<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended October 5, 1997
---------------
[ ] TRANSITION REPORT PURSUANT TO 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the transition period from _________ to __________
Commission file number 0-26400
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LOGAN'S ROADHOUSE, INC.
- --------------------------------------------------------------------------------
(Exact name of Registrant as specified in its charter)
<TABLE>
<S> <C>
TENNESSEE 62-1602074
- ------------------------------------------------------------- ---------------------------------
(State or other jurisdiction of incorporation or organization) (IRS Employer Identification No.)
</TABLE>
P.O. BOX 291047, NASHVILLE, TN 37229
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(Address of principal executive offices)
615 885-9056
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(Registrant's telephone number, including area code)
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(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
----- -----
APPLICABLE ONLY TO CORPORATE ISSUERS
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date:
Class Outstanding November 14, 1997
----- -----------------------------
Common stock, $.01 par value 7,140,418 shares
<PAGE> 2
PART I - FINANCIAL INFORMATION
ITEM 1 - FINANCIAL STATEMENTS
LOGAN'S ROADHOUSE, INC.
BALANCE SHEETS
<TABLE>
<CAPTION>
October 5, 1997 Dec. 29, 1996
Assets (Unaudited) (Audited)
- -------------------------------------------------------- --------------- --------------
<S> <C> <C>
Current assets:
Cash and cash equivalents $22,976,225 780,307
Investments, at amortized cost 4,700,000 7,807,289
Receivables: trade and other 720,410 501,911
Inventories 421,521 250,582
Preopening costs 1,004,555 831,563
Prepaid expenses and other current assets 1,006,783 270,356
----------- ----------
Total current assets 30,829,494 10,442,008
Investments, at amortized cost -- 1,253,444
Property, plant and equipment, net 43,282,226 33,691,774
Other assets 109,599 71,873
----------- ----------
Total assets $74,221,319 45,459,099
=========== ==========
Liabilities and Shareholders' Equity
- --------------------------------------------------------
Current liabilities:
Accounts payable $ 1,286,544 2,656,152
Accrued payroll and related expenses 584,492 883,675
Deferred revenue 270,610 392,376
Income taxes payable 637,104 89,163
Accrued state and local taxes 768,540 488,072
Deferred income taxes 299,800 299,800
----------- ----------
Total current liabilities 3,847,090 4,809,238
Deferred income taxes 648,028 648,028
----------- ----------
Total liabilities 4,495,118 5,457,266
Shareholders' equity (note 2):
Common stock, $0.01 par value;
Authorized 15,000,000 shares; issued
7,139,468 and 6,013,784 shares, respectively 71,395 60,138
Additional paid-in capital 59,874,334 35,072,026
Retained earnings 9,780,472 4,869,669
----------- ----------
Total shareholders' equity 69,726,201 40,001,833
----------- ----------
Total liabilities and shareholders' equity $74,221,319 45,459,099
=========== ==========
</TABLE>
See accompanying notes to financial statements.
2
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LOGAN'S ROADHOUSE, INC.
STATEMENTS OF EARNINGS
(UNAUDITED)
<TABLE>
<CAPTION>
Twelve Weeks Ended: Forty Weeks Ended:
------------------- ------------------
Oct. 5, 1997 Oct. 6, 1996 Oct. 5, 1997 Oct. 6, 1996
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Net restaurant sales $16,074,078 10,139,129 49,936,187 30,121,482
Costs and expenses:
Food and beverage 5,310,584 3,422,300 16,407,928 10,057,474
Labor and benefits 4,516,586 2,768,998 13,851,315 8,241,402
Occupancy and other 2,357,629 1,450,431 7,263,857 4,454,500
Depreciation and amortization 908,803 450,935 2,709,413 1,311,219
General and administrative 744,879 569,829 2,638,407 1,863,337
----------- ---------- ---------- ----------
13,838,481 8,662,493 42,870,920 25,927,932
----------- ---------- ---------- ----------
Income from operations 2,235,597 1,476,636 7,065,267 4,193,550
Other income (expense):
Interest, net 258,709 126,917 374,707 221,500
Franchise fee and royalties 72,584 24,167 152,092 57,458
----------- ---------- ---------- ----------
331,293 151,084 526,799 278,958
----------- ---------- ---------- ----------
Earnings before income taxes 2,566,890 1,627,720 7,592,066 4,472,508
Income tax expense (note 3) 847,073 537,147 2,681,262 1,542,814
----------- ---------- ---------- ----------
Net earnings $ 1,719,817 1,090,573 4,910,804 2,929,694
=========== ========== ========== ==========
Earnings per share $ 0.24 0.18 0.75 0.51
=========== ========== ========== ==========
Weighted average shares outstanding 7,235,908 6,193,952 6,550,575 5,707,611
=========== ========== ========== ==========
</TABLE>
See accompanying notes to financial statements.
3
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LOGAN'S ROADHOUSE, INC.
STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
Forty Weeks Ended
-----------------
October 5, 1997 October 6, 1996
--------------- ---------------
<S> <C> <C>
Cash flows from operating activities:
Net earnings $ 4,910,804 2,929,694
Adjustments to reconcile net earnings to net
cash provided by operating activities:
Depreciation and amortization 2,709,413 1,311,219
Net effect of changes in current assets and
current liabilities (461,655) 98,133
------------ -----------
Net cash provided by operating activities 7,158,562 4,339,046
------------ -----------
Cash flows from investing activities:
Additions to property, plant and equipment (10,991,928) (12,490,613)
Proceeds from maturities of investments 1,253,444 --
Increase in other assets (37,725) (15,300)
------------ -----------
Net cash used by investing activities (9,776,209) (12,505,913)
------------ -----------
Cash flows from financing activities:
Net proceeds from public offering 24,566,019 20,758,942
Proceeds from exercise of stock options 247,546 --
Payments on long-term obligations -- (2,579,251)
------------ -----------
Net cash provided by financing activities 24,813,565 18,179,691
------------ -----------
Net increase (decrease) in cash 22,195,918 10,012,824
Cash and cash equivalents, beginning of period 780,307 2,260,776
------------ -----------
Cash and cash equivalents, end of period $ 22,976,225 12,273,600
============ ===========
</TABLE>
See accompanying notes to financial statements.
4
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LOGAN'S ROADHOUSE, INC.
NOTES TO UNAUDITED FINANCIAL STATEMENTS
FORTY WEEKS ENDED OCTOBER 5, 1997 AND OCTOBER 6, 1996
(1) BASIS OF PRESENTATION
The accompanying financial statements have been prepared by the Company
without audit, with the exception of the December 29, 1996 balance sheet which
was derived from the audited financial statements included in the Company's
December 29, 1996 Annual Report. The financial statements include balance
sheets, statements of earnings and statements of cash flows which have been
prepared in accordance with generally accepted accounting principles for interim
financial reporting and in accordance with Rule 10-01 of Regulation S-X. These
financial statements, note disclosures and other information should be read in
conjunction with the "Selected Financial Data" and financial statements and the
notes thereto included in the Company's December 29, 1996 Annual Report.
In the opinion of management, the unaudited interim financial
statements contained in this report reflect all adjustments, consisting of only
normal recurring accruals, which are necessary for a fair presentation of the
financial position and the results of operations for the interim periods
presented. The results of operations for any interim period are not necessarily
indicative of results for the full year.
For accounting purposes, the Company has adopted a 52/53 week fiscal
year ending on the last Sunday in December. For financial reporting purposes,
the first quarter consists of 16 weeks with the second, third and fourth
quarters each consisting of 12 weeks (13 weeks in the fourth quarter of a 53
week year).
(2) SHAREHOLDERS' EQUITY
During April 1996, the Company completed a public offering of 862,500
shares of Common Stock at $26 per share. After deducting underwriting discounts
and expenses of the offering, proceeds to the Company amounted to approximately
$20.8 million. From the net proceeds, the Company repaid approximately $2.3
million of outstanding indebtedness.
On May 9, 1996, the Company's Board of Directors authorized a
three-for-two stock split in the form of a 50% stock dividend which was payable
on June 5, 1996, to shareholders of record on May 20, 1996. Prior to the stock
split, the Company had 4,007,500 shares of Common Stock outstanding. A total of
2,003,729 shares of Common Stock were issued in connection with the stock split.
All references in the accompanying financial statements to weighted-average
shares outstanding and per share amounts have been restated to reflect the stock
split.
On July 23, 1997, the Company completed a public offering whereby
1,100,000 shares of Common Stock were sold at $24 per share. Proceeds to the
Company (after underwriting discounts and expenses) amounted to approximately
$24.6 million. The Company had 7,139,468 shares of Common Stock outstanding at
October 5, 1997.
5
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(3) INCOME TAXES
The provision for income taxes for the nine months (40 weeks) ended
October 5, 1997 and the comparable period of 1996 consists of both federal and
state taxes. The Company's effective tax rates for the above periods were 35.3%
for 1997 and 34.5% for 1996. The current period increase is primarily
attributable to a decline in tax exempt interest income during the first six
months of 1997.
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
GENERAL
The following discussion includes comments and data relating to the
Company's financial condition and results of operations for the third quarter
(12 weeks) and nine months (40 weeks) ended October 5, 1997. This section should
be read in connection with the "Selected Financial Data" and financial
statements and related notes included in the Company's December 29, 1996 Annual
Report.
At the time of the Company's initial public offering in July 1995, the
Company had eight restaurants in operation located primarily in middle
Tennessee. The Company completed its second public offering of Common Stock in
April 1996 at which time it operated ten restaurants. The Company has continued
its expansion strategy and currently operates 24 restaurants located in Alabama,
Georgia, Indiana, Kentucky, Louisiana, Tennessee and West Virginia. In addition,
the Company franchises two restaurants in Oklahoma and one in South Carolina.
On July 23, 1997 the Company completed its third public offering
raising net proceeds of approximately $24.6 million. The Company plans to use
the proceeds, together with cash on hand, cash flow from operations and lease
financing to open 12 or 13 new restaurants during the remainder of 1997 and
1998. The Company's ability to expand the number of its restaurants will depend
on a number of factors, including the selection and availability of quality
restaurant sites, the negotiation of acceptable lease or purchase terms, the
securing of required governmental permits and approvals, the adequate
supervision of construction, the hiring, training and retaining of skilled
management and other personnel which may be difficult given the low unemployment
rates in the areas in which the Company intends to operate. There can be no
assurance that the Company will be successful in opening the number of
restaurants anticipated in a timely manner. Furthermore, there can be no
assurance that the Company's new restaurants will generate sales revenue or
profit margins consistent with those of the Company's existing restaurants, or
that new restaurants will be operated profitably.
RESULTS OF OPERATIONS
The following table sets forth, for the periods indicated, the
percentages which items in the statements of earnings bear to net sales.
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<TABLE>
<CAPTION>
PERCENTAGE OF NET RESTAURANT SALES
----------------------------------
Third Quarter Nine Months
(12 Weeks Ended) (40 Weeks Ended)
-------------- --------------
Oct. 5, 1997 Oct. 6, 1996 Oct. 5, 1997 Oct. 6, 1996
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Net restaurant sales ................... 100.0% 100.0% 100.0% 100.0%
Costs and expenses:
Food and beverage .................... 33.0 33.8 32.9 33.4
Labor and benefits ................... 28.1 27.3 27.7 27.4
Occupancy and other .................. 14.7 14.3 14.5 14.8
Depreciation and amortization ........ 5.7 4.4 5.4 4.3
General and administrative ........... 4.6 5.6 5.3 6.2
----- ----- ----- -----
Total operating costs and expenses.. 86.1 85.4 85.9 86.1
----- ----- ----- -----
Income from operations ............. 13.9 14.6 14.1 13.9
Other income (expense), net ............ 2.1 1.5 1.1 .9
----- ----- ----- -----
Earnings before income taxes ...... 16.0 16.1 15.2 14.8
Income tax expense ..................... 5.3 5.3 5.4 5.1
----- ----- ----- -----
Net earnings ...................... 10.7% 10.8% 9.8% 9.7%
===== ===== ===== =====
</TABLE>
NET RESTAURANT SALES
Net restaurant sales increased $5,934,949 or 58.5% during the third
quarter of 1997 (12 weeks) and increased $19,814,705 or 65.8% during the nine
month period (40 weeks) ended October 5, 1997, compared to the corresponding
periods of last year. The Company had 23 restaurants in operation at October 5,
1997 compared to 14 at October 6, 1996. The Company has opened eight new
restaurants through the third quarter of 1997; five during the first quarter,
two during the second quarter, and one during the third quarter. The substantial
growth in sales for both the third quarter and nine month period is primarily
attributable to the opening of nine new restaurants since the third quarter of
1996. In addition, a 1.5% menu price increase was implemented on February 1,
1997.
For the third quarter and nine month period of 1997, same store sales
declined 2.8% and 1.1%, respectively, when compared to the corresponding periods
of last year. The 2.8% decline for the third quarter is primarily attributable
to two restaurants in smaller markets. Although both units continue to achieve
annualized sales levels in excess of $3.6 million, volume was lower relative to
prior year periods because of increased competition in the market.
Alcoholic beverage sales, consisting of liquor and beer, accounted for
11.0% and 11.3% of net restaurant sales for the nine month periods ended October
5, 1997 and October 6, 1996, respectively. Management attributes the decrease to
an overall increase in the Company's lunch sales and a relative decrease in
liquor sales as a percentage of alcoholic beverage sales.
8
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FOOD AND BEVERAGE COSTS
This category primarily consists of the cost of all food and beverages,
including alcoholic and non-alcoholic beverages. In addition, the cost of
peanuts, which are complimentary to customers, are reflected in this category.
Food and beverage costs decreased 0.8% as a percentage of net sales
from 33.8% in the third quarter of 1996 to 33.0% in the third quarter of 1997
and decreased 0.5% from 33.4% for the nine-month period ended October 6, 1996 to
32.9% for the nine-month period ended October 5, 1997. Management attributes the
overall decreases in both periods to lower produce, cheese and dairy prices. In
addition, cost increases were partially offset by a 1.5% menu price increase in
February 1997. The prices of the Company's commodities (beef, pork, chicken,
seafood and produce) are subject to seasonal fluctuations. Accordingly, food
cost results for the third quarter ended October 5, 1997 may not be indicative
of results to be expected for the year. The Company has historically experienced
higher food costs during the spring (second quarter) and summer (third quarter)
time periods.
LABOR AND BENEFITS
Labor and benefits include restaurant management salaries, bonuses,
hourly wages for unit level employees, payroll taxes and various employee
benefit programs.
As a percentage of net sales, labor and benefits increased 0.8% from
27.3% in the third quarter of 1996 to 28.1% in the third quarter of 1997 and
increased 0.3% from 27.4% for the nine months ended October 6, 1996 to 27.7% for
the nine months ended October 5, 1997.
During the current nine-month period of 1997, eight new restaurants
have been opened, compared to five for the corresponding period of last year.
The increases of 0.8% in the third quarter and 0.3% for the nine-month period
are primarily attributable to operating on lower average unit volumes. In
addition, operating weeks for new restaurants opened are higher this year as
compared to the corresponding periods of last year. Generally, when a new
restaurant opens, management budgets and incurs labor costs approximately 15%
higher than normal to accommodate the initial increased business and to ensure a
high level of food quality and service to its customers. As the new staff gains
experience over a 30-60 day post-opening period, hourly labor schedules are
gradually adjusted to provide maximum efficiency with existing sales volume.
OCCUPANCY AND OTHER
Occupancy and other costs and expenses are primarily fixed in nature
and, with the exception of advertising, generally do not vary with unit sales
volume. Rent, insurance, property taxes, utilities, maintenance and advertising
account for the major expenditures in this category.
Occupancy and other costs as a percentage of net sales increased 0.4%
from 14.3% in the third quarter of 1996 to 14.7% in the third quarter of 1997
and decreased 0.3% from 14.8% for the nine month period ended October 5, 1996 to
14.5% for the nine months ended October 6, 1997.
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As a result of operating with a larger restaurant base during 1997,
occupancy and other costs and expenses have increased in total absolute dollars.
The 0.4% increase in the third quarter is due to the effect of operating on
lower average unit volumes. The 0.3% percentage decline in the nine-month period
is primarily attributable to advertising expenses which were higher last year
than the normally budgeted 2% of net sales. Various production and media costs
accounted for the increase.
DEPRECIATION AND AMORTIZATION
The Company records depreciation on its property and equipment on a
straight-line basis over an estimated useful life. In addition, this category
also includes amortization of a new restaurant's preopening costs, which include
costs of hiring and training the initial staff and certain other costs. The
preopening costs are amortized over a one-year period commencing with a
restaurant's opening. As of October 5, 1997, preopening costs, net of
amortization, were $1,004,555.
For the third quarter of 1997, depreciation and amortization amounted
to $908,803, an increase of $457,868 or 101.5% over the comparable period in
1996. For the nine-month period ended October 5, 1997, these expenses amounted
to $2,709,413, an increase of $1,398,194 or 106.6% over the comparable period in
1996. As a percentage of net restaurant sales, these expenses increased 1.3%
from 4.4% for the third quarter of 1996 to 5.7% for the third quarter of 1997
and increased 1.1% from 4.3% for the nine months ended October 6, 1996 to 5.4%
for the nine months ended October 5, 1997. These increases are primarily the
result of increased depreciation and amortization resulting from the opening of
14 new restaurants since the beginning of 1996. Although the Company prefers to
own rather than lease its restaurant facilities and plans to pursue this policy,
where possible, in subsequent quarters, the Company will continue to lease
properties in certain locations.
GENERAL AND ADMINISTRATIVE
General and administrative expenses include all corporate and
administrative functions that serve to support the existing restaurant base and
provide the infrastructure for future growth. Management, supervisory and staff
salaries, employee benefits, data processing, training, rent and costs
associated with being a public company are the major items of expense in this
category.
For the third quarter of 1997, general and administrative expenses
amounted to $744,879, an increase of $175,050 or 30.7% over the comparable
period in 1996. For the nine-month period ended October 5, 1997, these expenses
amounted to $2,638,407, an increase of $775,070 or 41.6% over the comparable
period in 1996. As a percentage of net sales, these expenses declined 1.0% from
5.6% for the third quarter of 1996 to 4.6% for the third quarter of 1997 and
declined 0.9% from 6.2% for the nine months ended October 6, 1996 to 5.3% for
the nine months ended October 5, 1997.
The dollar increase is primarily attributable to the Company
significantly expanding its management and staff personnel in the areas of
finance, accounting, human resources, operations, training and real estate
reflecting the increased level of organizational support necessary to support
the Company's growing restaurant base. Since July 1995, the Company has also
incurred certain additional costs associated with operating as a public company.
Because of
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the Company's expansion plans and the expected increase in net sales as a result
thereof, management expects these expenses to continue to increase during 1997
in absolute dollars, but to remain approximately the same as the 5.3% rate, for
the nine months ended October 5, 1997. For a discussion of factors affecting the
Company's plans to open additional restaurants, see "General."
OTHER INCOME (EXPENSE)
Net interest income (interest income minus interest expense) from cash,
cash equivalents and investments amounted to $258,709 and $126,917 for the third
quarters of 1997 and 1996, respectively. For the nine-month period ended October
5, 1997, net interest income amounted to $374,707, compared to $221,500 in the
corresponding period last year. On July 23, 1997 the Company completed a public
offering of shares of Common Stock with net proceeds amounting to approximately
$24.6 million. Accordingly, during the third quarter of 1997, with higher levels
of invested cash, the Company generated increased interest income from its
various taxable and non-taxable investments.
The Company's third franchised restaurant was opened in Greenville,
South Carolina in July 1997. In connection with the opening, the Company
recognized as income the initial non-refundable $30,000 franchise fee collected.
During the first nine months of 1997, royalty fees of $122,092 were received
from the three franchised restaurants.
INCOME TAXES
The effective tax rates for the third quarters of 1997 and 1996 were
33.0%, respectively. For the nine-month period, the effective tax rates for 1997
and 1996 were 35.3% and 34.5%, respectively. The increase in the 1997 tax rate
to 35.3% is attributable to a decline in tax-exempt interest income during the
first six months of 1997.
NET EARNINGS
As a result of the factors discussed above, net earnings in the third
quarter of 1997 increased $629,244 or 57.7% to $1,719,817, or 10.7% of net
sales, from $1,090,573, or 10.8% of net sales, in the third quarter of 1996.
Earnings per share increased $0.06 or 33.3% in the third quarter of 1997 to
$0.24 from $0.18 in the third quarter of 1996 with a 16.8% increase in shares of
Common Stock outstanding.
Net earnings increased $1,981,110 or 67.6% to $4,910,804, or 9.8% of
net sales, for the nine months ended October 5, 1997, from $2,929,694, or 9.7%
of net sales, for the nine months ended October 6, 1996. Earnings per share
increased $0.24 or 47.1% for the nine months ended October 5, 1997 to $0.75 from
$0.51 for the nine months ended October 6, 1996 with a 14.8% increase in shares
of Common Stock outstanding.
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LIQUIDITY AND CAPITAL RESOURCES
On July 23, 1997, the Company completed a public offering whereby
1,100,000 shares of Common Stock were sold. Proceeds to the Company (after
underwriting discounts and expenses) amounted to approximately $24.6 million.
The Company plans to use the proceeds, together with cash on hand, cash flow
from operations and lease financing, to open 12 or 13 new restaurants during the
remainder of 1997 and 1998. For additional liquidity, the Company has available
a $2.5 million revolving credit facility with First American National Bank (the
"Credit Facility"). As of the date hereof, there were no borrowings outstanding
under the Credit Facility. The Credit Facility imposes restrictions on the
Company with respect to the maintenance of certain financial ratios, the
incurrence of indebtedness, the sale of assets, mergers, capital expenditures
and the payment of dividends.
The Company's principal capital needs arise from the development of new
restaurant facilities and, to a lesser extent, maintenance and improvement of
its existing facilities. Prior to the Company's initial public offering in July
1995, the principal sources of capital to fund the aforementioned expenditures
were operating cash flow, bank borrowings and lease financing. The following
table provides certain information regarding the Company's sources and uses of
capital for the periods presented.
<TABLE>
<CAPTION>
Nine Months
(40 Weeks) Fiscal Year Ended
Ended -----------------
October 5, 1997 Dec. 29, 1996 Dec. 31, 1995
--------------- ----------------- -------------
<S> <C> <C> <C>
(in thousands)
Cash flows from operations ......... $ 7,159 $ 7,302 $ 3,011
Net proceeds from public offerings.. 24,566 20,773 13,048
Capital expenditures ............... (10,992) (18,146) (13,886)
Net borrowings (repayments) ........ -- (2,579) 529
</TABLE>
Since inception, the Company's single largest use of funds has been for
capital expenditures consisting of land, building, equipment and preopening
costs associated with its restaurant expansion program. The substantial growth
of the Company over the period has not required significant additional working
capital. Sales are predominately cash, and the business does not require
significant receivables or inventories. In addition, it is common to receive
trade credit for the purchase of food, beverage and supplies, thereby reducing
the need for incremental working capital to support sales increases.
The Company prefers to own its restaurant facilities when possible
rather than lease. The cost of developing the Company's prototype Logan's
Roadhouse restaurant is estimated to range from $2.0 to $2.6 million, including
$900,000 for building costs, $400,000 for equipment costs and $175,000 for
preopening costs. Land acquisition costs, including site preparation, are the
most variable development costs and are estimated to range between $500,000 and
$1.1 million. The cost of the development for a new restaurant will not include
land acquisition costs if the property is leased rather than purchased.
Capital expenditures and preopening costs for the remainder of 1997 and
1998 are estimated to range from $27.5 million to $29.8 million for the
development of 16 or 17 new restaurants of which 12 or 13 are expected to be
opened during the remainder of 1997 and 1998 depending on the availability of
quality sites, the hiring and training of sufficiently skilled management and
other personnel and
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<PAGE> 13
other factors. In addition, the Company plans to spend $500,000 during the
remainder of 1997 and 1998 to renovate and replace equipment in existing
restaurants.
Management believes that the net proceeds from the July 23, 1997
offering, together with available cash reserves and cash provided from
operations and borrowing capacity, will be sufficient to fund the Company's
expansion plans through 1998. Should the Company's actual results of operations
fall short of, or its rate of expansion significantly exceed its plans, or
should its costs or capital expenditures exceed expectations, the Company may
need additional financing in the future. In negotiating such financing, there
can be no assurance that the Company will be able to raise additional capital on
terms satisfactory to the Company.
In order to provide any additional funds necessary to pursue the
Company's growth strategy, the Company may incur, from time to time, additional
short and long-term bank indebtedness and may issue, in public or private
transactions, its equity and debt securities, the availability and terms of
which will depend upon market and other conditions. There can be no assurance
that such additional financing will be available on terms acceptable to the
Company.
This report contains certain forward-looking statements, including
those relating to the opening of additional restaurants and planned capital
expenditures, each of which is accompanied by specific, cautionary language.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
No disclosure required.
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PART II - OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits:
---------
*3.1 Amended and Restated Charter of the Registrant
*3.2 Bylaws of the Registrant
*4.1 Section 8 of the Amended and Restated Charter of the Registrant
(included in Exhibit 3.1)
*4.2 Specimen of Common Stock Certificate
27 Financial Data Schedule (for SEC use only)
* Incorporated by reference to the Registrant's Registration Statement
on Form SB-2 (Registration No. 33-92976-A)
(b) Reports on Form 8-K
The Company was not required to file a report on Form 8-K during the
quarter for which this report is filed.
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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.
LOGAN'S ROADHOUSE, INC.
By: /s/ DAVID J. MCDANIEL
---------------------------------------
David J. McDaniel,
Vice President, Treasurer and Secretary
(Chief Financial Officer)
Date: November 14, 1997
15
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF LOGAN'S ROADHOUSE, INC. FOR THE NINE MONTHS ENDED
DECEMBER 28, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-28-1997
<PERIOD-START> DEC-30-1996
<PERIOD-END> OCT-05-1997
<CASH> 22,976,225
<SECURITIES> 4,700,000
<RECEIVABLES> 720,410
<ALLOWANCES> 0
<INVENTORY> 421,521
<CURRENT-ASSETS> 30,829,494
<PP&E> 46,545,330
<DEPRECIATION> 3,263,104
<TOTAL-ASSETS> 74,221,319
<CURRENT-LIABILITIES> 3,774,090
<BONDS> 0
0
0
<COMMON> 71,395
<OTHER-SE> 69,654,806
<TOTAL-LIABILITY-AND-EQUITY> 74,221,319
<SALES> 49,936,187
<TOTAL-REVENUES> 49,936,187
<CGS> 16,407,928
<TOTAL-COSTS> 42,344,121
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 7,592,066
<INCOME-TAX> 2,681,262
<INCOME-CONTINUING> 4,910,804
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 4,910,804
<EPS-PRIMARY> 0.75
<EPS-DILUTED> 0.75
</TABLE>
