CINCINNATI, Jan. 16 /PRNewswire-FirstCall/ -- Frisch's Restaurants, Inc. (AMEX:FRS) reported record sales for its 12-week fiscal second quarter ended December 12, 2006. Revenues rose 2.0% to $68,268,449 from $66,953,103 for last year's second quarter. Net earnings for the quarter increased 66.9% to a record $2,808,026 compared to $1,682,771 last year. Diluted earnings per share increased to $.54 per share, from $.33 per share last year.
For the first half of fiscal 2007, revenue also rose 2% to $156,516,874 from $153,485,878 for the first half of last year. Earnings increased 18.6% to $5,080,226 from $4,284,802. Diluted earnings per share rose to $.98 from $.83 last year.
Craig F. Maier, President and Chief Executive Officer, said, "Same store sales at our Big Boy Restaurants increased 0.9% in the second quarter. We continue to see the same modest improvements that we experienced in the first quarter, and the mild winter weather thus far has produced additional gains in the early weeks of the third quarter." Maier added, "I am very happy to report our Golden Corral restaurants posted a same store sales increase of 0.6% during the second quarter. This ends a string of quarterly same store sales declines for our Golden Corral restaurants." During the quarter, the Company relocated one Big Boy restaurant in the greater Cincinnati market. No Golden Corral restaurants were opened during the quarter. Frisch's operates 34 Golden Corral restaurants and 90 company- owned Big Boy restaurants, and there are an additional 28 franchised Big Boy restaurants operated by licensees.
The higher earnings for the quarter can be attributed to modest sales increases and lower food cost in both Big Boy and Golden Corral operations, and to lower payroll costs in the Golden Corral restaurants.
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, Dayton, Toledo and Cleveland, Ohio, Louisville, Kentucky and Pittsburgh, Pennsylvania. Plans are in place to expand the Golden Corral operation into markets in Columbus, Ohio, northern Indiana and southern Michigan.
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) Twenty-eight weeks ended Twelve weeks ended
Dec. 12, Dec. 11, Dec. 12, Dec. 11,
2006 2005 2006 2005 Sales $156,517 $153,486 $68,268 $66,953 Cost of sales
Food and paper 54,389 53,615 23,384 23,510
Payroll and related 51,493 50,752 22,412 22,200
Other operating costs 34,759 33,928 14,727 15,042
140,641 138,295 60,523 60,752 Gross profit 15,876 15,191 7,745 6,201 Administrative and
advertising 7,689 7,923 3,426 3,342
Franchise fees and other
revenue (690) (662) (296) (290)
(Gains) losses on sale
of assets (250) - (250) - Operating profit 9,127 7,930 4,865 3,149 Interest expense 1,430 1,439 611 657 Earnings before income tax 7,697 6,491 4,254 2,492 Income taxes 2,617 2,206 1,446 809 NET EARNINGS $5,080 $4,285 $2,808 $1,683 Earnings per share (EPS)
of common stock: Basic net earnings per
share $1.00 $.85 $.55 $.33 Diluted net earnings per
share $.98 $.83 $.54 $.33
Diluted average shares
outstanding 5,174 5,162 5,183 5,162 Depreciation included
above $7,164 $6,861 $3,087 $3,014 Opening expense included
above $241 $1,131 $111 $370 Frisch's Restaurants, Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEET
(In thousands of dollars) Dec. 12, May 30,
2006 2006
(unaudited)
Assets
Current assets
Cash and equivalents $488 $815
Receivables 1,261 1,538
Inventories 4,690 4,792
Other current assets 4,864 4,918
11,303 12,063 Property and equipment 156,252 154,370 Other assets
Goodwill & other intangible assets 2,076 2,125
Property held for sale and land
investments 2,627 3,078
Other 2,869 3,647
7,572 8,850 $175,127 $175,283 Liabilities and shareholders' equity
Current liabilities
Accounts payable $10,036 $10,330
Accrued expenses 9,037 9,640
Other 13,795 10,613
32,868 30,583 Long-term obligations
Long-term debt 26,911 30,992
Other long-term obligations 10,607 13,027
37,518 44,019 Shareholders' equity 104,741 100,681 $175,127 $175,283
DATASOURCE: Frisch's Restaurants, Inc.
CONTACT: Donald H. Walker, Vice President-Finance and CFO of Frisch's Restaurants, Inc., +1-513-559-5202 Web site: http://www.frischs.com/
|