Lub Liquidating Trust (LUB) 12 Nov 182018 Q4 Earnings call transcript

Greetings and welcome to the Luby’s fiscal 2018 Fourth Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Steve Goodweather, Vice President, Finance and Investor Relations for Luby’s. you. Thank

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our Steve. Coutee, on Chief Thanks, for Officer, Operating Gray, Scott everyone. With you me are Todd joining thank Officer. today's all morning, Good And us today call. Financial conference our and Chief

results overall me the we’re begin our satisfied financial for Let by that saying year. with not

in totally for unacceptable. operationally, several While the whole the there are is Company spots, profitability bright decline

sales the for consecutive sales a the look positive well two the quarters Company finish results revenue Cafeteria, the our improve financial performance. of represented This but fiscal decreased the Taking second same-store actions year. with our Luby's for to increase performed largest taking We’re sales X.X% our half X.X%. same-store brand, also up to year. not year. Same-store only across operating fiscal

improvement in Each store profit. restaurant our order a assuming level Cafeteria worth traffic XX% improve With and significantly saw declined is the of same-store being Company we and flow in trend. brand, generated opportunities X% Same-store we profitability, the XX% improve Fuddruckers, must to it million to X.X% in the the through our opposite sales over in However, At sales. $X it profitability. profit biggest segment last two about the for sales by year. returning down in finished the quarters Cafeteria remains

we’ve in approximately perhaps in increased direction. Our trend also franchisees, terms got XX% million. franchisees spot to sales with $XXX,XXX right were XX-month run year-over-year. the growth based was improvement. or XX% XXXX or $X.X fiscal get rate the profit $X.X But brightest to $XX.X million, of where compared current down clients, was our segment Services our over Contract moving Together Fuddruckers Fiscal about million, revenue the to on Culinary representing forward $X.X XXXX. is million

adding anticipate enhance also that locations Culinary in will We fiscal Services. profitability further Contract of XXXX

taken with to and traffic also remains drive franchisee World’s Greatest actions unit economics improving for an Company Hamburger the Our increase our work sales. franchise we as segment network through our opportunity guest and

improve million $XX take on progressed asset we sales including the over to our underperforming to locations, of continue we As closure action our operating program. XX results,

of is you locations. values property to by our those the at whose restaurant recall, purpose the exceeded of the program continued selling significantly restaurants As economics company-owned pay debt operations down unit

qualified also Simultaneously, them. is of will more XXXX, and through agreement, lenders, reach credit due details. we far, the fiscal of XX parties properties sales our we debt new XX% have announce pursuing of of the one with working facility. diligence definitive a selected the We we planned. several Once which million currently we’re asset material are from in generating under refinancing a sold proceeds, So value $XX.X approximately

evidenced also the As that fourth lines. restaurant review forward, all Along action in we’ll we closure sales XX on in to all business necessary, we’ve continue locations, reductions sales We program certain from focusing profitability profitability while and corporate and we made as restaurant and closures, to taking the support our asset evaluating refinancing, and returning when to XXXX. goal, them in portfolio move with costs pending our staffing understand growth primary our fiscal owned scrutinize of by our leased continue is quarter. of segment on restaurants

experience. our and previously. to SVP industry challenges to be our years our and over for has announced Todd restaurant the growing leadership results profitability. working extremely I'm the of recent knows Company, of Company to he well. has and and the the month turn knows years. promotion We most Officer. our significant Coutee Cafeteria Luby's achieved as this leadership worked as roles overcome guide Todd closely Chief two At call this Vice excited last position many us Contract of operations. and to as XX which Senior of Todd held for to his proven to Todd? with people significantly few to at more He he been Services, and several for has brands of Turning He return time, held than past we years has comments. a with Operating also positions our forward position has Company, the Todd I'd like Todd Fuddruckers President Culinary including

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$XX.X Thank ended of million, the from you, at quarter the balance end outstanding down debt with We third Todd. of $XX fiscal quarter. million the fourth

$X.X During compares fourth year. the fourth quarter, in quarter million, $X.X capital last to million our the which expenditures were

were expenditures million capital $XX.X million full-year, in the year. For $XX.X to the prior compared

that the Excluding rebuild year. Harvey, capital required this slightly in expenditures was to down damaged were this restaurant year capital a Hurricane

locations capital expect of given to fiscal We the approximately XX% year. XXXX, fiscal company-operated expenditures XX down our be closure which restaurant last from $X over in is XXXX, million

separation $X.X in reduction increase Contract higher related was to spend in was primarily was three pursue operations, increased outside the due a quarter Culinary general costs. in million primarily $X which and our marketing EBITDA was full-year company-operated and quarter $X.X XXXX. third fourth The marketing the costs, $XX,XXX franchise result our restaurants, profit fourth million increase and million employee down The one-time of business adjusted Fiscal restaurants and Services $X.X compared $X.X a of in year-over-year fees in administrative for EBITDA to we segment professional digital Our flat, fourth million as the down strategy. quarter -- XXXX’s to selling, basically from quarter adjusted XXXX positive. segments, EBITDA SG&A refinancing, million, decrease are

closed, fiscal were fiscal you million in baseline If against was represents EBITDA XXXX. and our location measure EBITDA $X.X XXXX, projected remove for our EBITDA new continuing that our that to stores

contemplated time in our XXXX from to short-term needed This do the flow the improve fiscal beyond. provide cash terms currently liquidity outlook, Given and provides liquidity the in the operations. refinancing

and year. that of Chris the over back stated, our progressing we diligence in with refinancing, turn Chris. by are I’d to like call to calendar it end to the phase expect due the As this And with currently complete

we’re returning with Luby's, this believe there and and sales we our now At have ready you. goal Mr. the turn the Thank improve returns. questions corporate grow Each to margins, Operator, we’re final you at questions. team for to for place [Operator Scott. in Pappas, the back reduce Thanks, the floor any we leadership no our right time. profitability. are to I’ll Instructions] comments. aim of steps of costs, taking and enhance our our the is the and debt

you. today, next for Thank all we you speaking with you Thank joining forward us look and again to quarter.

Thank concludes teleconference. today’s you. This

time. You may at lines your participation. Thank disconnect for this you your