================================================================================
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 17, 2005
-----------------
CBRL GROUP, INC.
Tennessee 0-25225 62-1749513
--------- ------- ----------
(State or Other Jurisdiction (Commission File Number) (I.R.S. Employer
of Incorporation) Identification No.)
305 Hartmann Drive, Lebanon, Tennessee 37087
(615) 444-5533
Check the appropriate box if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions :
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act (17 CFR.13e-4(c))
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Item 2.02. Results of Operations and Financial Condition.
On February 17, 2005, CBRL Group, Inc. (the "Company") issued the press
release that is furnished as Exhibit 99 to this Current Report on Form 8-K,
which by this reference is incorporated herein as if copied verbatim, with
respect to second quarter results, current sales trends and earnings guidance
for the third fiscal quarter of 2005, other information and the conference call
to be held to discuss this information, as well as the matters discussed under
Item 4.02 below, which include adjustments to prior period financial results.
Item 4.02 Non-Reliance on Previously Issued Financial Statements or a Related
Audit Report or Completed Interim Review.
Following a review of its accounting policy, the Company has changed its
accounting for certain operating leases consistent with changes recently applied
by numerous other public companies. As part of this change, the Company has
restated historical results, also consistent with policies applied by others.
The Company has discussed the facts underlying the restatement and has
provided an analysis of the restatement in the press release attached as Exhibit
99 (the "Press Release") in the section entitled "Restatement Related to Changes
for Lease Accounting" (the "Restatement Section"), and by this reference the
Restatement Section is incorporated herein as if copied verbatim and shall be
the only portion of the Press Release deemed filed. The restatement has no net
impact on cash flows, and the income statement and balance sheet effects are
summarized in a table in the Press Release.
On February 15, 2005, the Audit Committee of the Company's Board of
Directors concluded that certain of the Company's previously filed financial
statements should be restated for fiscal years 2000 through 2004 and for the
first quarter of fiscal year 2005. On that same day, the Company communicated
its conclusions to Deloitte & Touche LLP, the Company's independent registered
public accounting firm, who concurred with the Company's conclusion to restate
and advised the Company that their associated reports on such financial
statements should no longer be relied upon. The Company will file an amended
Form 10-K/A for fiscal 2004 (which will also include the restated financial
information for fiscal years 2000 through 2003) and an amended Form 10-Q/A for
its first fiscal quarter of 2005 as soon as practical. Additionally, the Company
will restate its second and third quarter of fiscal 2004 prospectively. The
current filings should not be relied upon.
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.
(a) Financial Statements. None
(b) Pro Forma Financial Information. None
(c) Exhibits.
99 Press Release issued by CBRL Group, Inc. dated February 17, 2005.
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.
Dated: February 17, 2005 CBRL GROUP, INC.
By: /s/ James F. Blackstock
----------------------------------
Name: James F. Blackstock
Title: Senior Vice President, General
Counsel and Secretary
[Logo of CBRL Group, Inc.] POST OFFICE BOX 787
LEBANON, TENNESSEE
37088-0787
PHONE 615.443.9869
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CBRL GROUP, INC.
- --------------------------------------------------------------------------------
Contact: Lawrence E. White
Senior Vice President/
Finance and
Chief Financial Officer
CBRL GROUP, INC. ANNOUNCES 18.9% INCREASE IN DILUTED NET INCOME PER SHARE FOR
SECOND QUARTER OF FISCAL 2005
Provides Guidance for Fiscal 2005 Third Quarter;
Announces Change in Accounting for Certain Leases;
Implements Previously Announced Change in Accounting for
Contingently Convertible Debt
LEBANON, Tenn. (February 17, 2005) -- CBRL Group, Inc. (the "Company") (NASDAQ:
CBRL) today announced results for its second quarter of fiscal 2005 ended
January 28, 2005, reporting diluted net income per share of $0.63, an 18.9%
increase from a restated $0.53 in the second quarter of fiscal 2004. These
results included the effect of implementing the previously announced change in
accounting for the Company's contingently convertible debt as required by
Emerging Issues Task Force (EITF) Issue No. 04-8, as well as restating results
for a change in accounting for certain leases. The Company also announced
results for the six-month period ended January 28, 2005.
Highlights of the fiscal 2005 second-quarter and year-to-date results
include:
o Diluted net income per share for the second quarter was up 18.9%
and net income was up 13.7% from the estimated restated year-ago
quarter on an 8.9% increase in total revenue.
o Comparable store restaurant sales for the second fiscal quarter were
up 3.2% for the Company's Cracker Barrel Old County Store(R)
("Cracker Barrel") operations, and comparable store retail sales at
Cracker Barrel were down 0.3%.
o Comparable restaurant sales for the second fiscal quarter were up
4.4% in the Company's Logan's Roadhouse(R) ("Logan's") restaurants.
o Operating income margin increased to 7.7% of total revenue for the
second fiscal quarter from 7.6% in the year-ago quarter as restated.
o Year-to-date net cash provided by operating activities of $137.4
million up sharply from $76.6 million of net cash provided by
operating activities in the comparable period of fiscal 2004.
o Repurchase of approximately 1.2 million shares of the Company's
outstanding common stock in the second quarter brought year-to-date
repurchases to approximately 2.3 million shares.
o The quarter and year to date are the first periods when present year
and historical results are restated to reflect a previously announced
change in accounting for the effect on diluted net income per share
from the adoption of EITF 04-8, and for adoption of a change in
accounting for lease expense.
-MORE-
CBRL Anounces Second-Quarter Results
Page 2
February 17, 2005
Second-Quarter Fiscal 2005 Results
Total revenue for the second fiscal quarter ended January 28, 2005 of
$667.2 million increased 8.9% from the second fiscal quarter of 2004. Comparable
store restaurant sales for the second quarter for the Cracker Barrel concept
increased 3.2%, including a 4.1% higher average check but 0.9% lower guest
traffic. Cracker Barrel's average menu price increase for the full quarter was
approximately 3.1%, including approximately 1.7% in menu pricing taken in
January of last year and lapped during January this year. Comparable store
retail sales at Cracker Barrel decreased 0.3% for the quarter. Logan's
comparable restaurant sales for the quarter were up 4.4% as average check
increased 4.0% and guest traffic increased 0.4%. Logan's carried approximately
3.3% of menu price increase during the quarter. During the quarter, the Company
opened five new Cracker Barrel units, four new company-operated Logan's
locations and two new franchised Logan's restaurants.
The Company reported net income for the second quarter of fiscal 2005 of
$32.6 million, or $0.63 per diluted share, up 13.7% and 18.9%, respectively,
from estimated restated net income of $28.6 million and estimated restated
diluted net income per share of $0.53 for the second quarter of fiscal 2004. In
the second quarter, the Company has determined that it is likely to incur a
lower income tax rate than it previously expected for fiscal 2005, primarily
reflecting higher than expected tax credits under certain federal jobs-creation
provisions. The 34.2% rate reflected in the second quarter includes a catch-up
effect, so that the 34.6% rate year-to-date reflects the Company's present
expectation of its effective tax rate for the full year. The Company also
repurchased approximately 1.2 million shares of its common stock during the
quarter for approximately $47.2 million.
The Company announced that its results reflected certain restatements of
historical period results. As announced in its November 18, 2004 press release,
the Company's second-quarter diluted net income per share calculation includes
the effect of implementing EITF Issue No. 04-8, which requires accounting for
the Company's contingently convertible debt using "if-converted" accounting
regardless of whether the contingency allowing debt holders to convert is met.
As previously announced, the Company implemented the rule change in reporting
its second fiscal quarter results, and it has restated previous years to reflect
the effect of the rule change on prior periods. Additionally, the Company has
changed its current and historical accounting for certain leases to conform with
changes recently adopted by numerous other public companies. A further
discussion of this change and the related restatement of historical results are
included below. Tables are provided at the end of this press release that show
estimated restated quarterly and full-year results for the affected periods for
both changes in accounting.
Operating income for the second quarter increased 10.1% from the prior year
and was 7.7% of total revenue compared to an estimated restated 7.6% in the
second quarter of fiscal 2004. Compared with the second quarter of last year,
operating income margin reflected an obsolescence reserve addition of
approximately $1.0 million to reflect expected disposition of certain aged and
slow-moving retail inventory at Cracker Barrel, and credits of approximately
$0.8 million for recoveries or expected recoveries of certain insured losses.
Operating income also reflects approximately $0.6 million and $0.5 million,
respectively, in the second quarters of fiscal 2005 and estimated restated
fiscal 2004 for a change in accounting for certain leases discussed more fully
below.
-MORE-
CBRL Anounces Second-Quarter Results
Page 3
February 17, 2005
Commenting on the second-quarter results, CBRL Group, Inc. President and
Chief Executive Officer Michael A. Woodhouse said, "We are very pleased with the
solid results recorded this quarter, and with the progress made in returning to
our long-term objective of 15% diluted net income per share growth through a
combination of prudent unit expansion, improved operating results, and share
repurchases from the strong cash flow generated by our businesses. We are
particularly pleased to post an increase from last year in operating income
margin despite the ongoing commodity pressures we experienced during the
quarter."
Six-Month Fiscal 2005 Results
Total revenue for the six months ended January 28, 2005 of $1.3 billion
increased 7.6 % from the first six months of 2004. Comparable store restaurant
sales for the six months for the Cracker Barrel concept increased 2.8%,
including a 3.6% higher average check but 0.8% lower guest traffic. Comparable
store retail sales at Cracker Barrel decreased 2.5% for the first six months of
fiscal 2005. Logan's comparable restaurant sales for the first six months were
up 4.2% with a 4.6% increase in average check but 0.4% lower guest traffic. The
Company opened 10 new Cracker Barrel units and 11 new company-owned Logan's
locations; two new franchised Logan's restaurants also opened.
The Company reported net income for the first six months of fiscal 2005 of
$62.5 million, or $1.20 per diluted share, reflecting increases of 10.6% and
13.2%, respectively, from estimated restated net income of $56.5 million and
estimated restated diluted net income per share of $1.06 for the first six
months of fiscal 2004.
The Company reported that year-to-date net cash provided by operating
activities of $137.4 million was up sharply from $76.6 million in the first six
months of fiscal 2004, and well in excess of net cash used for the purchase of
property and equipment (capital expenditures) of $76.6 million. The increased
cash provided by operations reflected increased levels of accounts payable from
the relatively low levels at the end of fiscal 2004 as well as the higher
reported net income. Capital expenditures were higher than the prior year's
$63.9 million, primarily reflecting a greater number of new store openings in
development for fiscal 2005.
The Company repurchased approximately 2.3 million shares of its common
stock for approximately $87.1 million year-to-date and paid $11.3 million to
shareholders in dividends. As of the end of the second quarter, the Company had
approximately 0.6 million shares remaining to be repurchased under previously
disclosed authorizations
Restatement Related to Changes for Lease Accounting
Effective with the reporting contained in this press release, the Company
has changed its accounting for certain operating leases consistent with changes
recently adopted by numerous other public companies. As part of this change, it
has restated historical results, also consistent with policies adopted by others
in its industry.
-MORE-
CBRL Anounces Second-Quarter Results
Page 4
February 17, 2005
Since 1985, generally accepted accounting principles in the United States
("GAAP") have required that leases for which there are rent increases over the
term of the lease be accounted for at the average rent payment over the
applicable term. This typically results in accrued rent expense in the early
years being higher than cash rent payments, with the difference being recorded
on the balance sheet as deferred rent liability. In later years of the lease,
actual cash rent payments typically are higher than the average rent, and the
difference is recorded by reducing the deferred rent liability. In effect, rent
payments from the later years of the lease are partially accrued in the earlier
years of the lease. GAAP generally requires that this average, or straight-line,
rent be calculated over the minimum term where the lessee would incur no
economic penalty from terminating the lease. The Company indicated that it and
apparently many others in the industry have long interpreted this to mean the
base term of the lease (i.e., not including option, or renewal, periods) since
not renewing a lease generally is an economic advantage because it allows the
lessee to cease operations at a poorly performing site or to commence operations
at a superior site. The Company indicated that it and apparently many others in
the industry, however, also generally have depreciated leasehold improvements
over a longer period, the expected life of the property, which may often include
optional renewal periods.
The restatement that the Company is recording conforms the period used for
straight-line rent calculation with the estimated useful life used for
depreciating leasehold improvements. This generally means that rent expense
accrued in a given period will include rent that will not actually be paid until
an even more remote future period, often more than 20 years hence and for which
a lessee has no obligation until an option is exercised at some time in the
future. If a lessee determines not to exercise a future renewal option, the rent
accrued in the early years of the lease attributable to the later option period
would be taken as a credit to income, even though there is no cash transaction.
Again, these accrued future rent payments will be accumulated on the balance
sheet as a deferred rent liability.
Additionally, the restatement is based upon the applicable lease terms that
include the pre-opening period during construction in which the Company is
obligated to the lease, but not making payments, yet would incur a substantial
economic penalty by terminating the lease. Typically, rent payments do not
commence until the restaurant opens for business, and the Company has used the
earlier of commencement of operations or rent payments as the date on which it
began to accrue rent, under the principle of matching revenues and expenses. As
a non-cash accrual, the restatement has no net impact on cash flow from
operations, and the income statement and balance sheet effects are summarized in
a table in this press release. The Company will file an amended Form 10-K/A for
fiscal 2004 and an amended Form 10-Q/A for its first fiscal quarter of 2005 as
soon as practical. Additionally, the Company will restate its second and third
quarter of fiscal 2004 prospectively. The current filings should not be relied
upon.
The Company urges caution in considering its current trends and the
earnings guidance disclosed in this press release. The restaurant industry is
highly competitive, and trends and guidance are subject to numerous factors and
influences, some of which are discussed in the cautionary language at the end of
this press release. The Company disclaims any obligation to update disclosed
-MORE-
CBRL Anounces Second-Quarter Results
Page 5
February 17, 2005
information on trends or targets other than in its periodic filings under Forms
10-K, 10-Q, and 8-K with the Securities and Exchange Commission.
Fiscal 2005 Earnings Guidance
The Company's present guidance for diluted net income per share for the
third quarter of fiscal 2005, which ends April 29, 2005, is for a percentage
increase up to the mid-teens compared to the estimated restated $0.48 per share
in the third quarter of last year on a total revenue increase of approximately
9-10%. Earnings guidance reflects many assumptions, many of which cannot be
known, including, very importantly, sales expectations. The Company presently
expects comparable store restaurant sales for the full third quarter to be up
approximately 3-5% at Cracker Barrel and up approximately 2-4% at Logan's.
Comparable store retail sales at Cracker Barrel are presently expected to be
approximately flat to down 1% compared with the year-ago quarter. The Company
presently expects operating income margins for the quarter to be flat to down
slightly, primarily reflecting higher marketing expenses partly offset by other
cost favorability, including lower cost of sales. The Company presently has an
estimated 80-85% of its expected food purchases for the third quarter contracted
with an overall expected percentage inflation on food purchases of approximately
1% from the third quarter of last year, primarily reflecting expectations for
higher pork, chicken and beef prices, partly offset by lower dairy costs. The
Company presently expects to open seven new Cracker Barrel units in the third
quarter, two of which have already opened, and six new Logan's company-operated
units, of which one has already opening. In addition, one new franchised Logan's
restaurant is expected to open in the quarter.
With the present outlook for a strong fourth quarter, the Company presently
expects a percentage increase for the full fiscal year in diluted net income per
share in the mid-to-high teens above the estimated restated $2.18 in fiscal 2004
(excluding the settlement charge taken in the fourth quarter of last year),
reflecting a high-single-digit percentage increase in total revenue and a
full-year operating income margin that is up slightly compared with an estimated
restated 7.9% of revenue recorded in fiscal 2004 (also excluding the effect of
the settlement charge). The Company's full-year guidance includes an expectation
for lower commodity costs in the fourth quarter than in the prior year, with
approximately 70% of the Company's food cost purchases for the fourth quarter
currently contracted. The Company is developing plans to address the impact of
enacted minimum wage increases in certain states in which it operates. The
estimated cost of the minimum wage increases is expected to be approximately
$1.2-$1.3 million in the fourth quarter and substantially less than that in the
third quarter.
Fiscal 2005 Second-Quarter Conference Call
The live broadcast of CBRL Group's quarterly conference call will be
available to the public on-line at www.vcall.com or www.cbrlgroup.com today
beginning at 11:00 a.m. (EST). The on-line replay will follow immediately and
continue through February 24, 2005.
Headquartered in Lebanon, Tennessee, CBRL Group, Inc. presently operates
516 Cracker Barrel Old Country Store restaurants and gift shops located in 41
states and 119 company-operated and 22 franchised Logan's Roadhouse restaurants
in 18 states.
-MORE-
CBRL Anounces Second-Quarter Results
Page 6
February 17, 2005
Except for specific historical information, many of the matters discussed
in this press release may express or imply projections of revenues or
expenditures, statements of plans and objectives or future operations or
statements of future economic performance. These, and similar statements are
forward-looking statements concerning matters that involve risks, uncertainties
and other factors which may cause the actual performance of CBRL Group, Inc. and
its subsidiaries to differ materially from those expressed or implied by this
discussion. All forward-looking information is provided by the Company pursuant
to the safe harbor established under the Private Securities Litigation Reform
Act of 1995 and should be evaluated in the context of these factors.
Forward-looking statements generally can be identified by the use of
forward-looking terminology such as "assumptions", "target", "guidance",
"outlook", "plans", "projection", "may", "will", "would", "expect", "intend",
"estimate", "anticipate", "believe", "potential" or "continue" (or the negative
or other derivatives of each of these terms) or similar terminology. Factors
which could materially affect actual results include, but are not limited to:
the effects of uncertain consumer confidence or general or regional economic
weakness on sales and customer travel activity; the ability of the Company to
identify, acquire and sell successful new lines of retail merchandise; the
availability and cost of acceptable sites for development and the Company's
ability to identify such sites; commodity, workers' compensation, group health
and utility price changes; consumer behavior based on concerns over nutritional
or safety aspects of the Company's products or restaurant food in general;
competitive marketing and operational initiatives; the effects of plans intended
to improve operational execution and performance; changes in or implementation
of additional governmental or regulatory rules, regulations and interpretations
affecting accounting, tax, wage and hour matters, health and safety, pensions,
insurance or other undeterminable areas; practical or psychological effects of
terrorist acts or war and military or government responses; the effects of
increased competition at Company locations on sales and on labor recruiting,
cost, and retention; the ability of and cost to the Company to recruit, train,
and retain qualified restaurant hourly and management employees; disruptions to
the company's restaurant or retail supply chain; changes in foreign exchange
rates affecting the Company's future retail inventory purchases; the actual
results of pending or threatened litigation or governmental investigations and
the costs and effects of negative publicity associated with these activities;
changes in accounting principles generally accepted in the United States of
America or changes in capital market conditions that could affect valuations of
restaurant companies in general or the Company's goodwill in particular;
increases in construction costs; changes in interest rates affecting the
Company's financing costs; and other factors described from time to time in the
Company's filings with the SEC, press releases, and other communications.
-MORE-
CBRL Anounces Second-Quarter Results
Page 7
February 17, 2005
CBRL GROUP, INC.
CONSOLIDATED INCOME STATEMENT
(Unaudited)
(In thousands, except share amounts)
Second Quarter Ended Six Months Ended
--------------------------------------- ------------------------------------------
1/28/05 1/30/04 Change 1/28/05 1/30/04 Change
---------- ----------- ------ ------------- ----------- ------
(As Restated) (As Restated)
Total revenue $ 667,189 $ 612,801 9 % $ 1,279,842 $ 1,189,166 8%
Cost of goods sold 236,389 213,527 11 436,231 399,427 9
---------- ----------- ------------- -----------
Gross profit 430,800 399,274 8 843,611 789,739 7
Labor & other related expenses 232,749 219,007 6 458,938 433,310 6
Other store operating expenses 113,580 102,857 10 218,127 200,063 9
---------- ----------- ------------ -----------
Store operating income 84,471 77,410 9 166,546 156,366 7
General and administrative 32,834 30,519 8 66,766 63,939 4
---------- ----------- ------------ -----------
Operating income 51,637 46,891 10 99,780 92,427 8
Interest expense 2,200 2,068 6 4,295 4,291 -
Interest income 96 5 1820 96 5 1820
---------- ----------- ------------ ----------
Pretax income 49,533 44,828 10 95,581 88,141 8
Provision for income taxes 16,955 16,180 5 33,073 31,642 5
---------- ----------- ------------ -----------
Net income $ 32,578 $ 28,648 14 $ 62,508 $ 56,499 11
========== =========== ============ ===========
Earnings per share
Basic $ 0.68 $ 0.58 17 $ 1.29 $ 1.16 11
========== =========== ============ ===========
Diluted $ 0.63 $ 0.53 19 $ 1.20 $ 1.06 13
========== =========== ============ ===========
Weighted average shares:
Basic 48,138,387 49,528,995 (3) 48,425,269 48,825,432 (1)
Diluted 53,816,998 55,707,178 (3) 54,086,885 55,162,768 (2)
Ratio Analysis
- --------------
Net sales:
Restaurant 75.6% 74.6% 78.0% 76.8%
Retail 24.3 25.3 21.9 23.1
---------- ----------- ------------ -----------
Total net sales 99.9 99.9 99.9 99.9
Franchise fees and royalties 0.1 0.1 0.1 0.1
---------- ----------- ------------ -----------
Total revenue 100.0 100.0 100.0 100.0
Cost of goods sold 35.4 34.8 34.1 33.6
---------- ----------- ------------ -----------
Gross profit 64.6 65.2 65.9 66.4
Labor & other related expenses 34.9 35.8 35.9 36.5
Other store operating expenses 17.0 16.8 17.0 16.8
--------- ----------- ------------ -----------
Store operating income 12.7 12.6 13.0 13.1
General and administrative 5.0 5.0 5.2 5.3
---------- ----------- ------------ -----------
Operating income 7.7 7.6 7.8 7.8
Interest expense 0.3 0.3 0.3 0.4
Interest income -- -- -- --
---------- ----------- ---------- -----------
Pretax income 7.4 7.3 7.5 7.4
Provision for income taxes 2.5 2.6 2.6 2.6
---------- ----------- ------------ -----------
Net income 4.9% 4.7% 4.9% 4.8%
========== ========== ============ ===========
-MORE-
CBRL Announces Second Quarter Results
Page 8
February 17, 2005
CONSOLIDATED CONDENSED BALANCE SHEET
(Unaudited)
(In thousands)
1/28/05 7/30/04
------------ ------------
Assets (As Restated)
Cash and cash equivalents $ 20,405 $ 28,775
Other current assets 164,068 174,265
Property and equipment, net 1,160,242 1,118,573
Goodwill 93,724 93,724
Other assets 25,591 20,367
------------ ------------
Total assets $ 1,464,030 $ 1,435,704
============ ============
Liabilities and Stockholders' Equity
Current liabilities $ 267,581 $ 242,235
Long-term debt 187,901 185,138
Other long-term obligations 143,195 134,995
Stockholders' equity 865,353 873,336
------------ ------------
Total liabilities and stockholders' equity $ 1,464,030 $ 1,435,704
============ ============
CONSOLIDATED CONDENSED CASH FLOW STATEMENT
(Unaudited)
(In thousands)
Six Months Ended
------------------------------
1/28/05 1/30/04
----------- ------------
(As Restated)
Cash flow from operating activities:
Net income $ 62,508 $ 56,499
Depreciation and amortization 33,627 30,929
Loss on disposition of property and equipment 1,227 972
Accretion on zero-coupon notes 2,763 2,676
Net changes in other assets and liabilities 37,282 (14,484)
----------- -----------
Net cash provided by operating activities 137,407 76,592
----------- -----------
Cash flows from investing activities:
Purchase of property and equipment (76,587) (63,899)
Proceeds from sale of property and equipment 875 682
----------- -----------
Net cash used in investing activities (75,712) (63,217)
Cash flows from financing activities:
Proceeds from issuance of long-term debt 226,700 130,000
Principal payments under long-term obligations (226,794) (137,049)
Proceeds from exercise of stock options 28,456 43,768
Purchase and retirement of common stock (87,094) (18,299)
Dividends on common stock (11,333) (5,373)
Other -- (1)
----------- -----------
Net cash (used in) provided by financing activities (70,065) 13,046
----------- -----------
Net (decrease) increase in cash and cash equivalents (8,370) 26,421
Cash and cash equivalents, beginning of period 28,775 14,389
----------- -----------
Cash and cash equivalents, end of period $ 20,405 $ 40,810
=========== ===========
-MORE-
CBRL Announces Second Quarter Results
Page 9
February 17, 2005
CBRL GROUP, INC.
Supplemental Information
(Unaudited)
As of As of As of
1/28/05 7/30/04 1/30/04
------------ ----------- -----------
Common shares outstanding 47,878,834 48,769,368 49,767,422
============ =========== ===========
Units in operation:
Cracker Barrel 514 504 488
Logan's Roadhouse - company-owned 118 107 103
----------- ---------- -----------
Total company-owned units 632 611 591
Logan's Roadhouse - franchised 22 20 17
----------- ---------- -----------
System-wide units 654 631 608
=========== ========== ===========
Second Quarter Ended Six Months Ended
Net sales in company-owned stores: 1/28/05 1/30/04 1/28/05 1/30/04
------------- ------------- -------------- -------------
(In thousands)
Cracker Barrel - restaurant $ 410,387 $ 378,880 $ 818,800 $ 762,191
Cracker Barrel- retail 162,341 155,313 280,252 274,752
Cracker Barrel - total ------------- ------------- -------------- -------------
572,728 534,193 1,099,052 1,036,943
Logan's Roadhouse 93,869 78,139 179,669 151,348
------------- ------------- -------------- -------------
Total net sales 666,597 612,332 1,278,721 1,188,291
Franchise fees and royalties 592 469 1,121 875
------------- ------------- -------------- -------------
Total revenue $ 667,189 $ 612,801 $ 1,279,842 $ 1,189,166
============= ============= ============== =============
Operating weeks - company-owned stores:
Cracker Barrel 6,661 6,315 13,234 12,583
Logan's Roadhouse 1,516 1,315 2,955 2,596
Average comparable store sales -
company-owned stores: (In thousands)
Cracker Barrel - restaurant $ 804.1 $ 779.0 $ 1,617.8 $ 1,574.1
Cracker Barrel - retail 314.5 315.6 545.8 560.0
------------- ------------- -------------- -------------
Cracker Barrel - total (472 and 466 units) $ 1,118.6 $ 1,094.6 $ 2,163.6 $ 2,134.1
============= ============= ============== =============
Logan's Roadhouse (96 and 93 units) $ 793.7 $ 760.2 $ 1,561.9 $ 1,498.8
============= ============= ============== =============
Capitalized interest $ 180 $ 164 $ 361 $ 288
============= ============= ============== =============
CBRL Announces Second Quarter Results
Page 10
February 17, 2005
Summary Effect of Estimated Restatement for Accounting for EITF 04-8 and Certain Leases (Unaudited)
CBRL GROUP, INC.
SELECTED INCOME STATEMENT DATA
(In thousands, except share data)
(Unaudited)
FISCAL YEARS ENDING
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Basic Diluted
Diluted net weighted weighted
Operating Income before Basic net income income per average average
Total Revenue income* income taxes* Net income* per share* share** shares shares***
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July 30, 2004
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As reported $ 2,380,947 $ 185,136 $ 176,697 $ 113,262 $ 2.32 $ 2.25 48,877,306 50,369,845
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Estimated restatement 2,380,947 182,987 174,548 111,885 2.29 2.12 48,877,306 54,952,633
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August 1, 2003
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As reported 2,198,182 174,081 165,262 106,529 2.16 2.09 49,274,373 50,998,339
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Estimated restatement 2,198,182 171,878 163,059 105,108 2.13 1.97 49,274,373 55,581,127
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August 2, 2002
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As reported 2,071,784 149,300 142,531 91,789 1.69 1.64 54,198,845 56,090,940
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Estimated restatement 2,071,784 147,210 140,441 90,444 1.67 1.59 54,198,845 57,626,929
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August 3, 2001
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As reported 1,967,998 96,696 84,464 49,181 0.88 0.87 56,128,956 56,799,124
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Estimated restatement 1,967,998 95,634 83,402 48,550 0.86 0.85 56,128,956 56,799,124
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July 28, 2000
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As reported 1,777,119 118,969 94,705 58,998 1.02 1.02 57,959,646 58,041,290
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Estimated restatement 1,777,119 117,824 93,560 58,273 1.01 1.00 57,959,646 58,041,290
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* Reflects restatement effects of change in accounting for operating leases
** Reflects restatement effects of change in accounting for operating leases and
adoption of EITF 04-8
*** Reflects restatement effects of adoption of EITF 04-8
CBRL Announces Second Quarter Results
Page 11
February 17, 2005
CBRL GROUP, INC.
SELECTED INCOME STATEMENT DATA
(In thousands, except share data)
(Unaudited)
FISCAL QUARTERS ENDING
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Basic net Diluted net Diluted
Operating Income before income per income per Basic weighted weighted
Total Revenue income* income taxes* Net income* share* share** average shares average
shares ***
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October 29, 2004
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As reported $ 612,653 $ 48,672 $ 46,577 $ 30,275 $ 0.62 $ 0.61 48,712,161 49,773,983
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Estimated restatement 612,653 48,143 46,048 29,930 0.61 0.57 48,712,161 54,356,771
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July 30, 2004
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As reported 607,499 48,823 46,677 29,919 0.61 0.60 48,730,740 49,800,652
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Estimated restatement 607,499 48,280 46,134 29,571 0.61 0.56 48,730,740 54,383,440
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April 30, 2004
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As reported 584,282 42,852 40,845 26,182 0.53 0.52 49,127,619 50,518,767
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Estimated restatement 584,282 42,280 40,273 25,815 0.53 0.49 49,127,619 55,101,555
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January 30, 2004
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As reported 612,801 47,444 45,381 29,001 0.59 0.57 49,528,995 51,124,390
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Estimated restatement 612,801 46,891 44,828 28,648 0.58 0.53 49,528,995 55,707,178
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October 31, 2003
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As reported 576,365 46,017 43,794 28,160 0.59 0.56 48,121,869 50,035,570
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Estimated restatement 576,365 45,536 43,313 27,851 0.58 0.53 48,121,869 54,618,358
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* Reflects restatement effects of change in accounting for operating leases
** Reflects restatement effects of change in accounting for operating leases and
adoption of EITF 04-8
*** Reflects restatement effects of adoption of EITF 04-8
CBRL Announces Second Quarter Results
Page 12
February 17, 2005
CBRL GROUP, INC.
SELECTED BALANCE SHEET DATA
(In thousands)
(Unaudited)
PERIODS ENDING
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October 29, 2004 October 29, 2004 July 30, 2004 July 30, 2004
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(Estimated (Estimated
(As reported) restatement) (As reported) restatement)
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ASSETS
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Total current assets $ 225,129 $ 225,129 $ 203,040 $ 203,040
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Net property and equipment 1,139,503 1,139,503 1,118,573 1,118,573
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Total other assets * 117,496 118,338 113,249 114,091
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Total assets * $1,482,128 $1,482,970 $1,434,862 $1,435,704
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LIABILITIES AND STOCKHOLDERS' EQUITY
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Total current liabilities * $ 270,355 $ 265,624 $ 246,782 $ 242,235
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Long-term debt 206,520 206,520 185,138 185,138
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Other Liabilities * 127,711 140,540 122,695 134,995
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Total stockholders' equity * 877,542 870,286 880,247 873,336
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Total liabilities and stockholders'$ 1,482,128 $ 1,482,970 $ 1,434,862 $ 1,435,704
equity *
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* Reflects restatement effects of change in accounting for operating leases
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