Delaware
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1-3189
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11-3166443
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(State or other jurisdiction
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(Commission
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(IRS Employer
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of incorporation)
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File Number)
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Identification No.)
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One Jericho Plaza, Jericho, New York
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11753
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(Address of principal executive offices)
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(Zip Code)
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o
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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o
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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o
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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o
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Pre-commencement communications pursuant to Rule 13e-14(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Item 2.02.
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Results of Operations and Financial Condition. |
Item 9.01.
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Financial Statements and Exhibits.
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Exhibit No.
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Description
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99.1 | Press release dated August 3, 2011 |
NATHAN'S FAMOUS, INC.
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|||
By:
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/s/ Ronald DeVos | ||
Ronald DeVos
Vice-President Finance
and Chief Financial Officer
(Principal Financial and Accounting Officer)
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FOR: |
NATHAN'S FAMOUS, INC.
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COMPANY
CONTACT:
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Ronald G. DeVos, Vice President - Finance and CFO
(516) 338-8500 ext. 229
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●
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Net income was $1,596,000 or $0.31 per diluted share as compared to $1,660,000 or $0.29 per diluted share for the thirteen weeks ended June 27, 2010;
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●
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Earnings before income taxes increased by 2.9% to $2,591,000 as compared to $2,517,000 for the thirteen weeks June 27, 2010;
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●
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Non-GAAP earnings, which exclude the litigation expense items described below, were $1,666,000 or $0.32 per diluted share; and
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Revenues increased by 14.5% to $17,897,000, as compared to $15,626,000 during the thirteen weeks ended June 27, 2010.
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Sales from the Branded Product Program, featuring the sale of Nathan’s hot dogs to the foodservice industry, increased by 29.2% to $10,140,000 during the thirteen weeks ended June 26, 2011 as compared to sales of $7,850,000 during the thirteen weeks ended June 27, 2010.
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●
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Retail license royalties increased by 9.3% or $168,000 to $1,967,000 during the thirteen weeks ended June 26, 2011 as compared to $1,799,000 during the thirteen weeks ended June 27, 2010.
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●
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Revenues from franchise operations increased by 14.3% or $180,000 to $1,435,000 during the thirteen weeks ended June 26, 2011 as compared to $1,255,000 during the thirteen weeks ended June 27, 2010. Fourteen new franchised units were opened during the thirteen weeks ended June 26, 2011, including our first restaurant in Alberta, Canada, third restaurant in Beijing, China, fourth restaurant in the Dominican Republic and fifteenth restaurant in Kuwait.
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●
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Gross profit was 18.7% of sales as compared to 23.2% of sales during the thirteen weeks ended June 27, 2010 due primarily to unusually high beef costs.
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The effective tax rate of 38.4% is approximately 4.4% higher than for the thirteen weeks ended June 27, 2010 when we resolved uncertain tax positions, reversing $79,000 of prior period accruals.
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During the thirteen weeks ended June 26, 2011, we continued our stock repurchase programs, acquiring 31,569 shares at a total cost of approximately $573,000.
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Thirteen weeks ended
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||||||||
June 26, 2011
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June 27, 2010 | |||||||
(unaudited) | ||||||||
Total revenues
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$ | 17,897,000 | $ | 15,626,000 | ||||
Net income
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$ | 1,596,000 | $ | 1,660,000 | ||||
Basic income per share
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||||||||
Net income
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$ | 0.31 | $ | 0.30 | ||||
Diluted income per share
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||||||||
Net income
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$ | 0.31 | $ | 0.29 | ||||
Weighted-average shares used in computing income per share
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||||||||
Basic
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5,078,000 | 5,594,000 | ||||||
Diluted
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5,201,000 | 5,694,000 |
Thirteen weeks ended
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||||||||
June 26, 2011 | June 27, 2010 | |||||||
(unaudited) | ||||||||
NET INCOME
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||||||||
Net income
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$ | 1,596,000 | $ | 1,660,000 | ||||
Legal expense (a), (net of tax)
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3,000 | 63,000 | ||||||
Interest expense (b), (net of tax)
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67,000 | - | ||||||
Non-GAAP income
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$ | 1,666,000 | $ | 1,723,000 |
DILUTED INCOME PER SHARE
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||||||||
Net income
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$ | 0.31 | $ | 0.29 | ||||
Legal expense (a), (net of tax)
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- | 0.01 | ||||||
Interest expense (b), (net of tax)
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0.01 | - | ||||||
Non-GAAP income per share
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$ | 0.32 | $ | 0.30 |
(a)
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Represents legal expense incurred in connection with the SMG matter during the respective periods.
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(b)
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Represents accrued interest expense incurred in connection with Nathan’s appeal of the SMG damages award.
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