Cracker Barrel Old Country Store, Inc.
CRACKER BARREL OLD COUNTRY STORE, INC (Form: 8-K, Received: 02/21/2012 07:24:02)

 

 

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): February 21, 2012

 

 

CRACKER BARREL OLD COUNTRY STORE, INC.

(Exact Name of Registrant as Specified in its Charter)

 

 

 

Tennessee   001-25225   62-0812904

(State or Other Jurisdiction

of Incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

 

305 Hartmann Drive, Lebanon, Tennessee   37087
(Address of Principal Executive Offices)   (Zip code)

(615) 444-5533

(Registrant’s Telephone Number, Including Area Code)

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

 

 

Check the appropriate box below 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 February 21, 2012, Cracker Barrel Old Country Store, Inc. (the “Company”) issued a press release (the “Press Release”) announcing the Company’s fiscal 2012 second quarter results of operations and updated earnings guidance for fiscal 2012. A copy of the Press Release is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.

Item 7.01. Regulation FD Disclosure.

The information set forth in Item 2.02 above is incorporated by reference as if fully set forth herein.

 

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

 

  99.1 Press Release issued by Cracker Barrel Old Country Store, Inc. dated February 21, 2012


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

 

Date: February 21, 2012     CRACKER BARREL OLD COUNTRY STORE, INC.
    By:   /s/ Lawrence E. Hyatt
    Name:   Lawrence E. Hyatt
    Title:   Senior Vice President and Chief Financial Officer


EXHIBIT INDEX

 

Exhibit No.    Description
99.1    Press Release issued by Cracker Barrel Old Country Store, Inc. dated February 21, 2012

Exhibit 99.1

 

LOGO

 

Investor Contact:   

Lawrence E. Hyatt

(615) 235-4432

Media Contact:   

Julie K. Davis

(615) 443-9266

CRACKER BARREL REPORTS RESULTS FOR SECOND QUARTER FISCAL 2012

AND INCREASES FULL-YEAR EARNINGS GUIDANCE

Comparable Store Traffic, Restaurant and Retail Sales Positive in Quarter

LEBANON, Tenn. February 21, 2012 – Cracker Barrel Old Country Store, Inc. (“Cracker Barrel” or the “Company”) (Nasdaq: CBRL) today reported financial results for the second quarter of fiscal 2012 ended January 27, 2012, and increased its full-year earnings guidance.

Second-Quarter Fiscal 2012 Highlights

 

   

Adjusted earnings per diluted share, which excludes proxy contest expenses, of $1.20 were equal to the prior year quarter (see non-GAAP reconciliation below). On a GAAP basis, earnings per diluted share were $1.10.

 

   

Comparable store restaurant and retail sales increased by 3.5% and 3.4%, respectively. Total revenue was $673.2 million, an increase of 5.1% compared to the prior year quarter.

 

   

Adjusted operating income margin was 7.5% of total revenue compared with 8.2% in the prior year quarter. On a GAAP basis, operating income margin was 7.0% of total revenue.

Second Quarter Fiscal 2012 Results

Revenue

The Company reported total revenue of $673.2 million for the second quarter of fiscal 2012 representing an increase of 5.1% over the second quarter of fiscal 2011. Comparable store restaurant sales increased 3.5%, including a 2.4% increase in average check. The average menu price increase for the quarter was approximately 2.2%. Comparable store retail sales were up 3.4% for the quarter. During the quarter, the Company opened two new Cracker Barrel stores, and has opened three additional stores since the end of the quarter, for a total of eight new store openings year-to-date.

 

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Cracker Barrel Reports Results for Second Quarter of 2012

Page 2

February 21, 2012

 

Comparable store restaurant and retail sales for the fiscal months of November, December and January were as follows:

 

     November     December     January     Second
Quarter
 

Comparable restaurant traffic

     -1.0     1.8     2.7     1.1

Average check

     2.2     2.5     2.3     2.4

Comparable restaurant sales

     1.2     4.3     5.0     3.5

Comparable retail sales

     2.7     0.6     10.3     3.4

Pro-forma comparable restaurant traffic, shown in the table below, reflects the estimated impact of the shift of Christmas Eve from fiscal December in the prior year to fiscal January this year, and the impact of inclement weather in the prior year quarter.

 

     November     December     January     Second
Quarter
 

Pro-forma comparable traffic

     -1.0     -1.7     3.2     0.2

Holiday timing

     0.0     2.1     -1.9     0.0

Prior year weather

     0.0     1.4     1.4     0.9

Actual comparable traffic

     -1.0     1.8     2.7     1.1

Operating Income

In the second quarter of fiscal 2012, adjusted operating income was $50.6 million, or 7.5% of total revenue, compared with operating income of $52.5 million, or 8.2% of total revenue, in the second quarter of fiscal 2011. On a GAAP basis, which includes proxy contest expenses, operating income was $47.3 million, or 7.0% of total revenue. The decrease in adjusted operating income was primarily the result of higher food commodity costs and the timing of advertising expenses, partially offset by lower hourly wages, maintenance and utilities expenses. Adjusted general and administrative expenses were 4.9% of total revenue in the second quarter of fiscal 2012 compared with 5.2% in the prior year quarter. On a GAAP basis, general and administrative expenses were 5.4% of total revenue in the second quarter of fiscal 2012.

“Driven by our strong sales and traffic performance, particularly in January, our financial results for the second quarter exceeded our expectations,” said Sandra B. Cochran, President and Chief Executive Officer of Cracker Barrel Old Country Store, Inc. “Comparable store traffic and sales outperformed the Knapp-Track™ Index for the quarter, and we are pleased to report positive traffic for the first time in the past five quarters. We continued to control our expenses, and we are seeing the expected benefits from our cost reduction initiatives. Our diluted earnings per share, adjusted for proxy contest expenses, were in line with the prior year quarter, despite the change in our marketing strategy and resulting change in the timing of our advertising spend, and the expected timing of increases in commodity costs.”

 

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Cracker Barrel Reports Results for Second Quarter of 2012

Page 3

February 21, 2012

 

Year-to-date Fiscal 2012 Results

Year-to-date through the end of the second quarter, total revenue was $1.3 billion, an increase of 2.6% compared to the prior year period. Comparable store restaurant sales increased 1.0%, including a 2.3% higher check, and comparable store retail sales increased 1.4%.

Year-to-date, the Company reported adjusted net income of $53.1 million or $2.29 per diluted share, compared with net income of $52.5 million, or $2.21 per diluted share in the prior year period. On a GAAP basis, year-to-date net income was $49.4 million or $2.13 per diluted share. Year-to-date net cash flow provided by operating activities was $114.0 million, compared with $57.3 million in the prior year period, due to timing differences in accounts payable payments, estimated income taxes and changes in other assets and liabilities. The Company did not repurchase any shares during the second quarter of fiscal 2012.

A reconciliation of the Company’s financial results determined in accordance with GAAP to certain non-GAAP financial measures used in this release has been provided in the financial statement tables included in this release to supplement its unaudited financial statements presented on a GAAP basis.

Fiscal 2012 Outlook Update

The Company commented that its outlook for fiscal 2012 reflects many assumptions, the accuracy of which is not yet known. Based upon year-to-date financial performance, recent trends and current estimates, the Company has raised its full-year earnings guidance for fiscal 2012. The Company expects total revenue for fiscal 2012 of between $2.55 billion and $2.6 billion, reflecting anticipated increases in comparable store restaurant and retail sales in a range of 1.0% and 2.0%. Due to delayed construction starts on two stores previously scheduled to open late this year, the Company expects to open 13 new Cracker Barrel stores in the current fiscal year rather than the 15 originally planned. The Company now expects to report adjusted earnings per diluted share for the fiscal year of between $4.20 and $4.35, excluding proxy contest expenses of $0.16 per diluted share. On a GAAP basis, the Company expects to report earnings per diluted share for the fiscal year between $4.04 and $4.19. Food commodity costs are expected to increase 5.5% to 6.5% from the prior year, and adjusted operating income margins are expected to range between 7.2% and 7.4% of total revenues.

The Company expects depreciation expense of between $64 million and $66 million; net interest expense of approximately $45 million; an effective tax rate of between 29% and 30%; and capital expenditures of between $85 million and $95 million. The Company reminds investors that its 2012 fiscal year is a 53-week year and that the impact of the 53 rd week, which is included in its guidance, is expected to be additional revenue of approximately $50 million and approximately $0.25 of additional earnings per diluted share.

 

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Cracker Barrel Reports Results for Second Quarter of 2012

Page 4

February 21, 2012

 

In order to provide additional visibility into its expectations for future performance, the Company provided quarterly earnings guidance for the current quarter. For the third quarter of fiscal 2012, the Company expects to report earnings per diluted share of between $0.70 and $0.75.

Commenting on the outlook, Ms. Cochran said, “While we continue to remain cautious about the outlook for consumer spending, gasoline prices and commodity costs, we are encouraged by our improving sales trends. We believe that the six strategic initiatives to drive restaurant traffic, grow retail sales and control costs continue to gain traction. We expect to build on this success in the second half of the year.”

Fiscal 2012 Second-Quarter Conference Call

As previously announced, the live broadcast of today’s quarterly conference call will be available to the public on-line at investor.crackerbarrel.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 March 7, 2012.

The Company plans to announce its fiscal 2012 third-quarter earnings and comparable restaurant and retail sales on Tuesday, May 22, 2012.

About Cracker Barrel

Cracker Barrel Old Country Store ® restaurants provide a friendly home-away-from-home in its old country stores and restaurants. Guests are cared for like family while relaxing and enjoying real home-style food and shopping that’s surprisingly unique, genuinely fun and reminiscent of America’s country heritage…all at a fair price. The restaurants serve up delicious, home-style country food such as meatloaf and homemade chicken n’ dumplins as well as the Company’s signature biscuits using an old family recipe. The authentic old country retail store is fun to shop and offers unique gifts and self-indulgences.

Cracker Barrel Old Country Store, Inc. (Nasdaq: CBRL) was established in 1969 in Lebanon, Tenn. and operates 611 company-owned locations in 42 states. Every Cracker Barrel unit is open seven days a week with hours Sunday through Thursday, 6 a.m. – 10 p.m., and Friday and Saturday, 6 a.m. – 11 p.m. For more information, visit: crackerbarrel.com.

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 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-

 

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Cracker Barrel Reports Results for Second Quarter of 2012

Page 5

February 21, 2012

 

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 operational improvement initiatives, such as new menu items and retail offerings. Factors which could materially affect actual results include, but are not limited to: the effects of uncertain consumer confidence, higher costs for energy, general or regional economic weakness, weather on sales and customer travel, and discretionary income or personal expenditure activity of our customers; our ability to identify, acquire and sell successful new lines of retail merchandise and new menu items at our restaurants; our ability to successfully implement or sustain 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; our ability to successfully implement 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 in an escalating wage environment; 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 concerns over nutritional or safety aspects of our food or products or those of the restaurant industry in general, including concerns about pandemics, as well as the possible effects of such events on the price or availability of ingredients used in our restaurants; the effects of our substantial indebtedness and associated restrictions on our financial and operating flexibility and ability to execute or pursue our operating plans and objectives; changes in interest rates or capital market conditions affecting our financing costs and ability to refinance all or portions of our indebtedness; the effects of business trends on the outlook for individual restaurant locations and the effect on the carrying value of those locations; the availability and cost of suitable sites for restaurant development and our ability to identify those sites; 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 our restaurant or retail supply chain; changes in foreign exchange rates affecting our future retail inventory purchases; implementation of new or changes in interpretation of existing accounting principles generally accepted in the United States of America; 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.

 

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Cracker Barrel Reports Results for Second Quarter of 2012

Page 6

February 21, 2012

 

CRACKER BARREL OLD COUNTRY STORE, INC.

CONDENSED CONSOLIDATED INCOME STATEMENT

(Unaudited)

(In thousands, except share and per share amounts, percentages and ratios)

 

     Second Quarter Ended   Six Months Ended
     1/27/12     1/28/11     Percentage
Change
  1/27/12     1/28/11     Percentage
Change

Total revenue

   $ 673,234      $ 640,277      5%   $ 1,271,671      $ 1,238,968      3%

Cost of goods sold

     235,391        219,390      7     421,698        399,143      6
  

 

 

   

 

 

     

 

 

   

 

 

   

Gross profit

     437,843        420,887      4     849,973        839,825      1

Labor and other related expenses

     234,933        223,182      5     455,901        447,786      2

Other store operating expenses

     119,136        112,164      6     228,180        224,123      2
  

 

 

   

 

 

     

 

 

   

 

 

   

Store operating income

     83,774        85,541      (2)     165,892        167,916      (1)

General and administrative expenses

     36,437        33,068      10     73,931        69,944      6

Impairment and store dispositions, net

     —          1      (100)     —          84      (100)
  

 

 

   

 

 

     

 

 

   

 

 

   

Operating income

     47,337        52,472      (10)     91,961        97,888      (6)

Interest expense

     11,025        11,830      (7)     22,160        23,544      (6)
  

 

 

   

 

 

     

 

 

   

 

 

   

Pretax income

     36,312        40,642      (11)     69,801        74,344      (6)

Provision for income taxes

     10,703        11,865      (10)     20,390        21,833      (7)
  

 

 

   

 

 

     

 

 

   

 

 

   

Net income

   $ 25,609      $ 28,777      (11)   $ 49,411      $ 52,511      (6)
  

 

 

   

 

 

     

 

 

   

 

 

   

Earnings per share – Basic:

   $ 1.11      $ 1.24      (11)   $ 2.16      $ 2.28      (5)
  

 

 

   

 

 

     

 

 

   

 

 

   

Earnings per share – Diluted:

   $ 1.10      $ 1.20      (8)   $ 2.13      $ 2.21      (4)
  

 

 

   

 

 

     

 

 

   

 

 

   

Weighted average shares:

            

Basic

     22,968,002        23,237,493      (1)     22,919,451        23,034,943      (1)

Diluted

     23,306,177        23,919,251      (3)     23,225,963        23,756,567      (2)

Ratio Analysis

            

Total revenue:

            

Restaurant

     74.8     74.8       77.5     77.5  

Retail

     25.2        25.2          22.5        22.5     
  

 

 

   

 

 

     

 

 

   

 

 

   

Total revenue

     100.0        100.0          100.0        100.0     

Cost of goods sold

     35.0        34.3          33.2        32.2     
  

 

 

   

 

 

     

 

 

   

 

 

   

Gross profit

     65.0        65.7          66.8        67.8     

Labor and other related expenses

     34.9        34.8          35.9        36.2     

Other store operating expenses

     17.7        17.5          17.9        18.1     
  

 

 

   

 

 

     

 

 

   

 

 

   

Store operating income

     12.4        13.4          13.0        13.5     

General and administrative expenses

     5.4        5.2          5.8        5.6     

Impairment and store dispositions, net

     0.0        0.0          0.0        0.0     
  

 

 

   

 

 

     

 

 

   

 

 

   

Operating income

     7.0        8.2          7.2        7.9     

Interest expense

     1.6        1.9          1.7        1.9     
  

 

 

   

 

 

     

 

 

   

 

 

   

Pretax income

     5.4        6.3          5.5        6.0     

Provision for income taxes

     1.6        1.8          1.6        1.8     
  

 

 

   

 

 

     

 

 

   

 

 

   

Net income

     3.8     4.5       3.9     4.2  
  

 

 

   

 

 

     

 

 

   

 

 

   

 

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Cracker Barrel Reports Results for Second Quarter of 2012

Page 7

February 21, 2012

 

CRACKER BARREL OLD COUNTRY STORE, INC.

CONDENSED CONSOLIDATED BALANCE SHEET

(Unaudited and in thousands, except share amounts)

 

     1/27/12      7/29/11  

Assets

     

Cash and cash equivalents

   $ 119,385       $ 52,274   

Inventory

     127,176         141,547   

Other current assets

     54,076         52,094   

Property and equipment, net

     1,015,234         1,009,164   

Other long-lived assets

     54,458         55,805   
  

 

 

    

 

 

 

Total assets

   $ 1,370,329       $ 1,310,884   
  

 

 

    

 

 

 

Liabilities and Shareholders’ Equity

     

Accounts payable

   $ 93,592       $ 99,679   

Current maturities

     9,490         123   

Other current liabilities

     192,602         167,301   

Long-term debt

     540,715         550,143   

Other long-term obligations

     213,535         225,604   

Shareholders’ equity

     320,395         268,034   
  

 

 

    

 

 

 

Total liabilities and shareholders’ equity

   $ 1,370,329       $ 1,310,884   
  

 

 

    

 

 

 

Common shares outstanding

     22,992,183         22,840,974   

 

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Cracker Barrel Reports Results for Second Quarter of 2012

Page 8

February 21, 2012

 

CRACKER BARREL OLD COUNTRY STORE, INC.

CONDENSED CONSOLIDATED CASH FLOW STATEMENT

(Unaudited and in thousands)

 

     Six Months Ended  
     1/27/12     1/28/11  

Cash flows from operating activities:

    

Net income

   $ 49,411      $ 52,511   

Depreciation and amortization

     31,339        30,454   

Loss on disposition of property and equipment

     1,258        1,693   

Share-based compensation, net of excess tax benefit

     5,791        2,625   

Decrease in inventories

     14,371        13,555   

(Decrease) in accounts payable

     (6,087     (27,794

Net changes in other assets and liabilities

     17,876        (15,739
  

 

 

   

 

 

 

Net cash provided by operating activities

     113,959        57,305   
  

 

 

   

 

 

 

Cash flows from investing activities:

    

Purchase of property and equipment, net of insurance recoveries

     (38,719     (40,475

Proceeds from sale of property and equipment

     477        265   
  

 

 

   

 

 

 

Net cash used in investing activities

     (38,242     (40,210
  

 

 

   

 

 

 

Cash flows from financing activities:

    

Net payments for credit facilities and other long-term obligations

     (76     (3,488

Proceeds from exercise of share-based compensation awards

     2,137        20,343   

Excess tax benefit from share-based compensation

     155        2,294   

Purchase and retirement of common stock

     —          (10,997

Dividends on common stock

     (10,822     (9,698
  

 

 

   

 

 

 

Net cash used in financing activities

     (8,606     (1,546
  

 

 

   

 

 

 

Net increase in cash and cash equivalents

     67,111        15,549   

Cash and cash equivalents, beginning of period

     52,274        47,700   
  

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ 119,385      $ 63,249   
  

 

 

   

 

 

 

 

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Cracker Barrel Reports Results for Second Quarter of 2012

Page 9

February 21, 2012

 

CRACKER BARREL OLD COUNTRY STORE, INC.

Supplemental Information

(Unaudited)

 

     Second Quarter Ended      Six Months Ended  
     1/27/12      1/28/11      1/27/12      1/28/11  

Units in operation:

           

Open at beginning of period

     606         596         603         593   

Opened during period

     2         1         5         4   
  

 

 

    

 

 

    

 

 

    

 

 

 

Open at end of period

     608         597         608         597   

Total revenue: (In thousands)

           

Restaurant

   $ 503,531       $ 478,614       $ 985,040       $ 960,429   

Retail

     169,703         161,663         286,631         278,539   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total revenue

   $ 673,234       $ 640,277       $ 1,271,671       $ 1,238,968   
  

 

 

    

 

 

    

 

 

    

 

 

 

Cost of goods sold: (In thousands)

           

Restaurant

   $ 138,456       $ 127,201       $ 266,152       $ 249,582   

Retail

     96,935         92,189         155,546         149,561   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total cost of goods sold

   $ 235,391       $ 219,390       $ 421,698       $ 399,143   

Average unit volume: (In thousands)

           

Restaurant

   $ 828.3       $ 801.7       $ 1,625.5       $ 1,612.2   

Retail

     279.1         270.8         473.0         467.5   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 1,107.4       $ 1,072.5       $ 2,098.5       $ 2,079.7   
  

 

 

    

 

 

    

 

 

    

 

 

 

Operating weeks:

     7,903         7,761         15,756         15,489   

 

     Q2 2012 vs. Q2 2011     6 mo. 2012 vs. 6 mo. 2011  

Comparable store sales period to period increase:

    

Restaurant

     3.5     1.0

Retail

     3.4     1.4

Number of locations in comparable store base

     592        591   

 

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Cracker Barrel Reports Results for Second Quarter of 2012

Page 10

February 21, 2012

 

CRACKER BARREL OLD COUNTRY STORE, INC.

Reconciliation of As Reported GAAP basis operating

results to As Adjusted non-GAAP operating results

(Unaudited and in thousands)

Non-GAAP operating income and earnings per share information adjusted to exclude charges and tax effects of the proxy contest concluded at the Company’s recent annual meeting of shareholders are as summarized in the table below. The Company believes that excluding these charges and tax effects from its financial results reflects operating results that are more indicative of the Company’s ongoing operating performance while improving comparability to prior periods, and, as such, may provide investors with an enhanced overall understanding of the Company’s past financial performance and prospects for the future. 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.

 

     Second Quarter Ended January 27, 2012      Six Months Ended January 27, 2012  
     As Reported      Adjustments  (1)     As Adjusted      As Reported      Adjustments  (1)     As Adjusted  

Store operating income

   $ 83,774         —        $ 83,774       $ 165,892         —        $ 165,892   

General and administrative expenses

     36,437         (3,249     33,188         73,931         (5,203     68,728   

Impairment and store dispositions, net

     —           —          —           —           —          —     
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Operating income

     47,337         3,249        50,586         91,961         5,203        97,164   

Interest Expense

     11,025         —          11,025         22,160         —          22,160   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Pretax income

     36,312         3,249        39,561         69,801         5,203        75,004   

Provision for income taxes

     10,703         958        11,661         20,390         1,520        21,910   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Net income

     25,609         2,291        27,900         49,411         3,683        53,094   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Earnings per share – Basic:

   $ 1.11       $ 0.10      $ 1.21       $ 2.16       $ 0.16      $ 2.32   

Earnings per share – Diluted:

   $ 1.10       $ 0.10      $ 1.20       $ 2.13       $ 0.16      $ 2.29   

 

(1) Charges and tax effects of the proxy contest concluded at the Company’s recent annual meeting of shareholders.

 

 

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