CINCINNATI, July 23 /PRNewswire-FirstCall/ -- Frisch's Restaurants, Inc. (AMEX:FRS) reported sales of $289,934,367 for its fiscal year that ended May 29, 2007, slightly less than last year's record level of $290,967,866. Last year included the benefit of two extra days of sales that were added to the fourth quarter to effect a change in the Company's year end. Net earnings for the year rose 1% to $9,267,556 compared to $9,159,765 last year. Diluted earnings per share for both years were $1.78 as there were slightly more equivalent shares outstanding in fiscal 2007 than last year.
For the fourth quarter of fiscal 2007, sales declined 3% to $67,965,988 from $70,222,125 compared to last year's fourth quarter. Net earnings declined 15% to $2,272,333 from $2,669,265. Diluted earnings per share were to $.43 compared to $.52 last year.
Craig F. Maier, President and Chief Executive Officer, said, "Same store sales at our Big Boy Restaurants rose for the tenth consecutive year. Also, for the first time ever, our average annual same store sales exceeded $2,000,000 per location. We are very proud of both of these records and have every intention of extending them." Maier added, "Our Golden Corral restaurants posted a same store sales decline of 2% for the fiscal year. We continue to look for ways to improve the unit volumes in our Golden Corrals." The higher earnings for the year can be attributed to a strong first half that did not carry over to the second half when harsh winter weather, higher gasoline prices and an increase in the Ohio minimum wage all worked against the Company.
During the fiscal year, the Company closed five Big Boy restaurants, while two were opened. In addition, three new Big Boys were under construction at year end. No new Golden Corrals were opened during the year, and one was under construction at year end. Frisch's operates 34 Golden Corral restaurants and 87 company-owned Big Boy restaurants, and there are an additional 28 franchised Big Boy restaurants operated by licensees.
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. The Company has development rights 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
(In thousands, except per share data) (unaudited)
Year ended Twelve weeks ended
May 29, May 30, May 29, May 30,
2007 2006 2007 2006 Sales $289,934 $290,968 $67,966 $70,222
Cost of sales
Food and paper 101,401 102,106 24,188 24,789
Payroll and related 95,501 96,098 22,097 23,128
Other operating costs 64,043 64,338 15,298 15,622
260,945 262,542 61,583 63,539 Gross profit 28,989 28,426 6,383 6,683
Administrative and advertising 14,301 13,976 3,124 2,817
Franchise fees and other
revenue (1,253) (1,250) (288) (289)
(Gains) losses on sale of
assets (250) (568) - (174)
Operating profit 16,191 16,268 3,547 4,329
Interest expense 2,672 2,771 626 667
Earnings before income tax 13,519 13,497 2,921 3,662
Income taxes 4,251 4,337 649 993
NET EARNINGS $9,268 $9,160 $2,272 $2,669 Earnings per share (EPS) of common
stock:
Basic net earnings per share $1.82 $1.81 $.44 $.53
Diluted net earnings per share $1.78 $1.78 $.43 $.52
Diluted average shares outstanding 5,215 5,160 5,278 5,158
Depreciation included above $13,644 $13,125 $3,231 $3,239
Opening expense included above $538 $1,415 $297 $35 Frisch's Restaurants, Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEET
(In thousands of dollars) May 29, May 30,
2007 2006
Assets
Current assets
Cash and equivalents $321 $815
Receivables 1,406 1,538
Inventories 6,376 4,792
Other current assets 2,915 4,918
11,018 12,063
Property and equipment 159,287 154,370
Other assets
Goodwill & other intangible assets 1,957 2,125
Property held for sale and land
investments 3,721 3,078
Other 3,276 3,647
8,954 8,850 $179,259 $175,283 Liabilities and shareholders' equity
Current liabilities
Accounts payable $12,354 $10,330
Accrued expenses 9,235 9,640
Other 15,262 10,613
36,851 30,583 Long-term obligations
Long-term debt 25,009 30,992
Other long-term obligations 9,529 13,027
34,538 44,019 Shareholders' equity 107,870 100,681 $179,259 $175,283
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/
|