Luby's Reports Second Quarter Fiscal 2012 ... - Food and Drink Digital

HOUSTON, March 21, 2012 /PRNewswire/ -- Luby's, Inc. (NYSE: LUB) ("Luby's") today announced its unaudited financial results for the second quarter fiscal 2012, a twelve-week period, which ended on February 15, 2012. ?

(Logo: http://photos.prnewswire.com/prnh/20100817/DA51671LOGO-b)

2012 Second Fiscal Quarter Review

• Restaurant sales were $73.4 million, an increase of 2.3%, or $1.7 million, compared to the same quarter last year. Same store sales rose 2.2% at the 93 Luby's Cafeterias, as average customer spend increased 2.9% and customer traffic declined 0.7%. The 93 Luby's cafeteria locations generated $52.5 million in restaurant sales, and the 60 company-operated Fuddruckers and Koo Koo Roo locations produced $20.9 million in restaurant sales.

Table 1: Same Store Sales by Quarter

	Q1	Q2	Q3	Q4	YTD
FY2012 Same-Store Sales:	3.5%	2.2%			2.8%
FY2011 Same-Store Sales:	5.5%	2.7%	3.5%	(0.6%)	2.5%

Note: Fuddruckers locations will not meet the Company's same-store sales definition until after 18 consecutive accounting periods, and thus will not be included in the results reported above until fiscal year 2012 quarter 3. Luby's locations include 92 cafeterias and one non-core restaurant.

Table 2: Restaurant Sales (In thousands)

Restaurant Sales	Q2 FY2012 12 weeks Ended 2/15/2012	Q2 FY2011 12 weeks Ended 2/9/2011	Variance	%
Luby's Cafeterias (1)	$ ? ? ?52,520	$ ? ?52,182	$ ? ? ? ?338	0.6%
Fuddruckers and Koo Koo Roo (2)	20,914	19,575	1,339	6.8%
Restaurant Sales	$ ? ? ?73,434	$ ? ?71,757	$ ? ? 1,677	2.3%

(1) 96 stores at FY2011 Q2 end; 93 stores at FY2012 Q2 end.

(2) 59 stores at FY2011 Q2 end; 60 stores at FY2012 Q2 end.

• Revenue from Culinary Contract Services rose to $4.2 million in the second quarter fiscal 2012 compared to $3.1 million in the same fiscal quarter last year. Culinary Contract Services ended the second quarter of fiscal 2012 operating 19 facilities, the same as the second quarter last year. ?The increase in sales volume resulted from operating more large volume facilities versus last year. Sales volume also rose at facilities that have been in operation for more than one year.
• Store level profit, defined as restaurant sales less food costs, payroll and related costs, and other operating expenses, rose to $11.1 million in the second quarter of fiscal 2012, or 15.2% of restaurant sales, compared to $8.3 million in the second quarter of fiscal 2011, or 11.6% of restaurant sales. Store level profit as a percentage of restaurant sales rose due to increased sales, as well as effective expense controls. Food and other operating costs declined in this year's second fiscal quarter versus last year's comparable quarter. As a percent of restaurant sales, payroll and related costs decreased approximately 50 basis points.
• In the second quarter fiscal 2012, Luby's reported income from continuing operations of $1.4 million, or $0.05 per share, compared to a loss of $0.3 million in the same quarter last year, or $0.01 per share. Last year's results included $0.3 million in after-tax expenses associated with professional fees related to the integration of Fuddruckers. ?

Chris Pappas, President and CEO, remarked, "Our sales continued their positive momentum in the second quarter. During the quarter, we benefited from our local marketing initiatives and our brand building strategies, as well as unseasonably mild weather in our operating areas, especially our Texas markets. ?We continue to focus on refining and enhancing our operations. We are determined to offer our guests the highest level of service and satisfaction.

"Sales at our company-owned Fuddruckers locations rose 6.8% in the second quarter versus last year. We continue to recognize the value of the investments we have made in this brand over the past eighteen months. Our guests have responded positively to our new menu items, our well-trained counter personnel and the ongoing updates we are making in the decor. During the second quarter, two new franchises opened, one in Omaha, Nebraska and the second in Del Rio, Texas. Our 2012 expansion plans are on track and we still plan to open at least three company-owned Fuddruckers before the end of the fiscal year. We are proud of what our Fuddruckers team accomplished in the quarter and we see tremendous opportunities to continue to enhance the brand and to grow through company-owned and franchised locations.

"For the second quarter, each of our major restaurant expense categories declined as a percent of revenue. Even in the face of rising commodity costs, our food expenses have gone down versus last year due to more rigorous management, changes in product mix, and slightly higher menu prices. We have also benefited from our targeted local marketing initiatives at Luby's Cafeterias, which provide our store managers with the ability to drive traffic with menu items that they select themselves based on their knowledge and understanding of their customers.

"During the second fiscal quarter of 2012, we invested $4.7 million in capital expenditures, including purchasing land in Pearland, Texas for a new Luby's Cafeteria and 2,500 square foot Fuddruckers. We also completed the remodel of eight cafeterias, including two that we started in the first quarter. ?At our Fuddruckers brand, we completed two limited remodels on existing locations and began converting two new spaces that will open by the end of our fiscal year. Our debt rose by $2.0 million during the second quarter to $19.5 million due to the property tax payments and capital expenditures. We ended the quarter with $1.2 million in cash, $166.7 million in shareholders' equity and $29.6 million available under our credit facility. ?

"During the first two fiscal quarters 2012, we spent $9.2 million on capital expenditures, including $5.6 million on new unit development and remodeling of our existing restaurants. We are on track to invest approximately $15 to $20 million in capital projects during fiscal 2012, with up to $7.0 million dedicated to new unit development and about $6.0 million allocated to refurbishing approximately 30 existing restaurants."

Operating Expense Review

Food costs declined approximately $0.6 million, to $20.8 million in the second quarter fiscal 2012 compared to the same fiscal quarter last year, as we effectively managed our inventories, prices and menu items, while reducing our limited time offers. We continue to gain benefits from the restaurant back office system we implemented last fiscal year. ?Our managers have embraced this tool and are relying on it to project demand and to monitor inventory. ?Food costs as a percentage of restaurant sales declined to 28.3% in the second quarter fiscal 2012 from 29.8% in the comparable quarter last year.

Payroll and related costs in the second quarter fiscal 2012 rose $0.2 million to $25.4 million, compared to last year's second fiscal quarter. As a percentage of restaurant sales, payroll and related costs declined to 34.6% in the second quarter fiscal 2012 from 35.1% in the same quarter last year, primarily due to the process improvements we have rolled out over the past year to enhance scheduling. Our store managers have steadily become more proficient at matching labor deployment to the level of customer traffic each day. They remain focused on training their crews and making sure the right person is on the right shift at the right time. ?

Other operating expenses include restaurant-related expenses for utilities, repairs and maintenance, advertising, insurance, supplies, services, and occupancy costs. Other operating expenses in the second quarter fiscal 2012 declined approximately $0.7 million, to $16.1 million, compared to the same quarter last year. ?As a percentage of restaurant sales, other operating expenses decreased to 22.0% compared to 23.5% in the same quarter last year; reductions in repairs and maintenance, utilities, supplies and insurance more than offset higher occupancy and marketing and advertising costs.

Depreciation and amortization expense increased $0.2 million to $4.1 million due to remodeling activity and shortened depreciable lives on a few leased units. ?

General and administrative expenses rose approximately $0.2 million to $6.7 million in the second quarter fiscal 2012 compared to the same quarter last year. As a percentage of total revenues, general and administrative expenses were 8.5%, unchanged compared to the same quarter last year.

Fiscal Year-to-Date Review

• Restaurant sales increased $4.5 million, to $146.6 million, during the first two fiscal quarters of 2012; Luby's Cafeterias generated sales of $105.1 million and Fuddruckers contributed sales of $41.5 million.
• Luby's Culinary Contract Services produced $8.7 million in sales during the first two fiscal quarters versus $6.5 million during the comparable quarters last fiscal year.
• Income from continuing operations grew to $1.9 million in the first two fiscal quarters of 2012, compared to a loss of $2.4 million in the comparable quarters of fiscal 2011. ?
• Store level profit rose to $21.2 million during the first two fiscal quarters of 2012, up from $14.5 million in the comparable quarters of fiscal 2011. As a percentage of restaurant sales, store level profit grew to 14.4% this year, compared to 10.2% in the comparable quarters last year.

Outlook

Our objective remains to grow cash flow from operating activities and to grow profitability for the full fiscal 2012. Profitability is contingent on same store sales growth as well as effective management of our expenses. ?We remain cautious about future increases in gasoline prices impacting customer traffic. We believe year-over-year increases in food commodity costs are beginning to moderate.

Due to our strong sales and effective cost management in the first two fiscal quarters, we are raising our sales and earnings expectations for our 2012 fiscal year. We now anticipate that our same store sales will grow between 1.0% and 2.0% for the full fiscal year 2012. ?(Please note that the Fuddruckers units will be included in the same store sales metric beginning with our third fiscal quarter of 2012.) ?Total restaurants sales for fiscal year 2012 are expected to be between $320 million and $323 million. ?This compares to total restaurant sales of $319 million in fiscal year 2011 when adjusted for a comparable 52 week year. We are also raising our fiscal 2012 earnings per share from continuing operations guidance range to $0.15 to $0.18, up from $0.09 to $0.12 previously. ?

Conference Call

The Company will host a conference call tomorrow, March 22, 2012, at 9:30 a.m., Central Time, to discuss further its 2012 fiscal second quarter results. To access the call live, dial (480) 629-9765 and ask for the Luby's conference call at least 10 minutes prior to the start time, or listen live over the Internet by visiting the events page in the investor relations section of www.lubys.com. ?For those who cannot listen to the live call, a telephonic replay will be available through March 29, 2012 and may be accessed by calling (303) 590-3030 and using the pass code 4521150#. Also, an archive of the webcast will be available after the call for a period of 90 days on the "Investors" section of the Company's website.

About Luby's

Luby's, Inc. operates restaurants under the brands Luby's Cafeteria and Fuddruckers and provides food service management through its Luby's Culinary Services division. The company-operated restaurants include 92 Luby's cafeterias, 57 Fuddruckers restaurants, and four other non-core restaurants. Its 92 Luby's cafeterias are located throughout Texas and other states. Its Fuddruckers restaurants include 57 company-operated locations and 122 franchises across the United States (including Puerto Rico) and Canada. Luby's Culinary Services provides food service management to 19 sites consisting of healthcare, higher education and corporate dining locations.

This press release contains statements that are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. ?All statements contained in this press release, other than statements of historical fact, are "forward-looking statements" for purposes of these provisions, including the statements under the caption "Outlook" and any other statements regarding scheduled openings of units, scheduled closures of units, sales of assets, expected proceeds from the sale of assets, expected levels of capital expenditures, effects of food commodity costs, the expected financial impact of Fuddruckers restaurants, anticipated financial results in future periods and expectations of industry conditions.

The Company cautions readers that various factors could cause its actual financial and operational results to differ materially from those indicated by forward-looking statements made from time-to-time in news releases, reports, proxy statements, registration statements, and other written communications, as well as oral statements made from time to time by representatives of the Company. ?The following factors, as well as any other cautionary language included in this press release, provide examples of risks, uncertainties and events that may cause the Company's actual results to differ materially from the expectations the Company describes in its "forward-looking statements": general business and economic conditions; the impact of competition; our operating initiatives; fluctuations in the costs of commodities, including beef, poultry, seafood, dairy, cheese and produce; increases in utility costs, including the costs of natural gas and other energy supplies; changes in the availability and cost of labor; the seasonality of the Company's business; changes in governmental regulations, including changes in minimum wages; the effects of inflation; the availability of credit; unfavorable publicity relating to operations, including publicity concerning food quality, illness or other health concerns or labor relations; the continued service of key management personnel; and other risks and uncertainties disclosed in the Company's annual reports on Form 10-K and quarterly reports on Form 10-Q.

For additional information contact:

DRG&L / 713-529-6600
Ken Dennard / Sheila Stuewe
Investor Relations

Consolidated Statements of Operations (In thousands except per share data)
	Quarter Ended		Two Quarters Ended
	February?15, 2012	February?9, 2011	February?15, 2012	February?9, 2011
	(12?weeks)	(12?weeks)	(24?weeks)	(24?weeks)
SALES:
Restaurant sales	$ ?73,434	$ ?71,757	$ ?146,592	$ ?142,047
Culinary contract services	4,197	3,127	8,733	6,459
Franchise revenue	1,653	1,520	3,135	3,021
Vending revenue	131	132	278	285
TOTAL SALES	79,415	76,536	158,738	151,812
COSTS AND EXPENSES:
Cost of food	20,758	21,399	41,263	42,259
Payroll and related costs	25,400	25,190	50,487	50,234
Other operating expenses	16,147	16,835	33,660	35,038
Opening costs	42	38	77	144
Cost of culinary contract services	4,137	2,879	8,243	5,864
Depreciation and amortization	4,132	3,967	8,246	8,148
General and administrative expenses	6,737	6,491	13,547	13,004
Provision for asset impairments, net	0	84	175	84
Net loss (gain) on disposition of property and equipment	72	(35)	81	(28)
Total costs and expenses	77,425	76,848	155,779	154,747
INCOME (LOSS) FROM OPERATIONS	1,990	(312)	2,959	(2,935)
Interest income	2	1	3	4
Interest expense	(215)	(553)	(494)	(1,171)
Other income, net	190	290	407	514
Income (loss) before income taxes and discontinued operations	1,967	(574)	2,875	(3,588)
Provision (benefit) for income taxes	603	(310)	928	(1,216)
Income (loss) from continuing operations	1,364	(264)	1,947	(2,372)
Income (loss) from discontinued operations, net of income taxes	(276)	981	(656)	801
NET INCOME (LOSS)	$ ?1,088	$ ?717	$ ?1,291	$ ?(1,571)
Income (loss) per share from continuing operations:
Basic	$ ?0.05	$ ?(0.01)	$ ?0.07	$ ?(0.09)
Assuming dilution	0.05	(0.01)	0.07	(0.09)
Income (loss) per share from discontinued operations:
Basic	$ ?(0.01)	$ ?0.04	$ ?(0.02)	$ ?0.03
Assuming dilution	(0.01)	0.04	(0.02)	0.03
Net income (loss) per share:
Basic	$ ?0.04	$ ?0.03	$ ?0.05	$ ?(0.06)
Assuming dilution	0.04	0.03	0.05	(0.06)
Weighted average shares outstanding:
Basic	28,365	28,172	28,329	28,168
Assuming dilution	28,410	28,172	28,359	28,168

The following table contains information derived from the Company's Consolidated Statements of Operations expressed as a percentage of sales. ?Percentages may not add due to rounding.

		Quarter Ended						Two Quarters Ended
		February 15,			February 9,			February 15,			February 9,
		2012			2011			2012			2011
		(12 weeks)			(12 weeks)			(24 weeks)			(24 weeks)
Restaurant sales			92.5	%		93.8	%		92.3	%		93.6	%
Culinary contract services			5.3	%		4.1	%		5.5	%		4.3	%
Franchise revenue			2.1	%		2.0	%		2.0	%		2.0	%
Vending revenue			0.2	%		0.2	%		0.2	%		0.2	%
TOTAL SALES			100	%		100	%		100	%		100	%
COSTS AND EXPENSES:
(As a percentage of restaurant sales)
Cost of food			28.3	%		29.8	%		28.1	%		29.7	%
Payroll and related costs			34.6	%		35.1	%		34.4	%		35.4	%
Other operating expenses			22.0	%		23.5	%		23.0	%		24.7	%
Store level profit			15.2	%		11.6	%		14.4	%		10.2	%
(As a percentage of total sales)
General and administrative expenses			8.5	%		8.5	%		8.5	%		8.6	%
INCOME (LOSS) FROM OPERATIONS			2.5	%		(0.4)	%		1.9	%		(1.9)	%

Consolidated Balance Sheets (In thousands)
	February?15,? 2012 ?	August?31, 2011 ?
	(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents	$ ?1,248	$ ?1,252
Trade accounts and other receivables, net	3,865	4,429
Food and supply inventories	4,881	4,191
Prepaid expenses	2,225	1,960
Assets related to discontinued operations	54	67
Deferred income taxes	2,883	2,865
Total current assets	15,156	14,764
Note receivable	197	0
Property held for sale	596	1,046
Assets related to discontinued operations	6,526	7,837
Property and equipment, net	168,482	166,963
Intangible assets, net	27,443	28,098
Goodwill	195	195
Deferred incomes taxes	7,246	7,680
Other assets	1,642	1,437
Total assets	$ ?227,483	$ ?228,020
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable	$ ?14,812	$ ?14,226
Liabilities related to discontinued operations	462	608
Accrued expenses and other liabilities	16,535	18,588
Total current liabilities	31,809	33,422
Credit facility debt	19,500	21,500
Liabilities related to discontinued operations	1,256	1,220
Other liabilities	8,185	6,841
Total liabilities	60,750	62,983
Commitments and Contingencies
SHAREHOLDERS' EQUITY
Common stock, $0.32 par value; 100,000,000 shares authorized; Shares issued were 28,677,203 and 28,651,277, respectively; Shares outstanding were 28,177,203 and 28,151,277, respectively	9,177	9,168
Paid-in capital	24,168	23,772
Retained earnings	138,163	136,872
Less cost of treasury stock, 500,000 shares	(4,775)	(4,775)
Total shareholders' equity	166,733	165,037
Total liabilities and shareholders' equity	$ ?227,483	$ ?228,020

Consolidated Statements of Cash Flows (In thousands)
	Two Quarters ended ?
	February 15, 2012 ?	February 9, 2011 ?
	(24?weeks)	(24?weeks)
CASH FLOWS FROM OPERATING ACTIVIT Source: http://www.foodanddrinkdigital.com/press_releases/lubys-reports-second-quarter-fiscal-2012-results paul ryan hines ward mega millions winning numbers mexico news the talented mr ripley weather new orleans breaking dawn part 2 trailer Subscribe to: Post Comments (Atom) Followers Blog Archive ►  2013 (655) ►  July (161) ►  June (74) ►  April (82) ►  March (106) ►  February (102) ►  January (130) ▼  2012 (1442) ►  December (190) ►  November (153) ►  October (43) ►  September (186) ►  August (179) ►  July (175) ►  June (157) ►  May (114) ►  April (62) ▼  March (114) Coping with asthma leaves schools gasping | EdNews... Coupon Promotions | MyDealCompass Blog | Business ... asics ? Blog Archive ? louboutin pumps News and So... Dental Health a good solid is | thoroughbredblogge... MARC travel award announced for the 2012 ASCI/AAP ... New CEO at IBM revives Augusta membership debate programming courses . Computer Training ? Retraini... World's first bedside genetic test Pauly D Reintroduces Himself On 'The Pauly D Project' Family Tree Scrapbook Scrapbooking - Scrapbooking ... Finally: A Slim and Simple iPhone Money Clip [Desi... Communications Coordinator ? SoundExchange Judy Garland?s former home hits the market Paper for iPad Hands-On: So This Is What Microsoft... E-Commerce and Online Stores news ? The Usefulness... A pizzeria where all the pies are fried Golf as a Recreation ? ebogobipyrut How to save Europe's most threatened butterflies YC Demo Day Session 2: Midnox, 42Floors, Sonalight... Arab ministers want Syria to halt crackdown The psychology of a turnaround ? Business Manageme... Oil prices fall as supplies grow Temple Run for Android now available from Google Play Transforming Long-Term Care via Mobile Health ? Short term bridging finance for personal or commer... Optimistic on Greece, says EU task force boss Interesting Baby Gifts For A Special Little One | ... 'Pierre Poutine' recorded a call on behalf of Libe... Your Variations Involving Aged Along with Brand-ne... Garage Bike Storage Hooks BroBible: Canada Vs. U.S.A. Soldier Tug of War -- ... PGA_com: Phil Price leads windsept Hassan II Troph... MGM says it will lose money on 'Dragon Tattoo' abercrombie fitch online Food and Drink Soups Arti... Facebook Photos Now Shown In 4X Bigger High Resolu... French police press besieged gunman to surrender Growth worries hit Asian shares, Aussie dollar Buy and Sell: The Use of National Real Estate Sites Foreign guarantors help plug emerging funding gap Attend Evergreen VIP with Sun City Peachtree - Atl... How to Finance Auto Loans ? Articles Support Boeing's Jets of the Future Will Be 60 Percent Mor... Is a Loan After Bankruptcy Even Possible? Luby's Reports Second Quarter Fiscal 2012 ... ... Judges order 2 Milwaukee voting districts to be re... Debut of Judd's 'Missing' on ABC lands in top 10 George Michael "fighting fit," to re-start tour Top Articles World ? Numerous Direct Marketing tac... Genetic variation in human gut viruses could be ra... Syrian forces take eastern city from rebels Study of 'meth babies' finds behavior problems Green Real Estate ? Blog Archive ? It Is Time to H... Chris Blizzard bids farewell to Firefox, heads for... Lil Wayne's Mansion; Rapper Told To Cut Grass Of L... Mothers Of Children With Autism Earn 56 Percent Less Nashville Neighborhoods News You Can Use! | Nashvi... Illinois Looking Like Fertile Ground for Mitt Romney '21 Jump Street' leaps to No. 1 with $35M debut ferragamo shoes Health and Fitness Aromatherapy Ar... An Overview Of Outdoor umbrella Insurance policies... Rip it out and start over | Home Improvement Remod... Heading Hybrid With Your Boston Heating And Air Co... Credit Repair: How To Help Yourself | Money & Finance See all the luxury estates, homes, condominiums, t... Papers reveal Thatcher kept Reagan's doodles Improve Your House By Doing These Simple Tricks | ... Nutritional Supplements Side Effects | Health and ... Get Commercial Loans Easily! - Finance & Business ... air jordan 7 Food and Drink Vegetarian Recipes Art... Incentives matter when it comes to investing | Abn... SEO Link Building: Making Websites Well Known | Am... Acupuncture Websites ? Simple Tips For Effective A... The Significance Of Protein Bars In Health And Fit... Sandra Bullock: I'm Not Adopting Again Right Now French army ups vigilance after deadly shootings Charge Coalescence ( blank ) mixing up many person... Apple iTunes 10.6 Cognitive changes in multiethnic Asian breast canc... Finding the Right Home for Your Family ? Real Esta... jordan retro 15 Food and Drink Cooking Tips Articl... Here's to Handy Andy: DIY Home Improvements fo... Top 4 Ideas For Your Presentations | Self Improvem... Disaster Recovery Efforts to Gain from New ... - C... My Starwar Blog ? Where to Get Inspiration for New... Blashter ? Archives ? Create Personal Esteem ? Bla... Video: Voter ID laws hinder right to vote, says At... Israel says it backs Gaza Strip desalination plant Sarkozy's tomato-tossing son puts president's 'law... One Year Later, What Does Fukushima Mean for Nucle... nike jordans Recreation and Sports Extreme Article... Analysis-nfl-tebow Discussion Rages On Despite Com... Dos muertos tras un salto improvisado de Bungee Ju... Obtain the Greatest Philadelphia Personal Injury L... Jetsetter Moves Beyond Flash Sales: Recommendation... How to Approach Your Business's Customer Servi... Neyyattinkara Real Estate - Land for Sale at Vazhu... Can a Backpack Be Chic? [Uniform] 3 Weeks Left: World's Best Sweepstakes! - Carr... Strong 3 months of hiring as US adds 227,000 jobs Wine collector faces federal fraud charges in NYC ►  February (69) About Me prosserzelma40 View my complete profile Watermark theme. Powered by Blogger.