Nathan’s Famous, Inc. (NASDAQ:NATH) today reported results for the second quarter ending September 23, 2001.

Earnings before income taxes for the twenty-six weeks ended September 23, 2001 were $2,882,000 as compared to $2,782,000 for the twenty-six weeks ended September 24, 2000. Net earnings for the fiscal 2002 period were $1,616,000 or $0.23 per diluted share as compared to $1,678,000 or $0.24 per diluted share in the prior fiscal year.

During the fiscal 2002 period, earnings before income taxes included the reversal of a previously recorded litigation reserve of $210,000 in connection with the Company’s successful appeal and a gain of $93,000 from the sale of a restaurant. Earnings before income taxes for the fiscal 2001 period included revenue of $367,000 in connection with the introduction of a consolidated food distribution agreement.

Total revenues were $23,661,000 in the fiscal 2002 period as compared to $25,565,000 in the fiscal 2001 period. Systemwide sales of the Company’s brands, including supermarket sales by the Company’s hot dog licensee, were $143,961,000 for the twenty-six weeks ended September 23, 2001, as compared to $152,055,000 for the twenty-six weeks ended September 24, 2000.

Earnings before income taxes for the thirteen week quarter ended September 23, 2001 were $1,169,000 as compared to $1,531,000 for the thirteen week quarter ended September 24, 2000. Net earnings for the fiscal 2002 quarter were $654,000 or $0.09 per diluted share as compared to $933,000 or $0.13 per diluted share in the prior fiscal year. Total revenues were $11,785,000 in the second quarter fiscal 2002 as compared to $12,666,000 in the second quarter fiscal 2001.

The Company also reported the following:


  • Fewer Company-owned restaurants operated, primarily due to the Miami Subs divestiture strategy, which lowered revenues by approximately $1.8 million but improved restaurant profits by approximately $180,000 as compared to the fiscal 2001 twenty-six week period.
  • The introduction of two or more brands into the Miami Subs restaurant system, enabling the July 2001 launch of its new “Miami Subs Plus” concept in South Florida. Currently, 135 of the Company’s Nathan’s, Miami Subs and Kenny Rogers Roasters restaurants are co-branded with another of its brands or with the Arthur Treacher’s brand.
  • The Branded Product Program, featuring the sale of Nathan’s hot dogs to the foodservice industry, has continued to grow, generating sales of approximately $2,491,000 during the fiscal 2002 twenty-six week period as compared to $1,958,000 during last year’s comparable period.
  • Sales of Nathan’s products sold in supermarkets and club stores continue to result in year over year increases in royalties, increasing 11.8% for the fiscal 2002 twenty-six week period over the fiscal 2001 twenty-six week period.

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Today Nathan’s Famous, Inc. consists of 23 company-owned units, 379 franchised or licensed units, and more than 1,400 Branded Product points of sale, located within forty-one states, the District of Columbia and seventeen foreign countries featuring the Nathan’s, Miami Subs and Kenny Rogers Roasters brands. For additional information about the Nathan’s, Kenny Rogers Roasters or Miami Subs please visit our website at www.nathansfamous.com

Except for historical information contained in this news release, the matters discussed are forward looking statements that involve risks and uncertainties. Words such as “anticipate”, “believe”, “estimate”, “expect”, “intend”, and similar expressions identify forward-looking statements, which are based on the belief of the Company’s management, as well as assumptions made by and information currently available to the Company’s management. Among the factors that could cause actual results to differ materially are the following: the effect of business and economic conditions; the impact of competitive products and pricing; capacity; the regulatory and trade environment; and the risk factors reported from time to time in the Company’s SEC reports.

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                         Nathan’s Famous, Inc.
Financial Highlights

Second Quarter Ended
——————–
(unaudited)
Sept 23, 2001 Sept. 24, 2000
————- ————–

Total revenues $11,785,000 $12,666,000

Earnings before income taxes $1,169,000 $1,531,000

Net earnings $654,000 $933,000

Net earnings per share
Basic $.09 $.13
Diluted $.09 $.13

Weighted average number of
common shares outstanding
Basic 7,065,000 7,065,000
Diluted 7,080,000 7,155,000

Twenty-six weeks Ended
———————-
(unaudited)
Sept 23, 2001 Sept. 24, 2000
————- ————–

Total revenues $23,661000 $25,565,000

Earnings before income taxes $2,882,000 $2,782,000

Net earnings $1,616,000 $1,678,000

Net earnings per share
Basic $.23 $.24
Diluted $.23 $.24

Weighted average number of
common shares outstanding
Basic 7,065,000 7,053,000
Diluted 7,082,000 7,099,000