CINCINNATI, Oct. 22, 2012 /PRNewswire/ -- Frisch's
Restaurants, Inc. (NYSE MKT: FRS) reported a modest decline in
revenue from continuing operations during its 16-week fiscal 2013
first quarter ended September 18,
2012, which is consistent with national trends of declining
customer counts in the family dining segment of the restaurant
industry. Consolidated revenue from continuing
operations declined 1.2 percent to $60,625,296 from $61,361,345 in last year's first quarter.
Net earnings from continuing operations for the quarter
increased 108.3 percent to $957,993
compared to $460,030 last year.
Diluted earnings per share from continuing operations increased
111.1 percent to $0.19 per share,
from $0.09 per share last
year.
As previously reported, the Company disposed of its Golden Corral restaurant operations in
May 2012, which consisted of the
assets of 29 restaurants. In addition, the Company had
previously closed six under-performing Golden Corral restaurants in August 2011, which resulted in a non-cash pretax
asset impairment charge of $4,000,000
that was recorded in the first quarter 2012. The results of
operations of Golden Corral, along
with the above described first quarter 2012 impairment charge, are
presented as discontinued operations in the consolidated financial
statements in the prior year's results.
Same store sales from continuing operations were essentially
flat in the first quarter 2013 while overall sales decreased 1.2
percent as a result of last fiscal year's closures of
underperforming Big Boy restaurants offset in part by new
restaurant openings. Gross profit from continuing operations
increased 12.2 percent in the quarter versus the prior year,
primarily the result of lower food and paper costs as a percentage
of revenues.
At the Corporate level, administrative and advertising expense
decreased 1.9 percent in first quarter 2013 primarily as a result
of a non-recurring stock award in the prior year, which was partly
offset by higher equity compensation and severance costs in the
current year. The effective tax rate increased to 32 percent
in the quarter compared to 23 percent in last year's first quarter
due to changes in tax credits and deferred state taxes.
As previously reported, on July 25,
2012, the Board of Directors declared a special one-time
cash dividend of $9.50 per share
which was paid on September 14, 2012
to shareholders of record on August
31, 2012. The total for the special dividend amounted
to $47,963,000 and accounts for
significant changes in cash balances and shareholders' equity in
the quarter.
Craig F. Maier, President and
Chief Executive Officer, said, "Our first quarter showed mixed
results as lower customer counts adversely affected same store
sales while our food costs as a percentage of sales dropped 80
basis points from the prior year resulting in improved
profitability. The family dining segment of the restaurant
industry continues to struggle with declining customer counts as
the U.S economy continues to languish."
The Company opened one new Big Boy restaurant in August in our
first quarter. Frisch's currently operates 94 company-owned
Big Boy restaurants and there are an additional 25 franchised Big
Boy restaurants operated by licensees.
*************************
Frisch's Restaurants, Inc. is a regional company that
operates full service family-style restaurants under the name
"Frisch's Big Boy." All Big Boy restaurants are
currently located in various regions of Ohio, Kentucky and Indiana.
The company owns the trademark "Frisch's" and has exclusive,
irrevocable ownership of the rights to the "Big Boy" trademark,
trade name and service marks in the states of Kentucky and Indiana, and in most of Ohio and Tennessee. All of the Frisch's
Big Boy restaurants also offer "drive-thru" service. The
company also licenses Big Boy restaurants to other operators,
currently in certain parts of Ohio, Kentucky and Indiana.
The company has reported a profit every year since going public
in 1960, and paid cash dividends to shareholders every quarter over
the same period.
www.frischs.com
Statements contained in this press release which are not
historical facts are forward looking statements as that item is
defined in the Private Securities Litigation Act of 1995. Such
forward looking statements are subject to risks and uncertainties
which could cause actual results to differ materially from
estimated results. Such risks and uncertainties are detailed in the
company's filings with the Securities and Exchange Commission.
Frisch's
Restaurants, Inc. and Subsidiaries
|
CONSOLIDATED STATEMENT OF EARNINGS
(unaudited)
|
(In
thousands, except per share data)
|
|
|
|
|
|
|
|
Sixteen
weeks ended
|
|
|
Sept.
18,
|
|
Sept.
20,
|
|
|
2012
|
|
2011
|
|
|
|
|
|
Sales
|
$
60,625
|
|
$
61,361
|
Cost of
sales
|
|
|
|
|
Food and
paper
|
20,275
|
|
20,838
|
|
Payroll
and related
|
21,452
|
|
21,903
|
|
Other
operating costs
|
13,123
|
|
13,474
|
|
|
54,850
|
|
56,215
|
Gross
profit
|
5,775
|
|
5,146
|
|
Administrative and advertising
|
4,393
|
|
4,480
|
|
Franchise
fees and other revenue
|
(428)
|
|
(389)
|
|
(Gain)
loss on sale of assets
|
11
|
|
-
|
|
Impairment
of long lived assets
|
70
|
|
-
|
Operating
profit
|
1,729
|
|
1,055
|
|
Interest
expense
|
321
|
|
457
|
Earnings
from continuing operations before income taxes
|
1,408
|
|
598
|
Income
taxes
|
450
|
|
138
|
Earnings
from continuing operations
|
958
|
|
460
|
(Loss)
from discontinued operations, net of tax
|
(158)
|
|
(2,734)
|
NET
EARNINGS (LOSS)
|
$
800
|
|
$
(2,274)
|
|
|
|
|
|
Earnings
per share (EPS) of common stock:
|
|
|
|
|
Basic net
earnings per share:
|
|
|
|
|
Earnings
from continuing operations
|
$
0.19
|
|
$
0.09
|
|
(Loss)
from discontinued operations
|
$
(0.03)
|
|
$
(0.55)
|
|
Basic net
earnings (loss) per share
|
$
0.16
|
|
$
(0.46)
|
|
Diluted
net earnings per share:
|
|
|
|
|
Earnings
from continuing operations
|
$
0.19
|
|
$
0.09
|
|
(Loss)
from discontinued operations
|
$
(0.03)
|
|
$
(0.55)
|
|
Diluted
net earnings (loss) per share
|
$
0.16
|
|
$
(0.46)
|
Diluted
average shares outstanding
|
5,017
|
|
4,942
|
Depreciation included above
|
$
3,112
|
|
$
3,112
|
Opening
expense included above
|
$
204
|
|
$
283
|
Frisch's
Restaurants, Inc. and Subsidiaries
|
CONSOLIDATED BALANCE SHEET
|
(In
thousands of dollars)
|
|
|
|
September
18,
|
|
May
29,
|
|
|
|
2012
|
|
2012
|
|
|
|
(unaudited)
|
|
|
Assets
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and
equivalents
|
$
1,174
|
|
$
49,455
|
|
|
Receivables
|
1,404
|
|
1,683
|
|
|
Inventories
|
6,020
|
|
5,590
|
|
|
Other
current assets
|
4,140
|
|
3,010
|
|
|
Current
assets of discontinued operations
|
137
|
|
190
|
|
|
|
12,875
|
|
59,928
|
|
|
|
|
|
|
|
Property
and equipment
|
102,251
|
|
102,139
|
|
|
|
|
|
|
|
Other
assets
|
|
|
|
|
|
Goodwill
& other intangible assets
|
777
|
|
777
|
|
|
Property
held for sale and land investments
|
8,968
|
|
11,484
|
|
|
Deferred
income taxes and other
|
6,447
|
|
5,641
|
|
|
|
16,192
|
|
17,902
|
|
|
|
|
|
|
|
|
|
$
131,318
|
|
$
179,969
|
|
|
|
|
|
|
Liabilities and shareholders' equity
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Accounts
payable
|
$
7,481
|
|
$
6,293
|
|
|
Accrued
expenses
|
7,548
|
|
7,342
|
|
|
Other
|
6,859
|
|
7,857
|
|
|
Current
liabilities of discontinued operations
|
278
|
|
683
|
|
|
|
22,166
|
|
22,175
|
|
|
|
|
|
|
|
Long-term
obligations
|
|
|
|
|
|
Long-term
debt
|
12,707
|
|
14,446
|
|
|
Other
long-term obligations
|
21,871
|
|
21,623
|
|
|
|
34,578
|
|
36,069
|
|
|
|
|
|
|
|
Shareholders' equity
|
74,574
|
|
121,725
|
|
|
|
|
|
|
|
|
|
$
131,318
|
|
$
179,969
|
SOURCE Frisch's Restaurants, Inc.