Frisch's Reports Record Third Quarter Sales and Earnings

Apr 05, 2001, 01:00 ET from Frisch's Restaurants, Inc.

    CINCINNATI, April 5 /PRNewswire/ -- Frisch's Restaurants, Inc. (Amex:   FRS)
 reported record sales and earnings for the twelve week third quarter ended
 March 4, 2001.  Revenues rose 12.3% to $42,118,091 from $37,513,010 for last
 year's third quarter.   Net earnings for the twelve weeks rose 46.8% to
 $1,254,583 compared to $854,685 last year.  Included in net earnings for the
 quarter was the net gain on the sale of franchise rights, an impairment charge
 for closing an under-performing Big Boy restaurant and discontinued operations
 from the Company's hotels. Earnings per share increased to $.25 from $.16 per
 share last year.  Excluding discontinued hotel operations, earnings per share
 from continuing operations were $.26 for the third quarter compared to
 $.22 per share last year.
     For the first three quarters of the fiscal year, revenues rose 11.3% to
 $140,267,861 from $126,058,374 for the same period of last year.  Net earnings
 rose 36.8% to $5,543,655 from $4,053,736. Earnings per share rose 52.1% to
 $1.08 per share for the first three quarters this year compared to $.71 per
 share for the first three quarters last year.  Earnings per share from
 continuing operations were $.88 for the first three quarters of fiscal 2001
 versus $.74 per share last year.
     Craig F. Maier, President and Chief Executive Officer, said, "Third
 quarter same store sales at our Big Boy restaurants increased more than 3.5%,
 marking the fourteenth consecutive quarter of same store sales increases in
 our Big Boy restaurants. We plan to open our first Big Boy restaurant that
 utilizes our new building design later this month.  In addition, two new
 Golden Corrals opened during the quarter, and three more are under
 construction. One is scheduled to open next week and two more in June and July
 2001.  Both of our restaurant concepts are performing extremely well.  We
 continue to provide our shareholders with the value they expect from
 Frisch's."
     At the end of the quarter, Frisch's Restaurants, Inc. operated 86 family-
 style restaurants under the name of Frisch's Big Boy in Indiana, Kentucky and
 Ohio and licensed another 38 restaurants to other Big Boy operators.  The
 Company also owns and operates nine Golden Corral restaurants in greater
 Cincinnati and Dayton, Ohio and Louisville, Kentucky with plans to develop
 32 more through 2007 in the Cincinnati, Dayton, Louisville, Cleveland and
 Toledo markets. The Company also operates (until it is sold) a high-rise hotel
 in metropolitan Cincinnati.  Frisch's has recorded positive net earnings for
 all 40 years the Company has been public and will pay its 161th consecutive
 quarterly cash dividend next week.
     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 4,      March 5,     March 4,      March 5,
                             2001           2000         2001          2000
 
     Sales                $ 138,056     $ 125,058      $40,687      $ 37,216
     Other                    2,212         1,000        1,431           297
     Total revenue          140,268       126,058       42,118        37,513
 
     Cost of sales
       Food and paper        45,941        41,059       13,669        12,312
       Payroll and related   47,644        43,367       14,204        13,092
       Other operating costs 28,119        26,510        8,316         7,654
         Total              121,704       110,936       36,189        33,058
 
     Administrative and
       advertising            7,954         6,905        2,302         2,003
     Impairment of long-
       lived assets           1,549             -        1,075             -
     Interest                 2,005         1,761          509           621
       Total costs and
         expenses           133,212       119,602       40,075        35,682
       Earnings from continuing
         operations before
         income tax           7,056         6,456        2,043         1,831
     Income taxes             2,539         2,195          735           623
       Earnings from continuing
         operations           4,517         4,261        1,308         1,208
     Income (loss) from
       discontinued operations
       (net of applicable tax)  487          (207)         (53)         (353)
     Gain on disposal of
       discontinued operations
       (net of applicable tax)  540             -            -             -
     Earnings (loss) from
       discontinued
       operations             1,027          (207)         (53)         (353)
 
       Net earnings          $5,544        $4,054       $1,255          $855
 
     Basic and diluted net
       earnings (loss)
       per share of common stock:
       Continuing operations  $ .88         $ .74        $ .26         $ .22
       Discontinued operations  .20          (.03)        (.01)         (.06)
       Total                 $ 1.08         $ .71        $ .25         $ .16
 
     Basic weighted average
       shares outstanding     5,141         5,731        5,078         5,495
 
     Depreciation included
       above                 $6,583        $7,701       $1,954        $2,327
 
     Opening expense
       included above          $987          $955         $363          $194
 
 
                  Frisch's Restaurants, Inc. and Subsidiaries
                           CONSOLIDATED BALANCE SHEET
                           (In thousands of dollars)
 
                                                        March 4,        May 28,
                                                          2001           2000
                                                      (unaudited)
     Assets
     Current assets
       Cash and equivalents                              $1,219           $565
       Receivables                                        1,821          1,234
       Inventories                                        3,772          3,737
       Hotel assets held for sale - net                   3,345         13,737
       Other current assets                               1,985          1,505
         Total                                           12,142         20,778
 
     Property and equipment                              83,607         73,901
 
     Other assets
       Intangible assets                                    742            745
       Property held for sale and land investments        3,067          4,092
       Other                                              9,137          8,263
         Total                                           12,946         13,100
 
         Total                                        $ 108,695      $ 107,779
 
     Liabilities and shareholders' equity
       Current liabilities
         Accounts payable                                $8,887         $7,377
         Accrued expenses                                 5,645          6,278
         Other                                            4,921          4,067
         Total                                           19,453         17,722
 
     Long-term obligations
       Long-term debt                                    23,424         26,330
       Other long-term obligations                       10,232          9,560
         Total                                           33,656         35,890
 
     Shareholders' equity                                55,586         54,167
 
         Total                                        $ 108,695      $ 107,779
 
 

SOURCE Frisch's Restaurants, Inc.
    CINCINNATI, April 5 /PRNewswire/ -- Frisch's Restaurants, Inc. (Amex:   FRS)
 reported record sales and earnings for the twelve week third quarter ended
 March 4, 2001.  Revenues rose 12.3% to $42,118,091 from $37,513,010 for last
 year's third quarter.   Net earnings for the twelve weeks rose 46.8% to
 $1,254,583 compared to $854,685 last year.  Included in net earnings for the
 quarter was the net gain on the sale of franchise rights, an impairment charge
 for closing an under-performing Big Boy restaurant and discontinued operations
 from the Company's hotels. Earnings per share increased to $.25 from $.16 per
 share last year.  Excluding discontinued hotel operations, earnings per share
 from continuing operations were $.26 for the third quarter compared to
 $.22 per share last year.
     For the first three quarters of the fiscal year, revenues rose 11.3% to
 $140,267,861 from $126,058,374 for the same period of last year.  Net earnings
 rose 36.8% to $5,543,655 from $4,053,736. Earnings per share rose 52.1% to
 $1.08 per share for the first three quarters this year compared to $.71 per
 share for the first three quarters last year.  Earnings per share from
 continuing operations were $.88 for the first three quarters of fiscal 2001
 versus $.74 per share last year.
     Craig F. Maier, President and Chief Executive Officer, said, "Third
 quarter same store sales at our Big Boy restaurants increased more than 3.5%,
 marking the fourteenth consecutive quarter of same store sales increases in
 our Big Boy restaurants. We plan to open our first Big Boy restaurant that
 utilizes our new building design later this month.  In addition, two new
 Golden Corrals opened during the quarter, and three more are under
 construction. One is scheduled to open next week and two more in June and July
 2001.  Both of our restaurant concepts are performing extremely well.  We
 continue to provide our shareholders with the value they expect from
 Frisch's."
     At the end of the quarter, Frisch's Restaurants, Inc. operated 86 family-
 style restaurants under the name of Frisch's Big Boy in Indiana, Kentucky and
 Ohio and licensed another 38 restaurants to other Big Boy operators.  The
 Company also owns and operates nine Golden Corral restaurants in greater
 Cincinnati and Dayton, Ohio and Louisville, Kentucky with plans to develop
 32 more through 2007 in the Cincinnati, Dayton, Louisville, Cleveland and
 Toledo markets. The Company also operates (until it is sold) a high-rise hotel
 in metropolitan Cincinnati.  Frisch's has recorded positive net earnings for
 all 40 years the Company has been public and will pay its 161th consecutive
 quarterly cash dividend next week.
     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 4,      March 5,     March 4,      March 5,
                             2001           2000         2001          2000
 
     Sales                $ 138,056     $ 125,058      $40,687      $ 37,216
     Other                    2,212         1,000        1,431           297
     Total revenue          140,268       126,058       42,118        37,513
 
     Cost of sales
       Food and paper        45,941        41,059       13,669        12,312
       Payroll and related   47,644        43,367       14,204        13,092
       Other operating costs 28,119        26,510        8,316         7,654
         Total              121,704       110,936       36,189        33,058
 
     Administrative and
       advertising            7,954         6,905        2,302         2,003
     Impairment of long-
       lived assets           1,549             -        1,075             -
     Interest                 2,005         1,761          509           621
       Total costs and
         expenses           133,212       119,602       40,075        35,682
       Earnings from continuing
         operations before
         income tax           7,056         6,456        2,043         1,831
     Income taxes             2,539         2,195          735           623
       Earnings from continuing
         operations           4,517         4,261        1,308         1,208
     Income (loss) from
       discontinued operations
       (net of applicable tax)  487          (207)         (53)         (353)
     Gain on disposal of
       discontinued operations
       (net of applicable tax)  540             -            -             -
     Earnings (loss) from
       discontinued
       operations             1,027          (207)         (53)         (353)
 
       Net earnings          $5,544        $4,054       $1,255          $855
 
     Basic and diluted net
       earnings (loss)
       per share of common stock:
       Continuing operations  $ .88         $ .74        $ .26         $ .22
       Discontinued operations  .20          (.03)        (.01)         (.06)
       Total                 $ 1.08         $ .71        $ .25         $ .16
 
     Basic weighted average
       shares outstanding     5,141         5,731        5,078         5,495
 
     Depreciation included
       above                 $6,583        $7,701       $1,954        $2,327
 
     Opening expense
       included above          $987          $955         $363          $194
 
 
                  Frisch's Restaurants, Inc. and Subsidiaries
                           CONSOLIDATED BALANCE SHEET
                           (In thousands of dollars)
 
                                                        March 4,        May 28,
                                                          2001           2000
                                                      (unaudited)
     Assets
     Current assets
       Cash and equivalents                              $1,219           $565
       Receivables                                        1,821          1,234
       Inventories                                        3,772          3,737
       Hotel assets held for sale - net                   3,345         13,737
       Other current assets                               1,985          1,505
         Total                                           12,142         20,778
 
     Property and equipment                              83,607         73,901
 
     Other assets
       Intangible assets                                    742            745
       Property held for sale and land investments        3,067          4,092
       Other                                              9,137          8,263
         Total                                           12,946         13,100
 
         Total                                        $ 108,695      $ 107,779
 
     Liabilities and shareholders' equity
       Current liabilities
         Accounts payable                                $8,887         $7,377
         Accrued expenses                                 5,645          6,278
         Other                                            4,921          4,067
         Total                                           19,453         17,722
 
     Long-term obligations
       Long-term debt                                    23,424         26,330
       Other long-term obligations                       10,232          9,560
         Total                                           33,656         35,890
 
     Shareholders' equity                                55,586         54,167
 
         Total                                        $ 108,695      $ 107,779
 
 SOURCE  Frisch's Restaurants, Inc.