<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q/A-1
Quarterly Report under Section 13 or 15 (d) of
The Securities Exchange Act of 1934
For Quarter Ended: Commission File Number
July 17, 1996 0-14370
BUFFETS, INC.
(Exact name of registrant as specified in its charter)
Minnesota 41-1462294
(State of incorporation) (I.R.S. Employer Identification No.)
10260 Viking Drive, Eden Prairie, MN 55344
(Address of principal executive offices)
(612) 942-9760
(Registrant's telephone number)
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 the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Class Outstanding as of August 26,1996
----- --------------------------------
Common Stock, $.01 par value 31,348,534 shares
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BUFFETS, INC. AND SUBSIDIARIES
INDEX
Page No.
--------
PART I. FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements:
Consolidated Balance Sheets-
January 3, 1996 and July 17, 1996..................... 3
Consolidated Statements of Earnings-
Twenty-Eight Weeks ended July 12, 1995
and July 17, 1996 and Twelve Weeks ended
July 12, 1995 and July 17, 1996....................... 4
Consolidated Statements of Cash Flows-
Twenty-Eight Weeks ended July 12, 1995
and July 17, 1996..................................... 5
Notes to Consolidated Financial
Statement............................................. 6
2
<PAGE>
Part I. FINANCIAL INFORMATION
Item 1. CONSOLIDATED FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
BUFFETS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
JANUARY 3, JULY 17,
ASSETS 1996 1996
------------- -------------
(IN THOUSANDS)
<S> <C> <C>
CURRENT ASSETS:
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . $ 13,375 $ 20,584
Receivable from landlords . . . . . . . . . . . . . . . . . . . . . . 2,028 2,186
Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,044 2,934
Notes receivable. . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Prepaid rents . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,950 1,077
Other current assets. . . . . . . . . . . . . . . . . . . . . . . . . 1,435 1,261
Refundable income taxes . . . . . . . . . . . . . . . . . . . . . . . 1,829
Deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . . 5,723 6,312
----------- -----------
TOTAL CURRENT ASSETS . . . . . . . . . . . . . . . . . . . . . . 29,395 34,354
----------- -----------
PROPERTY AND EQUIPMENT:
Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,135 8,158
Building. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,221 15,421
Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164,371 171,461
Leasehold improvements. . . . . . . . . . . . . . . . . . . . . . . . 122,125 128,778
----------- -----------
307,852 323,818
Less accumulated depreciation and amortization. . . . . . . . . . . . 87,225 100,321
----------- -----------
220,627 223,497
GOODWILL, net of accumulated amortization of $1,163 and
$1,318, respectively. . . . . . . . . . . . . . . . . . . . . . . . . 5,365 5,210
OTHER ASSETS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 520 463
----------- -----------
$255,907 $263,524
----------- -----------
----------- -----------
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable. . . . . . . . . . . . . . . . . . . . . . . . . . . $ 24,375 $ 21,160
Accrued payroll and related benefits. . . . . . . . . . . . . . . . . 12,602 11,231
Accrued rents . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,306 9,465
Accrued sales taxes . . . . . . . . . . . . . . . . . . . . . . . . . 2,463 2,626
Other accrued expenses. . . . . . . . . . . . . . . . . . . . . . . . 8,656 10,260
Income taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,555
----------- -----------
TOTAL CURRENT LIABILITIES. . . . . . . . . . . . . . . . . . . . 57,402 59,297
LONG-TERM DEBT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,000 5,000
MINORITY INTEREST IN CONSOLIDATED SUBSIDIARIES. . . . . . . . . . . . . .
DEFERRED INCOME . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 598 387
DEFERRED INCOME TAXES . . . . . . . . . . . . . . . . . . . . . . . . . . 11,979 12,641
STOCKHOLDERS' EQUITY:
Preferred stock, $.01 par value; authorized 5,000 shares;
none issued and outstanding
Common stock, $.01 par value; authorized 60,000 shares;
issued and outstanding 31,282 and
31,358 shares, respectively. . . . . . . . . . . . . . . . . . . 313 313
Additional paid-in capital. . . . . . . . . . . . . . . . . . . . . . 52,728 53,233
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . 118,887 132,653
----------- -----------
TOTAL STOCKHOLDERS' EQUITY . . . . . . . . . . . . . . . . . . . 171,928 186,199
----------- -----------
$255,907 $263,524
----------- -----------
----------- -----------
</TABLE>
See Notes to Consolidated Financial Statements.
3
<PAGE>
BUFFETS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(UNAUDITED)
<TABLE>
<CAPTION>
TWENTY-EIGHT WEEKS ENDED TWELVE WEEKS ENDED
------------------------ ------------------
JULY 12, JULY 17, JULY 12, JULY 17,
1995 1996 1995 1996
-------- --------- -------- --------
(IN THOUSANDS, EXCEPT PER SHARE AMOUNT)
<S> <C> <C> <C> <C>
RESTAURANT SALES . . . . . . . . . . . . . . $261,372 $287,386 $119,282 $131,451
RESTAURANT COSTS:
Food Costs . . . . . . . . . . . . . . . 91,337 98,988 41,505 44,415
Labor Costs. . . . . . . . . . . . . . . 73,668 82,011 33,163 35,978
Direct and occupancy costs . . . . . . . 59,256 68,707 26,633 30,400
-------- --------- -------- --------
Total restaurant costs . . . . . . . . . 224,261 249,706 101,301 110,793
-------- --------- -------- --------
RESTAURANT PROFITS . . . . . . . . . . . . . 37,111 37,680 17,981 20,658
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES. . . . . . . . . 14,034 15,846 5,820 7,640
-------- --------- -------- --------
23,077 21,834 12,161 13,018
OTHER INCOME (EXPENSE) . . . . . . . . . . . 118 372 52 238
-------- --------- -------- --------
EARNINGS BEFORE INCOME TAXES . . . . . . . . 23,195 22,206 12,213 13,256
INCOME TAXES . . . . . . . . . . . . . . . . 8,815 8,440 4,642 5,039
-------- --------- -------- --------
NET EARNINGS . . . . . . . . . . . . . . . . $ 14,380 $ 13,766 $ 7,571 $ 8,217
-------- --------- -------- --------
-------- --------- -------- --------
NET EARNINGS PER COMMON AND
COMMON EQUIVALENT SHARE . . . . . . . . . . $.46 $.44 $.24 $.26
-------- --------- -------- --------
-------- --------- -------- --------
WEIGHTED AVERAGE COMMON AND
COMMON EQUIVALENT SHARES
OUTSTANDING . . . . . . . . . . . . . . . . 31,231 31,550 31,331 31,541
</TABLE>
See Notes to Consolidated Financial Statements.
4
<PAGE>
BUFFETS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
Twenty-Eight Weeks Ended
---------------------------
JULY 12, JULY 17,
1995 1996
--------- --------
(IN THOUSANDS)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings . . . . . . . . . . . . . . . . . . . . . . $14,380 $13,766
Adjustments to reconcile net earnings
to net cash provided by operating activities:
Depreciation and amortization . . . . . . . . . . . . 12,946 14,540
Tax benefit from early disposition of common stock. . 146 70
Deferred income . . . . . . . . . . . . . . . . . . . (211)
Deferred income taxes . . . . . . . . . . . . . . . . (350) 73
Changes in assets and liabilities net of
acquisitions:
Inventory. . . . . . . . . . . . . . . . . . . . . (351) 110
Other current assets . . . . . . . . . . . . . . . (909) 1,058
Refundable income taxes . . . . . . . . . . . . . 1,829
Other assets . . . . . . . . . . . . . . . . . . . 74 3
Accounts payable . . . . . . . . . . . . . . . . . (1,149) (3,215)
Accrued payroll and related benefits . . . . . . . 2,088 (1,371)
Other accrued expenses . . . . . . . . . . . . . . 3,431 1,926
Income taxes currently payable . . . . . . . . . . 2,621 4,555
------- -------
Total adjustments. . . . . . . . . . . . . . . . 18,547 19,367
------- -------
Net cash provided by operating activities . . . . 32,927 33,133
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures, net of retirements . . . . . . . . (32,337) (18,912)
Cash received from landlords . . . . . . . . . . . . . . 4,240 1,553
Purchase of Des Moines Royal Fork restaurant . . . . . . (850)
------- -------
Net cash used in investing activities . . . . . (28,987) (17,359)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of employee's stock options . . . 1,366 435
Payments of long-term debt . . . . . . . . . . . . . . . (1,000) (9,000)
------- -------
Net cash provided by (used in) financing
activities. . . . . . . . . . . . . . . . . . . 366 (8,565)
------- -------
NET INCREASE IN CASH AND CASH EQUIVALENTS. . . . . . . . . 4,306 7,209
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR . . . . . . 6,822 13,375
------- -------
CASH AND CASH EQUIVALENTS AT END OF PERIOD . . . . . . . . $11,128 $20,584
------- -------
------- -------
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest (net of capitalized interest of $243,000 and
$164,000 in 1995 and 1996, respectively) . . . . . . . . $ 95 $ 16
Income taxes . . . . . . . . . . . . . . . . . . . . . . 6,398 1,920
</TABLE>
See Notes to Consolidated Financial Statements.
5
<PAGE>
BUFFETS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. In the opinion of Management, the accompanying unaudited consolidated
financial statements contain all adjustments (consisting only of normal
recurring adjustments) necessary to present fairly the financial position
of Buffets, Inc. and subsidiaries as of July 17, 1996 and the results of
operations for the twelve weeks ended July 12, 1995 and July 17, 1996 and
the results of operations and cash flows for the twenty-eight weeks ended
July 12, 1995 and July 17, 1996.
2. These statements should be read in conjunction with the Notes to
Consolidated Financial Statements contained in the Company's Annual Report
on Form 10-K for the fiscal year ended January 3, 1996 and with
Management's Discussion and Analysis of Financial Condition and Results of
Operations appearing on pages 7 thru 10 of this quarterly report.
6
<PAGE>
SIGNATURES
Pursuant to the requirements 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.
BUFFETS, INC.
(Registrant)
September 11, 1996
/s/ Roe H. Hatlen
---------------------------
Roe H. Hatlen
Chairman of the Board,
Chief Executive Officer
(Principal Executive Officer)
/s/ Clark C. Grant
---------------------------
Clark C. Grant
Executive Vice President of
Finance and Administration
and Treasurer
(Principal Financial
Officer)
7
