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Flanigan\'s Enterprises Inc Reports Operating Results (10-Q)

August 11, 2009 | About:
10qk

Flanigan\'s Enterprises Inc (BDL) filed Quarterly Report for the period ended 2009-06-30.

Flanigan\'s Enterprises Inc. owns and/or operates restaurants with lounges package liquor stores and an entertainment oriented clubs (collectively the ``units``). All of the Company\'s package liquor stores restaurants and clubs are operated on leased properties. They operate under the names ``Flanigan\'s Seafood Bar and Grill\'\' restaurants and ``Big Daddy\'s\'\' retail liquor stores. Flanigan\'s Enterprises Inc has a market cap of $9.67 million; its shares were traded at around $5.1882 with a P/E ratio of 8.24 and P/S ratio of 0.15.

Highlight of Business Operations:

Revenues. Total revenue for the thirteen weeks ended June 27, 2009 increased

$726,000 or 4.61% to $16,491,000 from $15,765,000 for the thirteen weeks ended

June 28, 2008. This increase resulted from sales from the Davie, Florida limited

partnership restaurant ($952,000), which opened for business on July 28, 2008,

and the increase in same store package liquor sales ($83,000), offset by

declines in same store restaurant food and bar sales ($291,000). Without giving

effect to the revenue generated from the Davie, Florida restaurant ($952,000),

total revenue for the thirteen weeks ended June 27, 2009 would have decreased

$226,000 or 1.43% to $15,539,000 from $15,765,000 for the thirteen weeks ended

June 28, 2008.



Restaurant Food Sales. Restaurant revenue generated from the sale of food

at restaurants totaled $10,653,000 for the thirteen weeks ended June 27, 2009 as

compared to $10,182,000 for the thirteen weeks ended June 28, 2008. The increase

in restaurant food sales resulted from sales from the Davie, Florida restaurant,

which generated $780,000 of revenue from the sale of food during the thirteen

weeks ended June 27, 2009. Without giving effect to the revenue generated from

the Davie, Florida restaurant ($780,000) from the sale of food for the thirteen

weeks ended June 27, 2009, restaurant revenue generated from the sale of food

during the thirteen weeks ended June 27, 2009, would have decreased $309,000 or

3.03% to $9,873,000 from $10,182,000 for the thirteen weeks ended June 28, 2008.

Comparable weekly restaurant food sales (for restaurants open for all of the

third quarter of our fiscal year 2009 and the third quarter of our fiscal year

2008, which consists of seven restaurants owned by us and eight restaurants

owned by affiliated limited partnerships) was $759,000 and $783,000 for the

thirteen weeks ended June 27, 2009 and June 28, 2008, respectively, a decrease

of 3.07%. We attribute this decline primarily to the current domestic and global

economic downturn. Comparable weekly restaurant food sales for Company owned

restaurants only was $310,000 and $330,000 for the third quarter of our fiscal

year 2009 and the third quarter of our fiscal year 2008, respectively, a

decrease of 6.06%. Comparable weekly restaurant food sales for affiliated

limited partnership owned restaurants only was $449,000 and $453,000 for the

third quarter of our fiscal year 2009 and the third quarter of our fiscal year

2008, respectively, a decrease of 0.88%. We anticipate that restaurant food

sales will decrease throughout the balance of our fiscal year 2009 due to a

decline in same store restaurant food sales, offset by the operation of the

Davie, Florida restaurant for the entire fourth quarter of our fiscal year 2009.



Restaurant Bar Sales. Restaurant revenue generated from the sale of

alcoholic beverages at restaurants (bar sales) totaled $2,536,000 for the

thirteen weeks ended June 27, 2009 as compared to $2,346,000 for the thirteen

weeks ended June 28, 2008. The increase in restaurant bar sales is due to sales

from the Davie, Florida restaurant, which generated $171,000 of revenue from bar

sales during the thirteen weeks ended June 27, 2009. Without giving effect to

the revenue from bar sales generated from the Davie, Florida restaurant

($171,000) for the thirteen weeks ended June 27, 2009, restaurant revenue

generated from bar sales during the thirteen weeks ended June 27, 2009, would

have increased $19,000 or 0.81% to $2,365,000 from $2,346,000 for the thirteen

weeks ended June 28, 2008. Comparable weekly restaurant bar sales (for

restaurants open for all of the third quarter of our fiscal year 2009 and the

third quarter of our fiscal year 2008, which consists of seven restaurants owned

by us and eight restaurants owned by affiliated limited partnerships) was

$182,000 for the thirteen weeks ended June 27, 2009 and $180,000 for the

thirteen weeks ended June 28, 2008, an increase of 1.11%. Comparable weekly

restaurant bar sales for Company owned restaurants only was $75,000 and $74,000

for the third quarter of our fiscal year 2009 and the third quarter of our

fiscal year 2008, respectively, an increase of 1.35%. Comparable weekly

restaurant bar sales for affiliated limited partnership owned restaurants only

was $107,000 and $106,000 for the third quarter of our fiscal year 2009 and the

third quarter of our fiscal year 2008, respectively, an increase of 0.94%. We

anticipate that restaurant bar sales will continue to increase throughout the

balance of our fiscal year 2009 due to, primarily, the operation of the Davie,

Florida restaurant for the entire fourth quarter of our fiscal year 2009.



weeks ended June 27, 2009 as compared to $30,714,000 for the thirty nine weeks

ended June 28, 2008, an increase of $1,306,000 or 4.25%. The increase in

restaurant food sales resulted from sales from the Davie, Florida restaurant,

which generated $2,430,000 of revenue from the sale of food during the thirty

nine weeks ended June 27, 2009. Without giving effect to the revenue generated

from the Davie, Florida restaurant ($2,430,000) from the sale of food for the

thirty nine weeks ended June 27, 2009, restaurant revenue generated from the

sale of food during the thirty nine weeks ended June 27, 2009, would have

decreased $1,124,000 or 3.66% to $29,590,000 from $30,714,000 for the thirty

nine weeks ended June 28, 2008. Comparable weekly restaurant food sales (for

restaurants open for all of the thirty nine weeks ended June 27, 2009 and the

thirty nine weeks ended June 28, 2008, which consists of seven restaurants owned

by us and seven restaurants owned by affiliated limited partnerships) was

$712,000 and $735,000 for the thirty nine weeks ended June 27, 2009 and June 28,

2008, respectively, a decrease of 3.13%. We attribute this decline primarily to

the current domestic and global economic downturn. Comparable weekly restaurant

food sales for Company owned restaurants only was $313,000 and $331,000 for the

thirty nine weeks ended June 27, 2009 and June 28, 2008, respectively, a

decrease of 5.44%. Comparable weekly restaurant food sales for affiliated

limited partnership owned restaurants only was $399,000 and $404,000 for the

thirty nine weeks ended June 27, 2009 and June 28, 2008, respectively, a

decrease of 1.24%. We anticipate that restaurant food sales will decrease

throughout the balance of our fiscal year 2009 due to a decline in same store

restaurant food sales, offset by the operation of the Davie, Florida restaurant

for the entire fourth quarter of our fiscal year 2009.



Restaurant Bar Sales. Restaurant revenue generated from the sale of alcoholic

beverages at restaurants (bar sales) totaled $7,608,000 for the thirty nine

weeks ended June 27, 2009 as compared to $7,117,000 for the thirty nine weeks

ended June 28, 2008, an increase of $491,000 or 6.90%. The increase in

restaurant bar sales is due to sales from the Davie, Florida restaurant, which

generated $516,000 of revenue from bar sales during the thirty nine weeks ended

June 27, 2009. Without giving effect to the revenue from bar sales generated

from the Davie, Florida restaurant ($516,000) for the thirty nine weeks ended

June 27, 2009, restaurant revenue generated from bar sales during the thirty

nine weeks ended June 27, 2009, would have decreased $25,000 or 0.35% to

$7,092,000 from $7,117,000 for the thirty nine weeks ended June 28, 2008.

Comparable weekly restaurant bar sales (for restaurants open for all of the

thirty nine weeks ended June 27, 2009 and the thirty nine weeks ended June 28,

2008, which consists of seven restaurants owned by us and seven restaurants

owned by affiliated limited partnerships) was $173,000 and $172,000 for the

thirty nine weeks ended June 27, 2009 and June 28, 2008, respectively, an

increase of 0.58%. Comparable weekly restaurant bar sales for Company owned

restaurants only was $75,000 and $74,000 for the thirty-nine weeks ended June

27, 2009 and the thirty-nine weeks ended June 28, 2008, respectively, an

increase of 1.35%. Comparable weekly restaurant bar sales for affiliated limited

partnership owned restaurants only was unchanged at $98,000 for the thirty-nine

weeks ended June 27, 2009 and the thirty-nine weeks ended June 28, 2008. We

anticipate that restaurant bar sales will continue to increase throughout the

balance of our fiscal year 2009 due to, primarily, the operation of the Davie,

Florida restaurant for the entire fourth quarter of our fiscal year 2009.



Net Income. Net income for the thirty nine weeks ended June 27, 2009 increased

$176,000 or 17.76% to $1,167,000 from $991,000 for the thirty nine weeks ended

June 28, 2008. As a percentage of sales, net income for the thirty nine weeks

ended June 27, 2009 is 2.31%, as compared to 2.04% for the thirty nine weeks

ended June 28, 2008. During the thirty nine weeks ended June 27, 2009, we

recognized interest income of $124,000 paid on claims we filed in the

liquidation proceedings of Ambassador Insurance Company in 1983 and other income

of $26,000 paid as the balance of our claims (10%) filed in the liquidation

proceedings of Ambassador Insurance Company. We also adjusted our tax deferred

asset by $140,000. Without giving effect to this interest income of $124,000,

other income of $26,000 and the adjustment to our deferred tax asset of

$140,000, we would have generated net income of $877,000 for the thirty nine

weeks ended June 27, 2009, which as a percentage of sales is 1.74%. Without

giving effect to the interest income and other income and the adjustment to our

deferred tax asset for the thirty nine weeks ended June 27, 2009, the decrease

in net income for the thirty nine weeks ended June 27, 2009, as a percentage of

sales (-0.30%) is primarily due to a decline in same store restaurant sales and

a general increase in overall expenses. The net income for the thirty nine weeks

ended June 28, 2008 was adversely affected by our share of the non-recurring

pre-opening and opening expenses associated with the limited partnership owned

restaurant in Pembroke Pines, Florida, ($40,000), and our share of the

non-recurring pre-opening expenses associated with the limited partnership owned

restaurant in Davie, Florida, ($74,000), higher food costs and overall expenses,

including electric, gas and real property taxes.



Read the The complete Report

Rating: 3.5/5 (4 votes)

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