Effective
For the fiscal year ended
- Revenues were
$103,325,000 for the fifty-two weeks endedMarch 29, 2020 (“fiscal 2020”), as compared to$101,849,000 for the fifty-three weeks endedMarch 31, 2019 (“fiscal 2019”); - Adjusted EBITDA(1) for fiscal 2020, a non-GAAP financial measure, was
$29,964,000 , as compared to$30,399,000 for fiscal 2019; - Income before provision for income taxes was
$18,014,000 for fiscal 2020, as compared to$29,410,000 for fiscal 2019; - Net income was
$13,435,000 for fiscal 2020, as compared to$21,493,000 for fiscal 2019; - Earnings per diluted share was
$3.19 per share for fiscal 2020, as compared to$5.09 per share for fiscal 2019; and - Excluding the gain from the sale of property and equipment, net income would have been
$13,325,000 or$3.16 per diluted share for fiscal 2019 as compared to net income of$13,435,000 or$3.19 per diluted share for fiscal 2020.
For the fourth quarter ended
- Revenues were
$21,705,000 for the thirteen weeks endedMarch 29, 2020 (“fourth quarter fiscal 2020), as compared to$22,129,000 during the fourteen weeks endedMarch 31, 2019 (“fourth quarter fiscal 2019”); - Adjusted EBITDA(1) for the fourth quarter fiscal 2020, a non-GAAP financial measure, was
$7,124,000 , as compared to$6,199,000 for the fourth quarter fiscal 2019; - Income before provision for income taxes was
$4,153,000 for the fourth quarter fiscal 2020, as compared to$3,079,000 for the fourth quarter fiscal 2019; - Net income was
$3,195,000 for the fourth quarter fiscal 2020, as compared to$2,492,000 for the fourth quarter fiscal 2019; and - Earnings per diluted share for the fourth quarter fiscal 2020 were
$0.76 per share, as compared to$0.59 per share for the fourth quarter fiscal 2019.
(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
$25,859,000 during fiscal 2020, as compared to$23,615,000 during fiscal 2019. During fiscal 2020, total royalties earned under theJohn Morrell & Co. , agreement increased 11.3% to$23,680,000 , as compared to$21,271,000 of royalties earned during fiscal 2019. Licensee sales and royalties, which are reported by our licensees, were not affected by the additional week in fiscal 2019. - In the Branded Product Program, which features the sale of Nathan’s hot dogs to the foodservice industry, income from operations decreased by approximately
$2,614,000 to$7,688,000 during fiscal 2020, as compared to$10,302,000 during fiscal 2019. Sales for the Branded Product Program were$57,586,000 during fiscal 2020, compared to sales of$57,960,000 during fiscal 2019. During the 52-week fiscal 2020 period, the volume of business decreased by approximately 2.1% and our average selling prices increased by approximately 0.8% as compared to the 53-week fiscal 2019 period. Foodservice sales during the 53rd week of fiscal 2019 were$2,090,000 . On a comparative 52-week basis, sales would have been approximately$55,870,000 for fiscal 2019. - Sales from Company-operated restaurants were
$12,973,000 during the fiscal 2020 period compared to$13,601,000 during the fiscal 2019 period. Sales were reduced by$1,188,000 associated with the sale of a restaurant during the fiscal 2019 period. Sales from our Company-owned restaurants during the 53rd week of fiscal 2019 were approximately$142,000 .Comparable Company -owned restaurant sales in fiscal 2020, excluding sales from the restaurant that was sold in fiscal 2019, increased by approximately$560,000 or 4.5% as compared to the comparable period last year. - Revenues from franchise operations were
$4,572,000 during fiscal 2020, as compared to$4,171,000 during fiscal 2019. Total royalties declined by$339,000 or 9.2% to$3,327,000 in the fiscal 2020 period as compared to$3,666,000 in the fiscal 2019 period. Total franchise fee income, including cancellation fees, was$1,245,000 during fiscal 2020, as compared to$505,000 during fiscal 2019. Sixteen new franchised outlets opened during fiscal 2020, including five international locations. - Advertising fund revenue was
$2,335,000 during fiscal 2020 and$2,502,000 during fiscal 2019. - During fiscal 2019, Nathan’s sold its restaurant, including land, in
Bay Ridge ,Brooklyn, New York and its regional office building inFt. Lauderdale, Florida recognizing gains, before transaction costs of$11,177,000 , or$8,168,000 net of tax. - On
March 6, 2020 , we paid the$0.35 per share regular cash dividend that was declared by the Board of Directors effectiveFebruary 7, 2020 to shareholders of record at the close of business onFebruary 24, 2020 .
- Effective
June 12, 2020 , the Board of Directors declared its first quarterly cash dividend for fiscal 2021 of$0.35 per share, which is payable onJune 26, 2020 to shareholders of record at the close of business onJune 22, 2020 .
COVID-19 Update
Since the rapidly evolving COVID-19 outbreak and the implementation of “stay-at-home” and dining room closure orders in
The majority of our franchised locations have been temporarily closed due to their locations in venues that are closed (such as shopping malls and movie theaters) or venues operating at significantly reduced traffic (such as airports and highway travel plazas). Such closures and disruptions have materially impacted revenues at our Company-owned restaurants with significant declines since the middle of
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 recent COVID-19 outbreak, the status of our licensing and supply agreements, including the impact of our supply agreement for hot dogs with
Fiscal quarter ended |
Fiscal year ended |
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(13 weeks) | (14 weeks) | (52 weeks) | (53 weeks) | ||||||||||||||
Financial Highlights | |||||||||||||||||
Total revenues | $ | 21,705,000 | $ | 22,129,000 | $ | 103,325,000 | $ | 101,849,000 | |||||||||
Income from operations (a) | $ | 6,495,000 | $ | 5,513,000 | $ | 27,172,000 | $ | 27,976,000 | |||||||||
Net income | $ | 3,195,000 | $ | 2,492,000 | $ | 13,435,000 | $ | 21,493,000 | |||||||||
Income per share: | |||||||||||||||||
Basic | $ | 0.76 | $ | 0.60 | $ | 3.19 | $ | 5.13 | |||||||||
Diluted | $ | 0.76 | $ | 0.59 | $ | 3.19 | $ | 5.09 | |||||||||
Weighted-average shares used in | |||||||||||||||||
computing income per share: | |||||||||||||||||
Basic | 4,204,000 | 4,187,000 | 4,216,000 | 4,187,000 | |||||||||||||
Diluted | 4,204,000 | 4,202,000 | 4,216,000 | 4,220,000 | |||||||||||||
Select Segment Information | |||||||||||||||||
Revenues | |||||||||||||||||
Branded product program | $ | 11,597,000 | $ | 13,652,000 | $ | 57,586,000 | $ | 57,960,000 | |||||||||
Product licensing | 7,300,000 | 5,455,000 | 25,859,000 | 23,615,000 | |||||||||||||
Restaurant operations | 2,225,000 | 2,378,000 | 17,545,000 | 17,772,000 | |||||||||||||
Corporate (d) | 583,000 | 644,000 | 2,335,000 | 2,502,000 | |||||||||||||
Total Revenues | $ | 21,705,000 | $ | 22,129,000 | $ | 103,325,000 | $ | 101,849,000 | |||||||||
Income from operations (b) | |||||||||||||||||
Branded product program | $ | 1,444,000 | $ | 2,577,000 | $ | 7,688,000 | $ | 10,302,000 | |||||||||
Product licensing | 7,254,000 | 5,410,000 | 25,677,000 | 23,433,000 | |||||||||||||
Restaurant operations | (617,000) | (335,000) | 1,637,000 | 2,398,000 | |||||||||||||
Corporate (c) | (1,586,000) | (2,139,000) | (7,830,000) | (8,157,000) | |||||||||||||
Income from operations (b) | $ | 6,495,000 | $ | 5,513,000 | $ | 27,172,000 | $ | 27,976,000 |
(a) | Excludes gain on sale of property and equipment, interest expense, interest income, and other income, net. |
(b) | Excludes gain on sale of property and equipment, 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. |
(c) | 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 expenses of the |
(d) | |
Reconciliation of Net Income to EBITDA and Adjusted EBITDA
Fiscal quarter ended |
Fiscal year ended |
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(13 weeks) | (14 weeks) | (52 weeks) | (53 weeks) | ||||||||||||||||
EBITDA | |||||||||||||||||||
Net income | $ | 3,195,000 | $ | 2,492,000 | $ | 13,435,000 | $ | 21,493,000 | |||||||||||
Interest expense | 2,650,000 | 2,841,000 | 10,601,000 | 10,792,000 | |||||||||||||||
Provision for income taxes | 958,000 | 587,000 | 4,579,000 | 7,917,000 | |||||||||||||||
Depreciation and amortization | 292,000 | 250,000 | 1,233,000 | 1,212,000 | |||||||||||||||
EBITDA | $ | 7,095,000 | $ | 6,170,000 | $ | 29,848,000 | $ | 41,414,000 | |||||||||||
Adjusted EBITDA | |||||||||||||||||||
EBITDA | $ | 7,095,000 | $ | 6,170,000 | $ | 29,848,000 | $ | 41,414,000 | |||||||||||
Gain on sale of property and equipment | -- | -- | -- | (11,177,000 | ) | ||||||||||||||
Stock-based compensation | 29,000 | 29,000 | 116,000 | 162,000 | |||||||||||||||
Adjusted EBITDA | $ | 7,124,000 | $ | 6,199,000 | $ | 29,964,000 | $ | 30,399,000 | |||||||||||
COMPANY
CONTACT: (516) 338-8500 ext. 229
Source: Nathan's Famous Inc