UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-K
[X] Annual Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934 [Fee Required]
For the fiscal year ended June 30, 1994
_____________
[ ] Transition Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934 [No Fee Required]
For the transition period from ______________ to _________________
Commission file Number 0-9037
_______________
Piccadilly Cafeterias, Inc.
____________________________
(Exact name of registrant as specified in its charter)
Louisiana 72-0604977
________________________ ________________
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
3232 Sherwood Forest Blvd., Baton Rouge, Louisiana 70816
_______________________________________________________________
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (504) 293-9440
_______________
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Name of each exchange on which registered
Common Stock New York Stock Exchange
___________________ _____________________________
Securities registered pursuant to Section 12(g) of the Act:
None
______________
(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 [ ]
Indicate by check mark if disclosure of delinquent filers
pursuant to Item 405 of Regulation S-K (229.405 of this
chapter) is not contained herein, and will not be contained, to
the best of registrant's knowledge, in definitive proxy or
information statements incorporated by reference in Part III of
this Form 10-K or any amendment to this Form 10-K. [ ]
The aggregate market value of the voting stock held by non-
affiliates of the registrant based on the closing price of such
stock on September 20, 1994 was $68,175,259.
The number of shares outstanding of Common Stock, without par
value, as of September 20, 1994 was 10,141,399.
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the Annual Shareholders Report for the year ended
June 30, 1994 are incorporated by reference into Part II.
Portions of the proxy statement for the year ended June 30,
1994 are incorporated by reference into Part III.
Exhibit Index is on Page 15.
<PAGE> 2
PART I
Item 1. Business
General Development of Business
Piccadilly Cafeterias, Inc. was incorporated under the laws of
Louisiana in 1965 and is the successor to various predecessor
corporations and partnerships which operated "Piccadilly"
cafeterias beginning with the acquisition of the first unit in
1944. Except where the context otherwise indicates, the terms
"Company", "Piccadilly", and "Registrant" as used herein refer
to Piccadilly Cafeterias, Inc., its predecessors and its
subsidiaries.
At June 30, 1994, the Company operated 130 cafeterias in 16
states. Of these, 63 were in suburban malls, 22 were in
suburban strip centers, and 45 were free-standing suburban
locations. Approximately 10 new cafeterias are expected to be
opened during the year ending June 30, 1995. The following
table sets forth certain information regarding development of
the Company's cafeteria chain during the five years ended June
30, 1994:
<TABLE>
<CAPTION>
____________________________________________________________________________________________________
Year Ended June 30 1994 1993 1992 1991 1990
____________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C>
Net sales per unit (in thousands)<FN1> $1,916 $1,868 $1,880 $1,903 $2,001
Units opened 3 1 3 2 9
Units closed 4 11 5 0 0
Units open at year-end 130 131 141 143 141
Total customer volume (in thousands) 48,098 50,564 54,298 56,441 58,155
<FN1> Excludes cafeterias opened or closed during period.
</TABLE>
__________________________________
During 1988, the Company acquired substantially all of the
assets of the Ralph & Kacoo's seafood restaurant chain,
headquartered in Baton Rouge, Louisiana, including six
restaurants, a warehouse and seafood distribution facility, a
catering facility, and a seafood processing facility. The
Company holds a federally registered tradename, "Ralph &
Kacoo's," and a federally registered trademark on its Ralph &
Kacoo's catfish logo.
At June 30, 1994 the Company operated seven "Ralph and Kacoo's"
seafood restaurants in Louisiana, Mississippi and Texas. One
Ralph & Kacoo's seafood restaurant is expected to be opened in
the year ending June 30, 1995. The following table sets forth
certain information regarding development of the Company's
restaurant chain during the five years ended June 30, 1994:
<TABLE>
<CAPTION>
____________________________________________________________________________________________________
Year Ended June 30 1994 1993 1992 1991 1990
____________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C>
Net sales per unit (in thousands)<FN1> $3,343 $3,362 $3,151 $3,995 $4,241
Units opened 0 0 1 3 0
Units closed 0 2 1 0 0
Units open at year-end 7 7 9 9 6
<FN1> Excludes restaurants opened or closed during period.
</TABLE>
Although the Company's operations are in the southern, southwestern, and
western regions of the United States, the Company does not consider its
growth to be limited to such areas. During the year ended June 30, 1994,
the Company opened its first cafeterias in Kansas City, Kansas and St. Louis,
Missouri. During the year ending June 30, 1995, the Company expects to open
its first cafeterias in Louisville, Kentucky and Chicago, Illinois.
Piccadilly evaluates numerous potential expansion locations each year,
focusing on demographic data such as population densities, population
profiles, income levels, traffic counts, as well as the extent of competition.
The number of new cafeterias and restaurants that the Company can open depends
upon its ability to secure appropriate locations, generate necessary financial
Resources, and develop personnel for expansion.
<PAGE> 3
Financial Information about Industry Segments
_______________________________________________
Under the provisions of Statement 14 of the Financial Accounting Standards
Board, the Company has determined that, during all periods included herein,
its business constituted a single reportable industry segment -- "cafeteria
and restaurant operations."
Cafeteria and Restaurant Operations
____________________________________
The Company's cafeterias seat from 250 to 450 customers each. Each unit
offers a wide variety of food, at reasonable prices, and with the convenience
of cafeteria service, to a diverse luncheon and dinner clientele. Cafeteria
personnel cook and prepare from scratch substantially all food served. All
items are prepared from standardized recipes. Menus are varied at the
discretion of unit management in response to local and seasonal food
preferences.
Like most industry participants, the Company purchases foodstuffs (other than
some basic staples) through local or regional suppliers in small quantities in
order to better ensure freshness. As a result, inventory is kept relatively
low; average per-cafeteria-inventory at June 30, 1994 was $15,000. Food is
typically purchased on 30-day credit terms and sold for cash within such 30-
day period, thereby favorably affecting cash flow.
Ralph & Kacoo's restaurants seat from 250 to 600 customers each. These
restaurants are full-service menu facilities. All of the food served is
cooked and prepared by the restaurant staff from standardized recipes.
Substantially all of the food, supplies, and other materials required for the
preparation of meals are supplied by the Company-owned commissary.
The commissary, located in Baton Rouge, Louisiana, contains approximately
26,500 square feet of restaurant food and supplies storage. Seafood accounts
for approximately 50% of inventory at the commissary. In order to provide
consistent quality, selection, and price throughout the year, the commissary
purchases in-season seafood in quantities sufficient to supply the restaurants
during periods when such products would otherwise not be available at
reasonable prices in the marketplace. On the average, seafood inventory turns
approximately once every four months. Inventory maintained at the commissary
at June 30, 1994, was approximately $2,692,000 while the average restaurant
inventory level at year-end was approximately $44,000. The commissary is not
dependent upon a single supplier nor a small group of suppliers.
Each cafeteria and restaurant is operated as a separate unit under the control
of a manager and associate manager who have responsibility for virtually all
aspects of the unit's business including purchasing, food preparation, and
employee matters. Twelve district managers, under the supervision of three
region managers, the president, and the chief executive officer, oversee and
regularly inspect cafeteria operations. Three district managers, under the
supervision of a region manager and the chief executive officer, oversee
restaurant operations. The Company employed approximately 7,300 persons at
June 30, 1994, of whom all but 77 general office employees worked at
Piccadilly's 137 cafeteria and restaurant locations and its commissary.
The food service industry is highly competitive. Competitive factors include
food quality and variety, price, customer service, location, the number and
proximity of competitors, decor, and public reputation. The Company considers
its principal competitors to be other cafeterias, casual dining concepts, and
fast-food operations. Like other food service operations, the Company must
remain attuned to changes in both consumer preferences for food and habits in
patronizing eating establishments.
Customer volume at established cafeterias and sales volume at established
restaurants are generally higher in the Company's second fiscal quarter and
lower in the third quarter. These patterns reflect the general seasonal
fluctuations of the retail industry.
Cost of sales is affected by statutory minimum wage rates. The Company's
operations are subject to federal, state, and local laws and regulations
relating to environmental protection, including regulation of discharges into
the air and water, and relating to safety and labor, including the Federal
Occupational Safety and Health Act and wage and hour laws. Additionally, the
Company's operations are regulated pursuant to state and local sanitation and
public health laws. Operating units utilize electricity and natural gas,
which are subject to various federal and state regulations concerning the
allocation of energy. The Company's operating costs have been and will
continue to be affected by increases in the cost of energy.
<PAGE> 4
Item 2. Properties
All but 18 of the cafeterias and restaurants operated by the Company at June
30, 1994, were held under long-term leases with differing provisions and
expiration dates. The 18 cafeterias and restaurants not held under long-term
leases are owned. Leases provide for monthly rentals, typically computed on
the basis of a fixed amount plus a percentage of sales. Most leases contain
provisions permitting the Company to renew for one or more specified terms.
These leases are scheduled to expire, exclusive of renewal provisions, as
follows:
________________________________________
Five-year
periods Units Units
ending June 30 Operating Closed
_______________________________________
1998 46 1
2003 27 1
2008 31 11
2013 14 3
2018 1 -
_______________________________________
Total 119 16
=======================================
_________________________
Reference is made to Note D of the Notes to Consolidated Financial Statements
for certain additional information regarding the Company's leases.
All cafeterias and restaurants have been constructed or remodeled since 1984
and all cafeteria equipment is maintained and modernized as necessary to
maintain appearance and utility. For a discussion of the Company's current
remodeling program see Management's Discussion and Analysis of Financial
Condition and Results of Operations on pages 10 and 11 of the Annual
Shareholders Report for the year ended June 30, 1994. The list below provides
a general geographic review of the locations of the Company's cafeterias and
restaurants at June 30, 1994:
__________________________________________
State Cafeterias Restaurants
__________________________________________
Alabama 6
Arizona 4
California 1
Florida 22
Georgia 18
Kansas 1
Louisiana 26 5
Mississippi 3 1
Missouri 2
North Carolina 5
Oklahoma 5
South Carolina 2
Tennessee 11
Texas 17 1
Virginia 7
___________________________________
The Company utilizes generally standardized building configurations for its
new cafeterias and restaurants in terms of seating, food display, preparation
areas, and other factors and attempts to build out floor space to maximize
efficient use of available space.
The Company continues to pursue strategies to increase the capacity and
utilization of its cafeterias. Although most of the Company's cafeterias are
single-line, 33 of the Company's cafeterias are double-line which provide
increased capacity at peak hours. The Company does not currently intend to
convert any of its single-line cafeterias to double-line.
Piccadilly's general offices occupy approximately two-thirds of a Company-
owned 45,000 square foot office building completed in 1974 and located on a
Company-owned tract comprising approximately five acres in Baton Rouge,
Louisiana. The remainder of the building is leased to commercial tenants.
<PAGE> 5
Item 3. Legal Proceedings
The Company is not a party to and does not have any property that is the
subject of any legal proceedings pending or, to the knowledge of management,
threatened, other than ordinary routine litigation incidental to its business
and proceedings which are not material or as to which management believes the
Company has adequate insurance.
Item 4. Submission of Matters to a Vote of Security Holders
None.
Executive Officers of the Registrant
On September 27, 1994 James W. Bennett resigned as Chairman of the Board and
Chief Executive Officer of the Company. Dr. Paul W. Murrill has been named
Chairman of the Board. A committee of the Board, chaired by Dr. Murrill,
will begin a search for a new Chief Executive Officer. In the interim,
the Board has appointed a Management Committee to assume the responsibilities
of the office of the chief executive officer. The members of the Management
Committee are Malcolm T. Stein, who is chairman of the committee, Ronald A.
LaBorde and James E. Durham.
Executive officers are elected annually by the Board of Directors and hold
office until a successor is duly elected. The names and positions of
executive officers of the Registrant, together with a brief description of the
business experience of each such person during the past five years, is set
forth below.
W. Scott Bozzell, Vice President and Assistant Controller, age 31, has held
that position since May 1992. He joined the Company in December 1988 as
Assistant Controller.
James E. Durham Jr., age 60, became Region Manager in 1981 and was elected
Senior Executive Vice President in August 1988. Mr. Durham is a member of the
Management Committee.
Frederick E. Fuchs Jr., Executive Vice President and Director of Real Estate,
age 47, has held that position since June 1986.
Jere W. Goldsmith Jr., Executive Vice President and Region Manager, age 48,
has held that position since February 1992. From May 1987 to February 1992 he
was Executive Vice President and Director of Training.
Ronald A. LaBorde, age 38, Treasurer, Chief Financial Officer, and Executive
Vice President, has held such positions since January 1992. Prior to that he
was Executive Vice President, Secretary, and Controller. Mr. LaBorde is a
member of the Management Committee.
D. Thomas Landry, Executive Vice President and Director of Maintenance,
Construction, Design, and Equipment Manufacturing, age 42, has held that
position since May 1992. From July 1990 to May 1992 he was Vice President and
Director of Maintenance. Before joining the Company in January 1989, Mr.
Landry was a senior project manager with a mechanical contractor.
Robert P. Listen, Executive Vice President and Director of Technical Services,
age 46, has held that position since December 1992. From July 1987 to
November 1992 he was Executive Vice President and a district manager
Mark L. Mestayer, Executive Vice President, Secretary, and Controller, age 36,
has held such positions since May 1992. From January 1992 to May 1992, he was
Vice President and Controller. Prior to that, he was Vice President and
Controller, Ralph & Kacoo's, since joining the Company in December 1988.
Joseph S. Polito, Executive Vice President and Director of Training, age 52,
has held that position since November 1992. From 1987 to October 1992, he was
Executive Vice President and a district manager.
<PAGE> 6
Patrick R. Prudhomme, Executive Vice President and Region Manager, age 44, has
held that position since February 1992. From January 1989 to February 1992 he
was Vice President and a district manager, Ralph & Kacoo's. Prior to that he
was Vice President and a unit manager.
C. Warriner Siddle, Executive Vice President and Region Manager, age 43, has
held that position since February 1992. From October 1984 to February 1992 he
was Executive Vice President and a district manager.
Malcolm T. Stein Jr., President and Chief Operating Officer, age 61, has held
such positions since May 1993. From February 1992 to May 1993 he was Senior
Executive Vice President and Chief Operating Officer. From December 1988 to
February 1992 he was the General Manager of the Ralph & Kacoo's restaurant
division. Mr. Stein had been a Region Manager of cafeteria operations since
1979. Mr. Stein is a member of the Management Committee.
Donovan B. Touchet, Executive Vice President and Director of Data Processing,
age 45, has held that position since June 1988.
Brian G. Von Gruben, Executive Vice President and Director of Administration,
age 46, has held that position since May 1987.
PART II
Item 5. Market for the Registrant's Common Stock and Related Security Holder
Matters
Information regarding Common Stock market prices and dividends, on the inside
front cover of the Annual Shareholders Report for the year ended June 30,
1994, is incorporated herein by reference.
Item 6. Selected Financial Data
"Selected Financial Data", on the inside front cover of the Annual
Shareholders Report for the year ended June 30, 1994, is incorporated herein
by reference.
Item 7. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Management's Discussion and Analysis of Financial Condition and Results of
Operations, on pages 10 and 11 of the Annual Shareholders Report for the year
ended June 30, 1994, is incorporated herein by reference.
Item 8. Financial Statements and Supplementary Data
The following consolidated financial statements and supplementary data,
included on pages 12 through 20 of the Annual Shareholders Report for the year
ended June 30, 1994, are incorporated herein by reference.
Consolidated balance sheets--June 30, 1994 and 1993
Consolidated statements of income--years ended June 30, 1994, 1993 and 1992
Consolidated statements of changes in shareholders' equity--years ended
June 30, 1994, 1993 and 1992
Consolidated statements of cash flows--years ended June 30, 1994, 1993 and
1992
Notes to consolidated financial statements--June 30, 1994, 1993 and 1992
Item 9. Changes in and Disagreements with Accountants on Accounting and
Financial Disclosure
None.
PART III
In accordance with General Instruction G (3) to Form 10-K, Items 10, 11, 12,
and 13 have been omitted since the Company will file with the Commission a
definitive proxy statement complying with Regulation 14A involving the
<PAGE> 7
election of directors not later than 120 days after the close of its fiscal
year. The Company incorporates by reference the information in response to
such items set forth in its definitive proxy statement.
PART IV
Item 14. Exhibits, Financial Statement Schedules and Reports on Form 8-K
(a) (1) Financial Statements--The following are incorporated herein by
reference in this Annual Report on Form 10-K from the indicated
pages of the Registrant's Annual Shareholders Report for the year
ended June 30, 1994:
Annual
Shareholders
Description Report Page
____________________ ___________________
Consolidated balance sheets--June 30, 1994 and 1993 12
Consolidated statements of income--years ended
June 30, 1994, 1993 and 1992 13
Consolidated statements of changes in shareholders'
equity--years ended June 30, 1994, 1993 and 1992 13
Consolidated statements of cash flows--years ended
June 30, 1994, 1993 and 1992 14
Notes to consolidated financial statements--
June 30, 1994, 1993 and 1992 15 - 19
Report of independent auditors 20
(2) Schedules--The following consolidated schedules and information are
included in this annual report on Form 10-K on the pages indicated.
All other schedules for which provision is made in the applicable
accounting regulation of the Securities and Exchange Commission are
not required under the related instructions or are inapplicable,
and therefore have been omitted.
Annual Report
on Form 10-K
Description Page
__________________________ _________________
Schedule V--Property, plant and equipment 10
Schedule VI--Accumulated depreciation, depletion
and amortization of property, plant and equipment 11
Schedule VIII--Valuation and qualifying accounts 12
Schedule IX--Short-term borrowings 13
Schedule X--Supplementary income statement information 14
(3) Listing of Exhibits -- See sub-section (c) below.
(b) No reports on Form 8-K were filed during the last quarter of the year
covered by this report.
(c) Exhibits:
(3) (a) Articles of Incorporation, incorporated by reference to Exhibit
3.1 to Registrant's Form S-1, Registration No. 2-63249 filed
December 19,1978 (the "Form S-1"); amendment to Articles of
Incorporation, incorporated by reference to Exhibit 3 to
Registrant's Form 10-K, File No. 0-9037, filed September 14,
1987; amendment to Articles of Incorporation, incorporated by
reference to Exhibit 3 to Registrant's Form 10-K, File No.
0-9037, filed September 27, 1988; and amendment to Articles of
Incorporation incorporated by reference to Exhibit 3(a) to
Registrant's Form 10-K, as amended, File No. 0-9037, filed
September 28, 1989.
(b) Bylaws of the Company incorporated by reference to Exhibit 3(a)
to Registrant's Form 10-K, as amended, File No. 0-9037, filed
September 14, 1993.
(4) (a) Piccadilly Cafeterias, Inc. Stockholders Rights Agreement,
incorporated by reference to Exhibit 4 to the Form 8-K, File
No. 0-9037, filed August 22, 1988.
<PAGE> 8
(b) Note Agreement dated as of January 31, 1989, relating to
$30,000,000 principal amount of 10.15% Senior Notes due
January 31, 1999, incorporated by reference to Exhibit 4 of
the Form 10-Q, File No. 0-9037, filed February 11, 1989.
(10)(a) Piccadilly Cafeterias, Inc., Pension Plan, as amended, dated
May 3, 1993 incorporated by reference to Exhibit 10(a) to
Registrant's Form 10-K, as amended, File No. 0-9037, filed
September 14, 1993.
(b) Piccadilly Cafeteria, Inc. Employee Stock Purchase Plan,
incorporated by reference to Exhibit A to Registrant's Form
S-8, Registration No. 33-17737, filed October 7, 1989 and
amendment to Employee Stock Purchase Plan, incorporated by
reference to Exhibit 10(b) to Registrant's Form 10-K, as
amended, File No. 0-9037, filed September 27, 1991.
(c) Piccadilly Cafeterias, Inc. 1988 Stock Option Plan,
incorporated by reference to Exhibit 4.1 to Registrant's Form
S-8, Registration No. 33-27793, filed March 29, 1989; and
amendment to 1988 Stock Option Plan dated August 2, 1993
incorporated by reference to Exhibit 10(c) to Registrant's
Form10-K, as amended, File No. 0-9037, filed September 14,
1993.
(13)(a) The inside front cover of the Registrant's Annual Shareholders
Report for the year ended June 30,1994, containing "Selected
Financial Data", is on page 16.
(b) The inside front cover of the Registrant's Annual Shareholders
Report for the year ended June 30, 1994, containing "Stock
Information", is on page 17 .
(c) Pages 10 and 11 of the Registrant's Annual Shareholders Report
for the year ended June 30, 1994, containing Management's
Discussion and Analysis of Financial Condition and Results of
Operations, are on pages 18 through 20.
(d) Pages 12 through 19 of the Registrant's Annual Shareholders
Report for the year ended June 30, 1994, containing the
Consolidated Financial Statements and the Notes to the
Consolidated Financial Statements, are on pages 21 through 29.
(e) Page 20 of the Registrant's Annual Shareholders Report for the
year ended June 30, 1994, containing the Report of Independent
Auditors, is on page 30.
(21) List of subsidiaries is on page 31.
(23) Consent of independent auditors is on page 32.
(27) Financial Data Schedules required in filings on EDGAR are on
page 33.
(d) See response to Item 14(a)(2) of this report.
<PAGE> 9
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
PICCADILLY CAFETERIAS, INC.
_______________________________
(Registrant)
By: /s/Ronald A. LaBorde
____________________
Ronald A. LaBorde
Executive Vice President
Date: September 27, 1994
____________________
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
Registrant and in the capacities and on the dates indicated.
/s/ Paul W. Murrill 9/27/94 /s/ James E. Durham, Jr. 9/27/94
________________________ ________ _________________________ _________
Dr. Paul W. Murrill, Date James E. Durham, Jr., Date
Chairman and Director Senior Vice President and
Director*
/s/ O.Q. Quick 9/27/94 /s/ Julia H. R. Hamilton 9/27/94
_______________________ _________ _________________________ ________
O.Q. Quick, Director Date Julia H. R. Hamilton, Date
Director
/s/ Malcolm T. Stein, Jr. 9/27/94 /s/ Mark L. Mestayer 9/27/94
_________________________ _________ __________________________ ________
Malcolm T. Stein, Jr., Date Mark L. Mestayer, Executive Date
President, Chief Operating Vice President, Secretary,
Officer and Director* and Controller (Principal
Accounting Officer)
/s/ Ronald A. LaBorde 9/27/94
_________________________ _________
Ronald A. LaBorde, Date
Executive Vice President,
Chief Financial Officer
(Principal Financial Officer),
and Director*
* Member of the Management Committee.
<PAGE> 10
<TABLE>
<CAPTION>
SCHEDULE V - PROPERTY, PLANT AND EQUIPMENT
_______________________________________________________________________________________________________________
COL. A COL. B COL. C COL. D COL. E COL. F
_______________________________________________________________________________________________________________
Balance Other Changes
at Beginning Additions Add (Deduct) Balance at
Classification of Period at Cost Retirements Describe End of Period
_______________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C>
Year ended June 30, 1994:
Land $ 13,515,362 $ 4,504,443 $ 50,000 $ $ 17,969,805
Buildings and leasehold
improvements 92,912,145 8,776,196 1,858,770 99,829,571
Furniture and fixtures 81,587,949 9,399,687 3,543,515 87,444,121
Machinery and equipment 15,445,583 1,986,764 2,401,295 15,031,052
Construction in progress 1,688,952 25,744,233 - (18,516,652)<FN1> 8,916,533
_______________ ______________ _____________ ________________ ________________
$ 205,149,991 $ 50,411,323 $ 7,853,580 $(18,516,652) $229,191,082
=============== ============== ============= ================ ================
Year ended June 30, 1993:
Land $ 11,445,043 $ 2,130,319 $ 60,000 $ $ 13,515,362
Buildings and leasehold
improvements 102,006,318 2,782,371 11,876,544 92,912,145
Furniture and fixtures 84,576,886 2,596,190 5,585,127 81,587,949
Machinery and equipment 15,269,338 1,201,190 1,024,945 15,445,583
Construction in progress 481,545 3,932,685 - ( 2,725,278)<FN1> 1,688,952
_______________ ______________ ______________ ________________ _______________
$ 213,779,130 $12,642,755 $ 18,546,616 $( 2,725,278) $ 205,149,991
=============== ============== ============== ================ ===============
Year ended June 30, 1992:
Land $ 11,448,840 $ - $ 3,797 $ $ 11,445,043
Buildings and leasehold
improvements 102,083,336 4,196,929 4,273,947 102,006,318
Furniture and fixtures 84,055,153 4,060,735 3,539,002 84,576,886
Machinery and equipment 13,746,732 2,432,945 910,339 15,269,338
Construction in progress 1,430,154 3,462,861 - ( 4,411,470)<FN1> 481,545
________________ ______________ ______________ _________________ _______________
$ 212,764,215 $14,153,470 $ 8,727,085 $( 4,411,470) $ 213,779,130
================ ============== ============== ================= ===============
<FN1> Amounts represent items transferred to other fixed asset categories and are included in the amounts in Column C.
</TABLE>
<PAGE> 11
<TABLE>
<CAPTION>
SCHEDULE VI - ACCUMULATED DEPRECIATION, DEPLETION AND AMORTIZATION
OF PROPERTY, PLANT AND EQUIPMENT
_______________________________________________________________________________________________________________
COL. A COL. B COL. C COL. D COL. E COL. F
_______________________________________________________________________________________________________________
Balance Other Changes
at Beginning Additions Add (Deduct) Balance at
Classification of Period at Cost Retirements Describe End of Period
_______________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C>
Year ended June 30, 1994:
Buildings and leasehold
improvements $29,593,622 $ 3,440,205 $1,065,155 $31,968,672
Furniture and fixtures 48,527,428 6,618,057 2,481,420 52,664,065
Machinery and equipment 9,799,938 1,661,810 1,633,145 9,828,603
______________ ______________ _____________ _______________
$87,920,988 $11,720,072 $5,179,720 $94,461,340
============== ============== ============= ===============
Year ended June 30, 1993:
Buildings and leasehold
improvements $27,991,286 $ 3,239,902 $1,745,373 $107,807<FN1> $29,593,622
Furniture and fixtures 44,111,905 7,155,676 3,144,579 404,426<FN1> 48,527,428
Machinery and equipment 8,499,011 1,444,889 207,718 63,756<FN1> 9,799,938
______________ ______________ ____________ ________________ ______________
$80,602,202 $11,840,467 $5,097,670 $575,989 $87,920,988
============== ============== ============ ================ ==============
Year ended June 30, 1992:
Buildings and leasehold
improvements $25,544,875 $ 3,440,392 $1,084,693 $ 90,712<FN1> $27,991,286
Furniture and fixtures 36,911,070 8,219,369 1,260,230 241,696<FN1> 44,111,905
Machinery and equipment 7,833,797 1,636,020 1,013,317 42,511<FN1> 8,499,011
_______________ ______________ ____________ ________________ ______________
$70,289,742 $13,295,781 $3,358,240 $ 374,919 $80,602,202
=============== ============== ============ ================ ==============
<FN1> Additions to accumulated depreciation on reserved units which have been charged to the allowance for unit closings.
</TABLE>
<PAGE> 12
<TABLE>
SCHEDULE VIII - VALUATION AND QUALIFYING ACCOUNTS
_____________________________________________________________________________________________________________
COL. A COL. B COL. C COL. D COL. E
_____________________________________________________________________________________________________________
Additions
_______________
(2)
(1) Charged to
Balance at Charged to Other
Beginning cost and Accounts- Deduction-- Balance at
Description of Period expenses Describe Describe End of Period
_____________________________________________________________________________________________________________
<S> <C> <C> <C>
Reserves for Unit Closings:
Year ended June 30, 1993:
Property, plant & equipment
allowance $ 1,832,143 $ 475,484<FN1> $ 1,356,659
Current liability 499,647 149,165<FN1> 350,482
Long-term liability 7,804,739 1,302,253<FN1> 6,502,486
___________________ __________________ _____________
$ 10,136,529 $ 1,926,902 8,209,627
=================== ================== =============
Year ended June 30, 1992:
Property, plant & equipment
allowance $ 11,458,442 $9,626,299<FN1> $ 1,832,143
Current liability 2,028,664 1,529,017<FN1> 499,647
Long-term liability 12,945,382 5,140,643<FN1> 7,804,739
___________________ __________________ _____________
$26,432,488 $16,295,959 $10,136,529
=================== ================== =============
<FN1> Deductions are for the write-off of certain property, plant and equipment relating to units closed and
for the payment of other obligations (primarily rent) for those units closed and for those units for which
a provision for unit closing was recorded during the year ended June 30, 1992 but were operating during
the year ended June 30, 1993.
</TABLE>
<PAGE> 13
SCHEDULE IX - SHORT-TERM BORROWINGS
<TABLE>
<CAPTION>
_____________________________________________________________________________________________________
COL. A COL. B COL. C COL. D COL. E COL. F
____________________________________________________________________________________________________
Category of Weighted Maximum Average Weighted
Aggregate Balance Average Amount Amount Average
Short-term at Interest Outstanding Outstanding Interest Rate
Borrowing End of Year Rate During Year During Year During Year<FN1>
___________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C>
Year ended
June 30, 1994 $ - - $ - $ - -
Year ended
June 30, 1993 $ - - $ - $ - -
Year ended
June 30, 1992
Bank<FN2> $ - - $3,744,000 $1,088,000<FN4> 6.0%
Bank<FN3> $ - - $3,000,000 $1,809,000<FN5> 6.7%
<FN1> Computed by dividing the actual interest expense by average short-term
debt outstanding.
<FN2> Unsecured line of credit.
<FN3> Note(s) payable to bank(s).
<FN4> Computed by dividing the total of daily outstanding principal balances by
number of days outstanding.
<FN5> Computed by dividing the total of month-end outstanding principal balances by 12.
</TABLE>
<PAGE> 14
SCHEDULE X - SUPPLEMENTARY INCOME STATEMENT INFORMATION
______________________________________________________________________________
COL. A COL. B
______________________________________________________________________________
Item Charged to Costs and Expenses
______________________________________________________________________________
Year Ended June 30
__________________________________________
1994 1993 1992
___________ _____________ ____________
Maintenance and repairs $3,678,687 $3,303,169 $3,142,108
Advertising 1,208,431 973,512 3,502,779
Depreciation and amortization of intangible assets, taxes other than payroll
and income taxes, and royalties are not set forth inasmuch as such items do
not exceed 1% of total sales as shown in the accompanying statements of
income.
<PAGE> 15
EXHIBIT INDEX
(3) (a) Articles of Incorporation, incorporated by reference to Exhibit 3.1 to
Registrant's Form S-1, Registration No. 2-63249 filed December 19,1978
(the "Form S-1"); amendment to Articles of Incorporation, incorporated
by reference to Exhibit 3 to Registrant's Form 10-K, File No. 0-9037,
filed September 14, 1987; amendment to Articles of Incorporation,
incorporated by reference to Exhibit 3 to Registrant's Form 10-K,
File No. 0-9037, filed September 27, 1988; and amendment to Articles
of Incorporation incorporated by reference to Exhibit 3(a) to
Registrant's Form 10-K, as amended, File No. 0-9037, filed
September 28, 1989.
(b) Bylaws of the Company incorporated by reference to Exhibit 3(a) to
Registrant's Form 10-K, as amended, File No. 0-9037, filed September
14, 1993.
(4) (a) Piccadilly Cafeterias, Inc. Stockholders Rights Agreement,incorporated
by reference to Exhibit 4 to the Form 8-K, File No. 0-9037, filed
August 22, 1988.
(b) Note Agreement dated as of January 31, 1989, relating to $30,000,000
principal amount of 10.15% Senior Notes due January 31, 1999,
incorporated by reference to Exhibit 4 of the Form 10-Q, File No.
0-9037, filed February 11, 1989.
(10)(a) Piccadilly Cafeterias, Inc., Pension Plan, as amended, dated May 3,
1993 incorporated by reference to Exhibit 10(a) to Registrant's Form
10-K, as amended, File No. 0-9037, filed September 14, 1993.
(b) Piccadilly Cafeteria, Inc. Employee Stock Purchase Plan, incorporated
by reference to Exhibit A to Registrant's Form S-8, Registration
No. 33-17737, filed October 7, 1989 and amendment to Employee Stock
Purchase Plan, incorporated by reference to Exhibit 10(b) to
Registrant's Form 10-K, as amended, File No. 0-9037, filed September
27, 1991.
(c) Piccadilly Cafeterias, Inc. 1988 Stock Option Plan, incorporated by
reference to Exhibit 4.1 to Registrant's Form S-8, Registration
No. 33-27793, filed March 29, 1989; and amendment to 1988 Stock
Option Plan dated August 2, 1993 incorporated by reference to
Exhibit 10(c) to Registrant's Form 10-K, as amended, File No. 0-9037,
filed September 14, 1993.
(13)(a) The inside front cover of the Registrant's Annual Shareholders Report
for the year ended June 30,1994, containing "Selected Financial Data",
is on page 16.
(b) The inside front cover of the Registrant's Annual Shareholders Report
for the year ended June 30, 1994, containing "Stock Information", is
on page 17 .
(c) Pages 10 and 11 of the Registrant's Annual Shareholders Report for the
year ended June 30, 1994, containing Management's Discussion and
Analysis of Financial Condition and Results of Operations, are on
pages 18 through 20.
(d) Pages 12 through 19 of the Registrant's Annual Shareholders Report
for the year ended June 30, 1994, containing the Consolidated
Financial Statements and the Notes to the Consolidated Financial
Statements, are on pages 21 through 29.
(e) Page 20 of the Registrant's Annual Shareholders Report for the year
ended June 30, 1994, containing the Report of Independent Auditors,
is on page 30.
(21) List of subsidiaries is on page 31.
(23) Consent of independent auditors is on page 32.
(27) Financial Data Schedules required in filings on EDGAR are on page 33.
<PAGE> 16
EXHIBIT 13(a)
Stock Information
Piccadilly Cafeterias, Inc.
The Company's Common Stock began trading on the New York Stock Exchange on
March 3, 1993 under the symbol "PIC." Prior to that time, the stock was
traded on the NASDAQ National Market System under the symbol "PICC." The
following table sets forth the high and low sales prices on the New York Stock
Exchange or on the NASDAQ National Market System for each quarter within the
last two fiscal years. As of August 8, 1994 there were approximately 2,502
record holders of the Company's Common Stock.
<TABLE>
<CAPTION>
____________________________________________________________________________________________________________
Per Per
Share Share
Quarter High Low Cash Quarter High Low Cash
Dividends Dividends
____________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Fiscal year ended Fiscal year
July 30, 1994 1st $10.88 $ 8.38 $.12 June 30,1993 1st $14.25 $10.00 $.12
2nd 12.63 10.50 .12 2nd 14.00 10.50 .12
3rd 15.50 11.63 .12 3rd 12.00 9.00 .12
4th 13.63 9.63 .12 4th 10.88 9.50 .12
__________________________________
</TABLE>
<PAGE> 17
EXHIBIT 13(b)
Selected Financial Data
Piccadilly Cafeterias, Inc.
<TABLE>
<CAPTION>
(Amounts in thousands--except per share data)
_______________________________________________________________________________________________
Year Ended June 30 1994 1993 1992 1991 1990
_______________________________________________________________________________________________
<S> <C> <C> <C> <C> <C>
Net Sales $276,223 $271,460 $295,114 $302,742 $306,655
Cost of sales and other
operating expense 247,661 247,453 266,792 270,500 269,619
Net income (loss) 7,047 4,825 (24,586)<FN1> 8,694 11,901
Per share data:
Net income (loss) .70 .49 (2.51)<FN1> .90 1.25
Cash dividends .48 .48 .48 .48 .48
Total assets 154,773 152,618 152,906 184,534 179,043
Cash and marketable
securities --- 14,094 9,438 4,936 1,598
securities
Long-term debt 24,000 36,000 39,000 45,430 45,000
Shareholders' equity 75,874 72,192 71,018 99,385 94,299
<FN1> Includes $30,904,000 ($3.14 per share) for the after-tax effect of the
write-off of intangible assets related to the Ralph & Kacoo's acquisition on
December 2, 1988 and estimated disposition costs of 15 cafeteria and
restaurant operating units.
</TABLE>
<PAGE> 18
EXHIBIT 13(c)
Management's Discussion and Analysis of Financial Condition and Results of
Operations
Piccadilly Cafeterias, Inc.
Liquidity and Capital Resources
The following table presents comparable balances of cash equivalents and
working capital:
(Amounts in thousands)
______________________________________________________________________________
Balances at June 30 1994 1993 1992
______________________________________________________________________________
Cash and cash equivalents -- $14,094 $ 7,839
Working capital surplus (deficit) $(26,063) $ 2,043 $ (856)
______________________________________
Opening cash balances of $14,094,000 combined with cash generated from
operations of $23,426,000 were primarily used to fund $35,645,000 of fiscal
year 1994 capital expenditures and debt maturities. Working capital
decreased $28,106,000 during fiscal year 1994 primarily due to the capital
expenditures made in fiscal year 1994 and the increase in current maturities
of long-term debt. The Company has maintained a $10,000,000 unsecured, short-
term line of credit. This facility was not utilized during fiscal year 1994.
As of August 8, 1994, $5,150,000 of this facility was available.
For fiscal year 1995, total capital expenditures are expected to approximate
$40,000,000 to $45,000,000 and will include purchases of land, construction of
eight to ten new units, and major remodels to 25 to 30 existing cafeterias and
restaurants. Also during fiscal year 1995, $5,250,000 of the note payable to
bank and $6,000,000 of the 10.15% senior notes will become due. Management
has begun negotiations and anticipates obtaining bank financing to fund both
capital expenditures and maturing debt in excess of the resources to be
generated from operations.
During fiscal year 1994, the Company accelerated its new unit expansion and
completed the first year of a five-year plan to remodel all of its existing
cafeterias. The following table presents a summary of capital expenditures for
the years ended June 30, 1994, 1993 and 1992:
(Amounts in thousands--except number of units)
______________________________________________________________________________
Year Ended June 30 1994 1993 1992
______________________________________________________________________________
Amounts Units Amounts Units Amounts Units
______________________________________________________________________________
New units opened $ 5,612 3 $1,536 1 $3,470 4
Remodels completed--major 10,368 17 373 1 - -
Remodels completed--minor 1,074 821 2,438
Net increase (decrease) in
construction-in-progress 7,228 1,207 (948)
Land purchases 4,455 2,070 -
Other 3,158 3,910 4,782
__________________________________________ _______ ________
Total capital expenditures $31,895 $9,917 $9,742
__________________________________________ _______ ________
_______________________________________
Historically, the Company has leased land for the majority of its freestanding
cafeteria units. Beginning in fiscal year 1993, the Company began to purchase
land for the majority of its new units. The total investment required for a
freestanding unit is higher than for strip-center or shopping mall locations.
All of the units opened in fiscal years 1994 and 1993 are freestanding units.
Of the four units opened in fiscal year 1992, one is freestanding, one is in a
shopping mall, and two are located in strip-centers. The Company expects
that, prospectively, most of its new unit openings will be freestanding.
Major unit remodels generally include a substantial redesign of the unit.
Capital expenditures for these units include replacement of decor, carpet,
furniture and fixtures, and exterior signage. Minor unit remodels are
generally limited to replacement of carpeting, minor decor upgrades, additions
of take-out stands, and/or in some cases, replacement of exterior signage.
<PAGE> 19
Results of Operations
FISCAL YEAR 1994 COMPARED TO FISCAL YEAR 1993. The following table summarizes
comparable cafeteria customer traffic for the fiscal years ended June 30,
1994 and 1993:
(Customers in thousands)
______________________________________________________________________________
Year Ended June 30 1994 1993 Customer
____________________________________________________________________
Customers Units Customers Units Change
Units open 12 months in
both periods 46,412 126 47,993 126 -3.3%
Units opened 1,183 3 427 1
Units closed 503 4 2,144 11
_______________________________________ ___________
Total 48,098 50,564 -4.9%
======================================= ===========
______________________________________
Cafeteria sales for fiscal year 1994 increased $5,307,000, or 2.1%, from
fiscal year 1993. Price increases effective November 1993 and May 1994 were
sufficient to offset the overall customer decline of 4.9%. The overall check
average increased 5.2% from $5.00 for fiscal year 1993 to $5.26 for fiscal
year 1994.
Ralph & Kacoo's restaurant sales decreased $544,000, or 2.3%. No Ralph &
Kacoo's restaurants were opened or closed during fiscal year 1994.
During fiscal year 1994, operating profits (net sales less cost of sales and
other operating expenses) improved from 8.8% of net sales to 10.3% of net
sales. Food costs and labor costs as a percentage of sales decreased 1.5% and
0.7%, respectively. These improvements were somewhat offset by other
operating expense which increased from 32.7% of net sales for fiscal year 1993
to 33.4% of net sales for fiscal year 1994.
Four units closed in fiscal year 1994. All of these units had substantially
reached the end of their respective lease terms. Other operating expense
includes a provision of $100,000 relating to losses associated with the
closing of these units.
Other expense for 1994 increased $876,000 compared to fiscal year 1993. This
increase is largely attributable to non-cash write-offs related to remodeled
units amounting to $996,000.
The Revenue Reconciliation Act of 1993 was enacted into law on August 10,
1993. This Act, combined with an increase in the Company's effective state
income tax rate, resulted in an increase of the Company's current effective
income tax rate from 37% to 39% for fiscal year 1994.
FISCAL YEAR 1993 COMPARED TO FISCAL YEAR 1992. The following table summarizes
comparable cafeteria customer traffic for the fiscal years ended June 30, 1993
and 1992:
(Customers in thousands)
______________________________________________________________________________
Year Ended June 30 1993 1992 Customer
____________________________________________________________________
Customers Units Customers Units Change
Units open 12 months in
both periods 48,313 129 50,749 129 -4.8%
Units opened 1,672 1 650 3
Units closed 579 11 2,944 5
________________________________________ ___________
Total 50,564 54,343 -7.0%
======================================== ===========
_________________________________
Cafeteria sales for fiscal year 1993 decreased $19,192,000, or 7.2%, from
fiscal year 1992. The decrease in sales is attributable to the change in same-
store customer traffic and the operations of cafeterias reserved for closing.
Sales from these units, for the first three quarters of fiscal year 1992
($10,109,000), are included in fiscal year 1992 reported amounts. Price
changes had little effect on the comparison of year-to-year sales as the
customer check average for fiscal year 1993 increased 0.7% to $5.00 from $4.96
for fiscal year 1992.
Ralph & Kacoo's restaurant sales decreased $4,466,000, or 15.7%. Most of the
decline is attributable to the operations of restaurants reserved for closing.
Sales from these units, for the first three quarters of fiscal year 1992
($3,220,000), are included in fiscal year 1992 reported amounts. Sales for
restaurants open the entire 12 months of fiscal year 1993 and 1992 decreased
3.8%.
During fiscal year 1993, operating profits (net sales less cost of sales and
other operating expenses) declined from 9.6% of net sales to 8.8% of net
sales. Food costs and labor costs as a percentage of sales increased .7% and
<PAGE> 20
1.2%, respectively. These costs of sales increase to the Company's
emphasis on food quality and customer service.
Provisions for write-offs of certain assets in the third quarter significantly
impacted operating results for fiscal year 1992. The Company recorded
provisions of $45,760,000 ($30,904,000 after-tax, or $3.16 per share)
consisting primarily of a provision for unit closings and the write-off of the
remaining book value of intangible assets associated with the acquisition of
the Ralph & Kacoo's seafood restaurant chain in fiscal year 1989.
Management's decision to write off the remaining book value of the intangible
assets ($10,952,000 after-tax, or $1.12 per share) reflected the lower than
expected financial performance of the restaurant chain. Amortization of these
intangibles, after-tax, was $815,000 for fiscal year 1992 ($.08 per share).
The remaining $31,152,000 ($19,952,000 after-tax, or $2.04 per share),
reflected a provision for the closing of 15 units that had not performed well
and appeared to have limited potential for improvement in the future. This
provision consisted primarily of reserves for the write-off of assets and the
payment of future lease obligations. All of the units reserved for closing
were closed or returned to operations as of June 30, 1993. The closure of
these units has had a positive effect on after-tax cash flow from operations.
Operating results prior to March 31, 1992, for these 15 units, exclusive of
provisions for unit closings and the write-off of intangibles, are summarized
as follows:
(Amounts in thousands--except per share data)
_____________________________________________________________________________
Nine Months Ended March 31 1992
_____________________________________________________________________________
Net sales $13,329
Cost of sales and other operating expenses 16,891
Loss (net of tax benefit) $(2,241)
=============================================================================
Loss (net of tax benefit) per share $ (0.23)
=============================================================================
______________________________________
As of June 30,1994, the Company had 12 properties for which it has continuing
rent obligations not offset by sublease arrangements. Several of these
properties are under varying stages of sublease negotiation. Management will
continue to pursue disposition of those properties at terms favorable to the
Company either through lease buy-out arrangements or subleasing.
KNOWN TRENDS OR UNCERTAINTIES. Generally, the Company has experienced sales
growth primarily from selling price increases and net increases in the number
of operating units. The Company believes that same-store declines in customer
traffic result primarily from the increased number of eating establishments in
the markets where the Company operates. The Company believes that its
programs to enhance product quality, service, and dining atmosphere are
essential to increase customer traffic and ensure long-term profitability and
growth.
Most of the Company's operating costs are subject to inflationary pressures.
Historically, the Company has generally been able to maintain its operating
margins through increases in selling prices.
Congress is considering several proposals for national health care
legislation. Management cannot predict the ultimate passage of such
legislation nor its impact on the Company. The Company does provide health
insurance coverage to those employees who voluntarily participate in the plan.
Generally, the Company absorbs approximately 50% of the costs under the plan.
The Company has recorded expenses (net of employee premiums) for the three
fiscal years ended June 30, 1994, amounting to $3,180,000, $3,224,000, and
$2,999,000, respectively. At June 30, 1994, approximately 25% of the Company's
employees were participating in the plan.
The Company is not aware of other material trends that may be expected to
cause reported financial information not to be indicative of future operating
results or of future financial condition.
<PAGE> 21
EXHIBIT 13(d)
Consolidated Balance Sheets
Piccadilly Cafeterias, Inc.
(Amounts in thousands)
______________________________________________________________________________
Balances at June 30 1994 1993
______________________________________________________________________________
Assets
CURRENT ASSETS
Cash and cash equivalents $ - $ 14,094
Accounts and notes receivable 579 837
Inventories 10,108 12,012
Income taxes recoverable 1,320 1,930
Deferred income taxes 1,494 1,667
Other current assets 1,400 1,396
______________________________________________________________________________
TOTAL CURRENT ASSETS 14,901 31,936
PROPERTY, PLANT & EQUIPMENT
Land 17,970 13,515
Buildings and leasehold improvements 99,829 92,912
Furniture and fixtures 87,444 81,588
Machinery and equipment 15,031 15,446
Construction in progress 8,917 1,689
______________________________________________________________________________
229,191 205,150
Less allowances for depreciation 94,461 87,921
Less allowances for unit closings 1,357 1,832
______________________________________________________________________________
NET PROPERTY, PLANT AND EQUIPMENT 133,373 115,397
OTHER ASSETS 6,499 5,285
______________________________________________________________________________
TOTAL ASSETS $154,773 $152,618
==============================================================================
Liabilities and Shareholders' Equity
CURRENT LIABILITIES
Current portion of long-term debt $ 11,250 $ 3,000
Accounts payable 18,004 15,357
Accrued salaries 4,252 4,330
Accrued taxes, other than income 2,929 2,928
Accrued rent 4,179 3,778
Reserve for unit closings 350 500
______________________________________________________________________________
TOTAL CURRENT LIABILITIES 40,964 29,893
Long-term Debt, less current portion 24,000 36,000
Deferred Income Taxes 7,433 6,728
Reserve for Unit Closings, less current portion 6,502 7,805
Shareholders' Equity
Preferred Stock, no par value; authorized 50,000,000
shares; issued and outstanding: none -- --
Common Stock, no par value, stated value $1.82 per share;
authorized 100,000,000 shares; issued and
outstanding: 10,131,784 shares at June 30, 1994, and
and 9,988,189 shares at June 30, 1993 18,421 18,160
Additional paid-in capital 16,324 15,119
Retained earnings 41,129 38,913
______________________________________________________________________________
TOTAL SHAREHOLDERS' EQUITY 75,874 72,192
______________________________________________________________________________
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $154,773 $152,618
==============================================================================
See Notes to Consolidated Financial Statements
<PAGE> 22
Consolidated Statements of Income
Piccadilly Cafeterias, Inc.
_____________________________________________________________________________
(Amounts in thousands -- except per share data)
______________________________________________________________________________
Year Ended June 30 1994 1993 1992
______________________________________________________________________________
Net Sales $276,223 $271,460 $295,114
Costs and expenses:
Cost of sales 155,411 158,777 166,900
Other operating expense 92,250 88,676 99,892
Provision for unit closings -- -- 31,152
Amortization and write-off of intangibles -- -- 15,849
General and administrative expense 13,541 13,324 13,304
Interest expense 3,089 3,521 4,044
Other expense (income) 379 (497) (295)
______________________________________________________________________________
264,670 263,801 330,846
______________________________________________________________________________
INCOME (LOSS) BEFORE INCOME TAXES 11,553 7,659 (35,732)
Provision for income taxes(benefit) 4,506 2,834 (11,146)
______________________________________________________________________________
NET INCOME(LOSS) $7,047 $4,825 $(24,586)
==============================================================================
Weighted average number of shares outstanding 10,061 9,918 9,789
==============================================================================
Net income (loss) per share $0.70 $0.49 $(2.51)
==============================================================================
See Notes to Consolidated Financial Statements
Consolidated Statements of Changes in Shareholders' Equity
Piccadilly Cafeterias, Inc.
<TABLE>
<CAPTION>
(Amounts in thousands)
__________________________________________________________________________________________________
Additional
Common Stock Paid-In Retained
Shares Amount Capital Earnings
_________________________________________________________________________________________________
<S> <C> <C> <C> <C>
BALANCES AT JUNE 30, 1991 9,729 $17,690 $ 13,561 $ 68,134
Net loss (24,586)
Cash dividends declared (4,699)
Sales under employee stock purchase plan 89 161 526
Sales under dividend reinvestment plan 26 47 184
_________________________________________________________________________________________________
BALANCES AT JUNE 30, 1992 9,844 17,898 14,271 38,849
Net income 4,825
Cash dividends declared (4,761)
Sales under employee stock purchase plan 124 226 669
Sales under dividend reinvestment plan 20 36 179
_________________________________________________________________________________________________
BALANCES AT JUNE 30, 1993 9,988 18,160 15,119 38,913
Net income 7,047
Cash dividends declared (4,831)
Sales under employee stock purchase plan 103 188 843
Sales under dividend reinvestment plan 27 48 242
Sales under employee stock option plan 14 25 120
__________________________________________________________________________________________________
BALANCES AT JUNE 30, 1994 10,132 $18,421 $16,324 $41,129
==================================================================================================
See Notes to Consolidated Financial Statements
</TABLE>
<PAGE> 23
Consolidated Statements of Cash Flows
Piccadilly Cafeterias, Inc.
<TABLE>
<CAPTION>
_______________________________________________________________________________________________
(Amounts in thousands)
_______________________________________________________________________________________________
Year Ended June 30 1994 1993 1992
_______________________________________________________________________________________________
<S> <C> <C> <C>
OPERATING ACTIVITIES
Net income (loss) $ 7,047 $ 4,825 $(24,586)
Adjustments to reconcile net income(loss) to net
cash provided by operating activities:
Depreciation 11,720 11,841 13,296
Amortization and write-off of intangibles -- -- 15,849
Provision for unit closings -- -- 31,152
Cost associated with reserved units (1,587) (2,309) (602)
Provision for deferred income taxes(benefit) 878 4,183 (14,182)
Loss on disposition of assets 1,336 126 177
Pension contributions in excess of pension (1,157) (1,289) (869)
expense
Changes in operating assets and liabilities:
Accounts and notes receivable 258 228 (109)
Inventories 1,904 229 1,637
Income taxes recoverable 610 (1,662) 197
Other current assets (483) 99 70
Other assets (56) 832 452
Accounts payable 2,632 339 220
Accrued expenses and unit closing reserve 324 (660) 973
______________________________________________________________________________________________
NET CASH PROVIDED BY OPERATING ACTIVITIES 23,426 16,782 23,675
INVESTING ACTIVITIES
Purchases of property, plant and equipment (31,895) (9,917) (9,742)
Proceeds from sale of property, plant and
equipment 1,472 1,370 1,448
Proceeds from sales of marketable securities -- 1,671 --
______________________________________________________________________________________________
NET CASH USED BY INVESTING ACTIVITIES (30,423) (6,876) (8,294)
FINANCING ACTIVITIES
Payments on short-term debt due to banks - net -- -- (618)
Payments on long-term debt (3,750) -- (6,480)
Proceeds from sales of Common Stock 1,466 1,110 917
Dividends paid (4,813) (4,761) (4,699)
______________________________________________________________________________________________
NET CASH USED BY FINANCING ACTIVITIES (7,097) (3,651) (10,880)
______________________________________________________________________________________________
Increase(decrease) in cash and cash equivalents (14,094) 6,255 4,501
Cash and cash equivalents at beginning of year 14,094 7,839 3,338
_______________________________________________________________________________________________
Cash and cash equivalents at end of year $ -- $14,094 $ 7,839
==============================================================================================
SUPPLEMENTARY CASH FLOW DISCLOSURES
Income taxes paid (net of refunds received) $ 2,708 $ 414 $ 2,771
==============================================================================================
Interest paid $ 3,433 $ 3,313 $ 4,312
==============================================================================================
See Notes to Consolidated Financial Statements
</TABLE>
<PAGE> 24
Notes To Consolidated Financial Statements
Piccadilly Cafeterias, Inc.
Note A - Significant Accounting Policies
PRINCIPLES OF CONSOLIDATION. The accompanying consolidated financial
statements include the accounts of Piccadilly Cafeterias, Inc. and its
subsidiaries (hereinafter referred to as the Company). All significant
intercompany balances and transactions have been eliminated in consolidation.
INDUSTRY. The Company's principal industry is the operation of Company-owned
cafeterias and seafood restaurants.
CASH EQUIVALENTS. Cash equivalents include those temporary investments that
are readily convertible to known amounts of cash, have original maturities of
three months or less, and have insignificant risk of changes in value due to
changes in interest rates. The carrying amounts reported in the balance sheet
for these instruments approximate their fair values.
INVENTORIES. Inventories consist primarily of food and supplies and are stated
at the lower of cost (first-in, first-out method) or market.
PROPERTY, PLANT AND EQUIPMENT. Property, plant and equipment is stated at
cost. Depreciation is provided using the straight-line method for financial
reporting purposes on the following estimated useful lives:
Buildings and component equipment 10-30 years
Furniture and fixtures 10 years
Machinery and equipment 4 years
Leasehold improvements are amortized over the life of the original lease term,
including renewal periods if applicable. The cost of leasehold improvements
has been reduced by the amount of construction allowances received from
developers and landlords. Repairs and maintenance are charged to operations as
incurred. Renewals and betterments which increase the value or extend the
lives of assets are capitalized and depreciated over their estimated useful
lives. When assets are retired, or are otherwise disposed of, cost and the
related accumulated depreciation are eliminated from the accounts and any
resulting gain or loss is included in the determination of income.
INCOME TAXES. During fiscal 1992, the Company adopted Statement of Financial
Accounting Standards No. 109 (SFAS 109), "Accounting for Income Taxes," which
prescribes the liability method for computing deferred taxes, wherein tax
rates are applied to cumulative temporary differences arising from different
financial and income tax accounting treatment of income and deductions based
on when and how these differences are expected to affect future income tax
returns. Deferred income taxes are adjusted for tax rate changes. The effect
of the adoption of SFAS 109 was not material.
UNIT OPENING EXPENSES. Salaries and wages, training costs and other expenses
of opening new units are charged to expense during the first month of the new
unit's operation.
EARNINGS PER SHARE. Earnings per share of Common Stock are based on the
weighted average number of shares outstanding.
Note B - Provision for Unit Closings and Asset Write-Offs
In March 1992, the Company provided $45,760,000 ($30,904,000 after-tax) for
the write-off of intangible assets and estimated disposition costs of 15
operating units. The write-off of the remaining book value of $14,608,000
($10,952,000 after-tax) of the intangible assets associated with the Ralph &
Kacoo's seafood chain reflected the lower than expected financial performance
of this chain. The remaining $31,152,000 ($19,952,000 after-tax) reflected a
provision for the anticipated closing of 15 units that had not performed well
and appeared to have limited potential for improvement in the future. This
provision consisted primarily of reserves for the write-off of assets and the
payment of future lease obligations. As of June 30, 1993, all of the units
reserved for closing have been closed or returned to operations. Included in
property, plant and equipment, net of related accumulated depreciation, is
$2,671,000 and $3,622,000 at June 30, 1994 and 1993, respectively, for closed
units.
<PAGE> 25
Note C - Income Taxes
Significant components of the Company's deferred tax liabilities and assets
are as follows:
(Amounts in thousands)
______________________________________________________________________________
June 30 1994 1993
______________________________________________________________________________
Deferred tax liabilities:
Property, plant and equipment $11,932 $13,330
Inventories 840 840
______________________________________________________________________________
12,772 14,170
______________________________________________________________________________
Deferred tax assets:
Unit closing reserves 2,704 3,347
Intangible assets 2,524 3,095
Accrued expenses--net 450 892
Jobs tax credit carryforward 452 649
Minimum tax credit carryforward 378 1,126
NOL carryforward 325 --
______________________________________________________________________________
6,833 9,109
______________________________________________________________________________
Net deferred tax liabilities $ 5,939 $ 5,061
==============================================================================
The components of the provision for income taxes (benefit) are summarized
as follows:
(Amounts in thousands)
______________________________________________________________________________
Year Ended June 30 1994 1993 1992
______________________________________________________________________________
Current:
Federal $ 3,079 $(1,034) $ 2,684
State 549 (315) 352
______________________________________________________________________________
3,628 (1,349) 3,036
______________________________________________________________________________
Deferred:
Federal 1,168 3,298 (12,469)
State (290) 885 (1,713)
______________________________________________________________________________
878 4,183 (14,182)
______________________________________________________________________________
Total provision for income taxes (benefit) $ 4,506 $ 2,834 $(11,146)
==============================================================================
Differences between the provision for income taxes (benefit) and the amount
computed by applying the federal statutory income tax rate to income (loss)
before income taxes are as follows:
(Amounts in thousands)
______________________________________________________________________________
Year Ended June 30 1994 1993 1992
______________________________________________________________________________
Income tax (benefit) at statutory rate $ 3,944 $ 2,604 $(12,149)
Add state income taxes (benefit),
net of federal taxes 259 570 (862)
______________________________________________________________________________
4,203 3,174 (13,011)
Amortization and write-off of intangibles -- -- 1,595
Job tax credits (244) -- (296)
Other items 547 (340) 566
______________________________________________________________________________
Total provision for income taxes (benefit) $ 4,506 $ 2,834 $(11,146)
==============================================================================
The Company's tax returns are currently under examination by the Internal
Revenue Service (IRS) for the fiscal years ended June 30, 1987 through 1992.
The IRS has proposed adjustments to the Company's tax returns primarily
related to the amortization of intangible assets and the timing of certain
other deductions. The Company is vigorously contesting these matters and
believes that the ultimate resolution of these examinations will not be
material to the financial position of the Company.
<PAGE> 26
Note D - Commitments
The Company rents most of its cafeteria and restaurant facilities under long-
term leases with varying provisions and with original lease terms generally
being 20 to 30 years. The Company has the option to renew the leases for
specified periods subsequent to their original terms. Minimum future lease
commitments, including $18,533,000 for those units closed (see Note B), as of
June 30, 1994, are as follows:
(Amounts in thousands)
______________________________________________________________________________
Year Ending June 30
______________________________________________________________________________
1995 $ 8,857
1996 8,569
1997 8,214
1998 7,877
1999 7,727
Subsequent 58,605
______________________________________________________________________________
99,849
Less sublease income 5,194
______________________________________________________________________________
Net minimum lease commitments $94,655
==============================================================================
The leases generally provide for percentage rentals based on sales. Certain
leases also provide for payments of executory costs such as real estate taxes,
insurance, maintenance and other miscellaneous charges. Rent expense for the
periods shown below does not include these executory costs.
(Amounts in thousands)
______________________________________________________________________________
Year Ended June 30 1994 1993 1992
______________________________________________________________________________
Minimum rentals $ 7,894 $ 7,627 $ 9,171
Contingent rentals 2,813 3,032 3,350
______________________________________________________________________________
Total $10,707 $10,659 $12,521
==============================================================================
At June 30, 1994, the estimated cost to complete new and remodel units under
construction is $7,650,000.
Note E - Long-Term Debt and Lines of Credit
(Amounts in thousands)
______________________________________________________________________________
June 30 1994 1993
______________________________________________________________________________
10.15% senior notes, due in equal, annual installments
beginning January 31, 1995, and ending January 31, 1999
(Fair value at June 30,1994 - $33,336,000;
June 30, 1993--$34,582,000) $30,000 $30,000
Note payable to bank, due in equal, quarterly
installments of $750,000 beginning July 1, 1993,
and a balloon payment of $4,500,000 due
January 1, 1995 (Fair value at June 30, 1994--
$5,250,000; June 30, 1993 --$9,000,000) 5,250 9,000
______________________________________________________________________________
Total $35,250 $39,000
==============================================================================
The aggregate maturities of long-term debt for each of the five years
following June 30, 1994, are as follows: 1995-$11,250,000, 1996-$6,000,000,
1997-$6,000,000, 1998-$6,000,000, 1999-$6,000,000. The fair value of the
Company's long-term borrowings are estimated using discounted cash flow
analyses, based on the Company's current incremental borrowing rates for
similar types of borrowing arrangements.
In January 1989, the Company issued unsecured senior notes in the principal
amount of $30,000,000 at an interest rate of 10.15%. These notes are payable
at $6,000,000 per year beginning January 31, 1995, and ending on January 31,
1999. The Company has a prepayment option, subject to a premium, which can be
exercised at any time during the term of the senior notes.
The $5,250,000 note payable to bank is unsecured and bears interest based on
applicable rates and margins. The interest rate in effect at June 30, 1994,
(5.734%) was based upon London InterBank Offered Rate (LIBOR) plus 50%. The
<PAGE> 27
Company has a prepayment option, without penalty, who any time during the
term of the note.
Both long-term facilities contain covenants which include provisions for the
maintenance of net worth, limitations on the level of liabilities, and
requirements for minimum coverage of fixed charges. At June 30, 1994, the
Company was in compliance with all such covenants.
The Company has a line-of-credit arrangement with a bank under which up to
$10,000,000 can be borrowed. At June 30, 1994, $10,000,000 was available
under this agreement.
The Company capitalized interest cost of $300,000 in 1994 with respect to
qualifying construction. Total interest cost incurred was $3,389,000 in 1994,
$3,521,000 in 1993 and $4,044,000 in 1992.
Note F - Pension and Bonus Plan
The Company has a pension plan covering substantially all employees who meet
certain age and length-of-service requirements. Retirement benefits are based
upon an employee's years of credited service and final average compensation.
Annual contributions are made in amounts sufficient to fund normal costs as
accrued and to amortize prior service costs over a 40-year period. Assets of
the plan are invested principally in obligations of the United States
Government and other marketable debt and equity securities including 367,662
shares of the Company's Common Stock held at June 30, 1994 and 277,562 shares
at June 30, 1993.
The following tables set forth the plan's funded status and amounts recognized
in the Company's financial statements.
(Amounts in thousands)
______________________________________________________________________________
June 30 1994 1993
______________________________________________________________________________
Accumulated benefit obligations, including vested
benefits of $30,456,000 in 1994 and $27,215,000
in 1993. $33,885 $30,515
==============================================================================
Fair value of plan assets $39,655 $38,045
Projected benefit obligation 39,477 36,041
______________________________________________________________________________
Plan assets over projected benefit obligation 178 2,004
Unrecognized transition amount (1,525) (2,353)
Unrecognized prior service cost (50) 172
Unrecognized net loss 7,071 4,694
______________________________________________________________________________
Prepaid pension cost included in other non-current
assets $ 5,674 $ 4,517
==============================================================================
(Amounts in thousands)
______________________________________________________________________________
Year Ended June 30 1994 1993 1992
______________________________________________________________________________
Net pension expense:
Service cost $ 1,673 $ 1,653 $ 1,833
Interest cost on projected benefit obligation 2,912 2,680 2,674
Actual return on plan assets (1,401) (2,541) (3,081)
Net amortization and deferral (2,749) (1,346) (395)
______________________________________________________________________________
$ 435 $ 446 $ 1,031
==============================================================================
______________________________________________________________________________
June 30 1994 1993 1992
______________________________________________________________________________
Actuarial assumptions:
Discount rate 8.0% 8.25% 8.25%
Compensation increases 4.0% 4.0% 4.0%
Long-term rate of return 9.0% 9.0% 9.0%
<PAGE> 28
The Company also provides bonus compensation to cafeteria and restaurant
managers based on unit profitability. Charges to expense for such compensation
amounted to $9,982,000, $9,305,000, and $10,951,000 during 1994, 1993 and
1992, respectively.
Note G - Common Stock
On August 3, 1987, the Board of Directors adopted the Piccadilly Cafeterias,
Inc. Dividend Reinvestment and Stock Purchase Plan. Shareholders of record may
reinvest quarterly dividends and/or up to $5,000 per quarter in the Company's
Common Stock. Stock obtained through reinvested dividends is issued at a 5%
discount. The Company has reserved 500,000 shares for issuance under the plan.
Common Shares issued under the plan were 26,366 and 19,962 for the years ended
June 30, 1994 and 1993, respectively. At June 30, 1994, there were 407,669
unissued Common Shares reserved under the plan.
On November 2, 1987, the Company's stockholders adopted the Piccadilly
Cafeterias, Inc. Employee Stock Purchase Plan. Under the plan, eligible
employees may be granted options to purchase up to 1,500 shares of Common
Stock annually. Options are exercisable at 85% of the applicable market value
provided that this value is greater than book value per share. If 85% of the
applicable market value is less than book value per share, options are
exercisable at book value per share. Options are exercisable at the applicable
market value if the applicable market value is less than book value per share.
The applicable market value is the lower of the beginning of the plan year and
the end of the plan year market price. Book value per share is determined as
of the most recent audited balance sheet date. The Company has reserved
1,000,000 shares of stock for issuance under the plan. Common Shares issued
under the plan were 103,230 and 124,083 for the years ended June 30, 1994 and
1993, respectively. At June 30, 1994, there were 426,465 unissued shares
reserved under the plan.
On August 8, 1988, the Board of Directors adopted a stockholder rights plan
and declared a dividend distribution of one right on each Common Share
outstanding. Upon the occurrence of certain events, the holders of rights are
entitled to purchase additional shares of the Company's Common Stock from the
Company at an exercise price of $60 per share. Additionally, the holders of
rights may be entitled to purchase either the Company's Common Stock or
securities of an acquiring entity at half of market value.
On November 1, 1993, the Company's stockholders approved the Piccadilly
Cafeterias, Inc. 1993 Incentive Compensation Plan (the 1993 Plan). Under the
terms of the plan, which amends and restates the Piccadilly Cafeterias, Inc.
1988 Stock Option Plan (the 1988 Plan), incentive stock options and non-
qualified stock options, stock appreciation rights, stock awards, restricted
stock, performance shares and cash awards may be granted to officers or key
employees. Options to purchase shares of the Company's Common Stock may be
issued at no less than 100% of the fair market value on the date of grant.
1,000,000 shares, in total, have been reserved for issuance under the 1988 and
1993 Plans. Transactions under the restated Plan for the last three fiscal
years are summarized as follows:
(Dollars in thousands -- except per share data)
______________________________________________________________________________
Common Option Price
___________________
Stock Per Share
Shares Average Total
______________________________________________________________________________
OUTSTANDING AT JUNE 30, 1991 298,000 $ 4,184
Cancelled (77,000) $14.08 (1,084)
Granted 779,000 10.24 7,979
_____________________________________________________ _________
OUTSTANDING AT JUNE 30, 1992 1,000,000 11,079
Cancelled (34,000) 14.09 (480)
Granted 14,000 12.75 179
_____________________________________________________ _________
OUTSTANDING AT JUNE 30, 1993 980,000 10,778
Cancelled (60,500) 14.00 (847)
Exercised (14,000) 10.38 (145)
Granted 67,500 10.61 716
_____________________________________________________ _________
OUTSTANDING AT JUNE 30, 1994 973,000 $10,502
===================================================== =========
<PAGE> 29
Note H - Quarterly Results of Operations (Unaudited)
The following is a tabulation of the unaudited quarterly results of operations
for the two years ended June 30, 1994.
<TABLE>
<CAPTION>
(Amounts in thousands -- except per share data)
______________________________________________________________________________________________________________
Year Ended June 30, 1994 Year Ended June 30, 1993
______________________________________________________________________________________________________________
9/30 12/31 3/31 6/30 9/30 12/31 3/31 6/30
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net sales $69,064 $71,175 $66,733 $69,251 $67,540 $69,340 $65,014 $69,566
Cost of sales and other
operating expense 61,922 63,109 59,730 62,900 61,674 63,612 58,998 63,169
Net income 1,950 2,333 1,687 1,077 1,331 970 1,158 1,366
Net income per share $ .20 $ .23 $ .17 $ .11 $ .14 $ .10 $ .12 $ .14
</TABLE>
<PAGE> 30
EXHIBIT 13(e)
Auditors' Report
Piccadilly Cafeterias, Inc.
Report of Ernst & Young LLP, Independent Auditors
Shareholders and Board of Directors
Piccadilly Cafeterias, Inc.
Baton Rouge, Louisiana
We have audited the accompanying consolidated balance sheets of Piccadilly
Cafeterias, Inc. as of June 30, 1994 and 1993, and the related consolidated
statements of income, changes in shareholders' equity, and cash flows for each
of the three years in the period ended June 30, 1994. These financial
statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the consolidated financial position of Piccadilly
Cafeterias, Inc. at June 30, 1994 and 1993, and the consolidated results of
its operations and its cash flows for each of the three years in the period
ended June 30, 1994 in conformity with generally accepted accounting
principles.
/s/ Ernst & Young LLP
New Orleans, Louisiana
August 1, 1994
PAGE 31
EXHIBIT 21
List of Subsidiaries
Piccadilly Cafeterias, Inc.
(1) Piccadilly Restaurants, Inc.
Louisiana Corporation
100% owned
(2) Cajun Bayou Distributors and Management, Inc.
Louisiana Corporation
100% owned
(3) Liquor PR, Inc.
Texas Corporation
49% owned
PAGE 32
EXHIBIT 23
We consent to the incorporation by reference in this Annual Report (Form 10-K)
of Piccadilly Cafeterias, Inc. of our report dated August 1, 1994, included in
the 1994 Annual Report to Shareholders of Piccadilly Cafeterias, Inc.
Our audits also included the financial statement schedules of Piccadilly
Cafeterias, Inc. listed in Item 14(a). These schedules are the responsibility
of the Company's management. Our responsibility is to express an opinion
based on our audits. In our opinion, the financial statement schedules
referred to above, when considered in relation to the basic financial
statements taken as a whole, present fairly in all material respects the
information set forth therein.
We also consent to the incorporation by reference in the Registration
Statements (Form S-8 No. 33-17737; Form S-3 No. 33-17131; and Form S-8 No. 33-
27793) and in the related Prospectuses of our report dated August 1, 1994,
with respect to the consolidated financial statements incorporated herein by
reference and our report included in the preceding paragraph with respect to
the financial statement schedules included in this Annual Report (Form 10-K)
of Piccadilly Cafeterias, Inc.
/s/ Ernst & Young LLP
New Orleans, Louisiana
September 26, 1994
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM CONSOLIDATED
FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUN-30-1994
<PERIOD-END> JUN-30-1994
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 579
<ALLOWANCES> 0
<INVENTORY> 10,108
<CURRENT-ASSETS> 14,901
<PP&E> 229,191
<DEPRECIATION> 94,461
<TOTAL-ASSETS> 154,773
<CURRENT-LIABILITIES> 40,964
<BONDS> 0
<COMMON> 18,421
0
0
<OTHER-SE> 57,453
<TOTAL-LIABILITY-AND-EQUITY> 154,773
<SALES> 276,223
<TOTAL-REVENUES> 276,223
<CGS> 155,411
<TOTAL-COSTS> 261,581
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 3,089
<INCOME-PRETAX> 11,553
<INCOME-TAX> 4,506
<INCOME-CONTINUING> 7,047
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 7,047
<EPS-PRIMARY> 0.70
<EPS-DILUTED> 0.70
</TABLE>
