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| 8-K - 8-K - FRISCHS RESTAURANTS INC | d329180d8k.htm |
Exhibit 99.1
Company Contact:
Mark R. Lanning
Vice President-Finance and CFO
Frisch’s Restaurants, Inc.
2800 Gilbert Avenue
Cincinnati, OH 45206
(513) 559-5200
www.frischs.com
investor.relations@frischs.com
Frisch’s Reports Higher Sales and Earnings
In Third Quarter of Fiscal 2012
FOR IMMEDIATE RELEASE
CINCINNATI, Ohio — April 3, 2012 — Frisch’s Restaurants, Inc. (NYSE Amex: FRS) reported higher earnings and revenue for its 12-week fiscal third quarter ended March 6, 2012. Net earnings for the quarter increased 51.6 percent to $2,812,720 compared to $1,855,319 last year, as a result of increased sales, improved margins and a lower effective tax rate. Diluted net earnings per share increased 54.1 percent to $0.57 per share, from $0.37 per share last year.
Revenue increased 1.4 percent to $68,406,274 from $67,490,452 in last year’s third quarter. However, negatively affecting the revenue comparison is the closure of six underperforming Golden Corral units on August 23, 2011. Excluding the impact of these closures, revenue increased 5.5 percent in the quarter on solid growth in the Golden Corral segment. In our Big Boy segment, same store sales were up 1.7 percent in the quarter while overall sales increased 2.5 percent as a result of new store openings. Same store sales in our Golden Corral segment increased 12.4 percent in the quarter. Year-to-date revenue was $230,876,216 versus $231,067,733 in the prior year. Excluding the impact of the Golden Corral closures, year-to-date revenue grew 2.8 percent over the same period in fiscal 2011.
Craig F. Maier, President and Chief Executive Officer, commented on the results, “We experienced a strong quarter as a result of mild winter weather combined with the national marketing campaigns of Golden Corral. Our gross profit margins continue to suffer from higher food costs, especially for beef. However despite rising gasoline prices, we remain cautiously optimistic for the remainder of fiscal 2012 as we introduce several new products in our Big Boy concept including a new burger that targets the growing popularity of gourmet burgers.”
The company opened one new Big Boy restaurant in July in our first quarter and a second restaurant in October in our second quarter. Frisch’s currently operates 95 company-owned Big Boy restaurants and there are an additional 25 franchised Big Boy restaurants operated by licensees. The company also operates 29 Golden Corral restaurants.
[See attached Financial Statements]
Frisch’s Restaurants, Inc. is a regional company that operates full service family-style restaurants under the name “Frisch’s Big Boy.” The company also operates grill buffet style restaurants under the name “Golden Corral” pursuant to certain licensing agreements. All Big Boy restaurants are currently located in various regions of Ohio, Kentucky and Indiana. Golden Corral restaurants currently operate primarily in the greater metropolitan areas of Cincinnati, Cleveland, Columbus, Dayton and Toledo, Ohio; Louisville, Kentucky and Pittsburgh, Pennsylvania.
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.
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 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.
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Frisch’s Restaurants, Inc. and Subsidiaries
CONSOLIDATED STATEMENT OF EARNINGS (unaudited)
(In thousands, except per share data)
| Forty weeks ended | Twelve weeks ended | |||||||||||||||
| March 6, | March 8, | March 6, | March 8, | |||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| Sales |
$ | 230,876 | $ | 231,068 | $ | 68,406 | $ | 67,490 | ||||||||
| Cost of sales |
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| Food and paper |
81,323 | 79,608 | 24,100 | 23,528 | ||||||||||||
| Payroll and related |
76,921 | 77,224 | 22,761 | 22,842 | ||||||||||||
| Other operating costs |
51,164 | 51,553 | 14,288 | 14,756 | ||||||||||||
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| 209,408 | 208,385 | 61,149 | 61,126 | |||||||||||||
| Gross profit |
21,468 | 22,683 | 7,257 | 6,364 | ||||||||||||
| Administrative and advertising |
13,301 | 12,488 | 3,816 | 3,682 | ||||||||||||
| Franchise fees and other revenue |
(994 | ) | (1,005 | ) | (300 | ) | (309 | ) | ||||||||
| (Gain) loss on sale of assets |
(178 | ) | — | (178 | ) | — | ||||||||||
| Impairment of long-lived assets |
4,422 | — | 422 | — | ||||||||||||
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| Operating profit |
4,917 | 11,200 | 3,497 | 2,991 | ||||||||||||
| Interest expense |
1,136 | 1,227 | 328 | 378 | ||||||||||||
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| Earnings before income tax |
3,781 | 9,973 | 3,169 | 2,613 | ||||||||||||
| Income taxes |
454 | 2,892 | 356 | 758 | ||||||||||||
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| NET EARNINGS |
$ | 3,327 | $ | 7,081 | $ | 2,813 | $ | 1,855 | ||||||||
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| Earnings per share (EPS) of common stock: |
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| Basic net earnings per share |
$ | .67 | $ | 1.40 | $ | .57 | $ | .37 | ||||||||
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| Diluted net earnings per share |
$ | .67 | $ | 1.39 | $ | .57 | $ | .37 | ||||||||
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| Diluted average shares outstanding |
4,942 | 5,104 | 4,948 | 5,056 | ||||||||||||
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| Depreciation included above |
$ | 11,593 | $ | 11,925 | $ | 3,480 | $ | 3,638 | ||||||||
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| Opening expense included above |
$ | 398 | $ | 982 | $ | — | $ | 66 | ||||||||
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Frisch’s Restaurants, Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEET
(In thousands of dollars)
| March 6, 2012 (unaudited) |
May 31, 2011 |
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| Assets |
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| Current assets |
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| Cash and equivalents |
$ | 5,183 | $ | 2,449 | ||||
| Receivables |
2,099 | 1,997 | ||||||
| Inventories |
6,813 | 5,717 | ||||||
| Other current assets |
4,111 | 4,697 | ||||||
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| 18,206 | 14,860 | |||||||
| Property and equipment |
159,183 | 172,922 | ||||||
| Other assets |
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| Goodwill & other intangible assets |
1,121 | 1,237 | ||||||
| Property held for sale and land investments |
11,618 | 3,845 | ||||||
| Deferred income taxes and other |
2,510 | 2,410 | ||||||
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| 15,249 | 7,492 | |||||||
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| $ | 192,638 | $ | 195,274 | |||||
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| Liabilities and shareholders’ equity |
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| Current liabilities |
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| Accounts payable |
$ | 11,133 | $ | 10,216 | ||||
| Accrued expenses |
9,798 | 10,083 | ||||||
| Other |
8,509 | 8,801 | ||||||
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| 29,440 | 29,100 | |||||||
| Long-term obligations |
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| Long-term debt |
17,627 | 22,573 | ||||||
| Other long-term obligations |
18,183 | 18,073 | ||||||
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| 35,810 | 40,646 | |||||||
| Shareholders’ equity |
127,388 | 125,528 | ||||||
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| $ | 192,638 | $ | 195,274 | |||||
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