WESTBURY, N.Y.--(BUSINESS WIRE)--June 27, 2003--Nathan's Famous,
Inc. (NASDAQ:NATH) today reported results for the fiscal year ended
March 30, 2003.
Net loss for the fifty-two weeks ended March 30, 2003 was
$13,968,000 or $2.34 per basic and diluted share as compared to net
income of $1,249,000 or $0.18 per basic and diluted share during the
fifty-three weeks ended March 31, 2002.
In the first quarter of fiscal 2003, Nathan's adopted SFAS No.
142, "Accounting for Goodwill and Other Intangibles". In connection
with the implementation of this new standard, goodwill and certain
other intangible assets were written down by $12,338,000 or $2.06 per
basic and diluted share, net of tax.
Loss from continuing operations was $1,506,000 or $0.25 per basic
and diluted share for the fifty-two weeks ended March 30, 2003 as
compared to income from continuing operations of $1,392,000 or $0.20
per basic and diluted share for the fifty-three weeks ended March 31,
2002.
During the fiscal 2003 period, income from continuing operations
before income taxes included impairment charges totaling $2,792,000
relating to seven under-performing restaurants and nine notes
receivable. Nathan's also recorded additional depreciation expense of
approximately $428,000 in connection with the early lease terminations
of its restaurants within eight Home Depot Improvement Centers.
During the fiscal 2002 period, income from continuing operations
before income taxes included gains of $1,226,000 from the sale of
three properties, impairment charges of $577,000 in connection with
long-lived assets and notes receivable, $450,000 of non-recurring
litigation expenses and the reversal of a previously recorded
litigation reserve of $210,000 in connection with the Company's
successful appeal.
Total revenues from continuing operations were $33,930,000 during
the fifty-two weeks ended March 30, 2003 as compared to $39,542,000
during the fifty-three weeks ended March 31, 2002. Fewer Company-owned
restaurants operated during the 2003 fiscal period, excluding
discontinued operations, which lowered revenues from continuing
operations by approximately $3,294,000 and improved restaurant
operating profits by $52,000 as compared to the fiscal 2002 period.
Net loss for the thirteen weeks ended March 30, 2003 was
$1,980,000 or $0.36 per basic and diluted share as compared to a net
loss of $630,000 or $0.09 per basic and diluted share during the
fourteen weeks ended March 31, 2002. Loss from continuing operations
was $2,060,000 or $0.37 per basic and diluted share for the thirteen
weeks ended March 30, 2003 as compared to a loss from continuing
operations of $438,000 or $0.06 per basic and diluted share for the
fourteen weeks ended March 31, 2002. Total revenues from continuing
operations were $7,163,000 during the thirteen weeks ended March 30,
2003 as compared to $9,209,000 during the fourteen weeks ended March
31, 2002.
The Company also reported the following:
-- Systemwide sales of the Company's products totaled
$248,722,000 for the fifty-two weeks ended March 30, 2003, as
compared to $265,478,000 for the fifty-three weeks ended March
31, 2002. Systemwide sales include franchisee restaurant sales
and supermarket sales by the Company's hot dog licensee, both
of which generate royalties for the Company as well as Company
sales of $24,920,000 and $27,492,000 during the fiscal 2003
and 2002 periods, respectively.
-- The Branded Product Program, featuring the sale of Nathan's
hot dogs to the foodservice industry, has continued to grow,
generating sales of approximately $6,509,000 during the fiscal
2003 period as compared to $4,864,000 during the fiscal 2002
period.
-- Lower revenues from franchising activities due to lower
franchise sales and royalties primarily in the Southern
Florida market and lower fees from co-branding and new store
openings as compared to the fiscal 2002 period, which included
the Company's one-time co-branding initiative within its
franchise system.
-- During the fiscal 2003 period, the Company sold one restaurant
to a franchisee and two restaurants to non-franchisees, closed
seven company-owned restaurants within Home Depot stores and
closed one other restaurant due to an early lease termination.
During fiscal 2004, Nathan's has sold two company-owned
restaurants to franchisees and is seeking to transfer the
operations of three additional company-owned restaurants to
existing franchisees.
-- The Company completed the repurchase of 1 million shares of
its common stock pursuant to its share repurchase program
adopted on September 14, 2001. The Company has also
repurchased an additional 698,838 shares pursuant to its share
repurchase program adopted on October 7, 2002 to repurchase up
to an additional 1 million shares of its common stock.
At March 30, 2003, Nathan's Famous, Inc. consisted of 343
franchised or licensed units, 12 company-owned units and over 2,200
Branded Product points of sale, located within forty-one states, the
District of Columbia and twelve foreign countries featuring the
Nathan's, Miami Subs and Kenny Rogers Roasters brands. For additional
information about Nathan's, Kenny Rogers Roasters or Miami Subs 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 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 ongoing effects of September 11, 2001, the effect of
business and economic conditions; the impact of competitive products
and pricing; capacity; the regulatory and trade environment; and the
risk factors reported from time to time in the Company's SEC reports.
Nathan's Famous, Inc.
Financial Highlights
Fiscal Year Ended
--------------------
March 30, 2003 March 31, 2002
---------------- -------------------
(Fifty-two weeks) (Fifty-three weeks)
Total revenues from
continuing operations $ 33,930,000 $39,542,000
============== ==============
(Loss) income from
continuing operations $ (1,506,000) $ 1,392,000
============== ==============
(Loss) from discontinued
operations $ (124,000) $ (143,000)
============== ==============
Cumulative effect of
change in accounting
principle, net of income taxes
of $854,000 $(12,338,000) $ --
============== ==============
Net (loss) income $(13,968,000) $ 1,249,000
============== ==============
Basic (loss) income per share
(Loss) income from continuing
operations $ ( 0.25) $ 0.20
(Loss) from discontinued
operations (0.03) (0.02)
Cumulative effect of change
in accounting principle (2.06) --
============== ==============
Net (loss) income $ (2.34) $ 0.18
============== ==============
Diluted (loss) income per share (1)
(Loss) income from continuing
operations $ ( 0.25) $ 0.20
(Loss) from discontinued
operations (0.03) (0.02)
Cumulative effect of change in
accounting principle (2.06) --
============== ==============
Net (loss) income $ (2.34) $ 0.18
============== ==============
Weighted average shares used in computing
Net (loss) income per share
Basic 5,976,000 7,048,000
============== ==============
Diluted (1) 5,976,000 7,083,000
============== ==============
1) Common stock equivalents have been excluded from the Diluted EPS
calculation for the period ended March 30, 2003 as the impact of their
inclusion would have been anti-dilutive
Nathan's Famous, Inc.
Financial Highlights
Fourth Quarter Ended
---------------------
March 30, 2003 March 31, 2002
---------------- ----------------
(Thirteen weeks) (Fourteen weeks)
Total revenues from continuing
operations $ 7,163,000 $9,209,000
============== ==============
(Loss) from continuing operations $(2,060,000) $ (438,000)
============== ==============
Income (loss) from discontinued
operations $ 80,000 $ (192,000)
============== ==============
Net (loss) $(1,980,000) $ (630,000)
============== ==============
Basic (loss) per share
(Loss) from continuing operations $ (0.37) $ (0.06)
Income (loss) from discontinued
operations .01 (0.03)
============== ==============
Net (loss) $ (0.36) $ (0.09)
============== ==============
Diluted (loss) per share (1)
(Loss) from continuing operations $ (0.37) $ (0.06)
Income (loss) from discontinued
operations 0.01 (0.03)
============== ==============
Net (loss) $ (0.36) $ (0.09)
============== ==============
Weighted average shares used in computing
Net (loss) income per share
Basic 5,568,000 7,024,000
============== ==============
Diluted (1) 5,568,000 7,107,000
============== ==============
(1) Common stock equivalents have been excluded from the Diluted EPS
calculation for the period ended March 30, 2003 as the impact of their
inclusion would have been anti-dilutive.
CONTACT: Nathan's Famous, Inc.
Ronald G. DeVos, 516/338-8500 ext. 229
SOURCE: Nathan's Famous, Inc.
