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 the quarterly period ended November 30, 1993
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 CAFETERIAS, INC.
___________________________________________________________________________
(Exact name of registrant as specified in its charter)
Delaware 74-1335253
________________________________ ___________________________________
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
2211 Northeast Loop 410, P. O. Box 33069
San Antonio, Texas 78265-3069
_______________________________________________________________________________
(Address of principal executive offices) (Zip Code)
210/654-9000
_____________________________________________________________________________
(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 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 stock, as of the latest practicable date.
Common Stock: 26,388,690 shares outstanding as of
November 30, 1993 (exclusive of 1,014,377
treasury shares)
<PAGE>
FORM 10-Q
Part I - FINANCIAL INFORMATION
Item 1. Financial Statements.
LUBY'S CAFETERIAS, INC.
STATEMENTS OF INCOME AND RETAINED EARNINGS
(UNAUDITED)
Three Months Ended
November 30,
1993 1992
________ ________
(Amounts in thousands
except per share data)
Sales $ 94,166 $ 88,597
Costs and expenses:
Cost of food 23,959 22,174
Payroll and related costs 26,010 24,762
Occupancy and other operating expenses 27,296 25,312
General and administrative expenses 3,577 4,230
________ ________
80,842 76,478
________ ________
Income from operations 13,324 12,119
Other income, net 458 345
________ ________
Income before income taxes and
cumulative effect of change in
accounting for income taxes 13,782 12,464
Provision for income taxes - Note 2 5,177 4,612
________ ________
Income before cumulative effect
of accounting change 8,605 7,852
Cumulative effect as of August 31,1993
of change in method of accounting for
income taxes - Note 2 1,563 ---
________ ________
Net income 10,168 7,852
Retained earnings at beginning of period 206,214 185,789
Cash dividends (3,958) (3,663)
Treasury stock transactions --- (1)
________ ________
Retained earnings at end of period $212,424 $189,977
________ _________
Earnings per share:
Income before cumulative effect of
accounting change $.32 $.29
Cumulative effect of accounting change - Note 2 .06 ---
________ ________
Net income per share $.38 $.29
________ ________
Cash dividend per share $.15 $.135
________ ________
Average number of shares outstanding 26,828 27,134
See accompanying notes.
<PAGE>
Part I - FINANCIAL INFORMATION (continued)
Item 1. Financial Statements (continued).
LUBY'S CAFETERIAS, INC.
CONDENSED BALANCE SHEETS
(UNAUDITED)
November 30, August 31,
1993 1993
____________ ____________
(Thousands of dollars)
ASSETS
Current assets:
Cash and cash equivalents $ 16,523 $ 34,305
Trade accounts and other receivables 348 602
Inventories 4,003 3,426
Prepaid expenses 2,750 2,467
Deferred income taxes 3,326 3,018
________ ________
Total current assets 26,950 43,818
Investments and other assets - at cost 13,076 13,495
Property, plant and equipment - at cost, net 245,734 244,786
________ ________
$285,760 $302,099
________ ________
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable - trade $ 8,124 $ 9,688
Dividends payable 3,958 4,084
Accrued expenses and other liabilities 21,626 26,759
Income taxes payable 6,873 2,793
________ ________
Total current liabilities 40,581 43,324
________ ________
Deferred income taxes and other credits 18,654 19,827
________ ________
Shareholders' equity:
Common stock 8,769 8,769
Paid-in capital 26,993 27,037
Retained earnings 212,424 206,214
Less cost of treasury stock (21,661) (3,072)
________ ________
Total shareholders' equity 226,525 238,948
________ ________
$285,760 $302,099
________ ________
See accompanying notes.
<PAGE>
Part I - FINANCIAL INFORMATION (continued)
Item 1. Financial Statements (continued).
LUBY'S CAFETERIAS, INC.
CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Three Months Ended
November 30,
1993 1992
________ ________
(Thousands of dollars)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 10,168 $ 7,852
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 3,876 3,741
Cumulative effect of accounting change (1,563) ---
Decrease in accrued expenses
and other liabilities (5,133) (1,682)
Other 1,872 (1,034)
________ ________
Net cash provided by operating activities 9,220 8,877
________ ________
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment (4,285) (4,177)
________ _________
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock
under employee benefit plans 82 ---
Principal payments of long-term debt --- (115)
Purchases of treasury stock (18,715) ---
Dividends paid (4,084) (3,663)
________ ________
Net cash used in financing activities (22,717) (3,778)
________ ________
Net increase (decrease) in cash and
cash equivalents (17,782) 922
Cash and cash equivalents at beginning of
period 34,305 12,294
________ ________
Cash and cash equivalents at end of period $16,523 $13,216
________ ________
See accompanying notes.
<PAGE>
Part I - FINANCIAL INFORMATION (continued)
Item 1. Fiancial Statements (continued).
LUBY'S CAFETERIAS, INC.
NOTES TO FINANCIAL STATEMENTS
November 30, 1993
(UNAUDITED)
Note 1. All adjustments which are, in the opinion of the management,
necessary to a fair statement of the results for the interim periods
have been made. All such adjustments are of a normal recurring
nature. The results for the interim period are not necessarily
indicative of the results to be expected for the full year.
Note 2. Effective September 1, 1993, the Company adopted FASB Statement No.
109, "Accounting for Income Taxes." Under Statement 109, the
liability method is used in accounting for income taxes. Under this
method, deferred tax assets and liabilities are determined based on
differences between financial reporting and tax bases of assets and
liabilities and are measured using the enacted tax rates and laws
that will be in effect when the differences are expected to reverse.
Prior to the adoption of Statement 109, income tax expense was
determined using the deferred method. Deferred tax expense was
based on items of income and expense that were reported in different
years in the financial statements and tax returns and were measured
at the tax rate in effect in the year the difference originated.
As permitted by Statement 109, the Company has elected not to
restate the financial statements of any prior years. The effect of
the change on pretax income from continuing operations for the three
month periods ended November 30, 1993 and 1992, was not material;
however, the cumulative effect of the change increased net income by
$1,563,000, or $.06 per share.
<PAGE>
Part I - FINANCIAL INFORMATION (continued)
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations.
Liquidity and Capital Resources
_______________________________
Cash and cash equivalents decreased by $17,782,000 from the end of the
preceding fiscal year to November 30, 1993. All capital expenditures for
fiscal 1994 are being funded from cash flows from operations and cash
equivalents. Capital expenditures for the three months ended November 30,
1993, were $4,285,000. Also, during the three months ended November 30,
1993, the Company purchased 845,000 shares of its common stock at a cost
of $18,715,000, which are being held as treasury stock.
As of November 30, 1993, the Company owned 17 undeveloped land sites and
four land sites on which cafeterias are under construction.
Results of Operations
_____________________
Quarter ended November 30, 1993, compared to the quarter ended
November 30, 1992.
______________________________________________________________
Sales increased $5,569,000, or 6.3%, due to the addition of one new cafeteria
in fiscal 1994 and six in fiscal 1993, and due to an increase in average sales
volume at cafeterias opened over one year.
Cost of food increased $1,785,000, or 8%, due primarily to the increase in
sales and higher food costs for certain items such as poultry, oils and
shortening. Payroll and related costs increased $1,248,000, or 5%, due
primarily to the increase in sales, and were partially offset by lower costs
of workers' compensation insurance. Occupancy and other operating expenses
increased $1,984,000, or 7.8%, due primarily to the increase in sales,
higher advertising expenditures, and higher managers' salaries, which are
based on the profitability of the cafeterias. General and administrative
expenses decreased $653,000, or 15.4%, due to the lower Company contribution
to the profit sharing and retirement plan as determined by the plan's
provisions during the quarter ended November 30, 1993, and last year's first
quarter included costs for the settlement of litigation.
The provision for income taxes increased $565,000, or 12.3%, due primarily to
the increase in operating income. The effective income tax rate increased
from 37% to 37.6% due primarily to the increase in federal income tax rates
effective January 1, 1993.
<PAGE>
Part II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
________
11 - Statement re computation of per share earnings.
(b) Reports on Form 8-K
___________________
No reports on Form 8-K have been filed during the quarter for
which this report is filed.
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.
LUBY'S CAFETERIAS, INC.
(Registrant)
By: Ralph Erben
____________________________
Ralph Erben
President
Chief Executive Officer
By: John E. Curtis, Jr.
_____________________________
John E. Curtis, Jr.
Senior Vice President
Chief Financial Officer
Dated: January 12, 1994
Exhibit 11
__________
COMPUTATION OF PER SHARE EARNINGS
The following is a computation of the weighted average number of shares
outstanding which is used in the computation of per share earnings for Luby's
Cafeterias, Inc. for the three months ended November 30, 1993 and 1992.
Three months ended November 30, 1993:
27,227,108 x shares outstanding for 1 day 27,227,108
27,214,570 x shares outstanding for 15 days 408,218,550
27,145,448 x shares outstanding for 14 days 380,036,272
27,022,276 x shares outstanding for 12 days 324,267,312
26,820,618 x shares outstanding for 19 days 509,591,742
26,420,208 x shares outstanding for 11 days 290,622,288
26,388,690 x shares outstanding for 19 days 501,385,110
_____________
2,441,348,382
Divided by number of days during the period 91
_____________
26,828,004
Three months ended November 30, 1992:
27,133,567 x shares outstanding for 28 days 759,739,876
27,133,663 x shares outstanding for 23 days 624,074,249
27,134,265 x shares outstanding for 40 days 1,085,370,600
_____________
2,469,184,725
Divided by number of days during the period 91
_____________
27,133,898
