Cracker Barrel 2008 Annual Report Download - page 78

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76
are vested 100% on the participant’s fifth anniversary
of employment. In 2008, 2007, and 2006, the Company
contributed approximately $1,801, $1,552 and $1,244,
respectively, under Plan I and approximately $356, $323
and $353, respectively, under Plan II, for continuing
operations. At the inception of Plan II, the Company
established a Rabbi Trust to fund Plan II obligations. The
market value of the trust assets for Plan II of $27,033 is
included in other assets and the liability to Plan II
participants of $27,033 is included in other long-term
obligations. Company contributions under Plan I and
Plan II related to continuing operations are recorded as
either labor and other related expenses or general and
administrative expenses.
16 SALE-LEASEBACK
On July 31, 2000, Cracker Barrel completed a sale-leaseback
transaction involving 65 of its owned units. Under the
transaction, the land, buildings and building improvements
at the locations were sold for net consideration of
$138,325 and were leased back for an initial term of 21
years. Equipment was not included. The leases include
specified renewal options for up to 20 additional years and
have certain financial covenants related to fixed charge
coverage for the leased units. At August 1, 2008 and
August 3, 2007, the Company was in compliance with all
those covenants. Net rent expense during the initial term is
$14,963 annually, and the assets sold and leased back
previously had depreciation expense of approximately
$2,707 annually. The gain on the sale is being amortized
over the initial lease term of 21 years.
17 QUARTERLY FINANCIAL DATA (UNAUDITED)(a)
Quarterly financial data for 2008 and 2007 are summarized
as follows:
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter (c)
2008
Total revenue $581,165 $634,453 $567,138 $601,765
Gross profit 400,937 410,718 386,550 412,559
Income before
income taxes 21,170 31,095 13,527 27,723
Income from continuing
operations 13,983 20,234 10,479 20,607
Loss (income) from
discontinued operations,
net of tax (94) (17) (35) 396
Net income 13,889 20,217 10,444 21,003
Income from continuing
operations per share
–basic $ 0.59 $ 0.87 $ 0.47 $ 0.93
Loss (income) from
discontinued operations,
net of tax, per share
–basic $ — $ — $ — $ 0.02
Net income per share
–basic $ 0.59 $ 0.87 $ 0.47 $ 0.95
Income from continuing
operations per share
–diluted $ 0.57 $ 0.85 $ 0.46 $ 0.91
Loss (income) from
discontinued operations,
net of tax, per share
–diluted $ — $ — $ — $ 0.02
Net income per share
–diluted $ 0.57 $ 0.85 $ 0.46 $ 0.93
2007
Total revenue $558,263 $612,134 $549,050 $632,129
Gross profit 385,407 401,782 381,122 438,990
Income before income
taxes 23,672 31,482 18,461 42,866
Income from continuing
operations 15,162 20,501 12,111 28,209
Income (loss) from
discontinued operations,
net of tax 4,265 82,011 214 (408)
Net income 19,427 102,512 12,325 27,801
Income from continuing
perations per share
–basic $ 0.49 $ 0.66 $ 0.48 $ 1.18
Income (loss) from
discontinued operations,
net of tax, per share
–basic $ 0.14 $ 2.66 $ 0.01 $ (0.02)
Net income per share
–basic $ 0.63 $ 3.32 $ 0.49 $ 1.16
Income from continuing
operations per share
–diluted(b) $ 0.45 $ 0.60 $ 0.44 $ 1.15
Income (loss) from
discontinued operations,
net of tax, per share
–diluted $ 0.12 $ 2.28 $ 0.01 $ (0.02)
Net income per share
–diluted $ 0.57 $ 2.88 $ 0.45 $ 1.13
(a) Due to the divestiture of Logan’s in 2007, Logan’s is presented as
discontinued operations for all periods presented (see Note 3).
(b) Diluted income from continuing operations per share reflects, among
other things, the potential dilution effects of the Company’s Senior
Notes and New Notes (as discussed in Notes 2, 6 and 8) for all
quarters presented for 2007.
(c) The Company’s fourth quarter of 2007 consisted of 14 weeks.