Up 6.5% on 6 times avg daily volume.... I'm gonna have to say..... its been challenged a little. That being said.... it will be much lower soon enough.
$40.98.... Good day, ladies and gentlemen, and welcome to the Bob Evans Farms 2017 First Quarter Conference Call. At this time all participants are in a listen-only mode. Later we'll conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, today's conference call is being recorded. I would now like to turn the conference over to Scott Taggart, Vice President of Investor Relations. Please go ahead. Scott Taggart Thank you, Candice, and good morning, everyone. This is Scott Taggart, Vice President of Investor Relations. I would like to welcome you to Bob Evans Farms' fiscal quarter -- first quarter fiscal 2017 conference call. With me this morning are Saed Mohseni, our President and Chief Executive Officer; and Mark Hood, our Chief Administrative and Chief Financial Officer. Our call today begins with a summary of first quarter performance and then Saed will discuss developments within each of our business segments. After that we will open the call for questions. Please note our comments today contain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These forward-looking statements include projections regarding anticipated future results. A number of risks and uncertainties could cause our actual results to differ materially from these forward-looking statements. Our recent filings with the Securities and Exchange Commission include a discussion of these risk factors. We caution investors not to place undue reliance on forward-looking statements, which speak only as of the date of this conference call and we undertake no obligation to update these statements. Also, we will reference non-GAAP financial measures. We have provided a reconciliation of the non-GAAP information to the most directly comparable GAAP financial measures in our earnings release posted on the Investor Relations section of our corporate website at bobevans.com and filed with the Securities and Exchange Commission on Form 8-K. And now, here's Mark Hood with a review of the quarter's results. Mark? Mark Hood Thanks, Scott, and good morning, everyone. We appreciate you joining us for today's update. Earlier this morning, we reported first quarter consolidated GAAP net income of $9.2 million, or $0.46 per diluted share, compared with net income of $4.3 million, or $0.19 per diluted share, in the first quarter of last year. Non-GAAP net income for the quarter was $9.6 million, or $0.48 per diluted share, compared to non-GAAP net income of $11.7 million, or $0.51 per diluted share, in the prior year period. During the quarter, the company incurred cost of approximately $0.5 million that excluded from GAAP results as if this exclusion provides a better understanding of our ongoing results of operations. These items are primarily related to cost arising from restaurant closures, partially offset by a reduction in litigation reserves, resulting from a legal settlement. The first quarter of last year included a $10.5 million charge for the settlement of a legal matter. These items are detailed in the fact sheet accompanying our release. Our cash balance and revolver of borrowings at the end of the first quarter were $4.4 million and $364.6 million respectively, compared to $6.1 million and $491.1 million at the end of the first quarter last year. The $126.5 million decrease in borrowings was primarily the results of the use of proceedings from the fiscal 2016 real estate monetization transactions and operating cash flow to reduce debt, partially offset by share repurchases, capital expenditures and dividend payments. On a pro forma basis, assuming the 2016 sell leaseback transactions occurred at the beginning of fiscal 2016, the company's quarter end leverage ratio would have been 3.24 times. First quarter capital expenditures totaled $19 million, significant investments during the quarter were related to the expansion at BEF Foods, Lima, Ohio, refrigerated side-dish facility, continued implementation of our enterprise resource planning system or ERP, our retail technology platform including POS at Bob Evans Restaurants and Maintenance CapEx at both Bob Evans Restaurants and BEF Foods. We recognized tax expense of 22.4% for the quarter, compared to 24.3% in the corresponding period last year. The decrease in the tax rate was primarily driven by the impact of yearly variances in the forecasted annual rate related to wage credits, the domestic productions activities deduction, and officers' life insurance. For non-GAAP items, the tax rate was 22.6%, reflecting the company's annual non-GAAP estimated tax rate adjusted for the impact of first quarter discrete items. Turning now to Bob Evans Restaurants, first quarter net sales were $220.4 million, a decline of $18.3 million, or 7.7%, compared to net sales of $238.7 million last year. Same-store net sales or same-store sales declined 4.3% with the balance of the net sales decline related to net restaurant closures during the past year. Breakfast continue to outperform lunch and dinner as our best-in-class breakfast initiatives continue to resonate with our guests. Breakfast sales across all dayparts continue to be an important sales driver with 52% of all transactions including a breakfast entrée, a 330 basis point increase over the prior year. Read the rest of this transcript for free on seekingalpha.com
First quarter capital expenditures totaled $19 million, significant investments during the quarter were related to the expansion at BEF Foods, Lima, Ohio, refrigerated side-dish facility, continued implementation of our enterprise resource planning system or ERP, our retail technology platform including POS at Bob Evans Restaurants and Maintenance CapEx at both Bob Evans Restaurants and BEF Foods. Ivy League MBA's at their finest. $37 here we come.
When they move up $0.60 on 10,000 shares ($40 stock), and then fall right back down.... ( picture Jeff Foxworthy).... "It might be a good short".
Did you read the notes on those Form 4's? "1. Each restricted stock unit represents a contingent right to receive one share of Bob Evans Farms, Inc. common stock. The restricted stock units vest one year from the date of the grant. Vested shares will be delivered to the reporting person at the time specified in the plan after the reporting person terminates service with the company. 2. Closing Price of stock on date of grant is $37.88" Meaningless for our purposes. Elliot huh? Perhaps... But lightly filled parking lots on Sunday after church means more.