FORM 10-Q
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-Q
[X] Quarterly report pursuant to section 13 or 15(d) of the
securities exchange act of 1934
For the quarterly period ended September 30, 1995
[ ] Transition report pursuant to section 13 or 15(d) of the
securities exchange act of 1934
For the transition period from to
Commission file number: 0-9037
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
Not applicable
(Former name, former address and former fiscal year, if changed
since last report)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes [X] No [ ]
The number of shares outstanding of Common Stock, without par
value, as of November 6, 1995, was 10,333,450.
<PAGE>
PART I -- Financial Information
Item 1. Financial Statements (Unaudited)
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
Piccadilly Cafeterias, Inc.
(Amounts in thousands)
===============================================================================
Balances at September 30, 1995 June 30, 1995
_______________________________________________________________________________
ASSETS
CURRENT ASSETS
Accounts and notes receivable $ 462 $ 482
Inventories 10,596 10,584
Deferred income taxes 1,416 1,416
Other current assets 337 627
_______________________________________________________________________________
TOTAL CURRENT ASSETS 12,811 13,109
PROPERTY, PLANT AND EQUIPMENT 250,653 248,504
Less allowances for depreciation 105,361 102,444
Less allowances for unit closings 724 801
_______________________________________________________________________________
NET PROPERTY, PLANT AND EQUIPMENT 144,568 145,259
OTHER ASSETS 6,413 6,753
_______________________________________________________________________________
TOTAL ASSETS $163,792 $165,121
_______________________________________________________________________________
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Short-term debt due to banks $ 17,920 $ 20,577
Current portion of long-term debt 6,000 6,000
Accounts payable 17,660 17,998
Income taxes payable 1,741 1,038
Accrued expenses 13,859 13,013
Reserve for unit closings 254 254
_______________________________________________________________________________
TOTAL CURRENT LIABILITIES 57,434 58,880
LONG-TERM DEBT, less current portion 18,000 18,000
DEFERRED INCOME TAXES 7,079 6,787
RESERVE FOR UNIT CLOSINGS, less current portion 4,737 5,009
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 10,333,450 shares at
September 30, 1995 and 10,316,946 shares at
June 30, 1995 18,788 18,758
Additional paid-in capital 17,524 17,416
Retained earnings 40,230 40,271
_______________________________________________________________________________
TOTAL SHAREHOLDERS' EQUITY 76,542 76,445
_______________________________________________________________________________
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $163,792 $165,121
_______________________________________________________________________________
See Note to Condensed Consolidated Financial Statements (Unaudited)
<PAGE>
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
Piccadilly Cafeterias, Inc.
(Amounts in thousands - except per share data)
===============================================================================
Three Months Ended September 30 1995 1994
_______________________________________________________________________________
Net sales $ 75,140 $ 70,779
Cost and expenses:
Cost of sales 42,820 40,583
Other operating expense 24,947 23,981
General and administrative expense 4,234 3,656
Interest expense 1,028 781
Other expense 178 341
_______________________________________________________________________________
73,207 69,342
_______________________________________________________________________________
INCOME BEFORE INCOME TAXES 1,933 1,437
Provision for income taxes 735 560
_______________________________________________________________________________
NET INCOME $ 1,198 $ 877
_______________________________________________________________________________
Weighted average number of shares outstanding 10,333 10,141
_______________________________________________________________________________
Net income per share $ .12 $ .09
_______________________________________________________________________________
Cash dividends per share $ .12 $ .12
_______________________________________________________________________________
See Note to Condensed Consolidated Financial Statements (Unaudited)
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Piccadilly Cafeterias, Inc.
(Amounts in thousands)
_______________________________________________________________________________
Three Months Ended September 30 1995 1994
_______________________________________________________________________________
OPERATING ACTIVITIES
Net income $ 1,198 $ 877
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation 3,257 3,049
Costs associated with reserved units (273) (364)
Provision for deferred income taxes 292 300
Loss on sale of assets 330 371
Pension expense -- net of contributions 330 (255)
Change in operating assets and liabilities 1,354 (794)
_______________________________________________________________________________
NET CASH PROVIDED BY OPERATING ACTIVITIES 6,488 3,184
INVESTING ACTIVITIES
Purchase of property, plant and equipment (2,812) (13,513)
Proceeds from sale of property, plant and equipment 81 29
_______________________________________________________________________________
CASH USED IN INVESTING ACTIVITIES (2,731) (13,484)
FINANCING ACTIVITIES
Proceeds from (payments on) short-term debt
due to banks -- net (2,657) 12,177
Proceeds from sales of Common Stock 138 89
Payments on long-term debt --- (750)
Dividends paid (1,238) (1,216)
_______________________________________________________________________________
NET CASH PROVIDED(USED) IN FINANCING ACTIVITIES (3,757) 10,300
_______________________________________________________________________________
Increase (decrease) in cash and cash equivalents --- ---
Cash and cash equivalents at beginning of period --- ---
_______________________________________________________________________________
Cash and cash equivalents at end of period $ --- $ ---
_______________________________________________________________________________
See Note to Condensed Consolidated Financial Statements (Unaudited)
<PAGE>
NOTE TO CONDENSED FINANCIAL STATEMENTS (Unaudited)
Piccadilly Cafeterias, Inc.
September 30, 1995
The accompanying unaudited condensed consolidated financial statements
have been prepared in accordance with the instructions to Form 10-Q and
do not include all of the information and footnotes required by
generally accepted accounting principles for complete financial
statements. In the opinion of management, all adjustments (consisting
of normal recurring accruals) considered necessary for a fair
presentation have been included.
Comparative results of operations by periods may be affected by the
timing of the opening of new units. Quarterly results are additionally
affected by seasonal fluctuations in customer volume. Customer volume
at established units is generally higher in the second quarter ended
December 31 and lower in the third quarter ending March 31 reflecting
the general seasonal retail activity. A fluctuation in customer volume
has a disproportionate effect on operating profit.
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
The following table summarizes comparable cafeteria customer traffic
for the quarters ended September 30, 1995 and 1994:
<TABLE>
<CAPTION>
(Customers in thousands)
___________________________________________________________________________________________________
Quarter Ended September 30 1995 1994 Customer
___________________________________________________________________________________________________
Customers Units Customers Units Change
<S> <C> <C> <C> <C> <C>
___________________________________________________________________________________________________
Units open three months in both periods 11,915 127 11,721 127 1.7%
Units opened 512 5 (A) 131 3
Units closed --- -- 169 3 (B)
_____________________________________________________ _________
Total customers 12,427 12,021 3.4%
_____________________________________________________ _________
</TABLE>
(A) Includes cafeterias opened after June 30, 1994
(B) Includes cafeterias closed after June 30, 1994
Cafeteria sales for the first quarter of fiscal year 1995 increased
$2,994,000, or 4.6%, over the prior year first quarter. Same store
cafeteria sales for the quarter ended September 30, 1995 increased
$1,547,000, or 2.5% over the same period last year. Ralph & Kacoo's
restaurant sales increased $1,367,000, or 23.2%, over the prior year
first quarter. Same store restaurant sales for the quarter ended
September 30, 1995 decreased $203,000, or 3.4% over the same period last
year.
General and administrative expense for the first quarter of fiscal
1996 includes a $1,300,000 restructuring charge resulting from the
elimination of approximately 100 jobs. The majority of these jobs were
related to maintenance positions at the operating level. Additionally,
three field supervisor positions as well as three positions on the
corporate staff were eliminated. General and administrative expense for
the prior year first quarter includes severance benefits totaling
$361,000 related to the resignation of James W. Bennett as Chairman and
Chief Executive Officer.
Current year other expense includes a $164,000 charge related to the
closing of a Spartanburg, South Carolina cafeteria in the second
quarter. A replacement unit in Spartanburg will open in the second
quarter. Prior year other expense includes a $329,000 charge for the
write-off of certain assets associated with the Company's major
remodeling program.
During fiscal year 1995, the Company canceled its five-year major
remodel plans. 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. All fiscal 1996 remodels
are expected to be minor.
The following table presents a summary of capital expenditures for
the quarters ended September 30, 1995 and 1994:
<TABLE>
<CAPTION>
(Amounts in thousands-except number of units)
______________________________________________________________________________________________
Quarter Ended September 30 1995 1994
______________________________________________________________________________________________
Amounts Units Amounts Units
<S> <C> <C> <C>
New units opened $ --- --- $ 6,201 3
Remodels completed 396 7 3,354 4
Net increase(decrease) in
construction-in progess 853 8
Land purchases 847 2,455
Other 716 1,495
____________________________________________________ _________
Total capital expenditures $ 2,812 $ 13,513
____________________________________________________ _________
<PAGE>
PART II -- Other Information
Item 1. Legal proceedings
None.
Item 2. Changes in securities
None.
Item 3. Defaults upon senior securities
None.
Item 4. Submission of matters to vote of security holders
None.
Item 5. Other information
None.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
3.1 Articles of Incorporation of the Registrant <F1>, as amended
on September 14, 1987<F2>, as amended on September 27, 1988,
<F3> and as amended on September 28, 1989.<F4>
3.2 By-laws of Registrant, as amended through June 19, 1995.<F5>
27 Financial Data Schedule
(b) Reports on Form 8-K -- None.
<FN>
<F1> Incorporated by reference from the Registrant's Registration Statement
on Form S-1 (Registration No. 2-63249) filed with the Commission on
December 19, 1978.
<F2> Incorporated by reference from the Registrant's Annual Report on Form
10-K for the fiscal year ended June 30, 1987.
<F3> Incorporated by reference from the Registrant's Annual Report on Form
10-K for the fiscal year ended June 30, 1988.
<F4> Incorporated by reference from the Registrant's Annual Report on Form
10-K, as amended, for the fiscal year ended June 30, 1989.
<F5> Incorporated by reference from the Registrant's Annual Report on Form
10-K for the fiscal year ended June 30, 1995.
</FN>
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities and 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
President and Chief
Executive Officer
November 10, 1995
/s/ Ronald A. LaBorde 11/10/95
_________________________________________________ __________
Ronald A. LaBorde, President, Chief Executive Date
Officer, and Director
/s/ J. Fred Johnson 11/10/95
_________________________________________________ __________
J. Fred Johnson, Executive Vice President, Chief Date
Financial Officer and Treasurer
(Principal Financial Officer)
/s/ Mark L. Mestayer 11/10/95
_________________________________________________ __________
Mark L. Mestayer, Executive Vice President, Date
Controller and Secretary (Principal Accounting
Officer)
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
Statements for the period ending September 30, 1995 and is qualified in its
entirety by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1995
<PERIOD-END> SEP-30-1995
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 462
<ALLOWANCES> 0
<INVENTORY> 10,596
<CURRENT-ASSETS> 12,811
<PP&E> 250,653
<DEPRECIATION> 105,361
<TOTAL-ASSETS> 163,792
<CURRENT-LIABILITIES> 57,434
<BONDS> 0
<COMMON> 18,788
0
0
<OTHER-SE> 57,754
<TOTAL-LIABILITY-AND-EQUITY> 163,792
<SALES> 75,140
<TOTAL-REVENUES> 75,140
<CGS> 42,820
<TOTAL-COSTS> 72,179
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,028
<INCOME-PRETAX> 1,933
<INCOME-TAX> 735
<INCOME-CONTINUING> 1,198
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,198
<EPS-PRIMARY> 0.12
<EPS-DILUTED> 0.12
</TABLE>
