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): May
22, 2007
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
May
22, 2007, 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 2007 third quarter results,
fiscal 2007 outlook 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 May 22, 2007
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: May 22, 2007 | CBRL GROUP, INC. | ||
| By: | /s/ N.B. Forrest Shoaf | ||
| Name: | N.B. Forrest Shoaf | ||
| Title: | Senior Vice President, Secretary | ||
| and General Counsel | |||
EXHIBIT
INDEX
Exhibit
No. Description
99.1 Press
Release issued by CBRL Group, Inc. dated May 22, 2007
| [CBRL GROUP, INC. LOGO ] | POST OFFICE BOX 787 |
| LEBANON, TENNESSEE | |
| 37088-0787 | |
| C B R L G R O U P, I N C. |
| 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 INCOME PER SHARE FROM CONTINUING
OPERATIONS FOR FISCAL 2007 THIRD QUARTER AND YEAR TO DATE
Provides
Fourth Quarter Fiscal 2007 Outlook
LEBANON,
Tenn. -- May 22, 2007
-- CBRL
Group, Inc. (“CBRL” or the “Company”) (Nasdaq: CBRL) today announced
results for the third quarter ended April 27, 2007, reporting diluted income
per
share from continuing operations of $0.44, compared with $0.37 from continuing
operations in the third quarter of fiscal 2006, an increase of 18.9%. After-tax
income from continuing operations was $12.1 million, compared with $18.3 million
in the third quarter of fiscal 2006, with the reduction primarily reflecting
the
higher interest expense associated with the Company’s recapitalization
initiative that it began in 2006, which was more than offset on a per share
basis by the associated reduction in shares outstanding.
Highlights
of the fiscal 2007 third-quarter include:
| · |
Comparable
store restaurant sales for the third quarter were flat with the third
quarter fiscal 2006 for Cracker Barrel Old Country StoreÒ
(“Cracker Barrel”), while comparable store retail sales were down
0.9%.
|
| · |
Total
revenue from continuing operations for the third quarter of $549.1
million
was up 2.8% from the prior-year
period.
|
| · |
Operating
income margin from continuing operations in the third quarter was
5.5% of
total revenue compared with 5.7% in the year-ago quarter.
|
with
$18.3 million and $0.37, respectively, in the prior-year comparable period.
The
third quarter of fiscal 2007 benefited from the Company’s recapitalization
initiatives
which it began in 2006. One of the results was a reduction in the number of
shares outstanding which led to higher earnings per share, despite lower
net income due to higher associated interest costs.
-
MORE -
CBRL
Announces Fiscal 2007 Third Quarter And Year-To-Date Results
Page
2
May
22,
2007
| · |
Under
a previously announced 10b5-1 plan to repurchase $100 million of
shares,
$91.1 million, or approximately 1.9 million shares, were repurchased
in
the third quarter. The remaining $8.9 million in purchases were completed
in the first week of the fourth quarter.
|
On
December 6, 2006, the Company announced that it had closed the sale of its
subsidiary, Logan’s Roadhouse®
Inc.
(“Logan’s”). Logan’s results and the related gain and expenses are classified as
discontinued operations.
Third-Quarter
Fiscal 2007 Results
Revenue
from continuing operations
Total
revenue from continuing operations for the third quarter of $549.1 million
increased 2.8% from the third quarter of fiscal 2006. Comparable store
restaurant sales for the period were flat including a 1.4% higher average
check,
while guest traffic declined 1.4%. Cracker Barrel’s average menu price increase
for the quarter was approximately 1.5% compared with last year. Comparable
store
retail sales declined 0.9% for the quarter. During the quarter, the Company
opened five new Cracker Barrel Old Country Store units, bringing the total
year-to-date openings to 14.
Income
from continuing operations
Operating
income from continuing operations of $30.1 million was 5.5% of total revenue
during the third quarter of fiscal 2007 compared with $30.3 million, or 5.7%
of
total revenue, in the third quarter of fiscal 2006. Operating income from
continuing operations for the third quarter of fiscal 2007 compared with
the
third quarter of fiscal 2006 benefited from non-recurrence of certain unusual
expenses in the prior year period as well as certain unusual credits in the
current year. In the prior year, the Company incurred in continuing operations
approximately $3.2 million of impairment and store closing expenses related
to
closure of seven Cracker Barrel units. In the current year, the Company realized
gains on disposition of properties of approximately $1.2 million, and refunds
of
prior years’ workers’ compensation and sales taxes totaling approximately $1.6
million. Unfavorable expense items affecting third quarter fiscal 2007 results
included higher labor costs including wage inflation related to certain state
minimum wage increases, higher group health and general insurance, advertising
and maintenance costs, and higher bonus accruals. Offsetting these unfavorable
items were higher menu pricing and lower retail cost of goods sold.
After-tax
income from continuing operations of $12.1 million, or $0.44 per diluted
share,
for the third quarter of fiscal 2007, was lower than the $18.3 million, or
$0.37
per diluted share, for the comparable period of fiscal 2006 due to the higher
interest expense related to the Company’s recapitalization initiatives partially
offset by interest income from substantial cash balances. Diluted income
per
share from continuing operations reflected fewer shares outstanding compared
with the comparable prior-year period as a result of the Company’s two
successful “Dutch Auction” tender offers and open market share repurchases in
which it repurchased a combined total of 24.1 million shares of the
Company’s common stock (approximately 51% of the amount previously outstanding)
from the fourth quarter of fiscal 2006 through the third quarter of fiscal
2007.
-
MORE -
CBRL
Announces Fiscal 2007 Third Quarter And Year-To-Date Results
Page
3
May
22,
2007
Commenting
on the third-quarter results, CBRL Group, Inc. Chairman, President and Chief
Executive Officer Michael A. Woodhouse said, “The restaurant and retail
industries continue to face pressures from soft consumer demand and high
labor
costs among other things, resulting in the quarter we reported today not
being
in line with our objectives. We expect better performance of ourselves, even
in
the face of unusually severe external pressures. In that regard, we are pleased
that our comparable store restaurant traffic, while soft, continues to
outperform the full-service industry according to Knapp-Track™. And our
comparable store retail sales, which softened as did those of most retailers
in
April, which was one of the retail industry’s weakest months in decades, would
have been positive in the month and quarter except for lower sales in Porch
Sale
clearance events. Lower Porch Sales, however, reflect better merchandise
selection on our part, which results in less clearance inventory at higher
markdowns. Our underlying retail sales strength benefited from more extensive
seasonal and holiday merchandise in the stores, and we’re achieving stronger
retail sales thus far in May. We completed the roll-out of our new billboards
in
all of our markets early in April and have received positive comments from
our
customers. As we enter the summer travel season, we will focus on building
traffic through our speed-of-service initiatives inside the restaurants and
by
leveraging the strength of the Cracker Barrel brand to appeal to new customers
across multiple generations.”
Year-to-Date
Fiscal 2007 Results
Total
revenue from continuing operations year-to-date for fiscal 2007 of $1.7 billion
increased 3.8% from the year-to-date period in fiscal 2006. Comparable store
restaurant sales year-to-date increased 0.6%, including a 1.2% higher check,
while guest traffic declined by 0.6%. Comparable store retail sales increased
3.4% year-to-date. In the first nine months of fiscal 2007, the Company opened
14 new Cracker Barrel Old Country Store units.
The
Company reported year-to-date income from continuing operations of $47.8
million, or $1.50 per diluted share, compared with income from continuing
operations of $67.1 million, or $1.34 per diluted share, for the same period
in
fiscal 2006.
Year-to-date
net cash flow provided by operating activities was $100.0 million, compared
with
$77.9 million in the comparable period in fiscal 2006, and exceeded cash
used
for purchase of property and equipment (capital expenditures), net of insurance
recoveries, of $66.6 million.
Update
on Strategic Initiatives
The
Company’s ongoing strategic initiatives that it began in 2006 continued
throughout the third quarter, during which time, the Company commenced an
offer
to exchange its outstanding Liquid Yield Option Notes due 2032 (“Old Notes”) for
a new issue of Zero Coupon Senior Convertible Notes due 2032 (“New Notes”). The
purpose of the exchange offer was to issue, in exchange for Old Notes, New
Notes
with a “net share settlement” feature. The net share settlement feature of the
New Notes allows the Company, upon conversion of a New Note, to satisfy a
portion of its obligation due upon conversion of the New Notes in cash rather
than with the issuance of shares of its common stock. This will reduce the
share
dilution associated with the conversion of the New
-
MORE -
CBRL
Announces Fiscal 2007 Third Quarter And Year-To-Date Results
Page
4
May
22,
2007
Notes.
As
a result of the exchange offer, which expired on April 30, 2007, there now
are
outstanding $46,099,000 aggregate principal amount at maturity of Old Notes
and
$375,931,000 aggregate principal amount at maturity of New Notes.
The
Company has previously announced that it will redeem all of the Old Notes
and
the New Notes on
June
4,
2007 (the “Redemption Date”). The redemption price of both the Old Notes and the
New Notes is $477.41 per $1,000 in principal amount at maturity, which is
the
accreted principal amount of both the Old Notes and New Notes on the Redemption
Date. The aggregate redemption price of the Old Notes and the New Notes,
collectively, will be approximately $201 million, assuming that no holders
of
either Old Notes or New Notes convert their notes into common stock. At any
time
up to two business days prior to the Redemption Date, holders of Old Notes
and
New Notes can convert either Old Notes or New Notes, as the case may be.
The Old
Notes are convertible into 10.8584 shares of the Company’s common stock per
$1,000 in principal amount at maturity. The New Notes may also be converted,
and
their value will be measured at the same rate, i.e., 10.8584 shares per $1,000
in principal amount at maturity. Common stock will be issued upon conversion
of
the New Notes only to the extent that the conversion value exceeds the accreted
principal amount of the New Notes. The conversion value generally will exceed
the accreted principal amount of the notes if the Company’s common stock trades
at a price in excess of $43.97 per share.
The
Company has also previously announced its intention to repurchase, through
open
market purchases, that number of shares of common stock that are issued in
connection with the conversion of either the Old Notes or New Notes. The
Company
will pay the redemption price of the Old Notes and New Notes as well as the
purchase price for any shares of common stock through a draw on its existing
delayed-draw term loan facility and cash on hand. In connection with those
expected purchases, the Company announced today that
it
expects to adopt a written trading plan under Rule 10b5-1 of the Securities
and
Exchange Commission to facilitate repurchases of that number of shares that
are
issued in connection with the conversion of either the Old Notes or New Notes.
In
the
first week of the fourth quarter of fiscal 2007, the Company completed the
remaining balance of the repurchase of $100 million of shares, or 2.12 million
shares, pursuant to a Rule 10b5-1 trading plan announced on March 8,
2007.
The
$100
million repurchase authorization was in addition to management’s authority to
purchase 821,081
shares that remains from a 2005 repurchase authorization and in addition
to the
repurchase of that number of shares that might be issued in connection with
a
conversion of either the Old Notes or New Notes.
Fourth-Quarter
Fiscal 2007 Outlook
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, risks and influences,
some of which are discussed in the cautionary language at the end of this
press
release and others that are described in the Company’s Annual Report on Form
10-K for the fiscal year ended July
28, 2006 and subsequent Quarterly Reports on Form 10-Q which can be found
on the
Securities and
-
MORE -
CBRL
Announces Fiscal 2007 Third Quarter And Year-To-Date Results
Page
5
May
22,
2007
Exchange
Commission’s website, sec.gov, and the Company’s website, cbrlgroup.com. The
Company disclaims any obligations to update disclosed information on trends
or
targets other than in its periodic filings with the Securities and Exchange
Commission.
The
Company commented on its outlook for the remainder of fiscal 2007 noting
that
although it has adopted the practice of providing guidance on full fiscal
year
targets rather than quarterly expectations or objectives, the present guidance
relates to the fourth quarter specifically since it is the only remaining
quarter of the fiscal year. The Company also noted that its outlook reflects
many assumptions of which the accuracy is not yet known. Based on current
trends
and operating results, the Company presently expects fiscal 2007 fourth
quarter
total revenue to increase 12.0 to 12.5% over revenues from continuing operations
in the fiscal 2006 fourth quarter, including an additional week because fiscal
2007 is a 53-week year, positive comparable store sales and the opening of
five
new Cracker Barrel units during the quarter. The benefit of a 53rd
week in
fiscal 2007 is estimated at $45-50 million in revenues. Fourth quarter
comparable store restaurant sales are projected to be flat to up 1%, including
approximately 2% of menu pricing, and comparable store retail sales are expected
to be up 4 to 5% compared to prior year fourth quarter (both on a comparable
week basis). The Company also presently expects fiscal 2007 fourth quarter
operating income margins from continuing operations to be approximately 8.5
to
9.0%. Commodity cost inflation in the last quarter of the year, with an
estimated 84% of product needs contracted, is expected to be 2 to 2.5%. Interest
expense will be affected by higher rates on debt used to replace the convertible
notes at the call date of June 4, and shares outstanding will be reduced
by the
redemption of those notes as well as share repurchases, if any, that the
Company
might undertake during the fourth quarter, the timing or amounts of which
are
presently unknown. The Company presently expects full year fiscal 2007 capital
expenditures of approximately $90 million.
Commenting
on the outlook, Mr. Woodhouse said, “As I have said before, fiscal 2007 is a
year of transition for CBRL. Having substantially completed the strategic
initiatives to achieve the appropriate capital structure, we now operate
a
single brand that continues to receive top ratings for food, facilities and
customer service. Our theme of ‘Simplify and Focus’ is intended to drive
increases in both traffic and retail sales. Finally, we expect the cash flow
from Cracker Barrel to remain strong, being more than sufficient to service
the
higher debt levels and to finance Cracker Barrel’s restaurant initiatives and
unit expansion. At the same time, we will continue to distribute a portion
of
our excess cash to our shareholders through dividends and share
repurchases.”
Fiscal
2007 Third-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 be available at 2:00
p.m.
(ET) and continue through June 5, 2007.
Headquartered
in Lebanon, Tennessee, CBRL Group, Inc. presently operates 559 Cracker Barrel
Old Country Store restaurants and gift shops located in 41
states.
-
MORE -
CBRL
Announces Fiscal 2007 Third Quarter And Year-To-Date Results
Page
6
May
22,
2007
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,” “opportunity,”
“future,” “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 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 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 price increases including weather
effects on supply and the effects of demand for corn for ethanol production
on
the costs of animal feed and resulting protein prices; the ability of and
cost
to the Company to recruit, train, and retain qualified hourly and management
employees in an escalating wage environment; 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; 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; 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; 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; 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 the Company’s restaurant or retail supply chain; changes in
foreign
-
MORE -
CBRL
Announces Fiscal 2007 Third Quarter And Year-To-Date Results
Page
7
May
22,
2007
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.
-
MORE -
CBRL
Announces Fiscal 2007 Third Quarter And Year-To-Date Results
Page
8
May
22,
2007
CBRL GROUP, INC.
CONDENSED
CONSOLIDATED INCOME STATEMENT
(Unaudited)
(In
thousands, except share amounts)
|
Third
Quarter
Ended
|
Nine
Months
Ended
|
||||||||||||||||||
|
4/27/07
|
4/28/06
|
Change
|
4/27/07
|
4/28/06
|
Change
|
||||||||||||||
|
Total
revenue
|
$
|
549,050
|
$
|
533,990
|
3
|
%
|
$
|
1,719,447
|
$
|
1,656,216
|
4
|
%
|
|||||||
|
Cost
of goods sold
|
167,928
|
165,769
|
1
|
551,136
|
532,607
|
3
|
|||||||||||||
|
Gross
profit
|
381,122
|
368,221
|
4
|
1,168,311
|
1,123,609
|
4
|
|||||||||||||
|
Labor
& other related expenses
|
219,012
|
209,415
|
5
|
650,780
|
622,055
|
5
|
|||||||||||||
|
Other
store operating expenses
|
100,511
|
94,282
|
7
|
304,165
|
289,408
|
5
|
|||||||||||||
|
Impairment
charges
|
--
|
3,156
|
(100
|
)
|
--
|
6,861
|
(100
|
)
|
|||||||||||
|
Store
operating income
|
61,599
|
61,368
|
--
|
213,366
|
205,285
|
4
|
|||||||||||||
|
General
and administrative expenses
|
31,536
|
31,097
|
1
|
102,818
|
96,080
|
7
|
|||||||||||||
|
Operating
income
|
30,063
|
30,271
|
(1
|
)
|
110,548
|
109,205
|
1
|
||||||||||||
|
Interest
expense
|
13,801
|
2,678
|
415
|
43,587
|
7,484
|
482
|
|||||||||||||
|
Interest
income
|
2,199
|
--
|
--
|
6,654
|
93
|
7055
|
|||||||||||||
|
Pretax
income
|
18,461
|
27,593
|
(33
|
)
|
73,615
|
101,814
|
(28
|
)
|
|||||||||||
|
Provision
for income taxes
|
6,350
|
9,261
|
(31
|
)
|
25,841
|
34,719
|
(26
|
)
|
|||||||||||
|
Income
from continuing operations
|
12,111
|
18,332
|
(34
|
)
|
47,774
|
67,095
|
(29
|
)
|
|||||||||||
|
Income
from discontinued
operations
|
214
|
5,640
|
(96
|
)
|
86,490
|
13,396
|
546
|
||||||||||||
|
Net
income
|
$
|
12,325
|
$
|
23,972
|
(49
|
)
|
$
|
134,264
|
$
|
80,491
|
67
|
||||||||
|
Earnings
per share - Basic:
|
|||||||||||||||||||
|
Income
from
continuing
operations
|
$ | 0.48 | $ | 0.39 | 23 | $ | 1.65 | $ | 1.43 | 15 | |||||||||
|
Income
from
discontinued
|
|||||||||||||||||||
|
operations
|
$
|
0.01
|
$
|
0.12
|
(92
|
)
|
$
|
2.98
|
$
|
0.29
|
928
|
||||||||
|
Net
income per
share
|
$
|
0.49
|
$
|
0.51
|
(4
|
)
|
$
|
4.63
|
$
|
1.72
|
169
|
||||||||
|
Earnings
per share - Diluted:
|
|||||||||||||||||||
|
Income
from
continuing
|
|||||||||||||||||||
|
operations
|
$
|
0.44
|
$
|
0.37
|
19
|
$
|
1.50
|
$
|
1.34
|
12
|
|||||||||
|
Income
from
discontinued
|
|||||||||||||||||||
|
operations
|
$
|
0.01
|
$
|
0.10
|
(90
|
)
|
$
|
2.54
|
$
|
0.26
|
877
|
||||||||
|
Net
income per
share
|
$
|
0.45
|
$
|
0.47
|
(4
|
)
|
$
|
4.04
|
$
|
1.60
|
153
|
||||||||
|
Weighted
average shares:
|
|||||||||||||||||||
|
Basic
|
24,984,268
|
47,295,058
|
(47
|
)
|
28,996,618
|
46,916,467
|
(38
|
)
|
|||||||||||
|
Diluted
|
30,183,152
|
52,523,351
|
(43
|
)
|
34,070,700
|
52,067,800
|
(35
|
)
|
|||||||||||
|
Ratio
Analysis
|
|||||||||||||||||||
|
Total
revenue:
|
|||||||||||||||||||
|
Restaurant
|
81.0
|
%
|
80.9
|
%
|
77.6
|
%
|
78.1
|
%
|
|||||||||||
|
Retail
|
19.0
|
19.1
|
22.4
|
21.9
|
|||||||||||||||
|
Total
revenue
|
100.0
|
100.0
|
100.0
|
100.0
|
|||||||||||||||
|
Cost
of goods sold
|
30.6
|
31.0
|
32.1
|
32.2
|
|||||||||||||||
|
Gross
profit
|
69.4
|
69.0
|
67.9
|
67.8
|
|||||||||||||||
|
Labor
& other related expenses
|
39.9
|
39.2
|
37.8
|
37.5
|
|||||||||||||||
|
Other
store operating expenses
|
18.3
|
17.7
|
17.7
|
17.5
|
|||||||||||||||
|
Impairment
charges
|
0.0
|
0.6
|
--
|
0.4
|
|||||||||||||||
|
Store
operating income
|
11.2
|
11.5
|
12.4
|
12.4
|
|||||||||||||||
|
General
and administrative expenses
|
5.7
|
5.8
|
6.0
|
5.8
|
|||||||||||||||
|
Operating
income
|
5.5
|
5.7
|
6.4
|
6.6
|
|||||||||||||||
|
Interest
expense
|
2.5
|
0.5
|
2.5
|
0.5
|
|||||||||||||||
|
Interest
income
|
0.4
|
--
|
0.4
|
--
|
|||||||||||||||
|
Pretax
income
|
3.4
|
5.2
|
4.3
|
6.1
|
|||||||||||||||
|
Provision
for income taxes
|
1.2
|
1.8
|
1.5
|
2.0
|
|||||||||||||||
|
Income
from continuing operations
|
2.2
|
3.4
|
2.8
|
4.1
|
|||||||||||||||
|
Income
from discontinued operations
|
0.0
|
1.1
|
5.0
|
0.8
|
|||||||||||||||
|
Net
income
|
2.2
|
%
|
4.5
|
%
|
7.8
|
%
|
4.9
|
%
|
|||||||||||
-
MORE -
CBRL
Announces Fiscal 2007 Third Quarter And Year-To-Date Results
Page
9
May
22,
2007
CONDENSED CONSOLIDATED
BALANCE SHEET
(Unaudited
and in thousands, except shares)
|
4/27/07
|
7/28/06
|
||||||
|
Assets
|
|
|
|||||
|
Cash
and cash
equivalents
|
$
|
149,875
|
$
|
87,830
|
|||
|
Assets
held for
sale
|
4,596
|
3,127
|
|||||
|
Other
current
assets
|
160,840
|
161,651
|
|||||
|
Current
assets of
discontinued operations
|
--
|
401,222
|
|||||
|
Property
and
equipment, net
|
1,006,160
|
982,504
|
|||||
|
Long-lived
assets
|
46,006
|
44,963
|
|||||
|
Total
assets
|
$ |
1,367,477
|
$
|
1,681,297
|
|||
|
Liabilities
and Shareholders’ Equity
|
|||||||
|
Current
liabilities
|
$
|
256,329
|
$
|
258,888
|
|||
|
Current
liabilities
of discontinued operations
|
--
|
71,645
|
|||||
|
Long-term
debt
|
836,113
|
911,464
|
|||||
|
Other
long-term
obligations
|
151,287
|
137,018
|
|||||
|
Shareholders’
equity
|
123,748
|
302,282
|
|||||
|
Total
liabilities and shareholders’ equity
|
$
|
1,367,477
|
$ |
1,681,297
|
|||
|
Common
shares outstanding
|
24,643,346
|
30,926,906
|
|||||
-
MORE -
CBRL
Announces Fiscal 2007 Third Quarter And Year-To-Date Results
Page
10
May
22,
2007
CONDENSED
CONSOLIDATED CASH FLOW STATEMENT
(Unaudited
and in thousands)
|
Nine
Months Ended
|
|||||||
|
4/27/07
|
4/28/26
|
||||||
|
Cash
flows from continuing operations:
|
|||||||
|
Cash
flows from
operating activities:
|
|||||||
|
Net
income
|
$
|
134,264
|
$
|
80,491
|
|||
|
Income
from discontinued operations, net of tax
|
(86,490
|
)
|
(13,396
|
)
|
|||
|
Depreciation
and amortization
|
42,407
|
42,449
|
|||||
|
Loss
on
disposition of property and equipment
|
587
|
1,025
|
|||||
|
Impairment
|
--
|
5,395
|
|||||
|
Accretion
on
zero-coupon notes
|
4,410
|
4,280
|
|||||
|
Share-based
compensation, net of excess tax benefit
|
5,351
|
4,616
|
|||||
|
Net
changes in other assets and liabilities
|
(517
|
)
|
(47,015
|
)
|
|||
|
Net
cash provided by operating activities
|
100,012
|
77,845
|
|||||
|
Cash
flows from investing activities:
|
|||||||
|
Purchase
of
property and equipment, net of insurance recoveries
|
(66,604
|
)
|
(64,290
|
)
|
|||
|
Proceeds
from
sale of Logan’s
|
265,986
|
--
|
|||||
|
Proceeds
from
sale of property and equipment
|
5,330
|
163
|
|||||
|
Net
cash provided by (used in) investing activities
|
204,712
|
(64,127
|
)
|
||||
|
Cash
flows from financing activities:
|
|||||||
|
Net
payments for credit facilities
|
|||||||
|
and
other long-term
obligations
|
(80,692
|
)
|
(21,677
|
)
|
|||
|
Proceeds
from
exercise of stock options
|
33,013
|
26,978
|
|||||
|
Excess
tax benefit from share-based compensation
|
4,754
|
5,737
|
|||||
|
Purchases
and
retirement of common stock
|
(341,581
|
)
|
--
|
||||
|
Other
|
--
|
(698
|
)
|
||||
|
Dividends
on
common stock
|
(12,118
|
)
|
(17,829
|
)
|
|||
|
Net
cash used in
financing activities
|
(396,624
|
)
|
(7,489
|
)
|
|||
|
Cash
flows from operating activities:
|
|||||||
|
Net
cash provided by (used in) discontinued operations
|
153,945
|
(4,562
|
)
|
||||
|
Net
increase in cash and cash equivalents
|
62,045
|
1,667
|
|||||
|
Cash
and cash equivalents, beginning of period
|
87,830
|
15,577
|
|||||
|
Cash
and cash equivalents, end of period
|
$
|
149,875
|
$
|
17,244
|
|||
-
MORE -
CBRL
Announces Fiscal 2007 Third Quarter And Year-To-Date Results
Page
11
May
22,
2007
CBRL
GROUP, INC.
Supplemental
Information
(Unaudited)
Third
Quarter Ended
|
Nine
Months Ended
|
||||||||||||
|
4/27/07
|
|
4/28/06
|
4/27/07
|
4/28/06
|
|||||||||
|
Units
in operation:
|
|||||||||||||
| Open at beginning of period |
552
|
540
|
543
|
529
|
|||||||||
|
Opened
during period
|
5
|
6
|
14
|
17 | |||||||||
|
Closed
during period
|
--
|
(7
|
) | -- |
(7
|
) | |||||||
|
Open
at
end of period
|
557
|
539
|
557
|
539
|
|||||||||
|
Total
revenue: (In thousands)
|
|||||||||||||
|
Restaurant
|
$
|
444,923
|
$
|
432,052
|
$ |
1,335,032
|
$
|
1,293,128
|
|||||
|
Retail
|
104,127
|
101,938
|
384,415
|
363,088
|
|||||||||
|
Total
revenue
|
$
|
549,050
|
$
|
533,990
|
$ |
1,719,447
|
$
|
1,656,216
|
|||||
|
Operating
weeks:
|
7,216
|
6,996
|
21,452
|
20,940
|
|||||||||
|
Average
unit volume: (In thousands)
|
|||||||||||||
|
Restaurant
|
$
|
801.5
|
$ |
802.9
|
$ | 2,427.1 | $ | 2,408.4 | |||||
|
Retail
|
187.6
|
189.4
|
698.9
|
676.2
|
|||||||||
|
Total
|
$
|
989.1
|
$
|
992.3
|
$ | 3,126.0 |
$
|
3,126.0
|
|||||
|
|
|||||||||||||
|
|
Q3
2007 vs. Q3 2006
|
9
mo. 2007 vs. 9 mo. 2006
|
|||||||||||
|
Comparable
store sales period to period increase
|
|||||||||||||
|
(decrease):
|
|||||||||||||
|
Restaurant
|
--
|
%
|
.6
|
%
|
|||||||||
|
Retail
|
(.9
|
)%
|
|
|
3.4
|
%
|
|||||||
|
Number
of locations in comparable store base
|
522
|
|
507
|
||||||||||
CBRL-F
-
END -