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Sonic Reports Improved Sales And Operating Income

Stocks in this article: SONC

The tables that follow provide information regarding the number of company-owned drive-ins, franchise drive-ins and system drive-ins in operation as of the end of the periods indicated. In addition, these tables provide information regarding franchise sales, system growth in sales, and both franchise and system average drive-in sales and change in same-store sales. System information includes both company-owned and franchise drive-in information, which we believe is useful in analyzing the growth of our brand. While we do not record franchise drive-in sales as revenues, we believe this information is important in understanding our financial performance since we calculate and record franchise royalties based on a percentage of franchise sales. This information also is indicative of the financial health of our franchisees.

SONC-G

 
SONIC CORP.

Unaudited Supplemental Information

(In thousands, except per share amounts)
     
Second Quarter Ended Six Months Ended
Feb. 29, Feb. 28, Feb. 29, Feb. 28,
  2012     2011     2012     2011  
Income Statement Data
Revenues:
Company Drive-In sales: $ 87,185 $ 86,435 $ 183,967 $ 183,709
Franchise Drive-Ins:
Franchise royalties 25,590 24,813 54,381 53,825
Franchise fees 364 517 649 886
Lease revenue 1,261 1,152 2,549 2,519
Other   684     606     1,817     1,730  
115,084 113,523 243,363

 

242,669
Costs and expenses:
Company Drive-Ins:
Food and packaging 24,686 24,564 52,411 51,563
Payroll and other employee benefits 32,740 32,718 67,824 68,275
Other operating expenses, exclusive of depreciation and amortization included below   20,727     20,810     43,638     43,216  
78,153 78,092 163,873

 

163,054
 
Selling, general and administrative 16,084 15,285 31,501 31,566
Depreciation and amortization 10,510 10,367 20,976 20,667
Provision for impairment of long-lived assets   173     176     173     264  
  104,920     103,920     216,523  

 

  215,551  
Other operating income (expense), net   384     (2 )   462     275  
Income from operations 10,548 9,601 27,302

 

27,393
 
Interest expense 7,930 8,141 15,971 16,423
Interest income (139 ) (149 ) (303 ) (352 )
Gain from early extinguishment of debt   -     (5,205 )   -     (5,205 )
Net interest expense   7,791     2,787     15,668  

 

  10,866  
Income before income taxes 2,757 6,814 11,634

 

16,527
Provision for income taxes   1,080     2,466     4,458     4,937  
Net income $ 1,677   $ 4,348   $ 7,176  

 

$ 11,590  
 
Net income per share
Basic $ 0.03   $ 0.07   $ 0.12   $ 0.19  
Diluted $ 0.03   $ 0.07   $ 0.12   $ 0.19  
Weighted average shares used in calculation:
Basic   60,579     61,687     61,136     61,663  
Diluted   60,602     61,865     61,170     61,809  
 
 
SONIC CORP.
Unaudited Supplemental Information
           
Second Quarter Ended Six Months Ended
Feb. 29, Feb. 28, Feb. 29, Feb. 28,
2012 2011 2012 2011
Drive-Ins in Operation
Company:
Total at beginning of period 446 452 446 455
Opened - - - -
Sold to franchisees (34 ) - (34 ) (2 )
Closed (net of reopenings)   -     (1 )   -     (2 )
Total at end of period   412     451     412  

 

  451  
Franchise:
Total at beginning of period 3,109 3,106 3,115 3,117
Opened 10 5 12 14
Acquired from Company 34 - 34 2
Closed (net of reopenings)   (15 )   (7 )   (23 )   (29 )
Total at end of period   3,138     3,104     3,138  

 

  3,104  
System-wide:
Total at beginning of period 3,555 3,558 3,561

 

3,572
Opened 10 5 12

 

14
Closed (net of reopenings)   (15 )   (8 )   (23 )

 

  (31 )
Total at end of period   3,550     3,555     3,550  

 

  3,555  
 
 
Second Quarter Ended Six Months Ended
Feb. 29, Feb. 28, Feb. 29, Feb. 28,
2012 2011 2012 2011
($ in thousands) ($ in thousands)
Sales Analysis
Company drive-ins:
Total sales $ 87,185 $ 86,435 $ 183,967 $ 183,709
Average drive-in sales 201 193 419 409
Change in same-store sales 3.1 % 2.2 % 1.4 % 0.0 %
Franchised drive-ins:
Total sales $

712,903

$ 685,659 $

1,494,126

$ 1,461,951
Average drive-in sales

229

222

480

470
Change in same-store sales

3.6

% 1.0 %

1.7

% -0.9 %
System-wide:
Change in total sales

3.6

% 1.5 %

2.0

% -0.3 %
Average drive-in sales $

225

$

218

$

472

$ 462
Change in same-store sales

3.5

% 1.2 %

1.7

% -0.8 %

 

Note: Change in same-store sales based on restaurants open for a minimum of 15 months.
 
 
SONIC CORP.
Unaudited Supplemental Information
         
Second Quarter Ended Six Months Ended

  Feb. 29,  

  Feb. 28,  

Feb. 29, Feb. 28,
2012 2011 2012 2011

Margin Analysis (percentage of Company Drive-In sales)

Company Drive-Ins:
Food and packaging 28.3% 28.4% 28.5% 28.1%
Payroll and employee benefits* 37.5% 37.8% 36.9% 37.2%
Other operating expenses 23.8% 24.1% 23.7% 23.5%
89.6% 90.3% 89.1% 88.8%
 
* Effective April 1, 2010, the compensation program at the Company Drive-In level was
revised. As a result of these changes, noncontrolling interests are immaterial for the
periods presented and have been included in payroll and other employee benefits.

 

 

  Feb. 29,  

  Aug. 31,  

2012 2011
Balance Sheet Data (In thousands)
 
Cash and cash equivalents 33,949 29,509
Current assets 91,209 93,457
Property, equipment and capital leases, net 450,408 464,875
Total assets 662,246 679,742

 

Current liabilities, including capital lease obligations and long-term debt due within one year

61,576 71,279
Obligations under capital leases due after one year 29,689 30,302
Long-term debt due after one year 474,318 481,835
Total liabilities 613,260 628,046
Stockholders' equity 48,986 51,696




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