Board declares $1.30 quarterly dividend per share
LEBANON,
Tenn., June 6, 2023 /PRNewswire/ -- Cracker
Barrel Old Country Store, Inc. ("Cracker Barrel" or the "Company")
(Nasdaq: CBRL) today reported its financial results for the
third quarter of fiscal 2023 ended April 28,
2023.
Third Quarter Fiscal 2023 Highlights
- The Company reported third quarter total revenue of
$832.7 million. Compared to the prior
year third quarter, total revenue increased 5.4%.
-
- Comparable store restaurant sales increased 7.4%, while
comparable store retail sales decreased 4.6%.
- GAAP operating income for the third quarter was $16.8 million, or 2.0% of total revenue, and
adjusted1 operating income was $33.9 million, or 4.1% of total revenue.
- GAAP net income was $14.0
million, or 1.7% of total revenue. Adjusted
EBITDA1 was $60.3 million,
or 7.2% of total revenue.
- GAAP earnings per diluted share were $0.63, and adjusted1 earnings per
diluted share were $1.21.
- The Company announced that its Board of Directors declared a
regular quarterly dividend of $1.30
per share.
Commenting on the third quarter results, Cracker Barrel
President and Chief Executive Officer, Sandra B. Cochran said, "Our third quarter
results included solid comparable store restaurant sales growth of
7.4% compared to the prior year. Although this was below our
expectations as a result of the casual dining traffic declines that
occurred toward the end of the quarter, I was pleased that we
outperformed the Black Box Intelligence Casual Dining Index for the
fourth consecutive quarter. Our teams remain focused on operational
excellence, staffing and retention, and delivering an exceptional
guest experience. Our everyday value and menu innovation is
resonating with guests, and we're making great progress on key
initiatives including catering, our loyalty program, and cost
savings, which we believe will position us well for the long-term
as we navigate through the present uncertain
environment."
Third Quarter Fiscal 2023 Results
Revenue
The Company reported total revenue of $832.7
million for the third quarter of fiscal 2023, representing
an increase of 5.4% compared to the third quarter of fiscal 2022.
Cracker Barrel comparable store restaurant sales increased 7.4%,
including total menu pricing of approximately 8.8%. Comparable
store retail sales decreased 4.6% from the prior year quarter.
Operating Income
GAAP operating income for the
third quarter was $16.8 million, or
2.0% of total revenue, compared to $30.5
million, or 3.9% of total revenue, in the prior year
quarter. Excluding approximately $13.9
million dollars in impairment charges and store closure
costs and the approximately $3.2
million in non-cash amortization related to the gains on the
previously disclosed sale and leaseback transactions,
adjusted1 operating income for the third quarter was
$33.9 million, or 4.1% of total
revenue, compared to $33.6 million,
or 4.3%, of total revenue in the prior year quarter.
The decline in the Company's GAAP operating income as a
percentage of total revenue versus the prior year quarter is
primarily due to impairment charges and store closure expenses,
higher general and administrative expenses, and higher cost of
retail goods sold in the current year quarter.
The decline in the Company's adjusted operating income as a
percentage of total revenue versus the prior year quarter is
primarily due to higher general and administrative expenses and
cost of retail goods sold in the current year quarter, partially
offset by lower restaurant cost of goods sold and lower labor and
related expenses in the current year quarter.
Net Income, EBITDA, and Earnings per Diluted
Share
GAAP net income for the third quarter was
$14.0 million, or 1.7% of total
revenue compared to prior year quarter GAAP net income of
$27.5 million, or 3.5% of total
revenue. Adjusted EBITDA1 was $60.3 million, or 7.2% of total revenue, a 1.2%
increase compared to the prior year quarter
EBITDA1 of $59.6 million, or 7.5% of total revenue.
GAAP earnings per diluted share for the third quarter were
$0.63, a 47% decrease compared
to the prior year quarter GAAP earnings per diluted share of
$1.19.
Adjusted1 earnings per diluted share were
$1.21, a 6.2% decrease compared to
the prior year quarter adjusted1 earnings per diluted
share of $1.29.
Quarterly Dividend Declaration
The Company announced
that its Board of Directors declared a quarterly dividend of
$1.30 per share on the Company's
common stock. The quarterly dividend is payable on August 8, 2023 to shareholders of record as of
July 21, 2023.
Fiscal 2023 Fourth Quarter Outlook
The Company
anticipates the near-term environment will remain challenged due to
heightened economic uncertainty, lower discretionary spending, and
weaker consumer confidence. The Company has accordingly updated its
outlook for the fourth quarter as follows:
- Total revenue growth of 1% to 3% compared to the prior year
quarter;
- One new Cracker Barrel unit and five to seven new Maple Street
Biscuit Company units;
- Commodity inflation that is approximately flat and wage
inflation of approximately 5% compared to the prior year
quarter;
- GAAP operating income margin rate of 4.1% to 5.1% and adjusted
operating income margin rate of 4.5% to 5.5%;
- Capital expenditures of approximately $30 million to $35
million;
- A GAAP effective tax rate of approximately 0%.
Additionally, the Company now anticipates sustainable cost
savings and business model improvements that are expected to
contribute approximately $30 million
to fiscal 2023 profitability with further gains in fiscal
2024.
The Company reminds readers that the uncertainties created by
current macroeconomic conditions may cause actual results to differ
materially from those expected and that its outlook for fiscal 2023
reflects a number of assumptions, many of which are outside the
Company's control.
1 For Non-GAAP
reconciliations, please refer to the Reconciliation of GAAP-basis
operating results to non-GAAP operating results section of this
release.
|
Fiscal 2023 Third Quarter Conference Call
As
previously announced, the live broadcast of Cracker Barrel's
quarterly conference call will be available to the public online at
investor.crackerbarrel.com today beginning at 11:00 a.m. (ET). The online replay will be
available at 2:00 p.m. (ET) and
continue through June 20, 2023.
About Cracker Barrel Old Country
Store®
Cracker Barrel Old Country Store,
Inc. (Nasdaq: CBRL) provides a caring and friendly
home-away-from-home experience while offering guests high-quality
homestyle food to enjoy in-store or to-go and unique shopping — all
at a fair price. Established in 1969 in Lebanon, Tenn., Cracker Barrel and its
affiliates operate approximately 660 company-owned Cracker Barrel
Old Country Store® locations in 45 states and own the fast-casual
Maple Street Biscuit Company. For more information about the
Company, visit crackerbarrel.com.
CBRL-F
Except for specific historical information, certain of the
matters discussed in this press release may express or imply
projections of revenues or expenditures, statements of plans and
objectives or future operations or statements of future economic
performance. These, and similar statements are forward-looking
statements concerning matters that involve risks, uncertainties and
other factors which may cause the actual performance of Cracker
Barrel Old Country Store, Inc. and its subsidiaries to differ
materially from those expressed or implied by this discussion. All
forward-looking information is subject to completion of our
financial procedures for Q3 FY 2023 and is provided pursuant to the
safe harbor established under the Private Securities Litigation
Reform Act of 1995 and should be evaluated in the context of these
factors. Forward-looking statements generally can be identified by
the use of forward-looking terminology such as "trends,"
"assumptions," "target," "guidance," "outlook," "opportunity,"
"future," "plans," "goals," "objectives," "expectations,"
"near-term," "long-term," "projection," "may," "will," "would,"
"could," "expect," "intend," "estimate," "anticipate," "believe,"
"potential," "regular," "should," "projects," "forecasts," or
"continue" (or the negative or other derivatives of each of these
terms) or similar terminology and include the expected effects of
COVID-19 on our business, financial condition and results of
operations and of operational improvement initiatives, such as new
menu items and retail offerings. Factors which could materially
affect actual results include, but are not limited to: risks and
uncertainties associated with inflationary conditions with respect
to the cost for food, ingredients, retail merchandise,
transportation, distribution, labor and utilities and their effects
on the availability of key inputs to our business as well as
consumer spending, travel and demand generally; the COVID-19
pandemic, including the duration of the COVID-19 pandemic and its
ultimate impact on our business, levels of consumer confidence in
the safety of dine-in restaurants, restrictions (including
occupancy restrictions) imposed by governmental authorities, the
effectiveness of cost saving measures undertaken throughout our
operations, disruptions to our operations as a result of the spread
of COVID-19 in our workforce, and our level of indebtedness, or
constraints on our expenditures, ability to service our debt
obligations or make cash distributions to our shareholders or cash
management generally; general or regional economic weakness,
business and societal conditions, and weather on sales and customer
travel; discretionary income or personal expenditure activity of
our customers; information technology-related incidents, including
data privacy and information security breaches, whether as a result
of infrastructure failures, employee or vendor errors, or actions
of third parties; our ability to identify, acquire and sell
successful new lines of retail merchandise and new menu items at
our restaurants; our ability to sustain or the effects of plans
intended to improve operational or marketing execution and
performance; uncertain performance of acquired businesses,
strategic investments and other initiatives that we may pursue now
or in the future; 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 our brands and products; commodity
price increases; the ability of and cost to us to recruit, train,
and retain qualified hourly and management employees; the effects
of increased competition at our locations on sales and on labor
recruiting, cost, and retention; workers' compensation, group
health and utility price changes; consumer behavior based on
negative publicity or changes in consumer health or dietary trends
or safety aspects of our food or products or those of the
restaurant industry in general, including concerns about outbreaks
of infectious disease, as well as the possible effects of such
events on the price or availability of ingredients used in our
restaurants; the effects of our indebtedness, including under our
credit facility and our convertible senior notes, and associated
restrictions on our financial and operating flexibility and ability
to execute or pursue our operating plans and objectives; changes in
interest rates, increases in borrowed capital or capital market
conditions affecting our financing costs and ability to refinance
all or portions of our indebtedness; the effects of dilution of our
existing stockholders' ownership interest that may ensue from any
conversions of our convertible senior notes or the related warrants
issued in connection with our convertible note hedging
transactions; the effects of business trends on the outlook for
individual restaurant locations and the effect on the carrying
value of those locations; our ability to retain key personnel; the
availability and cost of suitable sites for restaurant development
and our ability to identify those sites; our ability to enter
successfully into new geographic markets that may be less familiar
to us; 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 or our ability to manage the impact of social media
associated with these activities; economic or psychological effects
of natural disasters or unforeseen events such as terrorist acts,
social unrest or war and the military or government responses to
such events; disruptions to our restaurant or retail supply chain,
including as a result of COVID-19; changes in foreign exchange
rates affecting our future retail inventory purchases; the impact
of activist shareholders; our reliance on limited distribution
facilities and certain significant vendors; implementation of new
or changes in interpretation of existing accounting principles
generally accepted in the United States
of America ("GAAP"); and other factors described from time
to time in our filings with the Securities and Exchange Commission,
press releases, and other communications. Any forward-looking
statement made by us herein, or elsewhere, speaks only as of the
date on which made. We expressly disclaim any intent, obligation or
undertaking to update or revise any forward-looking statements made
herein to reflect any change in our expectations with regard
thereto or any change in events, conditions or circumstances on
which any such statements are based.
CRACKER BARREL OLD
COUNTRY STORE, INC.
|
CONDENSED
CONSOLIDATED INCOME STATEMENT
|
(Unaudited)
|
(In thousands,
except share and per share amounts, percentages and
ratios)
|
|
|
Third Quarter
Ended
|
|
Nine Months
Ended
|
|
|
4/28/2023
|
4/29/2022
|
Percentage
Change
|
|
4/28/2023
|
4/29/2022
|
Percentage
Change
|
|
|
|
|
|
|
|
|
Total
revenue
|
$832,689
|
$790,196
|
5 %
|
|
$2,606,076
|
$2,437,386
|
7 %
|
Cost of goods sold
(exclusive of depreciation & rent)
|
262,191
|
250,048
|
5
|
|
870,286
|
776,460
|
12
|
Labor and other related
expenses
|
297,883
|
283,664
|
5
|
|
903,558
|
854,647
|
6
|
Other store operating
expenses
|
196,886
|
185,870
|
6
|
|
602,447
|
561,715
|
7
|
General and
administrative expenses
|
45,049
|
40,160
|
12
|
|
136,515
|
124,533
|
10
|
Impairment and store
closing costs
|
13,890
|
0
|
-
|
|
13,890
|
0
|
-
|
Operating
income
|
16,790
|
30,454
|
(45)
|
|
79,380
|
120,031
|
(34)
|
Interest
expense
|
4,536
|
2,171
|
109
|
|
12,476
|
7,000
|
78
|
Income before income
taxes
|
12,254
|
28,283
|
(57)
|
|
66,904
|
113,031
|
(41)
|
Provision for income
taxes (income tax benefit)
|
(1,714)
|
767
|
(323)
|
|
5,316
|
14,515
|
(63)
|
Net income
|
$13,968
|
$27,516
|
(49)
|
|
$61,588
|
$98,516
|
(37)
|
|
|
|
|
|
|
|
|
Earnings per share –
Basic:
|
$0.63
|
$1.19
|
(47)
|
|
$2.78
|
$4.22
|
(34)
|
Earnings per share –
Diluted:
|
$0.63
|
$1.19
|
(47)
|
|
$2.77
|
$4.21
|
(34)
|
|
|
|
|
|
|
|
|
Weighted average
shares:
|
|
|
|
|
|
|
|
Basic
|
22,152,002
|
23,089,521
|
(4)
|
|
22,173,019
|
23,330,093
|
(5)
|
Diluted
|
22,254,511
|
23,170,900
|
(4)
|
|
22,266,333
|
23,409,118
|
(5)
|
|
|
|
|
|
|
|
|
Ratio
Analysis
|
|
|
|
|
|
|
|
Total
revenue:
|
|
|
|
|
|
|
|
Restaurant
|
81.8 %
|
80.0 %
|
|
|
79.1 %
|
78.1 %
|
|
Retail
|
18.2
|
20.0
|
|
|
20.9
|
21.9
|
|
Total
revenue
|
100.0
|
100.0
|
|
|
100.0
|
100.0
|
|
Cost of goods sold
(exclusive of depreciation & rent)
|
31.5
|
31.6
|
|
|
33.4
|
31.9
|
|
Labor and other related
expenses
|
35.8
|
35.9
|
|
|
34.7
|
35.1
|
|
Other store operating
expenses
|
23.6
|
23.6
|
|
|
23.1
|
23.0
|
|
General and
administrative expenses
|
5.4
|
5.0
|
|
|
5.3
|
5.1
|
|
Impairment and store
closing costs
|
1.7
|
0.0
|
|
|
0.5
|
0.0
|
|
Operating
income
|
2.0
|
3.9
|
|
|
3.0
|
4.9
|
|
Interest
expense
|
0.5
|
0.3
|
|
|
0.4
|
0.3
|
|
Income before income
taxes
|
1.5
|
3.6
|
|
|
2.6
|
4.6
|
|
Provision for income
taxes (income tax benefit)
|
(0.2)
|
0.1
|
|
|
0.2
|
0.6
|
|
Net income
|
1.7 %
|
3.5 %
|
|
|
2.4 %
|
4.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
CRACKER BARREL OLD COUNTRY STORE,
INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited and in thousands, except share
amounts)
|
|
4/28/23
|
|
4/29/22
|
|
Assets
|
|
|
|
|
Cash and
cash equivalents
|
$22,452
|
|
$24,773
|
|
Accounts
receivable
|
32,086
|
|
31,238
|
|
Inventories
|
184,813
|
|
192,360
|
|
Prepaid
expenses and other current assets
|
33,681
|
|
45,725
|
|
Property
and equipment, net
|
963,565
|
|
958,928
|
|
Operating
lease right-of-use assets, net
|
903,435
|
|
946,813
|
|
Intangible
assets
|
22,090
|
|
21,229
|
|
Other
assets
|
46,657
|
|
53,378
|
|
Goodwill
|
4,690
|
|
4,690
|
|
Total assets
|
$2,213,469
|
|
$2,279,134
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
Accounts
payable
|
$132,032
|
|
$125,436
|
|
Other
current liabilities
|
317,191
|
|
340,169
|
|
Long-term
debt
|
444,545
|
|
372,894
|
|
Long-term
operating lease liabilities
|
711,199
|
|
731,300
|
|
Other
long-term obligations
|
54,995
|
|
66,330
|
|
Deferred
income taxes
|
79,639
|
|
78,776
|
|
Shareholders' equity, net
|
473,868
|
|
564,229
|
|
Total liabilities and shareholders' equity
|
$2,213,469
|
|
$2,279,134
|
|
|
|
|
|
|
Common shares issued
and outstanding
|
22,152,432
|
|
22,912,320
|
|
CRACKER BARREL OLD
COUNTRY STORE, INC.
CONDENSED
CONSOLIDATED CASH FLOW STATEMENT
(Unaudited and in
thousands)
|
|
Nine Months
Ended
|
|
4/28/23
|
|
4/29/22
|
Cash flows from
operating activities:
|
|
|
|
Net income
|
$61,588
|
|
$98,516
|
Depreciation and amortization
|
76,805
|
|
77,288
|
Amortization of debt issuance costs
|
1,296
|
|
1,326
|
Loss on disposition of property and equipment
|
4,793
|
|
4,140
|
Impairment
|
11,692
|
|
0
|
Share-based compensation
|
7,585
|
|
6,418
|
Noncash lease expense
|
44,727
|
|
43,646
|
Amortization of asset recognized from gain on sale and leaseback
transaction
|
9,551
|
|
9,551
|
(Increase) decrease in inventories
|
28,436
|
|
(54,040)
|
Decrease in accounts payable
|
(37,839)
|
|
(9,740)
|
Net changes in other assets and liabilities
|
(57,398)
|
|
(70,749)
|
Net cash provided by operating activities
|
151,236
|
|
106,356
|
Cash flows from
investing activities:
|
|
|
|
Purchase of property and equipment, net of insurance
recoveries
|
(86,898)
|
|
(58,807)
|
Proceeds from sale of property and equipment
|
250
|
|
44
|
Acquisition of business, net of cash acquired
|
0
|
|
(1,500)
|
Net cash used in investing activities
|
(86,648)
|
|
(60,263)
|
Cash flows from
financing activities:
|
|
|
|
Net (payments) proceeds under long-term debt
|
19,951
|
|
(5,049)
|
Taxes withheld from issuance of share-based compensation
awards
|
(2,400)
|
|
(2,546)
|
Purchases and retirement of common stock
|
(17,449)
|
|
(73,417)
|
Dividends on common stock
|
(87,343)
|
|
(84,901)
|
Net cash used in financing activities
|
(87,241)
|
|
(165,913)
|
|
|
|
|
Net decrease in cash
and cash equivalents
|
(22,653)
|
|
(119,820)
|
Cash and cash
equivalents, beginning of period
|
45,105
|
|
144,593
|
Cash and cash
equivalents, end of period
|
$22,452
|
|
$24,773
|
|
CRACKER BARREL OLD
COUNTRY STORE, INC.
Supplemental
Information
(Unaudited)
|
|
|
|
Third Quarter
Ended
|
|
|
|
|
4/28/23
|
|
4/29/22
|
|
|
|
Net Change in
Company-Owned Units During Quarter:
|
|
|
|
|
|
|
Cracker Barrel
|
(4)
|
|
0
|
|
|
|
Maple Street Biscuit
Company
|
0
|
|
3
|
|
|
|
Company-Owned Units in
Operation at End of Quarter:
|
|
|
|
|
|
|
Cracker Barrel
|
661
|
|
664
|
|
|
|
Maple Street Biscuit
Company
|
56
|
|
41
|
|
|
|
|
|
|
Third Quarter
Ended
|
|
Nine Months
Ended
|
|
4/28/23
|
|
4/29/22
|
|
4/28/23
|
|
4/29/22
|
Total revenue*: (In
thousands)
|
|
|
|
|
|
|
|
Restaurant
|
$665,468
|
|
$620,052
|
|
$2,015,420
|
|
$1,868,872
|
Retail
|
151,278
|
|
157,858
|
|
544,158
|
|
533,282
|
Total
revenue
|
$816,746
|
|
$777,910
|
|
$2,559,578
|
|
$2,402,154
|
|
|
|
|
|
|
|
|
Cost of goods sold*
(exclusive of depreciation and rent): (In thousands)
|
|
|
|
|
|
|
|
Restaurant
|
$182,421
|
|
$172,745
|
|
$577,341
|
|
$507,472
|
Retail
|
76,013
|
|
74,029
|
|
281,337
|
|
260,284
|
Total cost of goods
sold
|
$258,434
|
|
$246,774
|
|
$858,678
|
|
$767,756
|
|
|
|
|
|
|
|
|
Average unit
volume*: (In thousands)
|
|
|
|
|
|
|
|
Restaurant
|
1,003.0
|
|
933.8
|
|
3,035.3
|
|
2,814.6
|
Retail
|
228.0
|
|
237.8
|
|
819.5
|
|
803.1
|
Total
|
1,231.0
|
|
1,171.6
|
|
3,854.8
|
|
3,617.7
|
Operating
weeks*:
|
8,625
|
|
8,632
|
|
25,896
|
|
25,896
|
Note*: This information
is for Cracker Barrel stores only and excludes Maple Street Biscuit
Company.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CRACKER BARREL OLD COUNTRY STORE,
INC.
Reconciliation of GAAP-Basis Operating Results to
Non-GAAP Operating Results
(Unaudited and in thousands,
except per share amounts)
Adjusted Operating Income and Earnings Per Share
In
the accompanying press release, the Company makes reference to its
third quarter fiscal 2022 and fiscal 2023 adjusted operating income
and earnings per share. In regard to fiscal 2022, this
reconciliation excludes non-cash amortization of the asset
recognized from the gains on the sale and leaseback transactions
and the related tax impact. In regard to fiscal 2023, this
reconciliation excludes non-cash amortization of the asset
recognized from the gains on the sale and leaseback transactions,
impairment charges and store closing costs, and the related tax
impact and expenses related to proxy contest and settlement
expenses in connection with the Company's 2022 annual meeting of
shareholders. The Company believes excluding these items from its
financial results provides investors with an enhanced understanding
of the Company's financial results and enhances comparability
across periods. This information is not intended to be considered
in isolation or as a substitute for operating income or earnings
per share information prepared in accordance with GAAP.
|
|
Third Quarter Ended
April 28, 2023
|
|
Nine Months Ended
April 28, 2023
|
|
|
|
As
Reported
|
Adjustment
|
As
Adjusted
|
|
As
Reported
|
Adjustments
|
As
Adjusted
|
|
|
|
|
|
(1)
|
|
|
|
(1) (2)
|
|
|
|
Total
revenue
|
|
$832,689
|
$0
|
$832,689
|
|
$2,606,076
|
$0
|
$2,606,076
|
|
|
Store operating
expense
|
|
756,960
|
(3,184)
|
753,776
|
|
2,376,291
|
(9,551)
|
2,366,740
|
|
|
General and
administrative expense
|
|
45,049
|
0
|
45,049
|
|
136,515
|
(3,198)
|
133,317
|
|
|
Impairment and store
closing costs
|
|
13,890
|
(13,890)
|
0
|
|
13,890
|
(13,890)
|
0
|
|
|
Operating
income
|
|
16,790
|
17,074
|
33,864
|
|
79,380
|
26,639
|
106,019
|
|
|
Interest
expense
|
|
4,536
|
0
|
4,536
|
|
12,476
|
0
|
12,476
|
|
|
Income before income
taxes
|
|
12,254
|
17,074
|
29,328
|
|
66,904
|
26,639
|
93,543
|
|
|
Provision for income
taxes
|
|
(1,714)
|
4,013
|
2,299
|
|
5,316
|
6,260
|
11,576
|
|
|
Net income
|
|
$13,968
|
$13,061
|
$27,029
|
|
$61,588
|
$20,379
|
$81,967
|
|
|
Earnings per share –
basic
|
|
$0.63
|
$0.59
|
$1.22
|
|
$2.78
|
$0.92
|
$3.70
|
|
|
Earnings per share –
diluted
|
|
$0.63
|
$0.58
|
$1.21
|
|
$2.77
|
$0.91
|
$3.68
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Adjusted for the
non-cash amortization of the asset recognized from the gain on sale
and leaseback transactions, impairment charges and store closing
costs, and related tax impacts
|
(2) Adjusted for
expenses related to proxy contest and settlement expenses and
related tax
impacts
|
|
|
Third Quarter Ended
April 29, 2022
|
|
Nine Months Ended April 29, 2022
|
|
|
As
Reported
|
Adjustment
|
As
Adjusted
|
|
As
Reported
|
Adjustments
|
As
Adjusted
|
|
|
|
(1)
|
|
|
|
(1)
|
|
Total
revenue
|
|
$790,196
|
$0
|
$790,196
|
|
$2,437,386
|
$0
|
$2,437,386
|
Store operating
expense
|
|
719,582
|
(3,184)
|
716,398
|
|
2,192,822
|
(9,551)
|
2,183,271
|
General and
administrative expense
|
|
40,160
|
0
|
40,160
|
|
124,533
|
0
|
124,533
|
Impairment and store
closing costs
|
|
0
|
0
|
0
|
|
0
|
0
|
0
|
Operating
income
|
|
30,454
|
3,184
|
33,638
|
|
120,031
|
9,551
|
129,582
|
Interest
expense
|
|
2,171
|
0
|
2,171
|
|
7,000
|
0
|
7,000
|
Income before income
taxes
|
|
28,283
|
3,184
|
31,467
|
|
113,031
|
9,551
|
122,582
|
Provision for income
taxes
|
|
767
|
748
|
1,515
|
|
14,515
|
2,244
|
16,759
|
Net income
|
|
$27,516
|
$2,436
|
$29,952
|
|
$98,516
|
$7,307
|
$105,823
|
Earnings per share –
basic
|
|
$1.19
|
$0.11
|
$1.30
|
|
$4.22
|
$0.32
|
$4.54
|
Earnings per share –
diluted
|
|
$1.19
|
$0.10
|
$1.29
|
|
$4.21
|
$0.31
|
$4.52
|
|
(1) Adjusted for the
non-cash amortization of the asset recognized from the gain on sale
and leaseback transactions and related tax impacts
|
CRACKER BARREL OLD COUNTRY STORE,
INC.
Reconciliation of GAAP-Basis Operating Results to
Non-GAAP Operating Results (Unaudited and in Thousands)
EBITDA
In the accompanying press release, the Company
makes reference to its third quarter fiscal 2022 and fiscal 2023
EBITDA. The Company defines EBITDA as net income excluding
depreciation and amortization, non-cash amortization of the asset
recognized from the gains on sale and leaseback transactions,
interest expense and tax expense. The Company further adjusts
EBITDA to exclude impairment charges and store closing costs and
expenses related to proxy contest and settlement expenses in
connection with the Company's 2022 annual meeting of shareholders,
and the related tax impacts. The Company believes that
presentation of EBITDA and Adjusted EBITDA provides investors with
an enhanced understanding of the Company's operating performance
and debt leverage metrics and enhances comparability with the
Company's historical results, and that the presentation of this
non-GAAP financial measure, when combined with the primary
presentation of net income, is beneficial to an investor's complete
understanding of its operating performance. This information is not
intended to be considered in isolation or as a substitute for net
income prepared in accordance with GAAP.
|
|
|
|
|
|
|
|
|
|
|
Third Quarter
Ended
April 28, 2023
|
|
Nine Months
Ended
April 28, 2023
|
Net
Income
|
|
|
|
$13,968
|
|
$61,588
|
(+) Depreciation
& amortization
|
|
|
|
26,444
|
|
76,805
|
(+) Amortization
of asset recognized from gain on sale and leaseback
transactions
|
|
3,184
|
|
9,551
|
(+) Interest
expense
|
|
|
|
4,536
|
|
12,476
|
(+) Tax expense
(income tax benefit)
|
|
|
|
(1,714)
|
|
5,316
|
EBITDA
|
|
|
|
$46,418
|
|
$165,736
|
Adjustments
|
|
|
|
|
|
|
(+) Proxy
contest-related expenses
|
|
|
|
0
|
|
3,198
|
(+) Impairment
and store closing costs
|
|
13,890
|
|
13,890
|
Adjusted
EBITDA
|
|
|
|
$60,308
|
|
$182,824
|
|
|
|
|
|
|
|
|
|
|
|
Third Quarter
Ended
April 29, 2022
|
|
Nine Months
Ended
April 29, 2022
|
Net
Income
|
|
|
|
$27,516
|
|
$98,516
|
(+) Depreciation
& Amortization
|
|
|
|
25,926
|
|
77,288
|
(+) Amortization
of asset recognized from gain on sale and leaseback
transactions
|
|
3,184
|
|
9,551
|
(+) Interest
Expense
|
|
|
|
2,171
|
|
7,000
|
(+) Tax
Expense
|
|
|
|
767
|
|
14,515
|
EBITDA
|
|
|
|
$59,564
|
|
$206,870
|
Reconciliation of GAAP-basis Operating Income Margin Outlook
to Non-GAAP Operating Income Margin Outlook
In the
accompanying press release, the Company provides its current
outlook for adjusted operating income margin, a non-GAAP financial
measure, for the fourth quarter fiscal 2023. The Company's
adjusted operating income margin outlook excludes the expected
non-cash amortization of the asset recognized from the gains on the
sale and leaseback transactions. The Company believes
presenting its current outlook for adjusted operating income margin
that excludes these items provides investors with an enhanced
understanding of the Company's expected margin performance and
enhances comparability with the Company's historical results. This
information is not intended to be considered in isolation or as a
substitute for operating income margin outlook reported in
accordance with GAAP.
Reconciliation of
Fourth Quarter Fiscal 2023 Reported to Adjusted Operating Income
Margin Outlook
|
% of Total
Revenue
|
Reported operating
income margin outlook
|
4.1 %
|
5.1 %
|
$3.2 non-cash
amortization of the asset recognized from the gain on sale and
leaseback transactions
|
0.4 %
|
0.4 %
|
Adjusted Operating
Income Margin Outlook
|
4.5 %
|
5.5 %
|
|
|
|
|
Investor Contact:
|
Adam
Hanan
|
|
(615) 443-9887
|
|
|
Media Contact:
|
Heidi Pearce
|
|
(615)
235-4135
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/cracker-barrel-reports-third-quarter-fiscal-2023-results-301842974.html
SOURCE Cracker Barrel Old Country Store, Inc.