CINCINNATI, Aug. 5, 2014 /PRNewswire/ -- Frisch's
Restaurants, Inc. (NYSE MKT: FRS) reported revenue from continuing
operations of $209,173,000 for
the fiscal year ended June 3, 2014
(53 weeks), representing a $5,461,000
or 2.7 percent increase over the prior fiscal year (52
weeks). The additional week in fiscal 2014 contributed
$3,963,000 to the revenue increase,
which yielded an estimated $737,000
in pretax earnings. Earnings from continuing operations for
the year increased $2,459,000 or 35.3
percent to $9,433,000 ($1.85 diluted earnings per share) compared to
$6,974,000 ($1.38 diluted earnings per share) last year. Net
earnings for fiscal year 2014 also received the benefit of a much
lower effective tax rate, which resulted from certain tax planning
strategies.
For the fourth quarter of fiscal 2014 (13 weeks), revenue from
continuing operations increased $4,767,000 or 9.8 percent to $53,559,000 versus $48,792,000 the prior year (12 weeks), mostly due
the effect of the 13th week. Earnings from continuing
operations increased $1,304,706 or
57.5 percent in the 13 week fourth quarter to $3,573,000 ($0.70
diluted earnings per share) compared to $2,268,000 ($0.45
diluted earnings per share) in the prior year 12 week
quarter. The increase is attributable to the extra week of
operations in fiscal 2014 along with the effect of additional tax
benefits recorded in the fourth quarter which are associated with
several tax planning strategies. Disregarding the impact of
the 53rd week in fiscal 2014, same store sales from
continuing operations were up 0.7 percent in the fourth quarter
fiscal 2014 while overall sales increased 1.6 percent as a result
of new restaurant openings. The margin from restaurant
operating income from continuing operations in the fourth quarter
declined marginally on higher payroll and health care costs while
administrative and advertising expense increased due to lower
returns on non-qualified pension assets in comparison to the prior
year.
Craig F. Maier, President and
Chief Executive Officer, said, "We wrapped up 2014 on a strong note
and expect to continue to generate solid profits and cash flow as
we move into our new fiscal year."
Frisch's Restaurants, Inc. is a regional company that
operates full service family-style restaurants under the name
"Frisch's Big Boy." All Frisch's 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 Frisch's Big Boy restaurants to other
operators, currently in certain parts of Ohio, Kentucky and Indiana.
During the fiscal year ended June 3,
2014, the Company opened one new Frisch's Big Boy
restaurant, in December 2013, in
Lexington, Kentucky. At this time,
the Company has not scheduled any new restaurant
construction. A Frisch's Big Boy restaurant located in
Columbus, Ohio was closed
permanently in July 2014. The Company currently operates 95
company-owned Frisch's Big Boy restaurants and there are an
additional 25 franchised Frisch's Big Boy restaurants that are
operated by licensees. Construction of a franchised Frisch's
Big Boy restaurant is nearing completion in Ironton, Ohio. Its scheduled opening
date is August 11, 2014.
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.
Statements contained in this news 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.
www.frischs.com
Frisch's Restaurants,
Inc. and Subsidiaries
|
CONDENSED
CONSOLIDATED STATEMENT OF EARNINGS
|
(In thousands, except
per share data)
|
|
|
|
|
|
|
(unaudited)
|
|
|
Year ended
|
|
Quarter
ended
|
|
|
June 3,
|
|
May 28,
|
|
June 3,
|
|
May 28,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
Sales
|
$209,173
|
|
$203,712
|
|
$53,559
|
|
$48,792
|
Cost of
sales
|
|
|
|
|
|
|
|
|
Food and
paper
|
70,088
|
|
68,268
|
|
18,222
|
|
16,410
|
|
Payroll and
related
|
74,236
|
|
71,523
|
|
18,837
|
|
17,156
|
|
Other operating
costs
|
42,973
|
|
41,368
|
|
10,228
|
|
9,406
|
|
|
187,297
|
|
181,159
|
|
47,287
|
|
42,972
|
Restaurant operating
income
|
21,876
|
|
22,553
|
|
6,272
|
|
5,820
|
|
Administrative and
advertising
|
12,599
|
|
13,074
|
|
3,155
|
|
2,966
|
|
Other
(revenue)
|
(1,439)
|
|
(1,376)
|
|
(363)
|
|
(320)
|
|
(Gain) loss on sale
of real property
|
(135)
|
|
14
|
|
(68)
|
|
1
|
|
Impairment of long
lived assets
|
-
|
|
390
|
|
-
|
|
320
|
Operating
income
|
10,851
|
|
10,451
|
|
3,548
|
|
2,853
|
|
Interest
expense
|
586
|
|
964
|
|
115
|
|
205
|
Earnings from
continuing operations before income taxes
|
10,265
|
|
9,487
|
|
3,433
|
|
2,648
|
Income taxes
(benefit)
|
832
|
|
2,513
|
|
(140)
|
|
380
|
Earnings from
continuing operations
|
9,433
|
|
6,974
|
|
3,573
|
|
2,268
|
(Loss) from
discontinued operations, net of tax
|
-
|
|
(158)
|
|
-
|
|
-
|
NET
EARNINGS
|
$
|
9,433
|
|
$
|
6,816
|
|
$
|
3,573
|
|
$
|
2,268
|
|
|
|
|
|
|
|
|
|
Earnings per share
(EPS) of common stock:
|
|
|
|
|
|
|
|
|
Basic net earnings
per share:
|
|
|
|
|
|
|
|
|
Earnings from
continuing operations
|
$
|
1.85
|
|
$
|
1.39
|
|
$
|
0.70
|
|
$
|
0.45
|
|
(Loss) from
discontinued operations
|
$
|
-
|
|
$
|
(0.03)
|
|
$
|
-
|
|
$
|
-
|
|
Basic net earnings
per share
|
$
|
1.85
|
|
$
|
1.36
|
|
$
|
0.70
|
|
$
|
0.45
|
|
Diluted net earnings
per share:
|
|
|
|
|
|
|
|
|
Earnings from
continuing operations
|
$
|
1.85
|
|
$
|
1.38
|
|
$
|
0.70
|
|
$
|
0.45
|
|
(Loss) from
discontinued operations
|
$
|
-
|
|
$
|
(0.03)
|
|
$
|
-
|
|
$
|
-
|
|
Diluted net earnings
per share
|
$
|
1.85
|
|
$
|
1.35
|
|
$
|
0.70
|
|
$
|
0.45
|
Diluted average
shares outstanding
|
5,101
|
|
5,045
|
|
5,113
|
|
5,070
|
Depreciation included
in continuing operations
|
$
|
10,721
|
|
$
|
10,388
|
|
$
|
2,561
|
|
$
|
2,452
|
Opening expense
included in continuing operations
|
$
|
307
|
|
$
|
592
|
|
$
|
-
|
|
$
|
132
|
Frisch's Restaurants,
Inc. and Subsidiaries
|
CONDENSED
CONSOLIDATED BALANCE SHEET
|
(In thousands of
dollars)
|
|
|
|
June 3,
|
|
May 28,
|
|
|
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and
equivalents
|
$ 2,038
|
|
$ 4,256
|
|
|
|
Trade and other
receivables
|
1,900
|
|
1,297
|
|
|
|
Inventories
|
5,637
|
|
5,765
|
|
|
|
Other current
assets
|
4,047
|
|
3,103
|
|
|
|
|
13,622
|
|
14,421
|
|
|
|
|
|
|
|
|
|
Property and
equipment
|
104,862
|
|
102,145
|
|
|
|
|
|
|
|
|
|
Other
assets
|
|
|
|
|
|
|
Goodwill & other
intangible assets
|
773
|
|
775
|
|
|
|
Real property not
used in operations
|
6,744
|
|
8,405
|
|
|
|
Other
|
3,261
|
|
2,966
|
|
|
|
|
10,778
|
|
12,146
|
|
|
|
|
|
|
|
|
|
|
|
$ 129,262
|
|
$ 128,712
|
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Long-term debt,
current maturities
|
$ 1,996
|
|
$ 5,879
|
|
|
|
Accounts
payable
|
6,812
|
|
8,535
|
|
|
|
Accrued and other
expenses
|
9,319
|
|
4,846
|
|
|
|
|
18,127
|
|
19,260
|
|
|
|
|
|
|
|
|
|
Long-term
obligations
|
|
|
|
|
|
|
Long-term
debt
|
4,737
|
|
9,600
|
|
|
|
Other long-term
obligations
|
12,055
|
|
16,197
|
|
|
|
|
16,792
|
|
25,797
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
94,343
|
|
83,655
|
|
|
|
|
|
|
|
|
|
|
|
$ 129,262
|
|
$ 128,712
|
|
|
|
|
|
|
|
|
SOURCE Frisch's Restaurants, Inc.