CINCINNATI, Oct. 16, 2013 /PRNewswire/ -- Frisch's
Restaurants, Inc. (NYSE MKT: FRS) reported revenue of $61,236,621 during its fiscal 2014 first quarter
ended September 17, 2013 (consisting
of 16 weeks), a one percent increase over the $60,625,296 reported in the prior year's first
quarter. Earnings from continuing operations increased 99.6
percent in the first quarter to $1,912,045 ($0.38
diluted earnings per share) up from $957,993 ($0.19
diluted earnings per share) in the comparable quarter last
year. The increase in earnings was due to improved gross
profit margin, lower administrative cost and lower interest expense
along with a lower effective tax rate.
Same store sales were down 1.0 percent in the first quarter of
fiscal 2014 while overall sales increased 1.0 percent over the
first quarter of fiscal 2013 as a result of two new restaurant
openings. Gross profit margin of 10.2 percent increased from
9.6 percent in the prior year's first quarter, primarily as a
result of lower pension costs and improved efficiency in our
commissary operations.
At the Corporate level, administrative expense decreased 14.3
percent in first quarter 2014 primarily as a result lower
head-count, lower professional fees, lower pension expense, and
lower stock compensation expense than last year's first
quarter. The effective tax rate decreased to 30 percent in
the quarter compared to 32 percent in last year's first quarter due
to changes in tax credits and deferred state taxes.
Craig F. Maier, President and
Chief Executive Officer, said, "Our first quarter showed good
results despite lower customer counts that affected same store
sales adversely, a trend which is consistent with reports of
declining customer counts throughout the family dining segment of
the restaurant industry. The modest revenue increase
combined with good cost control measures, including head-count
reductions, drove our increase in earnings."
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.
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.
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.
[See attached Financial Statements]
|
Frisch's Restaurants,
Inc. and Subsidiaries
|
CONDENSED
CONSOLIDATED STATEMENT OF EARNINGS (unaudited)
|
(In thousands, except
per share data)
|
|
|
|
|
|
|
|
16 weeks
ended
|
|
|
Sept. 17,
|
|
Sept. 18,
|
|
|
2013
|
|
2012
|
|
|
|
|
|
Sales
|
$
61,237
|
|
$
60,625
|
Cost of
sales
|
|
|
|
|
Food and
paper
|
20,350
|
|
20,275
|
|
Payroll and
related
|
21,633
|
|
21,452
|
|
Other operating
costs
|
13,031
|
|
13,123
|
|
|
55,014
|
|
54,850
|
Gross
profit
|
6,223
|
|
5,775
|
|
Administrative and
advertising
|
3,767
|
|
4,393
|
|
Franchise fees and
other revenue
|
(424)
|
|
(428)
|
|
(Gain) loss on sale
of assets
|
(67)
|
|
11
|
|
Impairment of long
lived assets
|
-
|
|
70
|
Operating
profit
|
2,947
|
|
1,729
|
|
Interest
expense
|
215
|
|
321
|
Earnings from
continuing operations before income
taxes
|
2,732
|
|
1,408
|
Income
taxes
|
820
|
|
450
|
Earnings from
continuing operations
|
1,912
|
|
958
|
(Loss) from
discontinued operations, net of tax
|
-
|
|
(158)
|
NET
EARNINGS
|
$
1,912
|
|
$
800
|
|
|
|
|
|
Earnings per share
(EPS) of common stock:
|
|
|
|
|
Basic net earnings
per share:
|
|
|
|
|
Earnings from
continuing operations
|
$
0.38
|
|
$
0.19
|
|
(Loss) from
discontinued operations
|
$
-
|
|
$
(0.03)
|
|
Basic net earnings
per share
|
$
0.38
|
|
$
0.16
|
|
Diluted net earnings
per share:
|
|
|
|
|
Earnings from
continuing operations
|
$
0.38
|
|
$
0.19
|
|
(Loss) from
discontinued operations
|
$
-
|
|
$
(0.03)
|
|
Diluted net earnings
per share
|
$
0.38
|
|
$
0.16
|
Diluted average
shares outstanding
|
5,081
|
|
5,017
|
Depreciation included
above
|
$
3,227
|
|
$
3,112
|
|
|
|
|
|
|
Frisch's Restaurants,
Inc. and Subsidiaries
|
CONDENSED
CONSOLIDATED BALANCE SHEET
|
(In thousands of
dollars)
|
|
|
|
September
17,
|
|
May 28,
|
|
|
|
2013
|
|
2013
|
|
|
|
(unaudited)
|
|
|
Assets
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and
equivalents
|
$
4,001
|
|
$
4,256
|
|
|
Receivables
|
1,397
|
|
1,297
|
|
|
Inventories
|
6,489
|
|
5,765
|
|
|
Other current
assets
|
2,665
|
|
3,103
|
|
|
|
14,552
|
|
14,421
|
|
Property and
equipment
|
103,987
|
|
102,145
|
|
Other
assets
|
|
|
|
|
|
Goodwill & other
intangible assets
|
774
|
|
775
|
|
|
Property held for
sale and land-deferred
development
|
7,638
|
|
8,405
|
|
|
Deferred income taxes
and other
|
3,188
|
|
2,966
|
|
|
|
11,600
|
|
12,146
|
|
|
|
|
|
|
|
|
|
$
130,139
|
|
$
128,712
|
|
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Accounts
payable
|
$
8,844
|
|
$
5,879
|
|
|
Accrued
expenses
|
7,413
|
|
8,025
|
|
|
Other
|
5,012
|
|
5,357
|
|
|
|
21,269
|
|
19,261
|
|
|
|
|
|
|
|
Long-term
obligations
|
|
|
|
|
|
Long-term
debt
|
8,241
|
|
9,600
|
|
|
Other long-term
obligations
|
16,228
|
|
16,195
|
|
|
|
24,469
|
|
25,795
|
|
|
|
|
|
|
|
Shareholders'
equity
|
84,401
|
|
83,656
|
|
|
|
|
|
|
|
|
|
$
130,139
|
|
$
128,712
|
|
|
|
|
|
|
SOURCE Frisch's Restaurants, Inc.