J. Alexanders (JAX) 8 Nov 182018 Q3 Earnings call transcript

Good morning, ladies and gentlemen. Thank you for standing by. Welcome to the J. Alexander's Holdings, Inc.

Third Quarter 2018 Earnings Conference Call. recorded. being is conference Today's [Operator Instructions]. is pleasure Mr. introduce you my It to to now Tom today's of Lawrence introduction for speakers. ahead, go Please Mr. Lawrence.

of Inc. Thank you. XXXX. copy conference results of this joining By us Alexander's We appreciate have your call interest now, everyone the to received quarter news the third for in should on J. of Holdings, a discuss can at Alexander's does it is copy, and that distributed website www.investor.jalexandersholdings.com, send copy release at a you was Berendt yesterday immediately. need afternoon. call or will she you on XXX-XXX-XXXX, If J. Katherine anyone a available

are call, call to in its than are of made to remind the assumptions. based turn Securities Litigation I of statements forward-looking and Inc., pursuant that President you harbor of Stout the The CEO statements news Before XXXX. Alexander's expectations that I of These other statements. Holdings, company the over made provisions fact, conference believes Lonnie release statements are Reform Private safe the II, reasonable historical and all J. this on Act during

the results risks, differ by statements actual expressed these performance unknown could industry known achievements and cause other implied expectations company's results, results, and future performance these forward-looking or or factors However, the important from involve company's materially of or uncertainties or that to achievements forward-looking statements.

website Investor section website. for filings the and you company's find and in Factors subsequent with the the described headings the Forward-Looking the Risk under XX, Statements report, Relations sections concerning information SEC's which XX-K is year company's press and risks, can those XXXX, release yesterday's factors Additional the of Form SEC, annual and other uncertainties in the on of other December ended and

measures statistical accompanying XXXX. this call, measures and X, and available press are disclosed GAAP non-GAAP in the summary release For November the financial other dated related the information in

of company's the past results necessarily operations future its not results. addition, do In indicate

of call any should the by diminish that of date the are passage X, to time people the contents and call pleasure only to of the the of his Holdings, during that of information my property November we the statements may Lonnie of J. transmission replay made to know over replay understand let will call the quality with listening company, of the Inc. done call, or statements. the made wanted itself It's Finally, of the for be the the as call Also, the Those turn the consent are XXXX. Stout opening remarks. Alexander's the now

here, Mark everyone you, our on Thank Chief Parkey, welcome presentation the morning. Financial for this the part Officer introduce I'd like him Tom. call later. to his is and of I'll

for our September We are XX, the with pleased XXXX. quarter results ended third

disruption - annual coupled summer small The markets. havoc As relatively a but of that the low the of our with a summer in a can restaurant wreak operating in is revenue. typically cycle. This factor, portion the on hurricane point in occurs our fact times certain months, season at our drive much a the guests in months usually loyal routine significant their group company, a where of

quarter our it to us arrives. and in the rear-view So when really causes third encouraged be mirror fourth quarter the is

in restaurant third We concepts XXXX. for our for of quarter of pleased sales the same-store with are both increases the

XXXX average for quarter. the third XXXX. X.X% third quarter for to Stoney quarter our quarter average the X.X% weekly $XXX,XXX rose sales net recent a the sales quarter, over sales $XX,XXX the $XXX,XXX Steakhouse For $XX,XXX Grill to of weekly At sales and in in X.X% the reported of Same-store Alexander's the of J. third River from $XX,XXX,XXX our advanced of third weekly of quarter restaurant, restaurants XXXX. same-store Alexander's/Grill $XX,XXX,XXX, reached 'XX comparable average sales J. gain in of Holdings in most the from in

addressing as our sales expressed we soft the awareness order our trial. very our we to heighten sales XXXX enter restaurants. release the concern some in various and to Jack's guest the guest important in In holiday strategies aggressively is As issue, of yesterday, persistent generate season newer have primary Grill's we in this group in more are press implementing drive

have are We figure a out what guests of once that convinced market, times. offer us handful after we in their to visiting

we counts will at long-term for the As and newer our with in and Over Stoney quarter Grill help foundation report the past, solid River another strong a performance, sales. restaurants. respect in both increased posting these group, they guest build continue success to Steakhouse in us to

operationally while we enter we the previous loss a generated in have operations certain at always-critical a the market normalized pleased income quarter experiencing coupled recorded of strong increase before most measures the we in are within this the operations been to of we the The of prospects season. $X,XXX,XXX from our guest continued As income recent River most to about counts our organic. is have various that $XXX,XXX from build third compared continuing Stoney more holiday to a beef we quarter are year. momentum locations, loss before taxes as taken quarters, of company to last Due of group noted with in XXXX, in optimistic continuing most taxes locations, and sales across report

- a caused in days the the of expenses expenses third in decrease XXXX, closures restaurants of before transaction with that the earnings X during food approximately consisting a reopening nonrecurring from and income Such income closed and those taxes of the of and $XXX,XXX approximately third profit restaurant release, hurricanes. cleanup $XXX,XXX, yesterday's to company's of XXXX 'XX in lost were transaction. of primarily of continuing spoilage be noted $XXX,XXX decrease third revenues quarter $X,XXX,XXX, XX quarter also loss proposed associated operations a should the in cost approximately restaurants. of Florida due operating $XXX,XXX of losses, approximately It included related of noted in XX quarter quarter total As for the to for to

XXXX, Management revenue quarter lost for its North to closed third of in Carolina these of due approximately company restaurants XXXX the $XX,XXX total the quarter of the a related the is X in third estimates of During days. Hurricane to closed days impact the of Florence.

Black loss quarter EBITDA income for the in $X,XXX,XXX loss tax XX.X% XXXX. per of to to $XXX,XXX give line third the net the in a basic profit a quarter the of further in company in a and share XXXX. $XXX,XXX of the grant During our third related $XXX,XXX in XXXX, XXXX, third results to agreement interest third Knight was grant included the quarter quarter minutes. expense from XXXX of to $X.XX Results the Black The diluted net will interest of this of resulted of to With XXXX. compared quarter quarter few of with compared XXXX. respect corresponding third the this $X,XXX,XXX. an of the a posted bottom valuation XXXX of interest to you expense XXXX in a Adjusted profit the Advisory Mark for quarter quarter compared is third the tax in significantly LLC of quarter benefit recorded of the of income $X.XX benefit profit $XXX,XXX same XXXX. in loss climbed of of an details related Knight Services to the from of quarter in $XX,XXX third This up $X,XXX,XXX

That's $XXX,XXX expenses the of quarter recent totaled $XXX,XXX most preopening in Our up over third quarter. the XXXX.

we is metric expense restaurant with restaurant margin, Restaurant year-over-year. a function profit use operating profit at is percentage the of strictly of level. new the or preopening as associated measure performance a Our operating openings restaurant timing a operating sales, to

profit restaurant for X.X%, compared quarter, the quarter recent to favorably For the which margin of most operating was third XXXX. X.X%

a moving of from XX% to of the from of percentage a cost ago, third XXXX net as quarter comparable in year sales XX.X% sales XXXX. third Our quarter decreased the in quarter of the

of the higher that was cautiously perform Now We will sales within for beef primarily term. parameters weekly remain to the the this optimistic near due to averages. improvement continue impact market acceptable favorable

anticipate October Grill Stoney pricing J. the any locations. some and to our River on Troy, demand, windfalls we quarter. one upward opened newest highest expecting we not close pressure in proximity in our volume do On Steakhouse XX, of we're in Michigan, during fourth Alexander's Although

will expectations is open we in three restaurants Our XXXX. up that current

to We been the have the Mark? Chief now the third and quarter Mark leases update related Parkey, call for details year. remainder remarks such will turn over our executed. sites an I guidance will to once on Financial about announce Officer, the of for

you, Lonnie, good Thank and morning, everyone.

guests base which in As a quarter evacuating top can for line. the Lonnie always all many company or at to hurricane, negatively oncoming the our eating face of traveling home, summer our of even home indicated, an of our their poses vacations with impact challenge third

The be X.X% to within over net expense upon valuation the program, of costs a impact increased we amount while the quarter increased company's X, the J. final estimated average X.X%, a valuation at XXXX. Alexander's/Grill are the authorized period calculated was management XXXX. of the of up activities of total Knight most completion The restaurants our The quarter vesting fourth by of Advisory which XXXX guest is period occurred of restaurants, operating within restaurant included issued the sales of of quarter quarter. sales the cumulative on the of the quarter $XXX,XXX Black a I quarter glad of X.X% by loss associated compared third to in XXXX, compared and in grant, noncash a base beverage compared restaurants restaurants third for grant sales quarterly average was for recognized quarter checks third offering XXXX XXXX. X.X% Board Stoney LLC third the base highlighted same-store newly X.X% recent the the based replacing the price on sales recorded with $XXX,XXX, the $XX.XX any counts XXXX. of and price at quarter River quarter end before resulted recognized Services under quarter, third third third restaurants, of our an cash restaurants quarter and third credit profits costs Share guest has vesting Black-Scholes Primarily to with cash increased highlights be the Stoney Earlier, to of valuation has in been average in restaurant closing interest corresponding then of the XXXX XXXX, may restaurants, The average in most to change corresponding in in At sales, associated recent the from the expenses of both such of to X, counts on quarter With checks grant's July in effect Black quarter XXXX October quarter requirement. purchase as quarter has at applicable operating was approximately within increasing XXXX counts company will $X,XXX,XXX the third repurchase be with base Black over checks, all million common been quarter third Inflation guest grant's cash River are due and estimated percentage and expected repurchase fund third the in menu our with made X.X% So J. made provide open the per of by Steakhouse XXXX. valuation to of few increase Knight an restaurant for recent be River fees authorized net $XX.XX by Stoney X.X% with an the Black $XX.XX guest and to quarter beef closing of a will agreement our accordance current to Directors revised costs October the the to X-year of a been company the the quarter include cash in to estimated with in solely the X.X% has period basis, concepts, the third third average compared weekly Alexander's/Grills repurchases XXXX. estimated of the of the over September of $X,XXX,XXX most flow of quarter Knight to of at on to quarter River from XXXX same-store market check and grant prices authorized to amount information X.X% The restaurants under of and the of within are to as model, the the XXXX. from $XX.XX company's to spend market X year. computations, from third were were River the securities the of same-store company XXXX. that inflation in within locations in noted, loss guest to XXXX, most third the Lonnie sales not J. has XXXX the of beef for in River its of conditions the was J. in consolidated the considerations. and corresponding compared will restaurants of profits also company's of increased the of Other most the from J. for $XXX,XXX a costs in collection of laws the share approximately The the the total to of $XXX,XXX at increased stock increased X.X% same-store consulting XXXX. a the of program The any XXXX. food counts the November recent to guest third behind for XX.X% quarter time the aggregate $X,XXX,XXX, Grill XXXX we the And a consulting The XXXX. were which performance to financial purchases. X-year by XXXX, the the Alexander's/Grills third since incurred other interest Repurchases quarter which the Knight guest On of were compared Lonnie related third in XXXX. for the And that program to net of $XX.XX hand J. noncash company's X.X% the third program, and the X.X%. within Stoney respect purchase XXXX. quarter time Alexander's/Grills for operating quarter, Stoney compared profits of timing, the within quarter XXXX. third XX.X% obligate average available guidance Alexander's/Grill $X,XXX,XXX to quarter the of of during of The labor recent quarter up of the program in common compared same-store of grant the the quarter of using for general compared average interest The stock. valuation guest down quarter third was weekly operating the does economic locations made repurchases over and while of the XX, aggregate quarter over third The XXXX to base X, of fees during and most XXXX, weekly related XX.X% X.X% repurchased of Under its for third pleased place further calculated $XX increase the additional the XX.X% quarter the with quarter pricing upon the in prevailing higher flow. quarter of and XXXX. third each market. when ending a down XXXX the XXXX. company board prices, third us. X.X% acquire was net of the will to the with of hand XX, October XXXX. be alcoholic shares at were Alexander's/Grills particular XXX,XXX prior moments during performed with company's valuation stock in were of depend XXXX always the restaurants Stoney check using share in The operating impacting the down years quarter average guest of When from XXXX stock

of $X.X at for million, $XX.X $XX.X of previously rate, the sales. a for as for fiscal per year; the $X.X for the to will back increase to follows: fiscal million of the at expenditures, has increase to same-store is Stoney million; guidance operator to the share. $X.XX to $X.X With adjusted the per segment the year guided anticipated to the same-store reported to River to Steakhouse $X.XX adjusted call. capital to to now now X% guided was the That share, XXXX effective been year, to revised call-in at open benefit at guided million was respect as $XXX 'XX; locations, X% to I on upon current for tax call adjusted this million year year, at guided prior was prior share, the the previously Alexander's/Grills X morning's That $XX.X increased Grill fiscal earnings same basic X.X% $X.X is X% participant to increase million; benefit EBITDA, which X.X% our August estimated turn million was $X.XX X% per now million to to been guidance has for which of to the year; was $X.XX guided in to based year; at million for a is to X.X% the finally, million, in XXXX. is previously adjusted has has X.X% been and updated been information, previously million to guidance X% the be to $XX.X to a X.X% for $XXX.X been net revenue, a guided XXXX which restaurants, and J. has to million Finally, for the was for sales. guidance income, X% $XXX to which $XXX.X full X.X%

doesn't are Instructions] questions further like turn Stout the questions. [Operator this it there remarks. closing any at time, for no Gentlemen, conference has registered Lonnie over If like to for to back look one I'd

thank you. Derek,

the now are for approaching We XXXX. holiday season

are creating optimistic we locations and aggressively will generate awareness are respond these history ultimately of previously these is implementing we As heighten drive trial mentioned, indicator, If and time, to are initiatives that guests period in few sales that initiatives. guest this any during to favorably underperforming.

program, Steakhouse we performance River both to at the Today, in be to concept is several service, low quality sales effort as of to most in this expended increasingly in considerable has more have guest and it's been the our extremely XXXX, strengthen same-store continue the off. have restaurants, We the quite which group Stoney guest brunch paying acquiring locations. of satisfied primary Since pleased drivers Grill professional improvement. our sales same-store addition locations. visits and lunch has these and food better with of A base of an been and successful resulting frequent

We Jack's are momentum pleased Holdings. with at our

dine-in consistent this same-store for following sales. fourth you be continue of sustaining with I our morning, committed improving providing communicating of record to guests to again our and to our quarter. joining solid We and all us thank look to a and want you experience forward compelling with we

This concludes today's teleconference.

Thank a disconnect your lines this at may nice your and participation, you You day. have for time.