Nathan's Famous Inc. reported results for the third quarter of its 2013 fiscal year that ended Dec. 23, 2012. Details include:
- Net income was $1,062,000 as compared to $1,211,000 for the 13 weeks ended Dec. 25, 2011;
- Earnings per diluted share was $0.23 as compared to $0.24 for the 13 weeks ended Dec. 25, 2011;
- Non-GAAP earnings, which exclude the litigation expense items described below, were $1,130,000or $0.24 per diluted share, as compared to $1,284,000 or $0.25 per diluted share for the 13 weeks ended Dec. 25, 2011; and
- Revenues increased 1.5 percent to $15,025,000, as compared to $14,800,000 during the 13 weeks ended Dec. 25, 2011.
For the 39 weeks ended Dec. 23, 2012, net income was up 16.5 percent, and revenues jumped 9.2 percent.
October's Hurricane Sandy forced the closing of all company-owned restaurants. Seventy-eight franchised restaurants, including 18 Branded Menu locations, also closed for varying periods of time, two of which remain closed.
Nathan's flagship Coney Island restaurant and new Boardwalk restaurant have been closed since the storm. The new Coney Island Boardwalk restaurant sustained minor damage and is anticipated to re-open in March. The Coney Island restaurant incurred significant damage. The company is seeking to re-open the restaurant during the spring.
Also of note, Nathan's entered into a definitive and binding letter agreement with John Morrell & Co, a subsidiary of Smithfield Foods Inc., to become Nathan's exclusive licensee to manufacture and sell branded hot dog, sausage and corned beef products at retail. The agreement begins on March 2, 2014 for a term of 18 years providing royalties of 10.8 percent of net sales, subject to annual minimum royalties which start at $10 million in the first year and increase annually throughout the term.
Sales from the Branded Product Program, featuring the sale of Nathan's hot dogs to the foodservice industry, increased 12.1 percent during the 39 weeks ended Dec. 23, 2012.
Nathan's executed two Master Development Agreements comprising the Republic of Turkey, including the Turkish Republic of Northern Cyprus and Mexico City, Mexico.
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