LEBANON,
Tenn., Sept. 19, 2024 /PRNewswire/ --
Cracker Barrel Old Country Store, Inc. ("Cracker Barrel" or the
"Company") (Nasdaq: CBRL) today reported its financial results
for the fourth quarter of fiscal 2024 ended August 2, 2024. In 2024, the fourth quarter and
fiscal year included an additional operating week ("53rd
week") compared to fiscal 2023.
Fourth Quarter Fiscal 2024 Highlights
- The Company reported total revenue of $894.4 million for the fourth quarter of fiscal
2024, representing an increase of 6.9% compared to prior year
quarter total revenue of $836.7
million. Total revenue for the fourth quarter of fiscal 2024
includes a benefit of $62.8 million
related to the 53rd week.
- Comparable store restaurant sales increased 0.4% over the prior
year quarter while comparable store retail sales decreased
4.2%.
- GAAP earnings per diluted share were $0.81, and adjusted1 earnings per
diluted share were $0.98. GAAP
earnings per diluted share and adjusted earnings per diluted share
in the current year quarter include a benefit of $0.25 related to the 53rd week.
- GAAP net income for the fourth quarter was $18.1 million, or 2.0% of total revenue, and
adjusted EBITDA1 was $57.4
million, or 6.4% of total revenue. GAAP net income and
adjusted EBITDA1 include a benefit of $5.5 million and $5.8
million related to the 53rd week,
respectively.
Commenting on the fourth quarter and full year results, Cracker
Barrel President and Chief Executive Officer Julie Masino said, "Our teams are highly engaged
and intently focused on executing our strategic transformation and
our day-to-day business at a high level. We are already making
great progress and are encouraged by the initial results of key
initiatives such as operational excellence and the guest
experience, optimized pricing, and our remodel program. Although
there is much work to be done, I am both excited and confident in
our future."
Fourth Quarter Fiscal 2024
Results
Revenue
The Company reported total
revenue of $894.4 million for the
fourth quarter of fiscal 2024, representing an increase of 6.9%
compared to prior year quarter total revenue of $836.7 million. Total revenue for the fourth
quarter of fiscal 2024 includes a benefit of $62.8 million related to the 53rd
week.
Cracker Barrel comparable store restaurant sales increased 0.4%,
including total menu pricing increases of 4.2%. Comparable store
retail sales decreased 4.2% from the prior year quarter.
Net Income, EBITDA, and Earnings per Diluted
Share
GAAP net income for the fourth quarter was
$18.1 million, or 2.0% of total
revenue, as compared to prior year fourth quarter GAAP net income
of $37.5 million, or 4.5% of total
revenue. Adjusted1 net income for the fourth quarter was
$22.0 million, or 2.5% of total
revenue, as compared to prior year quarter adjusted1 net
income of $37.5 million, or 4.5% of
total revenue. GAAP and adjusted net income in the current year
quarter include a benefit of $5.5
million related to the 53rd week.
Adjusted EBITDA1 was $57.4
million, or 6.4% of total revenue, as compared to prior year
quarter adjusted EBITDA1 of $70.4 million, or 8.4% of total revenue. Adjusted
EBITDA1 in the current year quarter includes a benefit
of $5.8 million related to the
53rd week.
GAAP earnings per diluted share for the fourth quarter were
$0.81, as compared to prior year
fourth quarter GAAP earnings per diluted share of $1.68. Adjusted1 earnings per
diluted share were $0.98, a
42% decrease compared to the prior year quarter
adjusted1 earnings per diluted share of $1.68. GAAP and
adjusted1 earnings per diluted share in the current
year quarter include a benefit of $0.25 related to the 53rd week.
Quarterly Dividend Declaration
The Company announced
that its Board of Directors declared a quarterly dividend of
$0.25 per share on the Company's
common stock. The quarterly dividend is payable on November 13, 2024 to shareholders of record as of
October 18, 2024.
Fiscal 2024 Results
Revenue
The Company reported total revenue of $3.47
billion for fiscal 2024, representing an increase of 0.8%
compared to fiscal 2023 total revenue of $3.44 billion. Total revenue in fiscal 2024
includes a benefit of $62.8 million
related to the 53rd week.
Cracker Barrel comparable store restaurant sales decreased 0.1%,
including total menu pricing increases of 4.9%. Comparable store
retail sales decreased 5.5% from the prior year.
Net Income, EBITDA, and Earnings per Diluted
Share
GAAP net income for fiscal 2024 was $40.9 million, or 1.2% of total revenue, as
compared to prior year GAAP net income of $99.1 million, or 2.9% of total revenue.
Adjusted1 net income for the fiscal year was
$78.5 million, or 2.3% of total
revenue, as compared to prior year adjusted1 net income
of $112.1 million, or 3.3% of total
revenue. Adjusted1 net income in fiscal 2024 includes a
benefit of $5.5 million related to
the 53rd week.
Adjusted EBITDA1 was $211.6
million, or 6.1% of total revenue, as compared to prior year
adjusted EBITDA1 of $251.2
million, or 7.3% of total revenue. Adjusted
EBITDA1 in the current year includes a benefit of
$5.8 million related to the
53rd week.
GAAP earnings per diluted share for fiscal 2024 were
$1.83, as compared to prior year GAAP
earnings per diluted share of $4.45.
Adjusted1 earnings per diluted share were
$3.52, a 30% decrease compared
to prior year adjusted1 earnings per diluted share of
$5.04. GAAP and
adjusted1 earnings per diluted share in the current
year include a benefit of $0.25
related to the 53rd week.
Fiscal 2025 Outlook
The Company provided the following
outlook for fiscal 2025:
- Total revenue of $3.4 billion to
$3.5 billion
- 2 new Cracker Barrel stores and 3 to 4 new Maple Street Biscuit
Company units
- Commodity inflation of 2% to 3% compared to the prior year
- Hourly wage inflation of 3% to 4% compared to the prior
year
- Adjusted EBITDA1 of $200
million to $215 million
- Capital expenditures of $160
million to $180 million
The Company reminds investors that its outlook reflects a number
of assumptions, many of which are outside the Company's
control. In particular, uncertainties created by
macroeconomic conditions, such as ongoing inflation, low consumer
confidence and high interest rates may adversely affect consumer
behavior and cause actual results to differ materially from those
expected.
1 Adjusted net income,
adjusted EBITDA and adjusted earnings per diluted share, as well as
the 53rd week impact of these items, are non-GAAP
financial measures. For definitions of these non-GAAP measures and
reconciliations of these non-GAAP measures to the most directly
comparable GAAP measures, please refer to the Reconciliation of
GAAP-Basis Operating Results to Non-GAAP Operating Results section
of this release.
2 The Company provides guidance
focused on adjusted EBITDA because the Company believes it will be
more useful to investors to evaluate the Company's performance
prior to the impact of depreciation (given the expected increase in
investments and the resulting higher expected depreciation
expense), taxes, closure and impairment charges, and other items
that management believes are not reflective of the Company's
current operations. The Company is not able to reconcile the
forward-looking estimate of adjusted EBITDA set forth above to a
forward-looking estimate of net income, the most directly
comparable estimated measure calculated in accordance with GAAP,
without unreasonable efforts because the Company is unable to
predict, forecast or determine the probable significance of certain
items impacting these estimates, including interest expense, taxes,
closure and impairment charges and share-based compensation, with a
reasonable degree of accuracy. Accordingly, the most directly
comparable forward-looking GAAP estimate is not
provided.
Fiscal 2024 Fourth Quarter Conference Call
As
previously announced, the live broadcast of Cracker Barrel's
quarterly conference call will be available to the public online at
investor.crackerbarrel.com today beginning at 11:00 a.m. (ET). The online replay will be
available at 2:00 p.m. (ET) and
continue through October 3, 2024.
About Cracker Barrel Old Country
Store®
Cracker Barrel Old Country Store,
Inc. (Nasdaq: CBRL) is on a mission to bring craveable, delicious
homestyle food and unique retail products to all guests while
serving up memorable, distinctive experiences that make everyone
feel welcome. Established in 1969 in Lebanon, Tenn., Cracker Barrel and its
affiliates operate approximately 660 company-owned Cracker Barrel
Old Country Store® locations in 44 states and own the fast-casual
Maple Street Biscuit Company. For more information about the
company, visit www.crackerbarrel.com.
CBRL-F
Except for specific historical information, certain of the
matters discussed in this press release may express or imply
projections of items such as revenues or expenditures, statements
of plans and objectives or future operations or statements of
future economic performance. These and similar statements regarding
events or results that the Company expects will or may occur in the
future are forward-looking statements concerning matters that
involve risks, uncertainties and other factors which may cause the
actual results and performance of the Company to differ materially
from those expressed or implied by such forward-looking statements.
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 risks,
uncertainties and other factors. Forward-looking statements
generally can be identified by the use of forward-looking
terminology such as "trends," "assumptions," "target," "guidance,"
"outlook," "opportunity," "future," "plans," "goals," "objectives,"
"expectations," "near-term," "long-term," "projection," "may,"
"will," "would," "could," "expect," "intend," "estimate,"
"anticipate," "believe," "potential," "regular," "should,"
"projects," "forecasts," or "continue" (or the negative or other
derivatives of each of these terms) or similar terminology.
The Company believes that the assumptions underlying any
forward-looking statements are reasonable; however, any of the
assumptions could be inaccurate, and therefore, actual results may
differ materially from those projected in or implied by the
forward-looking statements. In addition to the risks of
ordinary business operations, factors and risks that may result in
actual results differing from this forward-looking information
include, but are not limited to risks and uncertainties associated
with inflationary conditions with respect to the price of
commodities, ingredients, transportation, distribution and labor;
disruptions to the Company's restaurant or retail supply chain; the
Company's ability to manage retail inventory and merchandise mix;
the Company's ability to sustain or the effects of plans intended
to improve operational or marketing execution and performance,
including the Company's strategic transformation plan; the effects
of increased competition at the Company's locations on sales and on
labor recruiting, cost, and retention; consumer behavior based on
negative publicity or changes in consumer health or dietary trends
or safety aspects of the Company's food or products or those of the
restaurant industry in general, including concerns about outbreaks
of infectious disease; the effects of the Company's indebtedness
and associated restrictions on the Company's financial and
operating flexibility and ability to execute or pursue its
operating plans and objectives; changes in interest rates,
increases in borrowed capital or capital market conditions
affecting the Company's financing costs and ability to refinance
its indebtedness, in whole or in part; the Company's reliance on a
single distribution facility and certain significant vendors,
particularly for foreign-sourced retail products; information
technology disruptions and data privacy and information security
breaches, whether as a result of infrastructure failures, employee
or vendor errors or actions of third parties; the Company's
compliance with privacy and data protection laws; changes in or
implementation of additional governmental or regulatory rules,
regulations and interpretations affecting tax, health and safety,
animal welfare, pensions, insurance or other undeterminable areas;
the actual results of pending, future or threatened litigation or
governmental investigations; or the Company's ability to manage the
impact of negative social media attention and the costs and effects
of negative publicity; the impact of activist shareholders;
the Company's ability to achieve aspirations, goals and
projections related to its environmental, social and governance
initiatives; the Company's ability to enter successfully into new
geographic markets that may be less familiar to it; changes in
land, building materials and construction costs; the availability
and cost of suitable sites for restaurant development and the
Company's ability to identify those sites; the Company's ability to
retain key personnel; the ability of and cost to the Company to
recruit, train, and retain qualified hourly and management
employees; uncertain performance of acquired businesses, strategic
investments and other initiatives that the Company may pursue from
time to time; the effects of business trends on the outlook for
individual restaurant locations and the effect on the carrying
value of those locations; general or regional economic weakness,
business and societal conditions and the weather impact on sales
and customer travel; discretionary income or personal expenditure
activity of the Company's customers; implementation of new or
changes in interpretation of existing accounting principles
generally accepted in the United States
of America ("GAAP"); and other factors described from time
to time in the Company's filings with the Securities and Exchange
Commission, press releases, and other communications. Any
forward-looking statement made by the Company herein, or elsewhere,
speaks only as of the date on which made. The Company expressly
disclaims any intent, obligation or undertaking to update or revise
any forward-looking statements made herein to reflect any change in
the Company's expectations with regard thereto or any change in
events, conditions or circumstances on which any such statements
are based.
CRACKER BARREL OLD
COUNTRY STORE, INC.
CONDENSED
CONSOLIDATED INCOME STATEMENT
(Unaudited)
(In thousands,
except share and per share amounts, percentages and
ratios)
|
|
|
|
|
Fourth Quarter
Ended
|
|
Twelve Months
Ended
|
|
|
8/2/2024
|
7/28/2023
|
Percentage
Change
|
|
8/2/2024
|
7/28/2023
|
Percentage
Change
|
Total
revenue
|
$894,387
|
$836,732
|
7 %
|
|
$3,470,762
|
$3,442,808
|
1 %
|
|
Cost of goods sold
(exclusive of depreciation & rent)
|
272,151
|
257,331
|
6
|
|
1,087,631
|
1,127,617
|
(4)
|
|
Labor and other related
expenses
|
335,121
|
305,111
|
10
|
|
1,271,555
|
1,208,669
|
5
|
|
Other store operating
expenses
|
213,632
|
195,368
|
9
|
|
831,763
|
797,815
|
4
|
|
General and
administrative expenses
|
51,267
|
37,576
|
36
|
|
207,062
|
174,091
|
19
|
|
Impairment and store
closing costs
|
0
|
109
|
(100)
|
|
22,942
|
13,999
|
64
|
|
Goodwill
impairment
|
0
|
0
|
|
|
4,690
|
0
|
|
|
Operating
income
|
22,216
|
41,237
|
(46)
|
|
45,119
|
120,617
|
(63)
|
|
Interest
expense
|
5,741
|
4,530
|
27
|
|
20,933
|
17,006
|
23
|
|
Income before income
taxes
|
16,475
|
36,707
|
(55)
|
|
24,186
|
103,611
|
(77)
|
|
Provision for income
taxes (income tax benefit)
|
(1,664)
|
(755)
|
(120)
|
|
(16,744)
|
4,561
|
(467)
|
|
Net income
|
$18,139
|
$37,462
|
(52)
|
|
$40,930
|
$99,050
|
(59)
|
|
|
|
|
|
|
|
|
|
|
Earnings per share –
Basic:
|
$0.82
|
$1.69
|
(51)
|
|
$1.84
|
$4.47
|
(59)
|
|
Earnings per share –
Diluted:
|
$0.81
|
$1.68
|
(52)
|
|
$1.83
|
$4.45
|
(59)
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares:
|
|
|
|
|
|
|
|
|
Basic
|
22,202,464
|
22,152,445
|
0
|
|
22,191,961
|
22,167,875
|
0
|
|
Diluted
|
22,354,013
|
22,262,598
|
0
|
|
22,319,894
|
22,265,399
|
0
|
|
|
|
|
|
|
|
|
|
|
Ratio
Analysis
|
|
|
|
|
|
|
|
|
Total
revenue:
|
|
|
|
|
|
|
|
|
Restaurant
|
81.8 %
|
81.2 %
|
|
|
80.5 %
|
79.6 %
|
|
|
Retail
|
18.2
|
18.8
|
|
|
19.5
|
20.4
|
|
|
Total
revenue
|
100.0
|
100.0
|
|
|
100.0
|
100.0
|
|
|
Cost of goods sold
(exclusive of depreciation & rent)
|
30.4
|
30.8
|
|
|
31.3
|
32.8
|
|
|
Labor and other related
expenses
|
37.5
|
36.5
|
|
|
36.6
|
35.1
|
|
|
Other store operating
expenses
|
23.9
|
23.3
|
|
|
24.0
|
23.2
|
|
|
General and
administrative expenses
|
5.7
|
4.5
|
|
|
6.0
|
5.0
|
|
|
Impairment and store
closing costs
|
0.0
|
0.0
|
|
|
0.7
|
0.4
|
|
|
Goodwill
impairment
|
0.0
|
0.0
|
|
|
0.1
|
0.0
|
|
|
Operating
income
|
2.5
|
4.9
|
|
|
1.3
|
3.5
|
|
|
Interest
expense
|
0.7
|
0.5
|
|
|
0.6
|
0.5
|
|
|
Income before income
taxes
|
1.8
|
4.4
|
|
|
0.7
|
3.0
|
|
|
Provision for income
taxes (income tax benefit)
|
(0.2)
|
(0.1)
|
|
|
(0.5)
|
0.1
|
|
|
Net income
|
2.0 %
|
4.5 %
|
|
|
1.2 %
|
2.9 %
|
|
|
CRACKER BARREL OLD COUNTRY STORE,
INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited and in thousands, except share
amounts)
|
|
8/2/24
|
|
7/28/23
|
|
Assets
|
|
|
|
|
Cash and
cash equivalents
|
$12,035
|
|
$25,147
|
|
Accounts
receivable
|
39,204
|
|
30,446
|
|
Inventories
|
180,958
|
|
189,364
|
|
Prepaid
expenses and other current assets
|
46,017
|
|
37,330
|
|
Property
and equipment, net
|
959,821
|
|
971,945
|
|
Operating
lease right-of-use assets, net
|
850,835
|
|
889,306
|
|
Goodwill
|
0
|
|
4,690
|
|
Intangible
assets
|
24,425
|
|
23,426
|
|
Other
assets
|
48,199
|
|
46,440
|
|
Total assets
|
$2,161,494
|
|
$2,218,094
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
Accounts
payable
|
$162,288
|
|
$165,484
|
|
Other
current liabilities
|
291,919
|
|
323,482
|
|
Long-term
debt
|
476,581
|
|
414,904
|
|
Long-term
operating lease liabilities
|
675,993
|
|
702,413
|
|
Other
long-term obligations
|
114,564
|
|
127,986
|
|
Shareholders' equity, net
|
440,149
|
|
483,825
|
|
Total liabilities and shareholders' equity
|
$2,161,494
|
|
$2,218,094
|
|
|
|
|
|
|
Common shares issued
and outstanding
|
22,203,043
|
|
22,153,625
|
|
CRACKER BARREL OLD
COUNTRY STORE, INC.
CONDENSED
CONSOLIDATED CASH FLOW STATEMENT
(Unaudited and in
thousands)
|
|
Twelve Months
Ended
|
|
8/2/24
|
|
7/28/23
|
Cash flows from
operating activities:
|
|
|
|
Net income
|
$40,930
|
|
$99,050
|
Depreciation and amortization
|
111,746
|
|
104,485
|
Amortization of debt issuance costs
|
1,752
|
|
1,730
|
Loss on disposition of property and equipment
|
9,143
|
|
6,600
|
Impairment
|
17,448
|
|
11,692
|
Goodwill
impairment
|
4,690
|
|
0
|
Share-based compensation
|
10,298
|
|
9,045
|
Noncash lease expense
|
59,523
|
|
59,767
|
Amortization of asset recognized from gain on sale and leaseback
transaction
|
12,735
|
|
12,735
|
Decrease in inventories
|
8,406
|
|
23,885
|
Decrease in accounts payable
|
(3,196)
|
|
(4,387)
|
Net changes in other assets and liabilities
|
(104,495)
|
|
(74,145)
|
Net cash provided by operating activities
|
168,980
|
|
250,457
|
Cash flows from
investing activities:
|
|
|
|
Purchase of property and equipment, net of insurance
recoveries
|
(127,461)
|
|
(125,387)
|
Proceeds from sale of property and equipment
|
3,134
|
|
1,068
|
Net cash used in investing activities
|
(124,327)
|
|
(124,319)
|
Cash flows from
financing activities:
|
|
|
|
Net proceeds (payments) under long-term debt
|
59,925
|
|
(10,124)
|
Taxes withheld from issuance of share-based compensation
awards
|
(1,608)
|
|
(2,448)
|
Purchases and retirement of common stock
|
0
|
|
(17,449)
|
Dividends on common stock
|
(116,082)
|
|
(116,075)
|
Net cash used in financing activities
|
(57,765)
|
|
(146,096)
|
|
|
|
|
Net decrease in cash
and cash equivalents
|
(13,112)
|
|
(19,958)
|
Cash and cash
equivalents, beginning of period
|
25,147
|
|
45,105
|
Cash and cash
equivalents, end of period
|
$12,035
|
|
$25,147
|
|
|
|
|
CRACKER BARREL OLD
COUNTRY STORE, INC.
Supplemental
Information
(Unaudited)
|
|
|
Fourth Quarter
Ended
|
|
|
8/2/24
|
|
7/28/23
|
|
Net Change in
Company-Owned Stores During Quarter:
|
|
|
|
|
Cracker Barrel
|
0
|
|
(1)
|
|
Maple Street Biscuit
Company
|
3
|
|
3
|
|
Company-Owned Stores in
Operation at End of Quarter:
|
|
|
|
|
Cracker Barrel
|
658
|
|
660
|
|
Maple Street Biscuit
Company
|
66
|
|
59
|
|
|
Fourth Quarter
Ended
|
|
Twelve Months
Ended
|
|
8/2/24
|
|
7/28/23
|
|
8/2/24
|
|
7/28/23
|
Total revenue*: (In
thousands)
|
|
|
|
|
|
|
|
Restaurant
|
$713,018
|
|
$663,265
|
|
$2,726,627
|
|
$2,678,685
|
Retail
|
162,728
|
|
157,405
|
|
675,709
|
|
701,563
|
Total
revenue
|
$875,746
|
|
$820,670
|
|
$3,402,336
|
|
$3,380,248
|
|
|
|
|
|
|
|
|
Cost of goods sold*
(exclusive of depreciation and rent): (In thousands)
|
|
|
|
|
|
|
|
Restaurant
|
$185,917
|
|
$176,790
|
|
$726,470
|
|
$754,131
|
Retail
|
81,568
|
|
76,717
|
|
343,998
|
|
358,054
|
Total cost of goods
sold
|
$267,485
|
|
$253,507
|
|
$1,070,468
|
|
$1,112,185
|
|
|
|
|
|
|
|
|
Average store
volume*: (In thousands)
|
|
|
|
|
|
|
|
Restaurant
|
$1,083.6
|
|
$1,004.9
|
|
$4,133.0
|
|
$4,040.2
|
Retail
|
247.3
|
|
238.5
|
|
1,024.3
|
|
1,058.2
|
Total
|
$1,330.9
|
|
$1,243.4
|
|
$5,157.3
|
|
$5,098.4
|
Operating
weeks*:
|
9,212
|
|
8,580
|
|
34,965
|
|
34,476
|
|
|
|
|
|
|
|
|
|
Note*: This information
is for Cracker Barrel stores only and excludes Maple Street Biscuit
Company. The fourth quarter and twelve months ended 8/2/24 include
a 14th and 53rd week,
respectively.
|
CRACKER BARREL OLD COUNTRY STORE,
INC.
Reconciliation of GAAP-Basis Operating Results to
Non-GAAP Operating Results
(Unaudited and in thousands,
except per share amounts)
Adjusted Net Income and Earnings Per Share
In the
accompanying press release, the Company makes reference to its
fourth quarter fiscal 2023 and fiscal 2024 adjusted net income and
earnings per share, as well as the 53rd week impact of
these items. The Company defines adjusted net income as net income,
calculated in accordance with GAAP, excluding, to the extent the
following items occurred during the periods presented: (i)
impairment charges and store closing costs, (ii) expenses related
to the proxy contest and settlement in connection with the
Company's 2022 annual meeting of shareholders, (iii) expenses
related to the Company's CEO transition, (iv) expenses associated
with the Company's strategic transformation initiative, (v) a
corporate restructuring charge, (vi) an employee benefits policy
change, (vii) goodwill impairment charges, and (viii) the related
tax impacts of the foregoing. The Company believes excluding these
items and presenting the 53rd week impact of these items
from its financial results provides investors with an enhanced
understanding of the Company's financial results and enhances
comparability across periods. The Company calculates adjusted net
income margin by dividing adjusted net income by consolidated GAAP
revenue. This information is not intended to be considered in
isolation or as a substitute for net income or earnings per share
information prepared in accordance with GAAP.
|
|
|
Fourth Quarter Ended
8/2/24
|
Margin
|
53rd Week
Impact
|
|
Fourth Quarter Ended
7/28/23
|
Margin
|
Revenue
|
$894,387
|
100.0 %
|
$62,800
|
|
$836,732
|
100.0 %
|
|
|
|
|
|
|
|
GAAP Net
Income
|
$18,139
|
2.0 %
|
$5,498
|
|
$37,462
|
4.5 %
|
Expenses related to the
Company's CEO transition
|
0
|
0.0 %
|
0
|
|
0
|
0.0 %
|
Expenses associated
with a strategic transformation initiative
|
5,057
|
0.6 %
|
0
|
|
0
|
0.0 %
|
Employee benefits
policy change
|
0
|
0.0 %
|
0
|
|
0
|
0.0 %
|
Corporate restructuring
charge
|
0
|
0.0 %
|
0
|
|
0
|
0.0 %
|
Expenses related to the
proxy contest and settlement in connection with the Company's 2022
annual meeting of shareholders
|
0
|
0.0 %
|
0
|
|
0
|
0.0 %
|
Impairment and store
closing costs
|
0
|
0.0 %
|
0
|
|
0
|
0.0 %
|
Goodwill
Impairment
|
0
|
0.0 %
|
0
|
|
0
|
0.0 %
|
Tax impacts of the
foregoing
|
(1,188)
|
(0.1 %)
|
0
|
|
0
|
0.0 %
|
Adjusted Net
Income
|
$22,008
|
2.5 %
|
$5,498
|
|
$37,462
|
4.5 %
|
|
|
|
|
|
|
|
Earnings per share -
basic
|
$0.82
|
|
$0.25
|
|
$1.69
|
|
Earnings per share -
diluted
|
$0.81
|
|
$0.25
|
|
$1.68
|
|
|
|
|
|
|
|
|
Adjusted Earnings per
share - basic
|
$0.99
|
|
$0.25
|
|
$1.69
|
|
Adjusted Earnings per
share - diluted
|
$0.98
|
|
$0.25
|
|
$1.68
|
|
|
|
|
|
|
|
|
Weighted average shares
- basic
|
22,202,464
|
|
22,202,464
|
|
22,152,445
|
|
Weighted average shares
- diluted
|
22,354,013
|
|
22,354,013
|
|
22,262,598
|
|
CRACKER BARREL OLD COUNTRY STORE,
INC.
Reconciliation of GAAP-Basis Operating Results to
Non-GAAP Operating Results
(Unaudited and in thousands,
except per share amounts)
Adjusted Net Income and Earnings Per Share
In the
accompanying press release, the Company makes reference to its
fourth quarter fiscal 2023 and fiscal 2024 adjusted net income and
earnings per share, as well as the 53rd week impact of
these items. The Company defines adjusted net income as net income,
calculated in accordance with GAAP, excluding, to the extent the
following items occurred during the periods presented: (i)
impairment charges and store closing costs, (ii) expenses related
to the proxy contest and settlement in connection with the
Company's 2022 annual meeting of shareholders, (iii) expenses
related to the Company's CEO transition, (iv) expenses associated
with the Company's strategic transformation initiative, (v) a
corporate restructuring charge, (vi) an employee benefits policy
change, (vii) goodwill impairment charges, and (viii) the related
tax impacts of the foregoing. The Company believes excluding these
items and presenting the 53rd week impact of these items
from its financial results provides investors with an enhanced
understanding of the Company's financial results and enhances
comparability across periods. The Company calculates adjusted net
income margin by dividing adjusted net income by consolidated GAAP
revenue. This information is not intended to be considered in
isolation or as a substitute for net income or earnings per share
information prepared in accordance with GAAP.
|
|
|
Twelve Months Ended
8/2/24
|
Margin
|
53rd Week
Impact
|
|
Twelve Months Ended
7/28/23
|
Margin
|
Revenue
|
$3,470,762
|
100.0 %
|
$62,800
|
|
$3,442,808
|
100.0 %
|
|
|
|
|
|
|
|
GAAP Net
Income
|
$40,930
|
1.2 %
|
$5,498
|
|
$99,050
|
2.9 %
|
Expenses related to the
Company's CEO transition
|
8,574
|
0.2 %
|
0
|
|
0
|
0.0 %
|
Expenses associated
with a strategic transformation initiative
|
16,603
|
0.5 %
|
0
|
|
0
|
0.0 %
|
Employee benefits
policy change
|
(5,284)
|
(0.2 %)
|
0
|
|
0
|
0.0 %
|
Corporate restructuring
charge
|
1,643
|
0.0 %
|
0
|
|
0
|
0.0 %
|
Expenses related to the
proxy contest and settlement in connection with the Company's 2022
annual meeting of shareholders
|
0
|
0.0 %
|
0
|
|
3,198
|
0.1 %
|
Impairment and store
closing costs
|
22,942
|
0.7 %
|
0
|
|
13,890
|
0.4 %
|
Goodwill
Impairment
|
4,690
|
0.1 %
|
0
|
|
0
|
0.0 %
|
Tax impacts of the
foregoing
|
(11,554)
|
(0.3 %)
|
0
|
|
(4,016)
|
(0.1 %)
|
Adjusted Net
Income
|
$78,544
|
2.3 %
|
$5,498
|
|
$112,122
|
3.3 %
|
|
|
|
|
|
|
|
Earnings per share -
basic
|
$1.84
|
|
$0.25
|
|
$4.47
|
|
Earnings per share -
diluted
|
$1.83
|
|
$0.25
|
|
$4.45
|
|
|
|
|
|
|
|
|
Adjusted Earnings per
share - basic
|
$3.54
|
|
$0.25
|
|
$5.06
|
|
Adjusted Earnings per
share - diluted
|
$3.52
|
|
$0.25
|
|
$5.04
|
|
|
|
|
|
|
|
|
Weighted average shares
- basic
|
22,191,961
|
|
22,191,961
|
|
22,167,875
|
|
Weighted average shares
- diluted
|
22,319,894
|
|
22,319,894
|
|
22,265,399
|
|
CRACKER BARREL OLD COUNTRY STORE,
INC.
Reconciliation of GAAP-Basis Operating Results to
Non-GAAP Operating Results
(Unaudited and in
thousands)
EBITDA/Adjusted EBITDA
In the accompanying press
release and the below reconciliation tables, the Company makes
reference to EBITDA and adjusted EBITDA, as well as the
53rd week impact of these items. The Company defines
EBITDA as net income, calculated in accordance with GAAP, excluding
depreciation and amortization, interest expense and tax expense.
The Company further adjusts EBITDA to exclude, to the extent the
following items occurred during the periods presented: (i) expenses
related to share-based compensation, (ii) impairment charges and
store closing costs, (iii) the proxy contest and settlement in
connection with the Company's 2022 annual meeting of shareholders,
(iv) goodwill impairment charges, (v) the Company's CEO transition,
(vi) expenses associated with the Company's strategic
transformation initiative, (vii) a corporate restructuring charge,
and (viii) an employee benefits policy change. The Company
calculates EBITDA and adjusted EBITDA margin by dividing EBITDA and
adjusted EBITDA by consolidated GAAP revenue. The Company believes
that presentation of EBITDA and adjusted EBITDA (together with
related margin figures) and presenting the 53rd week
impact of these items provides investors with an enhanced
understanding of the Company's operating performance and debt
leverage metrics and enhances comparability with the Company's
historical results, and that the presentation of this non-GAAP
financial measure, when combined with the primary presentation of
net income, is beneficial to an investor's complete understanding
of the Company's operating performance. This information is not
intended to be considered in isolation or as a substitute for net
income or net income margin prepared in accordance with GAAP.
|
Fourth Quarter Ended
8/2/24
|
Margin
|
53rd Week
Impact
|
|
Twelve Months Ended
8/2/24
|
Margin
|
53rd Week
Impact
|
Revenue
|
$894,387
|
100.0 %
|
$62,800
|
|
$3,470,762
|
100.0 %
|
$62,800
|
|
|
|
|
|
|
|
|
GAAP Net
Income
|
18,139
|
2.0 %
|
$5,498
|
|
40,930
|
1.2 %
|
$5,498
|
(+) Depreciation
& amortization
|
28,981
|
3.2 %
|
0
|
|
111,746
|
3.2 %
|
0
|
(+) Interest
expense
|
5,741
|
0.6 %
|
402
|
|
20,933
|
0.6 %
|
402
|
(+) Income tax
benefit
|
(1,664)
|
(0.2 %)
|
(119)
|
|
(16,744)
|
(0.5 %)
|
(119)
|
EBITDA
|
$51,197
|
5.7 %
|
$5,781
|
|
$156,865
|
4.5 %
|
$5,781
|
Adjustments
|
|
|
|
|
|
|
|
(+) CEO
transition expenses
|
0
|
0.0 %
|
0
|
|
8,574
|
0.2 %
|
0
|
(+) Strategic
transformation initiative expenses
|
5,057
|
0.6 %
|
0
|
|
16,603
|
0.5 %
|
0
|
(+) Corporate
restructuring charge including separation with executive
|
0
|
0.0 %
|
0
|
|
1,643
|
0.0 %
|
0
|
(+) Share-based
compensation, net
|
1,109
|
0.1 %
|
0
|
|
5,584
|
0.2 %
|
0
|
(-) Employee
benefits policy change
|
0
|
0.0 %
|
0
|
|
(5,284)
|
(0.2 %)
|
0
|
(+) Impairment
and store closing costs
|
0
|
0.0 %
|
0
|
|
22,942
|
0.7 %
|
0
|
(+) Goodwill
impairment
|
0
|
0.0 %
|
0
|
|
4,690
|
0.1 %
|
0
|
Adjusted
EBITDA
|
$57,363
|
6.4 %
|
$5,781
|
|
$211,617
|
6.1 %
|
$5,781
|
|
Fourth Quarter Ended
7/28/23
|
Margin
|
|
|
Twelve Months Ended
7/28/23
|
Margin
|
Revenue
|
$836,732
|
100 %
|
|
|
$3,442,808
|
100 %
|
|
|
|
|
|
|
|
GAAP Net
Income
|
37,462
|
4.5 %
|
|
|
99,050
|
2.9 %
|
(+) Depreciation
& amortization
|
27,680
|
3.3
|
|
|
104,485
|
3.0
|
(+) Interest
expense
|
4,530
|
0.5
|
|
|
17,006
|
0.5
|
(+) Income tax
benefit
|
(755)
|
(0.1)
|
|
|
4,561
|
0.1
|
EBITDA
|
68,917
|
8.2 %
|
|
|
$225,102
|
6.5 %
|
Adjustments
|
|
|
|
|
|
|
(+) Share-based
compensation
|
1,460
|
0.2 %
|
|
|
9,045
|
0.3 %
|
(+) Impairment
and store closing costs
|
0
|
0.0
|
|
|
13,890
|
0.4
|
(+) Proxy contest
and settlement expenses
|
0
|
0.0
|
|
|
3,198
|
0.1
|
Adjusted
EBITDA
|
$70,377
|
8.4 %
|
|
|
$251,235
|
7.3 %
|
Investor
Contact:
|
Adam Hanan
|
|
(615)
443-9887
|
Media Contact:
|
Heidi Pearce
|
|
(615)
235-4135
|
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SOURCE Cracker Barrel Old Country Store, Inc.