CINCINNATI, Oct. 25 /PRNewswire-FirstCall/ -- Frisch's Restaurants, Inc. (AMEX:FRS) reported record sales for its 16-week fiscal first quarter ended September 18, 2007. Revenues rose 1.4% to $89,526,444 from $88,248,425 for last year's first quarter. Net earnings for the quarter increased 7.8% to $2,450,485 compared to $2,272,200 last year. Diluted earnings per share increased to $.47 per share, from $.44 per share last year.
Craig F. Maier, President and Chief Executive Officer, said, "Same store sales at our Big Boy Restaurants increased 1.2% in our fiscal first quarter. We believe a direct correlation continues to exist between the steep cost of gasoline and the softness in our same store sales at Big Boy." Maier added, "Our Golden Corral restaurants posted a same store sales decline of 2.8% during our fiscal first quarter. We have experienced same store sales declines for our Golden Corral restaurants in fifteen of the last sixteen quarters. The declines have been less severe in recent quarters, but we have not yet found the key to reversing this trend." During the quarter, the company opened two new Big Boy restaurants and reopened another in a brand new facility. One Golden Corral restaurant was opened during the 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.
Improved earnings for the quarter can be partly attributed to gains on the sales of closed restaurant properties. The gains helped to offset the rise in food cost that has been driven by higher commodity prices. Also, increases in the minimum wage have adversely impacted both Big Boy and Golden Corral operations and have caused the Company to cut back on labor hours worked.
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 has development rights to expand the Golden Corral operation into markets in 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) Sixteen Weeks ended
Sept. 18, Sept. 19,
2007 2006 Sales $89,526 $88,248
Cost of sales
Food and paper 31,598 31,005
Payroll and related 29,779 29,081
Other operating costs 20,360 20,032
81,737 80,118 Gross profit 7,789 8,130
Administrative and advertising 4,346 4,263
Franchise fees and other revenue (378) (394)
(Gains) losses on sale of assets (524) - Operating profit 4,345 4,261
Interest expense 742 818 Earnings before income tax 3,603 3,443
Income taxes 1,153 1,171
NET EARNINGS $2,450 $2,272 Earnings per share (EPS) of common stock:
Basic net earnings per share $.48 $.45
Diluted net earnings per share $.47 $.44 Diluted average shares outstanding 5,253 5,167
Depreciation included above $4,228 $4,077
Opening expense included above $585 $130 Frisch's Restaurants, Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEET
(In thousands of dollars) Sept. 18, May 29,
2007 2007
(unaudited)
Assets
Current assets
Cash and equivalents $898 $321
Receivables 1,519 1,406
Inventories 5,897 6,376
Other current assets 3,409 2,915
11,723 11,018 Property and equipment 160,182 159,287 Other assets
Goodwill & other intangible assets 1,941 1,957
Property held for sale and land
investments 2,942 3,721
Other 3,046 3,276
7,929 8,954 $179,834 $179,259 Liabilities and shareholders' equity
Current liabilities
Accounts payable $10,862 $12,354
Accrued expenses 8,388 9,235
Other 15,069 15,262
34,319 36,851 Long-term obligations
Long-term debt 26,493 25,009
Other long-term obligations 9,424 9,529
35,917 34,538 Shareholders' equity 109,598 107,870 $179,834 $179,259
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/
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