CINCINNATI, April 8, 2015 /PRNewswire/ -- Frisch's
Restaurants, Inc. (NYSE MKT: FRS) reported revenue of $47,073,000 during its fiscal 2015 third quarter
ended March 10, 2015 (consisting of
12 weeks), a 4.2 percent increase from $45,161,000 as reported in the prior year's third
quarter. Net earnings increased 43.1 percent in the third
quarter to $2,338,000 ($0.45 diluted earnings per share (EPS)) up from
$1,634,000 ($0.32 diluted EPS) in the comparable quarter last
year.
Several factors contributed to the increase in net
earnings. Operating income increased to $2,996,000, up from $1,090,000 in last year's third quarter.
Leading the way was a same store sales increase of 4.8 percent on a
0.7 percent increase in customer counts. Improvements in food costs
and payroll and related costs were also achieved during this year's
third quarter, all of which resulted in an improvement of the
restaurant operating margin to 12.1 percent compared to 7.9 percent
in the prior year. In addition, the sales of certain excess
properties were completed during the winter of 2015, which resulted
in combined gains of $1,598,000.
Partly offsetting these advancements, however, were higher
administrative costs driven principally by $1,730,000 in legal and audit costs associated
with the forensic investigation of the previously disclosed
embezzlement that was discovered in the quarter. In addition,
this year's net earnings for the third quarter benefitted from an
effective tax rate of 20.5 percent, well below 25.1 percent
year-to-date. The lower tax rate for the third quarter resulted
primarily from federal legislation that was enacted during the
quarter to retroactively reinstate certain tax benefits commonly
referred to as tax extenders.
Year-to-date revenue was $161,672,000 versus $155,614,000 in the prior year, a 3.9 percent
increase, and year-to-date net earnings grew 25.4 percent to
$7,425,000 ($1.45 diluted EPS) from $5,920,000, ($1.16
diluted EPS) in the prior year.
Craig F. Maier, President and
Chief Executive Officer, said, "Our third quarter showed strong
operating results on both the revenue and the cost side. New
menu items and good third quarter growth on the drive-thru of 11.0
percent combined with better weather conditions in 2015 drove the
revenue increase. On the cost side we are beginning to see
some relief in beef prices from their historically high levels,
which resulted in lower food cost in the quarter. Overall, we
believe our business is in a strong position as we move into our
fourth quarter."
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 95 company-owned Frisch's Big Boy
restaurants and there are an additional 26 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 summary]
Frisch's Restaurants,
Inc. and Subsidiaries
|
CONDENSED
CONSOLIDATED STATEMENT OF EARNINGS (unaudited)
|
(In thousands, except
per share data)
|
|
|
|
|
|
|
|
|
|
|
|
40 weeks
ended
|
|
12 weeks
ended
|
|
|
March 10,
|
|
March 4,
|
|
March 10,
|
|
March 4,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
Sales
|
$ 161,672
|
|
$ 155,614
|
|
$ 47,073
|
|
$ 45,161
|
Cost of
sales
|
|
|
|
|
|
|
|
|
Food and
paper
|
54,596
|
|
51,866
|
|
15,719
|
|
15,163
|
|
Payroll and
related
|
55,779
|
|
55,399
|
|
16,535
|
|
16,679
|
|
Other operating
costs
|
32,294
|
|
32,745
|
|
9,132
|
|
9,752
|
|
|
142,669
|
|
140,010
|
|
41,386
|
|
41,594
|
Restaurant operating
income
|
19,003
|
|
15,604
|
|
5,687
|
|
3,567
|
|
Administrative and
advertising
|
12,288
|
|
9,352
|
|
4,603
|
|
2,770
|
|
Franchise fees and
other revenue, net
|
(1,136)
|
|
(1,076)
|
|
(337)
|
|
(293)
|
|
(Gain) on sale of
real property
|
(3,003)
|
|
(67)
|
|
(1,598)
|
|
-
|
|
Impairment of
long-lived assets
|
653
|
|
-
|
|
23
|
|
-
|
Operating
income
|
10,201
|
|
7,395
|
|
2,996
|
|
1,090
|
|
Interest
expense
|
290
|
|
471
|
|
55
|
|
120
|
Earnings before
income taxes
|
9,911
|
|
6,924
|
|
2,941
|
|
970
|
Income
taxes
|
2,486
|
|
1,004
|
|
603
|
|
(664)
|
NET
EARNINGS
|
$ 7,425
|
|
$ 5,920
|
|
$ 2,338
|
|
$ 1,634
|
|
|
|
|
|
|
|
|
|
Earnings per share
(EPS) of common stock:
|
|
|
|
|
|
|
|
Basic net earnings
per share
|
$1.45
|
|
$1.16
|
|
$.46
|
|
$.32
|
|
Diluted net earnings
per share
|
$1.45
|
|
$1.16
|
|
$.45
|
|
$.32
|
|
Diluted average
shares outstanding
|
5,135
|
|
5,097
|
|
5,146
|
|
5,111
|
Depreciation included
above
|
$ 8,017
|
|
$ 8,160
|
|
$ 2,395
|
|
$ 2,497
|
Frisch's Restaurants,
Inc. and Subsidiaries
|
CONDENSED
CONSOLIDATED BALANCE SHEET
|
(In thousands of
dollars)
|
|
|
|
|
March 10,
|
|
June 3,
|
|
|
|
2015
|
|
2014
|
|
|
|
(unaudited)
|
|
|
Assets
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and
equivalents
|
$ 4,621
|
|
$ 1,124
|
|
|
Trade and other
receivables
|
1,886
|
|
1,900
|
|
|
Inventories
|
6,113
|
|
5,637
|
|
|
Other current
assets
|
3,766
|
|
4,653
|
|
|
|
16,386
|
|
13,314
|
|
|
|
|
|
|
|
Property and
equipment
|
102,359
|
|
104,862
|
|
|
|
|
|
|
|
Other
assets
|
|
|
|
|
|
Goodwill & other
intangible assets
|
771
|
|
773
|
|
|
Real property not
used in operations
|
6,028
|
|
6,744
|
|
|
Other
|
3,584
|
|
3,261
|
|
|
|
10,383
|
|
10,778
|
|
|
|
|
|
|
|
|
|
$ 129,128
|
|
$ 128,954
|
|
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Long-term debt,
current maturities
|
$ 822
|
|
$ 1,996
|
|
|
Accounts
payable
|
7,009
|
|
7,594
|
|
|
Accrued and other
expenses
|
9,671
|
|
9,319
|
|
|
|
17,502
|
|
18,909
|
|
|
|
|
|
|
|
Long-term
obligations
|
|
|
|
|
|
Long-term
debt
|
1,453
|
|
4,737
|
|
|
Other long-term
obligations
|
11,785
|
|
12,055
|
|
|
|
13,238
|
|
16,792
|
|
|
|
|
|
|
|
Shareholders'
equity
|
98,388
|
|
93,253
|
|
|
|
|
|
|
|
|
|
$ 129,128
|
|
$ 128,954
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/frischs-reports-third-quarter-fiscal-2015-results-300062463.html
SOURCE Frisch's Restaurants, Inc.