For the thirteen-week period ended
- Revenues were
$31,319,000, as compared to $17,686,000during the thirteen weeks ended June 28, 2020;
- Income from operations was
$10,702,000, as compared to $8,094,000during the thirteen weeks ended June 28, 2020;
- Adjusted EBITDA1, a non-GAAP financial measure, was
$11,061,000as compared to $8,550,000during the thirteen weeks ended June 28, 2020;
- Income before provision for income taxes was
$8,104,000, as compared to $5,561,000during the thirteen weeks ended June 28, 2020;
- Net income was
$5,763,000, as compared to $4,000,000during the thirteen weeks ended June 28, 2020; and
- Earnings per diluted share was
$1.40per share, as compared to $0.97per share during the thirteen weeks ended June 28, 2020.
The Company also reported the following:
- License royalties increased to
$10,682,000during the first quarter fiscal 2022, as compared to $10,523,000during the thirteen weeks ended June 28, 2020. During the first quarter fiscal 2022, royalties earned under the retail agreement, including the foodservice program, with John Morrell & Co., increased 1.4% to $9,880,000, as compared to $9,744,000of royalties earned during the thirteen weeks ended June 28, 2020.
- In the Branded Product Program, which features the sale of Nathan’s hot dogs to the foodservice industry, income from operations increased by approximately
$1,982,000to $2,254,000during the first quarter fiscal 2022, as compared to $272,000for the thirteen weeks ended June 28, 2020. Sales were $15,996,000in the first quarter fiscal 2022, compared to sales of $4,749,000during the prior-year period, while the volume of hot dogs sold by the Company increased 232%. Sales and income from operations for the Branded Product Program have increased as certain government mandated restrictions associated with the COVID-19 pandemic have begun to ease with approved vaccines being more widely distributed and administered. As a result, many of our Branded Product Program customers have reopened adhering to state and local guidelines, such as professional sports venues, amusement parks, shopping malls and movie theaters. Our average selling price, which is partially correlated to the beef markets, decreased by approximately 4.5% compared to the prior year period.
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.
- Sales from Company-operated restaurants were
$3,329,000during the first quarter fiscal 2022 as compared to $1,934,000during the thirteen weeks ended June 28, 2020. The increase was primarily due to an increase in customer traffic especially at our two Coney Islandlocations as a result of the easing of certain government mandated restrictions.
- Revenues from franchise operations were
$907,000during the first quarter fiscal 2022 as compared to $191,000during the thirteen weeks ended June 28, 2020. Total royalties were $800,000in the first quarter fiscal 2022 period as compared to $110,000during the thirteen weeks ended June 28, 2020. Total franchise fee income was $107,000during the first quarter fiscal 2022 as compared to $81,000during the thirteen weeks ended June 28, 2020. The increase in franchise fees and royalties during the first quarter fiscal 2022 was primarily due to an increase in franchise restaurant sales of $10,767,000to $12,985,000as compared to $2,218,000for the thirteen weeks ended June 28, 2020as we begin to lap the significant impact of COVID-19.2 One new franchised outlet and seven new branded menu program outlets opened during the thirteen weeks ended June 27, 2021.
- During the first quarter fiscal 2022, we recorded
Advertising Fundrevenue and expense in the amount of $405,000as compared to $289,000during the thirteen weeks ended June 28, 2020.
June 25, 2021, we paid the $0.35per share regular cash dividend that was declared by the Board of Directors on June 11, 2021to shareholders of record at the close of business on June 21, 2021.
August 6, 2021, the Board of Directors declared its quarterly cash dividend of $0.35per share payable on September 3, 2021to shareholders of record at the close of business on August 23, 2021.
Certain Non-GAAP Financial Information:
In addition to disclosing results that are determined in accordance with Generally Accepted Accounting Principles in
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.
2 Franchise restaurant sales are not revenues of the Company and are not included in the Company’s Consolidated Financial Statements.
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
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 recent COVID-19 outbreak; the status of our licensing and supply agreements, including the impact of our supply agreement for hot dogs with
(516) 338-8500 ext. 229
|Thirteen weeks ended|
|Income from operations (a)||$||10,702,000||$||8,094,000|
|Income before provision for income taxes||$||8,104,000||$||5,561,000|
|Income per share:|
|Weighted-average shares used in|
|computing income per share:|
Select Segment Information
|Branded product program||$||15,996,000||$||4,749,000|
Income from operations (c)
|Branded product program||$||2,254,000||$||272,000|
|Income from operations (c)||$||10,702,000||$||8,094,000|
- Excludes interest expense, interest income, and other income, net.
Represents Advertising Fundrevenue.
- 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
Reconciliation of Net Income to EBITDA and Adjusted EBITDA
|Thirteen weeks ended|
|Provision for income taxes||2,341,000||1,561,000|
|Depreciation and amortization||278,000||310,000|
Nathan's Famous Inc