J Alexanders Holdings Inc (NYSE:JAX) reported that sales volumes for the first three weeks of September averaged 90% of 2019 sales.
The Nashville-based Alexanders, owner and operator of J. Alexander’s, Redlands Grill, Stoney River Steakhouse and Grill and other restaurants, today reported same store sales results as well as certain other preliminary metrics related to its continuing recovery from the impact of the novel coronavirus outbreak.
In conjunction with the earnings release for the second quarter of 2020, the company estimated the weekly cash burn rate for the third quarter of 2020 would be in the range of $325,000 to $375,000 per week and that the fourth quarter would see an improvement from a cash flow perspective, assuming continued sales improvement.
Based on those assumptions, JAX anticipated that it would have adequate liquidity for 2020. The company has continued to see sales improvements beyond the levels originally anticipated, and as a result has updated its original cash flow projections for the third quarter as well as the fourth quarter of 2020.
These estimates, which include the proceeds from the closing of the sale of the Cleveland property on September 10, as well as required debt service payments and capital expenditure commitments.
Said CEO Mark Parkey, "The consistent improvement in our top line sales since all of our dining rooms were allowed to begin reopening in June, combined with the efficiency of those sales as reflected in improved restaurant operating margins over the past few months, lead me to conclude that we are well-positioned to achieve our goal and to do so sooner than we had originally envisioned."
JAX gained 32 cents, or 6.7%, to $5.10.
