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 December
December December 15, 16, 15, 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 ======== ========
DATASOURCE: Frisch's Restaurants, Inc. CONTACT: Donald H. Walker,
Vice President-Finance and CFO of Frisch's Restaurants, Inc.,
+1-513-559-5202 Web Site: http://www.frischs.com/
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