8-K
CRACKER BARREL OLD COUNTRY STORE, INC (CBRL)
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): September 21, 2021
CRACKER BARREL OLD COUNTRY STORE, INC.
(Exact Name of Registrant as Specified in its Charter)
| Tennessee | 001-25225 | 62-0812904 |
|---|---|---|
| (State or Other Jurisdiction<br><br> <br>of Incorporation) | (Commission File Number) | (IRS Employer<br><br> <br>Identification No.) |
305Hartmann Drive, Lebanon, Tennessee 37087
(Address of Principal Executive Offices) (Zip code)
(615) 444-5533
(Registrant’s Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| --- | --- |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| --- | --- |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| --- | --- |
Securities registered pursuant to Section 12(b) of the Act:
| Title<br> of each class | Trading<br> Symbol(s) | Name<br> of each exchange on which <br><br> registered |
|---|---|---|
| Common Stock (Par Value $0.01) Rights to Purchase Series A Junior Participating Preferred Stock (Par Value $0.01) | CBRL | The Nasdaq Stock Market LLC<br><br>(Nasdaq Global Select Market) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Item 2.02. Results of Operations and Financial Condition.
On September 21, 2021, Cracker Barrel Old Country Store, Inc. (the “Company”) issued a press release (the “Press Release”) announcing the Company’s fiscal 2021 full year and fourth quarter results of operations and projected outlook of certain items for fiscal year 2022. A copy of the Press Release is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
| (d) | Exhibits. | |
|---|---|---|
| Exhibit No. | Description | |
| 99.1 | Press Release issued by Cracker Barrel Old Country Store, Inc. dated September 21, 2021. | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
| Date: <br>September 21, 2021 | CRACKER BARREL OLD COUNTRY STORE, INC. | |
|---|---|---|
| By: | /s/ Richard M. Wolfson | |
| Name: | Richard M. Wolfson | |
| Title: | Senior Vice President, General Counsel and Corporate Secretary |
Exhibit 99.1
| Investor Contact: | Jessica<br> Hazel |
|---|---|
| (615) 235-4367 | |
| Media Contact: | Heidi<br> Pearce |
| --- | --- |
| (615) 235-4135 |
CRACKER BARREL REPORTS FOURTH QUARTER AND FULLYEAR FISCAL 2021 RESULTS AND DECLARES QUARTERLY DIVIDEND
Board increases quarterly dividend to pre-pandemiclevel of $1.30 per share
LEBANON, Tenn.– September 21, 2021 – Cracker Barrel Old Country Store, Inc. (“Cracker Barrel” or the “Company”) (Nasdaq: CBRL) today reported its financial results for the fourth quarter of fiscal 2021 ended July 30, 2021.
Fourth Quarter Fiscal 2021 Highlights
| · | Total revenue in the fourth quarter of $784.4<br>million was approximately flat compared to the fourth quarter of fiscal 2019 total revenue of $787.1 million. |
|---|---|
| · | Compared to the fourth quarter of fiscal<br>2019^1^, comparable store restaurant sales decreased 6.8% and comparable store retail sales increased 18.2%. |
| --- | --- |
| o | Comparable store off-premise restaurant<br>sales grew 108.6% compared to the fourth quarter of 2019^1^ and represented approximately 19% of restaurant sales. |
| --- | --- |
| · | GAAP operating income in the fourth quarter<br>was $62.7 million, or 8.0% of total revenue, and adjusted^2^ operating income was $65.9 million, or 8.4% of total revenue. |
| --- | --- |
| · | GAAP net income was $36.4 million, or<br>4.6% of total revenue. EBITDA was $93.5 million, or 11.9% of total revenue, which represented a 30 basis point sequential improvement<br>compared to fiscal 2021 third quarter EBITDA margin. |
| --- | --- |
| · | GAAP earnings per diluted share were $1.53,<br>and adjusted^2^ earnings per diluted share were $2.25. |
| --- | --- |
| · | The Company announced that its Board of Directors declared a regular quarterly<br>dividend of $1.30 per share and authorized share repurchases up to $100 million of the Company’s outstanding common stock. |
| --- | --- |
Commenting on the fourth quarter results, Cracker Barrel President and Chief Executive Officer Sandra B. Cochran said, “Despite the well-known headwinds that the industry continues to face with respect to staffing, commodity and wage inflation, and the resurgence of the pandemic, we were pleased that our fourth quarter profitability continued to trend positively from the third quarter and that our off-premise sales, retail business, and Maple Street Biscuit Company concept continued to outperform. In addition to these strengths, our impressive field and home office support teams delivered on multiple fronts throughout the year, including cost-savings, the introduction of our new dinner menu and the continued roll-out of beer and wine to our stores, and helped ensure our continued recovery in 2021. I’m confident that these and other initiatives position us well for 2022 despite the uncertain environment.”
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Cracker Barrel Reports Fourth Quarter Fiscal 2021 Results
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September 21, 2021
Fourth Quarter Fiscal 2021 Results
Revenue
The Company reported total revenue of $784.4 million for the fourth quarter of fiscal 2021, representing an increase of 58.4% compared to the fourth quarter of fiscal 2020, and a decrease of 0.3% compared to the fourth quarter of 2019.
Cracker Barrel comparable store restaurant and retail sales compared to the fourth quarter of fiscal 2019^1^ and versus the fourth quarter of fiscal 2020 were as follows:
| Versus FY19 Comparable Period^1^ | Versus FY20<br> <br>Comparable Period | |||||
|---|---|---|---|---|---|---|
| Fourth Quarter Ended<br><br> 7/30/21 | Fourth Quarter Ended<br><br> 7/30/21 | |||||
| Comparable restaurant sales | -6.8 | % | 53.5 | % | ||
| Comparable retail sales | 18.2 | % | 74.8 | % |
Operating Income
GAAP operating income in the fourth quarter was $62.7 million, or 8.0% of total revenue. Excluding the approximately $3.2 million in non-cash amortization related to the gains on the previously disclosed sale and leaseback transactions adjusted^2^ operating income for the fourth quarter was $65.9 million, or 8.4% of total revenue.
Net Income, EBITDA and Earnings per DilutedShare
GAAP net income in the fourth quarter was $36.4 million, or 4.6% of total revenue, and EBITDA was $93.5 million, or 11.9% of total revenue. GAAP earnings per diluted share were $1.53, and adjusted^2^ earnings per diluted share were $2.25.
Convertible Debt Offering
As previously disclosed, during the fourth quarter the Company completed the private offering of $300 million of 0.625% convertible senior notes due 2026, which generated net proceeds of approximately $291 million.
The Company used approximately $30 million net, of the proceeds to fund the cost of entering into certain convertible note hedging transactions to minimize the risk of potential future dilution from the offering. The remainder of the proceeds were used to pay down debt under the Company’s revolving credit facility. The Company ended the fourth quarter with approximately $327 million in total debt.
The Company also paid approximately $18 million to terminate the interest rate swaps that it had been using to hedge interest rate risk on the debt outstanding under the Company’s revolving credit facility. We anticipate this action will result in savings on interest expense over the next two years.
In connection with the offering, the Company also repurchased $35 million of its common stock.
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Cracker Barrel Reports Fourth Quarter Fiscal 2021 Results
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September 21, 2021
Quarterly Dividend and Share RepurchaseAuthorization
The Company’s Board of Directors declared a quarterly dividend to common shareholders of $1.30 per share, payable on November 9, 2021 to shareholders of record on October 22, 2021. This dividend represents a return to the Company’s pre-pandemic quarterly dividend level. Additionally, the Board of Directors authorized share repurchases up to $100 million of the Company’s outstanding common stock.
Fiscal 2021 Results
Revenue
The Company reported total revenue of $2.81 billion for fiscal 2021, representing an increase of 11.8% compared to fiscal 2020 and a decrease of 8.2% compared to fiscal 2019. Comparable store restaurant sales for fiscal 2021 increased 8.4% compared to fiscal 2020, including a 5.3% increase in store traffic and a 3.1% increase in average check. Comparable store retail sales for fiscal 2021 increased 20.9% compared to fiscal 2020.
Operating Income
GAAP operating income in fiscal 2021 was $366.7 million, or 13.0% of total revenue, compared to $103.6 million, or 4.1% of total revenue, in fiscal 2020. Adjusted^2^ operating income for fiscal 2021 was $166.8 million.
Net Income, EBITDA and Earnings per DilutedShare
GAAP net income was $254.5 million, or 9.0% of total revenue, and EBITDA was $488.0 million, or 17.3% of total revenue, in fiscal 2021. Adjusted^2^ EBITDA was $275.4 million, or 9.8% of total revenue. GAAP earnings per diluted share were $10.71, and adjusted^2^ earnings per diluted share were $5.14.
Fiscal 2022 Outlook
As a result of the ongoing business impact and significant uncertainty created by the COVID-19 pandemic, including the nationwide increase in infections and responsive public health restrictions brought about by the rise of the “Delta variant” of the virus, the Company is not providing its customary annual earnings guidance for fiscal 2022 at this time.
For the full fiscal year 2022, the Company expects:
| § | Commodity and wage inflation in the mid-to-high single digits; |
|---|---|
| § | Capital expenditures of approximately $120 million; |
| --- | --- |
| § | An effective tax rate of approximately 18%; and |
| --- | --- |
| § | The opening of three new Cracker Barrel locations and 15 new Maple Street Biscuit Company locations. |
| --- | --- |
The Company reminds investors that its outlook for fiscal 2022 reflects a number of assumptions, many of which are outside the Company’s control.
***^1^***For the purpose of comparing to fiscal 2019, comparable stores are defined as restaurants open a full 30 monthsbefore the beginning of the applicable period.
***^2^***For Non-GAAP reconciliations, please refer to the Reconciliation of GAAP-basis operating results to non-GAAP operating results sectionof this release.
Fiscal 2021 Fourth Quarter Conference Call
As previously announced, the live broadcast of Cracker Barrel’s quarterly conference call will be available to the public on-line at investor.crackerbarrel.com today beginning at 11:00 a.m. (ET). The on-line replay will be available at 2:00 p.m. (ET) and continue through October 5, 2021.
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Cracker Barrel Reports Fourth Quarter Fiscal 2021 Results
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September 21, 2021
AboutCracker Barrel Old Country Store**^®^**
Cracker Barrel Old Country Store, Inc. (Nasdaq: CBRL) provides a caring and friendly home-away-from-home experience while offering guests high-quality homestyle food to enjoy in-store or to-go and unique shopping — all at a fair price. Established in 1969 in Lebanon, Tenn., Cracker Barrel and its affiliates operate more than 660 company-owned Cracker Barrel Old Country Store® locations in 45 states and own the fast-casual Maple Street Biscuit Company. For more information about the Company, visit crackerbarrel.com.
CBRL-F
Except for specific historical information,certain of the matters discussed in this press release may express or imply projections of revenues or expenditures, statements of plansand objectives or future operations or statements of future economic performance. These, and similar statements are forward-looking statementsconcerning matters that involve risks, uncertainties and other factors which may cause the actual performance of Cracker Barrel Old CountryStore, Inc. and its subsidiaries to differ materially from those expressed or implied by this discussion. All forward-looking informationis subject to completion of our financial procedures for Q4 FY 2021 and is provided pursuant to the safe harbor established under thePrivate Securities Litigation Reform Act of 1995 and should be evaluated in the context of these factors. Forward-looking statementsgenerally 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 otherderivatives of each of these terms) or similar terminology and include the expected effects of COVID-19 on our business, financial conditionand results of operations and of operational improvement initiatives, such as new menu items and retail offerings. Factors which couldmaterially affect actual results include, but are not limited to: risks and uncertainties associated with the COVID-19 pandemic, includingthe duration of the COVID-19 pandemic and its ultimate impact on our business, levels of consumer confidence in the safety of dine-inrestaurants, restrictions (including occupancy restrictions) imposed by governmental authorities, the effectiveness of cost saving measuresundertaken throughout our operations, disruptions to our operations as a result of the spread of COVID-19 in our workforce, and our levelof indebtedness, or constraints on our expenditures, ability to service our debt obligations or make cash distributions to our shareholdersor cash management generally, brought on by additional borrowing necessitated by the COVID-19 pandemic; general or regional economicweakness, business and societal conditions, and weather on sales and customer travel; discretionary income or personal expenditure activityof our customers; information technology-related incidents, including data privacy and information security breaches, whether as a resultof infrastructure failures, employee or vendor errors, or actions of third parties; our ability to identify, acquire and sell successfulnew lines of retail merchandise and new menu items at our restaurants; our ability to sustain or the effects of plans intended to improveoperational or marketing execution and performance; uncertain performance of acquired businesses, strategic investments and other initiativesthat we may pursue now or in the future; changes in or implementation of additional governmental or regulatory rules, regulations andinterpretations affecting tax, wage and hour matters, health and safety, pensions, insurance or other undeterminable areas; the effectsof plans intended to promote or protect our brands and products; commodity price increases; the ability of and cost to us to recruit,train, and retain qualified hourly and management employees; the effects of increased competition at our locations on sales and on laborrecruiting, cost, and retention; workers' compensation, group health and utility price changes; consumer behavior based on negative publicityor changes in consumer health or dietary trends or safety aspects of our food or products or those of the restaurant industry in general,including concerns about outbreaks of infectious disease, as well as the possible effects of such events on the price or availabilityof ingredients used in our restaurants; the effects of our indebtedness, including under our credit facility and our convertible seniornotes, and associated restrictions on our financial and operating flexibility and ability to execute or pursue our operating plans andobjectives; changes in interest rates, increases in borrowed capital or capital market conditions affecting our financing costs and abilityto refinance all or portions of our indebtedness; the effects of dilution of our existing stockholders’ ownership interest thatmay ensue from any conversions of our convertible senior notes or the related warrants issued in connection with our convertible notehedging transactions; the effects of business trends on the outlook for individual restaurant locations and the effect on the carryingvalue of those locations; our ability to retain key personnel; the availability and cost of suitable sites for restaurant developmentand our ability to identify those sites; our ability to enter successfully into new geographic markets that may be less familiar to us;changes in land, building materials and construction costs; the actual results of pending, future or threatened litigation or governmentalinvestigations and the costs and effects of negative publicity or our ability to manage the impact of social media associated with theseactivities; economic or psychological effects of natural disasters or unforeseen events such as terrorist acts, social unrest or warand the military or government responses to such events; disruptions to our restaurant or retail supply chain, including as a resultof COVID-19; changes in foreign exchange rates affecting our future retail inventory purchases; the impact of activist shareholders;our reliance on limited distribution facilities and certain significant vendors; implementation of new or changes in interpretation ofexisting accounting principles generally accepted in the United States of America ("GAAP"); and other factors described fromtime to time in our filings with the Securities and Exchange Commission, press releases, and other communications. Any forward-lookingstatement made by us herein, or elsewhere, speaks only as of the date on which made. We expressly disclaim any intent, obligation orundertaking to update or revise any forward-looking statements made herein to reflect any change in our expectations with regard theretoor any change in events, conditions or circumstances on which any such statements are based.
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Cracker Barrel Reports Fourth Quarter Fiscal 2021 Results
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September 21, 2021
| CRACKER BARREL OLD COUNTRY STORE, INC.<br><br> <br>CONDENSED CONSOLIDATED INCOME STATEMENT<br><br> <br>(Unaudited)<br><br> <br>(In thousands, except share and per share amounts, percentages and ratios) | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| **** | Fourth Quarter Ended | **** | Twelve Months Ended | **** | ||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| **** | 7/30/21 | **** | 7/31/20 | **** | Percentage Change | **** | 7/30/21 | **** | 7/31/20 | **** | Percentage Change | **** | ||||||
| Total revenue | $ | 784,405 | $ | 495,065 | 58 | % | $ | 2,821,444 | $ | 2,522,792 | 12 | % | ||||||
| Cost of goods sold, exclusive of depreciation and rent | 235,754 | 150,778 | 56 | 865,261 | 779,937 | 11 | ||||||||||||
| Labor and other related expenses | 268,702 | 187,785 | 43 | 983,120 | 924,994 | 6 | ||||||||||||
| Other store operating expenses | 180,333 | 141,267 | 28 | 676,301 | 614,733 | 10 | ||||||||||||
| General and administrative expenses | 36,948 | 40,950 | (10 | ) | 147,825 | 146,975 | 1 | |||||||||||
| Gain on sale and leaseback transactions | 0 | (69,954 | ) | (100 | ) | (217,722 | ) | (69,954 | ) | 211 | ||||||||
| Impairment | 0 | 4,160 | (100 | ) | 0 | 22,496 | (100 | ) | ||||||||||
| Operating income | 62,668 | 40,079 | 56 | 366,659 | 103,611 | 254 | ||||||||||||
| Interest expense | 24,964 | 9,944 | 151 | 56,108 | 22,327 | 151 | ||||||||||||
| Income before income taxes | 37,704 | 30,135 | 25 | 310,551 | 81,284 | 282 | ||||||||||||
| Provision for income taxes (income tax benefit) | 1,341 | 5,069 | (74 | ) | 56,038 | (28,683 | ) | 295 | ||||||||||
| Loss from unconsolidated subsidiary | 0 | 0 | 0 | (142,442 | ) | |||||||||||||
| Net income (loss) | $ | 36,363 | $ | 25,066 | 45 | $ | 254,513 | ($ | 32,475 | ) | 884 | |||||||
| Earnings (loss) per share – basic: | $ | 1.54 | $ | 1.06 | 45 | $ | 10.74 | ($ | 1.36 | ) | 890 | |||||||
| Earnings (loss) per share – diluted: | $ | 1.53 | $ | 1.05 | 46 | $ | 10.71 | ($ | 1.36 | ) | 888 | |||||||
| Weighted average shares: | ||||||||||||||||||
| Basic | 23,611,922 | 23,694,385 | (0 | ) | 23,692,063 | 23,865,367 | (1 | ) | ||||||||||
| Diluted | 23,705,547 | 23,760,922 | (0 | ) | 23,767,390 | 23,865,367 | (0 | ) | ||||||||||
| Ratio Analysis | ||||||||||||||||||
| Total revenue: | ||||||||||||||||||
| Restaurant | 79.2 | % | 81.1 | % | 78.9 | % | 80.5 | % | ||||||||||
| Retail | 20.8 | 18.9 | 21.1 | 19.5 | ||||||||||||||
| Total revenue | 100.0 | 100.0 | 100.0 | 100.0 | ||||||||||||||
| Cost of goods sold, exclusive of depreciation and rent | 30.1 | 30.5 | 30.7 | 30.9 | ||||||||||||||
| Labor and other related expenses | 34.2 | 37.9 | 34.8 | 36.7 | ||||||||||||||
| Other store operating expenses | 23.0 | 28.5 | 24.0 | 24.4 | ||||||||||||||
| General and administrative expenses | 4.7 | 8.3 | 5.2 | 5.8 | ||||||||||||||
| Gain on sale and leaseback transactions | 0.0 | (14.1 | ) | (7.7 | ) | (2.8 | ) | |||||||||||
| Impairment | 0.0 | 0.8 | 0.0 | 0.9 | ||||||||||||||
| Operating income | 8.0 | 8.1 | 13.0 | 4.1 | ||||||||||||||
| Interest expense | 3.2 | 2.0 | 2.0 | 0.9 | ||||||||||||||
| Income before income taxes | 4.8 | 6.1 | 11.0 | 3.2 | ||||||||||||||
| Provision for income taxes (income tax benefit) | 0.2 | 1.0 | 2.0 | (1.1 | ) | |||||||||||||
| Loss from unconsolidated subsidiary | 0.0 | 0.0 | 0.0 | (5.6 | ) | |||||||||||||
| Net income (loss) | 4.6 | % | 5.1 | % | 9.0 | % | (1.3 | %) |
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Cracker Barrel Reports Fourth Quarter Fiscal 2021 Results
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September 21, 2021
CRACKER BARREL OLD COUNTRY STORE, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(Unauditedand in thousands, except share amounts)
| 7/30/21 | 7/31/20 | |||
|---|---|---|---|---|
| Assets | ||||
| Cash and cash equivalents | $ | 144,593 | $ | 436,996 |
| Accounts receivable | 27,372 | 20,157 | ||
| Inventories | 138,320 | 139,091 | ||
| Prepaid expenses and other current assets | 43,311 | 46,768 | ||
| Property and equipment, net | 979,850 | 1,130,061 | ||
| Operating lease right-of-use assets, net | 974,477 | 691,949 | ||
| Intangible assets | 21,285 | 20,960 | ||
| Other assets | 57,796 | 53,586 | ||
| Goodwill | 4,690 | 4,690 | ||
| Total assets | $ | 2,391,694 | $ | 2,544,258 |
| Liabilities and Shareholders’ Equity | ||||
| Accounts payable | $ | 135,176 | $ | 103,504 |
| Other current liabilities | 330,086 | 347,552 | ||
| Long-term debt | 327,253 | 910,000 | ||
| Long-term operating lease liabilities | 748,305 | 632,630 | ||
| Other long-term obligations | 88,615 | 104,465 | ||
| Deferred income taxes | 98,626 | 27,718 | ||
| Shareholders’ equity, net | 663,633 | 418,389 | ||
| Total liabilities and shareholders’ equity | $ | 2,391,694 | $ | 2,544,258 |
| Common shares issued and outstanding | 23,497,166 | 23,697,396 |
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Cracker Barrel Reports Fourth Quarter Fiscal 2021 Results
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September 21, 2021
| CRACKER BARREL OLD COUNTRY STORE, INC. | ||||||
|---|---|---|---|---|---|---|
| CONDENSED CONSOLIDATED CASH FLOW STATEMENT | ||||||
| (Unaudited and in thousands) | ||||||
| Twelve Months Ended | ||||||
| --- | --- | --- | --- | --- | --- | --- |
| 7/30/21 | 7/31/20 | |||||
| Cash flows from operating activities: | ||||||
| Net income (loss) | $ | 254,513 | $ | (32,475 | ) | |
| Loss from unconsolidated subsidiary | 0 | 142,442 | ||||
| Depreciation and amortization | 108,604 | 118,178 | ||||
| Amortization of debt discount and issuance costs | 864 | 0 | ||||
| Loss on disposition of property and equipment | 4,064 | 6,469 | ||||
| Gain on sale and leaseback transactions | (217,722 | ) | (69,954 | ) | ||
| Impairment | 0 | 23,160 | ||||
| Share-based compensation, net of excess tax benefit | 8,729 | 6,386 | ||||
| Noncash lease expense | 55,817 | 63,442 | ||||
| Amortization of asset recognized from gain on sale and leaseback transaction | 12,735 | 0 | ||||
| Decrease in inventories | 771 | 16,094 | ||||
| (Decrease) increase in accounts payable | 31,672 | (30,593 | ) | |||
| Net changes in other assets and liabilities | 41,856 | (82,147 | ) | |||
| Net cash provided by operating activities | 301,903 | 161,002 | ||||
| Cash flows from investing activities: | ||||||
| Purchase of property and equipment, net of insurance recoveries | (70,130 | ) | (296,008 | ) | ||
| Proceeds from sale of property and equipment | 149,960 | 207,253 | ||||
| Notes receivable from unconsolidated subsidiary | 0 | (35,500 | ) | |||
| Acquisition of business, net of cash acquired | (1,500 | ) | (32,971 | ) | ||
| Net cash (used in) provided by investing activities | 78,330 | (157,226 | ) | |||
| Cash flows from financing activities: | ||||||
| Net (payments) proceeds from long-term debt | (572,967 | ) | 549,395 | |||
| Proceeds from issuance of warrants | 31,710 | 0 | ||||
| Purchases of convertible note hedge | (62,010 | ) | 0 | |||
| (Taxes withheld) from issuance of share-based compensation awards | (2,282 | ) | (2,160 | ) | ||
| Purchases and retirement of common stock | (35,000 | ) | (55,007 | ) | ||
| Deferred financing costs | (420 | ) | (1,348 | ) | ||
| Dividends on common stock | (31,667 | ) | (94,544 | ) | ||
| Net cash provided by (used in) financing activities | (672,636 | ) | 396,336 | |||
| Net increase (decrease) in cash and cash equivalents | (292,403 | ) | 400,112 | |||
| Cash and cash equivalents, beginning of period | 436,996 | 36,884 | ||||
| Cash and cash equivalents, end of period | $ | 144,593 | $ | 436,996 |
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Cracker Barrel Reports Fourth Quarter Fiscal 2021 Results
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September 21, 2021
| CRACKER BARREL OLD COUNTRY STORE, INC. | ||||||||
|---|---|---|---|---|---|---|---|---|
| Supplemental Information | ||||||||
| (Unaudited) | ||||||||
| Fourth Quarter Ended | ||||||||
| --- | --- | --- | --- | --- | ||||
| 7/30/21 | 7/31/20 | |||||||
| Net Change in Company-Owned Units During Quarter: | ||||||||
| Cracker Barrel | 0 | (1 | ) | |||||
| Maple Street Biscuit Company | 0 | 7 | ||||||
| Company-Owned Units in Operation at End of Quarter: | ||||||||
| Cracker Barrel | 664 | 663 | ||||||
| Maple Street Biscuit Company | 37 | 35 | ||||||
| Fourth Quarter Ended | Twelve Months Ended | |||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 7/30/21 | 7/31/20 | 7/30/21 | 7/31/20 | |||||
| Total revenue*: (In thousands) | ||||||||
| Restaurant | $ | 609,865 | $ | 394,985 | $ | 2,188,761 | $ | 2,010,892 |
| Retail | 162,894 | 93,536 | 594,007 | 490,749 | ||||
| Total revenue | $ | 772,759 | $ | 488,521 | $ | 2,782,768 | $ | 2,501,641 |
| Cost of goods sold* (exclusive of depreciation and rent): (In thousands) | ||||||||
| Restaurant | $ | 153,706 | $ | 97,981 | $ | 559,297 | $ | 510,448 |
| Retail | 79,404 | 51,479 | 297,312 | 264,255 | ||||
| Total cost of goods sold | $ | 233,110 | $ | 149,460 | $ | 856,609 | $ | 774,703 |
| Average unit volume*: (In thousands) | ||||||||
| Restaurant | $ | 918.5 | $ | 595.1 | $ | 3,298.7 | $ | 3,037.5 |
| Retail | 245.3 | 141.0 | 895.3 | 741.3 | ||||
| Total | $ | 1,163.8 | $ | 736.1 | $ | 4,194.0 | $ | 3,778.8 |
| Operating Weeks* | 8,632 | 8,628 | 34,503 | 34,452 |
Note*: This information is for Cracker Barrel stores only and excludes Maple Street Biscuit Company and Holler & Dash
| Q4 2021 vs. Q4 2020 | 12 mo. 2021 vs. 12 mo. 2020 | |||||
|---|---|---|---|---|---|---|
| Comparable Cracker Barrel store sales period to period increase: | ||||||
| Restaurant | 53.5 | % | 8.4 | % | ||
| Retail | 74.8 | % | 20.9 | % | ||
| Number of Cracker Barrel locations in comparable store base: | 658 | 655 |
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Cracker Barrel Reports Fourth Quarter Fiscal 2021 Results
Page 9
September 21, 2021
CRACKER BARREL OLD COUNTRY STORE, INC.
Reconciliation of GAAP-basis operating resultsto non-GAAP operating results
(Unaudited and in thousands, except per shareamounts)
Adjusted Operating Income and Earnings PerShare
In the accompanying press release, the Company makes reference to its fourth quarter fiscal 2020 and fiscal 2021 adjusted operating income and earnings per share. In regards to fiscal 2021, this reconciliation excludes the gain on sale of assets from the sale and leaseback transaction that closed in the first quarter, non-cash amortization of the asset recognized from the gains on the sale and leaseback transactions, interest expense related to the termination of interest rate swaps and the convertible senior notes offering carried out in the fourth quarter, expenses related to the proxy contest initiated by affiliates of Sardar Biglari in connection with the Company's 2020 annual meeting of shareholders, and the related tax impacts of these items. In regards to fiscal 2020, this reconciliation excludes non-cash asset impairment charges related to store assets, expenses related to COVID-19, an impairment charge related to its equity investment in Punch Bowl Social and the related tax impacts of these items. The Company believes excluding these items from its financial results provides investors with an enhanced understanding of the Company's financial results and enhances comparability across periods. This information is not intended to be considered in isolation or as a substitute for operating income or earnings per share information prepared in accordance with GAAP.
| Fourth Quarter Ended July 30, 2021 | Twelve Months Ended July 30, 2021 | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| As Reported | Adjustment | As Adjusted | As Reported | Adjustments | As Adjusted | |||||||||||||
| (1) (2) (3) | (1) (2) (4) (5) (6) | |||||||||||||||||
| Total Revenue | $ | 784,405 | - | $ | 784,405 | $ | 2,821,444 | - | $ | 2,821,444 | ||||||||
| Store operating expense | 684,789 | (3,184 | ) | 681,605 | 2,524,682 | (12,735 | ) | 2,511,947 | ||||||||||
| General and administrative expense | 36,948 | - | 36,948 | 147,825 | (5,154 | ) | 142,671 | |||||||||||
| Gain on sale and leaseback transactions | - | - | - | (217,722 | ) | 217,722 | - | |||||||||||
| Operating income | 62,668 | 3,184 | 65,852 | 366,659 | (199,833 | ) | 166,826 | |||||||||||
| Interest expense | 24,964 | (18,852 | ) | 6,112 | 56,108 | (18,852 | ) | 37,256 | ||||||||||
| Income before income taxes | 37,704 | 22,036 | 59,740 | 310,551 | (180,981 | ) | 129,570 | |||||||||||
| Provision for income taxes | 1,341 | 5,178 | 6,519 | 56,038 | (48,582 | ) | 7,456 | |||||||||||
| Net income | $ | 36,363 | $ | 16,858 | $ | 53,221 | $ | 254,513 | $ | (132,399 | ) | $ | 122,114 | |||||
| Earnings per share – basic | $ | 1.54 | $ | 0.71 | $ | 2.25 | $ | 10.74 | $ | (5.59 | ) | $ | 5.15 | |||||
| Earnings per share – diluted | $ | 1.53 | $ | 0.72 | $ | 2.25 | $ | 10.71 | $ | (5.57 | ) | $ | 5.14 | |||||
| (1) Adjusted for the non-cash amortization of the asset recognized<br> from the gain on sale and leaseback transactions<br><br> <br>(2) Adjusted for interest expense related to the termination of<br> swaps and the convertible senior notes offering | ||||||||||||||||||
| --- | ||||||||||||||||||
| (3) Adjusted for the tax impacts of (1) and (2) above | ||||||||||||||||||
| (4) Adjusted for proxy contest-related expenses | ||||||||||||||||||
| (5) Adjusted for the gain on sale of assets related to the sale and leaseback transaction | ||||||||||||||||||
| (6) Adjusted for the tax impacts of (1), (2), (4), and (5) above | ||||||||||||||||||
| Fourth Quarter Ended July 31, 2020 | Twelve Months Ended July 31, 2020 | |||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| As Reported | Adjustment | As Adjusted | As Reported | Adjustments | As Adjusted | |||||||||||||
| (1) (2) | (1) (2) | |||||||||||||||||
| Total Revenue | $ | 495,065 | - | $ | 495,065 | $ | 2,522,792 | - | $ | 2,522,792 | ||||||||
| Store operating expense | 479,830 | - | 479,830 | 2,319,664 | (3,947 | ) | 2,315,717 | |||||||||||
| Impairment | 4,160 | (4,160 | ) | - | 22,496 | (22,496 | ) | - | ||||||||||
| General and administrative expense | 40,950 | (5,711 | ) | 35,239 | 146,975 | (8,833 | ) | 138,142 | ||||||||||
| Gain on sale and leaseback transactions | (69,954 | ) | 69,954 | - | (69,954 | ) | 69,954 | - | ||||||||||
| Operating income (loss) | 40,079 | (60,083 | ) | (20,004 | ) | 103,611 | (34,678 | ) | 68,933 | |||||||||
| Interest expense | 9,944 | - | 9,944 | 22,327 | - | 22,327 | ||||||||||||
| Income (loss) before income taxes | 30,135 | (60,083 | ) | (29,948 | ) | 81,284 | (34,678 | ) | 46,606 | |||||||||
| (Income tax benefit) Provision for income<br><br> <br>taxes | 5,069 | (14,891 | ) | (9,822 | ) | (28,683 | ) | 26,678 | (2,005 | ) | ||||||||
| Loss from unconsolidated subsidiary | - | - | - | (142,442 | ) | 142,442 | - | |||||||||||
| Net income (loss) | $ | 25,066 | $ | (45,192 | ) | $ | (20,126 | ) | $ | (32,475 | ) | $ | 81,086 | $ | 48,611 | |||
| Earnings (loss) per share – basic | $ | 1.06 | $ | (1.91 | ) | $ | (0.85 | ) | $ | (1.36 | ) | $ | 3.40 | $ | 2.04 | |||
| Earnings (loss) per share – diluted | $ | 1.05 | $ | (1.90 | ) | $ | (0.85 | ) | $ | (1.36 | ) | $ | 3.40 | $ | 2.04 |
(1) Adjusted for non-cash impairment charges related to store assets, expenses related to COVID-19, the gain on sale of assets related to the sale and leaseback transaction that occurred during the fourth quarter, and impairment charge related to the Company’s equity investment in its unconsolidated subsidiary, Punch Bowl Social. This adjustment does not excluded from the Company’s results the approximately $17 million payment the Company made to its hourly store employees during the third quarter of 2020 to provide short-term financial assistance as their hours were being reduced as a result of dining room closures in response to the COVID-19 pandemic
(2) These adjustments include the tax impacts on the actual tax benefits recorded in the Condensed Consolidated Income Statement, including the deferral of recognition for the tax benefits of capital loss on impairment of the unconsolidated subsidiary
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Cracker Barrel Reports Fourth Quarter Fiscal 2021 Results
Page 10
September 21, 2021
CRACKER BARREL OLD COUNTRY STORE, INC.
Reconciliation of GAAP-basis operating resultsto non-GAAP operating results (Unaudited and in thousands)
EBITDA
In the accompanying press release, the Company makes reference to its fourth quarter fiscal 2021 EBITDA. The Company defines EBITDA as net income excluding depreciation and amortization, non-cash amortization of the asset recognized from the gains on sale and leaseback transactions, interest expense and tax expense. This information is not intended to be considered in isolation or as a substitute for net income prepared in accordance with GAAP.
| Third Quarter<br><br> Ended April 30,<br><br> 2021 | Fourth Quarter<br><br> Ended July 30,<br><br> 2021 | Twelve Months<br><br> Ended July<br><br> 20,2021 | |||||
|---|---|---|---|---|---|---|---|
| Net Income | $ | 33,470 | $ | 36,363 | $ | 254,513 | |
| (+) Depreciation & Amortization | 27,162 | 27,672 | 108,604 | ||||
| (+) Amortization of asset recognized from gain on sale and leaseback transactions | 3,183 | 3,184 | 12,735 | ||||
| (+) Interest Expense | 9,614 | 24,964 | 56,108 | ||||
| (+) Tax Expense | 9,406 | 1,341 | 56,038 | ||||
| EBITDA | $ | 82,835 | $ | 93,524 | $ | 487,998 | |
| Adjustments | |||||||
| (-) Gain on sale and leaseback transaction | - | - | (217,722 | ) | |||
| (+) Proxy contest-related expenses | - | - | 5,154 | ||||
| Adjusted EBITDA | $ | 82,835 | $ | 93,524 | $ | 275,430 |
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