2014

Frisch's Reports First Quarter Fiscal 2014 Results

CINCINNATI, Oct. 16, 2013 /PRNewswire/ -- Frisch's Restaurants, Inc. (NYSE MKT: FRS) reported revenue of $61,236,621 during its fiscal 2014 first quarter ended September 17, 2013 (consisting of 16 weeks), a one percent increase over the $60,625,296 reported in the prior year's first quarter.  Earnings from continuing operations increased 99.6 percent in the first quarter to $1,912,045 ($0.38 diluted earnings per share) up from $957,993 ($0.19 diluted earnings per share) in the comparable quarter last year.  The increase in earnings was due to improved gross profit margin, lower administrative cost and lower interest expense along with a lower effective tax rate.

Same store sales were down 1.0 percent in the first quarter of fiscal 2014 while overall sales increased 1.0 percent over the first quarter of fiscal 2013 as a result of two new restaurant openings.  Gross profit margin of 10.2 percent increased from 9.6 percent in the prior year's first quarter, primarily as a result of lower pension costs and improved efficiency in our commissary operations. 

At the Corporate level, administrative expense decreased 14.3 percent in first quarter 2014 primarily as a result lower head-count, lower professional fees, lower pension expense, and lower stock compensation expense than last year's first quarter.  The effective tax rate decreased to 30 percent in the quarter compared to 32 percent in last year's first quarter due to changes in tax credits and deferred state taxes.

Craig F. Maier, President and Chief Executive Officer, said, "Our first quarter showed good results despite lower customer counts that affected same store sales adversely, a trend which is consistent with reports of declining customer counts throughout the family dining segment of the restaurant industry.  The modest revenue increase combined with good cost control measures, including head-count reductions, drove our increase in earnings."

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 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

CONDENSED CONSOLIDATED STATEMENT OF EARNINGS (unaudited)

(In thousands, except per share data)








16 weeks ended



Sept. 17,


Sept. 18,



2013


2012






Sales

$    61,237


$   60,625

Cost of sales





Food and paper

20,350


20,275


Payroll and related

21,633


21,452


Other operating costs

13,031


13,123



55,014


54,850

Gross profit

6,223


5,775


Administrative and advertising

3,767


4,393


Franchise fees and other revenue

(424)


(428)


(Gain) loss on sale of assets

(67)


11


Impairment of long lived assets

-


70

Operating profit 

2,947


1,729


Interest expense

215


321

Earnings from continuing operations before income taxes         

2,732


1,408

Income taxes

820


450

Earnings from continuing operations

1,912


958

(Loss) from discontinued operations, net of tax

-


(158)

NET EARNINGS

$      1,912


$       800






Earnings per share (EPS) of common stock:





Basic net earnings per share:





Earnings from continuing operations

$       0.38


$      0.19


(Loss) from discontinued operations

$             -


$    (0.03)


Basic net earnings per share

$       0.38


$      0.16


Diluted net earnings per share:





Earnings from continuing operations

$       0.38


$      0.19


(Loss) from discontinued operations

$             -


$    (0.03)


Diluted net earnings per share

$       0.38


$      0.16

Diluted average shares outstanding

5,081


5,017

Depreciation included above

$     3,227


$    3,112






 


Frisch's Restaurants, Inc. and Subsidiaries

CONDENSED CONSOLIDATED BALANCE SHEET

(In thousands of dollars)




September 17,


May 28,




2013


2013




(unaudited)



Assets





Current assets






Cash and equivalents

$            4,001


$        4,256



Receivables

1,397


1,297



Inventories

6,489


5,765



Other current assets

2,665


3,103




14,552


14,421


Property and equipment

103,987


102,145


Other assets






Goodwill & other intangible assets

774


775



Property held for sale and land-deferred development     

7,638


8,405



Deferred income taxes and other

3,188


2,966




11,600


12,146










$        130,139


$    128,712







Liabilities and shareholders' equity





Current liabilities






Accounts payable

$            8,844


$        5,879



Accrued expenses

7,413


8,025



Other

5,012


5,357




21,269


19,261








Long-term obligations






Long-term debt

8,241


9,600



Other long-term obligations

16,228


16,195




24,469


25,795








Shareholders' equity

84,401


83,656










$        130,139


$    128,712







SOURCE Frisch's Restaurants, Inc.



RELATED LINKS
http://www.frischs.com

More by this Source


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.