Nathan's Famous, Inc. Reports Second Quarter Results

Westbury, N.Y.--(BUSINESS WIRE)--Nathan's Famous, Inc. (NASDAQ:NATH) today reported results for the second quarter of its 2009 fiscal year that ended September 28, 2008.

For the quarter ended September 28, 2008, income from continuing operations increased by 5.8% to $1,859,000, as compared to $1,757,000 for the quarter ended September 23, 2007. Total revenue from continuing operations increased by 3.6% to $14,525,000, as compared to $14,021,000 during the quarter ended September 23, 2007.

Net income for the quarter was $1,859,000 or $0.29 per share, as compared to $1,774,000 or $0.27 per share for the quarter ended September 23, 2007.

For the twenty-six weeks ended September 28, 2008, ("fiscal 2009 period") income from continuing operations increased by 1.5% to $3,214,000, as compared to $3,165,000 for the twenty-six weeks ended September 23, 2007 ("fiscal 2008 period"). Total revenue from continuing operations increased by 6.8% to $28,567,000 for the fiscal 2009 period, as compared to $26,760,000 during the fiscal 2008 period.

Net income for the current twenty-six week period was $5,681,000 or $0.89 per share, as compared to $4,926,000 or $0.75 per share for the fiscal 2008 period.

During the fiscal 2009 period, Nathan's realized gains, net of tax, of $2,462,000 or $0.39 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 fiscal 2008 period, Nathan's realized gains, net of tax, of $1,598,000 or $0.24 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 16.0% to $12,900,000 during the fiscal 2009 period as compared to sales of $11,124,000 during the fiscal 2008 period.
  • Revenues and operating profits from Nathan's company-owned restaurants, restaurant franchising, retail licensing and sales to our television marketer, increased by $64,000 or 0.4% and $214,000 or 2.9%, respectively, compared to the fiscal 2008 period.
  • Nathan's results for the fiscal 2009 period, reflects the negative impact of the slowing economy on sales at our Company-owned and franchised restaurants, most significantly during September. In addition, the profitability of Nathan's Branded Product Program was negatively affected by unprecedented cost increases for our primary products.
  • Nathan's recognized income of $234,000 in connection with the resolution of a multi-year dispute with a licensee and the expected recovery of $441,000 from the settlement of a multi-year certiorari proceeding at one of its Company-owned restaurants during the fiscal 2009 period.
  • Nathan's repurchased 483,884 shares of its common stock through October 31, 2008, pursuant to the common stock buy-back program adopted by its Board of Directors' on November 5, 2007, concluding the purchases of common stock under the 10b-5 Plan dated June 11, 2008. There are 16,116 shares remaining available for purchase under the November 5, 2007 buy-back program.

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 241 units, comprised of 235 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)

Sept. 28, 2008 Sept. 23, 2007
-------------- --------------

Total revenues from continuing
operations $ 14,525,000 $ 14,021,000
============== ==============

Income from continuing operations 1,859,000 1,757,000

Income from discontinued operations 0 17,000
-------------- --------------

Net income $ 1,859,000 $ 1,774,000
============== ==============


Basic income per share
Income from continuing operations $ 0.31 $ 0.29
Income from discontinued operations 0.00 0.00
-------------- --------------
Net income $ 0.31 $ 0.29
============== ==============

Diluted income per share
Income from continuing operations $ 0.29 $ 0.27
Income from discontinued operations 0.00 0.00
-------------- --------------
Net income $ 0.29 $ 0.27
============== ==============


Weighted-average shares used in
computing
income per share
Basic 5,984,000 6,119,000
============== ==============
Diluted 6,309,000 6,562,000
============== ==============

Nathan's Famous, Inc.
Financial Highlights

Twenty-six weeks ended
-------------------------------
(unaudited)

Sept. 28, 2008 Sept. 23, 2007
-------------- --------------

Total revenues from continuing
operations $ 28,567,000 $ 26,760,000
============== ==============

Income from continuing operations 3,214,000 3,165,000

Income from discontinued operations 2,467,000 1,761,000
-------------- --------------

Net income $ 5,681,000 $ 4,926,000
============== ==============


Basic income per share
Income from continuing operations $ 0.53 $ 0.52
Income from discontinued operations 0.41 0.29
-------------- --------------
Net income $ 0.94 $ 0.81
============== ==============

Diluted income per share
Income from continuing operations $ 0.50 $ 0.48
Income from discontinued operations 0.39 0.27
-------------- --------------
Net income $ 0.89 $ 0.75
============== ==============


Weighted-average shares used in
computing
income per share
Basic 6,075,000 6,069,000
============== ==============
Diluted 6,391,000 6,530,000
============== ==============
CONTACT: Nathan's Famous, Inc.
Ronald G. DeVos, 516-338-8500 ext. 229
Vice President - Finance and CFO


SOURCE: Nathan's Famous, Inc.

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