Company Quick10K Filing
El Pollo Loco
Price15.24 EPS1
Shares35 P/E21
MCap535 P/FCF15
Net Debt89 EBIT38
TEV624 TEV/EBIT16
TTM 2019-12-25, in MM, except price, ratios
10-Q 2020-09-23 Filed 2020-10-30
10-Q 2020-06-24 Filed 2020-07-31
10-Q 2020-03-25 Filed 2020-05-01
10-K 2019-12-25 Filed 2020-03-06
10-Q 2019-09-25 Filed 2019-11-01
10-Q 2019-06-26 Filed 2019-08-02
10-Q 2019-03-27 Filed 2019-05-03
10-K 2018-12-26 Filed 2019-03-08
10-Q 2018-09-26 Filed 2018-11-02
10-Q 2018-06-27 Filed 2018-08-03
10-Q 2018-03-28 Filed 2018-05-07
10-K 2017-12-27 Filed 2018-03-09
10-Q 2017-09-27 Filed 2017-11-03
10-Q 2017-06-28 Filed 2017-08-07
10-Q 2017-03-29 Filed 2017-05-05
10-K 2016-12-28 Filed 2017-03-10
10-Q 2016-09-28 Filed 2016-11-04
10-Q 2016-06-29 Filed 2016-08-05
10-Q 2016-03-30 Filed 2016-05-06
10-K 2015-12-30 Filed 2016-03-11
10-Q 2015-09-30 Filed 2015-11-13
10-Q 2015-07-01 Filed 2015-08-14
10-Q 2015-04-01 Filed 2015-05-15
10-K 2014-12-31 Filed 2015-03-17
S-1 2014-11-10 Public Filing
10-Q 2014-09-24 Filed 2014-11-07
10-Q 2014-06-25 Filed 2014-09-05
S-1 2014-06-24 Public Filing
8-K 2020-10-29 Earnings, Exhibits
8-K 2020-07-30 Earnings, Exhibits
8-K 2020-06-02
8-K 2020-04-30
8-K 2020-04-08
8-K 2020-03-18
8-K 2020-03-05
8-K 2019-10-31
8-K 2019-08-01
8-K 2019-06-04
8-K 2019-05-02
8-K 2019-03-29
8-K 2019-03-07
8-K 2019-01-22
8-K 2018-11-01
8-K 2018-08-31
8-K 2018-08-02
8-K 2018-06-28
8-K 2018-06-05
8-K 2018-05-03
8-K 2018-03-08
8-K 2018-02-15
8-K 2018-01-16
8-K 2018-01-03

LOCO 10Q Quarterly Report

Part I - Financial Information
Item 1. Financial Statements.
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
Item 4. Controls and Procedures.
Part II - Other Information
Item 1. Legal Proceedings.
Item 1A. Risk Factors.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
Item 3. Defaults of Senior Securities.
Item 4. Mine Safety Disclosures.
Item 5. Other Information.
Item 6. Exhibits.
EX-31.1 loco-20200923ex3112d14dd.htm
EX-31.2 loco-20200923ex312ba8948.htm
EX-32.1 loco-20200923ex3215c2f08.htm

El Pollo Loco Earnings 2020-09-23

Balance SheetIncome StatementCash Flow
0.70.60.40.30.10.02013201520182021
Assets, Equity
0.20.10.10.0-0.0-0.12013201520182021
Rev, G Profit, Net Income
0.10.10.0-0.0-0.1-0.12013201520182021
Ops, Inv, Fin

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Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark one)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 23, 2020

or

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to

Commission File Number: 001-36556

EL POLLO LOCO HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

Delaware

20-3563182

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

3535 Harbor Blvd., Suite 100, Costa Mesa, California

92626

(Address of principal executive offices)

(Zip Code)

(714) 599-5000

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.01 per share

LOCO

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes      No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     Yes      No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer

Accelerated Filer

Non-accelerated Filer

Smaller Reporting Company

Emerging Growth Company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes      No

As of October 23, 2020, there were 36,446,736 shares of the issuer’s common stock outstanding.

Table of Contents

Table of Contents

    

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2

Table of Contents

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

EL POLLO LOCO HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(Amounts in thousands, except share data)

    

September 23,

    

December 25,

    

2020

    

2019

Assets

  

Current assets:

  

  

Cash and cash equivalents

$

29,529

$

8,070

Accounts and other receivables, net

 

10,842

 

8,505

Inventories

 

1,937

 

2,009

Prepaid expenses and other current assets

 

2,555

 

5,718

Income tax receivable

 

 

376

Total current assets

 

44,863

 

24,678

Property and equipment owned, net

 

80,545

 

91,778

Property and equipment held under finance lease, net

 

52

 

Property and equipment held under operating leases, net ("ROU asset")

 

180,781

 

192,395

Goodwill

 

248,674

 

248,674

Trademarks

 

61,888

 

61,888

Deferred tax assets

 

3,565

 

3,709

Other assets

 

1,280

 

1,630

Total assets

$

621,648

$

624,752

Liabilities and Stockholders’ Equity

 

  

 

  

Current liabilities:

 

  

 

  

Current portion of obligations under finance leases

$

50

$

34

Current portion of obligations under operating leases

 

19,847

 

16,406

Accounts payable

 

6,238

 

5,627

Accrued salaries and vacation

 

9,929

 

8,618

Accrued insurance

 

10,256

 

9,440

Accrued income taxes payable

 

1,888

 

Accrued interest

 

143

 

302

Current portion of income tax receivable agreement payable

 

5,160

 

4,935

Other accrued expenses and current liabilities

 

16,216

 

28,597

Total current liabilities

 

69,727

 

73,959

Revolver loan

 

83,800

 

97,000

Obligations under finance leases, net of current portion

 

94

 

83

Obligations under operating leases, net of current portion

 

182,753

 

197,492

Deferred taxes

 

1,325

 

1,672

Income tax receivable agreement payable, net of current portion

 

3,101

 

3,301

Other noncurrent liabilities

 

9,772

 

5,679

Total liabilities

 

350,572

 

379,186

Commitments and contingencies

 

  

 

  

Stockholders’ Equity

 

  

 

  

Preferred stock, $0.01 par value, 100,000,000 shares authorized; none issued or outstanding

 

 

Common stock, $0.01 par value, 200,000,000 shares authorized; 36,441,369 and 35,126,582 shares issued and outstanding

 

364

 

351

Additional paid-in-capital

 

338,622

 

330,950

Accumulated deficit

 

(66,969)

 

(85,988)

Accumulated other comprehensive (loss) income

 

(941)

 

253

Total stockholders’ equity

 

271,076

 

245,566

Total liabilities and stockholders’ equity

$

621,648

$

624,752

See notes to condensed consolidated financial statements (unaudited).

3

Table of Contents

EL POLLO LOCO HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(Amounts in thousands, except share data)

    

Thirteen Weeks Ended

    

Thirty-Nine Weeks Ended

    

September 23, 2020

September 25, 2019

September 23, 2020

September 25, 2019

Revenue

 

  

 

  

 

  

 

  

 

Company-operated restaurant revenue

$

97,276

$

99,052

$

277,617

$

296,341

Franchise revenue

 

7,781

 

7,273

 

21,562

 

21,635

Franchise advertising fee revenue

 

5,922

 

5,742

 

16,567

 

16,808

Total revenue

 

110,979

 

112,067

 

315,746

 

334,784

Cost of operations

 

  

 

  

 

  

 

  

Food and paper cost

 

24,922

 

27,512

 

73,357

 

82,550

Labor and related expenses

 

28,756

 

29,292

 

83,208

 

88,140

Occupancy and other operating expenses

 

23,836

 

23,844

 

67,867

 

70,103

Gain on recovery of insurance proceeds, lost profits

(2,000)

(2,000)

Company restaurant expenses

 

75,514

 

80,648

 

222,432

 

240,793

General and administrative expenses

 

9,803

 

9,539

 

29,599

 

30,235

Franchise expenses

 

7,572

 

7,006

 

21,110

 

20,692

Depreciation and amortization

 

4,092

 

4,343

 

12,629

 

13,558

Loss on disposal of assets

 

29

 

35

 

156

 

213

Recovery of securities lawsuits related legal expenses and other insurance claims

 

 

 

(123)

 

(10,000)

Impairment and closed-store reserves

 

1,776

 

367

 

4,615

 

1,241

Loss on disposition of restaurants

 

 

11

 

 

5,062

Total expenses

 

98,786

 

101,949

 

290,418

 

301,794

Income from operations

 

12,193

 

10,118

 

25,328

 

32,990

Interest expense, net

 

770

 

973

 

2,583

 

2,754

Income tax receivable agreement (income) expense

 

(144)

 

(197)

 

26

 

(120)

Income before provision for income taxes

 

11,567

 

9,342

 

22,719

 

30,356

Provision for income taxes

 

1,647

 

2,940

 

3,700

 

8,954

Net income

$

9,920

$

6,402

$

19,019

$

21,402

Net income per share

 

  

 

  

 

  

 

  

Basic

$

0.28

$

0.18

$

0.54

$

0.57

Diluted

$

0.28

$

0.18

$

0.53

$

0.56

Weighted-average shares used in computing net income per share

 

  

 

  

 

  

 

  

Basic

 

35,471,452

 

35,859,502

 

34,989,007

 

37,484,372

Diluted

 

36,064,559

 

36,397,368

 

35,609,320

 

38,173,097

See notes to condensed consolidated financial statements (unaudited).

4

Table of Contents

EL POLLO LOCO HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

(Amounts in thousands)

    

Thirteen Weeks Ended

    

Thirty-Nine Weeks Ended

September 23, 2020

September 25, 2019

September 23, 2020

    

September 25, 2019

Net income

$

9,920

$

6,402

$

19,019

$

21,402

Other comprehensive income (loss)

 

  

 

  

 

 

Changes in derivative instruments

 

  

 

  

 

 

Unrealized net (losses) gains arising during the period from interest rate swap

 

(36)

 

171

 

(1,791)

 

171

Reclassifications of losses (gains) into net income

 

114

 

(29)

 

156

 

(29)

Income tax (expense) benefit

 

(20)

 

(38)

 

441

 

(38)

Other comprehensive income (loss), net of taxes

 

58

 

104

(1,194)

 

104

Comprehensive income

$

9,978

$

6,506

$

17,825

$

21,506

5

Table of Contents

EL POLLO LOCO HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED)

(Amounts in thousands, except share data)

Thirteen Weeks Ended September 23, 2020

    

    

    

    

    

Accumulated

    

  

    

    

    

Additional

    

    

Other

    

Total

Common Stock

Paid-in

Accumulated

Comprehensive

Stockholders’

    

Shares

    

Amount

    

Capital

    

Deficit

    

(Loss) Income

    

Equity

Balance, June 24, 2020

35,854,122

$

359

$

334,088

$

(76,889)

$

(999)

$

256,559

Stock-based compensation

 

 

909

 

 

 

909

Issuance of common stock related to restricted stock

2,798

Issuance of common stock upon exercise of stock options

593,180

6

3,675

3,681

Shares repurchased for employee tax withholdings

(2,925)

(51)

(51)

Forfeiture of common stock related to restricted shares

(5,806)

 

(1)

 

1

 

 

 

Other comprehensive income, net of tax

 

 

 

 

58

 

58

Net income

 

 

 

9,920

 

 

9,920

Balance, September 23, 2020

36,441,369

$

364

$

338,622

$

(66,969)

$

(941)

$

271,076

Thirteen Weeks Ended September 25, 2019

    

    

    

    

    

Accumulated

    

  

    

    

    

Additional

    

    

Other

    

Total

Common Stock

Paid-in

Accumulated

Comprehensive

Stockholders’

    

Shares

    

Amount

    

Capital

    

Deficit

    

Income

    

Equity

Balance, June 26, 2019

37,732,948

$

377

$

358,335

$

(95,888)

$

262,824

Stock-based compensation

 

 

668

 

 

 

668

Shares repurchased for employee tax withholdings

(4,176)

 

 

(46)

 

 

 

(46)

Forfeiture of common stock related to restricted shares

(9,160)

Repurchase of common stock

(2,825,896)

 

(28)

 

(29,910)

 

 

 

(29,938)

Other comprehensive income, net of tax

104

104

Net income

 

 

 

6,402

 

 

6,402

Balance, September 25, 2019

34,893,716

$

349

$

329,047

$

(89,486)

$

104

$

240,014

6

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Thirty-Nine Weeks Ended September 23, 2020

    

    

    

    

    

Accumulated

    

  

    

    

    

Additional

    

    

Other

    

Total

Common Stock

Paid-in

Accumulated

Comprehensive

Stockholders’

    

Shares

    

Amount

    

Capital

    

Deficit

    

Income (Loss)

    

Equity

Balance, December 25, 2019

35,126,582

$

351

$

330,950

$

(85,988)

$

253

$

245,566

Stock-based compensation

 

 

2,170

 

 

 

2,170

Issuance of common stock related to restricted stock

439,061

4

(4)

Issuance of common stock upon exercise of stock options

965,736

10

5,836

5,846

Shares repurchased for employee tax withholdings

(23,118)

(331)

(331)

Forfeiture of common stock related to restricted shares

(66,892)

 

(1)

 

1

 

 

 

Other comprehensive loss, net of tax

 

 

 

 

(1,194)

 

(1,194)

Net income

 

 

 

19,019

 

 

19,019

Balance, September 23, 2020

36,441,369

$

364

$

338,622

$

(66,969)

$

(941)

$

271,076

Thirty-Nine Weeks Ended September 25, 2019

    

    

    

    

    

Accumulated

    

  

    

    

    

Additional

    

    

Other

    

Total

Common Stock

Paid-in

Accumulated

Comprehensive

Stockholders’

    

Shares

    

Amount

    

Capital

    

Deficit

    

Income

    

Equity

Balance, December 26, 2018

39,009,451

$

390

$

375,734

$

(110,888)

$

265,236

Stock-based compensation

 

 

1,797

 

 

 

1,797

Issuance of common stock related to restricted shares

292,211

 

3

 

(3)

 

 

 

Issuance of common stock upon exercise of stock options

6,709

 

 

34

 

 

 

34

Shares repurchased for employee tax withholdings

(29,923)

 

(1)

 

(294)

 

 

 

(295)

Repurchase of common stock

(4,384,732)

 

(43)

 

(48,221)

 

 

 

(48,264)

Other comprehensive income, net of tax

104

104

Net income

 

 

 

21,402

 

 

21,402

Balance, September 25, 2019

34,893,716

$

349

$

329,047

$

(89,486)

$

104

$

240,014

7

Table of Contents

EL POLLO LOCO HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(Amounts in thousands)

    

Thirty-Nine Weeks Ended

    

    

September 23, 2020

September 25, 2019

    

Cash flows from operating activities:

  

  

Net income

$

19,019

$

21,402

Adjustments to reconcile net income to net cash flows provided by operating activities:

 

 

Depreciation and amortization

 

12,629

 

13,558

Bad debt expense

190

Stock-based compensation expense

 

2,170

 

1,797

Income tax receivable agreement expense (income)

 

26

 

(120)

Loss on disposition of restaurants

 

 

5,062

Loss on disposal of assets

 

156

 

213

Impairment of property and equipment

 

3,478

 

283

Amortization of deferred financing costs

 

189

 

189

Amortization of favorable and unfavorable leases, net

 

 

(362)

Deferred income taxes, net

 

(110)

 

8,583

Changes in operating assets and liabilities:

 

 

Accounts and other receivables, net

 

(2,527)

 

(1,257)

Inventories

 

72

 

261

Prepaid expenses and other current assets

 

3,163

 

868

Other assets

 

159

 

(118)

Accounts payable

 

476

 

(1,657)

Accrued salaries and vacation

 

1,311

 

2,259

Accrued insurance

 

816

 

1,863

Income taxes payable

 

2,264

 

102

Other accrued expenses and liabilities

 

(9,962)

 

(21,031)

Net cash flows provided by operating activities

 

33,519

 

31,895

Cash flows from investing activities:

 

Proceeds from disposition of restaurants

 

 

4,770

Purchase of property and equipment

 

(4,349)

 

(10,848)

Net cash flows used in investing activities

 

(4,349)

 

(6,078)

Cash flows from financing activities:

 

  

 

  

Minimum tax withholdings related to net share settlements

 

(331)

 

(341)

Payments on revolver and swingline loan

 

(65,700)

 

(15,000)

Borrowings on revolver and swingline loan

52,500

42,000

Proceeds from issuance of common stock upon exercise of stock options, net of expenses

 

5,846

 

80

Payment of obligations under finance leases

 

(26)

 

(61)

Stock buybacks