Nathan's Famous reports $4M decrease in revenue
Nathan's Famous reported a 41 percent in earnings per share but a $4 million decrease in revenues for the year ending March 26, 2017, compared to the previous 52-week span, a news release said. Other highlights included:
- $4,238,000 decrease in revenues to $96,652,000 this fiscal year as compared to $100,890,000
- 5.3 percent increase from operations to $26,280,000.
- 4.4 percent increase in adjusted EBITDA to $28,348,000.
- 22.8 percent increase in net income to $7,485,000 this fiscal year, compared to $6,096,000 for year ending March 27, 2016.
For restaurant operations this fiscal year over last, the company reported:
- Increase in franchise store operations revenues to $5,068,000 this fiscal year, compared to $5,044,000 last year.
- Decrease in total royalties to $4,290,000 in FY17 compared to $4,293,000 in FY16.
- Increase in total franchise fee income to $778,000 for FY17 compared to $751,000 in FY16.
Nathan's tax rate was reduced by 5.6 percentage points due to early adoption of provisions of the Financial Accounting Standards Board ASU 2016-09, "Stock Compensation," which reduces the company's tax provision for excess tax benefits from stock compensation instead of the past practice of increasing additional paid-in-capital.
Nathan's has purchased 5,127,373 shares of common stock at a cost of approximately $77,303,000 through March 26, 2017, pursuant to share repurchase programs authorized by its board. As of March 26, 2017, an aggregate 260,258 shares were available for purchase under Nathan's stock buy-back program. The company has also entered into a 10b5-1 plan with Mutual Securities, Inc. authorizing MSI to buy shares of the company's common stock on behalf of Nathan Famous, Inc.
Topics: Financial News