Frisch's Reports Record Sales for Fiscal 2011

CINCINNATI, July 26, 2011 /PRNewswire/ -- Frisch's Restaurants, Inc. (NYSE Amex: FRS) reported record sales of $303,540,552 for the fiscal year ended May 31, 2011, as sales rose $10,668,378, or 3.6%, from $292,872,174 last year. Net earnings for the year declined 5.3% to $9,472,589 compared to $9,998,931 last year.  Diluted earnings per share decreased to $1.87 per share, from $1.93 per share last year.  

For the fourth quarter of fiscal 2011, revenue climbed 1.9% to $72,472,819 from $71,118,878 in last year's fourth quarter.  Net earnings declined 8.7% to $2,391,114 compared to $2,618,339 in last year's fourth quarter.  Earnings per share declined to $.48 in the quarter compared to $.51 last year.  

Craig F. Maier, President and Chief Executive Officer, said, "Same store sales at our Big Boy Restaurants declined 0.4% for the year.  For the fourth quarter, Big Boy same store sales rose 0.5%.  The increase in total sales for the year was the result of more Big Boy restaurants in operation this year."  

Maier added, "Our Golden Corral restaurants posted a same store sales increase of 0.6% during the year despite declining 3.6% in the last quarter of the year."

The decline in operating earnings was largely driven by higher commodity costs that plagued the restaurant industry for the past year and a half. Another factor that hurt operating results was persistently high unemployment in the Midwest that limited the Company's customers' disposable income, which in turn inhibited sales growth.  The combination of high commodity costs and relatively flat same store sales resulted in a decline in operating earnings.  Thanks in large part to a lower effective tax rate, net earnings did not fall as rapidly as operating earnings.

During the year, the Company opened four new Big Boy restaurants.  As of May 31, 2011, Frisch's operated 35 Golden Corral restaurants and 95 company-owned Big Boy restaurants, and there were an additional 25 franchised Big Boy restaurants operated by licensees.  In addition, the Company currently has two more Big Boy restaurants under construction.

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

(In thousands, except per share data)







(unaudited)



Year ended


Quarter ended



May 31,


June 1,


May 31,


June 1,



2011


2010


2011


2010










Sales

$    303,541


$    292,872


$    72,473


$   71,119

Cost of sales









Food and paper

105,484


99,651


25,876


24,481


Payroll and related

101,067


97,919


23,843


23,596


Other operating costs

67,631


64,988


16,078


15,400



274,182


262,558


65,797


63,477

Gross profit

29,359


30,314


6,676


7,642


Administrative and advertising

15,872


15,127


3,384


3,694


Franchise fees and other revenue

(1,324)


(1,266)


(319)


(296)


Loss on sale of assets

40


-


40


-

Operating profit

14,771


16,453


3,571


4,244


Interest expense

1,582


1,748


355


393

Earnings before income taxes

13,189


14,705


3,216


3,851

Income taxes

3,716


4,706


825


1,233

NET EARNINGS

$       9,473


$       9,999


$      2,391


$     2,618










Earnings per share (EPS) of common stock:









Basic net earnings per share

$1.88


$1.96


$.48


$.51


Diluted net earnings per share

$1.87


$1.93


$.48


$.51

Diluted average shares outstanding

5,068


5,192


4,979


5,163

Depreciation included above

$     15,563


$     14,085


$      3,638


$     3,373

Opening expense included above

$       1,073


$          768


$          91


$       349












Frisch's Restaurants, Inc. and Subsidiaries

CONSOLIDATED BALANCE SHEET

(In thousands of dollars)




May 31,


June 1,





2011


2010









Assets






Current assets







Cash and equivalents

$     2,449


$       647




Receivables

1,997


1,534




Inventories

5,717


5,959




Other current assets

4,697


2,249





14,860


10,389



Property and equipment

172,922


168,699



Other assets







Goodwill & other intangible assets

1,237


1,459




Property held for sale and land investments

3,845


3,682




Deferred income taxes and other

2,410


5,024





7,492


10,165












$ 195,274


$ 189,253









Liabilities and shareholders' equity






Current liabilities







Accounts payable

$   10,216


$   10,558




Accrued expenses

10,083


9,641




Other

8,801


8,851





29,100


29,050










Long-term obligations







Long-term debt

22,573


23,286




Other long-term obligations

18,073


16,823





40,646


40,109










Shareholders' equity

125,528


120,094












$ 195,274


$ 189,253











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.