Frisch's Reports Third Quarter of Fiscal 2007 Sales and Earnings

    CINCINNATI, April 10 /PRNewswire-FirstCall/ -- Frisch's Restaurants,
 Inc. ( FRS) reported lower sales for its 12-week fiscal third quarter
 ended March 6, 2007. Revenues declined 2.7% to $65,451,505 from $67,259,863
 for last year's third quarter. Net earnings for the quarter declined 13.2%
 to $1,914,997 compared to $2,205,698 last year. Diluted earnings per share
 decreased to $.37 per share, from $.43 per share last year. Last year's
 third quarter included the benefit of a $394,000 pretax gain from the
 disposal of property, which added $.05 per share.
     For the first three quarters of fiscal 2007, revenue rose 0.6% to
 $221,968,379 from $220,745,741 for the same period last year. Earnings
 increased 7.8% to $6,995,223 from $6,490,500. Diluted earnings per share
 rose to $1.35 from $1.26 last year.
     Craig F. Maier, President and Chief Executive Officer, said, "Same
 store sales at our Big Boy Restaurants decreased 0.8% in the third quarter.
 Mild weather during the first several weeks of the quarter eventually
 turned to the inclement winter conditions that we are more accustomed to in
 our markets. The impact of the snow and ice more than erased the sales
 gains we saw in December and early January, severely affecting our
 operating results. To still be ahead in same store sales on a year to date
 basis is actually quite an achievement."
     Maier added, "The harsh weather also impacted our Golden Corral
 restaurants as they posted a same store sales decline of 5.8% during the
 third quarter. We look forward to renewed sales strength as we enter the
 spring."
     The lower earnings for the quarter can be attributed to lower sales
 driven by the winter weather. On a positive note, even though Golden Corral
 experienced lower same store sales, lower food cost and payroll expenses
 led to modest earnings in the Golden Corral restaurants.
     During the quarter, there were no new Big Boy or Golden Corral
 restaurants opened. An older Big Boy was closed in Cincinnati. Also during
 the quarter, construction began on a new Big Boy restaurant in the Dayton,
 Ohio market. Frisch's operates 34 Golden Corral restaurants and 89
 company-owned Big Boy restaurants, and there are an additional 28
 franchised Big Boy restaurants operated by licensees.
     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, Dayton, Toledo and Cleveland, Ohio,
 Louisville, Kentucky and Pittsburgh, Pennsylvania. Plans are in place to
 expand the Golden Corral operation into markets in Columbus, Ohio, northern
 Indiana and southern Michigan.
     The Company owns the trademark "Frisch's" and has exclusive,
 irrevocable ownership of the rights to the "Big Boy" trademark, trade name
 and service mark 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 5,  March 6,  March 5,
                                          2007       2006     2007      2006
 
     Sales                              $221,968   $220,746  $65,452   $67,260
     Cost of sales
        Food and paper                    77,214     77,317   22,824    23,703
        Payroll and related               73,403     72,970   21,911    22,218
        Other operating costs             48,745     48,716   13,987    14,787
                                         199,362    199,003   58,722    60,708
     Gross profit                         22,606     21,743    6,730     6,552
        Administrative and advertising    11,177     11,158    3,488     3,235
        Franchise fees and other
         revenue                            (965)      (960)    (276)     (298)
        (Gains) losses on sale of
         assets                             (250)      (394)       -      (394)
     Operating profit                     12,644     11,939    3,518     4,009
        Interest expense                   2,046      2,104      617       665
     Earnings before income tax           10,598      9,835    2,901     3,344
     Income taxes                          3,603      3,344      986     1,138
     NET EARNINGS                         $6,995     $6,491   $1,915    $2,206
 
     Earnings per share (EPS) of common
      stock:
        Basic net earnings per share       $1.38      $1.28     $.38      $.43
        Diluted net earnings per share     $1.35      $1.26     $.37      $.43
     Diluted average shares outstanding    5,193      5,161    5,235     5,160
     Depreciation included above         $10,413     $9,886   $3,249    $3,025
     Opening expense included above         $241     $1,380       $-      $249
 
 
 
                    Frisch's Restaurants, Inc. and Subsidiaries
                             CONSOLIDATED BALANCE SHEET
                             (In thousands of dollars)
 
                                                      March 6,          May 30,
                                                        2007              2006
                                                    (unaudited)
     Assets
       Current assets
         Cash and equivalents                           $389              $815
         Receivables                                   1,861             1,538
         Inventories                                   5,486             4,792
         Other current assets                          4,976             4,918
                                                      12,712            12,063
       Property and equipment                        157,147           154,370
       Other assets
         Goodwill & other intangible assets            2,070             2,125
         Property held for sale and land
          investments                                  3,411             3,078
         Other                                         2,843             3,647
                                                       8,324             8,850
 
                                                    $178,183          $175,283
 
     Liabilities and shareholders' equity
       Current liabilities
         Accounts payable                            $10,268           $10,330
         Accrued expenses                              9,295             9,640
         Other                                        14,528            10,613
                                                      34,091            30,583
 
       Long-term obligations
         Long-term debt                               26,880            30,992
         Other long-term obligations                  10,322            13,027
                                                      37,202            44,019
 
       Shareholders' equity                          106,890           100,681
 
                                                    $178,183          $175,283
 
 

SOURCE Frisch's Restaurants, Inc.