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
Frisch's Restaurants, Inc. and Subsidiaries CONDENSED CONSOLIDATED STATEMENT OF EARNINGS (In thousands, except per share data) (unaudited) Year ended Quarter ended ---------- ------------- June 3, May 28, June 3, May 28, 2014 2013 2014 2013 ---- ---- ---- ---- Sales $209,173 $203,712 $53,559 $48,792 Cost of sales Food and paper 70,088 68,268 18,222 16,410 Payroll and related 74,236 71,523 18,837 17,156 Other operating costs 42,973 41,368 10,228 9,406 ------ 187,297 181,159 47,287 42,972 Restaurant operating income 21,876 22,553 6,272 5,820 Administrative and advertising 12,599 13,074 3,155 2,966 Other (revenue) (1,439) (1,376) (363) (320) (Gain) loss on sale of real property (135) 14 (68) 1 Impairment of long lived assets - 390 - 320 --- Operating income 10,851 10,451 3,548 2,853 Interest expense 586 964 115 205 --- Earnings from continuing operations before income taxes 10,265 9,487 3,433 2,648 Income taxes (benefit) 832 2,513 (140) 380 --- ----- ---- --- Earnings from continuing operations 9,433 6,974 3,573 2,268 (Loss) from discontinued operations, net of tax - (158) - - NET EARNINGS $9,433 $6,816 $3,573 $2,268 ====== ====== ====== ====== Earnings per share (EPS) of common stock: Basic net earnings per share: Earnings from continuing operations $1.85 $1.39 $0.70 $0.45 (Loss) from discontinued operations $ - $(0.03) $ - $ - Basic net earnings per share $1.85 $1.36 $0.70 $0.45 === Diluted net earnings per share: Earnings from continuing operations $1.85 $1.38 $0.70 $0.45 (Loss) from discontinued operations $ - $(0.03) $ - $ - Diluted net earnings per share $1.85 $1.35 $0.70 $0.45 === Diluted average shares outstanding 5,101 5,045 5,113 5,070 ===== ===== ===== ===== Depreciation included in continuing operations $10,721 $10,388 $2,561 $2,452 ======= ======= ====== ====== Opening expense included in continuing operations $307 $592 $ - $132 ==== ==== === === ====
Frisch's Restaurants, Inc. and Subsidiaries CONDENSED CONSOLIDATED BALANCE SHEET (In thousands of dollars) June 3, May 28, 2014 2013 Assets Current assets Cash and equivalents $2,038 $4,256 Trade and other receivables 1,900 1,297 Inventories 5,637 5,765 Other current assets 4,047 3,103 ----- ----- 13,622 14,421 Property and equipment 104,862 102,145 Other assets Goodwill & other intangible assets 773 775 Real property not used in operations 6,744 8,405 Other 3,261 2,966 ----- ----- 10,778 12,146 ------ ------ $129,262 $128,712 ======== ======== Liabilities and shareholders' equity Current liabilities Long-term debt, current maturities $1,996 $5,879 Accounts payable 6,812 8,535 Accrued and other expenses 9,319 4,846 ----- ----- 18,127 19,260 Long-term obligations Long-term debt 4,737 9,600 Other long-term obligations 12,055 16,197 ------ ------ 16,792 25,797 Shareholders' equity 94,343 83,655 --------- $129,262 $128,712 ======== ========
SOURCE Frisch's Restaurants, Inc.