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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.  20549

FORM 10-Q

[X]

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

 

OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended May 5, 2004, or

[  ]

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)

 

OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period From _____ to _____

Commission file number 1-8308

Luby's, Inc.
(Exact name of registrant as specified in its charter)

Delaware

 

74-1335253

(State or other jurisdiction of
incorporation or organization)

 

(IRS Employer Identification Number)

 

 

 

2211 Northeast Loop 410
San Antonio, Texas 78217

(Address of principal executive offices, including zip code)

 

(210) 654-9000

www.lubys.com

(Registrant's telephone number, including area code, and Website)

 

 

(Former name, former address and former fiscal year, if changed since last report)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months and (2) has been subject to such filing requirements for the past 90 days.   Yes     X        No          

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes     X         No           

As of June 7, 2004, there were 22,470,004 shares of the registrant's Common Stock outstanding, which does not include 4,933,063 treasury shares.

Luby's, Inc.
Form 10-Q
Quarter ended May 5, 2004

Table of Contents

 

 

Part I - Financial Information

Page

 

 

 

Item 1

Financial Statements

3

 

Item 2

Management's Discussion and Analysis of Financial Condition and Results of Operations

20

 

Item 3

Quantitative and Qualitative Disclosures about Market Risk

33

 

Item 4

Controls and Procedures

33

 

Part II - Other Information

 

 

 

 

 

Item 3

Defaults Upon Senior Securities

34

 

Item 4

Submission of Matters to a Vote of Security Holders

34

 

Item 6

Exhibits and Reports on Form 8-K

35

 

Signatures

 

40

 

 

 

Additional Information

 

The Company's Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to those reports are available free of charge via hyperlink on its website at www.lubys.com.  The Company makes these reports available as soon as reasonably practicable upon filing with the SEC.  Information on the Company's website is not incorporated into this report.

 

Part I - FINANCIAL INFORMATION

Item 1.  Financial Statements

Luby's, Inc.
Consolidated Balance Sheets
(In thousands)

May 5,

August 27,

2004

2003

(Unaudited)

ASSETS

Current Assets:

  Cash (see Note 3)

$

1,643

$

871

  Short-term investments (see Note 3)

18,601

20,498

  Trade accounts and other receivables

124

283

  Food and supply inventories

1,896

1,798

  Prepaid expenses

3,259

3,485

  Deferred income taxes (see Note 4)

2,446

1,777

      Total current assets

27,969

28,712

Property, plant, and equipment - net (see Note 5)

202,301

217,676

Property held for sale (see Note 7)

24,232

32,946

Investments and other assets

1,554

547

Total assets

$

256,056

$

279,881

LIABILITIES AND SHAREHOLDERS' EQUITY

Current Liabilities:

  Accounts payable

$

13,667

$

12,488

  Accrued expenses and other liabilities

16,696

20,978

  Convertible subordinated notes, net - related party (see Notes 6 and 9)

8,676

6,973

  Credit-facility debt (see Note 6)

78,490

91,559

      Total current liabilities

117,529

131,998

Accrued claims and insurance

3,439

3,729

Deferred income taxes and other credits (see Note 4)

11,124

10,579

Reserve for restaurant closings (see Note 7)

500

1,663

Commitments and contingencies (see Note 8)

-

-

      Total liabilities

132,592

147,969

SHAREHOLDERS' EQUITY

  Common stock, $.32 par value; authorized 100,000,000 shares, issued

    27,403,067 shares in 2004 and 2003

8,769

8,769

  Paid-in capital

36,625

36,916

  Deferred compensation

-

(679

)

  Retained earnings

182,841

191,968

  Less cost of treasury stock, 4,933,063 and 4,946,771 shares in 2004 and 2003,

    respectively

(104,771

)

(105,062

)

      Total shareholders' equity

123,464

131,912

Total liabilities and shareholders' equity

$

256,056

$

279,881

See accompanying notes.

Luby's, Inc.
Consolidated Statements of Operations (unaudited)
(In thousands except per share data)

Quarter Ended

Three Quarters Ended

May 5,

May 7,

May 5,

May 7,

2004

2003

2004

2003

(84 days)

(84 days)

(252 days)

(252 days)

SALES

$

74,400

$

71,549

$

213,637

$

213,426

COSTS AND EXPENSES:

  Cost of food

19,876

19,573

57,504

59,196

  Payroll and related costs

19,751

20,089

58,618

61,682

  Occupancy and other operating expenses

22,841

21,683

66,874

65,303

  Depreciation and amortization

3,876

4,060

11,764

12,239

  General and administrative expenses

4,333

6,217

14,047

16,893

  Provision for (reversal of) asset
    impairments and restaurant closings
    (see Note 7)

(569

)

1,390

770

1,364

70,108

73,012

209,577

216,677

INCOME (LOSS) FROM OPERATIONS

4,292

(1,463

)

4,060

(3,251

)

  Interest expense

(2,060

)

(1,626

)

(6,437

)

(4,582

)

  Other income, net

209

969

702

5,254

Income (loss) from continuing operations
  before income taxes

2,441

(2,120

)

(1,675

)

(2,579

)

  Provision (benefit) for income taxes
    (see Note 4)

-

-

-

-

Income (loss) from continuing operations

2,441

(2,120

)

(1,675

)

(2,579

)

  Discontinued operations, net of taxes
    (see Note 7)

(2,060

)

(22,870

)

(7,452

)

(28,917

)

NET INCOME (LOSS)

$

381

$

(24,990

)

$

(9,127

)

$

(31,496

)

Income (loss) per share - before
  discontinued operations - basic and
  assuming dilution(a)

$

0.11

$

(0.09

)

$

(0.08

)

$

(0.11

)

Income (loss) per share - from   discontinued operations - basic and
  assuming dilution(a)

$

(0.09

)

$

(1.02

)

$

(0.33

)

$

(1.29

)

Net income (loss) per share - basic and
  assuming dilution(a)

$

0.02

$

(1.11

)

$

(0.41

)

$

(1.40

)

Weighted average shares outstanding

22,470

22,456

22,470

22,448

(a)

In loss periods, earnings per share assuming dilution equals basic earnings per share since potentially dilutive securities are antidilutive.  For the quarter ended May 5, 2004, the effect of the dilution on earnings per share was not significant enough to have an effect on the calculation.

See accompanying notes.

Luby's, Inc.
Consolidated Statements of Shareholders' Equity (unaudited)
(In thousands)

 

Common Stock

Total

Issued

Treasury

Paid-In

Deferred

Retained

Shareholders'

Shares

Amount

Shares

Amount

Capital

Compensation

Earnings

Equity

BALANCE AT AUGUST 27, 2003

27,403

$

8,769

(4,947

)

$

(105,062

)

$

36,916

$

(679

)

$

191,968

$

131,912

Net income (loss) for the year to date

-

-

-

-

-

-

(9,127

)

(9,127

)

Noncash executive compensation expense

-

-

-

-

-

679

-

679

Common stock issued under nonemployee director benefit
  plans

-

-

14

291

(291

)

-

-

-

BALANCE AT MAY 5, 2004

27,403

$

8,769

(4,933

)

$

(104,771

)

$

36,625

$

-

$

182,841

$

123,464