FRISCH'S RESTAURANTS, INC. CINCINNATI, Oct. 22, 2014 /PRNewswire/ -- Frisch's Restaurants, Inc. (NYSE MKT: FRS) reported revenue of $62,583,320 during its fiscal 2015 first quarter ended September 23, 2014 (consisting of 16 weeks), a 2.2 percent increase over the $61,236,621 reported in the prior year's first quarter. Net Earnings increased 37.2 percent in the first quarter to $2,622,801 ($0.51 diluted earnings per share) up from $1,912,045 ($0.38 diluted earnings per share) in the comparable quarter last year. The increase in earnings was primarily due to higher restaurant operating income of $167,258 and a $1,405,176 gain from the sale of a restaurant that was closed in July 2014, offset in part by an impairment charge of $418,300 in the carrying value of property held for sale.
Same store sales were up 1.8 percent in the first quarter of fiscal 2015 while overall sales increased 2.2 percent over the first quarter of fiscal 2014 as a result of a new restaurant opening in the prior year offset in part by the closure of an existing unit in July of this year. As a percentage of sales, the margin on restaurant operating income of 10.2 percent was flat with the prior year's first quarter, as higher costs for beef were compensated by lower pension costs and lower fees on gift cards.
At the Corporate level, administrative expense increased 5.4 percent in first quarter 2015 primarily as a result of higher professional fees and higher incentive compensation expense than last year's first quarter. The effective tax rate decreased to 29.9 percent in the quarter compared to 30 percent in last year's first quarter due to changes in tax credits and deferred state taxes.
Craig F. Maier, President and Chief Executive Officer, said, "Our first quarter showed good growth in sales despite marginally lower customer counts, a trend we see extending into our second quarter as the economy in our market area continues to strengthen. Our same store drive-through sales showed especially strong results in the first quarter 2015 with an 8 percent increase versus last year. On the cost side we continue to be challenged by the continuation of historically high beef prices, but were able to maintain our margin percentage through other cost savings."
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.
The Company currently operates 95 company-owned Frisch's Big Boy restaurants and there are an additional 26 franchised Frisch's Big Boy restaurants that are operated by licensees.
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.
[See attached Financial Statements]
Frisch's Restaurants, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENT OF EARNINGS (unaudited)
(In thousands, except per share data)
16 weeks ended
--------------
Sept. 23, Sept. 17,
2014 2013
---- ----
Sales $62,583 $61,237
Cost of sales
Food and paper 21,201 20,350
Payroll and related 21,749 21,633
Other operating costs 13,243 13,031
56,193 55,014
Restaurant operating income 6,390 6,223
Administrative and advertising 3,970 3,767
Other (revenue) (444) (424)
(Gain) on sale of real property (1,405) (67)
Impairment of long lived assets 418 -
Operating income 3,851 2,947
Interest expense 111 215
Earnings before income tax 3,740 2,732
Income taxes 1,117 820
----- ---
NET EARNINGS $2,623 $1,912
====== ======
Earnings per share (EPS) of common
stock:
Basic net earnings per share $.51 $.38
Diluted net earnings per share $.51 $.38
Diluted average shares outstanding 5,122 5,081
===== =====
Depreciation included above $3,221 $3,227
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Frisch's Restaurants, Inc. and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands of dollars)
September 23, June 3,
2014 2014
(unaudited)
----------
Assets
Current assets
Cash and equivalents $3,386 $2,038
Trade and other receivables 1,527 1,900
Inventories 6,334 5,637
Other current assets 3,905 4,047
----- -----
15,152 13,622
Property and
equipment 104,657 104,862
Other assets
Goodwill & other intangible
assets 772 773
Real property not used in
operations 6,326 6,744
Other 3,393 3,261
----- -----
10,491 10,778
------ ------
$130,300 $129,262
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Liabilities and shareholders' equity
Current
liabilities
Long-term debt, current
maturities $1,814 $1,996
Accounts payable 7,451 6,812
Accrued and other expenses 8,894 9,319
----- -----
18,159 18,127
Long-term
obligations
Long-term debt 4,311 4,737
Other long-term obligations 12,305 12,055
------ ------
16,616 16,792
Shareholders'
equity 95,525 94,343
-----------
$130,300 $129,262
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SOURCE Frisch's Restaurants, Inc.
