SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
| (MARK ONE) | ||
| x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the Thirteen Weeks Ended October 26, 2003
OR
| o | 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: 0-28930
ROADHOUSE GRILL, INC.
(Exact Name of Registrant as Specified in its Charter)
| Florida | 65-0367604 | |
| (State or Other Jurisdiction of Incorporation or Organization) |
(I.R.S. Employer Identification No.) |
2703-A GATEWAY DRIVE, POMPANO BEACH, FL 33069
(Address of Principal Executive Offices and Zip Code)
Registrant’s telephone number, including area code (954) 957-2600
Securities registered pursuant to Section 12(b) of the Act:
| Title of Each Class | Name of Each Exchange on Which Registered | |
| NONE | NOT APPLICABLE |
Securities registered pursuant to Section 12(g) of the Act:
COMMON STOCK, PAR VALUE $0.03 PER SHARE
(Title of Class)
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 (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Exchange Act Rule 12b-2). Yes o No x
Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes x No o
The number of shares of the registrant’s common stock outstanding as of December 9, 2003 was 29,220,663.
DOCUMENTS INCORPORATED BY REFERENCE
None.
FORM 10-Q
THIRTEEN WEEKS ENDED OCTOBER 26, 2003
INDEX
| Page | ||||||||
| PART 1 FINANCIAL INFORMATION | ||||||||
| Item 1. | Financial Statements: | |||||||
Consolidated Balance Sheets as of October 26, 2003 (unaudited) and
April 27, 2003 |
2 | |||||||
Consolidated Statements of Operations for the Thirteen and Twenty Six
Weeks Ended October 26, 2003 and October 27, 2002 (unaudited) |
3 | |||||||
Consolidated Statement of Changes in Shareholders’ Equity for the
Twenty Six Weeks Ended October 26, 2003 (unaudited) |
5 | |||||||
Consolidated Statements of Cash Flows for the Twenty Six Weeks Ended
October 26, 2003 and October 27, 2002 (unaudited) |
6 | |||||||
Notes to Consolidated Financial Statements |
7 | |||||||
| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 29 | ||||||
| Item 3. | Quantitative and Qualitative Disclosures about Market Risk | 48 | ||||||
| Item 4. | Controls and Procedures | 48 | ||||||
| PART II OTHER INFORMATION | ||||||||
| Item 1. | Legal Proceedings | 50 | ||||||
| Item 2. | Changes in Securities and Use of Proceeds | 50 | ||||||
| Item 3. | Defaults Upon Senior Securities | 50 | ||||||
| Item 4. | Submission of Matters to a Vote of Security Holders | 50 | ||||||
| Item 5. | Other Information | 50 | ||||||
| Item 6. | Exhibits and Reports on Form 8-K | 51 | ||||||
| SIGNATURES | 52 | |||||||
1
PART 1 FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
ROADHOUSE GRILL, INC.
CONSOLIDATED BALANCE SHEETS
OCTOBER 26, 2003 AND APRIL 27, 2003
(Dollars in thousands, except per share data)
| October 26, 2003 | April 27, 2003 | |||||||||||
| (Unaudited) | ||||||||||||
Assets |
||||||||||||
Current assets: |
||||||||||||
Cash and cash equivalents |
$ | 1,039 | $ | 2,956 | ||||||||
Accounts receivable, net of allowance for doubtful accounts of
$169 and $195 at October 26, 2003 and April 27, 2003, respectively |
316 | 337 | ||||||||||
Income tax receivable |
77 | 741 | ||||||||||
Inventory |
1,061 | 1,163 | ||||||||||
Prepaid expenses |
1,540 | 2,196 | ||||||||||
Total current assets |
4,033 | 7,393 | ||||||||||
Property & equipment, net of accumulated depreciation of $52,496
and $49,741 at October 26, 2003 and April 27, 2003, respectively |
56,855 | 60,024 | ||||||||||
Assets held for sale |
800 | 800 | ||||||||||
Intangible assets, net of accumulated amortization of $790
and $772 at October 26, 2003 and April 27, 2003, respectively |
1,868 | 1,890 | ||||||||||
Other assets |
1,207 | 1,197 | ||||||||||
Total assets |
$ | 64,763 | $ | 71,304 | ||||||||
Liabilities and Shareholders’ Equity
Current liabilities: |
||||||||||||
Accounts payable |
$ | 3,664 | $ | 3,630 | ||||||||
Accrued expenses |
7,284 | 8,242 | ||||||||||
Restructuring accrual |
188 | 579 | ||||||||||
Unearned revenue |
896 | 72 | ||||||||||
Current portion of long-term debt |
5,656 | 5,616 | ||||||||||
Current portion of capital lease obligations |
1,194 | 1,335 | ||||||||||
Total current liabilities |
18,882 | 19,474 | ||||||||||
Long-term debt |
31,475 | 33,943 | ||||||||||
Capital lease obligations |
4,767 | 5,379 | ||||||||||
Other non-current liabilities |
1,803 | 1,723 | ||||||||||
Total liabilities |
56,927 | 60,519 | ||||||||||
Shareholders’ equity: |
||||||||||||
Common stock $0.03 par value. Authorized 35,000,000
shares; issued and outstanding 29,220,663 shares |
877 | 877 | ||||||||||
Additional paid-in capital |
55,953 | 55,953 | ||||||||||
Retained deficit |
(48,994 | ) | (46,045 | ) | ||||||||
Total shareholders’ equity |
7,836 | 10,785 | ||||||||||
Total liabilities and shareholders’ equity |
$ | 64,763 | $ | 71,304 | ||||||||
The accompanying notes are an integral part of these consolidated financial statements.
2
ROADHOUSE GRILL, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THIRTEEN AND TWENTY SIX WEEKS ENDED OCTOBER 26, 2003 AND OCTOBER 27, 2002
(Unaudited, dollars in thousands, except per share data)
| Thirteen Weeks Ended | Twenty Six Weeks Ended | ||||||||||||||||||
| October 26, 2003 | October 27, 2002 | October 26, 2003 | October 27, 2002 | ||||||||||||||||
Total revenues |
$ | 33,395 | $ | 33,305 | $ | 69,620 | $ | 69,244 | |||||||||||
Operating expenses: |
|||||||||||||||||||
Cost of restaurant sales: |
|||||||||||||||||||
Food and beverage |
11,686 | 11,214 | 24,582 | 23,269 | |||||||||||||||
Labor and benefits |
10,885 | 11,057 | 22,679 | 23,095 | |||||||||||||||
Occupancy and other |
8,574 | 8,856 | 16,733 | 17,692 | |||||||||||||||
Pre-opening expenses |
1 | — | 120 | 2 | |||||||||||||||
Total cost of restaurant sales |
31,146 | 31,127 | 64,114 | 64,058 | |||||||||||||||
Depreciation and amortization |
1,816 | 1,867 | 3,624 | 3,834 | |||||||||||||||
General and administrative expenses |
1,629 | 1,674 | 3,301 | 3,146 | |||||||||||||||
Asset impairment |
— | 5,085 | — | 5,085 | |||||||||||||||
Restructuring charge |
(96 | ) | 55 | (96 | ) | 55 | |||||||||||||
Reorganization expenses |
— | 805 | — | 2,284 | |||||||||||||||
Total operating expenses |
34,495 | 40,613 | 70,943 | 78,462 | |||||||||||||||
Operating loss |
(1,100 | ) | (7,308 | ) | (1,323 | ) | (9,218 | ) | |||||||||||
Other expense: |
|||||||||||||||||||
Gain (loss) on sale/disposal of fixed assets |
50 | — | 44 | — | |||||||||||||||
Interest expense, net |
(827 | ) | (270 | ) | (1,670 | ) | (480 | ) | |||||||||||
Total other expense |
(777 | ) | (270 | ) | (1,626 | ) | (480 | ) | |||||||||||
Loss before income taxes and
Extraordinary gain |
(1,877 | ) | (7,578 | ) | (2,949 | ) | (9,698 | ) | |||||||||||
Income tax expense |
— | (1 | ) | — | (1 | ) | |||||||||||||
Loss before extraordinary gain |
(1,877 | ) | (7,579 | ) | (2,949 | ) | (9,699 | ) | |||||||||||
Extraordinary gain — forgiveness of debt |
— | 1,786 | — | 1,786 | |||||||||||||||
due to reorganization |
— | — | — | — | |||||||||||||||
Net loss |
$ | (1,877 | ) | $ | (5,793 | ) | $ | (2,949 | ) | $ | (7,913 | ) | |||||||
3
| Thirteen Weeks Ended | Twenty Six Weeks Ended | ||||||||||||||||||
| October 26, 2003 | October 27, 2002 | October 26, 2003 | October 27, 2002 | ||||||||||||||||
Basic earnings per share: |
|||||||||||||||||||
Loss before extraordinary gain |
$ | (0.06 | ) | $ | (0.42 | ) | $ | (0.10 | ) | $ | ( 0.70 | ) | |||||||
Extraordinary gain |
$ | — | $ | 0.10 | $ | — | $ | 0.13 | |||||||||||
Net loss |
$ | (0.06 | ) | $ | (0.32 | ) | $ | (0.10 | ) | $ | ( 0.57 | ) | |||||||
Diluted earnings per share: |
|||||||||||||||||||
Loss before extraordinary gain |
$ | (0.06 | ) | $ | (0.42 | ) | $ | (0.10 | ) | $ | ( 0.70 | ) | |||||||
Extraordinary gain |
$ | — | $ | 0.10 | $ | — | $ | 0.13 | |||||||||||
Net loss |
$ | (0.06 | ) | $ | (0.32 | ) | $ | (0.10 | ) | $ | ( 0.57 | ) | |||||||
Weighted average common shares
and share equivalents
outstanding-assuming dilution |
29,220,663 | 17,856,554 | 29,220,663 | 13,782,647 | |||||||||||||||
The accompanying notes are an integral part of these consolidated financial statements.
4
ROADHOUSE GRILL, INC.
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
FOR THE TWENTY SIX WEEKS ENDED OCTOBER 27, 2003
(Dollars in thousands, except share data)
| Common Stock | |||||||||||||||||||||
| Additional Paid-in | |||||||||||||||||||||
| Shares | Amount | Capital | Retained Deficit | Total | |||||||||||||||||
Balance April 27, 2003 |
29,220,663 | $ | 877 | $ | 55,953 | $ | (46,045 | ) | $ | 10,785 | |||||||||||
Net loss |
— | — | — | (2,949 | ) | (2,949 | ) | ||||||||||||||
Balance July 27, 2003 |
29,220,663 | $ | 877 | $ | 55,953 | $ | (48,994 | ) | $ | 7,836 | |||||||||||
The accompanying notes are an integral part of these consolidated financial statements.
5
ROADHOUSE GRILL, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE TWENTY SIX WEEKS ENDED OCTOBER 26, 2003 AND OCTOBER 27, 2002
(Unaudited, dollars in thousands)
| October 26, 2003 | October 27, 2002 | |||||||||||
Cash flows from operating activities: |
||||||||||||
Net loss |
$ | (2,949 | ) | $ | (7,913 | ) | ||||||
Adjustments to reconcile net loss to net cash provided by
(used in) operating activities: |
||||||||||||
Depreciation and amortization |
3,624 | 3,834 | ||||||||||
Asset impairment |
— | 5,085 | ||||||||||
Restructuring charges |
(96 | ) | 55 | |||||||||
Reorganization expenses |
— | 2,284 | ||||||||||
Forgiveness of debt due to reorganization |
— | (1,786 | ) | |||||||||
Net gain on sale of fixed assets |
44 | — | ||||||||||
Cash used for reorganization items |
(120 | ) | (2,064 | ) | ||||||||
Changes in assets and liabilities: |
||||||||||||
Decrease in accounts receivable |
21 | 193 | ||||||||||
Decrease in income tax receivable |
663 | — | ||||||||||
Decrease in inventory |
101 | 166 | ||||||||||
Decrease (increase) in prepaid expenses |
657 | (39 | ) | |||||||||
(Increase) decrease in other assets |
(58 | ) | 130 | |||||||||
Increase (decrease) in accounts payable |
115 | (729 | ) | |||||||||
(Decrease) in restructuring accrual |
(44 | ) | (830 | ) | ||||||||
Increase in unearned revenue |
824 | — | ||||||||||
(Decrease) in accrued expenses |
(747 | ) | (685 | ) | ||||||||
Net cash provided by (used in) operating activities |
2,035 | (2,299 | ) | |||||||||
Cash flows from investing activities: |
||||||||||||
Proceeds from sales of property and equipment |
626 | — | ||||||||||
Purchases of property and equipment |
(1,121 | ) | (720 | ) | ||||||||
Net cash used in investing activities |
(495 | ) | (720 | ) | ||||||||
Cash flows from financing activities: |
||||||||||||
Proceeds from issuance of common stock in reorganization |
— | 5,000 | ||||||||||
Repayment of long-term debt |
||||||||||||