LUB - Earnings call transcript Q2 2019

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings and welcome to Luby’s Fiscal 2019 Second Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Steve Goodweather, Vice President, Financial Planning and Analysis. sir. you, Thank

begin. You may

Steve Goodweather

link and today, second again, also Luby’s you, speaks the everyone webcast recorded lubysinc.com. on this XX, welcome earnings conference XXXX. fiscal call audio through quarter accessed is as can XXXX Luby’s call. website and Information of Thank only be to on April This being call

results the the credit limited taxes, availability President Before and that, in Forms of are including supply financial discussion, Chris including this in the like regulations statements and we Forms continue, in statements well governmental future commodity as Those the I statements. Luby’s costs but competition, changes Company’s business on With CEO, Luby’s business, would made call over and forward-looking of labor like the question-and-answer Company’s seasonality during food and include to uncertainties of and inflation, XX-K uncertainties, success Pappas. to XX-Q. and other regarding impact of initiatives, as to the operating as remind to, risks you well that reports and conditions, session disclosed now turn would periodic of statements and operating I as risks general not

Chris Pappas

of Gray. COO, you to our from quarter. Thanks, an over call. recap followed us I’ll followed I’ll Scott Steve. update progress call all begin then Coutee the our on and Good the morning on by everyone a CFO, thank by with joining turn for today’s conference Todd our remarks turnaround

Company. quarter, turnaround with on for discussed the our last you hard working I As we're plan

the Since last beginning and that million. began reducing selling of we the quarter, program we proceeds closed assets sales year, $XX Company underperforming year, asset to and XX we've progress generated the quarter restaurants During through million position the last better $XX.X second positive of forward. going our costs made

franchise restaurants. restaurants model progress five were restaurants as make recently We've transition for plans a San operator a Fuddruckers converted to franchise in to Antonio Fuddruckers this with company-owned company-operated with we These many operated to are of April continued and our early primarily brand. franchise our also Fuddruckers experience. to We new in refranchise leased to

work Houston our From second re-franchising outside an our of continue of operations Texas. stores, after opportunities to the our management rate even in of number primary remains the closed focus market perspective, home additional came down on cost adjusting We organization and cost run for throughout quarter. a

level primarily efficient expense, compared to and quarter row, and our in quarter declined. sales and the Store in same in effective quarter hourly reduce a percentage in year, controls due the cost to of sales expense. restaurant maintenance restaurant a XX.X% and reduced we've profit food food greater a the operating to For as percentage second at second repairs labor to last and scheduling X.X% cost reductions supply improved

In our addition, corporate cost. overhead we've reduced

have million. Our administrative proxy expenses communication would decreased remove $X million dollars. just million by decreased costs The quarter we to and solicitation selling, related If this XXXX cost, SG&A our so in million proxy one-time and and contest. general cost $X.X $X.X $X.X expenses included

Marcel performance and global part has our we investor help within improve SG&A last growth. seek to & with improvement help engaged and Alvarez results their division, operating restaurant taking with tasked As stated opportunities improve our corporate to of to performance. on conference Marsal with call, this, seeking profit to our we're consulting improvement firm performance with financial costs is our actions To Luby’s identify & the management industry. reduce and some significant experience Alvarez

expectations for for increase to in help financial Cafeteria reposition store-level beyond. results XXXX same-store continued sales full at to Fuddruckers. improve to they quarter we margins results Despite Luby's the Turning our below and year, and drive sales now to did profit improve brands both our sequentially and sales, our better the

business X.X continues second XX business, locations at $X.X service Culinary up remained strong quarter. contract million by and XX% to million, our the to operating look this from during grow. we with As this segment Revenues increased in

New in million. locations locations over contributed of revenue year million revenue approximately prior and approximately $X.X continually operated increased $X.X the

Our profit to business margin for our increased to of above XX% target XX%. this X% long-term

highly dedicated would the last The from my we the people I business as and As profitability turning brands around we that of know for in like shareholders comments return involve and substantial work our represent quarters is standards all business move company past I to Coutee hard the growth operating Todd our a to to operate believe we enhance few I a to the would hard way. call turn like Company growth. to stated highest we two in call, the to the and experienced Todd? over But when a now forward, ultimately value. to and reiterate competitive quarter market mature we to have progress comments.

Todd Coutee

Thank you, pleased the today. am Chris. to join I call

in they right we successful. providing mentioned, to Chris right getting need organization our realign As them be continue with while people positions, tools by to the and coaching

cafeterias. that is guests an value convenient hard To comfortable several continue great our re-introducing excellent on the Luby's part role. also cafeteria Our choices. announce meal which natural each and we provide home-style well breakfast our of pleased We're business the tasting teams a as work in an meals at an at option with initiatives how to a on to to Within plays environment. Luby's extension our at brand. we're value at that factor We're end also offering important new dinner also convenience we're sales enhance specifically everyday focusing

down to menu healthcare, corporate have comfort order focus to huge with food sales variety growing and this Fiscal quality services, XXXX our a business, new that’s represents. outlets. innovation our venues year-to-date in we’ve on continues of Luby's an and brand facilities results. grocery drive known keep food, an advantage brand service quarter. of contract The communities net our we last action be internal XXXX Texas that they continue strong year. solutions and Fuddruckers that execute top of amenity the second the on business in same dining as and We and asset requirement progress opportunities Culinary -- is stadium both brand the living new quarter, a facilities, segment. to added increase execution preferences intense were this tailor We of improved on to will four product Luby's the significantly to senior and through up account appreciate and food is In sales locations trends. client in along store fiscal our our the retail meet brand first from custom and while year very this XXXX, and unique in a four our competitive believe better we fiscal plans clients our appeal to and remains our last

of we our continue targeted various forms digital utilize measurable. and to media, from our marketing keep Lastly perspective, marketing to

campaign and includes early managers. team testimonials guest, members Our video content from with restaurant authentic our

we’re to excited great familiarity but clearly brands people positive I’m to that our throughout have goal we every of emotional know our the With so sharing for our in cherish. day, differentiate offer like intention teams. as Scott CFO, delighting work would I’m the that Scott? to operations which thankful on alongside Gray. call collogues our result will outcomes we I to many focus over guests dedicated turn believe company. about our from also brands. not our for the by all competitors our with only that a guest, seeing connection we We value certain Our good is work our guests the so many

Scott Gray

X.X increased as XXX segment a Thank increase level quarter a profit and Adjusted sales you, same-store our Todd. culinary X.X to store negative I’ll compared primarily improvement positive contract in on second the touch quickly in EBITDA million, basis as million million despite the financial segment decline second was quarter profit a restaurant X.X year. The lower results. last SG&A service result points in expenses. and increases in well of to

strip was cost. our $X.X $XXX,XXX million the when by advertising proxy total represents noted, the and sales. in our cost or of and component marketing decreased of million one-time about $X.X Chris As general and X% out SG&A our just selling you administrative The quarter, solicitation

forward. marketing continuing we We are to as go spend evaluate our

be, are which X.X in not represent While a improvement to team, the by second quarter, sales both first still the them decline second quarter our decreased do quarter sequential from improvement of relative they showed where Same-store trend our to want the we perspective. sales results but X.X%. was expense and compared a

quarter. from improved workers food maintenance and costs Chris of sales expenses. due also supplies to cost repairs level as a As the lower significantly Payroll reduced restaurant decrease in as in was controls. also restaurant well comp expense improved benefited cost a as Noteworthy and accrued related operating our mentioned, and cost percentage

cash ended debt balance $XX.X sheet our of the the second to debt, million that’s to fiscal from Turning end sheet. with decrease on the We quarter $XX.X XXXX. of the say, at balance net million, a less

second of the rebuilding that in the million, a capital damaged expenditures store last include $X.X a second decreased our hurricane. During million compared the $X.X with which to year, quarter, did was by quarter

reaffirming million. amount results in then current that the are XXXX the one-time to debt improvement. to cash in re-imaging balance the from million, $X.X sheet CapEx that’s end the draw prepaid basket of sheet. March we for keep we're to loan over amortization an $X.X -- show loan our related We debt under we estimate our under our includes XXXX, $XX.X you. quarter MSD XX/XX undrawn in this portion had the of outstanding after for have estimated year had quarter, $X million on as million no of ended operator. able At million the loans. the We relationship second first $XX believe we term brand currently CapEx that, previously balance available the remodeling we we While also EBITDA Thank to year-over-year continued XXXX Due in turn on now like is spend we Capital, currently in additional CapEx $X had had of fiscal in total million evaluation. to term restricted related trends end. an revolver on adjusted shareholders’ but and XXth $XXX.X spend also any our to $XX and adjusted cash the fiscal before positive the a undrawn $XX $X adding term the I'd million back million $X a With of well call that's we as not quarter, up million And capital This maintenance and balance million or with $XX Sales low with from contest. fiscal million to to in to million closing equity. the expenses proxy fully on then EBITDA and expectations second EBITDA of

be Instructions]. have questions. will Mr. [Operator a for Pappas question up question One one comments. you feels it you. please back we moment I and the We over to like Thank conducting for no would to question-and-answer then ask now poll follow questions. session. and questions while one this turn further at time. call requeue Please for closing additional we

Chris Pappas

Luby's on our our plans right With thank you have to quarter. again that to next speaking with look and place in we this the -- Thank continue At to we on improve you. team this and believe quarter make progress results leadership forward we to you operator. next

Operator

for teleconference. your today’s you does participation. thank gentlemen, and conclude This Ladies

your wonderful disconnect lines may You a day. have and

Lub Liquidating Trust (LUB) 22 Apr 192019 Q2 Earnings call transcript