Frisch's Reports Higher Earnings in the Second Quarter of Fiscal 2010

Jan 19, 2010, 08:00 ET from Frisch's Restaurants, Inc.

CINCINNATI, Jan. 19 /PRNewswire-FirstCall/ -- Frisch's Restaurants, Inc. (NYSE Amex: FRS) reported higher earnings for its 12-week fiscal second quarter ended December 15, 2009.   Net earnings for the quarter increased 6.9% to $2,369,217 compared to $2,215,787 last year.  Diluted earnings per share increased to $.46 per share, from $.43 per share last year. Sales declined 1.7% to $67,898,586 from $69,093,061 in last year's second quarter.  

For the first half of fiscal 2010, sales were $156,880,688 falling 1.3% from $158,974,692 for the first half of last year.  Earnings increased 22% to $5,356,882 from $4,390,847.  Diluted earnings per share rose to $1.03 from $.85 last year.  

Craig F. Maier, President and Chief Executive Officer, said, "Same store sales at our Big Boy Restaurants decreased a modest 0.4% in the second quarter. The sluggish economy and continuing high unemployment have driven down customer traffic in our restaurants."  

Maier added, "Our Golden Corral restaurants posted a same store sales decline of 3.6% during the second quarter.  The recession in the Midwest has had an even stronger negative impact on the sales of our Golden Corrals. Despite the lower sales, our Golden Corrals managed to post their fourth straight quarter of positive earnings."

The increase in earnings for the quarter in both concepts can mostly be attributed to a drop in food cost.  Earnings were also helped by lower utility costs, offset to a degree by rises in pension and medical plan expenses.

The Company opened two new Big Boy restaurants in the second quarter, one of which replaced an older facility on a superior nearby site.  Frisch's operates 89 company-owned Big Boy restaurants and there are an additional 25 franchised Big Boy restaurants operated by licensees.  The Company also operates 35 Golden Corral restaurants.

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)

Twenty-eight weeks ended

Twelve weeks ended

December 15,

December 16,

December 15,

December 16,

2009

2008

2009

2008

Sales

$      156,881 

$      158,975 

$        67,899 

$        69,093 

Cost of sales

Food and paper

53,076 

57,747 

22,802 

24,473 

Payroll and related

52,485 

52,148 

22,781 

22,551 

Other operating costs

35,203 

35,870 

15,186 

15,431 

140,764 

145,765 

60,769 

62,455 

Gross profit

16,117 

13,210 

7,130 

6,638 

Administrative and advertising

7,962 

7,746 

3,507 

3,308 

Franchise fees and other revenue

(688)

(692)

(296)

(291)

Gains on sale of assets

(1,116)

Operating profit

8,843 

7,272 

3,919 

3,621 

Interest expense

965 

1,087 

434 

499 

Earnings before income tax

7,878 

6,185 

3,485 

3,122 

Income taxes

2,521 

1,794 

1,116 

906 

NET EARNINGS

$          5,357 

$          4,391 

$          2,369 

$          2,216 

Earnings per share (EPS) of common stock:

Basic net earnings per share

$1.05 

$.86 

$.46 

$.43 

Diluted net earnings per share

$1.03 

$.85 

$.46 

$.43 

Diluted average shares outstanding

5,211 

5,166 

5,196 

5,144 

Depreciation included above

$          7,436 

$          7,265 

$          3,215 

$          3,180 

Opening expense included above

$             226 

$             531 

$             212 

$             202 

Frisch's Restaurants, Inc. and Subsidiaries

CONSOLIDATED BALANCE SHEET

(In thousands of dollars)

December 15,

June 2,

2009

2009

(unaudited)

Assets

Current assets

Cash and equivalents

$          1,638

$        899

Receivables

1,427

1,549

Inventories

5,201

6,531

Other current assets

3,357

2,480

11,623

11,459

Property and equipment

161,678

157,638

Other assets

Goodwill & other intangible assets

1,502

1,548

Property held for sale and land investments

3,675

3,218

Deferred income taxes and other

3,898

3,113

9,075

7,879

$      182,376

$ 176,976

Liabilities and shareholders' equity

Current liabilities

Accounts payable

$        11,273

$     8,038

Accrued expenses

9,250

11,555

Other

8,740

8,418

29,263

28,011

Long-term obligations

Long-term debt

21,458

21,962

Other long-term obligations

13,217

12,626

34,675

34,588

Shareholders' equity

118,438

114,377

$      182,376

$ 176,976

SOURCE Frisch's Restaurants, Inc.



RELATED LINKS

http://www.frischs.com