Nathan's Famous, Inc. Reports First Quarter 2016 Results

JERICHO, N.Y., Aug. 5, 2015 /PRNewswire/ -- Nathan's Famous, Inc. today reported results for the first quarter of its 2016 fiscal year that ended June 28, 2015.  

For the fiscal quarter ended June 28, 2015:

• Revenues increased by 11.1% to $30,654,000, as compared to $27,585,000 during the thirteen weeks ended June 29, 2014;
• Income from operations increased by 12.3% to $7,616,000, as compared to $6,779,000 during the thirteen weeks ended June 29, 2014;
• Adjusted EBITDA, as subsequently defined, increased by 10.9% to $8,257,000 as compared to $7,447,000 for the thirteen weeks ended June 29, 2014;
• Net income was $2,310,000, as compared to $4,071,000 for the thirteen weeks ended June 29, 2014; and
• Earnings per diluted share were $0.50 per share, as compared to $0.89 per share for the thirteen weeks ended June 29, 2014.

The Company reported the following:

• License royalties increased by 17.4% to $6,536,000 during the thirteen weeks ended June 28, 2015, as compared to $5,568,000 during the thirteen weeks ended June 29, 2014. During the thirteen weeks ended June 28, 2015, royalties earned under the John Morrell & Co., agreement increased by 19.7% to $6,095,000 as compared to $5,090,000 of royalties earned during the thirteen weeks ended June 29, 2014. 

• Sales from the Branded Product Program, featuring the sale of Nathan's hot dogs to the foodservice industry, increased by 15.6% to $17,415,000 during the thirteen weeks ended June 28, 2015, as compared to sales of $15,064,000 during the thirteen weeks ended June 29, 2014. The increase is substantially attributable to significant organic growth in our consumer packaged hot dog business as a result of more effective sales, marketing and promotional strategies. 

• Sales from the Company-operated restaurants were $5,299,000 during the thirteen weeks ended June 28, 2015 as compared to $5,291,000 during the thirteen weeks ended June 29, 2014.

• Revenues from franchise operations decreased to $1,227,000 during the thirteen weeks ended June 28, 2015, as compared to $1,489,000 during the thirteen weeks ended June 29, 2014. Total franchise fee income was $41,000 during the thirteen weeks ended June 28, 2015 as compared to $227,000 during the thirteen weeks ended June 29, 2014, primarily due to store opening variances in our international franchising program. Fifteen new franchised units were opened during the thirteen weeks ended June 28, 2015, including ten Branded Menu Program outlets. Nine new franchised units were opened during the thirteen weeks ended June 29, 2014, including five Branded Menu Program outlets and our first location in Costa Rica.

• On March 10, 2015, Nathan's completed its financing of $135.0 million aggregate principal amount of 10.000% Senior Secured Notes due 2020. As a result of this offering, Nathan's results for the thirteen weeks ended June 28, 2015, include interest expense of approximately $3.7 million which has reduced net income by approximately $2.2 million or $0.47 per diluted share. Full report here.