Western Sizzlin Reports Third Quarter Results
For the third quarter ended September 30, 2007, net income was $2.5 million or $1.38 per basic and $1.37 per diluted earnings per share compared with net income of $85,000 or $0.07 per basic and diluted earnings per share for the third quarter of 2006.
Western Sizzlin Corporation (BULLETIN BOARD: WSZL) today reported financial results for the third quarter which ended September 30, 2007 and its plans is to file Form 10-Q with the SEC on November 14, 2007. For the third quarter ended September 30, 2007, net income was $2.5 million or $1.38 per basic and $1.37 per diluted earnings per share compared with net income of $85,000 or $0.07 per basic and diluted earnings per share for the third quarter of 2006. Year to date net income for the nine months ended September 30, 2007 was $2.9 million or $1.59 per basic and $1.58 per diluted earnings per share compared with net income for the nine months ended September 30, 2006 of $234,000 or $0.20 per basic and diluted earnings per share. Net income for 2007 has been affected by realized gains in marketable securities of $3.6 million, net after taxes of $2.3 million, largely from the sale of the common stock of Friendly Ice Cream Corporation. We urge shareholders not to rely exclusively on net income figures in judging operating results because the timing of realized gains (or losses) does not impact the intrinsic business value of the company.
Western Sizzlin's objective is to maximize its intrinsic business value per share over the long term. In meeting this objective, the Company will engage in a number of diverse business activities to achieve above-average returns on capital in pursuit of maximizing the eventual net worth of its shareholders. Western Sizzlin Corporation, through wholly-owned subsidiaries, operates and franchises a total of 122 units in 19 states as of November 9, 2007. The Company will continue to franchise restaurants and maximize cash flows.
Source: Western Sizzlin Corporation
WESTERN SIZZLIN CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
Amounts are Preliminary and Subject to Change
Three Months Nine Months
Ended September 30, Ended September 30,
(Amounts in $000's) 2007 2006 2007 2006
Revenues:
Company-operated restaurants $3,443 $3,394 $10,034 $9,971
Franchise operations 1,079 1,092 3,308 3,377
Total revenues 4,522 4,486 13,342 13,348
Costs and expenses:
Company-operated restaurants 3,048 3,071 8,933 8,976
Subleased properties 64 106 151 251
Franchise operations - direct
support 292 263 796 887
Corporate expenses 578 579 1,821 1,843
Depreciation and amortization 266 268 797 792
Total costs and expenses 4,248 4,287 12,498 12,749
Income from operations 274 199 844 599
Other income (expense):
Interest expense (31) (30) (72) (108)
Loss on early extinguishment of long
term debt -- -- -- (92)
Gain on sales of marketable
securities 3,557 -- 3,562 --
Interest income 35 16 65 53
Equity in profit(loss) of joint
venture 53 (29) 118 (68)
Other 7 (6) 6 13
Income before income tax expense
and minority interest 3,895 149 4,524 397
Income tax expense 1,422 65 1,669 163
Income before minority interest 2,473 85 2,855 234
Minority interest in net profit of
limited partnership (1) -- (1) --
Net income $2,472 $85 $2,854 $234
Earnings per share
Basic $1.38 $.07 $1.59 $.20
Diluted $1.37 $.07 $1.58 $.20
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
September 30, December 31,
2007 2006
(unaudited)
(Amounts in $000's)
Assets
Current assets $2,430 $4,510
Non-current portion of notes receivable, net 635 801
Property and equipment, net 1,982 2,270
Investments in marketable securities 9,150 6,509
Cash and cash equivalents held by broker 3,125 --
Franchise royalty contracts, net 788 1,261
Goodwill 4,310 4,310
Financing costs, net 8 12
Investment in unconsolidated joint venture 266 147
Total Assets $22,694 $19,820
Liabilities, Minority Interest and Stockholders' Equity
Current liabilities $1,884 $1,273
Long-term debt, excluding current portion 592 685
Other long-term liabilities 85 69
Deferred income taxes 562 395
Minority interest 1,459 --
Stockholders' equity 18,112 17,398
Total Liabilities, Minority Interest
and Stockholders' Equity $22,694 $19,820
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine Months Ended September 30,
2007 2006
(Amounts in $000's) (unaudited) (unaudited)
Net cash provided by operating activities $1,955 $1,363
Net cash used in investing activities (5,158) (1,532)
Net cash provided by (used in)
financing activities 1,465 (1,371)
Decrease in cash and cash equivalents $(1,738) $(1,540)
Logos, product and company names mentioned are the property of their respective owners.
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