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Flanigan's Enterprises(BDL) - 2020 Q2 - Quarterly Report
BDLFlanigan's Enterprises(BDL)2020-06-26 20:29

Operations Overview - As of March 28, 2020, the company operates 27 units, including 7 restaurants, 7 package liquor stores, and 3 combination units, with a total increase of 1 unit compared to March 30, 2019[57]. Revenue Performance - Total revenue for the thirteen weeks ended March 28, 2020, increased by 392,000or1.32392,000 or 1.32% to 30,128,000 compared to 29,736,000forthesameperiodin2019[69].−Totalrevenueforthetwenty−sixweeksendedMarch28,2020increasedby29,736,000 for the same period in 2019[69]. - Total revenue for the twenty-six weeks ended March 28, 2020 increased by 3,439,000 or 5.97% to 61,069,000from61,069,000 from 57,630,000 in 2019[89]. Sales Breakdown - Restaurant food sales totaled 18,213,000forthethirteenweeksendedMarch28,2020,anominaldecreasefrom18,213,000 for the thirteen weeks ended March 28, 2020, a nominal decrease from 18,219,000 in the same period in 2019, primarily due to COVID-19 impacts[70]. - Package store sales increased to 6,027,000forthethirteenweeksendedMarch28,2020,comparedto6,027,000 for the thirteen weeks ended March 28, 2020, compared to 5,092,000 in the same period in 2019, reflecting a growth of 18.36%[67]. - Restaurant bar sales decreased to 5,315,000forthethirteenweeksendedMarch28,2020,downfrom5,315,000 for the thirteen weeks ended March 28, 2020, down from 5,745,000 for the same period in 2019, a decrease of 7.47%[72]. - Restaurant food sales totaled 36,955,000forthetwenty−sixweeksendedMarch28,2020,comparedto36,955,000 for the twenty-six weeks ended March 28, 2020, compared to 35,047,000 in 2019, an increase of 5.44%[90]. - Package store sales revenue totaled 11,734,000forthetwenty−sixweeksendedMarch28,2020,anincreaseof11,734,000 for the twenty-six weeks ended March 28, 2020, an increase of 1,507,000 or 14.71% compared to 10,227,000forthesameperiodin2019[94].CostandExpenses−Operatingcostsandexpensesincreasedby10,227,000 for the same period in 2019[94]. Cost and Expenses - Operating costs and expenses increased by 765,000 or 2.75% to 28,611,000forthethirteenweeksendedMarch28,2020,from28,611,000 for the thirteen weeks ended March 28, 2020, from 27,846,000 in 2019[75]. - Operating costs and expenses increased by 3,236,000or5.873,236,000 or 5.87% to 58,321,000 for the twenty-six weeks ended March 28, 2020, with operating costs as a percentage of total sales rising to approximately 95.58%[95]. Profitability - Gross profit for food and bar sales decreased to 15,628,000forthethirteenweeksendedMarch28,2020,comparedto15,628,000 for the thirteen weeks ended March 28, 2020, compared to 15,646,000 in 2019[77]. - Gross profit for package liquor store sales increased to 1,701,000forthethirteenweeksendedMarch28,2020,from1,701,000 for the thirteen weeks ended March 28, 2020, from 1,373,000 in 2019, an increase of 24.00%[78]. - Gross profit for food and bar sales increased to 31,837,000forthetwenty−sixweeksendedMarch28,2020,withagrossprofitmarginof66.1131,837,000 for the twenty-six weeks ended March 28, 2020, with a gross profit margin of 66.11%[97]. - Gross profit for package liquor store sales increased to 3,269,000 for the twenty-six weeks ended March 28, 2020, with a gross profit margin of 27.86%[98]. Net Income - Net income decreased by 45,000or3.0745,000 or 3.07% to 1,420,000 for the thirteen weeks ended March 28, 2020, compared to 1,465,000in2019[86].−Netincomeattributabletostockholdersdecreasedby1,465,000 in 2019[86]. - Net income attributable to stockholders decreased by 373,000 or 36.53% to 648,000forthethirteenweeksendedMarch28,2020,from648,000 for the thirteen weeks ended March 28, 2020, from 1,021,000 in 2019[88]. - Net income for the twenty-six weeks ended March 28, 2020 decreased by 122,000or4.95122,000 or 4.95% to 2,341,000 compared to 2,463,000forthesameperiodin2019[106].−Netincomeattributabletostockholdersdecreasedby2,463,000 for the same period in 2019[106]. - Net income attributable to stockholders decreased by 622,000 or 35.26% to 1,142,000forthetwenty−sixweeksendedMarch28,2020[107].CashFlowandLiquidity−AsofMarch28,2020,thecompanyhadcashofapproximately1,142,000 for the twenty-six weeks ended March 28, 2020[107]. Cash Flow and Liquidity - As of March 28, 2020, the company had cash of approximately 18,061,000, an increase of 4,389,000from4,389,000 from 13,672,000 as of September 28, 2019[113]. - The company reported a net cash provided by operating activities of 4,213,000,adecreasefrom4,213,000, a decrease from 5,069,000 for the same period in 2019[118]. - The company believes its cash on hand, cash flow from operations, and available borrowings will adequately fund operations and planned capital expenditures throughout fiscal year 2020[130]. Debt and Financing - The company’s long-term debt increased to 17,448,000asofMarch28,2020,comparedto17,448,000 as of March 28, 2020, compared to 14,574,000 as of March 30, 2019, primarily due to refinancing a mortgage loan[122]. - The company received approximately 13.1millioninloansunderthePaycheckProtectionProgram,with13.1 million in loans under the Paycheck Protection Program, with 5.9 million loaned directly to the company[114]. - The company is in compliance with all loan covenants as of March 28, 2020[122]. Cost-Cutting Measures - The company implemented cost-cutting measures, resulting in the layoff of 525 restaurant personnel, leading to annualized salary savings of approximately 1.04million[62].−Thecompanyhasreversedmostcost−cuttingmeasuressincemid−May2020duetothereceiptofPPPLoans,reinstatinglaid−offemployeesinanticipationofresumingdine−inservice[62].−Thecompanyanticipatesthatoperatingcostswilldecreasefortheremainderoffiscalyear2020duetotheimplementationofcost−cuttingmeasures[95].FutureOutlook−Thecompanyexpectstotalrevenuefortheremainderoffiscalyear2020todecreaseduetoongoingCOVID−19impacts,withStore19remainingclosed[69].−Thecompanyexpectsrestaurantfoodsalestocontinuetodeclinefortheremainderoffiscalyear2020duetothenegativeeffectsofCOVID−19[71].−Thecompanyanticipatesrefurbishmentcostsofapproximately1.04 million[62]. - The company has reversed most cost-cutting measures since mid-May 2020 due to the receipt of PPP Loans, reinstating laid-off employees in anticipation of resuming dine-in service[62]. - The company anticipates that operating costs will decrease for the remainder of fiscal year 2020 due to the implementation of cost-cutting measures[95]. Future Outlook - The company expects total revenue for the remainder of fiscal year 2020 to decrease due to ongoing COVID-19 impacts, with Store 19 remaining closed[69]. - The company expects restaurant food sales to continue to decline for the remainder of fiscal year 2020 due to the negative effects of COVID-19[71]. - The company anticipates refurbishment costs of approximately 750,000 for fiscal year 2020, with 517,000alreadyspentthroughMarch28,2020[120].CapitalExpenditures−Capitalexpendituresforthetwenty−sixweeksendedMarch28,2020,were517,000 already spent through March 28, 2020[120]. Capital Expenditures - Capital expenditures for the twenty-six weeks ended March 28, 2020, were 1,640,000, significantly lower than 4,199,000forthesameperiodin2019[119].−Apurchaseagreementwasenteredintoforapproximately4,199,000 for the same period in 2019[119]. - A purchase agreement was entered into for approximately 5,314,000 of baby back ribs to be purchased during calendar year 2020 at a fixed cost[127]. - The company canceled a previously declared cash dividend of $0.30 per share due to the negative effects of COVID-19 on operations[118].