Frisch's Restaurants Inc (FRS, Financial) filed Quarterly Report for the period ended 2009-12-15.
Frisch's Restaurants Inc has a market cap of $120 million; its shares were traded at around $23.5 with a P/E ratio of 9.8 and P/S ratio of 0.4. The dividend yield of Frisch's Restaurants Inc stocks is 2.2%. Frisch's Restaurants Inc had an annual average earning growth of 5.1% over the past 10 years.FRS is in the portfolios of Chuck Royce of ROYCE & ASSOCIATES.
Sales amounted to $156,881,000 during the First Half of Fiscal 2010, which was $2,094,000 lower than the First Half of Fiscal 2009. Net earnings for the First Half of Fiscal 2010 were $5,357,000, or diluted EPS of $1.03, which compares with $4,391,000, or diluted EPS of $.85 in the First Half of Fiscal 2009. The effective tax rate was 32 percent throughout the First Half of Fiscal 2010. It was 29 percent throughout the First Half of Fiscal 2009. Factors having a noteworthy effect on pretax earnings when comparing the First Half of Fiscal 2010 with the First Half of Fiscal 2009:
Net periodic pension cost was $571,000 and $364,000 respectively, in the Second Quarter of Fiscal 2010 and the Second Quarter of Fiscal 2009. Net periodic pension cost was $1,382,000 and $849,000 respectively, in the First Half of Fiscal 2010 and the First Half of Fiscal 2009. The higher cost is primarily the result of Fiscal 2009s significant market losses in equity securities, which are the principal funding source for the pension trusts. The market losses in Fiscal 2009 required underfunded status of the pension plans to be recognized at June 2, 2009, which resulted in a reduction in the Companys equity of approximately $5,000,000, net of tax. Absent a material restoration in the values of the securities, future funding requirements will be adversely affected, and much higher levels of net periodic pension costs will need to be recognized for years to come. Although no contributions are needed to meet minimum funding requirements for Fiscal 2010, discretionary contributions are currently planned at a level of $1,625,000, of which $775,000 had been contributed during the First Half of Fiscal 2010.
Management performs a comprehensive review each quarter of its self-insurance program for Ohio workers compensation and adjusts its reserves as deemed appropriate based on claims experience. The reserves were increased by $330,000 in the Second Quarter of Fiscal 2010, bringing the total charge against earnings during the First Half of Fiscal 2010 to $539,000. The reserves were decreased by $42,000 during the First Half of Fiscal 2009, effected through a charge against earnings in the Second Quarter of Fiscal 2009.
Other operating costs include occupancy costs such as maintenance, rent, depreciation, property tax, insurance and utilities; plus costs relating to field supervision, accounting and payroll preparation costs, franchise fees for Golden Corral restaurants, new restaurant opening costs and many other restaurant operating costs. As most of these expenses tend to be fixed costs, the percentages shown in the above table are greatly affected by changes in same store sales levels. Opening costs (all for Big Boy) were $212,000 and $202,000 respectively during the Second Quarter of Fiscal 2010 and the Second Quarter of Fiscal 2009. For the First Half of Fiscal 2010, opening costs (all for Big Boy) were $226,000. Opening costs were $531,000 (all for Big Boy) in the First Half of Fiscal 2009. Other operating costs are a much higher percentage of sales for the Golden Corral segment (compared with the Big Boy segment) because they have a larger physical facility and sales volumes remain well below managements original expectations.
In September 2009, the amount that may be borrowed under the terms of the Companys Construction Draw Credit Facility was increased by $3,500,000, which brought the amount available to be drawn upon to $8,000,000, all of which currently remains readily available. In addition, a $5,000,000 revolving loan (currently unused) is also readily available if needed to fund temporary working capital. The Company is in compliance with the covenants contained in both of the credit facilities. The Company expects no difficulties in extending both of these facilities prior to their scheduled expirations in October 2010.
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Frisch's Restaurants Inc has a market cap of $120 million; its shares were traded at around $23.5 with a P/E ratio of 9.8 and P/S ratio of 0.4. The dividend yield of Frisch's Restaurants Inc stocks is 2.2%. Frisch's Restaurants Inc had an annual average earning growth of 5.1% over the past 10 years.FRS is in the portfolios of Chuck Royce of ROYCE & ASSOCIATES.
Highlight of Business Operations:
Sales amounted to $67,899,000 during the Second Quarter of Fiscal 2010, which was $1,194,000 lower than the Second Quarter of Fiscal 2009. Net earnings for the Second Quarter of Fiscal 2010 were $2,369,000, or diluted earnings per share (EPS) of $.46, which compares with $2,216,000, or diluted EPS of $.43 in the Second Quarter of Fiscal 2009. The improvement in net earnings was achieved despite a higher effective tax rate: 32 percent in the Second Quarter of Fiscal 2010 versus 29 percent in the Second Quarter of Fiscal 2009. Factors having a noteworthy effect on pretax earnings when comparing the Second Quarter of Fiscal 2010 with the Second Quarter of Fiscal 2009:Sales amounted to $156,881,000 during the First Half of Fiscal 2010, which was $2,094,000 lower than the First Half of Fiscal 2009. Net earnings for the First Half of Fiscal 2010 were $5,357,000, or diluted EPS of $1.03, which compares with $4,391,000, or diluted EPS of $.85 in the First Half of Fiscal 2009. The effective tax rate was 32 percent throughout the First Half of Fiscal 2010. It was 29 percent throughout the First Half of Fiscal 2009. Factors having a noteworthy effect on pretax earnings when comparing the First Half of Fiscal 2010 with the First Half of Fiscal 2009:
Net periodic pension cost was $571,000 and $364,000 respectively, in the Second Quarter of Fiscal 2010 and the Second Quarter of Fiscal 2009. Net periodic pension cost was $1,382,000 and $849,000 respectively, in the First Half of Fiscal 2010 and the First Half of Fiscal 2009. The higher cost is primarily the result of Fiscal 2009s significant market losses in equity securities, which are the principal funding source for the pension trusts. The market losses in Fiscal 2009 required underfunded status of the pension plans to be recognized at June 2, 2009, which resulted in a reduction in the Companys equity of approximately $5,000,000, net of tax. Absent a material restoration in the values of the securities, future funding requirements will be adversely affected, and much higher levels of net periodic pension costs will need to be recognized for years to come. Although no contributions are needed to meet minimum funding requirements for Fiscal 2010, discretionary contributions are currently planned at a level of $1,625,000, of which $775,000 had been contributed during the First Half of Fiscal 2010.
Management performs a comprehensive review each quarter of its self-insurance program for Ohio workers compensation and adjusts its reserves as deemed appropriate based on claims experience. The reserves were increased by $330,000 in the Second Quarter of Fiscal 2010, bringing the total charge against earnings during the First Half of Fiscal 2010 to $539,000. The reserves were decreased by $42,000 during the First Half of Fiscal 2009, effected through a charge against earnings in the Second Quarter of Fiscal 2009.
Other operating costs include occupancy costs such as maintenance, rent, depreciation, property tax, insurance and utilities; plus costs relating to field supervision, accounting and payroll preparation costs, franchise fees for Golden Corral restaurants, new restaurant opening costs and many other restaurant operating costs. As most of these expenses tend to be fixed costs, the percentages shown in the above table are greatly affected by changes in same store sales levels. Opening costs (all for Big Boy) were $212,000 and $202,000 respectively during the Second Quarter of Fiscal 2010 and the Second Quarter of Fiscal 2009. For the First Half of Fiscal 2010, opening costs (all for Big Boy) were $226,000. Opening costs were $531,000 (all for Big Boy) in the First Half of Fiscal 2009. Other operating costs are a much higher percentage of sales for the Golden Corral segment (compared with the Big Boy segment) because they have a larger physical facility and sales volumes remain well below managements original expectations.
In September 2009, the amount that may be borrowed under the terms of the Companys Construction Draw Credit Facility was increased by $3,500,000, which brought the amount available to be drawn upon to $8,000,000, all of which currently remains readily available. In addition, a $5,000,000 revolving loan (currently unused) is also readily available if needed to fund temporary working capital. The Company is in compliance with the covenants contained in both of the credit facilities. The Company expects no difficulties in extending both of these facilities prior to their scheduled expirations in October 2010.
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