J. Alexander's — Investor Presentation (September 2015)
35 slides from J. Alexander's's investor presentation, Sep 17, 2015
Slide 1: Investor Presentation September 2015
Exhibit 99.2 Investor Presentation September 2015
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
Forward-Looking These (“FNF”) stock Exchange statements transaction, that believe impossible anticipated, expected not restaurant or are on future forward-looking economies Form set intend limited include of period forward-looking forth that J.annual 10. results Act operations; to Alexander’s regard
Slide 3: Senior Management Presenters
Senior Management Presenters Lonnie J. Stout II Chief Executive Officer Mark A. Parkey Chief Financial Officer
Slide 4: Review of the FNFV Spin-Off
ReviewOwned (MM) AIV-A LP. of the FNFV Spin-Off Shareholders Company J.13.1 Alexander’s 87.4% Newport(1) Holdings, 1.6 Inc.10.9% Symbol/Listing Other 0.3 JAX/NYSE 1.7% RecordBasic Date Shares September Outstanding 22, 2015atDistribution DistributionDate 15.0September MM shares28, Post 2015 Distribut
Slide 5: Spin-Off Rationale
Spin-Off Appropriately investment acquisitions and J. Alexander’s Rationale spending and Capitalize enhance Strategic without The equity Management having Business compensation to •compete Allows Focus programs both for • Enables capital FNFVGreater or J.and Alexander’s resources J. Transparency Ale
Slide 6: We are Unchained
We are Unchained To view the video please go to http://investor.jalexandersholdings.com.
Slide 7: Leader in Upscale Casual Dining
Leaderon casual focus significant dining incontinuous Upscale growth concepts Casual potential training with Dining •complementary •Experienced Strong, • Founded consistent, management market in 1991 financial positions withteam 24-year results • Superior track – widerecord dining moat of around exp
Slide 8: What Sets Our Concepts Apart
What Sets service OurUs concepts Apart Our have concepts a commitment are similar to quality in stylefood but with each 95% location of items is unique, madegiving from scratch, them a boutique in-house “unchained” look and feel Our concepts share a focus on highly professional, unparalleled
Slide 9: Our Atmosphere
Our Atmosphere concepts can be successful • Casual elegance in the same • Upscale geography ambiance with contemporary flare • Variety of designs and menus to complement each individual market • Boutique feel for each location • Multiple
Slide 10: Upscale Casual Average Check Comparison
Upscale (1) (1) Includes Experience J. Alexander’s at Polishedand Casual Redlands CheckGrill AVERAGE locations. CHECK Sources: (2014) Company (Actuals) filings $120.0 and Wall $110St. $100.0 Research. $80.0 $76 $62 $60 $60.0 $51 $45 $45 $40.0 $31 $30 $25 $25 $24 $21 $20 $20 $20.0 $0.0
Slide 11: Our Concepts: J. Alexander's
Our Concepts customized Highest Volume Broadly Quality UnitAppealing Sales: Ingredients $8.4M Menu USDA Number Accessible TopofChoice Locations: Winebeef List19 Fresh Wine Lunch seafood Spectator and Dinner, andAward local 7 days of produce Excellence per week Culinary Winner 2014Innovation Average
Slide 12: Our Concepts: Redlands Grill
Our Concepts estate financial featured flexibility items profile •–New expected Items • Began concept notrollout to currently be furthers substantially in Q1 offered multi-concept 2015 by •similar Number J. Alexander’s to strategy of J. Alexander’s locations: –or Greater Stoney 12,once penetration w
Slide 13: Our Concepts: Stoney River
Our Concepts Winner days perPrivate week $100 atDining most Experience locations, STONEYatwith RIVER a $45 a select Average LOCATIONS number CheckofQuality &locations KEY Ingredients, STATS also serving • 2014 Menu Average lunch is not or Unit Sunday A LaVolume: Carte brunch Your $3.4M • 2014 Neighb
Slide 14: Multiple Levers to Drive Growth
Multiple DISCIPLINED acquisitions scale to drive Levers • improved Thoughtfully GROWTH to Drivepurchasing Growth •deploy Find 1great capital MAINTAIN and real other forestate; costs relocations HEALTHY 4 – 5 new andCORE restaurants remodels STORES 3 per LEVERAGE year Growstarting sales INFRASTRUCTUR
Slide 15: Strong Unit Volume Growth
Strong Unit Volume Alexander’s Stoney River Growth AVERAGE UNIT VOLUME (Dollars in Millions) $6.0 $5.6 $5.3 $5.1 $5.0 $4.9 $4.6 $4.5 $4.0 $3.4 $3.3 $3.0 $2.0 $1.0 $0.0 2009 2010 2011 2012 2013 2014 J.
Slide 16: Stoney River Improvement
Stoney – to $62,000 Applying quality River $60,000 standard best Improvement practices 2013 through 2014 inremodeling •both 1H Stoney June front River 2014 of andhouse assets 1H reimaging June and were 2015 back STONEY contributed of houseRIVER operations to J. Alexander’s AVERAGE – Reduced/eliminat
Slide 17: Long History of Same Store Sales Growth
Long 4.8% 5.1% History 5.0% of Same 4.8% Store 4.8% Sales 4.5% Growth 4.9% 4.9% 22 QUARTERS 4.6% 4.7% 4.4% OF SAME 4.0% 3.9% STORE 3.0% SALES 2.8% 2.0% GROWTH 2.0% 1.0% AT J. 0.1% ALEXANDER’S 0.0% 10.0% 9.0% 8.9% 8.0% 7.2% 7.0% 6.2% 6.1% 6.0% 5.8% 5.2% 5.3% 5.0%
Slide 18: Industry-Leading Same Store Growth
Industry 2014 most recent SSSLeading 8.0% quarter 6.0% Same as 5% ofStore May 6% Growth 5% 2015. 4%Sources: 4% MOST 4% RECENT 4.0% Company 3% 2% QUARTER filings 2.0%and 2%Wall SSS(1) 1% St. 0.0% 8.0% Research. -1% 6%-2.0% 6.0%-3% 5% -3% 4% 4% -4.0% 4.0% -5% 3%-6.0% 3% 3% -6% 2.0% -8.0% 1%(1) 1%Most
Slide 19: Strong Store-Level EBITDA Margins
Strong STORE-LEVEL all dataStore-Level for multi-concept EBITDA EBITDAoperators MARGIN Marginsis35.0% consolidated LTM STORE-LEVEL 30% 30.0% across28% all EBITDA concepts. 25.0% 24% MARGIN Source: 20.0%Company 17% 35.0% 17% 30% Filings. 18% 30.0% 18%29% 18%25% 16%25.0% 15.0%20.0% 15% 15% 18% 10.0% 1
Slide 20: Attractive Scale with Significant Room to Grow
Attractive Scale Alexander’s J. Alexander’s with Significant 2016 openings Room to Grow Stoney• 41 River restaurants Stoney River acrossunder 14 states construction • Significant – opening nationwide Q1 2016 opportunity Redlandsgiven Grill demonstrated portability of concepts • Robust real estate pi
Slide 21: Targeted Unit Economics Model
Targeted Volume 24% 18%(Year Unit – 21% Economics 3) $5.9M 21% – $4.4M 24% Model (1)$5.9M J. Excludes ALEXANDER’S Restaurant tenant allowances Operating STONEYMargin and RIVER pre-opening 17.9% REDLANDS 16.5% costs. 17.9% Average Build-out Square Cost(1) Footage $4.5M 6,900– –$5.0M 9,000$3.5M 6,400
Slide 22: Flexible Real Estate Options
Flexible Retail Centers, Real Estate and 16 Options Shopping • AllMalls threeMixed concepts Useare Commercial successful or in aRetail rangeCenters of building 19 Total types41and Structure retail developments Type: Free Standing Development 35 Leasehold/End Type: Lifestyle/ Cap Entertainment 6 Tota
Slide 23: Remodeling and Reimaging Programs
Remodeling required for transition remodels • expected Anticipate and • Ongoing Reimaging to3be –re-branding 4$60,000 major Programs remodels perfor location • Redlands Maintain per–year Target Grill restaurants – Average completion concept atremodel –highest Began by Q4cost quality to2016 transitio
Slide 24: Cultural Focus and Comprehensive Training
Cultural Comprehensive from within Focus • Bench on initial Continuous strength trainingtoTraining program support••substantial Our Dedicated team members growth wine, spirits, INTENSE are experts and bar LEVELS intraining our food, OF• Rigorous SERVICE drink, and investment the art of in hospitalit
Slide 25: Experienced Management Team with a Proven Track Record
Experienced years, with VP Alexander’s ofJ.Stoney 10.6 Alexander’s years Ralph Management River at Carnevale Redlands Jim 21 years Filaroski Team with Grill, Regional with Director J.and Alexander’s a Proven VP 6.1of of years R&D/ J.Track Alexander’s Shannon at Stoney Corporate Record Hall River 23
Slide 26: Black Knight and FNFV Relationships
Black several level unit acquisitions Adjusted have and “Certain growth astrategic Knight strike key EBITDA executive pipeline execution price Relationships Advisory guidance equal each nofficers Doubling generally Services during year—Additionally, to the andand value the Related not of • J. direct
Slide 27: Financial Performance
HOLDINGS, INC. J.ALEXANDER'S: RESTAURANT a STONEY RIVER STRARMOUSE AND GRILL Financial Performance
Slide 28: Historical Financial Performance
Historical River $15.4 $150 $17.7 (2) Adjusted Restaurant $100 RESTAURANT $13.8 6.0% EBITDA Financial $50 $15.8 $15.0 Operating $0 $15.0 $10.5 2009 Reconciliation. Performance OPERATING 2010 $11.7 6.0% Margin 2011 $11.4 $10.0 represents (Dollars 2012 4.0% PROFIT 2013 in $10.0 $5.0 net Millions) 2014
Slide 29: Momentum Continues in 1H 2015
Momentum OPERATING $80.0 $0.0 costs. 1H$60.0 (2)June SeeContinues 5.4% Appendix 2014 PROFIT 4.6% 1H in June (AND $40.0 for 1HAdjusted 2015 2015 SSS MARGIN (1) (Dollars SSSEBITDA Restaurant Growth %)(1) in Millions) Reconciliation. 10.7% $20.0 Operating Growth $20.0 TOTAL Margin $14.9 $0.0 RESTAURANT
Slide 30: Recent Developments
Recent Developments Rollout Raleigh,ofNC Redlands – J. Alexander’s Grill J. Alexander’s concept • Target in Q1 2016 sites 2015 openings under – currently consideration Stoney12River in transition forunder near term construction • New development store –pipeline opening include – Q1 Plan markets 2016
Slide 31: Capitalization Information
Capitalization 6/28/15(2) Information $ and 23.2 (Dollars related $ 23.2infootnotes Net Millions) Debt included / June LTM 2015 Adjusted in the June Company’s EBITDA 2015 Actual 6/28/15(2) Form Pro10 Forma(1) for 0.3x information 0.4x Cash (1)and Pro related Cash Formato Equivalents for pro impact f
Slide 32: Long-term Financial Goals
Long-term Financial GROWTH G&A OPERATING Goals NEWLEVERAGE UNIT GROWTH MAINTAIN OF 10%+ FINANCIAL PER YEAR FLEXIBILITY USE FREE CASH TO FUND FLOWNEW FORUNIT NEWGROWTH UNIT DEVELOPMENT AND POTENTIAL 2 – 4% ACQUISITIONS ANNUAL COMPARABLE STORE SALES
Slide 33: 2015 Guidance
2015the $25.5 20%, with Guidance including million distribution – Same a$ post-spin 26.5 are Store million assumed estimated Sales Net3.5% toIncome(1) beeffective outstanding – 4.5%$5.5 rate Redlands million of for40%, allGrill of –and $fiscal 6.5 Conversions transaction million 2015. Note: FYE rela
Slide 34: Appendix
J.ALEXANDER'S HOLDINGS, INC. J.ALEXANDER'S: RESTAURANT REDLANDS — ora —— STONEY RIVER STRARMOUSE AND GRILL Appendix
Slide 35: Adjusted EBITDA Reconciliation
Adjusted 30, (1) 19,743 183 (2,938) charges fees, costs Company those (8) before and is GAAP, Company’s aAdjusted (138) 2012 useful $1.3 integration (217) lease represent two interest $while — include million 30, 12,007 (328) EBITDA locations. management. 785 metric break —common operating EBITDA 20
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