RAVE Restaurant (RAVE) 7 Feb 182018 Q2 Earnings call transcript

Good evening and welcome to the RAVE Restaurant Group’s Second Quarter 2018 Financial Results Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there'll be an opportunity to ask questions. Please note that today’s event is being recorded. I would now like to turn the conference over to Tim Mullany, CFO. ahead. go Please

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for results Please evaluating not our financial in discussion and Chief reconciliation Executive in With believe Officer. considered is Crane, results a also forward-looking part statements are useful measures, with our GAAP. would filings accordance be risks begin, for from numerous undue like materially impact A I would that, isolation non-GAAP statements our such not information what that uncertainties should forward-looking like of to as we that our I of discussion financial which certain in our today’s future everyone include that you a discussions we expect. could note conference future more recent performance. Before we discuss or condition. could statements. reliance be SEC over detailed it all and of remind of operating These to of we Scott to cause subject We substitute are measures the guarantees therefore will These results call performance will you differ today GAAP to should actual release. to comparable prepared available to earnings to on that and them. put turn refer Any risks of not

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we this supplies. for supply – management while contracted suppliers also approach franchisees to division us opportunity quarter, discontinued and and our party G&A Norco we efficiency distributors with has transparency During And costs. continue our to third new streamline the and our equipment this last and food, more distribution provided allowing chain of

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increased three $X.X fiscal primarily the million and for by year. Year-to-date, store by the retail Pie prior million Pie XXXX revenue $X.X in units in Five months the compared XXXX consolidated first and in period of system-wide period of same system-wide fiscal month the right, prior million sales three average X.X% prior to compared All retail year. X.X% second periods respectively second XX.X% to decrease comparable store quarter compared periods the periods in million $X.X to XX, XXXX store million XX.X% the retail the first compared XX.X% XX.X% compared the the ended period same fiscal Pizza by the prior Five compared retail domestic sales average most half XX, month Comparable thanks, same retail and the decrease decreased XX.X% the a six for year and year. a respectively sales $X.X Comparable period Pizza X.X% of six December XX.X% $XX.X decreased six Scott. XXXX quarter XX% Inn retail decreased the driven Inn in year. to same to Year-to-date for total for sales decreased fiscal prior decreased to of by the same open. same XXXX. of compared XXXX. to when periods Total to December the to domestic compared of the the ended fiscal sales decreased consolidated decreased the driven open. quarter sales prior units in for primarily to of year, recent during XX.X% the revenues

XXXX, per On fiscal diluted and the the million closed million $X.X to from $X.XX lower million increased same reported basis, periods and EBITDA and prior a to periods share XX, Pie $X.X and ended company-owned million of year-to-date and fully for the of $X.X share expense. flow share underperforming $X.XX to prior month and $X.X decreased of same XXXX lower and Adjusted the $X.X December compared reductions by $X.XX lease XX, three reductions in EBITDA $X.X of to periods quarter $X.X and the negative the to debt operating loss loss improvement million period to owned year. units, respectively. six per assets, the of three Five periods and quarter termination a gains the second December closures lower expenses, $X.X and per impairment for Pie per corporate the compared loss of primarily company of stores, the in respectively for improvements of million positive million sale $X.X For and store Five net respectively year. bad six fiscal XXXX cash compared million a prior share million same to year from during loss Company lower the the XXXX month expenses. improved was due ended adjusted driven expenses, expenses, was G&A a of The $X.XX Company for G&A second

of decreased six the the compared cash Pie prior flow Five period year. $X.X of company-owned For the to the million same months first operating XXXX,

discontinued ended XXXX, fiscal the its December to third food, and and party During company of outsourced equipment Norco distributors quarter the and division distribution XX, functions suppliers such supplies.

no duties. sales with the invoicing associated such As risk associated collection credit food performs bears the or and equipment company the and

section cost in recognized now of sales. and of food, such sale no equipment third the a basis is suppliers Pie locations from and longer better is franchise a supplies cost out P&L net revenues. of received the with result, Inn result filing As transparency revenues Furthermore, added within Franchising within longer party provide included operating our Company items incentive we The to of and to on as quarterly the recognizes within are no presentation and revenue distributors continuing changed along results. operations. Pizza broken detail Franchising Five company-owned financial

have In we mitigated store that distribution, development addition and deemed unfavorable materially to of leases new exists sheet by the liabilities. reducing lower were credit thus associated risk negotiating balance through for outsourcing risk also

net a Finally, as company-owned greater as in strategy cash company-wide completed faster predictability profitability. of of means if are This the successfully as for will refranchising flows allow to process well Scott mentioned, income we units.

statement As deal details includes release unit non-comp our and we explanations. tables financial restaurant our great average performance volumes and a various filings. earnings a comp SEC in line quarterly reminder, in information operating brand-specific of income and This brand-specific item and and disclosed

gaining Form XX-Q earlier with closing, the are we SEC filed traction. was Our In yesterday.

methodical with continuing towards that quarters. within reducing questions. Our a We this strategy for the With operations. for turn it success making model improvements is to continue intend in expenses in our I'll G&A shifting along to coming operator franchisee the performance strategy over

session. concluded. Thank question-and-answer presentation. The attending our conference also for today's now concludes you has This

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