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Nathan's Famous NF Roasters selloff boosts Q2
November 6, 2008
WESTBURY, N.Y. — Results for Nathan's Famous Inc.'s second quarter ended Sept. 28 were postively impacted by the sale of its subsidiary NF Roasters Corp, the company announced.
Revenue from continuing operations increased 3.6 percent to $14.5 million for the quarter, as compared to $14 million during the same quarter last year. Year-to-date total revenue from continuing operations increased by 6.8 percent to $28.6 million, up 6.7 percent compared to $26.8 million during the same period last year.
Net income for the quarter was $1.9 million, up 5.5 percent from $1.8 million same quarter last year. Year-to-date net income was $5.7 million, up 16 percent compared to $4.9 million for the same period last year.
During the period Nathan's realized gains of $2.5 million from the sale of its formerly wholly-owned subsidiary NF Roasters Corp. and additional consideration from the sale of its formerly wholly-owned subsidiary Miami Subs Corp. of $250,000, which was previously deemed contingent and not realized. The total of these gains before income taxes was $3.9 million
The company also reported the following:
- The Branded Product Program, featuring the sale of Nathan's hot dogs to the foodservice industry, saw sales increase by 16.0 percent to $12.9 million, up 16 percent from $11.1 million during the same period last year.
- The profitability of Nathan's Branded Product Program was negatively affected by unprecedented cost increases for primary products.
- Nathan's recognized income of $234,000 in connection with the resolution of a multi-year dispute with a licensee and the expected recovery of $441,000 from the settlement of a multi-year certiorari proceeding at one of its company-owned restaurants during the quarter.
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