CINCINNATI, Oct. 22, 2014 /PRNewswire/ -- Frisch's
Restaurants, Inc. (NYSE MKT: FRS) reported revenue of $62,583,320 during its fiscal 2015 first quarter
ended September 23, 2014 (consisting
of 16 weeks), a 2.2 percent increase over the $61,236,621 reported in the prior year's first
quarter. Net Earnings increased 37.2 percent in the first quarter
to $2,622,801 ($0.51 diluted earnings per share) up from
$1,912,045 ($0.38 diluted earnings per share) in the
comparable quarter last year. The increase in earnings
was primarily due to higher restaurant operating income of
$167,258 and a $1,405,176 gain from the sale of a restaurant
that was closed in July 2014, offset
in part by an impairment charge of $418,300 in the carrying value of property held
for sale.
Same store sales were up 1.8 percent in the first quarter of
fiscal 2015 while overall sales increased 2.2 percent over the
first quarter of fiscal 2014 as a result of a new restaurant
opening in the prior year offset in part by the closure of an
existing unit in July of this year. As a percentage of sales,
the margin on restaurant operating income of 10.2 percent was
flat with the prior year's first quarter, as higher costs for beef
were compensated by lower pension costs and lower fees on gift
cards.
At the Corporate level, administrative expense increased 5.4
percent in first quarter 2015 primarily as a result of higher
professional fees and higher incentive compensation expense than
last year's first quarter. The effective tax rate decreased
to 29.9 percent in the quarter compared to 30 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
growth in sales despite marginally lower customer counts, a trend
we see extending into our second quarter as the economy in our
market area continues to strengthen. Our same store
drive-through sales showed especially strong results in the first
quarter 2015 with an 8 percent increase versus last year. On the
cost side we continue to be challenged by the continuation of
historically high beef prices, but were able to maintain our margin
percentage through other cost savings."
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 26 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. 23,
|
|
Sept. 17,
|
|
|
|
|
2014
|
|
2013
|
|
Sales
|
|
$ 62,583
|
|
$ 61,237
|
|
Cost of
sales
|
|
|
|
|
|
|
Food and
paper
|
|
21,201
|
|
20,350
|
|
|
Payroll and
related
|
|
21,749
|
|
21,633
|
|
|
Other operating
costs
|
|
13,243
|
|
13,031
|
|
|
|
|
56,193
|
|
55,014
|
|
Restaurant operating
income
|
|
6,390
|
|
6,223
|
|
|
Administrative and
advertising
|
|
3,970
|
|
3,767
|
|
|
Other
(revenue)
|
|
(444)
|
|
(424)
|
|
|
(Gain) on sale of
real property
|
|
(1,405)
|
|
(67)
|
|
|
Impairment of long
lived assets
|
|
418
|
|
-
|
|
Operating
income
|
|
3,851
|
|
2,947
|
|
|
Interest
expense
|
|
111
|
|
215
|
|
Earnings before
income tax
|
|
3,740
|
|
2,732
|
|
Income
taxes
|
|
1,117
|
|
820
|
|
NET
EARNINGS
|
|
$ 2,623
|
|
$ 1,912
|
|
|
|
|
|
|
|
|
Earnings per share
(EPS) of common stock:
|
|
|
|
|
|
|
Basic net earnings
per share
|
|
$.51
|
|
$.38
|
|
|
Diluted net earnings
per share
|
|
$.51
|
|
$.38
|
|
Diluted average
shares outstanding
|
|
5,122
|
|
5,081
|
|
Depreciation included
above
|
|
$ 3,221
|
|
$ 3,227
|
|
|
|
|
|
|
|
|
Frisch's Restaurants,
Inc. and Subsidiaries
|
CONDENSED
CONSOLIDATED BALANCE SHEET
|
(In thousands of
dollars)
|
|
|
|
September
23,
|
|
June 3,
|
|
|
|
2014
|
|
2014
|
|
|
|
(unaudited)
|
|
|
Assets
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and
equivalents
|
$ 3,386
|
|
$ 2,038
|
|
|
Trade and other
receivables
|
1,527
|
|
1,900
|
|
|
Inventories
|
6,334
|
|
5,637
|
|
|
Other current
assets
|
3,905
|
|
4,047
|
|
|
|
15,152
|
|
13,622
|
|
|
|
|
|
|
|
Property and
equipment
|
104,657
|
|
104,862
|
|
|
|
|
|
|
|
Other
assets
|
|
|
|
|
|
Goodwill & other
intangible assets
|
772
|
|
773
|
|
|
Real property not
used in operations
|
6,326
|
|
6,744
|
|
|
Other
|
3,393
|
|
3,261
|
|
|
|
10,491
|
|
10,778
|
|
|
|
|
|
|
|
|
|
$ 130,300
|
|
$ 129,262
|
|
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Long-term debt,
current maturities
|
$ 1,814
|
|
$ 1,996
|
|
|
Accounts
payable
|
7,451
|
|
6,812
|
|
|
Accrued and other
expenses
|
8,894
|
|
9,319
|
|
|
|
18,159
|
|
18,127
|
|
|
|
|
|
|
|
Long-term
obligations
|
|
|
|
|
|
Long-term
debt
|
4,311
|
|
4,737
|
|
|
Other long-term
obligations
|
12,305
|
|
12,055
|
|
|
|
16,616
|
|
16,792
|
|
|
|
|
|
|
|
Shareholders'
equity
|
95,525
|
|
94,343
|
|
|
|
|
|
|
|
|
|
$ 130,300
|
|
$ 129,262
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/frischs-reports-first-quarter-fiscal-2015-results-547710754.html
SOURCE Frisch's Restaurants, Inc.