July 14, 2024

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J. Alexanders Holdings, Inc. Offers Company Update

J. Alexander’s Holdings, Inc. (NYSE: JAX) (the Organization), owner and operator of J. Alexander’s, Redlands Grill, Stoney River Steakhouse and Grill and other restaurants, today supplied a business enterprise update with regard to the influence of the novel coronavirus outbreak (COVID-19).

Enterprise Update

Recently, the Organization has been impacted by a next wave of demanded eating home closures and enhanced ability limits in particular of the markets in which it operates, which include in Illinois, Kentucky, Michigan, Missouri, Pennsylvania, Maryland and Colorado. As of December 14, 2020, a total of 10 of the Company’s 46 locations are closed for indoor dining. In certain of all those destinations wherever economically possible and allowed by the different governing authorities, the Company has taken measures to grow its outside dining locations in buy to accommodate additional guests, retain a portion of its workforce, and present added profits to complement its ongoing carryout organization. The Enterprise also continues to offer you a sturdy carryout menu at all 46 of its spots. In November 2020, product sales averaged just below 80% of income professional in the exact period of time of 2019, reflecting a reduction from September and October’s income recovery of virtually 90% of prior year product sales. In the last 4 weeks considering that the included constraints on indoor dining have amplified, the Company’s product sales on a weekly basis have started to craze downward, ranging amongst roughly 60% and 70% of prior year’s weekly profits, and could proceed to decrease if governmental constraints tighten additional.

In its organization update and earnings push release dated November 5, 2020, the Corporation believed that, excluding the impression of the $10,000,000 voluntary compensation of exceptional borrowings in October 2020, it would be income stream favourable in the selection of $400,000 to $450,000 per week for the fourth quarter of 2020 (which incorporates 14 weeks due to fiscal 2020 staying a 53-week fiscal year). When factoring in the $10,000,000 voluntary repayment of outstanding borrowings, the Corporation earlier approximated that the weekly income melt away fee for the fourth quarter of 2020 would be approximately $265,000 to $315,000. Owing to the new restrictions that the Enterprise is now functioning under, the Enterprise no lengthier believes that these estimates are exact. On the other hand, the Business continues to imagine that, at current organization amounts, it will have suitable liquidity for the stability of fiscal 2020 and fiscal 2021 from money on hand and available borrowings.

Mark A. Parkey, President and Chief Government Officer of J. Alexander’s Holdings, Inc. said, “As we enter the most vital season of the year for our company, we are estimating that about 50% of our seats are accessible for eating home company on a consolidated basis. We go on to navigate the ever-modifying landscape in which we operate, and we are doing the job hard to make certain that we have explored every single alternative and prospect readily available to us to continue on to supply our faithful visitors with the remarkable dining working experience they have appear to be expecting from us above the yrs in a balanced and secure environment. We’re also encouraged by the potent stages of support our carryout method has acquired from our visitor foundation, in particular in latest months exactly where off-premise gross sales have ranged from somewhere around $700,000 to $800,000 on a weekly basis. Our proficient culinary crew has also been challenging at perform coming up with “Holiday Loved ones Packs” and other seasonal offerings that must enable generate reliable off-premise sales in the coming months. Our total workforce has remained steadfast in one typical objective throughout an amazingly turbulent yr – to provide the highest quality food stuff and provider to our company that have ongoing to assistance us in the course of the calendar year in get to arise on the other facet of this pandemic as a much better firm.”

As of December 13, 2020, the Company’s dollars on hand totaled approximately $8.9 million.

About J. Alexander’s Holdings, Inc.

J. Alexander’s Holdings, Inc. is a selection of places to eat that focus on offering large high quality meals, remarkable specialist provider and an attractive ambiance. The Enterprise presently operates 46 restaurants in 16 states. The Organization has its headquarters in Nashville, TN.

For further information, visit www.jalexandersholdings.com

Forward-On the lookout Statements

This push launch issued by J. Alexander’s Holdings, Inc. has forward-searching statements, which include things like all statements that do not relate solely to historic or latest information, such as statements regarding our expectations, intentions or methods concerning the long run, like the impression of the COVID-19 pandemic on our operations, our product sales, off-premise sales, hard cash requires, liquidity, economic outcomes and our means to manage via the COVID-19 pandemic and arise in a strong place. These forward-searching statements are based on management’s beliefs, as effectively as assumptions produced by, and facts presently accessible to, management. Due to the fact this sort of statements are based on expectations as to upcoming money and running final results and other situations and are not statements of truth, real final results may possibly vary materially from people projected and are issue to a selection of recognised and unfamiliar risks and uncertainties, like the health and financial outcomes of the COVID-19 pandemic federal government restrictions on indoor and outdoor eating and the Company’s ability to reopen its dining places for in-man or woman dining at usual capacities, and thereafter to reestablish and keep satisfactory guest rely amounts and maintain or raise profits and running margin in its restaurants underneath various economic disorders the outcome of larger commodity rates, unemployment and other financial components on purchaser demand increases in food stuff input expenses or products shortages and the Company’s reaction to them the Company’s capability to acquire entry to extra money as needed the Company’s skill to comply with economical covenants beneath its financial loan settlement with its loan provider and to obtain available borrowing ability the impact of any impairment of our extended-lived assets, which include tradename the Company’s means to defer lease or agreement payments or normally receive concessions from landlords, distributors and other get-togethers in light of the influence of the COVID-19 pandemic the range and timing of new restaurant openings and the Company’s skill to work them profitably levels of competition in the casual eating sector and in the marketplaces in which our eating places are found adverse climate ailments in areas in which the Company’s places to eat are positioned aspects that are less than the management of 3rd get-togethers, like government organizations the Company’s evaluation of strategic alternate options as properly as other dangers and uncertainties described beneath the headings “Forward-Searching Statements,” “Risk Factors” and other sections of the Company’s Annual Report on Sort 10-K filed with the SEC on March 13, 2020, as amended on April 17, 2020, and subsequent filings, which include beneath the heading “Risk Factors” in its Quarterly Report on Type 10-Q filed with the SEC on November 5, 2020. The Business undertakes no obligation to update any ahead-searching statements, irrespective of whether as a result of new info, long run activities or usually.

Contacts

J. Alexander’s Holdings, Inc.

Jessica Hagler

Chief Monetary Officer

(615) 269-1900