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Frisch's Reports Higher Sales and Earnings in Third Quarter of Fiscal 2012

CINCINNATI, April 3, 2012 /PRNewswire/ -- 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.

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










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




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


-


Operating profit

4,917


11,200


3,497


2,991



Interest expense

1,136


1,227


328


378


Earnings before income tax

3,781


9,973


3,169


2,613


Income taxes

454


2,892


356


758


NET EARNINGS

$       3,327


$       7,081


$      2,813


$     1,855












Earnings per share (EPS) of common stock:









Basic net earnings per share

$.67


$1.40


$.57


$.37



Diluted net earnings per share

$.67


$1.39


$.57


$.37


Diluted average shares outstanding

4,942


5,104


4,948


5,056


Depreciation included above

$     11,593


$     11,925


$      3,480


$     3,638


Opening expense included above

$          398


$          982


$              -


$          66














Frisch's Restaurants, Inc. and Subsidiaries

CONSOLIDATED BALANCE SHEET

(In thousands of dollars)




March 6,


May 31,





2012


2011





(unaudited)




Assets






Current assets







Cash and equivalents

$     5,183


$     2,449




Receivables

2,099


1,997




Inventories

6,813


5,717




Other current assets

4,111


4,697





18,206


14,860



Property and equipment

159,183


172,922



Other assets







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





15,249


7,492












$ 192,638


$ 195,274









Liabilities and shareholders' equity






Current liabilities







Accounts payable

$   11,133


$   10,216




Accrued expenses

9,798


10,083




Other

8,509


8,801





29,440


29,100










Long-term obligations







Long-term debt

17,627


22,573




Other long-term obligations

18,183


18,073





35,810


40,646










Shareholders' equity

127,388


125,528












$ 192,638


$ 195,274











SOURCE Frisch's Restaurants, Inc.



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http://www.frischs.com

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