Luby's Inc. (LUB, Financial) filed Quarterly Report for the period ended 2012-05-09.
Luby's Inc has a market cap of $162 million; its shares were traded at around $5.84 with a P/E ratio of 28.8 and P/S ratio of 0.5.
Total sales increased approximately $7.7 million, or 3.3%, in the three quarters ended May 9, 2012 compared to the three quarters ended May 4, 2011, consisting of a $4.4 million increase in restaurant sales, a $0.2 million increase in Fuddruckers franchise revenue, and a $3.1 million increase in culinary contract services sales. The $4.4 million increase in restaurant sales included a $0.6 million increase in sales at our Lubys Cafeteria restaurants and a $3.8 million increase in sales from our Fuddruckers and Koo Koo Roo restaurants in the three quarters ended May 9, 2012. On a same-store basis, restaurant sales increased 2.1% during the three quarters ended May 9, 2012 compared to the three quarters ended May 4, 2011. The Lubys Cafeteria-branded restaurants were included in the same store sales definition for each of the three quarters ended May 9, 2012, but the Fuddruckers restaurants only met the definition in the quarter ended May 9, 2012. The improved same-store sales was primarily due to improving economic conditions, our focus on various marketing media avenues, complemented with continued momentum with local restaurant marketing efforts, as well as customer acceptance of our remodeling initiatives at select restaurants and a rebuild at one location.
Other operating expenses primarily include restaurant-related expenses for utilities, repairs and maintenance, advertising, insurance, restaurant services, restaurant supplies and occupancy costs. Other operating expenses increased by $0.2 million, or 1.1%, for the quarter ended May 9, 2012 compared to the quarter ended February 9, 2011, primarily due to (1) a $0.2 million increase in marketing and advertising expense; (2) a $0.1 million increase in utility costs; offset by (3) a $0.1 million net reduction in restaurant services, supplies, occupancy costs, insurance costs, and other operating expenses in the aggregate. As a percentage of restaurant sales, other operating expenses increased 0.2%, to 22.3%, in the quarter ended May 9, 2012 compared to 22.1% in the quarter ended May 4, 2011, due to the cost reductions enumerated above as well as the ability to leverage the fixed cost components of certain operating costs over an increased sales volume.
General and administrative expenses include corporate salaries and benefits-related costs, including restaurant area leaders, share-based compensation, professional fees, travel and recruiting expenses and other office expenses. General and administrative expenses increased by $0.2 million, or 3.1%, in the quarter ended May 9, 2012 compared to the quarter ended May 4, 2011. The increase was primarily due to higher salary and benefits expenses. As a percentage of total sales, general and administrative expenses increased 0.2% to 8.6% in the quarter ended May 9, 2012 from 8.4% in the quarter ended May 4, 2011.
Investing Activities. We generally reinvest available cash flows from operations to develop new restaurants, enhance existing restaurants and support our culinary contract services business. Cash used by investing activities was $13.7 million in the three quarters ended May 9, 2012 compared to cash provided by investing activities of $3.1 million in the three quarters ended May 4, 2011. In the first quarter of fiscal year 2011, we acquired one franchised location for $0.3 million. Proceeds from property sales were $8.5 million in the three quarters ended May 4, 2011 and $2.6 million in the three quarters ended May 9, 2012. We increased our purchases of equipment and new restaurant construction from $5.1 million in the three quarters ended May 4, 2011 to $16.1 million in the three quarters ended May 9, 2012. Our capital expenditure program includes, among other things, investments in new restaurant and culinary contract services locations, restaurant remodeling, information technology enhancements and purchase of property for development.
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Luby's Inc has a market cap of $162 million; its shares were traded at around $5.84 with a P/E ratio of 28.8 and P/S ratio of 0.5.
Highlight of Business Operations:
Total sales increased $0.7 million, or 0.9 %, in the quarter ended May 9, 2012 compared to the quarter ended May 4, 2011, primarily due to an increase in culinary contract sales. The $0.1 million decrease in restaurant sales included a $1.2 million decrease in sales at our Lubys Cafeteria restaurants offset by a $1.1 million increase in sales from our Fuddruckers restaurants in the quarter ended May 9, 2012. The $0.8 million increase in culinary contract services sales resulted primarily from larger sales volume facilities replacing smaller facilities where contracts ended as well as growth in sales volume at facilities that have been in operation for more than one year. On a same store basis, restaurant sales increased 1.1% in the quarter ended May 9, 2012 compared to the quarter ended May 4, 2011. Lubys Cafeterias included in the same-store metric increased 0.1% and Fuddruckers restaurants included in the same-store metric increased 4.6%. The fiscal quarter ended May 9, 2012 was the first fiscal quarter in which the Fuddruckers and Koo Koo Roo restaurants were included in our same store sales calculation.Total sales increased approximately $7.7 million, or 3.3%, in the three quarters ended May 9, 2012 compared to the three quarters ended May 4, 2011, consisting of a $4.4 million increase in restaurant sales, a $0.2 million increase in Fuddruckers franchise revenue, and a $3.1 million increase in culinary contract services sales. The $4.4 million increase in restaurant sales included a $0.6 million increase in sales at our Lubys Cafeteria restaurants and a $3.8 million increase in sales from our Fuddruckers and Koo Koo Roo restaurants in the three quarters ended May 9, 2012. On a same-store basis, restaurant sales increased 2.1% during the three quarters ended May 9, 2012 compared to the three quarters ended May 4, 2011. The Lubys Cafeteria-branded restaurants were included in the same store sales definition for each of the three quarters ended May 9, 2012, but the Fuddruckers restaurants only met the definition in the quarter ended May 9, 2012. The improved same-store sales was primarily due to improving economic conditions, our focus on various marketing media avenues, complemented with continued momentum with local restaurant marketing efforts, as well as customer acceptance of our remodeling initiatives at select restaurants and a rebuild at one location.
Other operating expenses primarily include restaurant-related expenses for utilities, repairs and maintenance, advertising, insurance, restaurant services, restaurant supplies and occupancy costs. Other operating expenses increased by $0.2 million, or 1.1%, for the quarter ended May 9, 2012 compared to the quarter ended February 9, 2011, primarily due to (1) a $0.2 million increase in marketing and advertising expense; (2) a $0.1 million increase in utility costs; offset by (3) a $0.1 million net reduction in restaurant services, supplies, occupancy costs, insurance costs, and other operating expenses in the aggregate. As a percentage of restaurant sales, other operating expenses increased 0.2%, to 22.3%, in the quarter ended May 9, 2012 compared to 22.1% in the quarter ended May 4, 2011, due to the cost reductions enumerated above as well as the ability to leverage the fixed cost components of certain operating costs over an increased sales volume.
General and administrative expenses include corporate salaries and benefits-related costs, including restaurant area leaders, share-based compensation, professional fees, travel and recruiting expenses and other office expenses. General and administrative expenses increased by $0.2 million, or 3.1%, in the quarter ended May 9, 2012 compared to the quarter ended May 4, 2011. The increase was primarily due to higher salary and benefits expenses. As a percentage of total sales, general and administrative expenses increased 0.2% to 8.6% in the quarter ended May 9, 2012 from 8.4% in the quarter ended May 4, 2011.
Investing Activities. We generally reinvest available cash flows from operations to develop new restaurants, enhance existing restaurants and support our culinary contract services business. Cash used by investing activities was $13.7 million in the three quarters ended May 9, 2012 compared to cash provided by investing activities of $3.1 million in the three quarters ended May 4, 2011. In the first quarter of fiscal year 2011, we acquired one franchised location for $0.3 million. Proceeds from property sales were $8.5 million in the three quarters ended May 4, 2011 and $2.6 million in the three quarters ended May 9, 2012. We increased our purchases of equipment and new restaurant construction from $5.1 million in the three quarters ended May 4, 2011 to $16.1 million in the three quarters ended May 9, 2012. Our capital expenditure program includes, among other things, investments in new restaurant and culinary contract services locations, restaurant remodeling, information technology enhancements and purchase of property for development.
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