-	Net income for the fourth quarter 2006 included a non-cash income tax benefit of $2.1 million, or $0.09 per share diluted, associated with a favorable tax settlement and a tax benefit generated in previous years that were not recognized in those years because of uncertainty of future realization;

-	Other operating expenses in the fourth quarter 2006 were partially offset by a $1.1 million, or approximately $0.02 per share diluted, from an insurance recovery associated with a business interruption claim due to Hurricane Rita;

-	Sales in the fourth quarter 2006 included an approximately $0.5 million sales contribution from one store that was closed earlier this year and will not contribute to fourth quarter 2007 sales.”

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

		Quarter Ended						Three Quarters Ended
		May 9,			May 10,			May 9,			May 10,
		2007			2006			2007			2006
		(84 days)			(84 days)			(252 days)			(252 days)
SALES		$	75,886		$	77,954		$	221,701		$	225,570
COSTS AND EXPENSES:
Cost of food			20,193			20,634			59,565			60,565
Payroll and related costs			25,433			26,571			75,073			78,395
Other operating expenses			15,944			16,440			49,047			48,858
Depreciation and amortization			3,698			3,632			10,853			10,747
General and administrative expenses			5,321			5,357			15,344			15,129
Asset impairments and restaurant closings			15			700			205			532
Net loss on disposition of property and equipment			57			337			551			330
Total costs and expenses			70,660			73,671			210,638			214,556
INCOME FROM OPERATIONS			5,226			4,283			11,063			11,014
Interest income			281			62			693			156
Interest expense			(191	)		(221	)		(582	)		(742	)
Other income, net			198			218			607			633
Income before income taxes and discontinued operations			5,514			4,342			11,781			11,061
Provision (benefit) for income taxes			1,579			(2,483	)		3,788			(2,419	)
Income from continuing operations			3,935			6,825			7,993			13,480
Discontinued operations, net of income taxes			(16	)		76			(278	)		(1,059	)
NET INCOME		$	3,919		$	6,901		$	7,715		$	12,421
Income per share - from continuing operations
- basic		$	0.15		$	0.26		$	0.31		$	0.52
- assuming dilution			0.15			0.25			0.30			0.49
Income (loss) per share - from discontinued operations
- basic		$	—		$	—		$	(0.01	)	$	(0.04	)
- assuming dilution			—			—			(0.01	)		(0.04	)
Net income per share
- basic		$	0.15		$	0.26		$	0.30		$	0.48
- assuming dilution			0.14			0.25			0.28			0.45
Weighted average shares outstanding:
- basic			26,132			26,047			26,104			26,007
- assuming dilution			27,202			27,565			27,180			27,509

 

 

 

		Quarter Ended						Three Quarters Ended
		May 9,			May 10,			May 9,			May 10,
		2007			2006			2007			2006
		(84 days)			(84 days)			(252 days)			(252 days)
SALES			100	%		100	%		100	%		100	%
COSTS AND EXPENSES:
Cost of food			26.6	%		26.5	%		26.9	%		26.8	%
Payroll and related costs			33.5	%		34.1	%		33.9	%		34.8	%
Other operating expenses			21.0	%		21.1	%		22.1	%		21.7	%
Store level profit			18.9	%		18.3	%		17.1	%		16.7	%
Depreciation and amortization			4.9	%		4.6	%		4.9	%		4.8	%
General and administrative expenses			7.0	%		6.9	%		6.9	%		6.7	%
Asset impairments and restaurant closings			0.0	%		0.9	%		0.1	%		0.2	%
Net loss on disposition of property and equipment			0.1	%		0.4	%		0.2	%		0.1	%
Total costs and expenses			93.1	%		94.5	%		95.0	%		95.1	%
INCOME FROM OPERATIONS			6.9	%		5.5	%		5.0	%		4.9	%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

		May 9,			August 30,
		2007			2006
		(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents		$	3,167		$	9,715
Short-term investments			22,377			—
Trade accounts and other receivables, net			360			1,461
Food and supply inventories			2,492			2,392
Prepaid expenses			1,784			1,609
Deferred income taxes			888			1,160
Total current assets			31,068			16,337
Property and equipment, net			182,736			183,990
Property held for sale			736			1,661
Deferred income taxes			684			3,600
Other assets			965			1,111
Total assets		$	216,189		$	206,699
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable		$	13,428		$	10,932
Accrued expenses and other liabilities			21,910			23,119
Total current liabilities			35,338			34,051
Other liabilities			6,218			7,089
Total liabilities			41,556			41,140
Commitments and Contingencies
SHAREHOLDERS' EQUITY
Common stock, $0.32 par value; 100,000,000 shares authorized; 27,829,952 shares and 27,748,983 shares issued and outstanding as of May 9, 2007 and August 30, 2006, respectively			8,906			8,880
Paid-in capital			43,032			41,699
Retained earnings			158,298			150,584
Less cost of treasury stock, 1,676,403 shares			(35,604	)		(35,604	)
Total shareholders' equity			174,633			165,559
Total liabilities and shareholders' equity		$	216,189		$	206,699

 

 

 

		Three Quarters Ended
		May 9,			May 10,
		2007			2006
		(252 days)			(252 days)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income		$	7,715		$	12,421
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for asset impairments, net of gains/losses on property sales			648			385
Depreciation and amortization			10,853			10,755
Amortization of debt issuance cost			322			322
Non-cash compensation expense			165			138
Share-based compensation expense			664			317
Deferred income tax expense (benefit)			3,240			(2,541	)
Cash provided by operating activities before changes in operating assets and liabilities			23,607			21,797
Changes in operating assets and liabilities:
(Increase) decrease in trade accounts and other receivables, net			1,101			(502	)
Increase in food and supply inventories			(100	)		(156	)
Increase in prepaid expenses and other assets			(351	)		(303	)
Increase (decrease) in accounts payable, accrued expenses and other liabilities			687			(3,347	)
Net cash provided by operating activities			24,944			17,489
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from redemption/maturity of short-term investments			9,500			1,667
Purchases of short-term investments			(31,877	)		—
Proceeds from disposal of assets and property held for sale			1,743			5,936
Purchases of property and equipment			(11,388	)		(8,671	)
Net cash used in investing activities			(32,022	)		(1,068	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of debt			—			2,000
Repayment of debt			—			(15,500	)
Proceeds received on exercise of stock options			530			991
Net cash provided by (used in) financing activities			530			(12,509	)
Net increase (decrease) in cash and cash equivalents			(6,548	)		3,912
Cash and cash equivalents at beginning of period			9,715			2,789
Cash and cash equivalents at end of period		$	3,167		$	6,701
Cash paid for:
Income taxes		$	229		$	181
Interest			113			492