J. Alexander's Corporation Reports First Quarter Operating Results

Pre-tax Income Climbs 7.3%



Apr 20, 2001, 01:00 ET from J. Alexander's Corporation

    NASHVILLE, Tenn., April 20 /PRNewswire Interactive News Release/ --
     J. Alexander's Corporation (Amex:   JAX), owner and operator of 22 J.
 Alexander's restaurants in 11 states, today reported higher pre-tax income for
 the first quarter ending April 1, 2001.
     Lonnie J. Stout II, chairman, president and chief executive officer, said
 pre-tax income rose 7.3% from $701,000 in the first quarter a year ago to
 $752,000 for the period just ended.  Net income for the first quarter of 2001
 reached $417,000, or $.06 per share, as compared to net income of $505,000, or
 $.07 per share, reported in the corresponding period of 2000.  The decrease in
 net income for the first quarter of 2001 was due to the inclusion of an income
 tax provision of $335,000.  In the same period of 2000, the Company's income
 tax provision was $196,000.
     "We are relatively pleased with our results in the first quarter of 2001,"
 Stout said in making the announcement.  "We are encouraged that guest counts
 for the quarter were up slightly.  Same store sales, while still down slightly
 for the quarter due in part to an intentional reduction of check averages in
 certain markets in order to build guest counts, also showed improvement since
 the fourth quarter of 2000."
     Stout said that sales in the Company's mid and small markets remained soft
 throughout most of the first quarter of 2001, while sales in major markets
 continued to show gains.  "We are being much more aggressive in mid and small
 markets," he explained, "offering lower priced and lower food cost items.  We
 are also making modifications in our management systems to achieve maximum
 staffing efficiencies."
     For the most recent quarter, J. Alexander's Corporation reported net sales
 of $23,012,000, up from net sales of $22,208,000 recorded in the comparable
 period of 2000.  Average weekly same store sales per restaurant on a base of
 21 restaurants decreased slightly from $81,300 in the first quarter of 2000 to
 $80,600 in the quarter ended April 1, 2001.  Average weekly sales per
 restaurant also declined slightly from $81,300 in the first period of 2000 to
 $80,500 in the first quarter of 2001.
     Stout said that the Company's development program for 2001 is on schedule
 with two new J. Alexander's restaurants slated for opening.  The first
 restaurant is expected to open in late summer in Boca Raton, Florida, and
 another location is anticipated to open in late fall in Atlanta, Georgia.
     "The sales issues in our mid and small markets are expected to persist
 through the second quarter," Stout observed.  "Because of this softness and
 continued concerns about the impact a slowing economy could have on our
 business as well as an expected higher income tax rate, our bottom line
 performance for the first half of 2001 could be slightly under last year's
 results.  At this point, we still expect that situation to improve in the last
 half of the year."
     J. Alexander's Corporation operates its 22 J. Alexander's restaurants in
 Alabama, Colorado, Florida, Illinois, Kansas, Kentucky, Louisiana, Michigan,
 Ohio, Tennessee and Texas.  J. Alexander's is a contemporary American
 restaurant placing a special emphasis on food quality and professional
 service.  The Company is headquartered in Nashville, Tennessee.
     This press release contains forward-looking statements that involve risks
 and uncertainties.  Actual results, performance or developments could differ
 materially from those expressed or implied by those forward-looking statements
 as a result of known or unknown risks, uncertainties and other factors,
 including those associated with the Company's ability to increase sales and
 profitability in certain of its restaurants, and others described from time-
 to-time in the Company's filings with the Securities and Exchange Commission,
 press releases and other communications.
 
 
     J. Alexander's Corporation and Subsidiaries
     Consolidated Statements of Income
     (Unaudited in thousands, except per share amounts)
 
 
                                                         Quarters Ended
                                                      April 1     April 2
                                                        2001        2000
 
     Net sales                                     $  23,012       $ 22,208
 
     Costs and expenses:
        Cost of sales                                  7,423          6,939
        Restaurant labor and related costs             7,471          7,253
        Depreciation and amortization of restaurant
           property and equipment                      1,049            966
        Other operating expenses                       4,081          3,837
           Total restaurant operating expenses        20,024         18,995
 
     General and administrative expenses               1,854          2,071
     Pre-opening expense                                   2             59
     Operating income                                  1,132          1,083
     Other income (expense):
        Interest expense, net                           (361)          (381)
        Other, net                                       (19)            (1)
           Total other expense                          (380)          (382)
 
     Income before income taxes                          752            701
     Income tax provision                               (335)          (196)
     Net income                                     $    417        $   505
 
     Basic earnings per share                       $    .06        $   .07
 
     Diluted earnings per share                     $    .06        $   .07
 
     Weighted average shares:
       Basic earnings per share                        6,858          6,828
       Diluted earnings per share                      6,863          6,975
 
 
     J. Alexander's Corporation
     Restaurant Operating Results
 
 
                                            Quarters Ended
     All Restaurants             April 1, 2001            April 2, 2000
                              Amount       % of         Amount        % of
                            ($in 000s)     Sales      ($in 000s)     Sales
 
     Net sales              $23,012        100.0%      $22,208        100.0%
 
     Restaurant costs and
      expenses:
 
      Cost of sales           7,423         32.3%        6,939         31.2%
 
     Labor and related costs  7,471         32.5%        7,253         32.7%
 
     Depreciation and
      amortization of restaurant
      property and equipment  1,049          4.6%          966          4.3%
 
     Other operating expenses 4,081         17.7%        3,837         17.3%
 
                             20,024         87.0%       18,995         85.5%
 
     Restaurant operating
      income                 $2,988         13.0%       $3,213         14.5%
 
 
 
                            April 1                    April 2
                              2001                       2000       % Change
     Average weekly sales
      per restaurant:       $80,500                    $81,300         -1.0%
 
     Restaurants open at
      end of period              22                         21
 
 
 
                                            Quarters Ended
     Same Store Results           April 1, 2001           April 2, 2000
                              Amount         % of        Amount       % of
                           ($in 000s)      Sales      ($in 000s)      Sales
 
     Net sales              $21,998         100.0%     $22,208        100.0%
 
     Restaurant costs and
      expenses:
 
       Cost of sales          7,092          32.2%       6,939         31.2%
 
     Labor and related costs  7,114          32.3%       7,253         32.7%
 
     Depreciation and
      amortization of restaurant
       property and equipment   991          4.5%          966          4.3%
 
     Other operating expenses 3,860         17.5%        3,837         17.3%
 
                             19,057         86.6%       18,995         85.5%
 
     Restaurant operating
      income                $ 2,941         13.4%      $ 3,213         14.5%
 
 
                             April 1                    April 2
                               2001                       2000      % Change
     Average weekly sales
      per restaurant:       $80,600                    $81,300         -0.9%
 
     Note: The same store table above includes results for the 21 restaurants
           open for more than twelve months.
 
 
 
 
     J. Alexander's Corporation and Subsidiaries
     Consolidated Condensed Balance Sheets
     (Dollars in thousands)
 
 
                                                  April 1       December 31
                                                     2001           2000
 
               ASSETS
 
     Current Assets
      Cash and cash equivalents                    $   827        $ 1,057
      Other current assets                           1,465          1,445
       Total current assets                          2,292          2,502
 
     Other assets                                      904            836
     Property and equipment, net                    63,325         62,590
     Deferred charges, net                             423            442
                                                   $66,944        $66,370
 
              LIABILITIES AND STOCKHOLDERS' EQUITY
 
     Current liabilities                           $10,184        $10,125
     Long-term obligations                          16,615         16,771
     Other long-term liabilities                     1,685          1,473
     Stockholders' equity                           38,460         38,001
                                                   $66,944        $66,370
 
 
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SOURCE J. Alexander's Corporation
    NASHVILLE, Tenn., April 20 /PRNewswire Interactive News Release/ --
     J. Alexander's Corporation (Amex:   JAX), owner and operator of 22 J.
 Alexander's restaurants in 11 states, today reported higher pre-tax income for
 the first quarter ending April 1, 2001.
     Lonnie J. Stout II, chairman, president and chief executive officer, said
 pre-tax income rose 7.3% from $701,000 in the first quarter a year ago to
 $752,000 for the period just ended.  Net income for the first quarter of 2001
 reached $417,000, or $.06 per share, as compared to net income of $505,000, or
 $.07 per share, reported in the corresponding period of 2000.  The decrease in
 net income for the first quarter of 2001 was due to the inclusion of an income
 tax provision of $335,000.  In the same period of 2000, the Company's income
 tax provision was $196,000.
     "We are relatively pleased with our results in the first quarter of 2001,"
 Stout said in making the announcement.  "We are encouraged that guest counts
 for the quarter were up slightly.  Same store sales, while still down slightly
 for the quarter due in part to an intentional reduction of check averages in
 certain markets in order to build guest counts, also showed improvement since
 the fourth quarter of 2000."
     Stout said that sales in the Company's mid and small markets remained soft
 throughout most of the first quarter of 2001, while sales in major markets
 continued to show gains.  "We are being much more aggressive in mid and small
 markets," he explained, "offering lower priced and lower food cost items.  We
 are also making modifications in our management systems to achieve maximum
 staffing efficiencies."
     For the most recent quarter, J. Alexander's Corporation reported net sales
 of $23,012,000, up from net sales of $22,208,000 recorded in the comparable
 period of 2000.  Average weekly same store sales per restaurant on a base of
 21 restaurants decreased slightly from $81,300 in the first quarter of 2000 to
 $80,600 in the quarter ended April 1, 2001.  Average weekly sales per
 restaurant also declined slightly from $81,300 in the first period of 2000 to
 $80,500 in the first quarter of 2001.
     Stout said that the Company's development program for 2001 is on schedule
 with two new J. Alexander's restaurants slated for opening.  The first
 restaurant is expected to open in late summer in Boca Raton, Florida, and
 another location is anticipated to open in late fall in Atlanta, Georgia.
     "The sales issues in our mid and small markets are expected to persist
 through the second quarter," Stout observed.  "Because of this softness and
 continued concerns about the impact a slowing economy could have on our
 business as well as an expected higher income tax rate, our bottom line
 performance for the first half of 2001 could be slightly under last year's
 results.  At this point, we still expect that situation to improve in the last
 half of the year."
     J. Alexander's Corporation operates its 22 J. Alexander's restaurants in
 Alabama, Colorado, Florida, Illinois, Kansas, Kentucky, Louisiana, Michigan,
 Ohio, Tennessee and Texas.  J. Alexander's is a contemporary American
 restaurant placing a special emphasis on food quality and professional
 service.  The Company is headquartered in Nashville, Tennessee.
     This press release contains forward-looking statements that involve risks
 and uncertainties.  Actual results, performance or developments could differ
 materially from those expressed or implied by those forward-looking statements
 as a result of known or unknown risks, uncertainties and other factors,
 including those associated with the Company's ability to increase sales and
 profitability in certain of its restaurants, and others described from time-
 to-time in the Company's filings with the Securities and Exchange Commission,
 press releases and other communications.
 
 
     J. Alexander's Corporation and Subsidiaries
     Consolidated Statements of Income
     (Unaudited in thousands, except per share amounts)
 
 
                                                         Quarters Ended
                                                      April 1     April 2
                                                        2001        2000
 
     Net sales                                     $  23,012       $ 22,208
 
     Costs and expenses:
        Cost of sales                                  7,423          6,939
        Restaurant labor and related costs             7,471          7,253
        Depreciation and amortization of restaurant
           property and equipment                      1,049            966
        Other operating expenses                       4,081          3,837
           Total restaurant operating expenses        20,024         18,995
 
     General and administrative expenses               1,854          2,071
     Pre-opening expense                                   2             59
     Operating income                                  1,132          1,083
     Other income (expense):
        Interest expense, net                           (361)          (381)
        Other, net                                       (19)            (1)
           Total other expense                          (380)          (382)
 
     Income before income taxes                          752            701
     Income tax provision                               (335)          (196)
     Net income                                     $    417        $   505
 
     Basic earnings per share                       $    .06        $   .07
 
     Diluted earnings per share                     $    .06        $   .07
 
     Weighted average shares:
       Basic earnings per share                        6,858          6,828
       Diluted earnings per share                      6,863          6,975
 
 
     J. Alexander's Corporation
     Restaurant Operating Results
 
 
                                            Quarters Ended
     All Restaurants             April 1, 2001            April 2, 2000
                              Amount       % of         Amount        % of
                            ($in 000s)     Sales      ($in 000s)     Sales
 
     Net sales              $23,012        100.0%      $22,208        100.0%
 
     Restaurant costs and
      expenses:
 
      Cost of sales           7,423         32.3%        6,939         31.2%
 
     Labor and related costs  7,471         32.5%        7,253         32.7%
 
     Depreciation and
      amortization of restaurant
      property and equipment  1,049          4.6%          966          4.3%
 
     Other operating expenses 4,081         17.7%        3,837         17.3%
 
                             20,024         87.0%       18,995         85.5%
 
     Restaurant operating
      income                 $2,988         13.0%       $3,213         14.5%
 
 
 
                            April 1                    April 2
                              2001                       2000       % Change
     Average weekly sales
      per restaurant:       $80,500                    $81,300         -1.0%
 
     Restaurants open at
      end of period              22                         21
 
 
 
                                            Quarters Ended
     Same Store Results           April 1, 2001           April 2, 2000
                              Amount         % of        Amount       % of
                           ($in 000s)      Sales      ($in 000s)      Sales
 
     Net sales              $21,998         100.0%     $22,208        100.0%
 
     Restaurant costs and
      expenses:
 
       Cost of sales          7,092          32.2%       6,939         31.2%
 
     Labor and related costs  7,114          32.3%       7,253         32.7%
 
     Depreciation and
      amortization of restaurant
       property and equipment   991          4.5%          966          4.3%
 
     Other operating expenses 3,860         17.5%        3,837         17.3%
 
                             19,057         86.6%       18,995         85.5%
 
     Restaurant operating
      income                $ 2,941         13.4%      $ 3,213         14.5%
 
 
                             April 1                    April 2
                               2001                       2000      % Change
     Average weekly sales
      per restaurant:       $80,600                    $81,300         -0.9%
 
     Note: The same store table above includes results for the 21 restaurants
           open for more than twelve months.
 
 
 
 
     J. Alexander's Corporation and Subsidiaries
     Consolidated Condensed Balance Sheets
     (Dollars in thousands)
 
 
                                                  April 1       December 31
                                                     2001           2000
 
               ASSETS
 
     Current Assets
      Cash and cash equivalents                    $   827        $ 1,057
      Other current assets                           1,465          1,445
       Total current assets                          2,292          2,502
 
     Other assets                                      904            836
     Property and equipment, net                    63,325         62,590
     Deferred charges, net                             423            442
                                                   $66,944        $66,370
 
              LIABILITIES AND STOCKHOLDERS' EQUITY
 
     Current liabilities                           $10,184        $10,125
     Long-term obligations                          16,615         16,771
     Other long-term liabilities                     1,685          1,473
     Stockholders' equity                           38,460         38,001
                                                   $66,944        $66,370
 
 
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 SOURCE  J. Alexander's Corporation