Cracker Barrel Old Country Store, Inc. · NASDAQ:CBRL
Cracker Barrel Old Country Store — CBRL Group — Investor Presentation (October 2007)
24 slides from Cracker Barrel Old Country Store's investor presentation, Oct 3, 2007
Slide 1: Financial Review and Outlook
Financial Review and Outlook Larry White CFO
Slide 2: Strategic Initiatives Review
Strategic Initiatives Review
Slide 3: Strategic Initiatives--Rationale
Strategic Initiatives--Rationale Initiated strategic review fall 2005 - intended to improve company performance and enhance shareholder value CBRL stock trading at discount to peers Favorable debt and equity capital markets CBRL stock valuation not receiving benefit of growth concept (Logan's) Stron
Slide 4: Strategic Initiatives--Components: Senior Secured Credit Facility
Strategic Initiatives--Components $1.175 Billion Senior Secured Credit Facility in May 2006 $250 million Revolver $725 million Term Loan to fund share repurchases $200 million delayed-draw Term Loan to refinance existing convertible debt
Slide 5: Strategic Initiatives--Components: Dutch Auction Tender Offer
Strategic Initiatives--Components $1.175 Billion Senior Secured Credit Facility Dutch Auction Tender Offer to Repurchase Shares Repurchased 16.75 million shares at $42 per share on 5/4/06 Drew approximately $725 million under credit facility for repurchase and related fees and expenses
Slide 6: Strategic Initiatives--Components: Divestiture of Logan's Roadhouse
Strategic Initiatives--Components $1.175 Billion Senior Secured Credit Facility Dutch Auction Tender Offer to Repurchase Shares Divestiture of Logan's Roadhouse, Inc. Sold to private equity investors for total consideration of approximately $485 million
Slide 7: Strategic Initiatives--Components: Repurchase Shares and Reduce Debt
Strategic Initiatives--Components $1.175 Billion Senior Secured Credit Facility Dutch Auction Tender Offer to Repurchase Shares Divestiture of Logan's Roadhouse, Inc. Repurchase Shares and Reduce Debt With Proceeds Reduced Term Loan by $75 million immediately from proceeds and excess cash Completed
Slide 8: Strategic Initiatives--Components: LYONs Exchange Offer
Strategic Initiatives--Components $1.175 Billion Senior Secured Credit Facility Dutch Auction Tender Offer to Repurchase Shares Divestiture Logan's Roadhouse, Inc. Repurchase Shares and Reduce Debt With Proceeds Completed exchange offer for 89% of LYONs maturity value, redeeming 100% of convertible
Slide 9: Strategic Initiatives--Components: Repurchase Shares Issued on Conversion
Strategic Initiatives--Components $1.175 Billion Senior Secured Credit Facility Dutch Auction Tender Offer to Repurchase Shares Divestiture of Logan's Roadhouse, Inc. Repurchase Shares and Reduce Debt With Proceeds Completed Exchange Offer for 89% of LYONs Maturity Value, Redeeming 100% of Convertib
Slide 10: Pro-Forma Strategic Initiatives Impact
PRO-FORMA PRO-FORMA PRO-FORMA Strategic Initiatives Impact Strategic Initiatives Impact Strategic Initiatives Impact Diluted EPS Effect Diluted EPS Effect Diluted EPS Effect % Inc/(Dec) % Inc/(Dec) % Inc/(Dec) Operating Income (15%) (a) Interest Expense (30%) (b) Pre-Tax Income (45%) (c) Average Dil
Slide 11: Historical Financial Review
Historical Financial Review
Slide 12: Annual Store Growth
Annual Store Growth 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Total Units 257 307 357 396 426 437 457 480 504 529 543 562 Annual % Growth 0.2 0.19 0.16 0.11 0.08 0.04 0.05 0.05 0.05 0.05 0.04 0.035 Total Stores Annual % Growth
Slide 13: Restaurant and Retail Comparable Store Sales
Restaurant and Retail Comparable Store Sales FY03 FY04 FY05 FY06 FY07 Restaurant 0.005 0.02 0.031 -0.011 0.007 Retail -0.004 0.053 -0.027 -0.081 0.032
Slide 14: Revenue Growth (Continuing Operations)
Revenue Growth (Continuing Operations) 2003 2004 2005 2006 2007 Total Revenu 1924 2060 2191 2219 2352 Annual Growth 0.051 0.071 0.063 0.013 0.06 Annual % Growth Total Revenue
Slide 15: Operating Income and Margins (Continuing Operations)
Operating Income and Margins (Continuing Operations) 2003 2004 2005 2006 2007 Operating Income 147.006 153.972 168.821 161.796 168.145 % margin 0.076 0.075 0.077 0.073 0.072 % Margin Operating Income *FY 06 and FY 07 include stock option expense (SFAS123R) of $8.5 and $6.3 million, respectively, or
Slide 16: Diluted Earnings Per Share Growth (Continuing Operations)
2003 2004 2005 2006 2007 East 1.73 1.78 2.05 2.07 2.52 West 31.6 North 43.9 Diluted Earnings Per Share Growth (Continuing Operations)
Slide 17: Free Cash Flow (Continuing Operations)
Free Cash Flow* (Continuing Operations) Net cash provided by operating activities Cash Used to Purchase Property and Equipment Cash used for dividends 2003 200.251 2004 162.449 2005 230.361 2006 174.694 2007 96.872 * Non-GAAP financial measure derived from indicated GAAP components found on Statemen
Slide 18: Free Cash Flow (Continuing Operations)
Free Cash Flow* (Continuing Operations) Net cash provided by operating activities Cash Used to Purchase Property and Equipment Cash used for dividends 2003 200.251 90.647 2004 162.449 108.216 2005 230.361 124.624 2006 174.694 89.715 2007 96.872 96.538 * Non-GAAP financial measure derived from indica
Slide 19: Free Cash Flow (Continuing Operations)
Free Cash Flow* (Continuing Operations) Net cash provided by operating activities Cash Used to Purchase Property and Equipment Cash used for dividends 2003 200.251 90.647 1.043 2004 162.449 108.216 16.191 2005 230.361 124.624 22.764 2006 174.694 89.715 24.019 2007 96.872 96.538 15.61 Cash used for d
Slide 20: FY 2008 Outlook (September 18, 2007 Press Release)
FY 2008 Outlook (September 18, 2007 Press Release)
Slide 21: Safe-Harbor Statement
Safe-Harbor Statement CBRL Group, Inc. ("the Company") urges caution in considering current trends and earnings guidance disclosed in this presentation. Except for specific historical information, matters discussed in this presentation are forward-looking statements that involve risks, uncertainties
Slide 22: Full-Year FY Guidance
Full-Year FY 08 Guidance Total Revenue* +4.5 - 5.5% Store Openings 20 Comparable Restaurant Sales +3.0 - 4.0% Comparable Retail Sales +3.0 - 5.0% Operating Margins 6.7 - 7.0% Diluted EPS** $3.05 - $3.20 *Revenue growth above FY 2007 including 53rd week **Assumes FY 07 tax rate pending evaluation of
Slide 23: Long-Term Diluted EPS Growth Objectives
Long-Term Diluted EPS Growth Objectives
Slide 24: Long-Term Annual Diluted EPS Growth Objectives
Components Annual Diluted EPS Growth Impact Average Unit Volume Growth 2-3% New Store Expansion 4-5% Total Revenue Growth 6-8% Operating Margin Expansion 2-4% Operating Income Growth 8-12% Financial Leverage Effect 4-5% Annual Diluted EPS Growth 12-17% Long-Term Annual Diluted EPS Growth Objectives