Net Sales Increase 3.5% Over Same Quarter A Year Ago
J. Alexander’s Holdings, Inc. (NYSE: JAX) (the Company), owner and
operator of a collection of restaurants which includes J. Alexander’s,
Redlands Grill, Stoney River Steakhouse and Grill and selected other
restaurants, today reported financial results for the first quarter
ended April 1, 2018.
First Quarter 2018 Highlights Compared to the First Quarter Of 2017
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Net sales were $61,909,000, an improvement of 3.5% from $59,822,000
recorded in the first quarter of 2017.
-
For the J. Alexander’s/Grill restaurants, average weekly same store
sales per restaurant (1) were $120,100, a gain of 0.3% from
$119,800 reported in the first quarter of 2017. For the Stoney River
Steakhouse and Grill restaurants, average weekly same store sales
reached $83,700, an increase of 6.2% from $78,800 reported in the
corresponding quarter of 2017.
-
Income from continuing operations before income taxes was $1,842,000
for the first quarter of 2018 compared to income from continuing
operations before income taxes of $3,641,000 for the first quarter of
2017. Among the primary factors impacting income from continuing
operations before income taxes for the most recent quarter was the
quarterly valuation of the Black Knight Advisory Services, LLC (“Black
Knight”) profits interest grant, which resulted in a profits interest
expense of $1,907,000. This compared to income of $39,000 in the same
quarter a year ago. The Black Knight profits interest grant was issued
in October 2015 and requires a quarterly valuation. The non-cash
expense (income) associated with this grant is being recognized over a
three‐year vesting period which runs through October 6, 2018. It is
calculated each quarter based upon the most recent valuation performed
using the Black‐Scholes valuation model, with any cumulative change
associated with the most recent valuation impacting the most recent
quarter. Primarily due to the $11.45 per share closing price of the
Company’s stock at the end of the most recent quarter, the grant’s
valuation increased from $4,876,000 at December 31, 2017 to $6,684,000
at April 1, 2018. The Company also incurred consulting fees of
$244,000 under its management agreement with Black Knight for the most
recent quarter. This compares to consulting fees of $265,000 in the
first quarter of 2017.
-
During the first quarter of 2018, the Company’s income from continuing
operations before income taxes was also impacted by transaction
expenses of $926,000 related primarily to the proposed acquisition of
the Ninety Nine Restaurant and Pub concept originally announced in
August 2017. On February 1, 2018, the Company announced that it did
not receive the required number of disinterested shareholder votes to
approve the proposed acquisition, and the merger agreement was
thereafter terminated. The transaction expenses were primarily related
to professional fees for work performed during the first quarter of
2018.
-
Net income for the first quarter of 2018 was $1,593,000, down from net
income of $2,684,000 achieved in the comparable quarter of 2017.
Results for the most recent quarter include an income tax provision of
$138,000 compared to an income tax provision of $844,000 in the same
quarter of 2017, with the decrease being primarily attributable to the
impact of the decrease in the federal tax rate as a result of the
passage of the Tax Cuts and Jobs Act of 2017.
-
Basic and diluted earnings per share totaled $0.11 for the first
quarter of 2018 compared to $0.18 recorded in the first quarter of
2017.
-
Adjusted EBITDA(2) improved 7.2% from $7,601,000 in the
first quarter of 2017 to $8,151,000 in the first quarter of 2018.
-
Restaurant Operating Profit Margin (3) as a percent of net
sales was 15.9% in both the first quarter of 2018 as well
as the first quarter of 2017.
-
Cost of sales as a percentage of net sales in the first quarter of
2018 was 31.1% compared to 30.8% in the corresponding quarter of 2017.
(1)Average weekly same store sales per restaurant is computed by
dividing total restaurant same store sales for the period by the total
number of days all same store restaurants were open for the period to
obtain a daily sales average. The daily same store sales average is then
multiplied by seven to arrive at average weekly same store sales per
restaurant. Days on which restaurants are closed for business for any
reason other than scheduled closures on Thanksgiving and Christmas are
excluded from this calculation. Sales and sales days used in this
calculation and amounts of other “same store” figures in this release
include only those for restaurants in operation at the end of the period
which have been open for more than 18 months. Revenue associated with
reduction in liabilities for gift cards, which is recognized in
proportion to guest redemptions based on historical redemption rates and
commonly referred to as gift card breakage, is not included in the
calculation of average weekly same store sales per restaurant. Average
weekly same store sales is computed from sales amounts that have been
determined in accordance with U.S. generally accepted accounting
principles (GAAP).
(2)Please refer to the financial information accompanying this
release for our definition of and a reconciliation of the non‐GAAP
financial measure Adjusted EBITDA to net income. Management uses
Adjusted EBITDA to evaluate operating performance and the effectiveness
of its business strategies.
(3)“Restaurant Operating Profit Margin” is the ratio of Restaurant
Operating Profit, a non‐GAAP financial measure, to net sales. Please
refer to the financial information accompanying this release for our
definition of and a reconciliation of the non‐GAAP financial measure
Restaurant Operating Profit to Operating Income. Management uses
Restaurant Operating Profit to measure operating performance at the
restaurant level.
For the first quarter of 2018, the Company’s restaurant labor and
related costs as a percentage of net sales were 29.4% as compared to
30.0% of net sales in the first quarter of 2017. Other restaurant
operating expenses were 19.4% of net sales in the first quarter of 2018
as compared to 19.3% of net sales in the same quarter of 2017.
The Company’s operating income for the first quarter of 2018 was
$2,058,000 compared to operating income of $3,794,000 posted in
the first quarter of 2017.
The average weekly guest counts within the same store base of the
Company’s J. Alexander’s/Grills collection were down 2.0% in the first
quarter of 2018 compared to the first quarter a year earlier. Guest
counts within the same store base at the Company’s Stoney River
Steakhouse and Grill restaurants were up 8.3% for the first quarter of
2018 compared to the first quarter of 2017. With respect to average
guest checks, which include alcoholic beverage sales, the average guest
check within the J. Alexander’s/Grills same store base of restaurants
during the first quarter of 2018 was $31.86, up 2.5% from $31.08 during
the first quarter of 2017. The average guest check within the same store
base of Stoney River Steakhouse and Grill restaurants totaled $42.87
during the first quarter of 2018, down 1.7% from $43.63 recorded in the
same quarter of 2017.
On a consolidated basis, average weekly guest counts within the
Company’s J. Alexander’s/Grills locations in the first quarter of 2018
were down 2.5% from the first quarter of 2017 while average weekly guest
counts within the Company’s Stoney River Steakhouse and Grill locations
advanced 8.7% for the first quarter of 2018 compared to the first
quarter of 2017. Average guest checks for the combined J.
Alexander’s/Grills concepts rose 2.5% from $31.12 in the first quarter
of 2017 to $31.89 for the first quarter of 2018. Average guest checks
for the Stoney River Steakhouse and Grill restaurants decreased 2.2%
from $43.60 in the first quarter of 2017 to $42.66 in the first quarter
of 2018.
The effect of menu pricing for the first quarter of 2018 was estimated
to be a 1.8% increase for the J. Alexander’s/Grills restaurants and a
0.2% increase for the Stoney River Steakhouse and Grill restaurants
compared to the corresponding quarter of 2017. Inflation in food costs
for the first quarter of 2018 was estimated to total 2.9% for the J.
Alexander’s/Grills restaurants, with beef costs increasing by an
estimated 2.7% compared to the first quarter of 2017. For the Stoney
River Steakhouse and Grill restaurants, inflation for the first quarter
of 2018 was estimated to total 2.8%, with beef costs up by approximately
3.0% over the first quarter of 2017.
Chief Executive Officer’s Comments
“We are pleased to report another quarter of growth in same store
sales,” said Lonnie J. Stout II, President and Chief Executive Officer
of J. Alexander’s Holdings, Inc. “We are particularly encouraged with
the progress we’re seeing within our Stoney River restaurants as we
continue to expand our lunch and brunch offerings in markets that we
determine are able to support such business. Our lunch and brunch menus
typically include lower priced entrée offerings, which by design drives
down the average guest check. However, we firmly believe that the more
often our guests visit our restaurants, the more likely it is that these
guests will become part of the foundational base upon which all of our
successful locations have historically been established.” Stout noted
that six of the Stoney River restaurants are now serving lunch while
nine of the locations offer brunch at least one day each weekend.
“As indicated in our last earnings release, we were confronted with
extremely harsh winter weather in several of our Midwestern and Southern
markets during the first quarter of 2018. The severity of weather
conditions, particularly in January and February, forced restaurant
closings for 27 days and resulted in estimated lost revenue of
approximately $400,000 in the first quarter of 2018 across the Company.
This compared to only three days of weather related restaurant closings
and estimated lost revenue of $40,000 in the first quarter of 2017.”
Stout pointed out that severe weather, primarily during January and
February, also affected restaurant guest counts in the most recent
quarter. As noted above, guest counts within the J. Alexander’s/Grills
collection same store base of restaurants were down 2.0%, with over half
of the decrease attributed to the impact of severe winter weather on
days which the J. Alexander’s/Grills restaurants remained open for
business but traffic, and thus revenue, was adversely affected. He noted
that management estimates that an additional $600,000 in net sales were
lost as a result of severe winter weather on days where the decision was
made to open for at least a portion of the day, but added that guest
counts for this group of restaurants improved each month during the
quarter and have been slightly positive during the first few weeks of
April.
“Also during the most recent quarter,” Stout noted, “our cost of sales
reflected modest increases in beef costs, which were up 2.7% in our J.
Alexander’s/Grills collection and 3.0% in our Stoney River Steakhouse
and Grill restaurants.” The increase in input costs in the first quarter
of 2018 compares to significantly lower beef prices incurred in the same
quarter a year earlier. During the first quarter of 2017, beef prices
were down 9.8% at J. Alexander’s/Grills restaurants and 7.6% at Stoney
River Steakhouse and Grill restaurants.
“While beef prices during the first quarter of 2018 were at higher
levels than the first quarter a year ago,” Stout said, “they were well
within our normal range and guidelines. In fact, for certain products,
we have seen pricing over the past four-to-six weeks that is running
below last year’s cost during the comparable period. An abundance of
quality beef is presently available, and we are not having to pay
premium prices to ensure that our strict specifications are met. We
anticipate that we can hold the line in cost of sales as we look out
over the remainder of 2018.”
Restaurant Development
J. Alexander’s Holdings, Inc. opened a new J. Alexander’s restaurant in
King of Prussia, PA on April 30, 2018, marking the Company’s entry into
Pennsylvania. The new J. Alexander’s restaurant is approximately 15
miles from Philadelphia. The Company has construction underway on a new
Stoney River Steakhouse and Grill in Troy, MI. This new restaurant is
expected to open in the fourth quarter of 2018.
Guidance For 2018
The following performance outlook is based on current information as of
May 3, 2018. The Company does not expect to update the guidance provided
as follows before next quarter’s earnings release. However, the
information on which the outlook is based is subject to change, and the
Company may update its full business outlook or any portion thereof at
any time for any reason.
Based upon current information, the guidance for the 2018 fiscal year is
the same as reported on March 7, 2018 with the exception of the
Company’s estimated effective tax rate, which has been reduced from the
original guidance range of 10% - 16% to the current range of 1% - 7%.
Conference Call
The Company will hold a conference call on Friday, May 4, 2018, at 10
a.m., Central time to discuss its financial results for the first
quarter ended April 1, 2018. The conference call can be accessed live
over the phone by dialing 1‐877‐407‐0789 (Toll‐Free) or 1‐201‐689‐8562
(Toll/International). To access the call via the internet, go to J.
Alexander’s website at http://investor.jalexandersholdings.com
or http://public.viavid.com/index.php?id=129453.
A replay of the conference call will be available shortly following the
conclusion of the call at http://investor.jalexandersholdings.com
and http://public.viavid.com/index.php?id=129453,
as well as by dialing 1‐844‐512‐2921 or 1‐412‐317‐6671 and providing the
access code 13679144. The replay will be accessible through May 11, 2018
via telephone and for 30 days on the internet.
About J. Alexander’s Holdings, Inc.
J. Alexander’s Holdings, Inc. is a collection of restaurants that focus
on providing high quality food, outstanding professional service and an
attractive ambiance.
The Company presently operates 45 restaurants in 16 states. The Company
has its headquarters in Nashville, TN. For additional information, visit www.jalexandersholdings.com.
Forward‐Looking Statements
This press release issued by J. Alexander’s Holdings, Inc. contains
forward-looking statements, which include all statements that do not
relate solely to historical or current facts, such as statements
regarding our expectations, intentions or strategies regarding the
future. These forward‐looking statements are based on management's
beliefs, as well as assumptions made by, and information currently
available to, management. Because such statements are based on
expectations as to future financial and operating results and are not
statements of fact, actual results may differ materially from those
projected and are subject to a number of known and unknown risks and
uncertainties, including the Company’s ability to maintain satisfactory
guest count levels and maintain or increase sales and operating margins
in its restaurants under varying economic conditions; the effect of
higher commodity prices, unemployment and other economic factors on
consumer demand; increases in food input costs or product shortages and
the Company’s response to them; the number and timing of new restaurant
openings and the Company’s ability to operate them profitably;
competition within the casual dining industry and within the markets in
which our restaurants are located; adverse weather conditions in regions
in which the Company’s restaurants are located; factors that are under
the control of third parties, including government agencies; as well as
other risks and uncertainties described under the headings
"Forward‐Looking Statements," "Risk Factors" and other sections of the
Company’s Annual Report on Form 10‐K filed with the Securities and
Exchange Commission on March 15, 2018 and subsequent filings. The
Company undertakes no obligation to update any forward-looking
statements, whether as a result of new information, future events or
otherwise.
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J. Alexander's Holdings, Inc. and Subsidiaries
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Condensed Consolidated Statements of Income
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(Unaudited in thousands, except per share amounts)
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Quarter Ended
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April 1
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April 2
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2018
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2017
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Net sales
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$
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61,909
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$
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59,822
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Costs and expenses:
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Cost of sales
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19,261
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18,431
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Restaurant labor and related costs
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18,226
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17,945
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Depreciation and amortization of restaurant property and equipment
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2,569
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2,378
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Other operating expenses
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12,018
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11,570
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Total restaurant operating expenses
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52,074
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50,324
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Transaction and integration expenses
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926
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-
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General and administrative expenses
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6,525
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4,828
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Pre-opening expenses
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326
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876
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Total operating expenses
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59,851
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56,028
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Operating income
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2,058
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3,794
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Other income (expense):
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Interest expense
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(174
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)
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(174
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Other, net
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(42
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)
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21
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Total other expense
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(216
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)
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(153
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Income from continuing operations before income taxes
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1,842
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3,641
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Income tax expense
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(138
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)
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(844
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)
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Loss from discontinued operations, net
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(111
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)
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(113
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)
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Net income
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$
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1,593
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$
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2,684
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Basic earnings per share:
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Income from continuing operations, net of tax
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$
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0.12
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$
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0.19
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Loss from discontinued operations, net
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(0.01
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)
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(0.01
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Basic earnings per share
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$
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0.11
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$
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0.18
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Diluted earnings per share:
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Income from continuing operations, net of tax
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$
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0.11
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$
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0.19
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Loss from discontinued operations, net
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(0.01
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)
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(0.01
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)
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Diluted earnings per share
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$
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0.11
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$
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0.18
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Weighted average common shares outstanding:
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Basic
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14,695
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14,695
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Diluted
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14,838
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14,695
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Note: Per share amounts may not sum due to rounding.
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J. Alexander's Holdings, Inc. and Subsidiaries
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Condensed Consolidated Statements of Income Data as a Percentage
of Net Sales and
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Other Financial and Performance Data (Unaudited)
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Quarter Ended
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April 1
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April 2
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2018
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2017
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Net sales
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100.0
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%
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100.0
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%
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Costs and expenses:
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Cost of sales
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31.1
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30.8
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Restaurant labor and related costs
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29.4
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30.0
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Depreciation and amortization of restaurant property and equipment
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4.1
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4.0
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Other operating expenses
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19.4
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19.3
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Total restaurant operating expenses
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84.1
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84.1
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Transaction and integration expenses
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1.5
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-
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General and administrative expenses
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10.5
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8.1
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Pre-opening expense
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0.5
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1.5
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Total operating expenses
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96.7
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93.7
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Operating income
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3.3
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6.3
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Other income (expense):
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Interest expense
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(0.3
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)
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(0.3
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Other, net
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(0.1
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)
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0.0
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Total other expense
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(0.3
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(0.3
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Income from continuing operations before income taxes
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3.0
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6.1
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Income tax expense
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(0.2
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)
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(1.4
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Loss from discontinued operations, net
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(0.2
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)
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(0.2
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Net income
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2.6
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%
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4.5
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%
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Note: Certain percentage totals do not sum due to rounding.
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Other Financial and Performance Data:
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Adjusted EBITDA(1)
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$
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8,151
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$
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7,601
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As a % of net sales
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13.2
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%
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12.7
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%
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Average weekly sales per restaurant:
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J. Alexander’s Restaurant/ Grills
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$
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118,300
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$
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118,200
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Percent change
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0.1
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%
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Stoney River Steakhouse and Grill
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$
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82,700
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$
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77,900
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Percent change
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6.2
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%
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Average weekly same store sales per restaurant:
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J. Alexander’s Restaurant/ Grills
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$
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120,100
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$
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119,800
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Percent change
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0.3
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%
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Stoney River Steakhouse and Grill
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$
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83,700
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$
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78,800
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Percent change
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6.2
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%
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(1) See definitions and reconciliation attached.
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J. Alexander's Holdings, Inc. and Subsidiaries
|
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Condensed Consolidated Balance Sheets
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(Unaudited in thousands)
|
|
|
|
|
April 1
|
|
|
December 31
|
|
|
|
|
2018
|
|
|
2017
|
|
Assets
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
10,120
|
|
|
$
|
10,711
|
|
Other current assets
|
|
|
|
6,192
|
|
|
|
8,019
|
|
Total current assets
|
|
|
|
16,312
|
|
|
|
18,730
|
|
|
|
|
|
|
|
|
|
Other assets
|
|
|
|
5,763
|
|
|
|
6,183
|
|
Property and equipment, net
|
|
|
|
105,939
|
|
|
|
103,615
|
|
Goodwill
|
|
|
|
15,737
|
|
|
|
15,737
|
|
Tradename and other indefinite-lived intangibles
|
|
|
|
25,202
|
|
|
|
25,202
|
|
Deferred Charges, net
|
|
|
|
173
|
|
|
|
184
|
|
|
|
|
$
|
169,126
|
|
|
$
|
169,651
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
$
|
27,325
|
|
|
$
|
30,027
|
|
Long term debt, net of portion classified as current and
unamortized deferred loan costs
|
|
|
|
9,552
|
|
|
|
10,781
|
|
Deferred compensation obligations
|
|
|
|
6,572
|
|
|
|
6,451
|
|
Deferred income taxes
|
|
|
|
1,420
|
|
|
|
2,075
|
|
Other long-term liabilities
|
|
|
|
6,629
|
|
|
|
6,456
|
|
Stockholders' equity
|
|
|
|
117,628
|
|
|
|
113,861
|
|
|
|
|
$
|
169,126
|
|
|
$
|
169,651
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
J. Alexander's Holdings, Inc. and Subsidiaries
|
|
Condensed Consolidated Statements of Cash Flows
|
|
(Unaudited in thousands)
|
|
|
Quarter Ended
|
|
|
|
|
April 1
|
|
|
April 2
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
1,593
|
|
|
|
$
|
2,684
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
Depreciation and amortization of property and equipment
|
|
|
|
2,642
|
|
|
|
|
2,449
|
|
|
Equity-based compensation expense
|
|
|
|
2,140
|
|
|
|
|
278
|
|
|
Other, net
|
|
|
|
(156
|
)
|
|
|
|
(54
|
)
|
|
Changes in assets and liabilities, net
|
|
|
|
621
|
|
|
|
|
2,411
|
|
|
Net cash provided by operating activities
|
|
|
|
6,840
|
|
|
|
|
7,768
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
Purchase of property and equipment
|
|
|
|
(6,177
|
)
|
|
|
|
(4,445
|
)
|
|
Other investing activities
|
|
|
|
(4
|
)
|
|
|
|
65
|
|
|
Net cash used in investing activities
|
|
|
|
(6,181
|
)
|
|
|
|
(4,380
|
)
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
Payments on long-term debt and obligations under capital leases
|
|
|
|
(1,250
|
)
|
|
|
|
(417
|
)
|
|
Other financing activities
|
|
|
|
-
|
|
|
|
|
(2
|
)
|
|
Net cash used in financing activities
|
|
|
|
(1,250
|
)
|
|
|
|
(419
|
)
|
|
(Decrease) Increase in cash and cash equivalents
|
|
|
|
(591
|
)
|
|
|
|
2,969
|
|
|
Cash and cash equivalents at beginning of period
|
|
|
|
10,711
|
|
|
|
|
6,632
|
|
|
Cash and cash equivalents at end of period
|
|
|
$
|
10,120
|
|
|
|
$
|
9,601
|
|
|
|
|
|
|
|
|
|
|
Supplemental disclosures:
|
|
|
|
|
|
|
|
Property and equipment obligations accrued at beginning of period
|
|
|
$
|
1,854
|
|
|
|
$
|
2,587
|
|
|
Property and equipment obligations accrued at end of period
|
|
|
|
701
|
|
|
|
|
1,420
|
|
|
Cash paid for interest
|
|
|
|
197
|
|
|
|
|
193
|
|
|
Cash paid for income taxes
|
|
|
|
166
|
|
|
|
|
189
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
J. Alexander's Holdings, Inc. and Subsidiaries
|
|
Non-GAAP Financial Measures and Reconciliations
|
|
(Unaudited in thousands)
|
|
|
|
|
|
|
|
Non-GAAP Financial Measures
|
|
Within this press release, we present the following non-GAAP
financial measures which we believe are useful to investors as key
measures of our operating performance:
|
|
|
|
|
|
|
|
We define Adjusted Earnings Before Interest, Taxes, Depreciation
and Amortization, or “Adjusted EBITDA”, as net income (loss)
before interest expense, income tax expense (benefit),
depreciation and amortization, and adding asset impairment charges
and restaurant closing costs, loss on disposals of fixed assets,
transaction and integration costs, non-cash compensation, loss
from discontinued operations, gain on debt extinguishment and
pre-opening costs.
|
|
|
|
|
|
|
|
Adjusted EBITDA is a non-GAAP financial measure that we believe is
useful to investors because it provides information regarding
certain financial and business trends relating to our operating
results and excludes certain items that are not indicative of our
operations. Adjusted EBITDA does not fully consider the impact of
investing or financing transactions as it specifically excludes
depreciation and interest charges, which should also be considered
in the overall evaluation of our results of operations.
|
|
|
|
|
|
|
|
We define “Restaurant Operating Profit” as net sales less
restaurant operating costs, which are cost of sales, restaurant
labor and related costs, depreciation and amortization of
restaurant property and equipment, and other operating expenses.
Restaurant Operating Profit is a non-GAAP financial measure that
we believe is useful to investors because it provides a measure of
profitability for evaluation that does not reflect corporate
overhead and other non-operating or unusual costs. “Restaurant
Operating Profit Margin” is the ratio of Restaurant Operating
Profit to net sales.
|
|
|
|
|
|
|
|
Our management uses Adjusted EBITDA and Restaurant Operating
Profit to evaluate the effectiveness of our business strategies.
We caution investors that amounts presented in accordance with the
above definitions of Adjusted EBITDA or Restaurant Operating
Profit may not be comparable to similar measures disclosed by
other companies, because not all companies calculate these
non-GAAP financial measures in the same manner. Adjusted EBITDA
and Restaurant Operating Profit should not be assessed in
isolation from, or construed as a substitute for, net income,
operating income or other measures presented in accordance with
GAAP.
|
|
|
|
|
|
|
|
A reconciliation of these non-GAAP financial measures to the closest
GAAP measure is set forth in the following tables:
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
|
|
April 1
|
|
April 2
|
|
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
Net income
|
|
$
|
1,593
|
|
|
$
|
2,684
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
138
|
|
|
|
844
|
|
Interest expense
|
|
|
174
|
|
|
|
174
|
|
Depreciation and amortization
|
|
|
2,653
|
|
|
|
2,462
|
|
|
|
|
|
|
|
EBITDA
|
|
|
4,558
|
|
|
|
6,164
|
|
|
|
|
|
|
|
Transaction and integration expenses
|
|
|
926
|
|
|
|
-
|
|
Loss on disposal of fixed assets
|
|
|
58
|
|
|
|
34
|
|
Asset impairment charges and restaurant closing costs
|
|
|
(2
|
)
|
|
|
106
|
|
Non-cash compensation
|
|
|
2,174
|
|
|
|
308
|
|
Loss from discontinued operations, net
|
|
|
111
|
|
|
|
113
|
|
Pre-opening expenses
|
|
|
326
|
|
|
|
876
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
$
|
8,151
|
|
|
$
|
7,601
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: For purposes of computing Adjusted EBITDA, the $1,907 and
($39) for the quarters ended April 1, 2018 and April 2, 2017,
respectively, in non-cash compensation associated with a profits
interest grant issued to Black Knight Advisory Services, LLC
("BKAS") on October 6, 2015 has been included in "Non-cash
compensation" above. Additional expenses associated with the
Company's management agreement with BKAS totaling $244 and $265
for the quarters ended April 1, 2018 and April 2, 2017,
respectively, are included in general and administrative expenses
and have not been included in the reconciliation set forth above.
|
|
|
|
J. Alexander's Holdings, Inc. and Subsidiaries
|
|
Non-GAAP Financial Measures and Reconciliations
|
|
(Unaudited in thousands)
|
|
|
|
|
Quarter Ended
|
|
|
|
|
April 1
|
|
|
April 2
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
Amount
|
|
|
Percent of Net
Sales
|
|
|
Amount
|
|
|
Percent of Net
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
$
|
2,058
|
|
|
3.3
|
%
|
|
|
$
|
3,794
|
|
|
6.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative expenses
|
|
|
|
6,525
|
|
|
10.5
|
%
|
|
|
|
4,828
|
|
|
8.1
|
%
|
|
Transaction and integration expenses
|
|
|
|
926
|
|
|
1.5
|
%
|
|
|
|
-
|
|
|
0.0
|
%
|
|
Pre-opening expenses
|
|
|
|
326
|
|
|
0.5
|
%
|
|
|
|
876
|
|
|
1.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restaurant Operating Profit
|
|
|
$
|
9,835
|
|
|
15.9
|
%
|
|
|
$
|
9,498
|
|
|
15.9
|
%
|
