Nathan's Famous, Inc. Reports First Quarter Results
03 Août 2023 - 2:30PM
Nathan's Famous, Inc. (“Nathan’s”, the “Company”, “we”, “us” or
“our”) (NASDAQ:NATH) today reported results for its first fiscal
quarter ended June 25, 2023.
For the thirteen-week period ended June 25, 2023
(“first quarter fiscal 2024”):
- Revenues were $41,985,000 as compared to $39,720,000 during the
thirteen weeks ended June 26, 2022;
- Income from operations was $11,463,000 as compared to
$11,780,000 during the thirteen weeks ended June 26, 2022;
- Adjusted EBITDA1, a non-GAAP financial measure, was $12,036,000
as compared to $12,065,000 during the thirteen weeks ended June 26,
2022;
- Income before provision for income taxes was $10,132,000 as
compared to $9,880,000 during the thirteen weeks ended June 26,
2022;
- Net income was $7,388,000 as compared to $7,137,000 during the
thirteen weeks ended June 26, 2022; and
- Earnings per diluted share was $1.81 per share as compared to
$1.74 per share during the thirteen weeks ended June 26, 2022.
The Company also reported the following:
- License royalties increased to $11,658,000 during the first
quarter fiscal 2024 as compared to $11,314,000 during the thirteen
weeks ended June 26, 2022. During the first quarter fiscal 2024,
royalties earned under the retail agreement, including the
foodservice program, from Smithfield Foods, Inc., increased 3% to
$10,796,000 as compared to $10,450,000 of royalties earned during
the thirteen weeks ended June 26, 2022.
- In the Branded Product Program, which features the sale of
Nathan’s hot dogs to the foodservice industry, sales increased by
$1,999,000 to $25,170,000 during the first quarter fiscal 2024 as
compared to $23,171,000 during the thirteen weeks ended June 26,
2022. The volume of hot dogs sold in the Branded Product Program
increased by 2%. Our average selling price, which is partially
correlated to the beef markets, increased by approximately 5% as
compared to the prior year period. Income from operations decreased
by $106,000 to $1,961,000 during the first quarter fiscal 2024 as
compared to $2,067,000 for the thirteen weeks ended June 26, 2022,
due to an increase in the cost of beef and beef trimmings.
- Sales from Company-owned restaurants were $3,658,000 during the
first quarter fiscal 2024 as compared to $3,723,000 during the
thirteen weeks ended June 26, 2022. Sales were impacted by
unfavorable weather conditions during June 2023.
- Revenues from franchise operations were $1,075,000 during the
first quarter fiscal 2024 as compared to $1,093,000 during the
thirteen weeks ended June 26, 2022. Total royalties were $980,000
in the first quarter fiscal 2024 period as compared to $901,000
during the thirteen weeks ended June 26, 2022. The increase in
franchise royalties during the first quarter fiscal 2024 was
primarily due to an increase in franchise restaurant sales of
$1,317,000 to $17,263,000 as compared to $15,946,000 for the
thirteen weeks ended June 26, 2022.2 Total franchise fee income,
including cancellation fees, was $95,000 during the first quarter
fiscal 2024 as compared to $192,000 during the thirteen weeks ended
June 26, 2022. Seven franchised locations opened during the first
quarter fiscal 2024.
- During the first quarter fiscal 2024, we recorded Advertising
Fund revenue and expense in the amount of $424,000 as compared to
$419,000 during the thirteen weeks ended June 26, 2022.
- On June 28, 2023, we paid the $0.50 per share regular cash
dividend that was declared by the Board of Directors on June 8,
2023 to shareholders of record at the close of business on June 20,
2023.
- Effective August 3, 2023, the Board of Directors declared its
quarterly cash dividend of $0.50 per share payable on September 1,
2023 to shareholders of record at the close of business on August
21, 2023.
Certain Non-GAAP Financial
Information:
In addition to disclosing results that are
determined in accordance with Generally Accepted Accounting
Principles in the United States of America ("US GAAP"), the Company
is disclosing EBITDA, a non-GAAP financial measure which is defined
as net income, excluding (i) interest expense; (ii) provision for
income taxes and (iii) depreciation and amortization expense. The
Company is also disclosing Adjusted EBITDA, a non-GAAP financial
measure which is defined as EBITDA, excluding (i) share-based
compensation that the Company believes will impact the
comparability of its results of operations.
The Company
believes that EBITDA and Adjusted EBITDA are useful to investors to
assist in assessing and understanding the Company's operating
performance and underlying trends in the Company's business because
EBITDA and Adjusted EBITDA are (i) among the measures used by
management in evaluating performance and (ii) are frequently used
by securities analysts, investors and other interested parties as a
common performance measure.
EBITDA and Adjusted EBITDA are not recognized
terms under US GAAP and should not be viewed as alternatives to net
income or other measures of financial performance or liquidity in
conformity with US GAAP. Additionally, our definitions of EBITDA
and Adjusted EBITDA may differ from other companies. Analysis of
results and outlook on a non-US GAAP basis should be used as a
complement to, and in conjunction with, data presented in
accordance with US GAAP. Please see the table at the end of this
press release for a reconciliation of EBITDA and Adjusted EBITDA to
net income.
About Nathan’s
Famous
Nathan’s is a Russell 2000 Company that
currently distributes its products in 50 states, the District of
Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, and nineteen
foreign countries through its restaurant system, foodservice sales
programs and product licensing activities. For additional
information about Nathan’s please visit our website at
www.nathansfamous.com.
Except for historical information contained in
this news release, the matters discussed are forward looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended, that involve risks and uncertainties. Words
such as “anticipate”, “believe”, “estimate”, “expect”, “intend”,
and similar expressions identify forward-looking statements, which
are based on the current belief of the Company’s management, as
well as assumptions made by and information currently available to
the Company’s management. Among the factors that could cause actual
results to differ materially include but are not limited to: the
impact of the COVID-19 pandemic; increases in the cost of food and
paper products; the impact of price increases on customer visits;
the status of our licensing and supply agreements, including our
licensing revenue and overall profitability being substantially
dependent on our agreement with Smithfield Foods, Inc.; the impact
of our debt service and repayment obligations under the 2025 Notes,
including the effect on our ability to fund working capital,
operations and make new investments; economic (including
inflationary pressures like those currently being experienced);
weather (including the impact on sales at our restaurants
particularly during the summer months), and change in the price of
beef and beef trimmings; our ability to pass on the cost of any
price increases in beef and beef trimmings; legislative and
business conditions; the collectability of receivables; changes in
consumer tastes; the continued viability of Coney Island as a
destination location for visitors; the ability to attract
franchisees; the impact of the minimum wage legislation on labor
costs in New York State or other changes in labor laws, including
regulations which could render a franchisor as a “joint employee”
or the impact of our union contracts; our ability to attract
competent restaurant and managerial personnel; the enforceability
of international franchising agreements; the future effects of any
food borne illness, such as bovine spongiform encephalopathy, BSE
and e coli; and the risk factors reported from time to time in the
Company’s SEC reports. The Company does not undertake any
obligation to update such forward-looking statements.
__________________
1 EBITDA and Adjusted EBITDA are non-GAAP
financial measures. Please see the definitions of EBITDA and
Adjusted EBITDA on page 2 of this release and the reconciliation of
EBITDA and Adjusted EBITDA to net income in the table at the end of
this release.
2 Franchise restaurant sales are not revenues of
the Company and are not included in the Company’s Consolidated
Financial Statements.
Nathan's Famous, Inc. and
Subsidiaries(unaudited)
|
Thirteen weeks ended |
|
June 25, 2023 |
|
June 26, 2022 |
Financial Highlights |
|
|
|
Total revenues |
$ |
41,985,000 |
|
$ |
39,720,000 |
|
|
|
|
Income from operations (a) |
$ |
11,463,000 |
|
$ |
11,780,000 |
|
|
|
|
Income before provision for income taxes |
$ |
10,132,000 |
|
$ |
9,880,000 |
|
|
|
|
Net income |
$ |
7,388,000 |
|
$ |
7,137,000 |
|
|
|
|
Income per share: |
|
|
|
Basic |
$ |
1.81 |
|
$ |
1.74 |
Diluted |
$ |
1.81 |
|
$ |
1.74 |
|
|
|
|
Weighted-average shares used in |
|
|
|
computing income per share: |
|
|
|
Basic |
4,080,000 |
|
4,113,000 |
Diluted |
4,088,000 |
|
4,113,000 |
|
|
|
|
Select Segment Information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
Branded product program |
$ |
25,170,000 |
|
|
$ |
23,171,000 |
|
Product licensing |
|
11,658,000 |
|
|
|
11,314,000 |
|
Restaurant operations |
|
4,733,000 |
|
|
|
4,816,000 |
|
Corporate (b) |
|
424,000 |
|
|
|
419,000 |
|
Revenues |
$ |
41,985,000 |
|
|
$ |
39,720,000 |
|
|
|
|
|
|
|
|
|
Income from operations (c) |
|
|
|
|
|
|
|
Branded product program |
$ |
1,961,000 |
|
|
$ |
2,067,000 |
|
Product licensing |
|
11,613,000 |
|
|
|
11,269,000 |
|
Restaurant operations |
|
669,000 |
|
|
|
641,000 |
|
Corporate (d) |
|
(2,780,000 |
) |
|
|
(2,197,000 |
) |
Income from operations (c) |
$ |
11,463,000 |
|
|
$ |
11,780,000 |
|
- Excludes interest expense, interest
income, and other income, net.
- Represents Advertising Fund
revenue.
- Excludes interest expense, interest
income and other income, net which are managed centrally at the
corporate level, and, accordingly, such items are not presented by
segment since they are excluded from the measure of profitability
reviewed by the Chief Operating Decision Maker.
- Consists principally of administrative
expenses not allocated to the operating segments such as executive
management, finance, information technology, legal, insurance,
corporate office costs, incentive compensation and compliance costs
and Advertising Fund expense.
Nathan's Famous, Inc. and
SubsidiariesReconciliation of Net Income to EBITDA
and Adjusted EBITDA(unaudited)
|
Thirteen weeks ended |
|
June 25, 2023 |
|
June 26, 2022 |
|
|
|
|
|
EBITDA |
|
|
|
Net Income |
$ |
7,388,000 |
|
$ |
7,137,000 |
|
|
|
|
Interest Expense |
1,414,000 |
|
1,944,000 |
|
|
|
|
Provision for income taxes |
2,744,000 |
|
2,743,000 |
|
|
|
|
Depreciation and amortization |
313,000 |
|
233,000 |
|
|
|
|
EBITDA |
$ |
11,859,000 |
|
$ |
12,057,000 |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
|
|
EBITDA |
$ |
11,859,000 |
|
$ |
12,057,000 |
|
|
|
|
Share-based compensation |
177,000 |
|
8,000 |
|
|
|
|
Adjusted EBITDA |
$ |
12,036,000 |
|
$ |
12,065,000 |
|
|
|
|
COMPANY: Robert Steinberg, Vice President - Finance and
CFOCONTACT: (516) 338-8500 ext. 229
Nathans Famous (NASDAQ:NATH)
Graphique Historique de l'Action
De Avr 2024 à Mai 2024
Nathans Famous (NASDAQ:NATH)
Graphique Historique de l'Action
De Mai 2023 à Mai 2024