UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 24, 2013
FRISCH’S RESTAURANTS, INC.
(Exact name of registrant as specified in its charter)
| OHIO | 001-07323 | 31-0523213 |
| (State or other jurisdiction | (Commission | (I.R.S. Employer |
| of incorporation) | File Number) | Identification No.) |
| 2800 GILBERT AVENUE, CINCINNATI, OHIO | 45206 |
| (Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code 513-961-2660
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02. Results of Operations and Financial Disclosure.
On July 24, 2013, the Company issued a press release announcing its financial results for the fourth quarter and fiscal year 2013, which ended May 28, 2013.
Item 9.01. Financial Statements and Exhibits
| (d) | Exhibits |
Exhibit 99.1 – Press release issued by the Company on July 24, 2013 is filed herewith.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| FRISCH’S RESTAURANTS, INC. | ||
| (registrant) | ||
| DATE July 24, 2013 | By: | /s/ Mark R. Lanning |
| Mark
R. Lanning Vice President and Chief Financial Officer, Principal Financial Officer and Principal Accounting Officer | ||
Frisch's Reports Annual and Fourth Quarter Fiscal 2013 Results
CINCINNATI, July 24, 2013 /PRNewswire/ -- Frisch's Restaurants, Inc. (NYSE MKT: FRS) reported revenue from continuing operations of $203,712,158 for the fiscal year ended May 28, 2013, with those revenues declining 0.7 percent from $205,082,827 in the prior year. Earnings from continuing operations for the year increased 20.2 percent to $6,974,101 ($1.38 diluted earnings per share) compared to $5,801,540 ($1.17 diluted earnings per share) last year.
For the fourth quarter of fiscal 2013, revenue from continuing operations increased 2.7 percent to $48,792,356 versus $47,499,363 in the prior year. Earnings from continuing operations increased 44.7 percent in the fourth quarter to $2,267,875 ($0.45 diluted earnings per share) compared to $1,567,470 ($0.31 diluted earnings per share) in the prior year. Same store sales from continuing operations were up 1.0 percent in the fourth quarter fiscal 2013 while overall sales increased 2.7 percent as a result of new restaurant openings. Gross profit margin from continuing operations in the fourth quarter improved over the prior year, as a result of higher volumes and cost management. Administrative and advertising expense decreased 2.8 percent in fourth quarter fiscal 2013 primarily as a result of lower head count.
Craig F. Maier, President and Chief Executive Officer, said, "We wrapped up 2013 on a strong note as fourth quarter revenue was up 2.7 percent while fourth quarter earnings were up 44.7 percent. The combination of solid sales and good cost control measures drove the earnings increase."
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 opened one new Frisch's Big Boy restaurant in August in the first quarter and opened a second new Frisch's restaurant during the third quarter in March. 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.
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 |
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CONSOLIDATED STATEMENT OF EARNINGS |
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(In thousands, except per share data) |
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|
|
| (unaudited) |
| ||
|
|
| Year ended |
| Quarter ended |
| ||||
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|
| May 28, |
| May 29, |
| May 28, |
| May 29, |
|
|
|
| 2013 |
| 2012 |
| 2013 |
| 2012 |
|
|
|
|
|
|
|
|
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|
|
|
Sales | $ 203,712 |
| $ 205,083 |
| $ 48,792 |
| $ 47,499 |
| |
Cost of sales |
|
|
|
|
|
|
|
| |
|
| Food and paper | 68,268 |
| 69,042 |
| 16,411 |
| 15,817 |
|
|
| Payroll and related | 71,176 |
| 72,370 |
| 16,809 |
| 16,618 |
|
|
| Other operating costs | 41,715 |
| 42,156 |
| 9,753 |
| 9,472 |
|
|
|
| 181,159 |
| 183,568 |
| 42,973 |
| 41,907 |
|
Gross profit | 22,553 |
| 21,515 |
| 5,819 |
| 5,592 |
| |
|
| Administrative and advertising | 13,074 |
| 13,379 |
| 2,965 |
| 3,049 |
|
|
| Franchise fees and other revenue | (1,376) |
| (1,323) |
| (320) |
| (328) |
|
|
| Loss (gain) on sale of assets | 14 |
| (200) |
| 1 |
| (9) |
|
|
| Impairment of long lived assets | 390 |
| 1,229 |
| 320 |
| 901 |
|
Operating profit | 10,451 |
| 8,430 |
| 2,853 |
| 1,979 |
| |
|
| Interest expense | 964 |
| 1,414 |
| 205 |
| 278 |
|
Earnings from continuing operations before income taxes | 9,487 |
| 7,016 |
| 2,648 |
| 1,701 |
| |
Income taxes | 2,513 |
| 1,214 |
| 380 |
| 134 |
| |
Earnings from continuing operations | 6,974 |
| 5,802 |
| 2,268 |
| 1,567 |
| |
(Loss) from discontinued operations, net of tax | (158) |
| (3,654) |
| - |
| (2,746) |
| |
NET EARNINGS (LOSS) | $ 6,816 |
| $ 2,148 |
| $ 2,268 |
| $ (1,179) |
| |
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Earnings per share (EPS) of common stock: |
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| |
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| Basic net earnings per share: |
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| Earnings from continuing operations | $ 1.39 |
| $ 1.18 |
| $ 0.45 |
| $ 0.32 |
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| (Loss) from discontinued operations | $ (0.03) |
| $ (0.74) |
| $ - |
| $ (0.56) |
|
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| Basic net earnings (loss) per share | $ 1.36 |
| $ 0.44 |
| $ 0.45 |
| $ (0.24) |
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| Diluted net earnings per share: |
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| Earnings from continuing operations | $ 1.38 |
| $ 1.17 |
| $ 0.45 |
| $ 0.31 |
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| (Loss) from discontinued operations | $ (0.03) |
| $ (0.74) |
| $ - |
| $ (0.55) |
|
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| Diluted net earnings (loss) per share | $ 1.35 |
| $ 0.43 |
| $ 0.45 |
| $ (0.24) |
|
Diluted average shares outstanding | 5,045 |
| 4,952 |
| 5,070 |
| 4,986 |
| |
Depreciation included in continuing operations | $ 10,388 |
| $ 10,273 |
| $ 2,452 |
| $ 2,424 |
| |
Opening expense included in continuing operations | $ 592 |
| $ 398 |
| $ 132 |
| $ - |
| |
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Frisch's Restaurants, Inc. and Subsidiaries | ||||||
CONSOLIDATED BALANCE SHEET | ||||||
(In thousands of dollars) | ||||||
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| May 28, |
| May 29, |
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| 2013 |
| 2012 |
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Assets |
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| Current assets |
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| |
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| Cash and equivalents | $ 4,256 |
| $ 49,455 |
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| Receivables | 1,297 |
| 1,683 |
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| Inventories | 5,765 |
| 5,590 |
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| Other current assets | 3,103 |
| 3,010 |
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| Current assets of discontinued operations | - |
| 190 |
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| 14,421 |
| 59,928 |
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| Property and equipment | 102,145 |
| 102,139 |
| |
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| Other assets |
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| |
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| Goodwill & other intangible assets | 775 |
| 777 |
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| Property held for sale and land investments | 8,405 |
| 11,484 |
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| Deferred income taxes and other | 2,966 |
| 5,641 |
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| 12,146 |
| 17,902 |
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| $ 128,712 |
| $ 179,969 |
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Liabilities and shareholders' equity |
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| Current liabilities |
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| |
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| Accounts payable | $ 5,879 |
| $ 6,293 |
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| Accrued expenses | 8,025 |
| 7,342 |
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| Other | 5,357 |
| 7,857 |
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| Current liabilities of discontinued operations | - |
| 683 |
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| 19,261 |
| 22,175 |
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| Long-term obligations |
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| |
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| Long-term debt | 9,600 |
| 14,446 |
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| Other long-term obligations | 16,195 |
| 21,623 |
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| 25,795 |
| 36,069 |
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| Shareholders' equity | 83,656 |
| 121,725 |
| |
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| $ 128,712 |
| $ 179,969 |
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CONTACT: Mark R. Lanning, Vice President-Finance and CFO, Frisch's Restaurants, Inc., 2800 Gilbert Avenue, Cincinnati, OH 45206, (513) 559-5200, www.frischs.com, investor.relations@frischs.com