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TheStreet Open House

Sonic Reports 25% Increase In Fourth Quarter Earnings

The tables that follow provide information regarding the number of company 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 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.

1 Free cash flow is defined as net income plus depreciation, amortization and stock compensation expense, less capital expenditures.

SONIC CORP.
Unaudited Supplemental Information
(In thousands, except per share amounts)
       
Fourth Quarter Ended Fiscal Year Ended
August 31, August 31,
2012 2011 2012 2011
Statement of Operations
Revenues:
Company Drive-In sales $ 110,406 $ 113,366 $ 404,443 $ 410,820
Franchise Drive-Ins:
Franchise royalties 36,009 35,477 125,989 124,127
Franchise fees 1,173 473 2,024 1,744
Lease revenue 1,970 1,676 6,575 6,023
Other   1,382     192     4,699     3,237  
150,940 151,184 543,730 545,951
Costs and expenses:
Company Drive-Ins:
Food and packaging 30,764 31,957 113,775 115,516
Payroll and other employee benefits 38,168 40,676 144,531 149,417
Other operating expenses, exclusive of depreciation and amortization included below
  23,265     24,538     89,164     91,303  
92,197 97,171 347,470 356,236
 
Selling, general and administrative 16,721 16,165 65,173 64,943
Depreciation and amortization 10,650 10,419 41,914 41,225
Provision for impairment of long-lived assets   388     511     764     824  
  119,956     124,266     455,321     463,228  
Other operating income (expense), net   (82 )   330     531     585  
Income from operations 30,902 27,248 88,940 83,308
 
Interest expense 7,801 8,186 31,608 32,600
Interest income (153 ) (193 ) (630 ) (706 )
Net loss from early extinguishment of debt   -     10     -     23,035  
Net interest expense   7,648     8,003     30,978     54,929  
Income before income taxes 23,254 19,245 57,962 28,379
Provision for income taxes   8,752     6,959     21,877     9,154  
Net income $ 14,502   $ 12,286   $ 36,085   $ 19,225  
 
 
Net income per share:
Basic $ 0.25   $ 0.20   $ 0.60   $ 0.31  
Diluted $ 0.25   $ 0.20   $ 0.60   $ 0.31  
Weighted average shares used in calculation:
Basic   58,103     61,954     60,078     61,781  
Diluted   58,386     62,155     60,172     61,943  
SONIC CORP.
Unaudited Supplemental Information
         
Fourth Quarter Ended Fiscal Year Ended
August 31, August 31,
2012   2011   2012   2011  
Drive-Ins in Operation
Company:
Total at beginning of period 409 445 446 455
Opened 1 3 1 3
Acquired from (sold to) franchisees - 1 (35 ) (5 )
Closed (net of re-openings) (1 ) (3 ) (3 ) (7 )
Total at end of period 409   446   409  

 

446  
Franchise:
Total at beginning of period 3,141 3,114 3,115 3,117
Opened 17 14 36 40
Acquired from (sold to) the company - (1 ) 35 5
Closed (net of re-openings) (11 ) (12 ) (39 ) (47 )
Total at end of period 3,147   3,115   3,147  

 

3,115  
System-wide:
Total at beginning of period 3,550 3,559 3,561

 

3,572
Opened 18 17 37

 

43
Closed (net of re-openings) (12 ) (15 ) (42 )

 

(54 )
Total at end of period 3,556   3,561   3,556  

 

3,561  
    Fourth Quarter Ended   Fiscal Year Ended
August 31, August 31,
2012   2011 2012   2011
($ in thousands) ($ in thousands)
Sales Analysis
Company drive-ins:
Total sales $ 110,406 $ 113,366 $ 404,443 $ 410,820
Average drive-in sales 270 255 958 920
Change in same-store sales 4.3 % 0.4 % 2.8 % 1.8 %
Franchised drive-ins:
Total sales $ 946,330 $ 921,758 $ 3,386,218 $ 3,278,208
Average drive-in sales 301 296 1,081 1,054
Change in same-store sales 2.1 % -0.6 % 2.2 % 0.4 %
System-wide:
Change in total sales 2.1 % 0.9 % 2.7 % 1.9 %
Average drive-in sales $ 297 $ 291 $ 1,066 $ 1,037
Change in same-store sales 2.3 % -0.5 % 2.2 % 0.5 %
 
 
Note: Change in same-store sales based on restaurants open for a minimum of 15 months.
SONIC CORP.
Unaudited Supplemental Information
         
Fourth Quarter Ended Fiscal Year Ended
August 31, August 31,
2012   2011   2012   2011  
Margin Analysis (percentage of Company
Drive-In sales)
Company Drive-Ins:
Food and packaging 27.9 % 28.2 % 28.1 % 28.1 %
Payroll and employee benefits 34.6 % 35.9 % 35.7 % 36.4 %
Other operating expenses 21.0 % 21.6 % 22.1 % 22.2 %
83.5 % 85.7 % 85.9 % 86.7 %
 
August 31, August 31,
2012   2011  
Balance Sheet Data (In thousands)
Cash and cash equivalents 52,647 29,509
Current assets 107,151 93,457
Property, equipment and capital leases, net 443,008 464,875
Total assets 680,760 679,742
 
Current liabilities, including capital lease obligations and long-term debt due within one year 80,516 71,279
Obligations under capital leases due after one year 27,377 30,302
Long-term debt due after one year 466,613 481,835
Total liabilities 621,513 628,046
Stockholders' equity 59,247 51,696

SONC-G

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