WESTBURY, N.Y.--(BUSINESS WIRE)--June 24, 2004--Nathan's Famous,
Inc. (NASDAQ:NATH) today reported results for its fiscal year ended
March 28, 2004.
Net income for the fifty-two weeks ended March 28, 2004 was
$1,894,000 or $0.36 per basic share and $0.33 per diluted share as
compared to a net loss of $13,968,000 or $2.34 per basic and diluted
share for the fifty-two weeks ended March 30, 2003. Earnings from
continuing operations was $1,894,000 or $0.36 per basic share and
$0.33 per diluted share for the fifty-two weeks ended March 28, 2004
as compared to a loss from continuing operations of $1,506,000 or
$0.25 per basic and diluted share for the fifty-two weeks ended March
30, 2003.
During the fifty-two weeks ended March 28, 2004, Nathan's recorded
impairment charges on notes receivable of $208,000 and impairment
charges on long-lived assets of $25,000. During the fifty-two weeks
ended March 30, 2003, Nathan's recorded impairment charges on notes
receivable of $1,425,000, impairment charges on long-lived assets of
$1,367,000 and realized a gain of $135,000 from the early termination
of a sales agreement for its Branded Product Program.
During the fifty-two weeks ended March 30, 2003, Nathan's adopted
SFAS No. 142, "Goodwill and Other Intangible Assets". 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.
Total revenue from continuing operations was $30,679,000 during
the fifty-two weeks ended March 28, 2004 as compared to $33,772,000
during the fifty-two weeks ended March 30, 2003. This revenue decline
was primarily attributable to the franchising of six Company-owned
restaurants and sale of one restaurant. Company-owned restaurant sales
were lower by approximately $5,323,000 although restaurant operating
profits improved by approximately $43,000 (excluding $144,000 of
royalties earned from the six franchised restaurants and related G&A
savings) as compared to the fifty-two weeks ended March 30, 2003.
Net income for the quarter ended March 28, 2004 was $57,000 or
$0.01 per basic and diluted share as compared to a net loss of
$1,980,000 or $0.36 per basic and diluted share for the quarter ended
March 30, 2003. Earnings from continuing operations was $57,000 or
$0.01 per basic and diluted share for the quarter ended March 28, 2004
as compared to loss from continuing operations of $2,060,000 or $0.37
per basic and diluted share for the quarter ended March 30, 2003.
Total revenue from continuing operations was $6,474,000 during the
quarter ended March 28, 2004 as compared to $7,124,000 during the
quarter ended March 30, 2003.
The Company also reported the following:
-- The Branded Product Program, featuring the sale of Nathan's
hot dogs to the foodservice industry, has continued its
growth, generating sales of approximately $7,651,000 during
the fifty-two weeks ended March 28, 2004 as compared to
$6,351,000 for the fifty-two weeks ended March 30, 2003,
representing a 20.5% increase.
-- License royalties were $2,970,000 during the fifty-two weeks
ended March 28, 2004, representing an increase of $385,000
from the prior year due to the addition of new license
agreements for the sale of Nathan's products.
-- General and administrative expenses were reduced by $1,081,000
or 12.6% during the fifty-two weeks ended March 28, 2004 due
in part to the Company's personnel reduction plan implemented
in connection with the reduced number of company-operated
restaurants.
-- To date, the Company has also repurchased an additional
851,301 shares of common stock pursuant to its share
repurchase program adopted on October 7, 2002 to repurchase up
to an additional 1 million shares of its common stock. These
purchases are in addition to the previously completed
repurchase of 1 million shares of its common stock pursuant to
its share repurchase program adopted on September 14, 2001.
-- Since the USDA announced that a single cow tested positive for
BSE on December 23, 2003, the demand for Nathan's products has
continued to be strong. Nathan's has not experienced any
material financial impact in connection with this incident.
At March 28, 2004, Nathan's Famous, Inc. consisted of 338
franchised units, including 6 units operating pursuant to management
agreements, 7 company-owned units and more than 3,300 Branded Product
points of sale, located in 44 states, the District of Columbia and 12
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 future effects of the first case of BSE identified in
the United States, 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
Mar. 28, 2004 Mar. 30, 2003
Total revenues from continuing
operations $30,679,000 $ 33,772,000
Income (loss) from continuing
operations $ 1,894,000 $ (1,506,000)
Loss from discontinued operations $ - $ (124,000)
Cumulative effect of change in
accounting principle,
net of income tax benefit of $854,000 $ - $(12,338,000)
Net income (loss) $ 1,894,000 $(13,968,000)
Basic income (loss) per share
Income from continuing operations $ 0.36 $ (0.25)
Loss from discontinued operations - (0.03)
Cumulative effect of change in
accounting principle - (2.06)
Net income (loss) $ 0.36 $ (2.34)
Diluted income (loss) per share (1)
Income from continuing operations $ 0.33 $ (0.25)
Loss from discontinued operations - (0.03)
Cumulative effect of change in
accounting principle - (2.06)
Net income (loss) $ 0.33 $ (2.34)
Weighted-average shares used in
computing income (loss) per share
Basic 5,306,000 5,976,000
Diluted (1) 5,678,000 5,976,000
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.
Fourth Quarter Ended
Mar. 28, 2004 Mar. 30, 2003
Total revenues from continuing
operations $ 6,474,000 $ 7,124,000
Income (loss) from continuing
operations $ 57,000 $ (2,060,000)
Income from discontinued operations $ - $ 80,000
Net income (loss) $ 57,000 $ (1,980,000)
Basic income (loss) per share
Income (loss) from continuing
operations $ 0.01 $ (0.37)
Income from discontinued operations - 0.01
Net Income (loss) $ 0.01 $ (0.36)
Diluted income (loss) per share (1)
Income (loss) from continuing
operations $ 0.01 $ (0.37)
Income from discontinued
operations - 0.01
Net Income (loss) $ 0.01 $ (0.36)
Weighted-average shares used in computing
income (loss) per share
Basic 5,255,000 5,568,000
Diluted (1) 5,901,000 5,568,000
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.
