J. Alexander’s Holdings, Inc. (NYSE: JAX) (the Company), owner
and operator of J. Alexander’s, Redlands Grill, Stoney River
Steakhouse and Grill and other restaurants, today reported same
store sales results as well as certain other preliminary metrics
related to its continuing recovery from the impact of the novel
coronavirus outbreak (COVID-19).
Business Update
During the third quarter, the Company has continued to see
steady guest count recovery and increasing sales across its
restaurant base. Sales volumes for the first three weeks of
September 2020 averaged approximately 90.0% of 2019 sales for the
comparable period. Average weekly same store sales(1) for recent
fiscal 2020 periods as compared to the same periods of 2019 are as
follows:
J. Alexander’s/Grill Restaurants
Stoney River Steakhouse and Grill
Second quarter (13 weeks)
(55.2)%
(55.9)%
July (4 weeks)
(25.8)%
(25.2)%
August (4 weeks)
(20.0)%
(20.6)%
September (through Sept. 13th (3
weeks*))
(9.9)%
(11.2)%
* Note that the Company’s third quarter of
fiscal 2020 ends on September 29, 2020
In conjunction with the earnings release for the second quarter
of 2020 dated August 4, 2020, the Company estimated the weekly cash
burn rate for the third quarter of 2020 would be in the range of
$325,000 to $375,000 per week and that the fourth quarter would see
an improvement from a cash flow perspective, assuming continued
sales improvement. Based on those assumptions, the Company
anticipated that it would have adequate liquidity for 2020. The
Company has continued to see sales improvements beyond the levels
originally anticipated, and as a result has updated its original
cash flow projections for the third quarter as well as the fourth
quarter of 2020. These estimates, which include the proceeds from
the closing of the sale of the Cleveland property on September 10,
2020 as well as required debt service payments and capital
expenditure commitments (including the construction of one new
location scheduled to be completed in the fourth quarter of 2020
and opened in the first quarter of 2021), now project that the
Company will be breakeven to modestly cash flow positive for the
third quarter of 2020. For the fourth quarter of 2020 (which
contains 14 weeks due to the 53rd week in fiscal 2020), the Company
expects to be cash flow positive in the range of $400,000 to
$450,000 per week. The cash flow improvements reflected above for
the third and fourth quarters of fiscal 2020 include the impact of
better than anticipated sales across all concepts, a generally
favorable cost of sales environment, continued operational
efficiencies achieved at the restaurant level and the deferral of
the planned construction start date of the J. Alexander’s in
Madison, Alabama until January, 2021, among other factors.
As of September 14, 2020, the Company’s cash on hand totaled
approximately $18.6 million.
Chief Executive Officer’s Comments
“As we’ve shared in previous communications, there will be
winners and losers when the pandemic is over and our goal from the
very beginning has been to be one of the winners,” stated Mark A.
Parkey, President and Chief Executive Officer of J. Alexander’s
Holdings, Inc. “The consistent improvement in our top line sales
since all of our dining rooms were allowed to begin reopening in
June, combined with the efficiency of those sales as reflected in
improved restaurant operating margins over the past few months,
lead me to conclude that we are well-positioned to achieve our goal
and to do so sooner than we had originally envisioned.” Parkey
noted that the significant improvements in sales have been achieved
with virtually all restaurants continuing to operate under various
seating limitations that differ from state-to-state across the
Company’s 46 locations, with the consolidated average totaling
approximately 57% of total seats available within the 46
restaurants. “The primary factors driving our rapid recovery thus
far have been the strong support we have received from our great
base of loyal guests and the tireless efforts of our employees who
have risen to the occasion at all levels within the Company,”
Parkey stated. “Our historical marketing research tells us that
approximately 16% of our guests drive approximately 66% of our
visits. That core group of guests has been the backbone of our
recovery to this point, much as they were in the aftermath of the
Great Recession of 2008-2009. In addition to supporting us in our
dining rooms, they have supported our carry out business in a
tremendous way, with sales of $600,000 - $700,000 each week over
the past 10 weeks, even as the dining rooms ramped back up.” Parkey
added, “Our culinary team has been working diligently to come up
with “Family Pack” offerings that will appeal to a broad variety of
our guests and we are confident that, as we enter the 2020 holiday
season, we will be well positioned to meet their needs whether at
home or in our dining rooms.”
“August was a critical month for our recovery efforts and
represented a key turning point,” Parkey summarized. “Based on
quarter to-date performance, we expect to generate positive
Adjusted EBITDA(2) for the third quarter. Our sales trends,
improving margins and our ability to maintain our carry out volumes
even as the dining rooms have generated steadily increasing sales,
all indicate that the worst of the storm has passed. While we are
still aware of the hurdles that remain on the horizon, and we are
still taking abundant precautions within all of our restaurants to
ensure the health and safety of our guests as well as our
employees, we are extremely excited about the opportunity in front
of us to emerge from the pandemic a stronger company than we were a
few short months ago.”
(1) Average weekly same store sales per restaurant is computed
by dividing total restaurant same store sales for the period by the
total number of days all same store restaurants were open for the
period to obtain a daily sales average. The daily same store sales
average is then multiplied by seven to arrive at average weekly
same store sales per restaurant. Days on which restaurants are
closed for business for any reason other than scheduled closures on
Thanksgiving and Christmas are excluded from this calculation.
Sales and sales days used in this calculation and amounts of other
“same store” figures in this release include only those for
restaurants in operation at the end of the period which have been
open for more than 18 months. Revenue associated with reduction in
liabilities for gift cards, which is recognized in proportion to
guest redemptions based on historical redemption rates and commonly
referred to as gift card breakage, is not included in the
calculation of average weekly same store sales per restaurant.
Average weekly same store sales are computed from sales amounts
that have been determined in accordance with U.S. generally
accepted accounting principles (GAAP).
(2) Adjusted Earnings Before Interest, Taxes, Depreciation and
Amortization, or “Adjusted EBITDA,” is defined as net (loss) income
before interest expense, income tax expense (benefit), depreciation
and amortization, and adding asset impairment charges and
restaurant closing costs, loss on disposals of fixed assets,
transaction, contested proxy and other related expenses, non-cash
compensation, loss from discontinued operations, and pre-opening
costs. Adjusted EBITDA is a non-GAAP financial measure that we
believe is useful to investors because it provides information
regarding certain financial and business trends relating to our
operating results and excludes certain items that are not
indicative of our operations. Adjusted EBITDA does not fully
consider the impact of investing or financing transactions as it
specifically excludes depreciation and interest charges, which
should also be considered in the overall evaluation of our results
of operations.
About J. Alexander’s Holdings, Inc.
J. Alexander’s Holdings, Inc. is a collection of restaurants
that focus on providing high quality food, outstanding professional
service and an attractive ambiance. The Company presently operates
46 restaurants in 16 states. The Company has its headquarters in
Nashville, TN.
For additional information, visit www.jalexandersholdings.com
Forward-Looking Statements
This press release issued by J. Alexander’s Holdings, Inc.
contains forward‐looking statements, which include all statements
that do not relate solely to historical or current facts, such as
statements regarding our expectations, intentions or strategies
regarding the future, including the impact of the COVID-19 pandemic
on our operations, cash needs, liquidity and financial results, and
cost-containment efforts. These forward‐looking statements are
based on management's beliefs, as well as assumptions made by, and
information currently available to, management. Because such
statements are based on expectations as to future financial and
operating results and other events and are not statements of fact,
actual results may differ materially from those projected and are
subject to a number of known and unknown risks and uncertainties,
including the health and financial effects of the COVID-19
pandemic; the Company’s ability to reopen its restaurants for
in-person dining at normal capacities, and thereafter to
reestablish and maintain satisfactory guest count levels and
maintain or increase sales and operating margin in its restaurants
under varying economic conditions; the effect of higher commodity
prices, unemployment and other economic factors on consumer demand;
increases in food input costs or product shortages and the
Company’s response to them; the Company’s ability to obtain access
to additional capital as needed; the Company’s ability to comply
with new financial covenants under its loan agreement with its
lender; the impact of any impairment of our long-lived assets,
including tradename; the Company’s ability to defer lease or
contract payments or otherwise obtain concessions from landlords,
vendors and other parties in light of the impact of the COVID-19
pandemic; the number and timing of new restaurant openings and the
Company’s ability to operate them profitably; competition within
the casual dining industry and within the markets in which our
restaurants are located; adverse weather conditions in regions in
which the Company’s restaurants are located; factors that are under
the control of third parties, including government agencies; the
Company’s evaluation of strategic alternatives; as well as other
risks and uncertainties described under the headings
“Forward-Looking Statements,” “Risk Factors” and other sections of
the Company’s Annual Report on Form 10-K filed with the SEC on
March 13, 2020, as amended on April 17, 2020, and subsequent
filings, including under the heading “Risk Factors” in its
Quarterly Report on Form 10-Q filed with the SEC on August 6, 2020.
The Company undertakes no obligation to update any forward-looking
statements, whether as a result of new information, future events
or otherwise.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200917005958/en/
J. Alexander’s Holdings, Inc. Jessica Hagler Chief Financial
Officer (615) 269‐1900
J Alexanders (NYSE:JAX)
Graphique Historique de l'Action
De Août 2024 à Sept 2024
J Alexanders (NYSE:JAX)
Graphique Historique de l'Action
De Sept 2023 à Sept 2024