CINCINNATI, April 8, 2008 /PRNewswire-FirstCall/ -- Frisch's Restaurants, Inc. (AMEX:FRS) reported higher sales for its 12-week fiscal third quarter ended March 4, 2008. Revenues rose 1.8% to $66,618,420 from $65,451,505 for last year's third quarter. Net earnings for the quarter increased 7.9% to $2,065,377 compared to $1,914,997 last year. Diluted earnings per share increased to $.40 per share, from $.37 per share last year.
For the first three quarters of fiscal 2008, revenue rose 1.5% to a record $225,358,248 from $221,968,379 for the first three quarters of last year. Earnings decreased 4.5% to $6,683,877 from $6,995,223. Diluted earnings per share declined to $1.28 from $1.35 last year.
Craig F. Maier, President and Chief Executive Officer, said, "Same store sales at our Big Boy Restaurants declined a modest 0.5% in the third quarter. We still believe higher gasoline costs and the sluggish Midwest economy continue to impact our customers as customer counts declined as well in the quarter." Maier added, "We are pleased to report that our Golden Corral restaurants posted a slight same store sales increase of 0.2% during the third quarter. This was only the second quarterly same store sales increase for our Golden Corrals in the last eighteen quarters." No new restaurants opened during the third quarter. Frisch's operates 35 Golden Corral restaurants and 89 company-owned Big Boy restaurants, and there are an additional 28 franchised Big Boy restaurants operated by licensees.
Despite higher food cost in both Big Boy and Golden Corral operations and only modest same store sales changes, earnings improved for the quarter, which is a tribute to the efforts of all Company employees in difficult times.
Frisch's Restaurants, Inc. is a regional company that operates full service family-style restaurants under the name "Frisch's Big Boy." The Company also operates grill buffet style restaurants under the name "Golden Corral" pursuant to certain licensing agreements. All Big Boy restaurants are currently located in various regions of Ohio, Kentucky and Indiana. Golden Corral restaurants currently operate primarily in the greater metropolitan areas of Cincinnati, Cleveland, Columbus, Dayton and Toledo, Ohio, Louisville, Kentucky and Pittsburgh, Pennsylvania.
The Company owns the trademark "Frisch's" and has exclusive, irrevocable ownership of the rights to the "Big Boy" trademark, trade name and service mark 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.
Frisch's Restaurants, Inc. and Subsidiaries
CONSOLIDATED STATEMENT OF EARNINGS (unaudited)
(In thousands, except per share data) Forty weeks ended Twelve weeks ended
March 4, March 6, March 4, March 6,
2008 2007 2008 2007 Sales $225,358 $221,968 $66,618 $65,452
Cost of sales
Food and paper 79,892 77,214 23,940 22,824
Payroll and related 74,267 73,403 21,777 21,911
Other operating costs 49,988 48,745 14,429 13,987
204,147 199,362 60,146 58,722
Gross profit 21,211 22,606 6,472 6,730
Administrative and advertising 11,043 11,177 3,213 3,488
Franchise fees and other
revenue (968) (965) (288) (276)
Gains on sale of assets (524) (250) - -
Operating profit 11,660 12,644 3,547 3,518
Interest expense 1,831 2,046 511 617
Earnings before income tax 9,829 10,598 3,036 2,901
Income taxes 3,145 3,603 971 986
NET EARNINGS $6,684 $6,995 $2,065 $1,915 Earnings per share (EPS) of
common stock:
Basic net earnings per share $1.30 $1.38 $.40 $.38
Diluted net earnings per share $1.28 $1.35 $.40 $.37
Diluted average shares outstanding 5,236 5,193 5,199 5,235
Depreciation included above $10,765 $10,413 $3,273 $3,249
Opening expense included above $608 $241 $- $- Frisch's Restaurants, Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEET
(In thousands of dollars) March 4, May 29,
2008 2007
(unaudited)
Assets
Current assets
Cash and equivalents $516 $321
Receivables 1,745 1,406
Inventories 6,321 6,376
Other current assets 3,734 2,915
12,316 11,018
Property and equipment 157,621 159,287
Other assets
Goodwill & other intangible assets 1,741 1,957
Property held for sale and land investments 3,005 3,721
Other 2,826 3,276
7,572 8,954 $177,509 $179,259 Liabilities and shareholders' equity
Current liabilities
Accounts payable $10,416 $12,354
Accrued expenses 8,794 9,235
Other 13,157 15,262
32,367 36,851 Long-term obligations
Long-term debt 23,724 25,009
Other long-term obligations 7,928 9,529
31,652 34,538 Shareholders' equity 113,490 107,870 $177,509 $179,259
DATASOURCE: Frisch's Restaurants, Inc.
CONTACT: Donald H. Walker, Vice President-Finance and CFO, Frisch's Restaurants, Inc., +1-513-559-5202 Web site: http://www.frischs.com/
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