991120 Nathan's Reports 2nd Quarter ResultsNovember 9, 1999Westbury, NY - Nathan's Famous, Inc. reported results for the second quarter ending September 26, 1999. Total revenues were $16,293,000 for the twenty-six weeks ended September 26, 1999 as compared to $15,987,000 for the twenty-six weeks ended September 27, 1998. Systemwide sales of the Nathan's brand, including supermarket sales by the Company's licensee, were $65,653,000 for the fiscal 2000 period, as compared to $64,473,000 for the fiscal 1999 period. Earnings before income taxes for the fiscal 2000 period increased to $1,816,000 as compared to $1,751,000 for the fiscal 1999 period. Net earnings for the fiscal 2000 period were $1,085,000, or $0.23 per diluted share, as compared to $1,325,000, or $0.28 per diluted share, in the fiscal 1999 period. Results for the fiscal 1999 period included an income tax benefit of $311,000, or $0.07 per share, from the reduction of the Company's deferred tax valuation allowance. Net earnings for the fiscal 1999 period, exclusive of the income tax benefit, would have been $1,014,000, or $0.21 per share. Results for the fiscal 1999 period included sales and pre-tax profits of $831,000 and $165,000, respectively, from two Company-owned Nathan's restaurants that closed due to lease expirations during the second and fourth quarters of fiscal 1999. Total revenues for the second quarter fiscal 2000 were $8,219,000 as compared to $8,166,000 in the second quarter fiscal 1999. Earnings before income taxes for the quarter ended September 26, 1999 were $1,006,000 as compared to $988,000 for the quarter ended September 27, 1998. Net earnings for the second quarter fiscal 2000 were $616,000, or $0.13 per diluted share, as compared to $751,000, or $0.16 per diluted share, in the second quarter fiscal 1999. Results for the second quarter fiscal 1999 included an income tax benefit of $185,000, or $0.04 per share, from the reduction of the Company's deferred tax valuation allowance. Net earnings for the second quarter fiscal 1999, exclusive of the income tax benefit, would have been $566,000 or $0.12 per share. Wayne Norbitz, President and Chief Operating Officer said, “Our Branded Product Program continued to grow, generating sales of approximately $1,622,000 during the fiscal 2000 period as compared to $1,260,000 during the fiscal 1999 period. Currently, the Branded Product Program includes over 900 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 its products in supermarkets.” Mr. Norbitz continued, “On April 1, 1999, we became the new franchiser of the Kenny Rogers Roasters restaurant system by acquiring the intellectual property of Roasters Corp. and Roasters Franchise Corp. On September 30, 1999, we also completed our merger with Miami Subs Corporation and are very excited about the opportunities that we expect will be afforded by marketing these brands and their signature products independently, as well as together, through co-branding efforts. As a result of the Miami Subs acquisition, we have also acquired the exclusive rights to market the Arthur Treachers brand and products in any co-branding environment.” Mr. Norbitz concluded, “As a result of our acquisitions of Miami Subs and Kenny Rogers Roasters our Company today consists of 37 Company-owned units, 421 franchised or licensed units, in addition to over 900 Branded Product points of distribution that feature Nathan's world famous all-beef hot dogs, located in forty-one states, the District of Columbia and seventeen foreign countries.”
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