CINCINNATI, July 30, 2012 /PRNewswire/ -- Frisch's
Restaurants, Inc. (NYSE MKT: FRS), announced today that the Board
of Directors declared a special one-time dividend of $9.50
per share payable on September 14,
2012, to shareholders of record at the close of business on
August 31, 2012. The total
amount of the special dividend payment will be approximately
$46.9 million based on the present
number of shares outstanding and is expected to be funded from the
Company's excess cash on hand. After payment of the special
dividend, the Company expects to have sufficient cash and borrowing
capacity to execute its strategy of growing its Big Boy concept
including new stores, existing store renovations, ongoing
investments in the productivity of its food production facilities
and its recently announced share repurchase program.
Craig F. Maier, President and
Chief Executive Officer, said, "The recent sale of our Golden Corral business unit presented us with a
unique opportunity to return cash to our shareholders while
maintaining a strong capital structure that supports our future
growth. This special dividend underscores our board of
directors' commitment to deliver superior returns to our
shareholders."
About Frisch's Restaurants, Inc.
Frisch's is a regional company that operates full service
family-style restaurants under the name "Frisch's Big Boy."
All 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 Big Boy restaurants to other operators,
currently in certain parts of Ohio, Kentucky and Indiana.
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.
www.frischs.com
SOURCE Frisch's Restaurants, Inc.