990819 Nathan's Famous Reports First Quarter ResultsAugust 11, 1999Westbury, NY - Nathan's Famous, Inc. reported results for the first quarter ending June 27, 1999. Total revenues were $8,074,000 in the first quarter fiscal 2000 as compared to $7,821,000 in the first quarter fiscal 1999. Systemwide sales of the Nathan's brand, including supermarket sales by the Company's licensee, were $31,753,000 for the thirteen weeks ended June 27, 1999, as compared to $31,833,000 for the thirteen weeks ended June 28, 1998. Earnings before income taxes for the quarter ended June 27, 1999 increased to $810,000 as compared to $763,000 for the quarter ended June 28, 1998. Net earnings for the fiscal 2000 quarter were $469,000 or $0.10 per diluted share as compared to $574,000 or $0.12 per diluted share in the prior fiscal year. Results for the quarter ended June 28, 1998 included an income tax benefit of $136,000, or $0.03 per share, from the reduction of the Company's deferred tax valuation allowance. Net earnings for the quarter ended June 28, 1998, exclusive of the income tax benefit, would have been $438,000 or $0.09 per share. Wayne Norbitz, President and Chief Operating Officer said, “Our Branded Product Program continued its expansion, generating sales of approximately $855,000 during the first fiscal quarter as compared to $576,000 during last years first fiscal quarter. Currently, the Branded Product Program includes over 800 retail points of distribution. The Company is continuing to emphasize the growth of the Branded Product Program and development of smaller restaurant outlets within non-traditional captive markets while seeking to increase sales of our products in supermarkets.” Mr. Norbitz added, “On April 1, 1999, we became the new franchisor of the Kenny Rogers Roasters restaurant system by acquiring the intellectual property of Roasters Corp. and Roasters Franchise Corp. for $1,250,000, excluding expenses. Associated revenues were approximately $178,000 generating incremental pre-tax profits of approximately $57,000 for the quarter.” Mr. Norbitz concluded, “Last years results included sales and profits of $460,000 and $105,000, respectively from two Company-owned Nathan's restaurants that closed due to lease expirations during the second and fourth quarters of our last fiscal year.” Today the Nathan's brand is marketed through 25 Company-owned units, 163 franchised or licensed units, and over 800 Branded Product points of distribution, located in thirty-nine states, the District of Columbia and three foreign countries, featuring Nathan's world famous all-beef hot dogs.
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