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, 1997
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[ ] Transition report pursuant to section 13 or 15(d) of the securities
exchange act of 1934
For the transition period from to
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Commission file number: 0-9037
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Piccadilly Cafeterias, Inc.
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(Exact name of registrant as specified in its charter)
Louisiana 72-0604977
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
3232 Sherwood Forest Blvd., Baton Rouge, Louisiana 70816
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (504)293-9440
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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
April 30, 1997, was 10,503,368.
PART I -- Financial Information
Item 1. Financial Statements (Unaudited)
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
Piccadilly Cafeterias, Inc.
(Amounts in thousands)
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Balances at March 31 June 30
1997 1996
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ASSETS
CURRENT ASSETS
Accounts and notes receivable $ 630 $ 619
Inventories 10,069 10,087
Deferred income taxes 1,834 2,434
Other current assets 1,035 579
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TOTAL CURRENT ASSETS 13,568 13,719
PROPERTY, PLANT AND EQUIPMENT 244,609 245,424
Less allowances for depreciation and unit closings 118,187 116,412
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NET PROPERTY, PLANT AND EQUIPMENT 126,422 129,012
OTHER ASSETS 6,348 5,549
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TOTAL ASSETS $146,338 $148,280
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LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 9,443 $ 8,387
Accrued interest 966 3,588
Accrued expenses 18,267 22,494
Current portion of long-term debt 6,000 6,000
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TOTAL CURRENT LIABILITIES 34,676 40,469
LONG-TERM DEBT, less current portion 28,260 25,700
DEFERRED INCOME TAXES 3,268 3,768
RESERVE FOR UNIT CLOSINGS 3,820 5,050
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 10,503,368
shares at March 31, 1997 and at June 30, 1996 19,096 19,096
Additional paid-in capital 18,555 18,555
Retained earnings 38,663 35,642
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TOTAL SHAREHOLDERS' EQUITY 76,314 73,293
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $146,338 $148,280
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See Note 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
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1997 1996 1997 1996
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Net Sales $ 74,160 $ 73,100 $227,129 $224,047
Cost and expenses:
Cost of sales 42,029 41,422 130,912 127,310
Other operating expenses 24,556 25,020 74,971 75,254
General and administrative
expenses 2,812 2,887 8,289 9,931
Interest expense 736 932 2,264 2,976
Other expense (income) (149) (66) (306) 79
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69,984 70,195 216,130 215,550
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INCOME BEFORE INCOME TAXES 4,176 2,905 10,999 8,497
Provision for income taxes 1,587 1,104 4,180 3,228
NET INCOME $ 2,589 $ 1,801 $ 6,819 $ 5,269
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Weighted average number of
shares outstanding 10,512 10,453 10,506 10,373
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Net income per share $ .25 $ .17 $ .65 .51
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Cash dividends per share $ .12 $ .12 $ .36 .36
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See Note to Condensed Consolidated Financial Statements (Unaudited)
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Piccadilly Cafeterias, Inc.
(Amounts in thousands)
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Nine Months Ended March 31 1997 1996
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OPERATING ACTIVITIES
Net income $ 6,819 $ 5,269
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation 9,013 9,789
Costs associated with reserved units (1,085) (454)
Provision for deferred income taxes 100 1,095
Loss on sale of assets 107 307
Pension expense -- net of contributions (879) 707
Change in operating assets and liabilities (5,814) (2,943)
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NET CASH PROVIDED BY OPERATING ACTIVITIES 8,261 13,770
INVESTING ACTIVITIES
Purchase of property, plant and equipment (7,172) (5,689)
Proceeds from sale of property, plant and
equipment 171 136
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CASH USED IN INVESTING ACTIVITIES (7,001) (5,553)
FINANCING ACTIVITIES
Proceeds from short-term debt due to banks -- net --- 6,480
Proceeds from (payments on) long-term debt -- net 2,560 (12,000)
Proceeds from sales of Common Stock--net of stock
repurchases (12) 1,027
Dividends paid (3,808) (3,724)
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NET CASH USED IN FINANCING ACTIVITIES (1,260) (8,217)
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Increase (decrease) in cash and cash equivalents --- ---
Cash and cash equivalents at beginning of period --- ---
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Cash and cash equivalents at end of period $ --- $ ---
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See Note to Condensed Consolidated Financial Statements (Unaudited)
NOTE TO CONDENSED FINANCIAL STATEMENTS (Unaudited)
Piccadilly Cafeterias, Inc.
March 31, 1997
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 ending 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
1997 Third Quarter Compared to 1996 Third Quarter
Same-store cafeteria sales increased 4.0% reflecting a 0.3% increase in
same-store customer traffic and the price increase implemented October 1,
1996. Same-store sales for Ralph & Kacoo's seafood restaurants decreased
1.1%.
Food cost as a percentage of sales increased 0.2% from inflationary
pressures. This increase was offset by a 0.2% decrease in labor cost.
Other operating expense as a percentage of sales decreased 1.1% over
the prior year reflecting decreases in depreciation and workers compensation
costs. Interest expense decreased $196,000 reflecting both lower debt
levels and lower cost of debt.
Nine Months Ended 3/31/97 Compared to Nine Months Ended 3/31/96
Same-store cafeteria sales increased 4.0% reflecting a 1.4% increase in
same-store customer traffic and the October 1, 1996 price increase. Same-
store sales for Ralph & Kacoo's decreased 5.5%, as sales were impacted by
normal leveling of new-unit volume at the Birmingham, Alabama restaurant,
which opened in April, 1995.
Cost of sales as a percentage of sales increased 0.8% over the prior
year. Food and labor cost both increased 0.4%. Prior year general and
administrative expense includes severance charges of $1,300,000 relating to
the elimination of about 100 jobs. Other expense (income) improved $385,000
over the prior year as a result of a net decrease of $465,000 in losses from
asset dispositions from the prior year.
Liquidity and Capital Resources
Net cash provided by operating activities decreased $5,509,000. The
Company contributed $2,500,000 to its pension plan during the current year
first quarter. No contributions were made in the first three quarters of
fiscal 1996. Costs associated with reserve units increased $631,000 as the
Company paid lease termination costs of $609,000. Net changes in other
operating assets and liabilities reflects an increase of $2,965,000 in
estimated income tax payments for the comparable nine-month periods.
As of March 31, 1997, a total of $8,740,000 was available under two line of
credit arrangements. 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 (1), as amended
on September 14, 1987(2), as amended on September 27, 1988
(3), and as amended on September 28, 1989(4).
3.2 By-Laws of the Company, as amended through July 22, 1996(5).
27 Financial Data Schedule
(b) Reports on Form 8-K -- None.
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(1) 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.
(2) Incorporated by reference from the Registrant's Annual Report on Form
10-K for the fiscal year ended June 30, 1987.
(3) Incorporated by reference from the Registrant's Annual Report on Form
10-K for the fiscal year ended June 30, 1988.
(4) Incorporated by reference from the Registrant's Annual Report on Form
10-K for the fiscal year ended June 30, 1989.
(5) Incorporated by reference to the Registrant's Quarterly Report on Form
10-Q for the quarter ended September 30, 1996.
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.
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(Registrant)
By:/s/ Ronald A. LaBorde
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Ronald A. LaBorde
President and Chief Executive
Officer
May 7, 1997
/s/ Ronald A. LaBorde 05/07/97
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Ronald A. LaBorde, President, Chief Executive Date
Officer, and Director
/s/ J. Fred Johnson 05/07/97
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J. Fred Johnson, Executive Vice President, Chief Date
Financial Officer and Treasurer (Principal
Financial Officer)
/s/ Mark L. Mestayer 05/07/97
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Mark L. Mestayer, Executive Vice President, Date
Secretary & Director of Finance
(Principal Accounting Officer)
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Statements for the period ending March 31, 1997 and is qualified
in its entirety by reference to such financial statements.
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