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 December 31, 1994
_________________
[ ] 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 January 23, 1995, was 10,301,646.
<PAGE>
PART I -- Financial Information
Item 1. Financial Statements (Unaudited)
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
Piccadilly Cafeterias, Inc.
<TABLE>
<CAPTION>
(Amounts in thousands)
_________________________________________________________________________________
December 31 June 30
Balances at 1994 1994
_________________________________________________________________________________
<S> <C> <C>
ASSETS
CURRENT ASSETS
Accounts and notes receivable $ 581 $ 579
Inventories 10,701 10,108
Income taxes recoverable 135 1,320
Deferred income taxes 1,494 1,494
Other current assets 1,149 1,400
_________________________________________________________________________________
TOTAL CURRENT ASSETS 14,060 14,901
PROPERTY, PLANT AND EQUIPMENT 245,775 229,191
Less allowances for depreciation 97,756 94,461
Less allowances for unit closings 1,395 1,357
_________________________________________________________________________________
NET PROPERTY, PLANT AND EQUIPMENT 146,624 133,373
OTHER ASSETS 6,859 6,499
_________________________________________________________________________________
TOTAL ASSETS $167,543 $154,773
_________________________________________________________________________________
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Short-term debt due to banks $ 12,110 $ ---
Current portion of long-term debt 10,500 11,250
Accounts payable 17,448 18,004
Accrued expenses 12,099 11,360
Reserve for unit closings 425 350
_________________________________________________________________________________
TOTAL CURRENT LIABILITIES 52,582 40,964
LONG-TERM DEBT, less current portion 24,000 24,000
DEFERRED INCOME TAXES 8,033 7,433
RESERVE FOR UNIT CLOSINGS, less current portion 5,588 6,502
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 10,288,140 shares at December 31, 1994 and
10,131,784 shares at June 30, 1994 18,705 18,421
Additional paid-in capital 17,231 16,324
Retained earnings 41,404 41,129
_________________________________________________________________________________
TOTAL SHAREHOLDERS' EQUITY 77,340 75,874
_________________________________________________________________________________
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $167,543 $154,773
_________________________________________________________________________________
See Note to Condensed Consolidated Financial Statements (Unaudited)
</TABLE>
<PAGE>
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
Piccadilly Cafeterias, Inc.
<TABLE>
<CAPTION>
(Amounts in thousands - except per share data)
_________________________________________________________________________________
Three Months Ended Six Months Ended
December 31 December 31
_________________________________________________________________________________
1994 1993 1994 1993
_________________________________________________________________________________
<S> <C> <C> <C> <C>
Net sales $ 73,411 $ 71,175 $144,190 $140,239
Cost and expenses:
Cost of sales 41,609 39,645 82,192 78,678
Other operating expense 24,316 23,464 48,297 46,353
General and administrative expense 3,117 3,228 6,773 6,665
Interest expense 921 825 1,702 1,656
Other expense (income) 441 189 782 (134)
_________________________________________________________________________________
70,404 67,351 139,746 133,218
_________________________________________________________________________________
INCOME BEFORE INCOME TAXES 3,007 3,824 4,444 7,021
Provision for income taxes 1,173 1,491 1,733 2,738
_________________________________________________________________________________
NET INCOME $ 1,834 $ 2,333 $ 2,711 $ 4,283
_________________________________________________________________________________
Weighted average number of shares
outstanding 10,155 10,002 10,148 9,999
_________________________________________________________________________________
Net income per share $ .18 $ .23 $ .27 $ .43
_________________________________________________________________________________
Cash dividends per share $ .12 $ .12 $ .24 $ .24
_________________________________________________________________________________
See Note to Condensed Consolidated Financial Statements (Unaudited)
</TABLE>
<PAGE>
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Piccadilly Cafeterias, Inc.
<TABLE>
<CAPTION>
(Amounts in thousands)
_________________________________________________________________________________
Six Months Ended December 31 1994 1993
_________________________________________________________________________________
<S> <C> <C>
OPERATING ACTIVITIES
Net income $ 2,711 $ 4,283
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation 6,286 5,659
Costs associated with reserved units (661) (825)
Provision for deferred income taxes 600 ---
Loss on disposition of assets 733 369
Pension contributions in excess of pension expense (376) (621)
Change in operating assets and liabilities 1,039 1,169
_________________________________________________________________________________
NET CASH PROVIDED BY OPERATING ACTIVITIES 10,332 10,034
INVESTING ACTIVITIES
Purchase of property, plant and equipment (20,593) (11,166)
Proceeds from sale of property, plant and equipment 143 1,034
_________________________________________________________________________________
CASH USED IN INVESTING ACTIVITIES (20,450) (10,132)
FINANCING ACTIVITIES
Proceeds from short-term debt due to banks - net 12,110 ---
Proceeds from sales of Common Stock 1,191 1,164
Payments on long-term debt (750) (1,500)
Dividends paid (2,433) (2,398)
_________________________________________________________________________________
NET CASH PROVIDED(USED) IN FINANCING ACTIVITIES 10,118 (2,734)
_________________________________________________________________________________
Increase (decrease) in cash and cash equivalents --- (2,832)
Cash and cash equivalents at beginning of period --- 14,094
_________________________________________________________________________________
Cash and cash equivalents at end of period $ --- $ 11,262
_________________________________________________________________________________
See Note to Condensed Consolidated Financial Statements (Unaudited)
</TABLE>
<PAGE>
NOTE TO CONDENSED FINANCIAL STATEMENTS (Unaudited)
Piccadilly Cafeterias, Inc.
December 31, 1994
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
In addition to the four new cafeterias completed in the first two
quarters of this fiscal year, one new cafeteria and one seafood
restaurant are anticipated to be completed by the end of the fiscal
year. Through December 31, 1994, twelve remodels have been completed
and no further "grand-style" remodels are scheduled. The Company will
continue to refurbish units on as-needed basis. The following table
presents a summary of capital expenditures for the six months ended
December 31, 1994 and 1993:
<TABLE>
<CAPTION>
(Amounts in thousands-except number of units)
_________________________________________________________________________________________
Six Months Ended December 31 1994 1993
_________________________________________________________________________________________
Amounts Units Amounts Units
_________________________________________________________________________________________
<S> <C> <C> <C> <C>
New units opened $ 8,535 4 $ 3,538 2
Remodels completed 8,871 12 786 1
Net increase(decrease) in
construction-in-progress (1,503) 3,253
Land purchases 2,459 1,027
Other 2,231 2,562
_______________________________________________________ ________
Total capital expenditures $20,593 $11,166
_______________________________________________________ ________
</TABLE>
Working capital at December 31, 1994 decreased $12,549,000 from June 30,
1994, primarily due to the level of capital expenditures. The Company
has unsecured lines of credit totaling $30,000,000 which mature on June
30, 1995. As of February 1, 1995, $2,704,000 was available under these
facilities. Internally generated cash flows, combined with existing
lines of credit, will be sufficient to fund capital expenditures and
other obligations for the remainder of fiscal 1995.
The following table summarizes comparable cafeteria customer traffic for
the three months ended December 31, 1994 and 1993:
<TABLE>
<CAPTION>
(Customers in thousands)
______________________________________________________________________________________________________
Quarter Ended December 31 1994 1993
____________________________________________________________________________________ Customer
Customers Units Customers Units Change
______________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C>
Units open three months in both periods 11,718 125 11,970 125 -2.1%
Units opened 531 6 (A) 68 1
Units closed 92 2 418 6 (B)
__________________________________________________ _________
Total customers 12,341 12,456 -0.9%
__________________________________________________ _________
(A) Includes cafeterias opened after September 30, 1993.
(B) Includes cafeterias closed after September 30, 1993.
</TABLE>
Cafeteria sales for the second quarter of fiscal year 1995 increased
$1,928,000, or 2.9%, over the prior year second quarter. The check
average increased 3.6% from $5.23 for the second quarter of fiscal year
1994 to $5.42 for the comparable period of fiscal 1995. Ralph & Kacoo's
restaurant sales increased $309,000, or 5.6%, over the prior year second
quarter.
Operating profits (net sales less cost of sales and other operating
expenses) slipped to 10.2% of sales for the second quarter of fiscal
year 1995 as compared to 11.3% for the same period of the prior year.
Food and labor costs as a percentage of sales increased 1.0% and other
operating expenses increased 0.1%.
The change in other expense (income) results primarily from a
combination of the non-cash charges resulting from the write-off of
certain assets associated with the Company's remodeling program totaling
$404,000 in the second quarter of fiscal 1995 compared to $76,000 in the
second quarter of fiscal 1994.
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 -- None.
(b) Reports on Form 8-K -- None.
<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
Executive Vice President
February 1, 1995
/s/ Malcolm T. Stein, Jr. 2/1/95
_____________________________________________________ _______
Malcolm T. Stein, Jr., President, Chief Operating Date
Officer, and Director*
/s/ James F. Durham, Jr. 2/1/95
_____________________________________________________ _______
James E. Durham, Jr., Senior Executive Vice Date
President, and Director*
/s/ Ronald A. LaBorde 2/1/95
_____________________________________________________ _______
Ronald A. LaBorde, Executive Vice President, Date
Treasurer, Chief Financial Officer, Principal
Financial Officer, and Director*
/s/ Mark L. Mestayer 2/1/95
_____________________________________________________ _______
Mark L. Mestayer, Executive Vice President, Date
Secretary, Controller, and Principal Accounting
Officer
* Member of the Management Committee (Co-Principal Executive Officer).
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION FROM CONDENSED FINANCIAL
STATEMENTS FOR THE PERIOD ENDING DECEMBER 31, 1994 AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANICAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-1995
<PERIOD-END> DEC-31-1994
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 581
<ALLOWANCES> 0
<INVENTORY> 10,701
<CURRENT-ASSETS> 14,060
<PP&E> 245,775
<DEPRECIATION> 97,756
<TOTAL-ASSETS> 167,543
<CURRENT-LIABILITIES> 52,582
<BONDS> 0
<COMMON> 18,705
0
0
<OTHER-SE> 58,635
<TOTAL-LIABILITY-AND-EQUITY> 167,543
<SALES> 144,190
<TOTAL-REVENUES> 144,190
<CGS> 82,192
<TOTAL-COSTS> 138,044
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,702
<INCOME-PRETAX> 4,444
<INCOME-TAX> 1,733
<INCOME-CONTINUING> 2,711
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,711
<EPS-PRIMARY> 0.27
<EPS-DILUTED> 0.27
</TABLE>
