Frisch's Reports First Quarter Fiscal 2013 Results

              Frisch's Reports First Quarter Fiscal 2013 Results

PR Newswire

CINCINNATI, Oct. 22, 2012

CINCINNATI, Oct. 22, 2012 /PRNewswire/ --Frisch's Restaurants, Inc. (NYSE
MKT: FRS) reported a modest decline in revenue from continuing operations
during its 16-week fiscal 2013 first quarter ended September 18, 2012, which
is consistent with national trends of declining customer counts in the family
dining segment of the restaurant industry. Consolidated revenue from
continuing operations declined 1.2 percent to $60,625,296 from $61,361,345 in
last year's first quarter. Net earnings from continuing operations for the
quarter increased 108.3 percent to $957,993 compared to $460,030 last year.
Diluted earnings per share from continuing operations increased 111.1 percent
to $0.19 per share, from $0.09 per share last year.

As previously reported, the Company disposed of its Golden Corral restaurant
operations in May 2012, which consisted of the assets of 29 restaurants. In
addition, the Company had previously closed six under-performing Golden Corral
restaurants in August 2011, which resulted in a non-cash pretax asset
impairment charge of $4,000,000 that was recorded in the first quarter 2012.
The results of operations of Golden Corral, along with the above described
first quarter 2012 impairment charge, are presented as discontinued operations
in the consolidated financial statements in the prior year's results.

Same store sales from continuing operations were essentially flat in the first
quarter 2013 while overall sales decreased 1.2 percent as a result of last
fiscal year's closures of underperforming Big Boy restaurants offset in part
by new restaurant openings. Gross profit from continuing operations increased
12.2 percent in the quarter versus the prior year, primarily the result of
lower food and paper costs as a percentage of revenues.

At the Corporate level, administrative and advertising expense decreased 1.9
percent in first quarter 2013 primarily as a result of a non-recurring stock
award in the prior year, which was partly offset by higher equity compensation
and severance costs in the current year. The effective tax rate increased to
32 percent in the quarter compared to 23 percent in last year's first quarter
due to changes in tax credits and deferred state taxes.

As previously reported, on July 25, 2012, the Board of Directors declared a
special one-time cash dividend of $9.50 per share which was paid on September
14, 2012 to shareholders of record on August 31, 2012. The total for the
special dividend amounted to $47,963,000 and accounts for significant changes
in cash balances and shareholders' equity in the quarter.

Craig F. Maier, President and Chief Executive Officer, said, "Our first
quarter showed mixed results as lower customer counts adversely affected same
store sales while our food costs as a percentage of sales dropped 80 basis
points from the prior year resulting in improved profitability. The family
dining segment of the restaurant industry continues to struggle with declining
customer counts as the U.S economy continues to languish."

The Company opened one new Big Boy restaurant in August in our first quarter.
Frisch's currently operates 94 company-owned Big Boy restaurants and there are
an additional 25 franchised Big Boy restaurants operated by licensees.

*************************

Frisch's Restaurants, Inc. is a regional company that operates full service
family-style restaurants under the name "Frisch's Big Boy." All 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 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.

www.frischs.com

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. 18,      Sept. 20,
                                                   2012           2011
Sales                                              $  60,625    $  61,361
Cost of sales
       Food and paper                              20,275         20,838
       Payroll and related                         21,452         21,903
       Other operating costs                       13,123         13,474
                                                   54,850         56,215
Gross profit                                       5,775          5,146
       Administrative and advertising              4,393          4,480
       Franchise fees and other revenue            (428)          (389)
       (Gain) loss on sale of assets               11             -
       Impairment of long lived assets             70             -
Operating profit                                  1,729          1,055
       Interest expense                            321            457
Earnings from continuing operations before income  1,408          598
taxes
Income taxes                                       450            138
Earnings from continuing operations                958            460
(Loss) from discontinued operations, net of tax    (158)          (2,734)
NET EARNINGS (LOSS)                                $    800   $  (2,274)
Earnings per share (EPS) of common stock:
       Basic net earnings per share:
       Earnings from continuing operations         $    0.19   $   0.09
       (Loss) from discontinued operations         $   (0.03)  $   (0.55)
       Basic net earnings (loss) per share         $    0.16   $   (0.46)
       Diluted net earnings per share:
       Earnings from continuing operations         $    0.19   $   0.09
       (Loss) from discontinued operations         $   (0.03)  $   (0.55)
       Diluted net earnings (loss) per share       $    0.16   $   (0.46)
Diluted average shares outstanding                 5,017          4,942
Depreciation included above                        $   3,112   $   3,112
Opening expense included above                     $    204   $    283



Frisch's Restaurants, Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEET
(In thousands of dollars)
                                                 September 18,  May 29,
                                                 2012           2012
                                                 (unaudited)
Assets
 Current assets
  Cash and equivalents                           $   1,174    $  49,455
  Receivables                                    1,404          1,683
  Inventories                                    6,020          5,590
  Other current assets                           4,140          3,010
  Current assets of discontinued operations      137            190
                                                 12,875         59,928
 Property and equipment                          102,251        102,139
 Other assets
  Goodwill & other intangible assets             777            777
  Property held for sale and land investments    8,968          11,484
  Deferred income taxes and other                6,447          5,641
                                                 16,192         17,902
                                                 $ 131,318      $ 179,969
Liabilities and shareholders' equity
 Current liabilities
  Accounts payable                               $   7,481    $   6,293
  Accrued expenses                               7,548          7,342
  Other                                          6,859          7,857
  Current liabilities of discontinued operations 278            683
                                                 22,166         22,175
 Long-term obligations
  Long-term debt                                 12,707         14,446
  Other long-term obligations                    21,871         21,623
                                                 34,578         36,069
 Shareholders' equity                            74,574         121,725
                                                 $ 131,318      $ 179,969



SOURCE Frisch's Restaurants, Inc.

Website: http://www.frischs.com
Contact: Mark R. Lanning, Vice President-Finance and CFO, Frisch's
Restaurants, Inc., +1-513-559-5200,investor.relations@frischs.com
 
Press spacebar to pause and continue. Press esc to stop.