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, 1995
[ ] 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, 1995, was 10,316,946.
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 1995 1994
______________________________________________________________________________
ASSETS
CURRENT ASSETS
Accounts and notes receivable $ 560 $ 579
Inventories 10,390 10,108
Income taxes recoverable --- 1,320
Deferred income taxes 1,494 1,494
Other current assets 1,558 1,400
_______________________________________________________________________________
TOTAL CURRENT ASSETS 14,002 14,901
PROPERTY, PLANT AND EQUIPMENT 249,053 229,191
Less allowances for depreciation 100,549 94,461
Less allowances for unit closings 1,323 1,357
______________________________________________________________________________
NET PROPERTY, PLANT AND EQUIPMENT 147,181 133,373
OTHER ASSETS 6,864 6,499
______________________________________________________________________________
TOTAL ASSETS $168,047 $154,773
==============================================================================
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Short-term debt due to banks $ 24,733 $ ---
Current portion of long-term debt 6,000 11,250
Accounts payable 16,268 18,004
Accrued expenses 11,819 11,360
Income taxes payable 382 ---
Reserve for unit closings 256 350
______________________________________________________________________________
TOTAL CURRENT LIABILITIES 59,458 40,964
LONG-TERM DEBT, less current portion 18,000 24,000
DEFERRED INCOME TAXES 7,883 7,433
RESERVE FOR UNIT CLOSINGS, less current portion 5,298 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 10,301,299 shares at March 31, 1995 and
10,131,784 shares at June 30, 1994 18,729 18,421
Additional paid-in capital 17,307 16,324
Retained earnings 41,372 41,129
______________________________________________________________________________
TOTAL SHAREHOLDERS' EQUITY 77,408 75,874
______________________________________________________________________________
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $168,047 $154,773
==============================================================================
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 Nine Months Ended
Ended March 31 March 31
_____________________________________________________________________________________
1995 1994 1995 1994
_____________________________________________________________________________________
Net sales $69,066 $ 66,733 $213,256 $206,972
Cost and expenses:
Cost of sales 39,197 37,315 121,389 115,993
Other operating expense 23,222 22,415 71,519 68,768
General and administrative expense 3,540 3,516 10,313 10,181
Interest expense 1,058 815 2,760 2,471
Other expense (income) 76 (93) 858 (227)
____________________________________________________________________________________
67,093 63,968 206,839 197,186
____________________________________________________________________________________
INCOME BEFORE INCOME TAXES 1,973 2,765 6,417 9,786
Provision for income taxes 770 1,078 2,503 3,816
____________________________________________________________________________________
NET INCOME $ 1,203 $ 1,687 $ 3,914 $ 5,970
====================================================================================
Weighted average number of shares
outstanding 10,301 10,105 10,198 10,034
====================================================================================
Net income per share $ .12 $ .17 $ .38 $ .60
====================================================================================
Cash dividends per share $ .12 $ .12 $ .36 $ .36
====================================================================================
See Note to Condensed Consolidated Financial Statements (Unaudited)
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Piccadilly Cafeterias, Inc.
(Amounts in thousands)
______________________________________________________________________________
Nine Months Ended March 31 1995 1994
______________________________________________________________________________
OPERATING ACTIVITIES
Net income $ 3,914 $ 5,970
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation 9,545 8,516
Costs associated with reserved units (975) (1,227)
Provision for deferred income taxes 450 ---
Loss on disposition of assets 675 472
Pension contributions in excess of pension
expense (497) (853)
Change in operating assets and liabilities 118 1,263
______________________________________________________________________________
NET CASH PROVIDED BY OPERATING ACTIVITIES 13,230 14,141
INVESTING ACTIVITIES
Purchase of property, plant and equipment (24,502) (20,599)
Proceeds from sale of property, plant and equipment 149 1,135
______________________________________________________________________________
CASH USED IN INVESTING ACTIVITIES (24,353) (19,464)
FINANCING ACTIVITIES
Proceeds from short-term debt due to banks - net 24,733 ---
Proceeds from sales of Common Stock 1,291 1,383
Payments on long-term debt (11,250) (3,000)
Dividends paid (3,651) (3,598)
______________________________________________________________________________
NET CASH PROVIDED (USED) IN
FINANCING ACTIVITIES 11,123 (5,215)
______________________________________________________________________________
Increase (decrease) in cash and cash equivalents --- (10,538)
Cash and cash equivalents at beginning of period --- 14,094
______________________________________________________________________________
Cash and cash equivalents at end of period $ --- $ 3,556
==============================================================================
See Note to Condensed Consolidated Financial Statements (Unaudited)
NOTE TO CONDENSED FINANCIAL STATEMENTS (Unaudited)
Piccadilly Cafeterias, Inc.
March 31, 1995
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 five new cafeterias completed in the first three
quarters of this fiscal year, one new seafood restaurant was opened
April 24, 1995. Twelve "grand-style" remodels were completed in the
first two quarters. 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 nine
months ended March 31, 1995 and 1994:
(Amounts in thousands-except number of units)
____________________________________________________________________________
Nine Months Ended March 31 1995 1994
____________________________________________________________________________
Amounts Units Amounts Units
____________________________________________________________________________
New units opened $11,429 5 $ 5,349 3
Remodels completed 10,833 12 1,865 2
Net increase (decrease)
in construction-in-progress (2,639) 8,165
Land purchases 2,459 2,732
Other 2,420 2,488
__________________________________________ ___________
Total capital expenditures $24,502 $20,599
========================================== ===========
Working capital decreased $19,393,000 from June 30, 1994 to March 31,
1995, primarily due to the level of capital expenditures required by the
Company's aggressive remodeling and new unit expansion programs. These
programs were halted during the second quarter. Secondly, $6,000,00 of
maturing long-term debt obligations were reclassified to current
liabilities in the third quarter. The Company has unsecured lines of
credit totaling $30,000,000 which mature on June 30, 1995. As of May 1,
1995, $5,412,000 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 March 31, 1995 and 1994:
(Customers in thousands)
_____________________________________________________________________________
Quarter Ended March 31 1995 1994 Customer
____________________________________________________________ Change
Customers Units Customers Units
=============================================================================
Units open three months
in both periods 11,184 126 11,306 126 -1.1%
Units opened 502 6<FN1> 14 1
Units closed -- - 246 4<FN2>
__________________________________ ___________
Total customers 11,686 11,566 1.0%
================================== ===========
<FN1> Includes cafeterias opened after December 31, 1993.
<FN2) Includes cafeterias closed after December 31, 1993.
Cafeteria sales for the third quarter of fiscal year 1995 increased
$2,333,000, or 3.5%, over the prior year third quarter. The check
average increased 2.9% from $5.20 for the third quarter of fiscal year
1994 to $5.35 for the comparable period of fiscal 1995.
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
27 - Financial Data Schedule
(b) Reports on Form 8-K -- None.
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
May 11, 1995
/s/ Malcolm T. Stein, Jr.
___________________________________________ May 11, 1995
Malcolm T. Stein, Jr.,
President, Chief Operating
Officer, and Director<FN1>
/s/ James E. Durham, Jr.
____________________________________________ May 11, 1995
James E. Durham, Jr.,
Senior Executive Vice
President, and Director<FN1>
/s/ Ronald A. LaBorde
__________________________________________ May 11, 1995
Ronald A. LaBorde,
Executive Vice President,
Treasurer, Chief Financial Officer,
Principal Financial Officer, and Director<FN1>
/s/ Mark L. Mestayer
___________________________________________ May 11, 1995
Mark L. Mestayer, Executive Vice President,
Secretary, Controller, and Principal Accounting
Officer
<FN1> Member of the Management Committee (Co-Principal Executive Officer).