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| Nathan's Famous, Inc. Reports First Quarter Results |
WESTBURY, N.Y.--(BUSINESS WIRE)--Aug. 12, 2003--Nathan's Famous, Inc. (Nasdaq: NATH) today reported results for the first quarter of its 2004 fiscal year ended June 29, 2003. Net income for the quarter ended June 29, 2003 was $744,000 or $0.14 per basic and diluted share as compared to net loss of $11,992,000 or $1.89 per basic share and $1.82 per diluted share for the quarter ended June 30, 2002. Earnings from continuing operations was $744,000 or $0.14 per basic and diluted share for the quarter ended June 29, 2003 as compared to $292,000 or $0.04 per basic and diluted share for the quarter ended June 30, 2002. In the first quarter ended June 30, 2002, 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 $1.94 per basic share and $1.87 per diluted share, net of tax. During the first quarter ended June 30, 2002, Nathan's recorded impairment charges on long-lived assets of $421,000 relating to three under-performing restaurants and realized a gain of $135,000 from the early termination of a sales agreement for its Branded Product Program. Total revenues from continuing operations were $9,018,000 in the first quarter ended June 29, 2003 as compared to $9,666,000 in the first quarter ended June 30, 2002. Systemwide sales of the Company's brands, including supermarket sales by the Company's hot dog licensee, were $61,442,000 for the thirteen weeks ended June 29, 2003, as compared to $67,400,000 for the thirteen weeks ended June 30, 2002.
The Company also reported the following:
-- Fewer Company-owned restaurants operated during the quarter
ended June 29, 2003, which lowered revenues from continuing
operations by approximately $985,000 and lowered restaurant
operating profits by approximately $3,000 (excluding royalties
earned from four Company-owned restaurants that were
franchised) as compared to the quarter ended June 30, 2002.
-- The Branded Product Program, featuring the sale of Nathan's
hot dogs to the foodservice industry, has continued its
growth, generating sales of approximately $2,247,000 during
the quarter ended June 29, 2003 as compared to $1,666,000,
representing a 34.9% increase over the quarter ended June 30,
2002.
-- Higher revenues from franchising activities due to higher fees
from new unit openings offset lower franchise royalties due to
lower franchise sales primarily in the Southern Florida
market.
-- Higher license royalties from the addition of new license
agreements for the sale of Nathan's products.
-- 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 745,519 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 June 29, 2003, Nathan's Famous, Inc. consisted of 349 franchised or licensed units, 9 company-owned units and more than 2,500 Branded Product points of sale, located throughout 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 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
Thirteen weeks Ended
--------------------
(unaudited)
June 29, 2003 June 30, 2002
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Total revenues from continuing
operations $9,018,000 $ 9,666,000
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Income from continuing operations $ 744,000 $ 292,000
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Income from discontinued operations $ - $ 54,000
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Cumulative effect of change in
accounting principle, net of
income tax benefit of $854,000 in 2002 $ - $(12,338,000)
---------- -----------
Net income (loss) $ 744,000 $(11,992,000)
---------- -----------
Basic income (loss) per share
Income from continuing operations $ 0.14 $ 0.04
Income from discontinued operations - 0.01
Cumulative effect of change in
accounting principle - (1.94)
---------- -----------
Net income (loss) $ 0.14 $ (1.89)
---------- -----------
Diluted income (loss) per share
Income from continuing operations $ 0.14 $ 0.04
---------- -----------
Income from discontinued operations - 0.01
Cumulative effect of change in
accounting principle - (1.87)
---------- -----------
Net income (loss) $ 0.14 $ (1.82)
---------- -----------
Weighted-average shares used in computing
net income (loss) per share
Basic 5,370,000 6,354,000
---------- -----------
Diluted 5,478,000 6,573,000
---------- -----------
CONTACT: Nathan's Famous, Inc.
Ronald G. DeVos, 516-338-8500 ext. 229
SOURCE: Nathan's Famous, Inc.
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