<PAGE> 1
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
[ X ] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For quarterly period ended June 29, 1997
-------------------------------------------------
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 1-8766
-------------------------------------------------------
J. ALEXANDER'S CORPORATION
(Exact name of Registrant as specified in its charter)
<TABLE>
<S> <C>
Tennessee 62-0854056
--------- ----------
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)
</TABLE>
3401 West End Avenue, Suite 260, P.O. Box 24300, Nashville, Tennessee 37202
---------------------------------------------------------------------------
(Address of principal executive offices)
(Zip Code)
(615)269-1900
-------------
(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
------- --------
Common Stock Outstanding - 5,421,538 shares at August 8, 1997.
-----------------
Page 1 of 15 pages.
Exhibit Index on page 15.
<PAGE> 2
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
J. ALEXANDER'S CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNT)
<TABLE>
<CAPTION>
JUNE 29 December 29
1997 1996
--------- ----------
(Unaudited)
ASSETS
<S> <C> <C>
CURRENT ASSETS
Cash and cash equivalents ................................. $ 3,610 $12,549
Accounts and notes receivable, including current portion of
direct financing leases ................................. 125 120
Inventories ............................................... 593 534
Deferred income taxes ..................................... 1,344 1,364
Prepaid expenses and other current assets ................. 370 369
Net assets held for disposal .............................. 156 618
------- -------
TOTAL CURRENT ASSETS .................................... 6,198 15,554
OTHER ASSETS ................................................. 1,186 1,197
PROPERTY AND EQUIPMENT, at cost, less allowances for
depreciation and amortization of $5,897 and $4,567 at
June 29, 1997, and December 29, 1996, respectively ........ 53,738 47,016
DEFERRED INCOME TAXES ........................................ 1,429 1,429
DEFERRED CHARGES, less amortization .......................... 1,607 1,631
------- -------
$64,158 $66,827
======= =======
</TABLE>
-2-
<PAGE> 3
<TABLE>
<CAPTION>
JUNE 29 December 29
1997 1996
---- -----------
(Unaudited)
<S> <C> <C>
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable ................................................. $ 3,886 $ 3,748
Accrued expenses and other current liabilities ................... 2,778 6,023
Current portion of long-term debt and obligations under
capital leases ................................................. 1,921 54
-------- --------
TOTAL CURRENT LIABILITIES ...................................... 8,585 9,825
LONG-TERM DEBT AND OBLIGATIONS UNDER CAPITAL
LEASES, net of portion classified as current ..................... 14,037 15,930
DEFERRED COMPENSATION AND OTHER DEFERRED CREDITS .................... 594 611
STOCKHOLDERS' EQUITY
Common Stock, par value $.05 per share: Authorized 10,000,000
shares; issued and outstanding 5,417,134 and 5,322,507 shares at
June 29, 1997, and December 29, 1996, respectively ............. 271 266
Preferred Stock, no par value: Authorized 1,000,000 shares; none
issued ......................................................... -- --
Additional paid-in capital ....................................... 29,852 29,475
Retained earnings ................................................ 11,847 11,748
-------- --------
41,970 41,489
Note receivable - Employee Stock Ownership Plan .................. (1,028) (1,028)
-------- --------
TOTAL STOCKHOLDERS' EQUITY ..................................... 40,942 40,461
-------- --------
$ 64,158 $ 66,827
======== ========
</TABLE>
See notes to consolidated condensed financial statements.
-3-
<PAGE> 4
J. ALEXANDER'S CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
Six Months Ended Quarter Ended
---------------- -------------
JUNE 29 June 30 JUNE 29 June 30
1997 1996 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
Net sales .............................. $ 27,491 $ 45,056 $ 13,459 $ 23,369
Costs and expenses:
Cost of sales ....................... 9,264 15,687 4,505 8,041
Restaurant labor and related costs .. 8,825 13,424 4,383 6,955
Depreciation and amortization of
restaurant property and equipment . 1,307 1,863 665 973
Royalties ........................... -- 1,057 -- 555
Other operating expenses ............ 4,965 7,000 2,490 3,612
-------- -------- -------- --------
Total restaurant operating expenses 24,361 39,031 12,043 20,136
-------- -------- -------- --------
Income from restaurant operations ...... 3,130 6,025 1,416 3,233
General and administrative expenses .... 2,487 3,564 1,329 1,781
Amortization of pre-opening costs ...... 636 462 306 218
Gain on Wendy's disposition ............ 369 -- 369 --
-------- -------- -------- --------
Operating income ....................... 376 1,999 150 1,234
-------- -------- -------- --------
Other income (expense):
Interest expense .................... (460) (745) (213) (378)
Interest income ..................... 173 26 57 9
Other, net .......................... 42 (2) 20 (57)
-------- -------- -------- --------
Total other income (expense) ...... (245) (721) (136) (426)
-------- -------- -------- --------
Income before income taxes ............. 131 1,278 14 808
Income tax provision ................... 32 447 3 283
-------- -------- -------- --------
Net income ............................. $ 99 $ 831 $ 11 $ 525
======== ======== ======== ========
Earnings per share:
Primary ............................. $ .02 $ .15 $ -- $ .10
======== ======== ======== ========
Fully diluted ....................... $ .02 $ .15 $ -- $ .10
======== ======== ======== ========
Weighted average number of shares:
Primary ............................. 5,504 5,466 5,512 5,484
======== ======== ======== ========
Fully diluted ....................... 5,506 5,466 5,512 5,484
======== ======== ======== ========
</TABLE>
See notes to consolidated condensed financial statements.
-4-
<PAGE> 5
J. ALEXANDER'S CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED IN THOUSANDS)
<TABLE>
<CAPTION>
Six Months Ended
----------------
JUNE 29 June 30
1997 1996
---- ----
<S> <C> <C>
Net cash (used) provided by operating activities ....... $ (250) $ 3,249
Net cash used by investing activities:
Purchase of property and equipment .................. (9,068) (11,082)
Proceeds from maturities and sales of investments ... -- 505
Other investing activities .......................... 23 (7)
-------- --------
(9,045) (10,584)
Net cash provided (used) by financing activities:
Payments on debt and obligations under capital leases (26) (246)
Borrowings on line of credit ........................ -- 6,758
Other financing activities .......................... 382 228
-------- --------
356 6,740
Decrease in Cash and Cash Equivalents .................. (8,939) (595)
Cash and cash equivalents at beginning of period ....... 12,549 2,234
-------- --------
Cash and cash equivalents at end of period ............. $ 3,610 $ 1,639
======== ========
</TABLE>
See notes to consolidated condensed financial statements.
-5-
<PAGE> 6
J. ALEXANDER'S CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
NOTE A - BASIS OF PRESENTATION
The accompanying unaudited consolidated condensed financial statements
have been prepared in accordance with generally accepted accounting principles
for interim financial information and with the instructions to Form 10-Q and
Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the
information and footnotes required by generally accepted accounting principles
for complete financial statements. Certain reclassifications have been made in
the prior year's consolidated condensed financial statements to conform to the
1997 presentation. In the opinion of management, all adjustments (consisting of
normal recurring accruals) considered necessary for a fair presentation have
been included. Operating results for the three and six months ended June 29,
1997, are not necessarily indicative of the results that may be expected for the
fiscal year ending December 28, 1997. For further information, refer to the
consolidated financial statements and footnotes thereto included in the
Company's annual report on Form 10-K for the fiscal year ended December 29,
1996.
NOTE B - SALE OF WENDY'S RESTAURANT OPERATIONS
In November 1996, the Company sold 52 of its 58 Wendy's Old Fashioned
Hamburgers restaurants to Wendy's International, Inc. (WI) for $28.3 million in
cash plus the assumption of capitalized lease obligations and long-term debt
totaling approximately $2.5 million. This transaction generated a pre-tax gain
of $9.4 million. The six restaurants not sold as part of the November 1996
transaction, had been sold or closed as of March 30, 1997.
In accordance with Emerging Issues Task Force Issue No. 94-3 "Liability
Recognition for Certain Employee Termination Benefits and Other Costs to Exit an
Activity", the Company recorded expenses totaling $542,000 during the third
quarter of 1996 relative to accrued termination benefits ($450,000) and accrued
liabilities associated with the settlement of lease obligations. Management
provided for 21 employees eligible for termination benefits as a result of the
Company's exit from the Wendy's business. The Company recorded additional costs
during the fourth quarter of 1996 including provisions for additional severance,
insurance claims and other expenses and contingencies totaling approximately
$1,849,000 which were included in the determination of the gain on the sale of
the Wendy's restaurant operations. During the first half of 1997, the Company
paid $669,000 related to the exit of the Wendy's business. In addition,
primarily as the result of selling two properties for amounts greater than their
carrying values and a favorable insurance settlement related to a Wendy's
restaurant destroyed by fire in October, 1996, the Company recognized $369,000
in additional gains related to the Wendy's divestiture during the second quarter
of 1997. At June 29, 1997, the Company continues to maintain accruals related to
the exit of the Wendy's business totaling $1,183,000.
-6-
<PAGE> 7
NOTE C - PRE-OPENING COSTS
Costs of hiring and training personnel and certain other costs relating
to a new J. Alexander's restaurant have historically been capitalized and
amortized over the restaurant's initial months of operations. In the fourth
quarter of 1996, the Company changed its period of amortization for these costs
from 24 months to 12 months. Management does not anticipate the change will have
a material impact on periods subsequent to fiscal 1996.
NOTE D - EARNINGS PER SHARE
Primary earnings per share and fully diluted earnings per share are
based on the weighted average number of common shares outstanding each period
after considering the effect of stock options using the treasury stock method.
Shares issuable upon the conversion of convertible subordinated debentures are
included in the calculation of fully diluted earnings per share when their
inclusion is not determined to be anti dilutive.
Statement of Financial Accounting Standards No. 128, "Earnings Per
Share" ("SFAS 128"), is effective for financial statements issued for periods
ending after December 15, 1997. SFAS 128 requires all entities to provide dual
disclosure of earnings per share, basic and fully-diluted. Basic earnings per
share equals net earnings divided by the weighted average number of common
shares outstanding and does not include the dilutive effect of stock options.
Fully diluted earnings per share is essentially the same as discussed above. The
Company has evaluated the impact of this pronouncement for 1997 and expects a
slight increase in basic earnings per share, as compared to primary earnings per
share, and no impact on fully diluted earnings per share.
-7-
<PAGE> 8
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
OVERVIEW
J. Alexander's Corporation operated 15 J. Alexander's full-service,
casual dining restaurants at June 29, 1997. During the fourth quarter of 1996
the Company sold substantially all the assets of its Wendy's Old Fashioned
Hamburgers division. The Company's Wendy's operations generated restaurant
operating income of $3,522,000 on sales of $26,410,000 for the six months ended
June 30, 1996, and restaurant operating income of $1,973,000 on sales of
$13,871,000 for the second quarter of 1996. As a result of the divestiture, the
Company's sales and income from restaurant operations were significantly reduced
in the first six months and second quarter of 1997 as compared to the same
periods in 1996.
Consolidated income from restaurant operations decreased by
$2,895,000 during the first six months of 1997 and by $1,817,000 for the second
quarter of 1997 compared to the same periods in 1996, because the effect of the
disposition of the Company's Wendy's restaurant operations more than offset
increases of $627,000 (25.0%) and $156,000 (12.3%) in J. Alexander's restaurant
operating income. General and administrative expenses and net interest expense
also decreased during the first six months and second quarter of 1997 as
compared to the prior year because of the Wendy's divestiture, but such
decreases were not sufficient to offset the net decrease in income from
restaurant operations. After recording an additional gain of $369,000 in the
second quarter related to the Wendy's transaction, income before income taxes
decreased by $1,147,000 during the first six months of 1997 and by $794,000 for
the second quarter of 1997.
Management reached the decision to sell the Wendy's operations
because it believed focusing all of the Company's capital and resources
exclusively on its casual dining business will offer the greatest potential for
long-term return for its shareholders. However, the divestiture is expected to
continue to have a negative impact on earnings until the lost revenue and
operating income from the Wendy's operations can be replaced by the successful
development and operation of new J. Alexander's restaurants.
J. ALEXANDER'S RESTAURANT OPERATIONS
The Company operated fifteen J. Alexander's restaurants at June 29,
1997, compared with ten at June 30, 1996.
Operating results for the J. Alexander's restaurants, before
allocation of other income, corporate overhead and net interest expense, for the
six months and second quarters ended June 29, 1997, and June 30, 1996, were as
follows:
<TABLE>
<CAPTION>
Six Months Ended
JUNE 29, 1997 June 30, 1996
------------- -------------
AMOUNT % OF Amount % of
(IN THOUSANDS) SALES (in thousands) Sales
------------ ------ ------------ ------
<S> <C> <C> <C> <C>
Net sales........................................ $27,491 100.0% $18,646 100.0%
Restaurant costs and expenses:
Cost of sales............................... 9,264 33.7 6,546 35.1
Labor and related costs..................... 8,825 32.1 5,688 30.5
Depreciation and amortization of
restaurant property and equipment 1,307 4.8 789 4.2
Other operating expenses.................... 4,965 18.1 3,120 16.7
------- ---- ------ ----
24,361 88.6 16,143 86.6
------- ---- ------ ----
Restaurant operating income...................... $ 3,130 11.4% $ 2,503 13.4%
======= ==== ======= ====
</TABLE>
-8-
<PAGE> 9
<TABLE>
<CAPTION>
Quarter Ended
JUNE 29, 1997 June 30, 1996
------------- -------------
AMOUNT % OF Amount % of
(IN THOUSANDS) SALES (in thousands) Sales
------------ ----- ------------ -----
<S> <C> <C> <C> <C>
Net sales........................................ $13,459 100.0% $9,498 100.0%
Restaurant costs and expenses:
Cost of sales............................... 4,505 33.5 3,305 34.8
Labor and related costs..................... 4,383 32.6 2,923 30.8
Depreciation and amortization of
restaurant property and equipment 665 4.9 414 4.4
Other operating expenses.................... 2,490 18.5 1,596 16.8
------- ---- ------ ----
12,043 89.5 8,238 86.7
------- ---- ------ ----
Restaurant operating income...................... $ 1,416 10.5% $1,260 13.3%
======= ==== ====== ====
</TABLE>
Net sales for the J. Alexander's restaurants increased 47% and 42% for the
first six months and second quarter of 1997, as compared to the same periods of
1996, due primarily to the opening of new restaurants. In addition, same store
sales, which include comparable sales for all restaurants open for more than 12
months, averaged $78,800 and $75,900 per week during the first six months and
second quarter of 1997, reflecting increases of 2.7% and 0.7% from $76,700 and
$75,400 per week during the same periods of the previous year. Average weekly
sales for all restaurants were $75,100 and $73,100 for the first six months and
second quarter of 1997, as compared to $76,700 and $75,400 for the corresponding
periods in 1996.
Restaurant operating margins for the 10 restaurants open for more than
twelve months improved to 15.7% and 13.9% of sales for the first six months and
second quarter of 1997, respectfully, as compared to 13.4% and 13.3% in the same
periods in 1996. These improvements were primarily due to lower food costs due
to continued management emphasis on cost control in this area. Restaurant
operating margins for all restaurants decreased from 13.4% in the first six
months of 1996 to 11.4% for the first six months of 1997 and from 13.3% in the
second quarter of 1996 to 10.5% in the second quarter of 1997 due to the effect
of newer restaurants.
In order to maximize the quality of guest service and successfully complete
the extensive training and support of J. Alexander's staff, there has typically
been little or no advertising or promotion of new J. Alexander's restaurant
openings. Management believes that this "quiet opening" approach enhances guest
experiences and contributes significantly to increases in same store sales over
a long period of time. However, due to the slow building nature of sales and
the emphasis placed on training and quality of operations during the opening
months of operation, the financial performance of newer restaurants typically
trails that of more mature restaurants. Additionally the Company believes that
the strict operational standards established for all J. Alexander's restaurants
were not being followed by some of its newer restaurants and that this has
negatively affected sales performance in some of those restaurants. As a
result of the impact of newer restaurants, all operating cost categories, with
the exception of cost of sales, increased as a percentage of sales for the six
months and second quarter ended June 29, 1997, as compared to the same periods
of the prior year, due to the effect of the six restaurants which have opened
since the first quarter of 1996. Management is focusing on building sales in
its under performing restaurants and is also lowering the Company's planned
unit growth rate to 15% to 20% annually in order to ensure that the Company
maintains its focus on achieving operational excellence and strict adherence to
its operating standards in both new and existing restaurants. Management
believes these efforts will improve the Company's operating results but based
on its current assessment of the Company's business, anticipates that it will
be at least the fourth quarter of 1997 before improvements in the Company's
profitability result.
-9-
<PAGE> 10
GENERAL AND ADMINISTRATIVE EXPENSES
General and administrative expenses, which include all costs above the
restaurant level, were 9.0% and 9.9% of sales for the first six months and
second quarter of 1997, respectively, as compared to 7.9% and 7.6% of sales for
the same periods of the prior year. General and administrative expenditures
decreased by $1,077,000 (30%) and $452,000 (25%), during the first six months
and second quarter of 1997 as compared to the same periods in 1996, primarily
due to the disposition of the Company's Wendy's restaurant operations.
OTHER INCOME (EXPENSE)
Interest expense decreased by $285,000 and $165,000, respectively, during
the first six months and second quarter of 1997, as compared to the same periods
of the prior year, due primarily to elimination of long term obligations
associated with Wendy's restaurant operations and the pay-off of all amounts
outstanding under the Company's line of credit agreement with proceeds from the
Wendy's disposition.
Interest income increased by $147,000 and $48,000 during the first six
months and second quarter of 1997, as compared to the same periods of 1996, due
to increased investment balances resulting from the Wendy's disposition.
INCOME TAXES
Under the provisions of Statement of Financial Accounting Standards No. 109
"Accounting for Income Taxes," the Company has significant deferred tax assets
at June 29, 1997 relating primarily to approximately $2.7 million of net
operating loss carryforwards and $1.8 million of tax credit carryforwards
available to reduce future federal income taxes. Management believes that future
taxable income will be sufficient to realize all of the Company's deferred tax
assets and, therefore, no valuation allowance has been provided for these
assets.
-10-
<PAGE> 11
LIQUIDITY AND CAPITAL RESOURCES
Cash on hand and cash provided by operating activities represent
primary sources of liquidity for the Company and are also expected to be
resources for meeting future capital needs. The Company had a cash flow deficit
from operations of $250,000 (including $669,000 of payments against accruals
related to the Wendy's disposition) for the first half of 1997, as compared to
positive cash flow from operations of $3,249,000 in the same period of the prior
year. The Company had cash and cash equivalents of $3,610,000 at June 29, 1997.
The Company's primary investing activity is expected to continue to be
capital expenditures for the development and maintenance of its J. Alexander's
restaurants. Management may also consider acquisitions of additional
restaurants similar to J. Alexander's. In addition, on June 1, 1998, the
Company will be required to make annual sinking fund payments of approximately
$1,875,000 in connection with its Convertible Subordinated Debentures.
The Company opened a J. Alexander's restaurant during the second
quarter in Tampa, Florida, and plans to open three additional J. Alexander's
restaurants in 1997 in Denver, Colorado; San Antonio, Texas; and Livonia,
Michigan. All of these restaurants along with a restaurant in Louisville,
Kentucky which is expected to open in the first quarter of 1998 are currently
under construction. Capital expenditures totaled $8,080,000 during the first
half of 1997 and were primarily for the development of J. Alexander's
restaurants. The Company estimates that its capital expenditures for the
second half of 1997 will total approximately $8,000,000.
The Company maintains a $30,000,000 line of credit, which is available
for funding of capital expenditures, and believes that this credit line together
with existing cash and cash equivalents, and cash flow from operations, will be
sufficient to fund the development of its J. Alexander's restaurants through the
term of the line of credit. There were no borrowings outstanding under this line
of credit at June 29, 1997. Borrowings under the Company's credit line may be
made through July 1, 1998, with the option of converting outstanding borrowings
to a term loan.
-11-
<PAGE> 12
J. ALEXANDER'S CORPORATION AND SUBSIDIARIES
EXHIBIT 11 - STATEMENT RE: COMPUTATION OF EARNINGS PER SHARE
<TABLE>
<CAPTION>
Six Months Ended Quarter Ended
---------------------- -----------------------
JUNE 29 June 30 JUNE 29 June 30
1997 1996 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
Earnings per common and dilutive common
equivalent share
Net income...................................... $ 99,000 $ 831,000 $ 11,000 $ 525,000
========== ========= ========== ==========
Adjustment of shares outstanding:
Actual weighted average shares outstanding.... 5,381,000 5,288,000 5,406,000 5,299,000
Net additional shares issuable, based on the
treasury stock method....................... 123,000 178,000 106,000 185,000
---------- ---------- ---------- ----------
Adjusted shares outstanding................... 5,504,000 5,466,000 5,512,000 5,484,000
========== ========== ========== ==========
Per share amount................................ $ .02 $ .15 $ - $ .10
========== ========== ========== ==========
Earnings per common share, assuming full dilution
Net income...................................... $ 99,000 $ 831,000 $ 11,000 $ 525,000
========== ========== ========== ==========
Adjustment of shares outstanding:
Actual weighted average shares outstanding.... 5,381,000 5,288,000 5,406,000 5,299,000
Net additional shares issuable, based on the
treasury stock method....................... 125,000 178,000 106,000 185,000
---------- ---------- ---------- ----------
Adjusted shares outstanding................... 5,506,000 5,466,000 5,512,000 5,484,000
========== ========== ========== ==========
Per share amount............................... $ .02 $ .15 $ - $ .10
========== ========== ========== ==========
</TABLE>
Note: The computations of earnings per common and dilutive common equivalent
share and earnings per common share, assuming full dilution, are based on
the weighted average number of common shares outstanding each period
after considering the effect of stock options using the treasury stock
method. Shares issuable upon the conversion of convertible subordinated
debentures have not been included as the effect of their inclusion would
be antidilutive.
-12-
<PAGE> 13
PART II - OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders
(a) Annual meeting held May 20, 1997.
(b) Pursuant to Instruction 3 to Item 4, no response is required
to this item.
(c) At the Annual Meeting conducted May 20, 1997, the
shareholders voted on the election of directors and a
proposal to amend the Company's 1994 Employee Stock
Incentive Plan to, in addition to certain technical
adjustments, increase by 250,000 the number of shares of
common stock reserved and authorized for issuance pursuant
to the Plan. A summary of the vote is as follows:
<TABLE>
<CAPTION>
Beasley Duncan Fritts Stout Tobias Wilt*
------- ------ ------ ----- ------ ----
<S> <C> <C> <C> <C> <C> <C>
For 4,440,228 4,434,158 4,432,028 4,440,446 4,433,028 4,442,528
Withhold
Authority 390,993 397,063 399,193 390,775 398,193 388,693
</TABLE>
* Mr. Wilt resigned from the Company's Board of Directors effective
June 17, 1997.
Amendment to 1994 Employee Stock Incentive Plan
-----------------------------------------------
For 3,730,675
Against 1,074,809
Abstain 25,737
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits:
Exhibit (11) Computation of Earnings Per Share is filed with
Part I of this Form 10-Q.
Exhibit (27) Financial Data Schedule (for SEC use only)
(b) No reports on Form 8-K were filed for the quarter ended
June 29, 1997.
-13-
<PAGE> 14
SIGNATURES
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 thereunto duly authorized.
J. ALEXANDER'S CORPORATION
/s/ Lonnie J. Stout II
-----------------------------------------------
Lonnie J. Stout II
Chairman, President and Chief Executive Officer
/s/ R. Gregory Lewis
-----------------------------------------------
R. Gregory Lewis
Vice-President and Chief Financial Officer
Date: August 13, 1997
-14-
<PAGE> 15
J. ALEXANDER'S CORPORATION AND SUBSIDIARIES
INDEX TO EXHIBITS
Exhibit No. Page No.
----------- --------
(11) Computation of Earnings per Share 12
(27) Financial Data Schedules (For SEC Use Only)
-15-
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED CONDENSED FINANCIAL STATEMENTS AS OF AND FOR THE SIX MONTH PERIOD
ENDED JUNE 29, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-28-1997
<PERIOD-START> DEC-30-1996
<PERIOD-END> JUN-29-1997
<CASH> 3,610
<SECURITIES> 0
<RECEIVABLES> 125
<ALLOWANCES> 0
<INVENTORY> 593
<CURRENT-ASSETS> 6,198
<PP&E> 59,635
<DEPRECIATION> 5,897
<TOTAL-ASSETS> 64,158
<CURRENT-LIABILITIES> 6,721
<BONDS> 15,901
0
0
<COMMON> 271
<OTHER-SE> 40,671
<TOTAL-LIABILITY-AND-EQUITY> 64,158
<SALES> 27,491
<TOTAL-REVENUES> 27,491
<CGS> 9,264
<TOTAL-COSTS> 18,089
<OTHER-EXPENSES> 6,272
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 460
<INCOME-PRETAX> 131
<INCOME-TAX> 32
<INCOME-CONTINUING> 99
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 99
<EPS-PRIMARY> .02
<EPS-DILUTED> .02
</TABLE>
