Nathan's Famous, Inc. Reports First Quarter Results

By: Nathan's Famous | 0 Shares 155 Reads

WESTBURY, N.Y.--(BUSINESS WIRE)--Aug. 8, 2008--Nathan's Famous, Inc. (NASDAQ:NATH) today reported results for the first quarter of its 2009 fiscal year that ended June 29, 2008.

Income from continuing operations was $1,355,000 or $0.21 per diluted share for the quarter ended June 29, 2008 as compared to $1,408,000 or $0.21 per diluted share for the quarter ended June 24, 2007. Total revenue from continuing operations increased by 10.2% to $14,042,000 during the quarter ended June 29, 2008 as compared to $12,739,000 during the quarter ended June 24, 2007.

Net income for the quarter ended June 29, 2008 was $3,822,000 or $0.59 per diluted share as compared to $3,152,000 or $0.48 per diluted share for the quarter ended June 24, 2007.

During the current fiscal year, Nathan's realized gains, net of tax, of $2,462,000 or $0.38 per diluted share from the sale of its formerly wholly-owned subsidiary, NF Roasters Corporation and additional consideration from the sale of its formerly wholly-owned subsidiary, Miami Subs Corporation of $250,000 which was previously deemed contingent and not realized. The total of these gains before income taxes was $3,906,000.

During the previous fiscal year, Nathan's realized gains, net of tax, of $1,598,000 or $0.25 per diluted share from the sale of certain leasehold interests in Florida and from the sale of its formerly wholly-owned subsidiary, Miami Subs Corporation. The total gains before income taxes were $2,489,000.

The Company also reported the following:

The Branded Product Program, featuring the sale of Nathan's hot dogs to the foodservice industry, has continued to grow. Sales increased by 11.7% to $6,618,000 for the first quarter fiscal 2009 as compared to sales of $5,925,000 in the first quarter fiscal 2008.
Revenues and operating profits from Nathan's company-owned restaurants, restaurant franchising, retail licensing and sales to our television marketer, increased by $599,000 or 9.1% and $133,000 or 3.9%, respectively, compared to the first quarter fiscal 2008.
Nathan's repurchased 189,688 shares of its common stock through July 31, 2008, pursuant to the authorization granted by its Board of Directors' on November 5, 2007.

About Nathan's Famous

Nathan's products are currently distributed in 50 states, the District of Columbia and four foreign countries through its restaurant system, Branded Product Program and retail licensing activities. The Nathan's restaurant system currently consists of 236 units, comprised of 230 franchised or licensed units and six company-owned units (including one seasonal unit). 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 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 are the following: the effect of business and economic conditions; the impact of competitive products and pricing; the ability to obtain an adequate supply of beef and other food products at competitive prices; capacity; the regulatory and trade environment; 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.



                        Nathan's Famous, Inc.

                         Financial Highlights



                                                Thirteen weeks ended

                                               -----------------------

                                                     (unaudited)



                                                June 29,    June 24,

                                                   2008        2007

                                               ----------- -----------



Total revenues from continuing operations      $14,042,000 $12,739,000

                                               =========== ===========



Income from continuing operations                1,355,000   1,408,000



Income from discontinued operations              2,467,000   1,744,000

                                               ----------- -----------



Net income                                     $ 3,822,000 $ 3,152,000

                                               =========== ===========





Basic income per share

  Income from continuing operations            $      0.22 $      0.23

  Income from discontinued operations                 0.40        0.29

                                               ----------- -----------

  Net income                                   $      0.62 $      0.52

                                               =========== ===========



Diluted income per share

  Income from continuing operations            $      0.21 $      0.21

  Income from discontinued operations                 0.38        0.27

                                               ----------- -----------

  Net income                                   $      0.59 $      0.48

                                               =========== ===========



Weighted-average shares used in computing

 income per share

      Basic                                      6,165,000   6,018,000

                                               =========== ===========

      Diluted                                    6,473,000   6,499,000

                                               =========== ===========