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 29, 2003. | ||
| 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 incorporation or organization) |
(I.R.S. Employer 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)
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 by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2).
Yes X No
Indicate the number of shares outstanding of each of the registrant’s classes of common equity, as of the latest practicable date: Common stock, $.01 par value, 16,760,407 shares outstanding as of August 1, 2003.
BUCA, INC. AND SUBSIDIARIES
PART I. FINANCIAL INFORMATION
| Item 1. |
Financial Statements | |||
| Consolidated Balance Sheets – June 29, 2003 and December 29, 2002 | 3 | |||
|
Consolidated Statements of Income – Thirteen and Twenty-Six Weeks Ended June 29, 2003 and June 30, 2002 |
4 | |||
|
Consolidated Statements of Cash Flows – Thirteen and Twenty-Six Weeks Ended June 29, 2003 and June 30, 2002 |
5 | |||
| Notes to Consolidated Financial Statements | 6 | |||
| Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations | 8 | ||
| Item 3. |
Quantitative and Qualitative Disclosures about Market Risk | 15 | ||
| Item 4. |
Controls and Procedures | 15 | ||
| PART II. OTHER INFORMATION |
||||
| Item 1. |
Legal Proceedings | 15 | ||
| Item 2. |
Changes in Securities and Use of Proceeds | 16 | ||
| Item 3. |
Defaults upon Senior Securities | 16 | ||
| Item 4. |
Submission of Matters to a Vote of Security Holders | 16 | ||
| Item 5. |
Other Information | 16 | ||
| Item 6. |
Exhibits and Reports on Form 8-K | 17 | ||
| 18 | ||||
| EXHIBITS |
||||
2
PART 1.—FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets
(Unaudited, in thousands, except share data)
| June 29, 2003 |
December 29, 2002 |
|||||||
| ASSETS |
||||||||
| CURRENT ASSETS: |
||||||||
| Cash and cash equivalents |
$ | 1,874 | $ | 3,408 | ||||
| Accounts receivable |
2,656 | 2,673 | ||||||
| Inventories |
6,880 | 6,218 | ||||||
| Prepaid expenses and other |
3,250 | 3,078 | ||||||
| Total current assets |
14,660 | 15,377 | ||||||
| PROPERTY AND EQUIPMENT, net |
189,898 | 181,587 | ||||||
| OTHER ASSETS |
8,811 | 8,707 | ||||||
| GOODWILL |
11,759 | 11,759 | ||||||
| $ | 225,128 | $ | 217,430 | |||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||
| CURRENT LIABILITIES: |
||||||||
| Accounts payable |
$ | 11,147 | $ | 13,457 | ||||
| Accrued expenses and other |
10,809 | 13,702 | ||||||
| Line of credit |
14,000 | 4,000 | ||||||
| Current maturities of long-term debt and capital leases |
5,088 | 5,082 | ||||||
| Total current liabilities |
41,044 | 36,241 | ||||||
| LONG-TERM DEBT and CAPITAL LEASES, less current maturities |
19,609 | 20,808 | ||||||
| OTHER LIABILITIES |
5,738 | 3,618 | ||||||
| SHAREHOLDERS’ EQUITY: |
||||||||
| Undesignated stock, 5,000,000 shares authorized, none issued or outstanding |
||||||||
| Common stock, $.01 par value; 30,000,000 authorized; 16,748,765 and |
167 | 166 | ||||||
| Additional paid-in capital |
150,707 | 150,030 | ||||||
| Retained earnings |
9,209 | 7,685 | ||||||
| 160,083 | 157,881 | |||||||
| Notes receivable from shareholders |
(1,346 | ) | (1,118 | ) | ||||
| 158,737 | 156,763 | |||||||
| $ | 225,128 | $ | 217,430 | |||||
See notes to consolidated financial statements.
3
Consolidated Statements of Income
(Unaudited, in thousands, except share and per share data)
| Thirteen Weeks Ended |
Twenty-Six Weeks |
|||||||||||||||
| June 29, 2003 |
June 30, 2002 |
June 29, 2003 |
June 30, 2002 |
|||||||||||||
| Restaurant sales |
$ | 64,971 | $ | 60,914 | $ | 127,316 | $ | 117,226 | ||||||||
| Restaurant costs: |
||||||||||||||||
| Product |
15,830 | 14,780 | 30,872 | 28,928 | ||||||||||||
| Labor |
21,790 | 19,566 | 42,515 | 37,929 | ||||||||||||
| Direct and occupancy |
17,048 | 14,109 | 32,452 | 26,844 | ||||||||||||
| Depreciation and amortization |
4,100 | 3,326 | 7,879 | 6,325 | ||||||||||||
| Total restaurant costs |
58,768 | 51,781 | 113,718 | 100,026 | ||||||||||||
| General and administrative expenses |
4,465 | 3,668 | 8,949 | 7,107 | ||||||||||||
| Pre-opening costs |
651 | 657 | 1,535 | 1,685 | ||||||||||||
| Operating income |
1,087 | 4,808 | 3,114 | 8,408 | ||||||||||||
| Interest income |
34 | 44 | 59 | 97 | ||||||||||||
| Interest expense |
(542 | ) | (335 | ) | (931 | ) | (589 | ) | ||||||||
| Income before income taxes |
579 | 4,517 | 2,242 | 7,916 | ||||||||||||
| Provision for income taxes |
(152 | ) | (1,671 | ) | (717 | ) | (2,929 | ) | ||||||||
| Net income |
$ | 427 | $ | 2,846 | $ | 1,525 | $ | 4,987 | ||||||||
| Basic: |
||||||||||||||||
| Net income per common share |
$ | 0.03 | $ | 0.17 | $ | 0.09 | $ | 0.30 | ||||||||
| Weighted average shares outstanding |
16,720,812 | 16,438,307 | 16,685,652 | 16,392,907 | ||||||||||||
| Diluted: |
||||||||||||||||
| Net income per common share |
$ | 0.03 | $ | 0.17 | $ | 0.09 | $ | 0.29 | ||||||||
| Weighted average shares assumed outstanding |
16,731,309 | 17,067,934 | 16,693,209 | 17,019,912 | ||||||||||||
See notes to consolidated financial statements.
4
Consolidated Statements of Cash Flows
(Unaudited, in thousands)
| Twenty-Six Weeks Ended |
||||||||
| June 29, 2003 |
June 30, 2002 |
|||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||
| Net income |
$ | 1,525 | $ | 4,987 | ||||
| Depreciation and amortization |
7,879 | 6,325 | ||||||
| Tax benefit on option exercises |
12 | 850 | ||||||
| Change in assets and liabilities: |
||||||||
| Accounts receivable |
17 | 3 | ||||||
| Inventories |
(662 | ) | (923 | ) | ||||
| Prepaid expenses and other |
(172 | ) | 269 | |||||
| Accounts payable |
(2,310 | ) | (1,436 | ) | ||||
| Accrued expenses and other |
(2,893 | ) | (3,255 | ) | ||||
| Other |
70 | 152 | ||||||
| Net cash provided by operating activities |
3,466 | 6,972 | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||||
| Purchase of property and equipment |
(17,464 | ) | (22,291 | ) | ||||
| Sale of property and equipment |
3,325 | |||||||
| Decrease (increase) in other assets |
45 | (1,647 | ) | |||||
| Purchase of restaurants |
(20,429 | ) | ||||||
| Net cash used in investing activities |
(14,094 | ) | (44,367 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||||
| Proceeds from line of credit borrowings |
23,500 | 5,000 | ||||||
| Principal payments on line of credit borrowings |
(13,500 | ) | ||||||
| Proceeds from issuance of debt and capital leases |
106 | 20,275 | ||||||
| Principal payments on debt and capital leases |
(1,299 | ) | (46 | ) | ||||
| Financing costs |
(151 | ) | (247 | ) | ||||
| Collection on notes receivable from shareholders |
72 | 133 | ||||||
| Net proceeds from issuance of common stock |
366 | 1,665 | ||||||
| Net cash provided by financing activities |
9,094 | 26,780 | ||||||
| NET CHANGE IN CASH AND CASH EQUIVALENTS |
(1,534 | ) | (10,615 | ) | ||||
| CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD |
3,408 | </ | ||||||