
|
368
|
387
|
369
|
1,474
|
1,381
|
|||||||||||||||
|
Labor
and other related expenses
|
833
|
211
|
210
|
208
|
205
|
822
|
775
|
|||||||||||||||
|
Impairment
charges and store closing costs
|
5
|
(1
|
)
|
3
|
4
|
-
|
-
|
-
|
||||||||||||||
|
Other
store operating expenses
|
384
|
95
|
94
|
100
|
95
|
370
|
341
|
|||||||||||||||
|
Store
operating income
|
291
|
85
|
61
|
75
|
69
|
282
|
265
|
|||||||||||||||
|
General
and administrative (1)
|
132
|
34
|
32
|
32
|
33
|
113
|
111
|
|||||||||||||||
|
Operating
income
|
$
|
159
|
$
|
51
|
$
|
29
|
$
|
43
|
$
|
36
|
$
|
169
|
$
|
154
|
||||||||
|
Memo:
|
||||||||||||||||||||||
|
Depreciation
& Amortization
|
$
|
57
|
$
|
15
|
$
|
14
|
$
|
14
|
$
|
14
|
$
|
55
|
$
|
53
|
||||||||
|
Capital
Expenditures
|
89
|
25
|
19
|
22
|
23
|
125
|
108
|
|||||||||||||||
|
Ratio
Analysis
|
||||||||||||||||||||||
|
Net
Revenues
|
||||||||||||||||||||||
|
Restaurant
|
78.8
|
%
|
80.8
|
%
|
80.9
|
%
|
74.0
|
%
|
79.7
|
%
|
77.4
|
%
|
76.4
|
%
|
||||||||
|
Retail
|
21.2
|
19.2
|
19.1
|
26.0
|
20.3
|
22.6
|
23.6
|
|||||||||||||||
|
Total
Net Revenues
|
100.0
|
100.0
|
100.0
|
100.0
|
100.0
|
100.0
|
100.0
|
|||||||||||||||
|
Franchise
fees
and royalties
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
|||||||||||||||
|
Total
Revenue
|
100.0
|
100.0
|
100.0
|
100.0
|
100.0
|
100.0
|
100.0
|
|||||||||||||||
|
Cost
of goods sold
|
31.8
|
30.8
|
31.0
|
34.1
|
31.1
|
32.7
|
33.0
|
|||||||||||||||
|
Gross
profit
|
68.2
|
69.2
|
69.0
|
65.9
|
68.9
|
67.3
|
67.0
|
|||||||||||||||
|
Labor
and other related expenses
|
37.5
|
37.4
|
39.2
|
35.5
|
38.2
|
37.5
|
37.6
|
|||||||||||||||
|
Impairment
charges and store closing costs
|
0.2
|
(0.3
|
) |
0.6
|
0.6
|
0.0
|
0.0
|
0.0
|
||||||||||||||
|
Other
store operating expenses
|
17.3
|
16.8
|
17.7
|
17.0
|
17.8
|
16.9
|
16.6
|
|||||||||||||||
|
Store
operating income
|
13.1
|
15.2
|
11.5
|
12.7
|
12.9
|
12.9
|
12.8
|
|||||||||||||||
|
General
and administrative
|
5.9
|
6.1
|
6.1
|
5.4
|
6.2
|
5.2
|
5.4
|
|||||||||||||||
|
Operating
income
|
7.1
|
%
|
9.0
|
%
|
5.4
|
%
|
7.3
|
%
|
6.8
|
%
|
7.7
|
%
|
7.4
|
%
|
||||||||
|
(1)
Full year fiscal 2006 includes $8.5 million in stock option expense
(0.4%
of total revenue) and $5.0 million of expenses related to the Company's
strategic initiatives (0.2% of total revenue).
|
||||||||||||||||||||||
|
|
||||||||||||||||||||||
-END-