CINCINNATI, Jan. 8, 2014 /PRNewswire/ -- Frisch's
Restaurants, Inc. (NYSE MKT: FRS) reported revenue of $49,216,739 during its fiscal 2014 second quarter
ended December 10, 2013 (consisting
of 12 weeks), a 1.4 percent increase over the $48,522,512 reported in the prior year's second
quarter. Net earnings increased 18.2 percent in the second
quarter to $2,364,019 ($0.46 diluted earnings per share (EPS)) up from
$2,000,384 ($0.39 diluted EPS) in the comparable quarter last
year. The increase in earnings was due to the benefits
of lower administrative expense, lower interest expense and a lower
effective tax rate offset partly by a lower gross profit margin.
Year-to-date revenue was $110,453,360
versus $109,147,808 in the prior
year, a 1.2 percent increase, and year-to-date net earnings grew
52.7 percent to $4,276,066
($0.84 diluted EPS) from $2,800,672, ($0.56
diluted EPS) in the prior year. (Prior year earnings included a
small charge against income tax from discontinued operations.)
Same store sales were essentially flat in the second quarter of
fiscal 2014 while overall sales increased 1.4 percent over the
second quarter of fiscal 2013 as a result of two new restaurant
openings. Gross profit margin of 11.8 percent decreased from
12.3 percent in the prior year's second quarter, primarily as a
result of higher new store opening costs and higher payroll costs
offset partly by lower pension costs and improved efficiency in our
commissary operations.
At the Corporate level, administrative expense decreased 6.3
percent in second quarter 2014 primarily as a result lower
head-count, lower stock compensation expense, and lower pension
expense than last year's second quarter. The effective tax
rate decreased to 26.3 percent in the quarter compared to 34.7
percent in last year's second quarter due to changes in deferred
taxes and last year's placement of a valuation allowance on certain
deferred tax assets. Franchise fees and other revenue
increased in second quarter 2014 versus second quarter 2013 due to
the granting of a new license to a franchisee in the
quarter.
Craig F. Maier, President and
Chief Executive Officer, said, "Our second quarter showed good
results despite lower customer counts. We continue to counter
softness in customer counts with the introduction of new menu items
combined with an emphasis on growing our drive-thru service with
new equipment and fast service. The modest revenue increase
combined with good cost control measures, including head-count
reductions, drove our double-digit increase in earnings.
Beginning in our third quarter, we are looking forward to offering
an enhanced line of soft drinks with the introduction of Pepsi
products in all of our units."
*************************
Frisch's Restaurants, Inc. is a regional company that
operates full service family-style restaurants under the name
"Frisch's Big Boy." All Frisch's 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 Frisch's Big Boy restaurants to other
operators, currently in certain parts of Ohio, Kentucky and Indiana.
The Company currently operates 96 company-owned Frisch's Big Boy
restaurants and there are an additional 25 franchised Frisch's Big
Boy restaurants that are operated by licensees.
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 news 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.
[See attached Financial Statements]
Frisch's Restaurants,
Inc. and Subsidiaries
|
|
CONDENSED
CONSOLIDATED STATEMENT OF EARNINGS (unaudited)
|
|
(In thousands, except
per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
28 weeks
ended
|
|
12 weeks
ended
|
|
|
|
Dec. 10,
|
|
Dec. 11,
|
|
Dec. 10,
|
|
Dec. 11,
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
$
110,453
|
|
$
109,148
|
|
$
49,217
|
|
$
48,523
|
|
Cost of
sales
|
|
|
|
|
|
|
|
|
|
Food and
paper
|
36,703
|
|
36,435
|
|
16,353
|
|
16,159
|
|
|
Payroll and
related
|
38,720
|
|
38,086
|
|
17,087
|
|
16,634
|
|
|
Other operating
costs
|
22,993
|
|
22,859
|
|
9,962
|
|
9,736
|
|
|
|
98,416
|
|
97,380
|
|
43,402
|
|
42,529
|
|
Gross
profit
|
12,037
|
|
11,768
|
|
5,815
|
|
5,994
|
|
|
Administrative and
advertising
|
6,597
|
|
7,413
|
|
2,831
|
|
3,023
|
|
|
Franchise fees and
other revenue
|
(782)
|
|
(751)
|
|
(358)
|
|
(322)
|
|
|
(Gain) loss on sale
of assets
|
(67)
|
|
14
|
|
-
|
|
2
|
|
|
Impairment of long
lived assets
|
-
|
|
71
|
|
-
|
|
-
|
|
Operating
profit
|
6,289
|
|
5,021
|
|
3,342
|
|
3,291
|
|
|
Interest
expense
|
350
|
|
550
|
|
135
|
|
229
|
|
Earnings from
continuing operations before income taxes
|
5,939
|
|
4,471
|
|
3,207
|
|
3,062
|
|
Income
taxes
|
1,663
|
|
1,512
|
|
843
|
|
1,062
|
|
Earnings from
continuing operations
|
4,276
|
|
2,959
|
|
2,364
|
|
2,000
|
|
(Loss) from
discontinued operations, net of tax
|
-
|
|
(158)
|
|
-
|
|
-
|
|
NET
EARNINGS
|
$
4,276
|
|
$
2,801
|
|
$
2,364
|
|
$
2,000
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
(EPS) of common stock:
|
|
|
|
|
|
|
|
|
|
Basic net earnings
per share:
|
|
|
|
|
|
|
|
|
|
Earnings from
continuing operations
|
$
0.84
|
|
$
0.59
|
|
$
0.46
|
|
$
0.40
|
|
|
(Loss) from
discontinued operations
|
$
-
|
|
$
(0.03)
|
|
$
-
|
|
$
-
|
|
|
Basic net earnings
per share
|
$
0.84
|
|
$
0.56
|
|
$
0.46
|
|
$
0.40
|
|
|
Diluted net earnings
per share:
|
|
|
|
|
|
|
|
|
|
Earnings from
continuing operations
|
$
0.84
|
|
$
0.59
|
|
$
0.46
|
|
$
0.39
|
|
|
(Loss) from
discontinued operations
|
$
-
|
|
$
(0.03)
|
|
$
-
|
|
$
-
|
|
|
Diluted net earnings
per share
|
$
0.84
|
|
$
0.56
|
|
$
0.46
|
|
$
0.39
|
|
Diluted average
shares outstanding
|
5,091
|
|
5,028
|
|
5,104
|
|
5,070
|
|
Depreciation included
above
|
$
5,663
|
|
$
5,534
|
|
$
2,436
|
|
$
2,422
|
|
Opening expense
included above
|
$
188
|
|
$
277
|
|
$
120
|
|
$
73
|
|
|
|
|
|
|
|
|
|
|
|
Frisch's Restaurants,
Inc. and Subsidiaries
|
CONDENSED
CONSOLIDATED BALANCE SHEET
|
(In thousands of
dollars)
|
|
|
|
|
December
10,
|
|
May 28,
|
|
|
|
|
2013
|
|
2013
|
|
|
|
|
(unaudited)
|
|
|
|
Assets
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and
equivalents
|
$
1,144
|
|
$
4,256
|
|
|
|
Receivables
|
1,384
|
|
1,297
|
|
|
|
Inventories
|
6,578
|
|
5,765
|
|
|
|
Other current
assets
|
2,219
|
|
3,103
|
|
|
|
|
11,325
|
|
14,421
|
|
|
Property and
equipment
|
106,254
|
|
102,145
|
|
|
Other
assets
|
|
|
|
|
|
|
Goodwill & other
intangible assets
|
774
|
|
775
|
|
|
|
Property held for
sale and land investments
|
7,637
|
|
8,405
|
|
|
|
Deferred income taxes
and other
|
3,498
|
|
2,966
|
|
|
|
|
11,909
|
|
12,146
|
|
|
|
|
|
|
|
|
|
|
|
$
129,488
|
|
$
128,712
|
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Accounts
payable
|
$
8,621
|
|
$
5,879
|
|
|
|
Accrued
expenses
|
7,971
|
|
8,025
|
|
|
|
Other
|
2,920
|
|
5,357
|
|
|
|
|
19,512
|
|
19,261
|
|
|
|
|
|
|
|
|
|
Long-term
obligations
|
|
|
|
|
|
|
Long-term
debt
|
7,328
|
|
9,600
|
|
|
|
Other long-term
obligations
|
15,751
|
|
16,195
|
|
|
|
|
23,079
|
|
25,795
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
86,897
|
|
83,656
|
|
|
|
|
|
|
|
|
|
|
|
$
129,488
|
|
$
128,712
|
|
|
|
|
|
|
|
|
SOURCE Frisch's Restaurants, Inc.