Frisch’s Restaurants, Inc. (NYSE MKT: FRS) reported an increase in earnings from continuing operations on a modest decline in revenue from continuing operations during its 12-week fiscal 2013 third quarter that ended March 5, 2013. Consolidated revenue from continuing operations declined 1.1 percent to $45,771,994 from $46,284,545 in last year’s third quarter. Earnings from continuing operations for the quarter increased 1.9 percent to $1,747,849, up from $1,715,217 in last year’s third quarter. Diluted earnings per share from continuing operations were $0.34 per share compared with $0.35 per share last year. Year-to-date revenue from continuing operations was $154,919,802 versus $157,583,464 in the prior year, while year-to-date earnings from continuing operations grew 11.2 percent to $4,706,226 ($0.93 diluted earnings per share)
from $4,234,070 ($0.86 diluted earnings per share) in the prior year. The current fiscal year’s year-to-date net earnings amounted to $4,548,521 or $0.90 diluted net earnings per share.
Net earnings for last year’s 12-week third quarter (ended March 6, 2012) amounted to $2,812,720 or $0.57 diluted net earnings per share. Last year’s third quarter includes results from discontinued operations, which contributed $1,097,503 (net of tax) or $0.22 diluted earnings per share. Net earnings for last year’s year-to-date amounted to $3,326,543 or $0.67 diluted net earnings per share, which includes the effect of the loss of $907,527 (net of tax) from discontinued operations. Discontinued operations consist of the last year’s operating results from Golden Corral restaurants. As reported previously, the Company disposed of its Golden Corral restaurant operations in May 2012, which consisted of the assets of 29 restaurants. In addition, the Company had previously closed six under-performing Golden Corral restaurants in August 2011, which resulted in a non-cash pretax asset impairment charge of $4,000,000 that was recorded in the first quarter fiscal 2012.
Same store sales from continuing operations were down 0.9 percent in the third quarter fiscal 2013 while overall sales decreased 1.1 percent as a result of last fiscal year’s closures of underperforming Frisch’s Big Boy restaurants, offset in part by new restaurant openings. Gross profit from continuing operations increased 0.5 percent in the quarter versus the prior year, resulting from relatively flat food and payroll costs as a percentage of revenues combined with menu price increases.