8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 10, 2021 (February 9, 2021)

J. Alexander’s Holdings, Inc.

(Exact name of registrant as specified in its charter)

Tennessee	001-37473	47-1608715
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

3401 West End Avenue, Suite 260, P.O. Box 24300, Nashville, TN 37202

(Address of Principal Executive Offices) (Zip Code)

(615) 269-1900

(Registrant’s telephone number, including area code)

Not applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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

Title of each class	Trading Symbol	Name of exchange on which registered
Common Stock, par value $0.001 per share	JAX	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

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.  ☐

Item 2.02. Results of Operations and Financial Condition.

On February 9, 2021, J. Alexander’s Holdings, Inc. (the “Company”) issued a press release announcing a business update including information regarding preliminary sales results for the Company and its subsidiaries for months in its fiscal fourth quarter ended January 3, 2021. A copy of the press release is being furnished as Exhibit 99.1.

The information in this Item 2.02 in this Current Report on Form 8-K, including Exhibit 99.1 hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and shall not be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.	Description
99.1	Press Release issued by J. Alexander’s Holdings, Inc., dated February 9, 2021.
104	Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

	J. Alexander’s Holdings, Inc.
Date: February 10, 2021	By:	/s/ Jessica L. Hagler
		Jessica L. Hagler
		Vice President, Chief Financial Officer, Treasurer and Secretary

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

J. ALEXANDER’S HOLDINGS, INC.

PROVIDES BUSINESS UPDATE

NASHVILLE, TN, February 9, 2021 — J. Alexander’s Holdings, Inc. (NYSE: JAX) (the Company), owner and operator of J. Alexander’s, Redlands Grill, Stoney River Steakhouse and Grill and other restaurants, today provided an update on its business and its strategic evaluation.

Business Update

As mentioned in its business update on December 14, 2020, the Company was impacted during its fourth quarter of fiscal 2020 by a second wave of required dining room closures and increased capacity restrictions in certain of the markets in which it operates arising from the novel coronavirus pandemic (COVID-19). As a result of those capacity constraints, the Company experienced downward trends in its sales recovery experience during the fourth quarter of 2020. As previously stated, the Company’s sales were nearly 90% and 80% of prior year sales for the months of October and November 2020, respectively. For December 2020, which consisted of six weeks, sales were slightly higher than 80% of prior year. However, when excluding the additional week in December 2020 the sales replacement figure was approximately 65% .

Although restrictions on indoor dining continue to be fluid in many of the locations in which the Company operates, capacity restrictions began to ease in late December 2020 and January 2021, resulting in more favorable results for the first period of fiscal 2021. In January 2021, sales were just under 75% of 2020’s January sales and nearly 78% of January sales in 2019. Further, management estimates that these metrics would have been approximately two to three percentage points higher for January 2021 but were impacted by the fact that New Year’s Eve week was included in both January of 2020 and 2019 but not in January of 2021. This represents a 10% - 15% improvement over the December sales recovery rate.

As of February 7, 2021, the Company is operating at approximately 60% capacity of available seats across its 46 locations, and anticipates that capacity to increase over the remaining weeks of February as additional restrictions are eased. Additionally, the Company continues to offer a robust carryout menu at each of its locations, with off-premise sales averaging approximately $850,000 weekly in the last month of fiscal 2020.

The Company estimates that, excluding the impact of the $10,000,000 voluntary repayment of outstanding borrowings in October 2020, it generated approximately $370,000 per week in positive cash flow for the fourth quarter of 2020 (which contained 14 weeks due to fiscal 2020 being a 53-week fiscal year). When factoring in the $10,000,000 voluntary repayment of outstanding borrowings, the Company estimates that the weekly cash burn rate for the fourth quarter of 2020 was approximately $344,000. The Company continues to believe that, at current business levels, it will have adequate liquidity for fiscal 2021 from cash on hand and available borrowings.

Mark A. Parkey, President and Chief Executive Officer of J. Alexander’s Holdings, Inc. stated, “We are encouraged by the progress that we’ve seen over the first few weeks of 2021, and we’re excited by the upcoming opening of our first ground-up build of a Redlands Grill restaurant, which is set to open on March 29, 2021 in the La Cantera Heights area of San Antonio, TX.” The Company is also set to open a new J. Alexander’s restaurant in Madison, AL, a suburb of Huntsville, in the fourth quarter of fiscal 2021.

As of February 7, 2021, the Company’s cash on hand totaled approximately $11.5 million. The Company is not providing guidance for fiscal 2021 in light of the ongoing pandemic, current uncertain consumer environment, uncertainty concerning government restrictions on restaurant capacity and current market and economic conditions.

Strategic Alternatives Evaluation

Executive Chairman of the Board of Directors of J. Alexander’s Holdings, Inc., Lonnie J. Stout II, commented, “We are heartened by the strength and resilience of our business and appreciate the efforts of our team members and the loyalty of our guests during these challenging times. Our Board and management team remain committed to completing our previously announced review of strategic alternatives. We will pursue completing that process prudently this year, as our restaurants move toward reopening at full capacity and the results of our business reflect our potential. We believe that this path will allow us to maximize the Company’s full and fair value for our shareholders.”

The Company does not intend to provide periodic updates as to the status of the evaluation process unless or until it determines that further disclosure is appropriate or necessary.

About J. Alexander’s Holdings, Inc.

J. Alexander’s Holdings, Inc. is a collection of restaurants that focus on providing high quality food, outstanding professional service and an attractive ambiance. The Company presently operates 46 restaurants in 16 states. The Company has its headquarters in Nashville, TN.

For additional information, visit www.jalexandersholdings.com

Forward-Looking Statements

This press release issued by J. Alexander’s Holdings, Inc. contains forward-looking statements, which include all statements that do not relate solely to historical or current facts, such as statements regarding our expectations, intentions or strategies regarding the future, including the impact of the COVID-19 pandemic on our operations, reopening restaurants at increased capacity, our sales, off-premise sales, cash needs, liquidity, financial results, our ability to manage through the COVID-19 pandemic and emerge in a strong position and evaluation of strategic alternatives. These forward-looking statements are based on management’s beliefs, as well as assumptions made by, and information currently available to, management. Because such statements are based on expectations as to future financial and operating results and other events and are not statements of fact, actual results may differ materially from those projected and are subject to a number of known and unknown risks and uncertainties, including the health and financial effects of the COVID-19 pandemic; government restrictions on indoor and outdoor dining and the Company’s ability to reopen its restaurants for in-person dining at normal capacities, and thereafter to reestablish and maintain satisfactory guest count levels and maintain or increase sales and operating margin in its restaurants under varying economic conditions; the effect of higher commodity prices, unemployment and other economic factors on consumer demand; increases in food input costs or product shortages and the Company’s response to them; the Company’s ability to obtain access to additional capital as needed; the Company’s ability to comply with financial covenants under its loan agreement with its lender and to access available borrowing capacity; the impact of any impairment of our long-lived assets, including tradename; the Company’s ability to defer lease or contract payments or otherwise obtain concessions from landlords, vendors and other parties in light of the impact of the COVID-19 pandemic; the number and timing of new restaurant openings and the Company’s ability to operate them profitably; competition within the casual dining industry and within the markets in which our restaurants are located; adverse weather conditions in regions in which the Company’s restaurants are located; factors that are under the control of third parties, including government agencies; completion of our financial statement audit and confirmation of preliminary sales results; changes in laws, including possible changes in the federal minimum wage rates; the Company’s evaluation of strategic alternatives; as well as other risks and uncertainties described under the headings “Forward-Looking Statements,” “Risk Factors” and other sections of the Company’s Annual Report on Form 10-K filed with the SEC on March 13, 2020, as amended on April 17, 2020, and subsequent filings, including under the heading “Risk Factors” in its Quarterly Report on Form 10-Q filed with the SEC on November 5, 2020. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

Contacts

J. Alexander’s Holdings, Inc.

Jessica Hagler

Chief Financial Officer

(615) 269-1900

XML

Document and Entity Information	Feb. 09, 2021
Cover [Abstract]
Entity Registrant Name	J. Alexander's Holdings, Inc.
Amendment Flag	false
Entity Central Index Key	0001617227
Document Type	8-K
Document Period End Date	Feb. 09, 2021
Entity Incorporation State Country Code	TN
Entity File Number	001-37473
Entity Tax Identification Number	47-1608715
Entity Address, Address Line One	3401 West End Avenue
Entity Address, Address Line Two	Suite 260
Entity Address, Address Line Three	P.O. Box 24300
Entity Address, City or Town	Nashville
Entity Address, State or Province	TN
Entity Address, Postal Zip Code	37202
City Area Code	(615)
Local Phone Number	269-1900
Written Communications	false
Soliciting Material	false
Pre Commencement Tender Offer	false
Pre Commencement Issuer Tender Offer	false
Security 12b Title	Common Stock, par value $0.001 per share
Trading Symbol	JAX
Security Exchange Name	NYSE
Entity Emerging Growth Company	false