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 18,
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
September 18, 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 fourth quarter and full-year results,
fiscal 2008 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.
On
September 18, 2007, CBRL Group, Inc. issued the press release that is furnished
as Exhibit 99.2 to this Current Report on Form 8-K, which by this reference
is
incorporated herein as if copied verbatim, with respect to the retirement of
Lawrence E. White.
Item
9.01. Financial Statements and Exhibits.
(d)
Exhibits.
See Exhibit Index immediately following signature page.
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 18, 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 September 18, 2007 re: earnings |
| 99.2 | Press Release issued by CBRL Group, Inc. dated September 18, 2007 re: Lawrence E. White retirement |
Exhibit
99.1
| [CBRL GROUP, INC. LOGO] |
POST
OFFICE BOX 787
|
|
LEBANON,
TENNESSEE
|
|
|
37088-0787
|
|
| 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. REPORTS 40% INCREASE IN DILUTED INCOME PER SHARE
FROM
CONTINUING
OPERATIONS FOR FISCAL 2007 FOURTH QUARTER
Reports
Full Year Fiscal 2007 Results
Provides
EPS Guidance for Fiscal 2008
|
·
|
Comparable
store restaurant sales for the fourth quarter fiscal 2007 increased
0.9%
from prior year for Cracker Barrel Old Country Store®
(“Cracker
Barrel”) while comparable store retail sales were up 2.5%, both on a
comparable weeks basis.
|
|
·
|
Revenue
for the fourth quarter, which included the benefit of an additional
week
in fiscal 2007, grew 12.2% to $632 million compared with the prior
year
quarter.
|
|
·
|
Operating
income margin from continuing operations in the fourth quarter was
9.1% of
total revenue compared with 9.3% in the year-ago
quarter.
|
|
·
|
After-tax
income and diluted income from continuing operations were $28.2
million and $1.15 per share, respectively, for the fourth quarter
fiscal 2007 compared with $28.4 million and $0.82, respectively, in
the prior-year comparable period, a 40% increase on a diluted share
basis.
|
|
·
|
In
the fourth quarter, 1.4 million shares were repurchased for $64.0
million. At the end of the quarter, 23.7 million shares
were outstanding.
|
LEBANON,
Tenn. -- September 18, 2007 -- CBRL Group, Inc.
(“CBRL” or the “Company”) (Nasdaq: CBRL) today reported diluted income per
share from continuing operations of $1.15 for the fourth quarter of
fiscal 2007, compared with $0.82 from continuing operations in the fourth
quarter of fiscal 2006, an increase of 40%. After-tax income from
continuing operations was $28.2 million, compared with $28.4 million in the
fourth quarter of fiscal 2006, with the reduction primarily reflecting a higher
effective income tax rate partly offset by the benefit of an additional week
in
the 14-week fiscal 2007 quarter. On a per share basis, the reduction
in shares outstanding associated with the Company’s restructuring and related
stock repurchase programs that it began in 2006 contributed to the 40% increase
in diluted income from continuing operations.
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. Including the results of
discontinued operations, the Company’s fourth quarter net income and
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CBRL
Announces Fiscal 2007 Fourth Quarter Results
Page
2
September
18, 2007
diluted
net income per share were $27.8 million and $1.13, respectively, compared with
$35.8 million and $1.03, respectively, in the fourth quarter of fiscal
2006.
Fourth-Quarter
Fiscal 2007 Results
Revenue
from continuing operations
Total
revenue from continuing operations for the fourth quarter of $632.1 million
represented an increase of 12.2% from the fourth quarter of fiscal
2006. Comparable store restaurant sales for the period increased 0.9%
including a 2.0% higher average check, while guest traffic declined 1.1%, both
on a comparable weeks basis. Cracker Barrel’s average menu price
increase for the quarter was approximately 2.0% compared with last
year. Comparable store retail sales were up 2.5% for the quarter on a
comparable weeks basis. During the quarter, the Company opened five
new Cracker Barrel Old Country Store units, bringing the total year openings
to
19. The additional week in the fourth quarter of fiscal 2007 added
$46.3 million of revenue contributing approximately 8.2 percentage points of
the
year-over-year revenue increase for the quarter.
Income
from continuing operations
Operating
income from continuing operations of $57.6 million was 9.1% of total revenue
during the fourth quarter of fiscal 2007 compared with $52.6 million, or 9.3%
of
total revenue, in the fourth quarter of fiscal 2006. The additional
week in the fourth quarter of fiscal 2007 contributed an estimated $7.8 million
of operating income to the quarter, or 0.6 percentage points of operating margin
on a revenue-adjusted basis. Operating income from continuing
operations for the fourth quarter of fiscal 2007 compared with the fourth
quarter of fiscal 2006 was negatively affected by higher hourly and management
wages, including the effect of minimum wage increases for tipped employees
in
several states, higher group health expenses, and higher maintenance
expenses. Higher food costs were offset in cost of goods sold by
lower retail product costs, and other store operating expenses were lower as
a
percent of revenue because of the additional week in the quarter.
After-tax
income from continuing operations was $28.2 million, or $1.15 per diluted share,
for the fourth quarter of fiscal 2007, compared with $28.4 million, or $0.82
per
diluted share, for the comparable period of fiscal 2006. The lower
after-tax income from continuing operations reflected a higher effective income
tax rate in 2007 compared with 2006. 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 second successful
“Dutch Auction” tender offer and open market share repurchases. Including
the Company’s original restructuring Dutch Auction tender offer in 2006, it has
repurchased a combined total of 25.5 million shares of the Company’s common
stock (approximately 54% of the amount previously outstanding) from the fourth
quarter of fiscal 2006 through the fourth quarter of fiscal 2007.
Commenting
on the fourth-quarter results, CBRL Group, Inc. Chairman, President and Chief
Executive Officer Michael A. Woodhouse said, “Although the restaurant and retail
industries continue to face soft consumer demand as well as cost pressures,
particularly in labor, we are pleased with our fourth quarter results, with
revenues in line with expectations, and stronger than expected operating
margins. We are also pleased that our comparable store restaurant
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CBRL
Announces Fiscal 2007 Fourth Quarter Results
Page
3
September
18, 2007
traffic
continues to outperform the full-service industry according to
Knapp-Track™. Our comparable store retail sales, even with less
revenue from Porch Sale clearance events, were positive in a challenging retail
environment for many. As we enter fiscal 2008, we continue to focus
on building traffic in our restaurants and increasing retail sales and
leveraging the strength of the Cracker Barrel brand to appeal to new customers
across multiple generations.”
Fiscal
2007 Results
Total
revenue from continuing operations for fiscal 2007 of $2.35 billion increased
6.0% from fiscal 2006. Comparable store restaurant sales increased
0.7% on a comparable weeks basis, including a 1.4% higher check, while guest
traffic declined by 0.7%. Comparable store retail sales increased
3.2% on a comparable weeks basis. In fiscal 2007, the Company opened
19 Cracker Barrel Old Country Store units. An additional week in
fiscal 2007 added $46.3 million to revenues.
The
Company reported income from continuing operations of $76.0 million, or $2.52
per diluted share, compared with income from continuing operations of $95.5
million, or $2.07 per diluted share, in fiscal 2006.
Year-to-date
net cash flow provided by operating activities was $96.9 million, compared
with
$174.7 million in fiscal 2006, reflecting higher interest and income tax
payments related to the Company’s strategic initiatives and $27.2 million
of cash paid for the accreted interest portion of redemption of the Company’s
zero-coupon senior convertible notes.
Strategic
Initiatives
The
Company’s
strategic initiatives, which began in 2006, continued into the fourth quarter
of
fiscal 2007, during which time the Company redeemed its previously outstanding
senior convertible notes for an aggregate of approximately $189 million
in cash and repurchased 395,775 shares of common stock issued as a result of
conversion of a portion of those notes. In the fourth quarter, the
Company completed its share repurchase authorization by purchasing 1.4 million
shares for $64.0 million.
Fiscal
2008 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 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 that its outlook for fiscal 2008 reflects many assumptions,
the accuracy of which is not yet known. Based on current trends and
estimates, the Company presently expects fiscal 2008 total revenue
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CBRL
Announces Fiscal 2007 Fourth Quarter Results
Page
4
September
18, 2007
to
increase approximately 4.5% to 5.5% over revenues from continuing operations
in
fiscal 2007 (which included a 53rd week equaling $46.3 million of sales),
positive comparable store sales and the opening of 20 new Cracker Barrel units
during the year. Comparable store restaurant sales are projected to
be up 3% to 4% on a comparable weeks basis, including approximately 3% to 3.5%
of menu pricing, and comparable store retail sales are expected to be up 3%
to
5% compared to fiscal 2007 on a comparable weeks basis. The Company
also presently expects fiscal 2008 operating income margin as a percent of
revenues from continuing operations to be approximately 6.7% to 7.0% compared
with 7.0%, excluding the effect of a 53rd week, in
fiscal
2007. Commodity cost inflation for the year, with an estimated 65% of
product needs contracted, is expected to be 4% to 4.5%. Depreciation
for the year is expected to be approximately $60 million. Net
interest expense is estimated at approximately $60 million and diluted shares
outstanding are expected to average 23.0 to 23.5 million. The
Company has not completed its evaluation of the effect of adoption of FIN 48,
and its outlook therefore reflects no change in income tax rate from fiscal
2007
actual. Diluted income from continuing operations per share is
projected to be in the range of $3.05 to $3.20 per share. The Company
presently expects full year fiscal 2008 capital expenditures of approximately
$105 million.
Commenting
on the outlook, Mr. Woodhouse said, “Having 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 seasoned leadership team is focused on the execution
phase of our theme of ‘Simplify, Focus and Execute’ 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
finance Cracker Barrel’s restaurant and retail 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, when appropriate,
share repurchases.”
Fiscal
2007 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 be available at 2:00 p.m. (ET) and continue through September 26,
2007.
Analyst-Institutional
Investor Conference—Comin’Right Up™
The
senior executives of the Company will host an analyst/institutional investor
meeting on October 3, 2007 that will highlight the Company’s strategic
initiatives and business updates as well as tours of the training kitchen and
mock retail store at the Company’s home office in Lebanon,
Tenn. Presentations are scheduled from 8:15 a.m. CDT (9:15 a.m. EDT)
to 12:15 p.m. CDT (1:15 p.m. EDT). A webcast of the presentations
will be available over the Internet at cbrlgroup.com under the events section
of
the investor relations heading. A replay of the webcast will be
available through October 31, 2007.
Supplemental
financial and operating data in addition to the formal presentations will be
available on the website, cbrlgroup.com, before the meeting on October
3.
-MORE-
CBRL
Announces Fiscal 2007 Fourth Quarter Results
Page
5
September
18, 2007
Fiscal
2008 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 2008. Dates and
content of press releases are preliminary and subject to change. The
expected schedule is as follows:
| October 2, 2007: | Sales results for 4 weeks ending September 28, 2007 |
| November 6, 2007: | Sales results for 5 weeks ending November 2, 2007 |
| November 28, 2007: | Financial results for first quarter of fiscal 2008, update to 2008 annual outlook |
| November 29, 2007: | Shareholders’ Meeting |
| December 4, 2007: | Sales results for 4 weeks ending November 30, 2007 |
| January 3, 2008: | Sales results for 4 weeks ending December 28, 2007 |
| February 5, 2008: | Sales results for 5 weeks ending February 1, 2008 |
| February 26, 2008: | Financial results for second quarter of fiscal 2008, update to 2008 annual outlook |
| March 4, 2008: | Sales results for 4 weeks ending February 29, 2008 |
| April 1, 2008: | Sales results for 4 weeks ending March 28, 2008 |
| May 6, 2008: | Sales results for 5 weeks ending May 2, 2008 |
| May 28, 2008: | Financial results for third quarter of fiscal 2008, update to 2008 annual outlook |
| June 3, 2008: | Sales results for 4 weeks ending May 30, 2008 |
| July 1, 2008: | Sales results for 4 weeks ending June 27, 2008 |
| August 5, 2008: | Sales results for 5 weeks ending August 1, 2008 |
| September 3, 2008: | Sales results for 4 weeks ending August 29, 2008—fiscal year 2009 |
| September 16, 2008: | Financial results for fourth quarter of fiscal 2008, annual outlook for fiscal 2009 |
Headquartered
in Lebanon, Tennessee, CBRL Group, Inc. presently operates 564 Cracker Barrel
Old Country Store restaurants and gift shops located in 41 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,” “opportunity,” “future,” “plans,”
“goals,”“objectives,”
“expectations,” “near-term,” “long-term,” “projection,” “may,”
“will,” “would,” “could,” “expect,” “intend,” “estimate,” “anticipate,”
“believe,” “potential,” “regular,” ”should,” “ projects,”
“forecasts,” 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
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CBRL
Announces Fiscal 2007 Fourth Quarter Results
Page
6
September
18, 2007
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
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; 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 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.
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CBRL
Announces Fiscal 2007 Fourth
Quarter Results
Page
7
September
18, 2007
|
CBRL
GROUP,
INC.
|
||||||||||||||||||||||||
|
CONDENSED
CONSOLIDATED INCOME
STATEMENT
|
||||||||||||||||||||||||
|
(Unaudited)
|
||||||||||||||||||||||||
|
(In
thousands, except share amounts)
|
||||||||||||||||||||||||
|
Fourth
Quarter Ended
|
Fiscal
Year Ended
|
|||||||||||||||||||||||
|
8/3/07
|
7/28/06
|
|
Change |
8/3/07
|
7/28/06
|
Change | ||||||||||||||||||
| Total revenue | $ | 632,129 | $ | 563,259 | 12 | % | $ | 2,351,576 | $ | 2,219,475 | 6 | % | ||||||||||||
| Cost of goods sold | 193,139 | 173,488 | 11 | 744,275 | 706,095 | 5 | ||||||||||||||||||
| Gross profit | 438,990 | 389,771 | 13 | 1,607,301 | 1,513,380 | 6 | ||||||||||||||||||
| Labor & other related expenses | 242,059 | 210,888 | 15 | 892,839 | 832,943 | 7 | ||||||||||||||||||
| Other store operating expenses | 105,966 | 95,034 | 12 | 410,131 | 384,442 | 7 | ||||||||||||||||||
| Impairment charges | -- | (1,492) | (100) | -- | 5,369 | (100) | ||||||||||||||||||
| Store operating income | 90,965 | 85,341 | 7 | 304,331 | 290,626 | 5 | ||||||||||||||||||
| General and administrative expenses | 33,368 | 32,750 | 2 | 136,186 | 128,830 | 6 | ||||||||||||||||||
| Operating income | 57,597 | 52,591 | 10 | 168,145 | 161,796 | 4 | ||||||||||||||||||
| Interest expense | 15,851 | 14,721 | 8 | 59,438 | 22,205 | 168 | ||||||||||||||||||
| Interest income | 1,120 | 671 | 67 | 7,774 | 764 | 918 | ||||||||||||||||||
| Pretax income | 42,866 | 38,541 | 11 | 116,481 | 140,355 | (17) | ||||||||||||||||||
| Provision for income taxes | 14,657 | 10,135 | 45 | 40,498 | 44,854 | (10) | ||||||||||||||||||
| Income from continuing operations | 28,209 | 28,406 | (1) | 75,983 | 95,501 | (20) | ||||||||||||||||||
| Income (loss) from discontinued operations | (408) | 7,394 | (106) | 86,082 | 20,790 | 314 | ||||||||||||||||||
| Net income | $ | 27,801 | $ | 35,800 | (22) | $ | 162,065 | $ | 116,291 | 39 | ||||||||||||||
| Earnings per share - Basic: | ||||||||||||||||||||||||
| Income from continuing operations | $ | 1.18 | $ | 0.92 | 28 | $ | 2.75 | $ | 2.23 | 23 | ||||||||||||||
|
Income
(loss) from discontinued
operations
|
$ | (0.02) | $ | 0.24 | (108) | $ | 3.11 | $ | 0.48 | 548 | ||||||||||||||
| Net income per share | $ | 1.16 | $ | 1.16 | -- | $ | 5.86 | $ | 2.71 | 116 | ||||||||||||||
| Earnings per share - Diluted: | ||||||||||||||||||||||||
| Income from continuing operations | $ | 1.15 | $ | 0.82 | 40 | $ | 2.52 | $ | 2.07 | 22 | ||||||||||||||
| Income (loss) from discontinued | ||||||||||||||||||||||||
| operations | $ | (0.02) | $ | 0.21 | (110) | $ | 2.71 | $ | 0.43 | 530 | ||||||||||||||
| Net income per share | $ | 1.13 | $ | 1.03 | 10 | $ | 5.23 | $ | 2.50 | 109 | ||||||||||||||
| Weighted average shares: | ||||||||||||||||||||||||
| Basic | 24,030,135 | 30,919,876 | (22) | 27,643,098 | 42,917,319 | (36) | ||||||||||||||||||
| Diluted | 25,057,887 | 35,974,358 | (30) | 31,756,582 | 48,044,440 | (34) | ||||||||||||||||||
| Ratio Analysis | ||||||||||||||||||||||||
| Total revenue: | ||||||||||||||||||||||||
| Restaurant | 80.6 | % | 80.8 | % | 78.4% | 78.8% | ||||||||||||||||||
| Retail | 19.4 | 19.2 | 21.6 | 21.2 | ||||||||||||||||||||
| Total revenue | 100.0 | 100.0 | 100.0 | 100.0 | ||||||||||||||||||||
| Cost of goods sold | 30.6 | 30.8 | 31.7 | 31.8 | ||||||||||||||||||||
| Gross profit | 69.4 | 69.2 | 68.3 | 68.2 | ||||||||||||||||||||
| Labor & other related expenses | 38.3 | 37.4 | 38.0 | 37.6 | ||||||||||||||||||||
| Other store operating expenses | 16.7 | 16.9 | 17.4 | 17.3 | ||||||||||||||||||||
| Impairment charges | -- | (0.3) | -- | 0.2 | ||||||||||||||||||||
| Store operating income | 14.4 | 15.2 | 12.9 | 13.1 | ||||||||||||||||||||
| General and administrative expenses | 5.3 | 5.9 | 5.7 | 5.8 | ||||||||||||||||||||
| Operating income | 9.1 | 9.3 | 7.2 | 7.3 | ||||||||||||||||||||
| Interest expense | 2.5 | 2.6 | 2.5 | 1.0 | ||||||||||||||||||||
| Interest income | 0.2 | 0.1 | 0.3 | -- | ||||||||||||||||||||
| Pretax income | 6.8 | 6.8 | 5.0 | 6.3 | ||||||||||||||||||||
| Provision for income taxes | 2.4 | 1.8 | 1.8 | 2.0 | ||||||||||||||||||||
| Income from continuing operations | 4.4 | 5.0 | 3.2 | 4.3 | ||||||||||||||||||||
| Income from discontinued operations | -- | 1.4 | 3.7 | 0.9 | ||||||||||||||||||||
| Net income | 4.4 | % | 6.4 | % | 6.9 | % | 5.2 | % | ||||||||||||||||
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CBRL
Announces Fiscal 2007 Fourth Quarter Results
Page
8
September
18, 2007
CONDENSED
CONSOLIDATED BALANCE SHEET
(Unaudited
and in thousands, except shares)
|
8/3/07
|
7/28/06
|
|||||||
| Assets |
|
|
||||||
|
Cash
and cash equivalents
|
$ |
14,248
|
$ |
87,830
|
||||
|
Assets
held for sale
|
4,676
|
3,127
|
||||||
|
Other
current assets
|
181,357
|
161,651
|
||||||
|
Current
assets of discontinued operations
|
--
|
401,222
|
||||||
|
Property
and equipment, net
|
1,018,982
|
982,504
|
||||||
|
Long-lived
assets
|
45,767
|
44,963
|
||||||
|
Total
assets
|
$ |
1,265,030
|
$ |
1,681,297
|
||||
|
Liabilities
and Shareholders’ Equity
|
||||||||
|
Current
liabilities
|
$ |
274,669
|
$ |
258,888
|
||||
|
Current
liabilities of discontinued operations
|
--
|
71,645
|
||||||
|
Long-term
debt
|
756,306
|
911,464
|
||||||
|
Other
long-term obligations
|
129,932
|
137,018
|
||||||
|
Shareholders’
equity
|
104,123
|
302,282
|
||||||
|
Total
liabilities and shareholders’ equity
|
$ |
1,265,030
|
$ |
1,681,297
|
||||
|
Common
shares outstanding
|
23,674,175
|
30,926,906
|
CBRL Announces Fiscal 2007 Fourth Quarter Results
Page 9
September 18, 2007
CONDENSED
CONSOLIDATED CASH FLOW STATEMENT
(Unaudited
and in thousands)
|
Fiscal
Year Ended
|
||
|
8/3/07
|
|
7/28/06
|
Cash
flows from continuing operations:
Cash
flows from operating activities:
|
Net
income
|
$ |
162,065
|
$ |
116,291
|
||||
|
Income
from discontinued operations, net of tax
|
(86,082 | ) | (20,790 | ) | ||||
|
Depreciation
and amortization
|
56,908
|
57,259
|
||||||
|
Loss
on disposition of property and equipment
|
53
|
1,501
|
||||||
|
Impairment
|
--
|
4,633
|
||||||
|
Accretion
on zero-coupon notes
|
5,237
|
5,747
|
||||||
|
Share-based
compensation, net of excess tax benefit
|
6,075
|
6,998
|
||||||
|
Cash
paid for accretion of zero-coupon senior convertible notes
|
(27,218 | ) |
--
|
|||||
|
Net
changes in other assets and liabilities
|
(20,166 | ) |
3,055
|
|||||
|
Net
cash provided by operating activities
|
96,872
|
174,694
|
||||||
|
Cash
flows from investing activities:
|
||||||||
|
Purchase
of property and equipment, net insurance
recoveries
|
(96,447 | ) | (89,167 | ) | ||||
|
Proceeds
from sale of Logan’s
|
265,986
|
--
|
||||||
|
Proceeds
from sale of property and equipment
|
8,726
|
6,905
|
||||||
|
Net
cash provided by (used in) investing activities
|
178,265
|
(82,262 | ) | |||||
|
Cash
flows from financing activities:
|
||||||||
|
Net
payments for credit facilities
|
||||||||
|
and
other long-term obligations
|
(120,989 | ) |
701,268
|
|||||
|
Proceeds
from exercise of stock options
|
33,179
|
27,283
|
||||||
|
Excess
tax benefit from share-based compensation
|
6,642
|
6,441
|
||||||
|
Purchases
and retirement of common stock
|
(405,531 | ) | (704,160 | ) | ||||
|
Other
|
--
|
(12,198 | ) | |||||
|
Dividends
on common stock
|
(15,610 | ) | (24,019 | ) | ||||
|
Net
cash used in financing activities
|
(502,309 | ) | (5,385 | ) | ||||
|
Net
cash provided by (used in) discontinued operations
|
153,590
|
(14,794 | ) | |||||
|
Net
(decrease) increase in cash and cash equivalents
|
(73,582 | ) |
72,253
|
|||||
|
Cash
and cash equivalents, beginning of period
|
87,830
|
15,577
|
||||||
|
Cash
and cash equivalents, end of period
|
$ |
14,248
|
$ |
87,830
|
-MORE-
CBRL
Announces Fiscal 2007 Fourth Quarter Results
Page
10
September
18, 2007
CBRL
GROUP, INC.
Supplemental
Information
(Unaudited)
|
Fourth
Quarter Ended
|
Fiscal
Year Ended
|
|||||
|
8/3/07
|
7/28/06
|
8/3/07
|
7/28/06
|
|||
Units
in
operation:
|
Open
at beginning of period
|
557
|
539
|
543
|
529
|
||||||||||||
|
Open
during period
|
5
|
4
|
19
|
21
|
||||||||||||
|
Closed
during period
|
--
|
--
|
--
|
(7 | ) | |||||||||||
|
Open
at end of period
|
562
|
543
|
562
|
543
|
||||||||||||
|
Total
revenue: (In thousands)
|
||||||||||||||||
|
Restaurant
|
$ |
509,772
|
$ |
455,065
|
$ |
1,844,804
|
$ |
1,748,193
|
||||||||
|
Retail
|
122,357
|
108,194
|
506,772
|
471,282
|
||||||||||||
|
Total
revenue
|
$ |
632,129
|
$ |
563,259
|
$ |
2,351,576
|
$ |
2,219,475
|
||||||||
|
Operating
weeks:
|
7,273
|
7,043
|
28,725
|
27,984
|
||||||||||||
|
Average
unit volume: (In thousands)
|
||||||||||||||||
|
Restaurant
|
$ |
981.3
|
$ |
840.0
|
$ |
3,403.9
|
$ |
3,248.5
|
||||||||
|
Retail
|
235.5
|
199.7
|
935.0
|
875.7
|
||||||||||||
|
Total
|
$ |
1,216.8
|
$ |
1,039.7
|
$ |
4,338.9
|
$ |
4,124.2
|
| Q4 2007 vs. Q4 2006 |
12
mo. 2007 vs. 12 mo. 2006
|
||||
| Comparable store sales period to period increase: | |||||
| Restaurant |
0.9%
|
0.7%
|
|||
| Retail |
2.5%
|
3.2%
|
|||
|
Number
of locations in comparable store base
|
530
|
507
|
|||
-END-
Exhibit
99.2
| [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 REPORTS PLANNED RETIREMENT OF CFO LAWRENCE E. WHITE
LEBANON,
Tenn. – September 18, 2007 -- CBRL Group, Inc. (“CBRL” or the
“Company”) (Nasdaq: CBRL) and its Board of Directors announced today that
Lawrence E. White will retire as Senior Vice President and Chief Financial
Officer, effective February 1, 2008, and that a search would immediately begin
for a successor.
“I
am
extremely proud of our accomplishments during the past several years and
especially of Larry's contributions,” said Michael A. Woodhouse, Chairman and
Chief Executive Officer. “We are very fortunate to have had him on
the CBRL team while we went through our turnaround and most recently, through
our very successful recapitalization initiatives and divestiture of our Logan’s
Roadhouse business last year. He will definitely be
missed. We are launching a nationwide search for a successor and
expect to have someone on board by the time Larry retires.” The
Company noted that it has an 18-month consulting arrangement with White in
order
to ensure a smooth transition.
White,
57, said, “In my eight years here, this company and its executive team have
consistently delivered on the vision Mike set forth when he became COO and
subsequently, Chairman and CEO. We have a superb brand, a powerful
position nationally and in our 41-state region and solid management teams in
both the finance and the senior executive leadership. I wish Mike and
the senior management team all the best in achieving new heights as they
continue our mission of “Pleasing People.” I am also pleased to offer
my continuing assistance through the transition, but I am looking forward to
starting this new chapter in my life.”
Headquartered
in Lebanon, Tennessee, CBRL Group, Inc. presently operates 564 Cracker Barrel
Old Country Store restaurants and gift shops located in 41 states.
-END-