SONC Sonic Corp. (delisted)

Delaware

0-18859

73-1371046

(State or other jurisdiction of

(Commission File Number)

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

incorporation or organization)

300 Johnny Bench Drive

73104

Oklahoma City, Oklahoma

(Zip Code)

(Address of Principal Executive Offices)

(405) 225-5000

(Registrant’s telephone number, including area code)

[   ]

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))

REGISTRANT:

SONIC CORP.

Date: March 24, 2015

By: /s/ Stephen C. Vaughan

Stephen C. Vaughan,

Executive Vice President and Chief Financial Officer

EXHIBIT INDEX

Exhibit No.

Description

99

Press Release, dated March 24, 2015,  announcing results for the second quarter of fiscal 2015.

Contact:

Claudia San Pedro

Vice President of Investor Relations,

Communications and Treasurer

(405) 225-4846

·

Net income per diluted share was $0.14 compared with net income per diluted share of $0.07 in the prior-year period; excluding items outlined below, net income per diluted share was $0.13 in the second fiscal quarter of 2015, resulting in an 86% increase, on an adjusted basis;

·

System same-store sales increased 11.5%, consisting of an 11.5% same-store sales increase at franchise drive-ins and an increase of 11.2% at company drive-ins;

·

Company drive-in margins improved by 110 basis points; and

·

The company repurchased $75 million of stock through accelerated stock repurchase transactions representing approximately 4% of its outstanding stock.

Three months ended

Three months ended

February 28, 2015

February 28, 2014

Net

Diluted

Net

Diluted

Net Income

Diluted EPS

Income

EPS

Income

EPS

$ Change

% Change

$ Change

% Change

Reported – GAAP

$

$

$

$

$

%

$

%

Retroactive tax benefit of WOTC and resolution of tax matters

 -

 -

Adjusted - Non-GAAP

$

$

$

$

$

%

$

%

Six months ended

Six months ended

February 28, 2015

February 28, 2014

Net

Diluted

Net

Diluted

Net Income

Diluted EPS

Income

EPS

Income

EPS

$ Change

% Change

$ Change

% Change

Reported – GAAP

$

$

$

$

$

%

$

%

Tax benefit from the IRS' acceptance of a federal tax method change

 -

 -

Retroactive tax benefit of WOTC and resolution of tax matters

 -

 -

Adjusted - Non-GAAP

$

$

$

$

$

%

$

%

·

Positive same-store sales in the low to mid-single digit range for the system for the third and fourth fiscal quarters;  

·

Company drive-in same-store sales growth expected to outperform franchisees as a result of the recent implementation of new digital menu boards and point-of-sale systems;

·

Incremental royalty revenue growth from same-store sales improvements, new unit development, and 900 drive-ins converting to a higher royalty rate structure at the beginning of fiscal 2015;   

·

34 to 44 new franchise drive-in openings, resulting in net unit growth for the system;

·

Drive-in-level margin improvement of between 100 to 150 basis points, reflecting an improving outlook for commodity cost inflation and leverage from company drive-in same-store sales growth;

·

Selling, general and administrative expenses of $39.5 million to $40.5 million, reflecting increased investment in human resources to support the brand initiatives described above;

·

Depreciation and amortization expense of $23 million to $23.5 million;

·

Net interest expense of $13 million to $13.5 million; and

·

An income tax rate of between 36%  and 37%, reflecting the benefit of various ongoing tax credit programs.

·

Capital expenditures of $30 million to $40 million;

·

Free cash flow of $70 million to $80 million;

·

The planned repurchase of $105 million of stock; and

·

A quarterly cash dividend of $0.09 per share resulting in an estimated payout of $19 million.

SONIC CORP.

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share amounts)

Three months ended

Six months ended

February 28,

February 28,

2015

2014

2015

2014

Revenues:

Company Drive-In sales

$

$

$

$

Franchise Drive-Ins:

Franchise royalties and fees

Lease revenue

Other

Total revenues

Costs and expenses:

Company Drive-Ins:

Food and packaging

Payroll and other employee benefits

Other operating expenses, exclusive of

depreciation and amortization included below

Total cost of Company Drive-In sales

Selling, general and administrative

Depreciation and amortization

Other operating (income) expense, net

Total costs and expenses

Income from operations

Interest expense

Interest income

Net interest expense

Income before income taxes

Provision for income taxes

Net income

$

$

$

$

Basic income per share

$

$

$

$

Diluted income per share

$

$

$

$

Weighted average basic shares

Weighted average diluted shares

SONIC CORP.

Unaudited Supplemental Information

Three months ended

Six months ended

February 28,

February 28,

2015

2014

2015

2014

Drive-Ins in Operation

Company:

Total at beginning of period

Opened

 -

 -

 -

Acquired from (sold to) franchisees

 -

Closed (net of re-openings)

 -

 -

Total at end of period

Franchise:

Total at beginning of period

Opened

Acquired from (sold to) the company

 -

Closed (net of re-openings)

Total at end of period

System-wide:

Total at beginning of period

Opened

Closed (net of re-openings)

Total at end of period

Three months ended

Six months ended

February 28,

February 28,

2015

2014

2015

2014

($ in thousands)

($ in thousands)

Sales Analysis

Company Drive-Ins:

Total sales

$

$

$

$

Average drive-in sales

Change in same-store sales

%

%

%

%

Franchised Drive-Ins:

Total sales

$

$

$

$

Average drive-in sales

Change in same-store sales

%

%

%

%

System-wide:

Change in total sales

%

%

%

%

Average drive-in sales

$

$

$

$

Change in same-store sales

%

%

%

%

SONIC CORP.

Unaudited Supplemental Information

Three months ended

Six months ended

February 28,

February 28,

2015

2014

2015

2014

(In thousands)

(In thousands)

Revenues

Company Drive-In sales

$

$

$

$

Franchise Drive-Ins:

Franchise royalties

Franchise fees

Lease revenue

Other

Total revenues

$

$

$

$

Three months ended

Six months ended

February 28,

February 28,

2015

2014

2015

2014

Margin Analysis (percentage of Company Drive-In sales)

Company Drive-Ins:

Food and packaging

%

%

%

%

Payroll and employee benefits

Other operating expenses

Cost of Company Drive-In sales

%

%

%

%

February 28,

August 31,

2015

2014

(In thousands)

Selected Balance Sheet Data

Cash and cash equivalents

$

$

Current assets

Property, equipment and capital leases, net

Total assets

$

$

Current liabilities, including capital lease obligations and

long-term debt due within one year

$

$

Obligations under capital leases due after one year

Long-term debt due after one year

Total liabilities

Stockholders' equity (deficit)

$

$