Frisch's Reports Annual and Fourth Quarter Fiscal 2014 Results

CINCINNATI, Aug. 5, 2014 /PRNewswire/ -- Frisch's Restaurants, Inc. (NYSE MKT: FRS) reported revenue from continuing operations of $209,173,000  for the fiscal year ended June 3, 2014 (53 weeks), representing a $5,461,000 or 2.7 percent increase over the prior fiscal year (52 weeks).  The additional week in fiscal 2014 contributed $3,963,000 to the revenue increase, which yielded an estimated $737,000 in pretax earnings.  Earnings from continuing operations for the year increased $2,459,000 or 35.3 percent to $9,433,000 ($1.85 diluted earnings per share) compared to $6,974,000 ($1.38 diluted earnings per share) last year. Net earnings for fiscal year 2014 also received the benefit of a much lower effective tax rate, which resulted from certain tax planning strategies.

For the fourth quarter of fiscal 2014 (13 weeks), revenue from continuing operations increased $4,767,000 or 9.8 percent to $53,559,000 versus $48,792,000 the prior year (12 weeks), mostly due the effect of the 13th week.  Earnings from continuing operations increased $1,304,706 or 57.5 percent in the 13 week fourth quarter to $3,573,000 ($0.70 diluted earnings per share) compared to $2,268,000 ($0.45 diluted earnings per share) in the prior year 12 week quarter.  The increase is attributable to the extra week of operations in fiscal 2014 along with the effect of additional tax benefits recorded in the fourth quarter which are associated with several tax planning strategies.  Disregarding the impact of the 53^rd week in fiscal 2014, same store sales from continuing operations were up 0.7 percent in the fourth quarter fiscal 2014 while overall sales increased 1.6 percent as a result of new restaurant openings.  The margin from restaurant operating income from continuing operations in the fourth quarter declined marginally on higher payroll and health care costs while administrative and advertising expense increased due to lower returns on non-qualified pension assets in comparison to the prior year. 

Craig F. Maier, President and Chief Executive Officer, said, "We wrapped up 2014 on a strong note and expect to continue to generate solid profits and cash flow as we move into our new fiscal year."

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.

During the fiscal year ended June 3, 2014, the Company opened one new Frisch's Big Boy restaurant, in December 2013, in Lexington, Kentucky. At this time, the Company has not scheduled any new restaurant construction.  A Frisch's Big Boy restaurant located in Columbus, Ohio was closed permanently in July 2014.  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.  Construction of a franchised Frisch's Big Boy restaurant is nearing completion in Ironton, Ohio.  Its scheduled opening date is August 11, 2014.

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.

www.frischs.com

SOURCE Frisch's Restaurants, Inc.