WESTBURY, N.Y.--(BUSINESS WIRE)--June 6, 2008--Nathan's Famous,
Inc. (NASDAQ:NATH) today reported results for its fiscal year ended
March 30, 2008.
For the fifty-three weeks ended March 30, 2008, income from
continuing operations increased by 11.7% to $4,849,000, or $0.75 per
share as compared to $4,341,000 or $0.68 per share for the fifty-two
weeks ended March 25, 2007. Total revenue from continuing operations
increased by 10.3% to $47,395,000 for the fifty-three weeks ended
March 30, 2008 as compared to $42,969,000 during fifty-two weeks ended
March 25, 2007.
These results represent Nathan's fifth consecutive year of
increased revenues and profits from continuing operations.
Net income for the fifty-three weeks ended March 30, 2008
increased by 18.3% to $6,555,000 or $1.01 per share as compared to
$5,543,000 or $0.87 per share for the fifty-two weeks ended March 25,
2007.
During the current fiscal year, Nathan's realized gains from the
sale of certain leasehold interests in Florida and from the sale of
its formerly wholly-owned subsidiary, Miami Subs Corporation. These
gains amounted to $2,489,000 before tax and $1,576,000 after tax or
$0.24 per share. During the fifty-two weeks ended March 25, 2007,
Nathan's realized a one-time gain relating to the sale of a leasehold
interest in the amount of $400,000 before tax and $239,000 after tax
or $0.04 per share.
For the fourteen weeks ended March 30, 2008, income from
continuing operations was $774,000, or $.12 per share as compared to
$824,000 or $0.13 per share for the thirteen weeks ended March 25,
2007. Total revenue from continuing operations increased by 14.6% to
$10,274,000, as compared to $8,962,000 during the thirteen weeks ended
March 25, 2007.
Net income for the fourteen weeks ended March 30, 2008 was
$752,000 or $0.12 per share, as compared to $1,242,000 or $0.19 per
share for the thirteen weeks ended March 25, 2007. Discontinued
operations for the thirteen weeks ended March 25, 2007 was $418,000 or
$0.06 per share.
In addition, Nathan's Board of Directors has approved the
amendment of Nathan's existing shareholder rights plan to accelerate
the final expiration date of the common stock purchase rights to June
4, 2008, thereby terminating the existing rights, as well as the
adoption of a new stockholder rights plan (the "New Rights Plan")
under which all stockholders of record as of June 5, 2008 will receive
rights to purchase shares of common stock (the "Rights"). The New
Rights Plan will replace and update the Company's existing rights
plan, which was in place since 1995, and which was previously
scheduled to expire on June 19, 2010.
The Rights will be distributed as a dividend. Initially, the
Rights will attach to, and trade with, the Company's common stock.
Subject to the terms, conditions and limitations of the New Rights
Plan, the Rights will become exercisable if (among other things) a
person or group acquires 15% or more of the Company's common stock.
Upon such an event and payment of the purchase price, each Right
(except those held by the acquiring person or group) will entitle the
holder to acquire shares of the Company's common stock (or the
economic equivalent thereof) having a value equal to the purchase
price. The Company's board of directors may redeem the Rights prior to
the time they are triggered.
In the event of an unsolicited attempt to acquire the Company, the
New Rights Plan is intended to facilitate the full realization of
stockholder value in the Company and the fair and equal treatment of
all Company stockholders. The New Rights Plan will not prevent a
takeover attempt. Rather, it is intended to guard against abusive
takeover tactics and encourage anyone seeking to acquire the Company
to negotiate with the board of directors. The Company did not adopt
the Rights Plan in response to any particular proposal.
The New Rights Plan will be outlined in greater detail in a
summary that will be mailed to stockholders as of the record date. In
addition, the Company will file a copy of the New Rights Plan with the
Securities and Exchange Commission as an exhibit to the Company's
Current Report on Form 8-K.
The Company also reported the following:
- Revenues and operating profits from Nathan's company-owned
restaurants, restaurant franchising, retail licensing and
sales to our television marketer increased by $2,018,000 or
8.6% and $1,357,000 or 12.5%, respectively, for the
fifty-three weeks ended March 30, 2008 as compared to the
fifty-two weeks ended March 25, 2007.
- The Branded Product Program, featuring the sale of Nathan's
hot dogs to the foodservice industry, has continued to grow
over the prior year. Sales increased by 10.0% to $20,647,000
for the fifty-three weeks ended March 30, 2008 as compared to
sales of $18,774,000 for the fifty-two weeks ended March 25,
2007.
- Nathan's created a new Limited-menu "Frank & Fry" franchise
program to enable qualified foodservice operators the ability
to offer Nathan's hot dogs, crinkle cut French fries and a
number of other Nathan's proprietary menu items. Nathan's
opened 28 of these units during the fiscal year.
- The Board of Directors authorized management to enter into a
10b5-1 trading plan to purchase shares of its common stock in
order to effect Nathan's previously-announced stock buy-back
program.
About Nathan's Famous
Nathan's products are currently distributed in 50 states, the
District of Columbia and four foreign countries through its restaurant
system, Branded Product Program and retail licensing activities. The
Nathan's restaurant system currently consists of 234 units, comprised
of 228 franchised or licensed units and six company-owned units
(including one seasonal unit). For additional information about
Nathan's please visit our website at www.nathansfamous.com.
Except for historical information contained in this news release,
the matters discussed are forward looking statements that involve
risks and uncertainties. Words such as "anticipate," "believe,"
"estimate," "expect," "intend", and similar expressions identify
forward-looking statements, which are based on the current belief of
the Company's management, as well as assumptions made by and
information currently available to the Company's management. Among the
factors that could cause actual results to differ materially are the
following: the effect of business and economic conditions; the impact
of competitive products and pricing; the ability to obtain an adequate
supply of beef and other food products at competitive prices;
capacity; the regulatory and trade environment; and the risk factors
reported from time to time in the Company's SEC reports. The Company
does not undertake any obligation to update such forward-looking
statements.
Nathan's Famous, Inc.
Financial Highlights
Fourteen Thirteen
weeks ended weeks ended
------------- -------------
(unaudited)
Mar. 30, 2008 Mar. 25, 2007
------------- -------------
Total revenues from continuing operations $ 10,274,000 $ 8,962,000
============= =============
Income from continuing operations 774,000 824,000
(Loss) income from discontinued operations (22,000) 418,000
------------- -------------
Net income $ 752,000 $ 1,242,000
============= =============
Basic income per share
Income from continuing operations $ 0.12 $ 0.14
(Loss) income from discontinued
operations (0.00) 0.07
------------- -------------
Net income $ 0.12 $ 0.21
============= =============
Diluted income per share
Income from continuing operations $ 0.12 $ 0.13
(Loss) income from discontinued
operations (0.00) 0.06
------------- -------------
Net income $ 0.12 $ 0.19
============= =============
Weighted-average shares used in computing
income per share
Basic 6,109,000 5,945,000
============= =============
Diluted 6,457,000 6,430,000
============= =============
Nathan's Famous, Inc.
Financial Highlights
Fifty-three Fifty-two
weeks ended weeks ended
--------------- --------------
(unaudited)
Mar. 30, 2008 Mar. 25, 2007
--------------- --------------
Total revenues from continuing
operations $ 47,395,000 $ 42,969,000
=============== ==============
Income from continuing operations 4,849,000 4,341,000
Income from discontinued operations 1,706,000 1,202,000
--------------- --------------
Net income $ 6,555,000 $ 5,543,000
=============== ==============
Basic income per share
Income from continuing operations $ 0.80 $ 0.74
Income from discontinued operations 0.28 0.21
--------------- --------------
Net income $ 1.08 $ 0.95
=============== ==============
Diluted income per share
Income from continuing operations $ 0.75 $ 0.68
Income from discontinued operations 0.26 0.19
--------------- --------------
Net income $ 1.01 $ 0.87
=============== ==============
Weighted-average shares used in
computing income per share
Basic 6,085,000 5,836,000
=============== ==============
Diluted 6,502,000 6,341,000
=============== ==============
CONTACT: Nathan's Famous, Inc.
Ronald G. DeVos, 516-338-8500 ext. 229
Vice President - Finance and CFO
SOURCE: Nathan's Famous, Inc.
