Attached files
| file | filename |
|---|---|
| EX-99.1 CHARTER - RAVE RESTAURANT GROUP, INC. | rave10qpress3.htm |
| 8-K/A - RAVE RESTAURANT GROUP, INC. | rave8k.htm |
| RAVE RESTAURANT GROUP, INC. | |||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||
| (In thousands, except per share amounts) | |||||||||||
| (Unaudited) | |||||||||||
| Three Months Ended | |||||||||||
| September 23, | September 24, | ||||||||||
| 2018 | 2017 | ||||||||||
| REVENUES: | $ | 2,991 | $ | 5,433 | |||||||
| COSTS AND EXPENSES: | |||||||||||
| Cost of sales | 159 | 2,086 | |||||||||
| General and administrative expenses | 1,414 | 2,055 | |||||||||
| Franchise expenses | 1,061 | 640 | |||||||||
| Pre-opening expenses | — | 115 | |||||||||
| Loss/(Gain) on sale of assets | (4 | ) | 2 | ||||||||
| Impairment of long-lived assets and other lease charges | 15 | 148 | |||||||||
| Bad debt | 24 | 124 | |||||||||
| Interest expense | 25 | 68 | |||||||||
| Depreciation and amortization expense | 139 | 314 | |||||||||
| Total costs and expenses | 2,833 | 5,552 | |||||||||
| INCOME/(LOSS) FROM CONTINUING OPERATIONS BEFORE TAXES | 158 | (119 | ) | ||||||||
| Income tax expense | 50 | 12 | |||||||||
| INCOME/(LOSS) FROM CONTINUING OPERATIONS | 108 | (131 | ) | ||||||||
| Loss from discontinued operations, net of taxes | — | (225 | ) | ||||||||
| NET INCOME / (LOSS) | $ | 108 | $ | (356 | ) | ||||||
| INCOME / (LOSS) PER SHARE OF COMMON STOCK - BASIC: | |||||||||||
| Income / (loss) from continuing operations | $ | 0.01 | $ | (0.01 | ) | ||||||
| Loss from discontinued operations | — | (0.02 | ) | ||||||||
| Net income / (loss) | $ | 0.01 | $ | (0.03 | ) | ||||||
| INCOME / (LOSS) PER SHARE OF COMMON STOCK - DILUTED: | |||||||||||
| Income / (loss) from continuing operations | $ | 0.01 | $ | (0.01 | ) | ||||||
| Loss from discontinued operations | — | (0.02 | ) | ||||||||
| Net income / (loss) | $ | 0.01 | $ | (0.03 | ) | ||||||
| Weighted average common shares outstanding - basic | 15,064 | 11,159 | |||||||||
| Weighted average common and | |||||||||||
| potential dilutive common shares outstanding | 15,897 | 11,159 | |||||||||
1
| RAVE RESTAURANT GROUP, INC. | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| (In thousands, except share amounts) | ||||||||
| September 23, | June 24, | |||||||
| 2018 (Unaudited) | 2018 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash and cash equivalents | $ | 2,006 | $ | 1,386 | ||||
| Accounts receivable, less allowance for bad debts | ||||||||
| of $179 and $158, respectively | 1,357 | 1,518 | ||||||
| Other receivable | — | 300 | ||||||
| Notes receivable | 939 | 712 | ||||||
| Inventories | 6 | 6 | ||||||
| Income tax receivable | 4 | 5 | ||||||
| Property held for sale | 467 | 539 | ||||||
| Deferred contract charges | 15 | — | ||||||
| Prepaid expenses and other | 351 | 273 | ||||||
| Total current assets | 5,145 | 4,739 | ||||||
| LONG-TERM ASSETS | ||||||||
| Property, plant and equipment, net | 1,391 | 1,510 | ||||||
| Intangible assets definite-lived, net | 202 | 212 | ||||||
| Long-term notes receivable | 791 | 803 | ||||||
| Deferred tax asset, net | 3,462 | 3,479 | ||||||
| Long-term deferred contract charges | 221 | — | ||||||
| Deposits and other | 243 | 243 | ||||||
| Total assets | $ | 11,455 | $ | 10,986 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Accounts payable - trade | $ | 797 | $ | 774 | ||||
| Accrued expenses | 836 | 1,109 | ||||||
| Deferred rent | 34 | 32 | ||||||
| Deferred revenues | 428 | 65 | ||||||
| Total current liabilities | 2,095 | 1,980 | ||||||
| LONG-TERM LIABILITIES | ||||||||
| Convertible notes | 1,567 | 1,562 | ||||||
| Deferred rent, net of current portion | 424 | 433 | ||||||
| Deferred revenues, net of current portion | 2,399 | 670 | ||||||
| Other long-term liabilities | 48 | 42 | ||||||
| Total liabilities | 6,533 | 4,687 | ||||||
| SHAREHOLDERS' EQUITY | ||||||||
| Common stock, $.01 par value; authorized 26,000,000 | ||||||||
| shares; issued 22,190,515 and 22,166,674 shares, respectively; | ||||||||
| outstanding 15,071,311 and 15,047,470 shares, respectively | 222 | 222 | ||||||
| Additional paid-in capital | 33,343 | 33,206 | ||||||
| Accumulated deficit | (4,007 | ) | (2,493 | ) | ||||
| Treasury stock at cost | ||||||||
| Shares in treasury: 7,119,204 | (24,636 | ) | (24,636 | ) | ||||
| Total shareholders' equity | 4,922 | 6,299 | ||||||
| Total liabilities and shareholders' equity | $ | 11,455 | $ | 10,986 | ||||
2
| RAVE RESTAURANT GROUP, INC. | ||||||||
| ADJUSTED EBITDA | ||||||||
| (In thousands) | ||||||||
| Three Months Ended | ||||||||
| September 23, | September 24, | |||||||
| 2018 | 2017 | |||||||
| Net income (loss) | $ | 108 | $ | (356 | ) | |||
| Interest expense | 25 | 68 | ||||||
| Income taxes | 50 | 12 | ||||||
| Depreciation and amortization | 139 | 314 | ||||||
| EBITDA | $ | 322 | $ | 38 | ||||
| Stock compensation expense | 101 | 10 | ||||||
| Pre-opening costs | — | 115 | ||||||
| (Gain)/Loss on sale/disposal of assets | (4 | ) | 2 | |||||
| Impairment of long-lived assets and other lease charges | 15 | 148 | ||||||
| Discontinued operations, excluding taxes | — | 227 | ||||||
| Closed and non-operating store costs | 22 | 136 | ||||||
| Adjusted EBITDA | $ | 456 | $ | 676 | ||||
3
| RAVE RESTAURANT GROUP, INC. | |||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
| (In thousands) | |||||||||||
| (Unaudited) | |||||||||||
| Three Months Ended | |||||||||||
| September 23, | September 24, | ||||||||||
| 2018 | 2017 | ||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
| Net income/(loss) | $ | 108 | $ | (356 | ) | ||||||
| Adjustments to reconcile net inome/(loss) to cash | |||||||||||
| provided by (used in) operating activities: | |||||||||||
| Impairment of fixed assets and other assets | — | 148 | |||||||||
| Stock compensation expense | 101 | 10 | |||||||||
| Depreciation and amortization | 129 | 304 | |||||||||
| Amortization of intangible assets definite-lived | 10 | 10 | |||||||||
| Amortization of debt issue costs | 5 | 11 | |||||||||
| Gain/loss on the sale of assets | (4 | ) | 2 | ||||||||
| Provision for bad debt | 24 | 124 | |||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Accounts receivable | 296 | 529 | |||||||||
| Inventories | — | (12 | ) | ||||||||
| Prepaid expenses, deposits and other, net | (79 | ) | (194 | ) | |||||||
| Deferred revenue | 234 | (534 | ) | ||||||||
| Accounts payable - trade | 23 | (907 | ) | ||||||||
| Deferred tax assets | 17 | — | |||||||||
| Accrued expenses, deferred rent and other | (274 | ) | (183 | ) | |||||||
| Cash provided by (used in) operating activities | 590 | (1,048 | ) | ||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
| Proceeds from sale of assets | 4 | — | |||||||||
| Purchase of intangible assets definite-lived | — | (7 | ) | ||||||||
| Capital expenditures | (10 | ) | (363 | ) | |||||||
| Cash used in investing activities | (6 | ) | (370 | ) | |||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
| Proceeds from sale of stock | 36 | 4,943 | |||||||||
| Cash provided by financing activities | 36 | 4,943 | |||||||||
| Net increase in cash and cash equivalents | 620 | 3,525 | |||||||||
| Cash and cash equivalents, beginning of period | 1,386 | 451 | |||||||||
| Cash and cash equivalents, end of period | $ | 2,006 | $ | 3,976 | |||||||
| SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | |||||||||||
| CASH PAID FOR: | |||||||||||
| Interest | $ | 2 | $ | — | |||||||
| Income taxes | $ | 4 | $ | — | |||||||
| Non-cash activities: | |||||||||||
| Capital expenditures included in accounts payable | $ | — | $ | 164 | |||||||
| Conversion of notes to equity | $ | — | $ | — | |||||||