Frisch's Reports Higher Earnings in First Quarter
October 27 2009 - 8:00AM
PR Newswire (US)
CINCINNATI, Oct. 27 /PRNewswire-FirstCall/ -- Frisch's Restaurants,
Inc. (NYSE Amex: FRS) reported significantly higher earnings for
its 16-week fiscal first quarter ended September 22, 2009. Net
earnings for the quarter increased 37.4% to $2,987,665 compared to
$2,175,060 last year. Diluted earnings per share increased to $.57
per share, from $.42 per share last year. Revenues declined
slightly to $88,982,102 from $89,881,631 for last year's first
quarter. Craig F. Maier, President and Chief Executive Officer,
said, "Same store sales at our Big Boy Restaurants decreased 0.1%
in our fiscal first quarter. Even though Big Boy sales declined
slightly, the cost of food declined to a point that earnings
improved significantly." Maier added, "Also on the bright side, our
Golden Corral restaurants continued to post improved earnings
during the first quarter. This marks the third straight quarter of
positive earnings for our Golden Corrals. The higher earnings came
despite a same store sales decline of 2.4%. " The increase in
earnings for the quarter can mostly be attributed to a drop in food
cost as commodity prices have drifted lower throughout much of
2009. The earnings improvement was also helped by lower utility
costs and payroll expense; although payroll related items such as
medical plan and pension expenses rose to offset the reduction in
payrolls. The Company did not open any restaurants in the first
quarter. Frisch's operates 88 company-owned Big Boy restaurants and
there are an additional 26 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) Sixteen Weeks ended Sept. 22,
Sept. 23, 2009 2008 ---- ---- Sales $88,982 $89,882 Cost of sales
Food and paper 30,274 33,273 Payroll and related 29,705 29,597
Other operating costs 20,017 20,439 ------ ------ 79,996 83,309
Gross profit 8,986 6,573 Administrative and advertising 4,454 4,438
Franchise fees and other revenue (392) (401) (Gains) losses on sale
of assets - (1,116) --- ------ Operating profit 4,924 3,652
Interest expense 531 589 --- --- Earnings before income tax 4,393
3,063 Income taxes 1,405 888 ----- --- NET EARNINGS $2,988 $2,175
====== ====== Earnings per share (EPS) of common stock: Basic net
earnings per share $.59 $.43 ==== ==== Diluted net earnings per
share $.57 $.42 ==== ==== Diluted average shares outstanding 5,224
5,181 ===== ===== Depreciation included above $4,221 $4,085 ======
====== Opening expense included above $14 $329 === ==== Frisch's
Restaurants, Inc. and Subsidiaries CONSOLIDATED BALANCE SHEET (In
thousands of dollars) September 22, June 2, 2009 2009 (unaudited)
--------- -------- Assets Current assets Cash and equivalents
$1,965 $899 Receivables 1,405 1,549 Inventories 5,007 6,531 Other
current assets 3,236 2,480 ----- ----- 11,613 11,459 Property and
equipment 160,931 157,638 Other assets Goodwill & other
intangible assets 1,522 1,548 Property held for sale and land
investments 3,645 3,218 Deferred income taxes and other 3,642 3,113
----- ----- 8,809 7,879 ----- ----- $181,353 $176,976 ========
======== Liabilities and shareholders' equity Current liabilities
Accounts payable $10,620 $8,038 Accrued expenses 8,546 11,555 Other
9,007 8,418 ----- ----- 28,173 28,011 Long-term obligations
Long-term debt 23,310 21,962 Other long-term obligations 13,349
12,626 ------ ------ 36,659 34,588 Shareholders' equity 116,521
114,377 ------- ------- $181,353 $176,976 ======== ========
http://www.frischs.com/ DATASOURCE: Frisch's Restaurants, Inc.
CONTACT: Donald H. Walker, Vice President-Finance and CFO, Frisch's
Restaurants, Inc., +1-513-559-5202 Web Site:
http://www.frischs.com/
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