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Table of Contents
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 Quarterly Period Ended June 30, 2002.
 
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 0-25721.
 
BUCA, Inc.
(Exact name of registrant as specified in its Charter)
 
Minnesota
  
41-1802364
(State or other jurisdiction of
  
(I.R.S. Employer
incorporation or organization)
  
Identification No.)
 
1300 Nicollet Mall
Minneapolis, Minnesota 55403
(Address of principal executive offices) (Zip Code)
 
(612) 288-2382
(Registrant’s telephone number, including area code)
(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 (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        
 
Indicate the number of shares outstanding of each of the issuer’s classes of common equity, as of the latest practicable date: Common stock, $.01 par value, 16,555,822 shares as of August 12, 2002.

Table of Contents
INDEX
 
BUCA, INC. AND SUBSIDIARIES
 
 
PART I.
        
Item 1.
        
       
3
       
4
       
5
       
6
Item 2.
      
7
Item 3.
      
14
PART II.
        
Item 1.
      
14
Item 2.
      
14
Item 3.
      
14
Item 4.
      
14
Item 5.
      
15
Item 6.
      
15
       
17

2

Table of Contents
PART 1.—FINANCIAL INFORMATION
 
Item 1.    Financial Statements
 
BUCA, Inc. and Subsidiaries
Consolidated Balance Sheets
(Unaudited, in thousands, except share and per share data)
 
    
December 30,
2001
     
June 30,
2002
  
ASSETS
                  
CURRENT ASSETS:
                  
Cash and cash equivalents
   
$
12,444
 
   
$
1,829
 
Accounts receivable
   
 
2,026
 
   
 
2,147
 
Inventories
   
 
4,784
 
   
 
6,032
 
Prepaid expenses and other
   
 
2,834
 
   
 
2,755
 
    
  
Total current assets
   
 
22,088
 
   
 
12,763
 
PROPERTY AND EQUIPMENT, net
   
 
140,755
 
   
 
166,769
 
OTHER ASSETS
   
 
5,239
 
   
 
6,960
 
GOODWILL
            
 
11,731
 
    
  
    
$
168,082
 
   
$
198,223
 
    
  
LIABILITIES AND SHAREHOLDERS’ EQUITY
                  
CURRENT LIABILITIES:
                  
Accounts payable
   
$
9,928
 
   
$
9,185
 
Accrued expenses and other
   
 
11,481
 
   
 
8,838
 
Line of credit
            
 
5,000
 
Current maturities of long-term debt and capital leases
   
 
16
 
   
 
7,107
 
    
  
Total current liabilities
   
 
21,425
 
   
 
30,130
 
LONG-TERM DEBT and CAPITAL LEASES, less current maturities
   
 
452
 
   
 
14,102
 
OTHER LIABILITIES
   
 
613
 
   
 
766
 
SHAREHOLDERS’ EQUITY:
                  
Undesignated stock, 5,000,000 shares authorized, none issued or outstanding
                  
Common stock, $.01 par value-30,000,000 authorized; 16,287,510 and 16,544,015 shares issued and outstanding, respectively
   
 
163
 
   
 
165
 
Additional paid-in capital
   
 
146,674
 
   
 
149,467
 
(Accumulated deficit) retained earnings
   
 
(311
)
   
 
4,675
 
    
  
    
 
146,526
 
   
 
154,307
 
Notes receivable from shareholders
   
 
(934
)
   
 
(1,082
)
    
  
    
 
145,592
 
   
 
153,225
 
    
  
    
$
168,082
 
   
$
198,223
 
    
  
 
See notes to consolidated financial statements.

3

Table of Contents
BUCA, Inc. and Subsidiaries
Consolidated Statements of Income
(Unaudited, in thousands, except share and per share data)
 
 
    
Thirteen Weeks Ended
     
Twenty-Six Weeks Ended
  
    
July 1,
2001
     
June 30,
2002
     
July 1,
2001
     
June 30,
2002
  
Restaurant sales
   
$
43,677
 
   
$
60,914
 
   
$
83,166
 
   
$
117,226
 
Restaurant costs
                                    
Product
   
 
11,000
 
   
 
14,780
 
   
 
21,046
 
   
 
28,928
 
Labor
   
 
13,641
 
   
 
19,566
 
   
 
25,947
 
   
 
37,929
 
Direct and occupancy
   
 
9,587
 
   
 
14,109
 
   
 
18,279
 
   
 
26,844
 
Depreciation and amortization
   
 
2,279
 
   
 
3,326
 
   
 
4,293
 
   
 
6,325
 
    
  
  
  
Total restaurant costs
   
 
36,507
 
   
 
51,781
 
   
 
69,565
 
   
 
100,026
 
General and administrative expenses
   
 
2,405
 
   
 
3,668
 
   
 
5,076
 
   
 
7,107
 
Pre-opening costs
   
 
1,052
 
   
 
657
 
   
 
2,248
 
   
 
1,685
 
    
  
  
  
Operating income
   
 
3,713
 
   
 
4,808
 
   
 
6,277
 
   
 
8,408
 
Interest income
   
 
300
 
   
 
44
 
   
 
456
 
   
 
97
 
Interest expense
   
 
(93
)
   
 
(335
)
   
 
(190
)
   
 
(589
)
    
  
  
  
Income before income taxes
   
 
3,920
 
   
 
4,517
 
   
 
6,543
 
   
 
7,916
 
Provision for income taxes
   
 
(1,451
)
   
 
(1,671
)
   
 
(2,434
)
   
 
(2,929
)
    
  
  
  
Net income
   
$
2,469
 
   
$
2,846
 
   
$
4,109
 
   
$
4,987
 
    
  
  
  
Net income per common share—basic:
                                    
Net income per common share
   
$
0.15
 
   
$
0.17
 
   
$
0.26
 
   
$
0.30
 
    
  
  
  
Weighted average common shares outstanding
   
 
16,221,879
 
   
 
16,438,307
 
   
 
15,547,043
 
   
 
16,392,907
 
    
  
  
  
Net income per share—diluted:
                                    
Net income per common share
   
$
0.15
 
   
$
0.17
 
   
$
0.25
 
   
$
0.29
 
    
  
  
  
Weighted average common shares assumed outstanding
   
 
16,962,276
 
   
 
17,067,934
 
   
 
16,231,140
 
   
 
17,019,912
 
    
  
  
  
 
See notes to consolidated financial statements.

4

Table of Contents
BUCA, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited, in thousands)
 
    
Thirteen Weeks Ended
     
Twenty-Six Weeks Ended
  
    
July 1,
2001
     
June 30,
2002
     
July 1,
2001
     
June 30,
2002
  
CASH FLOWS FROM OPERATING ACTIVITIES:
                                    
Net income
   
$
2,469
 
   
$
2,846
 
   
$
4,109
 
   
$
4,987
 
Adjustments to reconcile net income to net cash provided by operating activities:
                                    
Depreciation and amortization
   
 
2,279
 
   
 
3,326
 
   
 
4,293
 
   
 
6,325
 
Tax benefit on option exercises
   
 
455
 
   
 
569
 
   
 
914
 
   
 
850
 
Change in assets and liabilities:
                                    
Accounts receivable
   
 
46
 
   
 
40
 
   
 
529
 
   
 
3
 
Inventories
   
 
(362
)
   
 
(324
)
   
 
(904
)
   
 
(923
)
Prepaid expenses and other
   
 
106
 
   
 
28
 
   
 
(349
)
   
 
269
 
Accounts payable
   
 
(1,189
)
   
 
(410
)
   
 
453
 
   
 
(1,436
)
Accrued expenses and other
   
 
(219
)
   
 
(742
)
   
 
(3,858
)
   
 
(3,255
)
Other
   
 
45
 
   
 
64
 
   
 
60
 
   
 
152
 
    
  
  
  
Net cash provided by operating activities
   
 
3,630
 
   
 
5,397
 
   
 
5,247