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J. Alexander's Corp (JAX) filed Quarterly Report for the period ended 2011-04-03.
J. Alexanders Cp has a market cap of $33.5 million; its shares were traded at around $5.6075 with a P/E ratio of 11 and P/S ratio of 0.2.
This is the annual revenues and earnings per share of JAX over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of JAX.
Highlight of Business Operations:
Net sales increased by $2,024,000, or 5.2%, in the first quarter of 2011 compared to the first quarter of 2010. For the first quarter of 2011, the Company recorded average weekly sales per restaurant of $95,300, up from $90,300 in the corresponding quarter a year earlier. The Company s average weekly same store sales per restaurant for the first quarter of 2011 were the same as the average weekly sales per restaurant because same store sales calculations are based on restaurants open for more than 18 months and no new restaurants have opened since 2008. The 5.5% increase in average weekly sales per restaurant for the first quarter of 2011 compared to the first quarter of 2010 was greater than the 5.2% increase in total net sales because of the exclusion from the weekly average calculation of a total of ten restaurant days that certain restaurants were closed due to inclement weather in the first quarter of 2011.
Management estimates the average check per guest, including alcoholic beverage sales, increased by 4.5% to $26.36 during the first quarter of 2011 compared to $25.23 during the first quarter of 2010. Management estimates the effect of menu price increases was approximately 2.6% in the first quarter of 2011 compared to the same period of 2010. This estimate reflects nominal amounts of menu price changes, without regard to any change in product mix because of price increases, and may not reflect amounts effectively paid by customers. Management estimates that weekly average guest counts increased by approximately 0.7% in the first quarter of 2011 compared to the first quarter of 2010.
Total restaurant operating expenses decreased to 89.6% of net sales in the first quarter of 2011 from 90.4% in the first quarter of 2010 due primarily to the impact of increased sales. Restaurant operating margins (net sales minus total restaurant operating expenses divided by net sales) increased to 10.4% in the first quarter of 2011 from 9.6% in the comparable period of 2010.
Cost of sales, which includes the cost of food and beverages, for the first quarter of 2011 was 33.0% of net sales, up from 31.5% of net sales in the corresponding period of 2010. This increase was due primarily to an estimated 8% increase in food input costs during the first quarter of 2011 compared to the same period of 2010. Management estimates that produce costs in the first quarter of 2011 were more than 20% higher than the corresponding period of 2010, while seafood and beef costs increased by approximately 9.0% and 7.5%, respectively.
Beef purchases represent the largest component of the Company s cost of sales and comprise approximately 25% to 30% of this expense category. Although the Company has at times entered into fixed price purchase agreements for beef, it has purchased beef at weekly market prices since early 2008. Management believes that purchasing beef at weekly market prices has generally been beneficial to the Company since that time. However, prices paid for beef were higher in 2010 than in 2009, and management anticipates that prices for beef in 2011 will exceed those paid in 2010, perhaps substantially.
At the end of each interim period, companies are generally required to estimate their annual effective tax rate and provide for income taxes by applying that rate to year-to-date operating results. For the quarter ended April 3, 2011, the Company s income tax provision is based on an estimated effective tax rate of 22.6% for fiscal 2011. Because the Company was unable to make a reliable estimate of the annual effective tax rate for 2010, income taxes for the quarter ended April 4, 2010 were calculated based on the actual effective rate for that period, which was 26.3% of income before income taxes.
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