Effective
For the fiscal year ended
- Revenues were
$75,839,000 for the fifty-two weeks endedMarch 28, 2021 (“fiscal 2021”), as compared to$103,325,000 for the fifty-two weeks endedMarch 29, 2020 (“fiscal 2020”); - Income from operations was
$25,515,000 for fiscal 2021, as compared to$27,172,000 for fiscal 2020; - Adjusted EBITDA1 for fiscal 2021, a non-GAAP financial measure, was
$27,225,000 , as compared to$29,964,000 for fiscal 2020; - Income before provision for income taxes was
$15,325,000 for fiscal 2021, as compared to$18,014,000 for fiscal 2020; - Net income was
$11,075,000 for fiscal 2021, as compared to$13,435,000 for fiscal 2020; and - Earnings per diluted share was
$2.69 per share for fiscal 2021, as compared to$3.19 per share for fiscal 2020.
For the thirteen weeks ended
- Revenues were
$18,284,000 for the thirteen weeks endedMarch 28, 2021 (“fourth quarter fiscal 2021”), as compared to$21,705,000 for the thirteen weeks endedMarch 29, 2020 (“fourth quarter fiscal 2020”); - Income from operations was
$5,434,000 for the fourth quarter fiscal 2021, as compared to$6,495,000 for the fourth quarter fiscal 2020; - Adjusted EBITDA1 for the fourth quarter fiscal 2021, a non-GAAP financial measure, was
$5,817,000 , as compared to$7,124,000 for the fourth quarter fiscal 2020; - Income before provision for income taxes was
$2,855,000 for the fourth quarter fiscal 2021, as compared to$4,153,000 for the fourth quarter fiscal 2020; - Net income was
$2,061,000 for the fourth quarter fiscal 2021, as compared to$3,195,000 for the fourth quarter fiscal 2020; and - Earnings per diluted share was
$0.50 per share for the fourth quarter fiscal 2021, as compared to$0.76 per share for the fourth quarter fiscal 2020.
_______________
1 EBITDA and Adjusted EBITDA are non-GAAP financial measures. Please see the definitions of EBITDA and Adjusted EBITDA on page 3 of this release and the reconciliation of EBITDA and Adjusted EBITDA to net income in the table at the end of this release.
The Company also reported the following:
- License royalties increased to
$31,368,000 during fiscal 2021, as compared to$25,859,000 during fiscal 2020. During fiscal 2021, royalties earned under the retail agreement, including the foodservice program, fromJohn Morrell & Co. , increased 21% to$28,694,000 , as compared to$23,680,000 of royalties earned during fiscal 2020. As consumers sheltered at home as a result of the COVID-19 pandemic, our licensing business exhibited strong consumer demand. - In the Branded Product Program, which features the sale of Nathan’s hot dogs to the foodservice industry, income from operations declined by approximately
$3,053,000 to$4,635,000 during fiscal 2021, as compared to$7,688,000 during fiscal 2020. Sales were$33,617,000 during fiscal 2021, compared to sales of$57,586,000 during fiscal 2020, while the volume of hot dogs sold by the Company decreased 41%. As a result of the COVID-19 pandemic, sales and income from operations for the Branded Product Program were negatively impacted as many of our customers operate in venues that were closed or slow to re-open, such as movie theaters, or venues operating at reduced capacity, such as professional sports arenas, amusement parks, and shopping malls. - Sales from Company-operated restaurants were
$7,709,000 during fiscal 2021 as compared to$12,973,000 during fiscal 2020. The decrease was primarily due to a decline in customer traffic related to the impact of the COVID-19 pandemic. Additionally, as stipulated under government orders, our Company-operated restaurants with dining rooms were operating at reduced capacity and maintaining social distancing protocols. - Revenues from franchise operations were
$1,601,000 during fiscal 2021, compared to$4,572,000 during fiscal 2020. Total royalties were$1,317,000 during fiscal 2021 as compared to$3,327,000 during fiscal 2020. Total franchise fee income, including cancellation fees, was$284,000 during fiscal 2021 as compared to$1,245,000 during the fiscal 2020. As a result of the COVID-19 pandemic, a number of our franchised locations have been temporarily closed due to their locations being in venues which are closed, such as movie theaters, or venues operating at reduced traffic, such as airports, shopping malls, and highway travel plazas. Despite the challenging environment, 7 new franchised outlets and 130 ghost kitchens opened during fiscal 2021. - Advertising revenue was
$1,544,000 during fiscal 2021 and$2,335,000 during fiscal 2020. - On
March 5, 2021 , the Company paid the$0.35 per share regular cash dividend that was declared by the Board of Directors effectiveFebruary 5, 2021 to shareholders of record at the close of business ofFebruary 22, 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.
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 COVID-19 pandemic; the status of our licensing and supply agreements, including the impact of our supply agreement for hot dogs with
Thirteen weeks ended | Fiscal year ended | ||||||||||||||
Financial Highlights | |||||||||||||||
Total revenues | $ | 18,284,000 | $ | 21,705,000 | $ | 75,839,000 | $ | 103,325,000 | |||||||
Income from operations (a) | $ | 5,434,000 | $ | 6,495,000 | $ | 25,515,000 | $ | 27,172,000 | |||||||
Net income | $ | 2,061,000 | $ | 3,195,000 | $ | 11,075,000 | $ | 13,435,000 | |||||||
Income per share: | |||||||||||||||
Basic | $ | 0.50 | $ | 0.76 | $ | 2.69 | $ | 3.19 | |||||||
Diluted | $ | 0.50 | $ | 0.76 | $ | 2.69 | $ | 3.19 | |||||||
Weighted-average shares used in computing income per share: | |||||||||||||||
Basic | 4,115,000 | 4,204,000 | 4,116,000 | 4,216,000 | |||||||||||
Diluted | 4,115,000 | 4,204,000 | 4,116,000 | 4,216,000 | |||||||||||
Select Segment Information | |||||||||||||||
Revenues | |||||||||||||||
Branded product program | $ | 9,167,000 | $ | 11,597,000 | $ | 33,617,000 | $ | 57,586,000 | |||||||
Product licensing | 6,679,000 | 7,300,000 | 31,368,000 | 25,859,000 | |||||||||||
Restaurant operations | 1,976,000 | 2,225,000 | 9,310,000 | 17,545,000 | |||||||||||
Corporate (b) | 462,000 | 583,000 | 1,544,000 | 2,335,000 | |||||||||||
Total Revenues | $ | 18,284,000 | $ | 21,705,000 | $ | 75,839,000 | $ | 103,325,000 | |||||||
Income from operations (c) | |||||||||||||||
Branded product program | $ | 1,561,000 | $ | 1,444,000 | $ | 4,635,000 | $ | 7,688,000 | |||||||
Product licensing | 6,634,000 | 7,254,000 | 31,186,000 | 25,677,000 | |||||||||||
Restaurant operations | (663,000 | ) | (617,000 | ) | (2,856,000 | ) | 1,637,000 | ||||||||
Corporate (d) | (2,098,000 | ) | (1,586,000 | ) | (7,450,000 | ) | (7,830,000 | ) | |||||||
Income from operations (c) |
$ | 5,434,000 |
$ | 6,495,000 |
$ | 25,515,000 |
$ | 27,172,000 |
|||||||
(a) Excludes interest expense, interest income, and other income, net.
(b)
(c) 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.
(d) 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, compliance costs, and the operating results of the advertising fund.
Reconciliation of Net Income to EBITDA and Adjusted EBITDA
Thirteen weeks ended | Fiscal year ended | |||||||||||
EBITDA | ||||||||||||
Net Income | $ | 2,061,000 | $ | 3,195,000 | $ | 11,075,000 | $ | 13,435,000 | ||||
Interest Expense | 2,650,000 | 2,650,000 | 10,601,000 | 10,601,000 | ||||||||
Provision for income taxes | 794,000 | 958,000 | 4,250,000 | 4,579,000 | ||||||||
Depreciation and amortization | 283,000 | 292,000 | 1,183,000 | 1,233,000 | ||||||||
EBITDA | $ | 5,788,000 | $ | 7,095,000 | $ | 27,109,000 | $ | 29,848,000 | ||||
Adjusted EBITDA | ||||||||||||
EBITDA | $ | 5,788,000 | $ | 7,095,000 | $ | 27,109,000 | $ | 29,848,000 | ||||
Share-based compensation | 29,000 | 29,000 | 116,000 | 116,000 | ||||||||
Adjusted EBITDA | $ | 5,817,000 | $ | 7,124,000 | $ | 27,225,000 | $ | 29,964,000 | ||||
COMPANY CONTACT: |
(516) 338-8500 ext. 229 |
|
Nathan's Famous Inc