LRI Holdings, Inc., the Parent Company of Logan's Roadhouse, Inc., Announces Financial Results for the Third Quarter and Year-to-Date Periods of Fiscal Year 2014 - WICU12 HD WSEE Erie, PA News, Sports, Weather and Events

LRI Holdings, Inc., the Parent Company of Logan's Roadhouse, Inc., Announces Financial Results for the Third Quarter and Year-to-Date Periods of Fiscal Year 2014

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SOURCE LRI Holdings, Inc.

NASHVILLE, Tenn., June 10, 2014 /PRNewswire/ -- LRI Holdings, Inc., the parent company of Logan's Roadhouse, Inc., today announced financial results for the third quarter and year-to-date periods of fiscal year 2014 ended April 27, 2014.



Thirteen weeks ended


Thirty-nine weeks ended

(In thousands)


April 27, 2014


April 28, 2013


April 27, 2014


April 28, 2013

Net sales


$

169,126



$

174,924



$

469,210



$

485,749


Net loss


(1,728)



515



(22,789)



(4,031)


Adjusted EBITDA


17,239



21,381



33,736



48,105


 

Selected Highlights for the Third Quarter 2014 Compared to the Third Quarter 2013:

  • Net sales decreased 3.3% to $169.1 million from $174.9 million.
  • Comparable restaurant sales decreased 3.2%, average check increased by 3.9%, and customer traffic decreased by 6.8%.
  • Net loss of $1.7 million compared to net income of $0.5 million.
  • Adjusted EBITDA decreased 19.4% to $17.2 million from $21.4 million. (*)

Selected Highlights for Year-to-Date 2014 Compared to Year-to-Date 2013:

  • Net sales decreased 3.4% to $469.2 million from $485.7 million.
  • Comparable restaurant sales decreased 4.5%, average check increased by 2.8%, and customer traffic decreased by 7.1%.
  • Net loss of $22.8 million compared to net loss of $4.0 million.
  • Adjusted EBITDA decreased 29.9% to $33.7 million from $48.1 million. (*)

(*) Please see reconciliation table at the end of this release.

Additional discussion and analysis of the Company's financial condition and results of operations can be found in its Quarterly Report on Form 10-Q for the fiscal period ended April 27, 2014. It is available at www.logansroadhouse.com under the investor relations section.

Conference Call

The Company will host a conference call on Thursday, June 12, 2014 at 10:30 a.m. ET to discuss its financial results for the third quarter and year-to-date periods of fiscal year 2014. The conference call will be hosted by Mike Andres, President, Chief Executive Officer, and Chairman, and Amy Bertauski, Chief Financial Officer.

The domestic dial-in number for the call is 877-407-0784, and the international dial-in number is 201-689-8560. Please call approximately 10 minutes in advance to ensure that you are connected prior to the presentation. A telephone replay will be available beginning at 1:30 p.m. ET on Thursday, June 12, 2014 through 11:59 p.m. ET on Thursday, June 19, 2014 and may be accessed by using the domestic replay number 877-870-5176 or the international replay number 858-384-5517; the passcode is 13581999. The archived webcast may be accessed at http://public.viavid.com/index.php?id=109105 and will be available for one year.

About Logan's Roadhouse

Logan's opened its first restaurant in 1991 in Lexington, KY, and has grown as an affordable, full-service casual dining steakhouse offering specially seasoned aged steaks and sizzling southern-inspired dishes in a roadhouse atmosphere. Headquartered in Nashville, Tennessee, Logan's Roadhouse presently runs 234 company-operated and 26 franchised Logan's Roadhouse restaurants in 23 states. LRI Holdings, Inc. is the parent company of Logan's Roadhouse.

Contact 
Investor Relations
InvestorRelations@logansroadhouse.com
(855) 255-2789

 

LRI HOLDINGS, INC CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS



Thirteen weeks ended


Thirty-nine weeks ended

(In thousands)

April 27, 2014


April 28, 2013


April 27, 2014


April 28, 2013


(unaudited)


(unaudited)


(unaudited)


(unaudited)

Revenues:








Net sales

$

169,126



$

174,924



$

469,210



$

485,749


Franchise fees and royalties

582



577



1,617



1,615


Total revenues

169,708



175,501



470,827



487,364


Costs and expenses:








Restaurant operating costs:








Cost of goods sold

57,716



59,656



159,511



163,538


Labor and other related expenses

49,887



50,246



143,631



143,497


Occupancy costs

13,675



13,095



41,503



39,459


Other restaurant operating expenses

25,389



26,388



76,661



77,880


Depreciation and amortization

5,039



5,265



15,171



15,679


Pre-opening expenses

255



849



281



2,523


General and administrative

8,685



9,053



23,408



23,096


Restaurant impairment and closing charges

238



2,442



2,043



3,143


Total costs and expenses

160,884



166,994



462,209



468,815


Operating income

8,824



8,507



8,618



18,549


Interest expense, net

10,552



10,371



31,407



30,632


Loss before income taxes

(1,728)



(1,864)



(22,789)



(12,083)


Income tax benefit

-



(2,379)



-



(8,052)


Net (loss) income

$

(1,728)



$

515



$

(22,789)



$

(4,031)


 

LRI HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS


(In thousands, except share data)

April 27, 2014


July 28, 2013


ASSETS

(unaudited)



Current assets:




Cash and cash equivalents

$

3,493



$

23,708


Receivables

9,609



9,583


Inventories

14,203



12,887


Prepaid expenses and other current assets

5,742



4,337


Income taxes receivable

729



432


Total current assets

33,776



50,947


Property and equipment, net

216,978



223,724


Other assets

14,022



16,085


Goodwill

192,590



192,590


Tradename

71,694



71,694


Other intangible assets, net

17,710



19,272


Total assets

$

546,770



$

574,312


LIABILITIES AND STOCKHOLDER'S EQUITY




Current liabilities:




Accounts payable

$

18,546



$

18,770


Payable to RHI

2,362



1,118


Other current liabilities and accrued expenses

43,791



52,383


Total current liabilities

64,699



72,271


Long-term debt

355,500



355,000


Deferred income taxes

27,745



27,745


Other long-term obligations

45,968



43,649


Total liabilities

493,912



498,665


Stockholder's equity:




Common stock ($0.01 par value; 100 shares authorized; 1 share issued and outstanding)

-



-


Additional paid-in capital

230,000



230,000


Retained deficit

(177,142)



(154,353)


Total stockholder's equity

52,858



75,647


Total liabilities and stockholder's equity

$

546,770



$

574,312


 

LRI HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS










Thirty-nine weeks ended

(In thousands)

April 27, 2014


April 28, 2013

Cash flows from operating activities:

(unaudited)


(unaudited)

Net loss

$

(22,789)



$

(4,031)


Adjustments to reconcile net loss to net cash used in operating activities:




Depreciation and amortization

15,171



15,679


Other amortization

1,574



1,375


Loss on sale/disposal of property and equipment

1,533



1,410


Amortization of deferred gain on sale and leaseback transactions

(37)



(30)


Impairment charges for long-lived assets

2,043



3,143


Share-based compensation expense

1,354



714


Deferred income taxes

-



(266)


Changes in operating assets and liabilities:




Receivables

(26)



(1,520)


Inventories

(1,509)



(553)


Prepaid expenses and other current assets

(1,405)



(661)


Other non-current assets and intangibles

3



41


Accounts payable

(360)



(2,357)


Payable to RHI

(110)



(23)


Income taxes payable/receivable

(297)



(4,301)


Other current liabilities and accrued expenses

(8,592)



(15,236)


Other long-term obligations

3,255



3,514


Net cash used in operating activities

(10,192)



(3,102)


Cash flows from investing activities:




Purchase of property and equipment

(10,523)



(22,574)


Proceeds from sale and leaseback transactions, net of expenses

-



10,097


Net cash used in investing activities

(10,523)



(12,477)


Cash flows from financing activities:




Payments on revolving credit facility

(24,500)



(12,600)


Borrowings on revolving credit facility

25,000



12,600


Net cash provided by financing activities

500



-


Decrease in cash and cash equivalents

(20,215)



(15,579)


Cash and cash equivalents, beginning of period

23,708



21,732


Cash and cash equivalents, end of period

$

3,493



$

6,153


 

Forward-Looking Statements

This press release contains statements about future events and expectations that constitute forward-looking statements. These forward-looking statements can generally be identified by the use of forward-looking terminology such as "may," "plan," "seek," "will," "expect," "intend," "estimate," "anticipate," "believe" or the negative thereof or similar terminology. These statements are based on management's beliefs, assumptions and expectations of our future financial and operating performance and growth plans, taking into account the information currently available. These statements are not statements of historical fact. Forward-looking statements involve risks and uncertainties that may cause the Company's actual results to differ materially from the expectations of future results we express or imply in any forward-looking statements and you should not place undue reliance on such statements. Please refer to our Annual Report on Form 10-K for the fiscal year ended July 28, 2013, and other reports that we have filed with the Securities and Exchange Commission, for a discussion of risk factors that may contribute to these differences. Any forward-looking information presented herein is made only as of the date of this supplemental report, and the Company does not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events or otherwise.

Non-GAAP Financial Measures

This press release also contains non-GAAP financial measures such as EBITDA, Adjusted EBITDA, and Adjusted EBITDAR. The Company believes that these measures, together with reconciliations to the most comparable GAAP measure, are helpful to both management and investors in understanding and analyzing financial performance. However, the Company's non-GAAP financial measures may not be comparable to similarly titled non-GAAP financial measures used by other companies. These non-GAAP measures have limitations as an analytical tool and should not be considered in isolation or as a substitute for GAAP financial measures.

To the extent we discuss any non-GAAP financial measures on the earnings call, a reconciliation of each measure to the most directly comparable GAAP measure is available in this press release. In addition, the Current Report on Form 8-K furnished to the SEC concurrent with the issuance of this press release includes a more detailed description of each of these non-GAAP financial measures, together with a discussion of the usefulness and purpose of such measures.

EBITDA, Adjusted EBITDA and Adjusted EBITDAR

The following table sets forth a reconciliation of net (loss) income, the most directly comparable GAAP financial measure to EBITDA, Adjusted EBITDA and Adjusted EBITDAR.


Thirteen weeks ended


Thirty-nine weeks ended

(In thousands)

April 27, 2014


April 28, 2013


April 27, 2014


April 28, 2013

Net (loss) income

$

(1,728)



$

515



$

(22,789)



$

(4,031)


Interest expense, net

10,552



10,371



31,407



30,632


Income tax benefit

-



(2,379)



-



(8,052)


Depreciation and amortization

5,039



5,265



15,171



15,679


EBITDA

13,863



13,772



23,789



34,228


Adjustments








Sponsor management fees(a)

250



250



750



750


Non-cash asset write-offs:








Restaurant impairment(b)

238



2,442



2,043



3,143


Loss on disposal of property and equipment(c)

469



1,235



1,533



1,766


Restructuring costs(d)

302



1,659



(147)



1,826


Pre-opening expenses (excluding rent)(e)

246



797



253



2,189


Losses on sales of property(f)

7



67



11



80


Non-cash rent adjustment(g)

667



834



2,968



3,215


Costs related to the Transactions(h)

-



-



-



20


Non-cash stock-based compensation(i)

498



241



1,354



714


Other adjustments(j)

699



84



1,182



174


Adjusted EBITDA

17,239



21,381



33,736



48,105


Cash rent expense(k)

10,487



10,073



31,264



29,694


Adjusted EBITDAR

$

27,726



$

31,454



$

65,000



$

77,799


 

(a)      

Sponsor management fees consist of fees payable to certain affiliates of Kelso & Company, L.P. (the "Kelso Affiliates") under an advisory agreement.

(b)

Restaurant impairment charges were recorded in connection with the determination that the carrying value of certain of our restaurants exceeded their estimated fair value.

(c)

Loss on disposal of property and equipment consists of the loss on disposal or retirement of assets that are not fully depreciated.

(d)

Restructuring costs include severance, hiring replacement costs and other related charges, including the reversal of any such charges.

(e)

Pre-opening expenses (excluding rent) include expenses directly associated with the opening of a new restaurant. 

(f)

We recognize losses in connection with the sale and leaseback of restaurants when the fair value of the property being sold is less than the undepreciated cost of the property.

(g)

Non-cash rent adjustments represent the non-cash rent expense calculated as the difference between GAAP rent expense and amounts payable in cash under the leases during such time period. In measuring our operational performance, we focus on our cash rent payments. 

(h)

Costs related to the Transactions include legal, professional and other fees incurred in connection with our acquisition by the Kelso Affiliates and Management Investors (the "Transactions"). 

(i)

Non-cash stock-based compensation represents compensation expense recognized for time-based stock options issued by Roadhouse Holding Inc.

(j)

Other adjustments include non-recurring expenses and professional fees, legal and settlement fees related to contract termination and ongoing expenses of closed restaurants.

(k)

Cash rent expense represents actual cash payments required under our leases.

 

©2012 PR Newswire. All Rights Reserved.

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