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 December 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 February 6, 1996, was 10,460,689.
PART I -- Financial Information
Item 1. Financial Statements (Unaudited)
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
Piccadilly Cafeterias, Inc.
(Amounts in thousands)
_______________________________________________________________________________
December 31 June 30
Balances at 1995 1995
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ASSETS
CURRENT ASSETS
Accounts and notes receivable $ 603 $ 482
Inventories 10,881 10,584
Deferred income taxes 1,416 1,416
Other current assets 302 627
_______________________________________________________________________________
TOTAL CURRENT ASSETS 13,202 13,109
PROPERTY, PLANT AND EQUIPMENT 250,902 248,504
Less allowances for depreciation 107,599 102,444
Less allowances for unit closings 708 801
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NET PROPERTY, PLANT AND EQUIPMENT 142,595 145,259
OTHER ASSETS 6,243 6,753
_______________________________________________________________________________
TOTAL ASSETS $162,040 $165,121
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LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Short-term debt due to banks $ 14,488 $ 20,577
Accounts payable 16,819 17,998
Other current liabilities 16,117 14,305
Current portion of long-term debt 6,000 6,000
_______________________________________________________________________________
TOTAL CURRENT LIABILITIES 53,424 58,880
LONG-TERM DEBT, less current portion 18,000 18,000
DEFERRED INCOME TAXES 7,632 6,787
RESERVE FOR UNIT CLOSINGS, less current portion 4,477 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 10,460,689
shares at December 31, 1995
and 10,316,946 shares at June 30, 1995 19,019 18,758
Additional paid-in capital 18,235 17,416
Retained earnings 41,253 40,271
_______________________________________________________________________________
TOTAL SHAREHOLDERS' EQUITY 78,507 76,445
_______________________________________________________________________________
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $162,040 $165,121
===============================================================================
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 Six Months Ended
Ended December 31 December 31
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1995 1994 1995 1994
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Net sales $ 75,807 $ 73,411 $150,947 $144,190
Cost and expenses:
Cost of sales 43,068 41,609 85,888 82,192
Other operating expense 25,287 24,316 50,234 48,297
General and administrative expense 2,810 3,117 7,044 6,773
Interest expense 1,016 921 2,044 1,702
Other expense (income) (33) 441 145 782
_____________________________________________________________________________
72,148 70,404 145,355 139,746
_____________________________________________________________________________
INCOME BEFORE INCOME TAXES 3,659 3,007 5,592 4,444
Provision for income taxes 1,389 1,173 2,124 1,733
_____________________________________________________________________________
NET INCOME $ 2,270 $1,834 $ 3,468 $ 2,711
=============================================================================
Weighted average number of shares
outstanding 10,335 10,155 10,334 10,148
=============================================================================
Net income per share $ .22 $ .18 $ .34 $ .27
=============================================================================
Cash dividends per share $ .12 $ .12 $ .24 $ .24
=============================================================================
See Note to Condensed Consolidated Financial Statements (Unaudited)
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Piccadilly Cafeterias, Inc.
(Amounts in thousands)
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Six Months Ended December 31 1995 1994
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OPERATING ACTIVITIES
Net income $ 3,468 $ 2,711
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation 6,512 6,286
Costs associated with reserved units (334) (661)
Provision for deferred income taxes 845 600
Loss on disposition of assets 425 733
Pension expense -- net of contributions 377 (376)
Change in operating assets and liabilities 471 1,039
______________________________________________________________________________
NET CASH PROVIDED BY OPERATING ACTIVITIES 11,764 10,332
INVESTING ACTIVITIES
Purchase of property, plant and equipment (4,381) (20,593)
Proceeds from sale of property, plant and equipment 109 143
______________________________________________________________________________
CASH USED IN INVESTING ACTIVITIES (4,272) (20,450)
FINANCING ACTIVITIES
Proceeds from (payments on) short-term debt
due to banks - net (6,089) 12,110
Proceeds from sales of Common Stock 1,081 1,191
Payments on long-term debt --- (750)
Dividends paid (2,484) (2,433)
______________________________________________________________________________
NET CASH PROVIDED (USED) IN FINANCING ACTIVITIES (7,492) 10,118
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Increase (decrease) in cash and cash equivalents --- ---
Cash and cash equivalents at beginning of period --- ---
______________________________________________________________________________
Cash and cash equivalents at end of period $ --- $ --
==============================================================================
See Note to Condensed Consolidated Financial Statements (Unaudited)
NOTE TO CONDENSED FINANCIAL STATEMENTS (Unaudited)
Piccadilly Cafeterias, Inc.
December 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 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
Same-store cafeteria customer traffic for the
second quarter of fiscal year 1996 increased 0.9% over
the prior year second quarter as total customer traffic
increased 1.4%. Same-store cafeteria customer traffic
for the six months ended December 31, 1995, increased
1.4% as total customer traffic increased 2.4%.
Cafeteria sales for the second quarter of fiscal
year 1996 increased $1,473,000, or 2.2%, over the prior
year second quarter. Same-store cafeteria sales for the
quarter ended December 31, 1995, increased $963,000, or
1.5% over the same period last year. Ralph & Kacoo's
restaurant sales increased $2,262,000, or 15.3%, over
the prior year second quarter. Same-store restaurant
sales for the quarter ended December 31, 1995, decreased
$327,000, or 5.6%, over the same period last year.
Same-store restaurant sales for the six months ended
December 31, 1995, decreased $530,000, or 4.5%, over the
same period last year.
Cafeteria sales for the six months ended December
31, 1995, increased $4,444,000, or 3.4% from the same
prior year six-month period. Same-store cafeteria sales
for the six months ended December 31, 1995, increased
$2,827,000 or 2.2% from the same prior year six-month
period.
Second quarter general and administrative expense
decreased $307,000, or 9.8%, from the prior year second
quarter as a result of reduced corporate expenses.
General and administrative expense for the first quarter
of fiscal 1996 includes a $1,300,000 restructuring
charge. General and administrative expense for the
prior year first quarter includes severance benefits
totaling $361,000.
Prior year other expense (income) includes a
$329,000 first quarter and a $404,000 second quarter
non-cash charge resulting from the write-off of certain
assets associated with the Company's remodeling program.
Current year first quarter other expense includes a
$164,000 charge related to the closing of a Spartanburg,
South Carolina cafeteria in the second quarter. A
replacement unit in Spartanburg opened in the second
quarter.
Unit remodels are generally limited to replacement
of carpeting, minor decor upgrades, additions of take-
out stands, and/or in some cases, replacement of
exterior signage. In the prior year, the Company
canceled its "deluxe" unit remodel approach, which
generally included a substantial redesign of the unit.
Working capital at December 31, 1995 increased
$5,495,000 from June 30, 1995. Since June 30, 1995, the
Company has reduced short-term borrowings $6,089,000.
The Company has unsecured lines of credit totaling
$42,500,000 that mature March 31, 1996. As of December
31, 1995, $28,000,000 was available under these
facilities. The Company anticipates that these
facilities will be restructured into long-term
instruments during this current fiscal year.
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
The Annual Meeting of the shareholders of Piccadilly Cafeterias,
Inc. (the "Meeting") was held on November 6, 1995 and 8,965,907
shares were represented. The voting tabulation follows:
The election of the following to the Board of Directors:
FOR WITHHELD
___ ________
Norman C. Francis 8,818,324 147,583
Dale E. Redman 8,824,104 141,803
Edward M. Simmons, Sr. 8,875,705 90,202
C. Ray Smith 8,870,567 95,340
The following director's terms of office as director continued
after the meeting: Malcolm T. Stein, Jr., Ronald A. LaBorde,
O. Q. Quick, Julia H. R. Hamilton and Paul W. Murrill.
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 amened on September 14, 1987<F2>, as amended
on September 27, 1988<3>, and as amended on
September 28, 1989<4>.
3.2 By-laws of Registrant, as amended through
June 19, 1995<F5>.
27 Financial Data Schedule
(b) Reports on Form 8-K -- None
____________________
<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
February 8, 1996
/s/ Ronald A. LaBorde 2/8/96
_______________________________________________ ______________________
Ronald A. LaBorde, President, Chief Date
Executive Officer and Director
/s/ J. Fred Johnson 2/8/96
_______________________________________________ ______________________
J. Fred Johnson, Executive Vice President, Date
Chief Financial Officer and Treasurer
(Principal Financial Officer)
/s/ Mark L. Mestayer 2/8/96
_______________________________________________ _______________________
Mark L. Mestayer, Executive Vice President, Date
Controller and Secretary
(Principal Accounting Officer)