Back to GetFilings.com
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
FORM 10-Q
|X| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the period ended March 27, 2004
or
|_| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE OF 1934
For the transition period from____________________to____________________
Commission File Number I-6836
Flanigan's Enterprises, Inc.
(Exact name of registrant as specified in its charter)
Florida 59-0877638
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
5059 N.E. 18th Avenue, Fort Lauderdale, Florida 33334
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code, (954)-377-1961
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934
during the preceding 12 months and (2) has been the subject to such filing
requirements for the past 90 days.
Yes |X| No |_|
Indicate the number of shares outstanding of each of the issuers classes of
Common Stock as of the latest practicable date 1,925,695 as of May 10, 2004.
1
FLANIGAN'S ENTERPRISES, INC. AND SUBSIDIARIES
INDEX TO FORM 10-Q
MARCH 27, 2004
PART I. FINANCIAL INFORMATION
1. UNAUDITED CONDENSED FINANCIAL STATEMENTS
Consolidated Summary of Earnings -- For the Thirteen and Twenty Six
Weeks ended March 27, 2004 and March 29, 2003.
Consolidated Balance Sheets -- As of March 27, 2004 and September
27, 2003.
Consolidated Statements of Cash Flows for the Twenty Six weeks ended
March 27, 2004 and March 29, 2003.
Notes to Consolidated Financial Statements
2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS.
3. QUANTATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
4. CONTROLS AND PROCEDURES
PART II. OTHER INFORMATION AND SIGNATURES
6. Exhibits and Reports on Form 8-K
(a) Exhibits
(b) Reports on Form 8-K
2
FLANIGAN'S ENTERPRISES, INC.
UNAUDITED CONSOLIDATED SUMMARY OF EARNINGS
(In Thousands Except Per Share Amounts)
Thirteen Weeks Twenty Six Weeks
Ended Ended
Mar. 27 Mar. 29 Mar. 27 Mar. 29
2004 2003 2004 2003
------- ------- ------- -------
REVENUES:
Restaurant food sales $ 7,262 $ 6,202 $13,235 $11,134
Restaurant bar sales 1,747 1,653 3,186 2,945
Package good sales 2,957 2,683 5,758 5,363
Franchise related revenues 295 162 614 400
Owner's fee 38 67 92 135
Other operating income 2 78 43 165
------- ------- ------- -------
12,301 10,845 22,928 20,142
------- ------- ------- -------
COSTS AND EXPENSES:
Cost of merchandise sold:
Restaurant and lounges 3,158 2,677 5,750 4,813
Package goods 2,121 2,034 4,135 3,986
Payroll and related costs 3,443 2,888 6,274 5,457
Occupancy costs 716 545 1,303 975
Selling, general and
administrative expenses 2,481 1,995 4,732 3,370
------ ------ ------ ------
11,919 10,139 22,194 18,601
------ ------ ------ ------
Income from operations 382 706 734 1,541
------ ------ ------ ------
OTHER INCOME (EXPENSE):
Interest expense (33) (43) (61) (74)
Minority interest in earnings of
consolidated joint (53) (152) (99) (464)
Interest income 25 10 31 19
Joint venture income 4 5 4 22
Other 3 23 18 120
---- ---- ---- ----
(54) (157) (107) (377)
Income before Provision for Income
Taxes 328 549 627 1,164
3
FLANIGAN'S ENTERPRISES, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED SUMMARY OF EARNINGS
(In Thousands Except Per Share Amounts)
(Continued)
Thirteen Weeks Twenty Six Weeks
Ended Ended
Mar. 27 Mar. 29 Mar. 27 Mar. 29
2004 2003 2004 2003
------- ------- ------- -------
PROVISION FOR INCOME TAXES $ 76 $127 $144 $268
---- ---- ---- ----
Net Income $252 $422 $483 $896
==== ==== ==== ====
For The Thirteen Weeks Ended
Mar. 27, 2004 Mar. 29, 2003
Numerator Denominator EPS Numerator Denominator EPS
---------- --------- ---- --------- --------- ----
Basic EPS $ 252,000 1,927,893 $.13 $ 422,000 1,926,470 $.22
Effective/ dilutive
Stock Options 32,149 35,412
----------------------------------------------------------------------
Diluted EPS $ 252,000 1,960,042 $.13 $ 422,000 1,961,882 $.22
- -------------------------------------------------------------------------------------------
For The Twenty Six Weeks Ended
Mar. 27, 2004 Mar. 29, 2003
Numerator Denominator EPS Numerator Denominator EPS
---------- --------- ---- --------- --------- ----
Basic EPS $ 483,000 1,927,181 $.25 $ 896,000 1,926,470 $.47
Effective/dilutive
Stock Options 33,534 33,130
------------------------------------------------------------------====
Diluted EPS $ 483,000 1,960,715 $.25 $ 896,000 1,959,600 $.46
The accompanying notes to consolidated financial statements are an integral part
of these statements.
4
FLANIGAN'S ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In Thousands)
MARCH 27, 2004 (UNAUDITED) AND SEPTEMBER 27, 2003
ASSETS
MARCH 27 SEPTEMBER 27
2004 2003
------- -------
Current Assets:
Cash and cash equivalents $ 2,888 $ 1,587
Investments:
Certificate of deposit -- 354
Marketable securities 388 185
Notes and mortgages receivable,
current maturities, net 22 23
Due from franchisees 17 16
Other receivables 387 361
Inventories 1,631 1,362
Refundable deposit, major supplier -- 77
Prepaid expenses 782 718
Prepaid income taxes 151 163
Deferred tax asset 112 112
------- -------
Total Current Assets 6,378 4,958
------- -------
Property and Equipment 12,763 12,413
------- -------
Investments in Joint Ventures 139 320
------- -------
Other Assets:
Liquor licenses, net 317 347
Notes and mortgages receivable, net 139 149
Deferred tax asset 208 208
Other 676 338
------- -------
Total Other Assets 1,340 1,042
------- -------
Total Assets $20,620 $18,733
======= =======
5
FLANIGAN'S ENTERPRISES, INC, AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In Thousands)
MARCH 27, 2004 (UNAUDITED) AND SEPTEMBER 27, 2003
LIABILITIES AND STOCKHOLDER'S EQUITY
MARCH 27 SEPTEMBER 27,
2004 2003
-------- --------
Current Liabilities:
Accounts payable and accrued expenses $ 3,115 $ 2,108
Due to franchisees 696 409
Current portion of long term debt 223 278
Deferred revenues 70 70
-------- --------
Total Current Liabilities 4,104 2,865
Long Term Debt, Net of Current Maturities 1,212 1,314
-------- --------
Minority Interest in Equity of
Consolidated Joint Ventures 5,047 4,203
Commitments, Contingencies and Other Matters
Stockholder's Equity:
Common stock, $.10 par value;5,000,000 shares
authorized; 4,197,642 shares issued 420 420
Capital in excess of par value 6,103 6,103
Retained earnings 9,017 9,115
Accumulated other comprehensive income 57 26
Treasury stock, at cost,2,271,947 and
2,271,172 shares (5,340) (5,313)
-------- --------
Total stockholders' equity 10,258 10,351
-------- --------
Total liabilities and stockholders' equity $ 20,620 $ 18,733
======== ========
See notes to consolidated financial statements.
6
FLANIGAN'S ENTERPRISES, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE TWENTY SIX WEEKS ENDED MARCH 27, 2004 AND MARCH 29, 2003
(In Thousands)
MARCH 27 MARCH 29
2004 2003
------- -------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 483 $ 896
Adjustments to reconcile net income
to net cash and cash equivalents provided
by operating activities:
Depreciation and amortization 718 640
Minority interest in earnings of
consolidated joint venture 99 590
Recognition of deferred income
other deferred income -- (3)
Joint venture income -- (22)
Changes in assets and liabilities:
(Increase) decrease in:
Due from franchises 180 26
Other receivables (15) 609
Inventories (269) (84)
Prepaid expenses (52) (221)
Refundable Deposit, major supplier 77 (230)
Other assets (338) 318
Increase (decrease) in:
Accounts payable and accrued expenses 1,006 935
Due to franchises 287 136
------- -------
Net cash, and cash equivalents
provided by operating activities 2,176 3,590
------- -------
(continued)
7
FLANIGAN'S ENTERPRISES, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE TWENTY SIX WEEKS ENDED MARCH 27, 2004 AND MARCH 29, 2003
(In Thousands)
MARCH 27 MARCH 29
2004 2003
------- -------
CASH FLOWS FROM INVESTING ACTIVITIES:
Collections on notes and mortgages
receivable 11 39
Purchase of property and equipment (1,038) (1,744)
Proceeds from certificate of deposit redemption 354 --
Investment in marketable securities (172) (149)
Distributions from unconsolidated joint ventures -- 15
Net Cash and cash equivalents
used in investing activities (100) (1,812)
------- -------
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on long term debt (157) (207)
Dividends paid (581) (520)
Purchase of treasury stock (68) --
Proceeds from exercise stock options 31 --
Distribution to joint venture
minority partners (580) (1,122)
Proceeds from joint venture interest 1,325 1,149
------- -------
Net cash and cash equivalents
used in financing activities (775) (727)
------- -------
NET INCREASE IN CASH AND
CASH EQUIVALENTS 1,301 1,051
CASH AND CASH EQUIVALENTS, BEGINNING
OF PERIOD 1,587 1,143
------- -------
CASH AND CASH EQUIVALENTS,
END OF PERIOD $ 2,888 $ 2,194
======= =======
8
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
MARCH 27, 2004
(1) BASIS OF PRESENTATION:
The financial information for the periods ended March 27, 2004, and March
29, 2003 are unaudited. Financial information as of September 27, 2003 has been
derived from the audited financial statements of the Company, but does not
include all disclosures required by generally accepted accounting principles. In
the opinion of management, all adjustments, consisting of normal recurring
adjustments, necessary for a fair presentation of the financial information for
the periods indicated have been included. For further information regarding the
Company's accounting policies, refer to the Consolidated Financial Statements
and related notes included in the Company's Annual Report on Form 10- K for the
year ended September 27, 2003. Operating results for interim periods are not
necessarily indicative of results to be expected for a full year.
(2) EARNINGS PER SHARE:
Statements of Financial Accounting Standards ("SFAS") No. 128, Earnings
per share establishes standards for computing and presenting earnings per share
("EPS"). This statement requires the presentation of basic and diluted EPS. The
data on Page 4 shows the amounts used in computing earnings per share and the
effects on income and the weighted average number of shares of potentially
dilutive common stock equivalents.
(3) RECLASSIFICATION:
Certain amounts in the fiscal 2003 financial statements have been
reclassified to conform to the fiscal 2004 presentation.
(4) FRANCHISE PROGRAM:
The Company allows certain stores to operate pursuant to a franchise
agreement under which a franchisee operates a restaurant under the "Flanigan's
Seafood Bar and Grill" servicemark pursuant to a license from the Company. The
franchise agreement provides the Company with the ability to maintain a high
level of food quality and service at its franchised restaurants, which are
essential to a successful franchise operation. A franchisee is required to
execute a franchise agreement for the balance of the term of its lease for the
business premises, extended by the franchisee's continued occupancy of the
business premises thereafter, whether by lease or ownership. The franchise
agreement provides for a royalty to the Company in an amount of approximately 3%
of gross sales, plus a contribution to advertising in an amount of between
1-1/2% to 3% of gross sales.
All existing franchisees who operate restaurants under the "Flanigan's
Seafood Bar and Grill' or other authorized service marks have executed franchise
agreements.
9
(5) INVESTMENT IN JOINT VENTURES:
The Company has determined that all but one joint venture discussed below
should be consolidated by virtue of control as evidenced by general partnership
interests held by the Company. As a result, the accompanying consolidated
financial statements reflect the joint ventures in which they have a general
partnership interest on a consolidated basis. The remaining joint venture in
which the Company does not have control has been accounted for utilizing the
equity method.
Beginning with the limited partnership which owns the restaurant in
Kendall, Florida and for all limited partnerships formed subsequent thereto for
the purpose of owning and operating a restaurant under the "Flanigan's Seafood
Bar and Grill" servicemark, a standard financial arrangement has been used in
each limited partnership agreement. Under this financial arrangement, until the
limited partnership has received an aggregate sum equal to the initial
investment of all limited partners from the net profit from the operation of the
restaurant, the limited partnership receives an aggregate sum equal to 25% of
the initial investment of all limited partners first each year, with any
additional net profit divided equally between the Company, as manager of the
restaurant, and the limited partnership. Once the limited partnership has
received an aggregate sum equal to the initial investment of all limited
partners from the net profit from the operation of the restaurant, the net
profit is divided equally between the Company, as manager of the restaurant, and
the limited partnership. As of March 27, 2004, only the limited partnership
which owns the restaurant in Kendall, Florida has received an aggregate sum
equal to the initial investment of all limited partners from the net profit from
the operation of the restaurant and the Company receives one-half of the net
profit as manager of the restaurant. The Company plans to continue forming
limited partnerships to raise funds to own and operate restaurants under the
"Flanigan's Seafood Bar and Grill" servicemark using the same financial
arrangement.
Miami, Florida
The Company operated a restaurant in Miami, Florida under the "Flanigan's
Seafood Bar and Grill" servicemark pursuant to a limited partnership agreement
through the end of the second quarter of fiscal year 2002. The Company acts as
the general partner and owned a fifty percent limited partnership interest. The
State of Florida, Department of Transportation, ("DOT"), exercised its right of
eminent domain to `take' the hotel property upon which this restaurant was
located. During fiscal year 2002, the Company, as general partner of the limited
partnership, settled its apportionment claim against the hotel owner for
$700,000, which settlement resulted in a gain from disposition of approximately
$459,000 to the Company during the fiscal year ended September 28, 2002. During
fiscal year 2003, the limited partnership settled all claims for additional
compensation from the DOT for $27,000 and is still pursuing a claim for $10,000
as reimbursement of expenses incurred by the limited partnership during the
eminent domain proceedings. The additional compensation from the DOT belongs
solely to the Company, as will the anticipated reimbursement of expenses. The
unrelated joint venture partner received $350,000 in full settlement of its
interest and the Company controls 100% of the partnership as of December 27,
2003.
10
During the third quarter of fiscal year 2003, the Company, as general
partner of the limited partnership, entered into a Sale of Business Agreement
for the purchase of an existing restaurant in Pinecrest, Florida, which
transaction closed during the first quarter of fiscal year 2004. The purchase
price of approximately $340,000 related to the acquisition of a below market
lease and will therefore be recognized as additional lease expense over the
remaining life of the lease once operation of the restaurant commences. As of
March 27, 2004, the $340,000 is included in the accompanying balance sheet in
other assets. The Company agreed to unconditionally guaranty the lease for the
business premises in order to procure the consent of the landlord to the
assignment of the lease. During the second quarter of fiscal year 2004 and after
removing the interior finishes in anticipation of completing its building plans
for the renovation of the business premises, the Company found numerous,
substantial structural deficiencies which must be rectified prior to any
renovations being made. Subsequent to the end of the second quarter of fiscal
year 2004, the Company, as general partner of the limited partnership, and the
landlord agreed upon the structural repairs required and to equally share the
cost thereof in order to minimize further delay to the renovation of the
business premises. The limited partnership still intends to raise funds through
a private offering to renovate the restaurant once the renovation costs have
been determined. The Company continues to act as general partner and will also
be the owner of up to a thirty three and one-third percent limited partnership
interest. It is anticipated that the renovated restaurant will be open for
business by the end of the first quarter of fiscal 2005.
Fort Lauderdale, Florida
A related third party acts as general partner of a limited partnership
which owns and operates a franchised restaurant in Fort Lauderdale, Florida
under the "Flanigan's Seafood Bar and Grill" servicemark. The Company is a
twenty five percent owner of the limited partnership as are other related
parties, including, but not limited to officers and directors of the Company and
their families. This joint venture is not consolidated on the accompanying
consolidated financial statements of the Company.
Surfside, Florida
The Company acts as general partner of a limited partnership which owns
and operates a restaurant in Surfside, Florida under the "Flanigan's Seafood Bar
and Grill" servicemark. The Company is also a forty two percent owner of the
limited partnership as are other related parties, including, but not limited to
officers and directors of the Company and their families. This restaurant opened
for business in the second quarter of fiscal year 1998.
11
Kendall, Florida
The Company acts as general partner of a limited partnership which owns
and operates a restaurant in Kendall, Florida under the "Flanigan's Seafood Bar
and Grill" servicemark. The Company is also a forty percent owner of the limited
partnership as are other related parties, including but not limited to officers
and directors of the Company and their families. As of April 1, 2003, the
limited partners had received distributions from the limited partnership equal
to their original investment and pursuant to the limited partnership agreement,
the Company thereafter receives fifty percent of the net profit from the
operation of the restaurant as a management fee. This restaurant opened for
business on April 9, 2000.
West Miami, Florida
The Company acts as general partner of a limited partnership which owns
and operates a restaurant in West Miami, Florida under the "Flanigan's Seafood
Bar and Grill" servicemark. The Company is also a twenty five percent owner of
the limited partnership as are other related parties, including, but not limited
to officers and directors of the Company and their families. This restaurant
opened for business on October 11, 2001.
Weston, Florida
During the fourth quarter of fiscal year 2002, the Company, as general
partner of a limited partnership, began raising funds to renovate the business
premises of an existing restaurant in Weston, Florida for operation as a
"Flanigan's Seafood Bar and Grill" restaurant. The Company is also the owner of
twenty eight percent of the limited partnership, as are other related parties,
including but not limited to officers and directors of the Company and their
families. The restaurant, which had operated under its existing servicemark, was
closed on July 13, 2002 and building permits were issued to the limited
partnership at the start of fiscal year 2003. The restaurant opened for business
on January 20, 2003.
Stuart, Florida
During the third quarter of fiscal year 2003, a limited partnership was
formed with the Company as general partner, which limited partnership entered
into a lease agreement to own and operate a restaurant in a Howard Johnson's
Hotel in Stuart, Florida. During the first quarter of fiscal year 2004, the
limited partnership completed its private offering, raising the sum of
$1,500,000 to renovate the business premises for operation as a "Flanigan's
Seafood Bar and Grill" restaurant. The Company continues to act as general
partner and is also the owner of a twelve percent limited partnership interest,
as are other related parties, including but not limited to officers and
directors of the Company and their families. The restaurant opened for business
on January 11, 2004.
12
(6) INCOME TAXES:
Financial Accounting Standards Board Statement No. 109, Accounting for
Income Taxes, requires among other things, recognition of future tax benefits
measured at enacted rates attributable to deductible temporary differences
between financial statement and income tax basis of assets and liabilities and
to tax net operating loss carryforwards and tax credits to the extent that
realization of said tax benefits is more likely than not. The deferred tax asset
was $320,000 as of March 27, 2004 and September 27, 2003.
(7) COMMITMENTS AND CONTINGENCIES:
Guarantees
The Company guarantees various leases for franchisees, limited
partnerships and locations sold in prior years. Remaining rental commitments
required under these leases are approximately $3,000,000. In the event of a
default under any of these agreements, the Company will have the right to
repossess the premises and operate the business to recover amounts paid under
the guarantee either by liquidating assets or operating the business.
Litigation
The Company is a party to various litigation matters incidental to its
business. Certain claims, suits and complaints arising in the ordinary course of
business have been filed or are pending against the Company.
Certain states have "liquor liability" laws which allow a person injured
by an "intoxicated person" to bring a civil suit against the business (or social
host) who served intoxicating liquors to an already "obviously intoxicated
person", know as "dram shop" claims. Florida has restricted its dram shop claims
by statute, permitting persons injured by an "obviously intoxicated person" to
bring court action only against the business which had served alcoholic
beverages to a minor or to an individual known to be habitually addicted to
alcohol. The Company is generally self-insured for liability claims, with major
losses partially covered by third-party insurance carriers. The extent of this
coverage varies by year. The Company currently has no dram shop cases pending.
For further discussion see the section headed Legal Proceedings on page 16 of
the Company's Annual Report on Form 10-K for the fiscal year ended September 27,
2003. The Company accrues for potential uninsured losses based upon estimates
received from legal counsel and its historical experience, when uninsured claims
are pending. Such accrual is included in the "Accounts payable and accrued
expenses". See Note 6 in the Company's Annual Report on Form 10-K for the fiscal
year ended September 27, 2003.
During fiscal year 2000, the Company was served with several complaints
alleging violations of the American with Disabilities Act ("ADA"), at all of its
locations. The ADA has no notice provision and the first time the Company
received notice of any ADA violations was when it was served with a copy of the
complaint. Of the lawsuits filed, only a few have been actively pursued. The
Company retained an ADA expert who has inspected locations involved in the
active lawsuits, including the limited partnerships and franchises, and provided
a report
13
setting forth ADA violations which need to be corrected. The Company corrected
ADA violations noted by its ADA expert and then vigorously defended the lawsuits
arguing that the locations are in compliance. During fiscal year 2001 and fiscal
year 2002, the Company, including three (3) of its franchises, settled all
active lawsuits alleging ADA violations.
During fiscal year 2003, the Company was served with a complaint alleging
violations of the ADA at one of its locations. The Company corrected all
violations noted in the complaint and is arguing that the location is in
compliance.
During fiscal year 2003, the Company, as general partner of one of its
limited partnerships, and one of its franchisees, received notifications
alleging their failure to complete correcting ADA violations pursuant to their
respective settlement agreements from previous lawsuits alleging ADA violations.
The Company, as general partner of the limited partnership, and the franchisee
corrected any uncorrected ADA violations and are arguing that the locations are
in compliance with their respective settlement agreements.
(8) INVESTMENTS:
Investments in equity securities that have readily determinable fair
values are classified and accounted for as available-for-sale.
Available-for-sale securities are carried at fair value with unrealized gains
and losses recorded as a separate component of accumulated other comprehensive
income. Realized gains and losses are calculated based on the specific
identification method and recorded in "other income" on the income statement. At
March 27, 2004, the fair market value was $388,000, which exceeded a cost of
$331,000 and resulted in an unrealized gain of $57,000.
(9) CORPORATE REORGANIZATION:
On November 4, 1985, the Company not including any of its subsidiaries,
filed a Voluntary Petition in the United States Bankruptcy Court for the
Southern District of Florida seeking to reorganize under Chapter 11 of the
Federal Bankruptcy Code. The Company's action was a result of significant
escalations of rent on certain of the Company's leases which made continued
profitable operations at those locations impossible and jeopardized the
Company's financial position. The major purpose of the reorganization was to
reject such leases. In addition, the Company also sought its release from lease
agreements for businesses sold, which sales included the assignment of the lease
for the business premises. On April 13, 1987, the Company's Amended Plan of
Reorganization was confirmed and the Bankruptcy Court entered its Order of
Confirmation on May 5, 1987. The effective date of the Amended Plan or
Reorganization was June 30, 1987 and the Bankruptcy Court ratified the initial
disbursements made by the Disbursing Agent by its Order dated December 21, 1987
and entered its Order of Discharge of the Company of December 28, 1987.
During fiscal year 1991 and again during fiscal year 1992, the Company and
Class 6 and Class 8 Creditors under the Company's Amended Plan of Reorganization
modified the schedule for the payment of bankruptcy damages, reducing the amount
of the quarterly payments by extending the term of the same, but without
reducing the total amount of bankruptcy damages, which
14
modifications provided the Company with needed capital. During the third quarter
of fiscal year 2002, the remaining liabilities under the Amended Plan of
Reorganization were paid in full.
II MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS:
The Company owns and /or operates full service restaurants, package liquor
stores and an entertainment oriented club (collectively the "units"). At March
27, 2004, the Company operated 18 units and had equity interests in seven units
which have been franchised by the Company. The table below sets out the changes,
if any, in the type and number of units being operated.
Mar. 27, Sept.27, Mar. 29, Note
2004 2003 2003 Number
-------- -------- -------- ------
Types of Units
- --------------------------------------------------------------------------------
Company owned:
Combination package
and restaurant 4 4 4
Restaurant only 2 2 2
Package store only 5 4 4 (2)(3)
Company Managed
Restaurants Only:
Limited Partnerships 5 4 4 (4)(5)(6)
Company Owned Club: 1 1 1
Total Company
Owned/Operated Units 18 16 16
Franchised Units 7 7 7 (1)
Notes:
(1) Since the fourth quarter of 1999, the Company has managed the restaurant
for a franchisee. The franchised restaurant is included in the table of
units as a restaurant operated by the Company and the franchise is also
included as a unit franchised by the Company and in which the Company has
an interest.
(2) During the fourth quarter of fiscal year 2001, the Company entered into a
ground lease for an out parcel in Hollywood, Florida. The Company has
constructed a building on the out parcel, one-half (1/2) of which is being
used by the Company for the operation of a package liquor store and the
other one-half (1/2) of which has been subleased by the Company as retail
space. The package store opened for business on November 17, 2003.
15
(3) During the second quarter of fiscal year 2001, the Company completed
renovations to its new corporate offices and relocated to the same. The
new corporate offices consist of a two (2) story building, with space set
aside on the ground floor for a package liquor store. The Company filed an
application for its building permits during the third quarter of fiscal
year 2002, but is still involved in litigation with the adjacent shopping
center over the Company's right to non-exclusive parking in the shopping
center. The construction of the package liquor store has been postponed
until the litigation is concluded, which should occur during fiscal year
2004. This package liquor store is not included in the table of units.
(4) During the first quarter of fiscal year 2002, the State of Florida,
Department of Transportation, ("DOT"), exercised its right of eminent
domain to `take' title to the hotel property upon which a restaurant
operated by the Company as general partner of a limited partnership was
located. The restaurant closed at the end of business on March 30, 2002
and is not included in the table of units.
During the third quarter of fiscal year 2003, the Company, as general
partner of the limited partnership, entered into a Sale of Business
Agreement for the purchase of an existing restaurant in Pinecrest,
Florida, which transaction closed during the first quarter of fiscal year
2004. During the second quarter of fiscal year 2004 and after removing the
interior finishes, the Company found numerous, substantial structural
deficiencies in the business premises, which must be rectified prior to
any renovations being made. Subsequent to the end of the second quarter of
fiscal year 2004, the Company, as general partner of the limited
partnership and the landlord agreed upon the structural repairs to be made
to the business premises and to equally share the cost thereof. The
limited partnership still intends to raise funds through a private
offering to renovate the restaurant. The Company continues to act as
general partner and will also be the owner of up to a thirty three and
one-third percent limited partnership interest. It is anticipated that the
renovated restaurant will be open for business by the end of the first
quarter of fiscal year 2005 and is not included in the table of units.
(5) During the fourth quarter of fiscal year 2001, a limited partnership was
formed with the Company as general partner, which limited partnership
entered into a sublease agreement to own and operate an existing
restaurant in Weston, Florida. During the fourth quarter of fiscal year
2002, the limited partnership raised funds to renovate the business
premises for operation as a "Flanigan's Seafood Bar and Grill" restaurant.
The Company continues to act as general partner and has a 28 percent
ownership interest in the limited partnership. The restaurant opened for
business on January 20, 2003.
(6) During the third quarter of fiscal year 2003, a limited partnership was
formed with the Company as general partner, which limited partnership
entered into a lease agreement to own and operate a restaurant in a Howard
Johnson's Hotel in Stuart, Florida. During the first quarter of fiscal
year 2004, the limited partnership raised funds through a private offering
to renovate the business premises for operation as a "Flanigan's Seafood
Bar and Grill" restaurant. The Company continues to act as general partner
and also has a twelve percent ownership interest in the limited
partnership. The restaurant opened for business on January 11, 2004.
16
Liquidity and Capital Resources
Cash Flows
The following table is a summary of the Company's cash flows for the
twenty six weeks of fiscal years 2004 and 2003.
Twenty Six Weeks Ended
Mar. 27 Mar. 29
2004 2003
-----------------------
(In Thousands)
Net cash provided by
operating activities $ 2,176 $ 3,590
Net cash used in
investing activities (845) (1,839)
Net cash used in
financing activities (30) (700)
------- -------
Net Increase in Cash
and Cash Equivalents 1,301 1,051
Cash and Cash Equivalents, Beginning 1,587 1,143
------- -------
Cash and Cash Equivalents, Ending $ 2,888 $ 2,194
======= =======
On December 18, 2003 the Company declared a cash dividend of 30 cents per
share payable on January 15, 2004 to shareholders of record on December 30,
2003.
On December 19, 2002, the Company declared a cash dividend of 27 cents per
share payable on January 30, 2003 to shareholders of record on January 13, 2003.
On December 13, 2001, the Company declared a cash dividend of 25 cents per
share payable on January 17, 2002 to shareholders of record on December 30,
2001.
Capital Expenditures
The Company had additions to fixed assets of $1,038,000 during the twenty
six weeks ended March 27, 2004 as compared to $1,744,000 for the twenty six
weeks ended March 29, 2003 and $ 3,028,000 for the fiscal year ended September
27, 2003. The additions to fixed assets during the twenty six weeks ended March
27, 2004 included the renovations to the
17
business premises of the restaurant in Stuart, Florida; the addition to fixed
assets during the twenty six weeks ended March 29, 2003 included the renovations
to the restaurant in Weston, Florida; and the addition to fixed assets for the
fiscal year ended September 27, 2003 included the renovations to the restaurant
in Weston, Florida and the construction of the building in Hollywood, Florida,
one half (1/2) of which is used by the Company for the operation of a package
liquor store and the other one half (1/2) of which as been subleased by the
Company as retail space.
All of the Company's units require periodic refurbishing in order to
remain competitive. During the fiscal year 1992, as cash flow improved, the
Company embarked on a refurbishing program which continues through fiscal year
2004. The budget for fiscal year 2004 is $350,000. The Company expects the funds
for these improvements to be provided from operations. In addition, during the
first quarter of fiscal year 2004, the limited partnership which owns the
restaurant in Stuart, Florida completed it private offering, raising the sum of
$1,500,000 towards capital expenditures for fiscal year 2004. It is anticipated
that a joint venture will require approximately $2,500,000 in capital
expenditures, the majority of which will be raised through a private offering by
the limited partnership.
Working Capital
The table below summarizes the current assets, current liabilities, and
working capital for the fiscal quarters ended March 27, 2004, and March 29, 2003
and the fiscal year ended September 27, 2003.
Mar. 27, Mar. 29, Sept. 27,
Item 2004 2003 2003
---- ------ ------ ------
(In Thousands)
Current Assets $6,378 $6,424 $4,958
Current Liabilities 4,104 3,409 2,865
------ ------ ------
Working Capital 2,274 3,015 2,093
During the fourth quarter of fiscal year 2002, the Company closed on a
$456,000 loan from Bank Atlantic, which loan was used to prepay a Company loan.
The promissory note earns interest at prime rate per annum and is fully
amortized over 19 months with equal monthly payments of principal and interest
each in the amount of $19,021, commencing August 3, 2002. The promissory note is
unsecured and may be prepaid in whole or in part at any time, without penalty,
with any prepayments applying against the payments last due on the promissory
note.
During the fourth quarter of fiscal year 2001, the Company borrowed the
sum of $895,000 from the Bank of America, d/b/a Nations Bank. The promissory
note earns interest at the rate of 8.62% per annum, amortized over 20 years with
principal and interest payable monthly, with the entire unpaid principal balance
and all accrued interest due on August 1, 2008. The promissory note is secured
by a mortgage on the office building purchased by the Company for its corporate
offices, which office building was released from the lien granted by the Company
to Bank of America, d/b/a Nations Bank, as collateral for the loan in January of
fiscal year 2000. In order to hedge the interest rate risk, the Company entered
into an ISDA Master Agreement with Bank of America, ("SWAP Agreement"), and in
the event the Company elects to prepay the promissory note, there may be a
prepayment penalty associated therewith.
18
Legal Matters
See "Litigation" on page 13 of this report and Item 1 and Item 3 to Part 1
of the Annual Report on Form 10-K for the fiscal year ended September 27, 2003
for a discussion of other legal proceedings resolved in prior years.
Results of Operation
Thirteen Weeks Ended
Mar. 27, Mar. 29,
2004 2003
Amount Percent Amount Percent
------------------- -------------------
(In Thousands) (In Thousands)
Restaurant food sales $ 7,262 60.68 $ 6,202 58.85
Restaurant bar sales 1,747 14.60 1,653 15.69
Package goods sales 2,957 24.72 2,683 25.46
------- ------ ------- ------
Total sales $11,966 100.00 $10,538 100.00
Franchise related revenues 295 162
Owners fee 38 67
Other operating income 2 78
------- -------
Total Revenue $12,301 $10,845
======= =======
Twenty Six Weeks Ended
Mar. 27, Mar. 29,
2004 2003
Amount Percent Amount Percent
------------------- -------------------
(In Thousands) (In Thousands)
Restaurant food sales 13,235 59.67 $11,134 57.27
Restaurant bar sales 3,186 14.36 2,945 15.15
Package goods sales 5,758 25.97 5,363 27.58
------- ------ ------- ------
Total sales 22,179 100.00 $19,442 100.00
Franchise related revenues 614 400
Owners fee 92 135
Other operating income 43 165
------- -------
Total Revenue $22,928 $20,142
======= =======
19
Total revenues increased by 13.43% and 13.83% for the thirteen weeks and
twenty six weeks of fiscal year 2004, respectively, as compared to the total
revenues for the thirteen weeks and twenty six weeks of fiscal year 2003. The
increase for the thirteen weeks was primarily due to the restaurant in Stuart,
Florida being open for substantially the entire fiscal quarter and the package
goods store in Hollywood, Florida being open for the entire fiscal quarter. In
addition, the increase in total revenue for the twenty six weeks was also
primarily due to the restaurant in Weston, Florida being open for the first
quarter of fiscal 2004 and the opening of the package goods store in Hollywood,
Florida on November 17, 2003. Total revenues should continue to increase due to
the operation of the restaurant in Stuart, Florida and the package goods store
in Hollywood, Florida through the remainder of fiscal year 2004.
Restaurant food sales represented 60.68% and 59.67% of total sales in the
thirteen weeks and twenty six weeks of fiscal year 2004, respectively, as
compared to 58.85% and 57.27% of total sales in the thirteen weeks and twenty
six weeks of fiscal year 2003 respectively. The weekly average of same store
restaurant food sales were $396,675 and $397,962 for the twenty six weeks, ended
March 27, 2004 and March 29, 2003, respectively, a decrease of less than 1.0%.
The weekly average of same store restaurant food sales were $423,674 and
$417,338 for the thirteen weeks ended March 27, 2004 and March 29, 2003,
respectively, an increase of 1.5%. The increase for the thirteen weeks was
primarily due to the restaurant in Stuart, Florida being open for substantially
the entire fiscal quarter. In addition, the increase in restaurant food sales
for the twenty six weeks was also primarily due to the restaurant in Weston,
Florida being open for the entire first quarter of fiscal 2004. Restaurant food
sales should continue to increase due to the operation of the restaurant in
Stuart, Florida.
Restaurant bar sales represented 14.60% and 14.36% of total sales in the
thirteen weeks and twenty six weeks of fiscal year 2004, respectively, as
compared to 15.69% and 15.15% of total sales in the thirteen weeks and twenty
six weeks of fiscal year 2003, respectively. The weekly average of same store
restaurant bar sales were $96,176 and $104,436 for the twenty six weeks ended
March 27, 2004 and March 29, 2003, respectively, a decrease of 7.9%. The weekly
average of same store restaurant bar sales were $100,079 and $ 109,979 for the
thirteen weeks ended March 27, 2004 and March 29, 2003 respectively, a decrease
of 9.0%. The increase in restaurant bar sales for the thirteen weeks was
primarily due to the restaurant in Stuart, Florida being open for practically
the entire fiscal quarter. In addition, the increase in restaurant bar sales for
the twenty six weeks was also primarily due to the restaurant in Weston, Florida
being open for the entire first quarter of fiscal 2004. The decrease in the
weekly average of same store restaurant bar sales is expected to continue as the
Company's perception as a family restaurant continues to grow.
20
Package goods sales represented 24.72% and 25.97% of total sales in the
thirteen weeks and twenty six weeks of fiscal year 2004, respectively, as
compared to 25.46% and 27.58% of total sales in the thirteen weeks and twenty
six weeks of fiscal year 2003, respectively. The weekly average of same store
package goods sales were $198,336 and $192,057 for the twenty six weeks ended
March 27, 2004 and March 29, 2003, respectively, an increase of 3.3%. The weekly
average of same store package good sales were $194,245 and $188,602 for the
thirteen weeks ended March 29, 2002 and March 30, 2002 respectively, an increase
of 3.0%. Package good sales are expected to continue increasing through the
remainder of fiscal year 2004 due to the opening of the new package goods store
in Hollywood, Florida and the continued increase in the weekly average of same
store package sales.
The gross profit margin for restaurant sales was 65.95% and 65.92% for the
thirteen weeks ended March 27, 2004 and March 29, 2003, respectively. The gross
profit margin for the restaurant sales was 64.98% and 65.82% for the twenty six
weeks ended March 27, 2004 and March 29, 2003, respectively. The gross profit
margin for restaurant and bar sales were adversely effected by higher food costs
during the second quarter of fiscal year 2004 and it is anticipated that the
gross profit for restaurant and bar sales will continue to be adversely affected
by higher food costs through the remainder of fiscal year 2004. The Company has
taken steps to offset higher food costs with higher menu prices, where
competitively. Possible, and will continue to do so through the remainder of
fiscal year 2004.
The gross profit margin for package goods stores was 28.3% and 24.2% for
the thirteen weeks ended March 27, 2004 and March 29, 2003, respectively. The
gross profit margin for package good sales was 28.2% and 25.7% for the twenty
six weeks ended March 27, 2004 and March 29, 2003, respectively. The gross
profit margin for package goods sales is expected to remain constant through the
remainder of fiscal year 2004.
Franchise related revenues, which includes but is not limited to rental
income and franchise-related income such as franchise royalties, bookkeeping and
accounting fees and reimbursement of attorney's fees, were $295,000 and $162,000
for the thirteen weeks ended March 27, 2004 and March 29, 2003 respectively, a
increase of 82.1%. Franchise related revenues were $614,000 and $400,000 for the
twenty six weeks ended March 27, 2004 and March 29, 2003 respectively, an
increase of 53.5%. The increase in franchise related revenues was due primarily
to the restaurant in Weston, Florida having been open for the entire twenty six
weeks; the restaurant in Stuart, Florida having been open for substantially the
entire thirteen weeks; and the overall increase in business by the franchises
and limited partnerships.
Operating Costs and Expenses
Operating costs and expenses were $ 11,919,000 and $10,139,000 for the
thirteen weeks ended March 27, 2004 and March 29, 2003 respectively, an increase
of 17.5%. Operating costs and expenses were $22,194,000 and $18,601,000 for the
twenty six weeks ended March 27, 2004 and March 29, 2003, a increase of 19.3%.
The increase for the thirteen weeks was primarily due to the restaurant in
Stuart, Florida being open for substantially the entire fiscal quarter and the
package goods store in Hollywood, Florida being open for the entire fiscal
quarter. In addition, the increase in operating costs and expenses for the
twenty six weeks was also primarily due to the restaurant in Weston, Florida
being open for the first quarter of fiscal year 2004 and the package goods store
in Hollywood, Florida being open for one-half (1/2) of the first quarter of
fiscal year 2004. Total operating costs and expenses are expected to continue
increasing through the remainder of fiscal year 2004 due to the operation of the
restaurant in Stuart, Florida and the package goods store in Hollywood, Florida
and a general increase in overall operating costs and expenses, including but
not limited to food costs.
21
Payroll and related costs were $3,443,000 and $2,888,000 for the thirteen
weeks ended March 27, 2004 and March 29, 2003 respectively, an increase of
19.2%. Payroll and related costs were $6,274,000 and $5,457,000 for the twenty
six weeks ended March 27, 2004 and March 29, 2003, respectively, an increase of
15.0%. The increase is accounted for by the operation of the restaurant in
Stuart, Florida since January 11, 2004; the operation of the restaurant in
Weston, Florida for the entire twenty six weeks; and the operation of the new
package goods store in Hollywood, Florida since November 17, 2003. Payroll and
related costs will continue to increase through the remainder of fiscal year
2004 with the operation of the restaurant in Stuart, Florida and the package
goods store in Hollywood, Florida.
Occupancy costs which include rent, common area maintenance, repairs and
taxes were $716,000 and $545,000 for the thirteen weeks ended March 27, 2004 and
March 29, 2003 respectively, a increase of 31.38%. Occupancy costs were
$1,303,000 and $975,000 for the twenty six weeks ended March 27, 2004 and March
29, 2003, respectively, an increase of 33.64%. The increase is accounted for by
the payment of rent for the restaurant in Stuart, Florida and the full payment
of rent for the restaurant in Weston, Florida for the entire twenty six weeks,
when compared to the payment of partial rent for the restaurant in Weston,
Florida during the fiscal quarter ending December 28,, 2002, and the payment of
rent for the restaurant in Pinecrest, Florida during the second quarter of
fiscal year 2004. Occupancy costs will continue to increase through the
remainder of fiscal year 2004 with the payment of rent for the restaurants in
Stuart, Florida and Pinecrest, Florida.
Selling, general and administrative expenses were $2,481,000 and
$1,995,000 for the thirteen weeks ended March 27, 2004 and March 29, 2003,
respectively, an increase of 24.16%. Selling, general and administrative
expenses were $4,732,000 and $3,370,000 For the twenty six weeks ended March 27,
2004 and March 29, 2003 respectively, an increase of 40.42%. The increase in
selling, general and administrative expense is accounted for by the operation of
the restaurant in Weston, Florida for the entire twenty six weeks and the
operation of the restaurant in Stuart, Florida since January 11, 2004; expenses
associated with the restaurant in Pinecrest, Florida; the operation of the
package goods store in Hollywood, Florida since November 17, 2003; higher
insurance costs and an overall increase in expenses generally. In the thirteen
weeks ended March 27, 2004, the Company made a change in the estimate used to
allocate insurance expense which resulted in an additional charge to corporate
and joint venture insurance costs of approximately $180,000 with a corresponding
reduction in the allocation to franchises.
22
Trends
During the next twelve months management expects continued increases in
restaurant sales, due primarily to the opening of the restaurant in Stuart,
Florida, the anticipated opening of the restaurant in Pinecrest, Florida and
continued increases in same store restaurant sales. Package good sales are also
expected to increase due primarily to the opening of a new package goods store
in Hollywood, Florida and increases in same store package goods sales. At the
same time, management also expects higher food costs, especially the cost of
ribs, and overall expenses to increase generally. The Company has already raised
some of its menu prices to offset higher food costs and will continue to do so
wherever competitively possible.
CRITICAL ACCOUNTING POLICIES
The Company's significant accounting policies are more fully described in
Note 1 to the Company's consolidated financial statements located in Item 8 of
the Annual Report on Form 10-K. The preparation of financial statements in
conformity with accounting principles generally accepted in the United States of
America requires management to make estimates and assumptions that affect the
reported amounts of assets, liabilities, revenues, and expenses, and the related
disclosures of contingent assets and liabilities. Actual results could differ
from those estimates under different assumptions or conditions. The Company
believes that the following critical accounting policies are subject to
estimates and judgments used in the preparation of its consolidated financial
statements:
DEPRECIATION
The estimate of useful lives for tangible and intangible assets are
significant estimates. Expenditures for the leasehold improvements and equipment
when a restaurant is first constructed are material. In addition, periodic
refurbishing takes place and those expenditures can be material. Management
estimates the useful life of those assets by considering, among other things,
expected use, life of the lease on the building, and warranty period, if
applicable. The assets are then depreciated using a straight line method over
those estimated lives. These estimated lives are reviewed periodically and
adjusted if necessary. Any necessary adjustment to depreciation expense is made
in the income statement of the period in which the adjustment is determined to
be necessary.
In fiscal 2004, management reviewed the estimated useful lives for
leasehold improvements and recorded an adjustment which was not significant.
DEFERRED TAX ASSETS
Deferred tax assets result primarily from timing differences relating to
depreciation and tip credits. The calculations are reviewed periodically by
management and the estimates are adjusted as the assumptions or conditions
indicate.
23
CONSOLIDATION
At March 27, 2004, the Company operates 5 restaurants as general partner
for the limited partnership that owns the operations of these restaurants. The
Company refers to these entities as joint ventures or limited partnerships.
Additionally, the Company expects that any expansion which takes place in
opening new restaurants will also result in the Company operating the
restaurants as general partner. In addition to the general partnership interest,
the Company also purchases limited partnership units ranging from 12% to 42% of
the total units outstanding. As a result of these controlling interests, the
Company consolidates the operations of these limited partnerships with those of
the Company despite the fact the Company does not own in excess of 50% of the
equity interests. All intercompany transactions are eliminated in consolidation.
The minority interests in the earnings of these joint ventures are removed from
net income and are not included in the calculation of earnings per share.
QUANTATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The Company does hold market risk sensitive instruments for investment
purposes. The Company also recognizes market risk from interest rate exposure.
Market Risk - Investments
In the quarter ended December 28, 2002, the Company began an investment
program to accumulate funds to satisfy debt in the future. The Company made an
investment in an equity security which is subject to market risk. At its meeting
on December 19, 2003, the Board of Directors authorized the Company to make a
further investment in the same equity security as an additional accumulation of
funds to satisfy debt in the future. The additional investment in the equity
security was made during the second quarter of fiscal year 2004. To the extent
that market price declines it will have a negative impact of the value of the
investment. There is no assurance that market price will increase or decrease in
the next year.
At March 27, 2004, the Company's cash resources earn interest at variable
rates. Accordingly, the Company's return on these funds is affected by
fluctuations in interest rates. Any decrease in interest rates will have
a negative effect on the Company's earnings. In addition, the Company incurs
interest charges on debt at variable rates, which to the extent the Company has
not entered into interest rate swap agreements to hedge this risk, could
negatively impact the Company's earnings. There is no assurance that interest
rates will increase or decrease over the next fiscal year.
The Company has two debt arrangements which have variable interest rates.
For one of these instruments, which is a mortgage note, the Company has entered
into an interest rate swap agreement to hedge the interest rate risk. The other
debt instrument has an outstanding principal balance at March 27, 2004 of
$76,084. Even if interest rates increased by 10%, results of operations would be
reduced by less than $1,000, an amount management considers immaterial.
24
CONTROLS AND PROCEDURES
We maintain controls and procedures that are designed to ensure (1) that
information required to be disclosed by us in the reports we file or submit
under the Securities Exchange Act of 1934, as amended (the "Exchange Ace"), is
recorded, processed, summarized, and reported within the time periods specified
in the Securities and Exchange Commission ("SEC") rules and forms, and (2) that
this information is accumulated and communicated to our management including the
Chief Executive Officer, as appropriate, to allow timely decisions regarding
required disclosure. In designing and evaluating the disclosure controls and
procedures, management recognizes that any controls and procedures, no matter
how well designed and operated, can provide only reasonable assurance of
achieving the desired control objectives, and management necessarily was
required to apply its judgment in evaluating the cost benefit relationship of
possible controls and procedures.
In March 2004, under the supervision and review of our Chief Executive
Officer and Chief Financial Officer, we conducted an evaluation of the
effectiveness of our disclosure controls and procedures. Based on that
evaluation, our Chief Executive Officer and Chief Financial Officer have
concluded that our disclosure controls and procedures are effective in alerting
them in a timely manner to material information regarding us (including our
consolidated subsidiaries) that is required to be included in our periodic
reports to the SEC.
In addition, there have been no significant changes in our internal
controls or in other factors that could significantly affect those controls
since our March 2004 evaluation. We cannot assure you, however, that our system
of disclosure controls and procedures will always achieve its stated goals under
all future conditions, no matter how remote.
PART II, OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
a. Exhibits - None
b. Reports on Form 8-K - None
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereto duly authorized. The information furnished reflects all
adjustments to the statement of the results for the interim period.
FLANIGAN'S ENTERPRISES, INC.
-------------------------------------------
JOSEPH G. FLANIGAN, Chief Executive Officer
Date 5/11/04
------------------------------------------
JEFFREY D. KASTNER, Chief Financial Officer
Date 5/11/04
25