CINCINNATI, Oct. 27 /PRNewswire-FirstCall/ -- Frisch's Restaurants, Inc. (NYSE Amex: FRS) reported significantly higher earnings for its 16-week fiscal first quarter ended September 22, 2009. Net earnings for the quarter increased 37.4% to $2,987,665 compared to $2,175,060 last year. Diluted earnings per share increased to $.57 per share, from $.42 per share last year. Revenues declined slightly to $88,982,102 from $89,881,631 for last year's first quarter. Craig F. Maier, President and Chief Executive Officer, said, "Same store sales at our Big Boy Restaurants decreased 0.1% in our fiscal first quarter. Even though Big Boy sales declined slightly, the cost of food declined to a point that earnings improved significantly." Maier added, "Also on the bright side, our Golden Corral restaurants continued to post improved earnings during the first quarter. This marks the third straight quarter of positive earnings for our Golden Corrals. The higher earnings came despite a same store sales decline of 2.4%. " The increase in earnings for the quarter can mostly be attributed to a drop in food cost as commodity prices have drifted lower throughout much of 2009. The earnings improvement was also helped by lower utility costs and payroll expense; although payroll related items such as medical plan and pension expenses rose to offset the reduction in payrolls. The Company did not open any restaurants in the first quarter. Frisch's operates 88 company-owned Big Boy restaurants and there are an additional 26 franchised Big Boy restaurants operated by licensees. The Company also operates 35 Golden Corral restaurants. 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) Sixteen Weeks ended Sept. 22, Sept. 23, 2009 2008 ---- ---- Sales $88,982 $89,882 Cost of sales Food and paper 30,274 33,273 Payroll and related 29,705 29,597 Other operating costs 20,017 20,439 ------ ------ 79,996 83,309 Gross profit 8,986 6,573 Administrative and advertising 4,454 4,438 Franchise fees and other revenue (392) (401) (Gains) losses on sale of assets - (1,116) --- ------ Operating profit 4,924 3,652 Interest expense 531 589 --- --- Earnings before income tax 4,393 3,063 Income taxes 1,405 888 ----- --- NET EARNINGS $2,988 $2,175 ====== ====== Earnings per share (EPS) of common stock: Basic net earnings per share $.59 $.43 ==== ==== Diluted net earnings per share $.57 $.42 ==== ==== Diluted average shares outstanding 5,224 5,181 ===== ===== Depreciation included above $4,221 $4,085 ====== ====== Opening expense included above $14 $329 === ==== Frisch's Restaurants, Inc. and Subsidiaries CONSOLIDATED BALANCE SHEET (In thousands of dollars) September 22, June 2, 2009 2009 (unaudited) --------- -------- Assets Current assets Cash and equivalents $1,965 $899 Receivables 1,405 1,549 Inventories 5,007 6,531 Other current assets 3,236 2,480 ----- ----- 11,613 11,459 Property and equipment 160,931 157,638 Other assets Goodwill & other intangible assets 1,522 1,548 Property held for sale and land investments 3,645 3,218 Deferred income taxes and other 3,642 3,113 ----- ----- 8,809 7,879 ----- ----- $181,353 $176,976 ======== ======== Liabilities and shareholders' equity Current liabilities Accounts payable $10,620 $8,038 Accrued expenses 8,546 11,555 Other 9,007 8,418 ----- ----- 28,173 28,011 Long-term obligations Long-term debt 23,310 21,962 Other long-term obligations 13,349 12,626 ------ ------ 36,659 34,588 Shareholders' equity 116,521 114,377 ------- ------- $181,353 $176,976 ======== ======== DATASOURCE: Frisch's Restaurants, Inc. CONTACT: Donald H. Walker, Vice President-Finance and CFO, Frisch's Restaurants, Inc., +1-513-559-5202 Web Site: