CINCINNATI, April 10, 2013 /PRNewswire/ -- Frisch's
Restaurants, Inc. (NYSE MKT: FRS) reported an increase in earnings
from continuing operations on a modest decline in revenue from
continuing operations during its 12-week fiscal 2013 third quarter
that ended March 5, 2013.
Consolidated revenue from continuing operations declined 1.1
percent to $45,771,994 from
$46,284,545 in last year's third
quarter. Earnings from continuing operations for the quarter
increased 1.9 percent to $1,747,849,
up from $1,715,217 in last year's
third quarter. Diluted earnings per share from continuing
operations were $0.34 per share
compared with $0.35 per share last
year. Year-to-date revenue from continuing operations was
$154,919,802 versus $157,583,464 in the prior year, while
year-to-date earnings from continuing operations grew 11.2 percent
to $4,706,226 ($0.93 diluted earnings per share) from
$4,234,070 ($0.86 diluted earnings per share) in the prior
year. The current fiscal year's year-to-date net earnings amounted
to $4,548,521 or $0.90 diluted net earnings per share.
Net earnings for last year's 12-week third quarter (ended
March 6, 2012) amounted to
$2,812,720 or $0.57 diluted net earnings per share. Last
year's third quarter includes results from discontinued operations,
which contributed $1,097,503 (net of
tax) or $0.22 diluted earnings per
share. Net earnings for last year's year-to-date amounted to
$3,326,543 or $0.67 diluted net earnings per share, which
includes the effect of the loss of $907,527 (net of tax) from discontinued
operations. Discontinued operations consist of the last
year's operating results from Golden
Corral restaurants. As reported previously, the
Company disposed of its Golden
Corral restaurant operations in May
2012, which consisted of the assets of 29 restaurants.
In addition, the Company had previously closed six under-performing
Golden Corral restaurants in
August 2011, which resulted in a
non-cash pretax asset impairment charge of $4,000,000 that was recorded in the first quarter
fiscal 2012.
Same store sales from continuing operations were down 0.9
percent in the third quarter fiscal 2013 while overall sales
decreased 1.1 percent as a result of last fiscal year's closures of
underperforming Frisch's Big Boy restaurants, offset in part by new
restaurant openings. Gross profit from continuing operations
increased 0.5 percent in the quarter versus the prior year,
resulting from relatively flat food and payroll costs as a
percentage of revenues combined with menu price
increases.
At the Corporate level, administrative and advertising expense
decreased 1.9 percent in third quarter fiscal 2013 primarily as a
result of lower head count resulting from cost cutting measures
implemented in fiscal 2013. The effective tax rate from
continuing operations increased to 26.2 percent in the quarter
compared to 15.4 percent in last year's third quarter, mostly due
to changes in available tax credits.
As reported previously, on July 25,
2012, the Board of Directors declared a special one-time
cash dividend of $9.50 per share
which was paid on September 14, 2012
to shareholders of record on August
31, 2012. The total for the special dividend amounted
to $47,963,000 and accounts for
significant changes in cash balances and shareholders' equity as of
March 5, 2013 as compared with fiscal
2012 year end.
Craig F. Maier, President and
Chief Executive Officer, said, "Our third quarter showed mixed
results as lower same store customer counts were partly offset by
menu price increases and new store openings while our payroll and
related costs, as a percentage of sales, improved over the prior
year resulting in gross profit margin improving to 10.9 percent in
the quarter versus 10.7 percent in the prior year. In
addition, our administrative costs continue to benefit from staff
reductions at our corporate headquarters. The staff reductions
provide a better match of our overhead structure with our business
after the sale of our Golden Corral
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 opened one new Frisch's Big Boy restaurant in August
in our first quarter and opened a second new Frisch's restaurant on
March 4, 2013. The Company
currently operates 95 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
|
CONSOLIDATED STATEMENT OF EARNINGS
(unaudited)
|
(In
thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
40 weeks
ended
|
|
12 weeks
ended
|
|
|
March
5,
|
|
March
6,
|
|
March
5,
|
|
March
6,
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
Sales
|
$
154,920
|
|
$
157,583
|
|
$
45,772
|
|
$
46,285
|
Cost of
sales
|
|
|
|
|
|
|
|
|
Food and
paper
|
51,857
|
|
53,225
|
|
15,422
|
|
15,616
|
|
Payroll
and related
|
54,367
|
|
55,751
|
|
16,281
|
|
16,514
|
|
Other
operating costs
|
31,961
|
|
32,683
|
|
9,102
|
|
9,214
|
|
|
138,185
|
|
141,659
|
|
40,805
|
|
41,344
|
Gross
profit
|
16,735
|
|
15,924
|
|
4,967
|
|
4,941
|
|
Administrative and advertising
|
10,109
|
|
10,330
|
|
2,695
|
|
2,748
|
|
Franchise
fees and other revenue
|
(1,057)
|
|
(994)
|
|
(306)
|
|
(300)
|
|
Loss
(Gain) on sale of assets
|
14
|
|
(191)
|
|
-
|
|
(191)
|
|
Impairment
of long lived assets
|
70
|
|
328
|
|
-
|
|
328
|
Operating
profit
|
7,599
|
|
6,451
|
|
2,578
|
|
2,356
|
|
Interest
expense
|
760
|
|
1,137
|
|
209
|
|
328
|
Earnings
from continuing operations before income taxes
|
6,839
|
|
5,314
|
|
2,369
|
|
2,028
|
Income
taxes
|
2,133
|
|
1,080
|
|
621
|
|
313
|
Earnings
from continuing operations
|
4,706
|
|
4,234
|
|
1,748
|
|
1,715
|
(Loss)
Earnings from discontinued operations, net of tax
|
(157)
|
|
(907)
|
|
-
|
|
1,098
|
NET
EARNINGS
|
$
4,549
|
|
$
3,327
|
|
$
1,748
|
|
$
2,813
|
|
|
|
|
|
|
|
|
|
Earnings
per share (EPS) of common stock:
|
|
|
|
|
|
|
|
|
Basic net
earnings per share:
|
|
|
|
|
|
|
|
|
Earnings
from continuing operations
|
$
0.94
|
|
$
0.86
|
|
$
0.35
|
|
$
0.35
|
|
(Loss)
Earnings from discontinued operations
|
$
(0.03)
|
|
$
(0.19)
|
|
$
-
|
|
$
0.22
|
|
Basic net
earnings per share
|
$
0.91
|
|
$
0.67
|
|
$
0.35
|
|
$
0.57
|
|
Diluted
net earnings per share:
|
|
|
|
|
|
|
|
|
Earnings
from continuing operations
|
$
0.93
|
|
$
0.86
|
|
$
0.34
|
|
$
0.35
|
|
(Loss)
Earnings from discontinued operations
|
$
(0.03)
|
|
$
(0.19)
|
|
$
-
|
|
$
0.22
|
|
Diluted
net earnings per share
|
$
0.90
|
|
$
0.67
|
|
$
0.34
|
|
$
0.57
|
Diluted
average shares outstanding
|
5,039
|
|
4,942
|
|
5,073
|
|
4,948
|
Depreciation included above
|
$
7,936
|
|
$
7,849
|
|
$
2,402
|
|
$
2,375
|
Opening
expense included above
|
$
461
|
|
$
398
|
|
$
183
|
|
$
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Frisch's
Restaurants, Inc. and Subsidiaries
|
CONSOLIDATED BALANCE SHEET
|
(In
thousands of dollars)
|
|
|
|
March
5,
|
|
May
29,
|
|
|
|
|
2013
|
|
2012
|
|
|
|
|
(unaudited)
|
|
|
|
Assets
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and
equivalents
|
$
3,011
|
|
$
49,455
|
|
|
|
Receivables
|
1,512
|
|
1,683
|
|
|
|
Inventories
|
6,531
|
|
5,590
|
|
|
|
Other
current assets
|
2,340
|
|
3,010
|
|
|
|
Current
assets of discontinued operations
|
-
|
|
190
|
|
|
|
|
13,394
|
|
59,928
|
|
|
|
|
|
|
|
|
|
Property
and equipment
|
102,955
|
|
102,139
|
|
|
|
|
|
|
|
|
|
Other
assets
|
|
|
|
|
|
|
Goodwill
& other intangible assets
|
776
|
|
777
|
|
|
|
Property
held for sale and land investments
|
8,968
|
|
11,484
|
|
|
|
Deferred
income taxes and other
|
5,566
|
|
5,641
|
|
|
|
|
15,310
|
|
17,902
|
|
|
|
|
|
|
|
|
|
|
|
$
131,659
|
|
$
179,969
|
|
|
|
|
|
|
|
|
Liabilities and shareholders' equity
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Accounts
payable
|
$
7,424
|
|
$
6,293
|
|
|
|
Accrued
expenses
|
7,568
|
|
7,342
|
|
|
|
Other
|
5,917
|
|
7,857
|
|
|
|
Current
liabilities of discontinued operations
|
-
|
|
683
|
|
|
|
|
20,909
|
|
22,175
|
|
|
|
|
|
|
|
|
|
Long-term
obligations
|
|
|
|
|
|
|
Long-term
debt
|
10,338
|
|
14,446
|
|
|
|
Other
long-term obligations
|
22,179
|
|
21,623
|
|
|
|
|
32,517
|
|
36,069
|
|
|
|
|
|
|
|
|
|
Shareholders' equity
|
78,233
|
|
121,725
|
|
|
|
|
|
|
|
|
|
|
|
$
131,659
|
|
$
179,969
|
|
|
|
|
|
|
|
|
SOURCE Frisch's Restaurants, Inc.