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TheStreet Open House

Sonic Doubles Earnings Per Share For Second Fiscal Quarter 2013

Stock quotes in this article: SONC

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.

SONC-G

SONIC CORP.
Unaudited Supplemental Information
(In thousands, except per share amounts)
         
Second Quarter Ended Six Months Ended
February 28, February 29, February 28,   February 29,
  2013     2012     2013     2012  
Statement of Operations
Revenues:
Company Drive-In sales $ 83,706 $ 87,185 $ 177,162 $ 183,967
Franchise Drive-Ins:
Franchise royalties and fees 25,996 25,954 55,916 55,030
Lease revenue 949 1,261 2,435 2,549
Other   490     684     1,636     1,817  
111,141 115,084 237,149 243,363
Costs and expenses:
Company Drive-Ins:
Food and packaging 23,546 24,686 50,178 52,411
Payroll and other employee benefits 31,448 32,740 64,913 67,824

Other operating expenses, exclusive of depreciation and

amortization included below

  18,811     20,727     40,787     43,638  
73,805 78,153 155,878 163,873
 
Selling, general and administrative 15,467 16,084 31,597 31,501
Depreciation and amortization 10,069 10,510 20,664 20,976
Provision for impairment of long-lived assets - 173 - 173
Other operating income, net   (218 )   (384 )   (211 )   (462 )
  99,123     104,536     207,928     216,061  
Income from operations 12,018 10,548 29,221 27,302
 
Interest expense 7,448 7,930 15,123 15,971
Interest income (168 ) (139 ) (309 ) (303 )
Loss from early extinguishment of debt   492     -     492     -  
Net interest expense   7,772     7,791     15,306     15,668  
Income before income taxes 4,246 2,757 13,915 11,634
Provision for income taxes   669     1,080     4,205     4,458  
Net income $ 3,577   $ 1,677   $ 9,710   $ 7,176  
 
Net income per share:
Basic $ 0.06   $ 0.03   $ 0.17   $ 0.12  
Diluted $ 0.06   $ 0.03   $ 0.17   $ 0.12  
Weighted average shares used in calculation:
Basic   55,798     60,579     56,735     61,136  
Diluted   56,423     60,602     57,254     61,170  
SONIC CORP.
Unaudited Supplemental Information
           
Second Quarter Ended Six Months Ended
February 28, February 29, February 28,   February 29,
  2013     2012     2013     2012  
Drive-Ins in Operation
Company:
Total at beginning of period 409 446 409 446
Opened - - - -
Sold to franchisees - (34 ) - (34 )
Closed (net of re-openings)   (4 )   -     (4 )   -  
Total at end of period   405     412     405     412  
Franchise:
Total at beginning of period 3,140 3,109 3,147 3,115
Opened 3 10 4 12
Acquired from company - 34 - 34
Closed (net of re-openings)   (22 )   (15 )   (30 )   (23 )
Total at end of period   3,121     3,138     3,121     3,138  
System-wide:
Total at beginning of period 3,549 3,555 3,556 3,561
Opened 3 10 4 12
Closed (net of re-openings)   (26 )   (15 )   (34 )   (23 )
Total at end of period   3,526     3,550     3,526     3,550  
 
 
Second Quarter Ended Six Months Ended
February 28, February 29, February 28,   February 29,
  2013     2012     2013     2012  
($ in thousands) ($ in thousands)
Sales Analysis
Company Drive-Ins:
Total sales $ 83,706 $ 87,185 $ 177,162 $ 183,967
Average drive-in sales 207 201 437 419
Change in same-store sales 1.9 % 3.1 % 3.1 % 1.4 %
Franchised Drive-Ins:
Total sales $ 712,934 $ 712,903 $ 1,527,736 $ 1,494,126
Average drive-in sales 232 229 494 480
Change in same-store sales -0.3 % 3.6 % 1.3 % 1.7 %
System-wide:
Change in total sales -0.5 % 3.6 % 1.6 % 2.0 %
Average drive-in sales $ 229 $ 225 $ 487 $ 472
Change in same-store sales 0.0 % 3.5 % 1.5 % 1.7 %
 
 
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
February 28, February 29, February 28,   February 29,
  2013     2012     2013     2012  
Revenues (in thousands)
Company Drive-In sales $ 83,706 $ 87,185 $ 177,162 $ 183,967
Franchise Drive-Ins:
Franchise royalties 25,821 25,590 55,736 54,381
Franchise fees 175 364 180 649
Lease revenue 949 1,261 2,435 2,549
Other   490     684     1,636     1,817  
$ 111,141   $ 115,084   $ 237,149   $ 243,363  
 
Second Quarter Ended Six Months Ended
February 28, February 29, February 28,   February 29,
  2013     2012     2013     2012  
Margin Analysis (percentage of Company Drive-In sales)
Company Drive-Ins:
Food and packaging 28.1 % 28.3 % 28.3 % 28.5 %
Payroll and employee benefits 37.6 % 37.5 % 36.6 % 36.9 %
Other operating expenses   22.5 %   23.8 %   23.1 %   23.7 %
88.2 % 89.6 % 88.0 % 89.1 %
 
 
February 28, August 31,
  2013     2012  
Balance Sheet Data (In thousands)
Cash and cash equivalents $ 42,487 $ 52,647
Current assets 96,108 107,151
Property, equipment and capital leases, net 397,883 443,008
Total assets 624,663 680,760
 
Current liabilities, including capital lease obligations and long-term debt due within one year 63,482 80,516
Obligations under capital leases due after one year 25,004 27,377
Long-term debt due after one year 439,744 466,613
Total liabilities 575,908 621,513
Stockholders' equity $ 48,755 $ 59,247




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