CINCINNATI, Jan. 20 /PRNewswire-FirstCall/ -- Frisch's Restaurants,
Inc. (NYSE Alternext US: FRS) reported higher earnings for its
12-week fiscal second quarter ended December 16, 2008. Net earnings
for the quarter increased 2.2% to $2,215,787 compared to $2,168,015
last year. Diluted earnings per share increased to $.43 per share,
from $.41 per share last year. Sales declined a modest 0.2% to
$69,093,061 from $69,213,384 for last year's second quarter. For
the first half of fiscal 2009, sales were a record $158,974,692
rising 0.1% from $158,739,828 for the first half of last year.
Earnings decreased 4.9% to $4,390,847 from $4,618,500. Diluted
earnings per share declined to $.85 from $.88 last year. Craig F.
Maier, President and Chief Executive Officer, said, "Same store
sales at our Big Boy Restaurants increased a modest 0.6% in the
second quarter. The sluggish Midwest economy continues to drive
down customer traffic in our restaurants." Maier added, "Our Golden
Corral restaurants posted a same store sales decline of 2.2% during
the second quarter. The recession in the Midwest has had an even
stronger negative impact on the sales of our Golden Corrals." One
new Big Boy restaurant opened during the second quarter. No Golden
Corral restaurants were opened during the second quarter. Frisch's
operates 35 Golden Corral restaurants and 89 company-owned Big Boy
restaurants, and there are an additional 26 franchised Big Boy
restaurants operated by licensees. The lower earnings for the first
half of the year can be attributed to higher food cost in the Big
Boy restaurants and lower sales in the Golden Corral operations.
Frisch's Restaurants, Inc. is a regional company that operates full
service family-style restaurants under the name "Frisch's Big Boy."
The Company also operates grill buffet style restaurants under the
name "Golden Corral" pursuant to certain licensing agreements. All
Big Boy restaurants are currently located in various regions of
Ohio, Kentucky and Indiana. Golden Corral restaurants currently
operate primarily in the greater metropolitan areas of Cincinnati,
Cleveland, Columbus, Dayton and Toledo, Ohio, Louisville, Kentucky
and Pittsburgh, Pennsylvania. 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 Big Boy restaurants to other
operators, currently in certain parts of Ohio, Kentucky and
Indiana. 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 press
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. Frisch's Restaurants, Inc. and
Subsidiaries CONSOLIDATED STATEMENT OF EARNINGS (unaudited) (In
thousands, except per share data) Twenty-eight weeks ended Twelve
weeks ended December December December December 16, 11, 16, 11,
2008 2007 2008 2007 Sales $158,975 $158,740 $69,093 $69,213 Cost of
sales Food and paper 57,747 55,952 24,473 24,355 Payroll and
related 52,148 52,490 22,551 22,711 Other operating costs 35,870
35,559 15,431 15,198 145,765 144,001 62,455 62,264 Gross profit
13,210 14,739 6,638 6,949 Administrative and advertising 7,746
7,830 3,308 3,483 Franchise fees and other revenue (692) (679)
(291) (301) Gains on sale of assets (1,116) (525) - - Operating
profit 7,272 8,113 3,621 3,767 Interest expense 1,087 1,320 499 578
Earnings before income tax 6,185 6,793 3,122 3,189 Income taxes
1,794 2,174 906 1,021 NET EARNINGS $4,391 $4,619 $2,216 $2,168
Earnings per share (EPS) of common stock: Basic net earnings per
share $.86 $.90 $.43 $.42 Diluted net earnings per share $.85 $.88
$.43 $.41 Diluted average shares outstanding 5,166 5,253 5,144
5,253 Depreciation included above $7,265 $7,492 $3,180 $3,264
Opening expense included above $531 $605 $202 $20 Frisch's
Restaurants, Inc. and Subsidiaries CONSOLIDATED BALANCE SHEET (In
thousands of dollars) December 16, June 3, 2008 2008 (unaudited)
Assets Current assets Cash and equivalents $332 $801 Receivables
1,449 1,448 Inventories 6,064 5,648 Other current assets 3,122
2,797 10,967 10,694 Property and equipment 158,584 153,839 Other
assets Goodwill & other intangible assets 1,587 1,633 Property
held for sale and land investments 2,743 3,870 Other 1,685 2,024
6,015 7,527 $175,566 $172,060 Liabilities and shareholders' equity
Current liabilities Accounts payable $11,331 $10,281 Accrued
expenses 10,867 10,675 Other 9,401 9,880 31,599 30,836 Long-term
obligations Long-term debt 25,005 24,217 Other long-term
obligations 5,686 6,292 30,691 30,509 Shareholders' equity 113,276
110,715 $175,566 $172,060 DATASOURCE: Frisch's Restaurants, Inc.
CONTACT: Donald H. Walker, Vice President-Finance and CFO, Frisch's
Restaurants, Inc., +1-513-559-5202 Web Site:
http://www.frischs.com/
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