Meat Industry INSIGHTS Newsletter

980628 Nathan's Famous Reports Year End Results

June 11, 1998

Westbury, NY - Nathan's Famous, Inc. reported it's results for the fiscal year ended March 29, 1998.

Net earnings for the fifty-two weeks ended March 29, 1998, were $1,528,000 compared to $788,000 for the same period ended March 30, 1997. Basic and diluted earnings per share were $0.32 for the fifty-two weeks ended March 29, 1998, as compared to $0.17 for the fifty-two weeks ended March 30, 1997. Results for fiscal 1998 included an income tax benefit of $523,000, or $0.11 per share, from the reduction of the Company's deferred tax valuation allowance. Fiscal 1998 net earnings, exclusive of the income tax benefit, would have been $1,005,000 or $0.21 per share. Annual revenues increased approximately 8.7% to $28,877,000 in fiscal 1998 as compared to $26,575,000 in fiscal 1997.

Net earnings for the thirteen weeks ended March 29, 1998 were $203,000, compared to a net loss of $275,000, for the thirteen weeks ended March 30, 1997. Basic and diluted earnings per share were $0.04 for the thirteen week quarter ended March 29, 1998 as compared to basic and diluted loss per share of ($0.06) for the thirteen week quarter ended March 30, 1997. Total revenues were $6,592,000 in the fourth quarter of fiscal 1998 compared to $5,642,000 in the fourth quarter of fiscal 1997.

Total systemwide sales, including supermarket sales by the Company's licensee, were $114,148,000 for the fifty-two week period ended March 29, 1998, versus $115,942,000 for the fifty-two week period ended March 30, 1997.

During the fiscal year ended March 30, 1997, Caldor closed 53 franchised units which contributed systemwide sales of approximately $6,075,000 and franchise royalties of approximately $243,000 for the period of time that those units operated during that fiscal year.

Fiscal 1998 results include net gains of approximately $102,000, net of tax, associated with the disposal of three (3) unprofitable restaurants and other real estate transactions.

In the fourth quarter of fiscal 1998, the company determined that it would be more likely than not that a portion of its deferred tax assets would be realized and accordingly lowered its deferred tax valuation allowance reducing the company's income tax provision by $523,000 or $0.11 per share.

Today the Nathan's Famous retail system is comprised of 27 company- owned units, 158 franchised or licensed units, and over 300 Branded Product points-of-distribution located in 27 states, the District of Columbia and three foreign countries, featuring Nathan's all beef hot dogs.

This Article Compliments of...

Iotron Technology Inc.

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