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 March 31, 1996
[ ] 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
May 1, 1996, was 10,453,368.
PART I -- Financial Information
Item 1. Financial Statements (Unaudited)
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
Piccadilly Cafeterias, Inc.
(Amounts in thousands)
______________________________________________________________________________
March 31 June 30
Balances at 1996 1995
______________________________________________________________________________
ASSETS
CURRENT ASSETS
Accounts and notes receivable $ 650 $ 482
Inventories 10,046 10,584
Deferred income taxes 1,416 1,416
Other current assets 1,336 627
______________________________________________________________________________
TOTAL CURRENT ASSETS 13,448 13,109
PROPERTY, PLANT AND EQUIPMENT 251,760 248,504
Less allowances for depreciation 110,368 102,444
Less allowances for unit closings 696 801
______________________________________________________________________________
NET PROPERTY, PLANT AND EQUIPMENT 140,696 145,259
OTHER ASSETS 5,892 6,753
______________________________________________________________________________
TOTAL ASSETS $160,036 $165,121
==============================================================================
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Short-term debt due to banks $ --- $ 20,577
Accounts payable 16,082 17,998
Other current liabilities 13,698 14,305
Current portion of long-term debt 6,000 6,000
______________________________________________________________________________
TOTAL CURRENT LIABILITIES 35,780 58,880
LONG-TERM DEBT, less current portion 33,020 18,000
DEFERRED INCOME TAXES 7,882 6,787
RESERVE FOR UNIT CLOSINGS, less current portion 4,361 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 10,453,368
shares at March 31, 1996 and 10,316,946
shares at June 30, 1995 19,006 18,758
Additional paid-in capital 18,193 17,416
Retained earnings 41,794 40,271
______________________________________________________________________________
TOTAL SHAREHOLDERS' EQUITY 78,993 76,445
______________________________________________________________________________
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $160,036 $165,121
==============================================================================
See Notes to Condensed Consolidated Financial Statements (Unaudited)
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
Piccadilly Cafeterias, Inc.
(Amounts in thousands - except per share data)
______________________________________________________________________________
Three Months Ended Nine Months Ended
March 31 March 31
______________________________________________________________________________
1996 1995 1996 1995
______________________________________________________________________________
Net sales $ 73,100 $ 69,066 $224,047 $213,256
Cost and expenses:
Cost of sales 41,422 39,197 127,310 121,389
Other operating expense 25,020 23,222 75,254 71,519
General and administrative
expense 2,887 3,540 9,931 10,313
Interest expense 932 1,058 2,976 2,760
Other expense (income) (66) 76 79 858
______________________________________________________________________________
70,195 67,093 215,550 206,839
______________________________________________________________________________
INCOME BEFORE INCOME TAXES 2,905 1,973 8,497 6,417
Provision for income taxes 1,104 770 3,228 2,503
______________________________________________________________________________
NET INCOME $ 1,801 $ 1,203 $ 5,269 $ 3,914
==============================================================================
Weighted average number
of shares outstanding 10,453 10,301 10,373 10,198
==============================================================================
Net income per share $ .17 $ .12 $ .51 $ .38
==============================================================================
Cash dividends per share $ .12 $ .12 $ .56 $ .36
==============================================================================
See Notes to Condensed Consolidated Financial Statements (Unaudited)
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Piccadilly Cafeterias, Inc.
(Amounts in thousands)
_______________________________________________________________________________
Nine Months Ended March 31 1996 1995
OPERATING ACTIVITIES
Net income $ 5,269 $ 3,914
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation 9,789 9,545
Costs associated with reserved units (454) (975)
Provision for deferred income taxes 1,095 450
Loss on disposition of assets 307 675
Pension expense -- net of contributions 707 (497)
Change in operating assets and liabilities (2,943) 118
_______________________________________________________________________________
NET CASH PROVIDED BY OPERATING ACTIVITIES 13,770 13,230
INVESTING ACTIVITIES
Purchase of property, plant and equipment (5,689) (24,502)
Proceeds from sale of property, plant and equipment 136 149
_______________________________________________________________________________
CASH (USED) IN INVESTING ACTIVITIES (5,553) (24,353)
FINANCING ACTIVITIES
Proceeds from debt due to banks - net 6,480 24,733
Payments on long-term debt (12,000) (11,250)
Proceeds from sales of Common Stock 1,027 1,291
Dividends paid (3,724) (3,651)
_______________________________________________________________________________
NET CASH PROVIDED(USED) IN FINANCING ACTIVITIES (8,217) 11,123
_______________________________________________________________________________
Increase (decrease) in cash and cash equivalents --- ---
Cash and cash equivalents at beginning of period --- ---
_______________________________________________________________________________
Cash and cash equivalents at end of period $ --- $ ---
===============================================================================
See Notes to Condensed Consolidated Financial Statements (Unaudited)
NOTES TO CONDENSED FINANCIAL STATEMENTS (Unaudited)
Piccadilly Cafeterias, Inc.
March 31, 1996
Note A -- Basis of Presentation
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.
Note B -- Long-Term Debt
During the third quarter ended March 31, 1996, the Company accelerated
an additional $6,000,000 on its 10.15% senior notes. During April
1996, the Company finalized its restructuring of its short-term debt
obligations into long-term facilities, effective March 31, 1996.
These facilities include revolving line-of-credit arrangements with
two banks for up to $38,500,000.
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Same-store cafeteria customer traffic for the third quarter of fiscal
year 1996 increased 3.7% over the prior year third quarter as total
customer traffic increased 3.8%. Same-store cafeteria customer
traffic for the nine months ended March 31, 1996, increased 2.3% as
total customer traffic increased 2.8%.
Cafeteria sales for the third quarter of fiscal year 1996 increased
$3,150,000, or 5.0%, over the prior year third quarter. Same-store
cafeteria sales for the quarter ended March 31, 1996, increased
$3,058,000, or 4.9% over the same period last year. Ralph & Kacoo's
restaurant sales increased $865,000, or 14.6%, over the prior year
third quarter. Same-store restaurant sales for the quarter ended
March 31, 1996, decreased $280,000, or 4.7%, over the same period last
year.
Cafeteria sales for the nine months ended March 31, 1996, increased
$7,594,000, or 3.9% from the same prior year nine-month period. Same-
store cafeteria sales for the nine months ended March 31, 1996,
increased $6,189,000 or 3.3%, from the same prior year nine-month
period. Restaurant sales for the nine months ended March 31, 1996,
increased $3,128,000, or 17.7%, from the prior year nine-month period.
Same-store restaurant sales for the nine months ended March 31, 1996,
decreased $810,000, or 4.6%, over the same period last year.
Third quarter general and administrative expense decreased $653,000,
or 18.4%, from the prior year third quarter as a result of reduced
corporate expenses. General and administrative expense for the nine
months ended March 31, 1996 includes a $1,300,000 restructuring
charge. General and administrative expense for the same period last
year includes severance benefits totaling $361,000.
Other expense (income) for the nine months ended March 31, 1995
includes a $733,000 charge for the write-off of certain assets
associated with the Company's remodeling program.
As of March 31, 1996, $11,480,000 was available under the credit
arrangements described in Note B to the condensed financial
statements. These facilities, together with cash flow from
operations, are adequate to provide for future requirements.
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> amended on September
27, 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.
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
May 7, 1996
/s/ J. Fred Johnson 5/07/96
__________________________________________________ ___________
J. Fred Johnson, Executive Vice President, Chief Date
Financial Officer and Treasurer (Principal
Financial Officer)
/s/ Mark L. Mestayer 5/07/96
__________________________________________________ ___________
Mark L. Mestayer, Executive Vice President, Date
Controller and Secretary (Principal Accounting
Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains financial information from condensed financial statements
for the period ending March 31, 1996 and is qualified in its entirety by
reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
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<PERIOD-END> MAR-31-1996
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0
0
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<OTHER-SE> 59,987
<TOTAL-LIABILITY-AND-EQUITY> 160,036
<SALES> 224,047
<TOTAL-REVENUES> 224,047
<CGS> 127,310
<TOTAL-COSTS> 212,495
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