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J. Alexander’s Corporation – JAX – Pleased with the performance of restaurants despite spike in beef price

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J. Alexander’s Corporation (NASDAQ: JAX) reported operating results for the fourth quarter and fiscal year ended January 1, 2012. At the same time, the Company said it expects the first quarter of its new fiscal year to reflect substantial gains in net sales and net income.

A summary of the fourth quarter of 2011 compared to the fourth quarter of 2010 follows:

  • Net sales increased 5.5% to $40,918,000 from $38,793,000.
  • Average weekly same store sales per restaurant increased by 5.4% on a quarter–‐to–‐ quarter basis.
  • Income before income taxes was $655,000 compared to $732,000 in the 2010 fourth quarter. However, the 2011 results included a charge to general and administrative expenses of approximately $800,000 related to the defense and settlement, which is subject to court approval, of previously disclosed litigation with respect to alleged tip share pool violations.
  • Net income was $344,000, or $.06 per diluted share, compared to net income of $495,000, or $.08 per share, in the fourth quarter of 2010. The impact of the litigation related expenses noted above on net income for the fourth quarter of 2011 was approximately $780,000, or $.13 per diluted share.

A summary of the 2011 fiscal year compared to the 2010 fiscal year follows:


  • Net sales increased 5.5% to $157,175,000 from $149,018,000.
  • Average weekly same store sales per restaurant increased by 5.5% on a fiscal year basis.
  • Income before income taxes was $1,147,000 compared to income before income taxes of $444,000 in 2010.
  • Net income was $857,000 compared to a net income of $2,796,000 in 2010, and the earnings per diluted share were $.14 compared to earnings per diluted share of $.47 in 2010. An income tax benefit of $2,352,000 was recorded in 2010, while income tax expense of $290,000 was recorded in 2011.

Fourth Quarter Fiscal 2011 Results

Commenting on the fourth quarter of fiscal 2011, Lonnie J. Stout II, Chairman, President and CEO, said, “I am pleased with the performance of our restaurants, especially in light of an unexpected spike in beef prices. The period ended January 1, 2012 marked the ninth consecutive quarter of higher same store sales, and has provided us with considerable momentum heading into fiscal 2012. “

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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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