J. Alexanders (JAX) 8-KJ. Alexander’s Holdings, Inc. Reports Results

Exhibit 99.1

FOR IMMEDIATE RELEASE                

J. ALEXANDER’S HOLDINGS, INC. REPORTS RESULTS

FOR FIRST QUARTER ENDED MARCH 29, 2020

NASHVILLE, TN, June 9, 2020-- 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 results for the first quarter ended March 29, 2020.

Business Update and 2020 Outlook

Average weekly same store sales¹ for fiscal 2020 compared to monthly periods of 2019 are as follows:

When governmental restrictions ondine-in service began during March 2020 as a result of the novel coronavirus(“COVID-19”) pandemic, the Company quickly shifted its service model to acarry-out platform, under which management projected that average weekly sales would likely range between10-20% of historical volumes. During the period frommid-March 2020 through the end of April 2020, prior to the reopening of dining rooms on a limited basis in certain markets, the Company experienced sales volumes that were approximately 18% of the sales recorded during the same period in the prior year, with sales growing steadily on a weekly basis during that timeframe. Since the week beginning April 27, 2020 when the Company has been able to begin to reopen dining rooms with limited capacities in Tennessee, Georgia, Florida, Texas, Ohio, and other markets, sales volumes have continued to increase, and for the week ended May 31, 2020 totaled approximately 61% of sales recorded during the same period in the prior year.

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As of June 9, 2020, the Company has reopened dining rooms on a limited capacity basis at all of its restaurant locations while continuing to also offercarry-out service at all of its locations.Off-premise sales have grown significantly since the Company began operating on the new service model in March 2020. Specifically,off-premise sales only during the week ended May 31, 2020 totaled approximately 29% of total sales and were up approximately 35% over the week ended March 29, 2020, which was the first full week of primarilycarry-out only sales. This increase is being driven by increased digital marketing and email campaigns to drive guest awareness, the addition of curbside service, investments that the Company has made in its online ordering platform partnership with ChowNow, and through menu innovation to include family-style meals (offering a complete meal for larger parties including salad, entrée, side items and dessert) and butcher shop sales ofcook-at-home,hand-cut steaks. The Company is also offering bottles of wineto-go in most markets and is testing delivery in a limited number of markets.

The Company is not providing guidance for fiscal 2020 in light of the current uncertain consumer environment and unprecedented global market and economic conditions.

First Quarter 2020 Highlights Compared To The First Quarter Of 2019

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In March 2020, the Company implemented its Emergency Sick Leave Policy (“ESLP”) for hourly team members which provided for up to two weeks of paid leave for hourly team members who are either infected byCOVID-19 or employed at a restaurant that closed its dining rooms in response to theCOVID-19 pandemic. During the first quarter of 2020, the Company incurred approximately $2,050,000 inpre-tax charges related to continuing benefits and ESLP pay for its furloughed staff members as a result of theCOVID-19 pandemic. Additionally, the impact ofCOVID-19 on the Company’s business has resulted in the need to perform impairment assessments of the Company’s long-lived assets, goodwill and other intangible assets. As a result, the Company determined it was necessary to record anon-cash impairment charge for the first quarter of 2020 of $15,737,000, representing the entire balance of the Company’s goodwill. Additionally, the Company has determined that it will not reopen one of its locations which closed in March 2020 due to theCOVID-19 pandemic, and in the first quarter of 2020 the Company recorded an impairment charge of $689,000 in order to present the related long-lived assets at this location at their estimated fair value. The Company has subsequently entered into an agreement to sell this location for an amount equivalent to the fair value of the property, and the sale is expected to close in the third quarter of 2020, subject to customary closing conditions. Neither of these impairment charges had an impact on the Company’s cash flows or debt covenants for the first quarter of 2020. See “Other Financial and Performance Data” at the end of this release for additional information on guest counts and other metrics.

Liquidity

As of March 29, 2020, the Company’s cash and cash equivalents totaled $24,818,000, and total outstanding indebtedness equaled $25,722,000, including $21,000,000 outstanding on the Company’s lines of credit facilities. On June 5, 2020, the Company entered into the Third Amended and Restated Loan Agreement with its lender, which increased availability under the existing $1,000,000 revolving credit facility to a maximum of $16,000,000 by adding an accordion feature, subject to compliance with minimum revenue requirements. The Company pledged additional collateral under this agreement, including mortgages on five additional restaurant properties which were previously unencumbered by the Company’s debt obligations. In April 2020, the Company also entered into certain letter agreements and a modification agreement with its lender to defer interest and principal payments for April, May and June 2020.

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Additionally, effective May 6, 2020, the Company obtained a waiver of its existing credit facility financial covenants through the period ending July 4, 2021, the end of the Company’s second quarter of fiscal 2021. This waiver also implemented new financial covenants, as previously disclosed in the Company’s Current Report on Form8-K filed on May 8, 2020, requiring minimum revenues and maximum debt ratios. The Company was in compliance with the existing financial covenants for the period ended March 29, 2020, and expects to be in compliance with the new financial covenants through the waiver period.

Further, the Company has undertaken various measures to preserve liquidity in the current economic environment, including engaging in ongoing negotiations with landlords to restructure rental obligations, securing delayed payment terms with certain vendors, and delaying or cancelling significant capital expenditure projects for the balance of fiscal 2020.

As of June 1, 2020, the Company had cash on hand of approximately $14,600,000. During April 2020, the Company used cash of approximately $7,600,000, for a weekly cash burn rate of approximately $1,900,000. As most of the Company’s vendors are on30-day payment terms, many payments funded in April 2020 were for March 2020 purchases which were more consistent with historical volumes, which negatively impacted the April 2020 cash burn rate. The Company has undertaken significant steps to reduce expenses since March 2020, and these steps, coupled with the growth in sales levels, have allowed the Company to reduce its weekly cash burn rate to approximately $480,000 during the month of May 2020. The Company continues to work to maximize restaurant operating margin at reduced sales levels and to negotiate agreements with certain landlords to abate or defer rental payments beginning in June 2020. The Company is currently forecasting the weekly cash burn rate to be approximately $550,000 to $580,000 under the current operating model commencing in June 2020 through the end of the third quarter. This amount includes capital expenditure commitments including the construction of one new location expected to open in the fourth quarter of 2020.

Chief Executive Officer’s Comments

“We entered fiscal 2020 with high expectations,” stated Mark A. Parkey, President and Chief Executive Officer of J. Alexander’s Holdings, Inc. “ Same store sales during the first two months of the year were encouraging and then we encountered theCOVID-19 pandemic, which required us to close our dining rooms at all of our restaurants. Unlike a lot of restaurant concepts, we buy all of our beef fresh and pay a premium to have it aged for us. When the pandemic hit, we had a surplus of fresh beef at various stages in our supply chain

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that we needed to work through. Thus, after almost 30 years of resistingcarry-out dining in favor of maximizing thein-person dining experience, we found ourselves pivoting to anoff-premise only operating platform at 46 restaurant locations. In an effort to market our premium fresh beef and, at the same time, provide value to our loyal guests, we not only featured some attractively priced beef-centered entrees, but we also offered ‘family packs’ utilizing our beef products and sold ‘butcher-shop’ cuts ofcook-at-home steaks and whole loins. While the margins we realized from these beef offerings were lower, we were able to cover our input costs and work through the pipeline of beef in our distribution system and, in the process, make a lot of our guests happy since many of the grocery stores were depleted of beef and other proteins.

“As we look ahead, we are optimistic that our guests will be out in force and eager to resume their traditional routines,” Parkey stated. “We are already seeing a strong level of pent up demand in various restaurants, with one of our locations recording sales of $186,000 during Mother’s Day week 2020 with only 50% of the seats open to the public and no pub seating available. We are closely monitoring the various government guidelines for reopening our dining rooms and will do our best to provide meaningful safety measures to protect our guests as well as our employees, including by observing social-distancing protocols, employing the use of personal protective equipment, checking temperatures of employees daily, routinely sanitizing high-touch surface areas, and other measures. We are also encouraged by the strong continued response to ourcarry-out offerings over the past couple of months. One of our restaurants generated $35,000 ofoff-premise revenue on Mother’s Day 2020, which is a phenomenal amount for a concept that wasn’t offering such an option three months ago. As such, we are actively exploring various platforms which will allow us to continue to meet this demand without sacrificing the guest experience in our dining rooms that has been foundational to our success for the past 29 years.”

On the beef front, Parkey noted that the Company is currently encountering limited supply and higher than normal input costs relative to all of its beef offerings. “We have a great relationship with our primary beef supplier and are working closely with them to get the aging pipeline up and running again as we open more and more seats in our dining rooms. Unfortunately, there are operational hurdles at all levels of the supply chain and our focus is on procuring beef loins from all available sources to the extent they meet our specifications and, at least for the next several weeks, doing our best to ensure an ample inventory of other protein offerings is available for our guests.”

Parkey went on to note that the Company had decided not to reopen its restaurant in Lyndhurst, Ohio. “We had an incredibly loyal and talented team at the Lyndhurst Grill,” Parkey noted, “which was the most difficult part of our decision to close this location. Unfortunately, we determined that the financial performance at this restaurant was not adequate to justify its continued operation.”

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Restaurant Development

The Company has plans to open a new Redlands Grill in San Antonio, TX, during the fourth quarter of 2020, as previously announced. The Company is continuing construction of this new Redlands Grill location at a slower pace than previously anticipated, but still expects to be able to open for business in San Antonio before the Holiday season of 2020.

Early in the first quarter of 2020, the Company signed a lease to build and operate a new J. Alexander’s Restaurant in Madison, AL, one of the fastest growing markets in that state. Although the Company originally planned to open this location in the fourth quarter of 2020 as well, construction on this location has been delayed in an effort to conserve cash resources, and the Company now expects to open the Madison, AL, restaurant in the second half of fiscal 2021.

Strategic Alternatives Evaluation

As part of the Company’s Board of Directors’ (the “Board”) previously announced review of strategic alternatives, the Company retained the investment banking firm of Piper Sandler in August 2019 to assist the Company in its evaluation of strategic alternatives, with a particular focus on a sale of the entire Company. The Board believed, and took into account the views of shareholders, that the small size of the Company made it inefficient to be a standalone publicly traded company. Piper Sandler ultimately contacted over 125 potential interested parties, and through an exhaustive process, three interested parties emerged as serious potential acquirers. One of those parties was in advanced negotiations with the Company for an acquisition at a premium to the then-current market price. The initial impacts of theCOVID-19 pandemic led the potential acquirer to reduce its proposed purchase price twice and to insist on conditions relating to the performance of the Company. Ultimately, when government entities mandated the closure of the Company’s restaurants, except for limitedcarry-out, the Board determined that no transaction at a price that reflected the long-term value of the Company would be able to be consummated until the resolution of uncertainties about theCOVID-19 pandemic and the return of the Company’s business to satisfactory levels. For the near term, the Company intends to focus on rebuilding its sales base as its restaurants are able to reopen and increase capacity by providing an outstanding dining experience for its guests. The Board currently believes it will be sometime in 2021 before the Company can conclude its evaluation of strategic alternatives, focusing on the potential sale of the Company.

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(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)Please refer to the financial information accompanying this release for our definition of thenon-GAAP financial measure Adjusted EBITDA and a reconciliation of net income (loss) to Adjusted EBITDA. Management uses Adjusted EBITDA to evaluate operating performance and the effectiveness of its business strategies.

(3)“Restaurant Operating Profit Margin” is the ratio of Restaurant Operating Profit, anon-GAAP financial measure, to net sales. Please refer to the financial information accompanying this release for our definition of thenon-GAAP financial measure Restaurant Operating Profit and a reconciliation of operating income (loss) to Restaurant Operating Profit. Management uses Restaurant Operating Profit to measure operating performance at the restaurant level.

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, visitwww.jalexandersholdings.com

Forward-Looking Statements

This press release issued by J. Alexander’s Holdings, Inc. containsforward-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

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future, including the impact of theCOVID-19 pandemic and the Company’s plans to continue its review of strategic alternatives and its efforts to enhance shareholder value. Theseforward-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 ofthe COVID-19 pandemic; the Company’s ability to reopen its restaurantsfor in-person dining, 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 ofthe 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 onForm 10-K filed with the SEC on March 13, 2020, as amended on April 17, 2020, and subsequent filings, including under the heading “Risk Factor” in its Current Report on Form8-K filed with the SEC on May 8, 2020. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact:

J. Alexander’s Holdings, Inc.                

Jessica Hagler

Chief Financial Officer                

(615)269-1900

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J. Alexander’s Holdings, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(Unaudited in thousands, except per share amounts)

Note: Per share amounts may not sum due to rounding.

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J. Alexander’s Holdings, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations Data

as a Percentage of Net Sales (Unaudited)

Note: Certain percentage totals do not sum due to rounding.

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J. Alexander’s Holdings, Inc. and Subsidiaries

Other Financial and Performance Data (Unaudited)

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J. Alexander’s Holdings, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Unaudited in thousands)

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J. Alexander’s Holdings, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited in thousands)

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J. Alexander’s Holdings, Inc. and Subsidiaries

Non-GAAP Financial Measures and Reconciliations

(Unaudited in thousands)

Non-GAAP Financial Measures

Within this press release, we present the followingnon-GAAP financial measures which we believe are useful to investors as key measures of our operating performance:

We define Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization, or “Adjusted EBITDA”, 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 expenses,non-cash compensation, loss from discontinued operations, andpre-opening costs.

Adjusted EBITDA is anon-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.

We define “Restaurant Operating Profit” as net sales less restaurant operating costs, which are cost of sales, restaurant labor and related costs, depreciation and amortization of restaurant property and equipment, and other operating expenses. Restaurant Operating Profit is anon-GAAP financial measure that we believe is useful to investors because it provides a measure of profitability for evaluation that does not reflect corporate overhead and othernon-operating or unusual costs. “Restaurant Operating Profit Margin” is the ratio of Restaurant Operating Profit to net sales.

Our management uses Adjusted EBITDA and Restaurant Operating Profit to evaluate the effectiveness of our business strategies. We caution investors that amounts presented in accordance with the above definitions of Adjusted EBITDA or Restaurant Operating Profit may not be comparable to similar measures disclosed by other companies, because not all companies calculate thesenon-GAAP financial measures in the same manner. Adjusted EBITDA and Restaurant Operating Profit should not be assessed in isolation from, or construed as a substitute for, net (loss) income, operating (loss) income or other measures presented in accordance with GAAP.

A reconciliation of thesenon-GAAP financial measures to the closest GAAP measure is set forth in the following tables:

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J. Alexander’s Holdings, Inc. and Subsidiaries

Non-GAAP Financial Measures and Reconciliations

(Unaudited in thousands)

Note: Certain percentage totals do not sum due to rounding.

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