FRS

CINCINNATI, July 25, 2012 /PRNewswire/ -- Frisch's Restaurants, Inc. (NYSE MKT: FRS) reported revenue from continuing operations of $205,082,827 for the fiscal year ended May 29, 2012, with  those revenues rising $3,365,931, or 1.7%, from $201,716,896  in the prior year. Net earnings from continuing operations for the year declined 18.3% to $5,801,540 compared to $7,104,556 last year.  Diluted earnings per share from continuing operations decreased to $1.17 per share, from $1.40 per share last year.  The decline in earnings from continuing operations in contrast to the revenue increase resulted in part from the fourth quarter impairment of a Big Boy location which is being closed.

On May 16, 2012, the Company closed on the sale of its Golden Corral restaurant operations to Golden Corral Corporation, consisting of the assets of 29 restaurants.  The Company recorded a pretax loss on the sale of $5,590,000 ($5,256,000 in the fourth quarter) during the year ended May 29, 2012.  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 recorded in the first quarter 2012.  Additional pre-tax impairment charges on the six closed stores were taken in the third quarter ($94,000) and the fourth quarter ($294,000) totaling ($388,000).  The results of operations of Golden Corral, along with the above described loss on the sale and the impairment charges, are presented as discontinued operations in the consolidated financial statements.  The loss from discontinued operations, net of tax, was ($3,653,329) for the fiscal year ended May 29, 2012 versus earnings of $2,368,033 in the prior year.

For the fourth quarter of fiscal 2012, revenue from continuing operations was essentially flat at $47,499,363 versus $47,835,560 in the prior year.  Earnings from continuing operations in the fourth quarter were $1,566,470 compared to $1,798,949 in the prior year.  The fourth quarter of fiscal 2012 includes credits to income tax expense to reflect the actual effective tax rate for the year. 

Craig F. Maier, President and Chief Executive Officer, commented on the results, "We completed a momentous year on a high note with the completion of the sale of our Golden Corral business.  We believe this restructuring of our business will contribute to enhanced value for our shareholders.  In addition, our Big Boy concept continues to generate solid profits and cash flow as we move into our new fiscal year."

The company opened one new Big Boy restaurant in July 2011, in our first quarter and a second restaurant in October in our second quarter.  For the fiscal year we closed four Big Boy units.  Frisch's currently operates 93 company-owned Big Boy restaurants and there are an additional 25 franchised Big Boy restaurants operated by licensees. 

[See attached Financial Statements]

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.

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.

www.frischs.com  

SOURCE Frisch’s Restaurants, Inc.