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TheStreet Open House

Sonic Reports Third Fiscal Quarter 2013 Financial Results

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 expenses, less capital expenditures.

SONC-G

                       
 
SONIC CORP.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
 
Three months ended Nine months ended
May 31, May 31,
2013     2012     2013     2012
Revenues:
Company Drive-In sales $ 108,445 $ 110,070 $ 285,607 $ 294,037
Franchise Drive-Ins:
Franchise royalties and fees 35,833 35,801 91,749 90,831
Lease revenue 1,089 2,056 3,524 4,605
Other 1,267   1,500   2,903   3,317  
Total revenues 146,634 149,427 383,783 392,790
Costs and expenses:
Company Drive-Ins:
Food and packaging 30,776 30,600 80,954 83,011
Payroll and other employee benefits 37,924 38,539 102,837 106,363
Other operating expenses, exclusive of
depreciation and amortization included below 21,356   22,261   62,143   65,899  
Total cost of Company Drive-In sales 90,056 91,400 245,934 255,273
 
Selling, general and administrative 16,943 16,951 48,540 48,452
Depreciation and amortization 9,783 10,288 30,447 31,264
Provision for impairment of long-lived assets - 203 - 376
Other operating income, net (142 ) (151 ) (353 ) (613 )
Total costs and expenses 116,640   118,691   324,568   334,752  
Income from operations 29,994 30,736 59,215 58,038
 
Interest expense 7,170 7,836 22,293 23,807
Interest income (153 ) (174 ) (462 ) (477 )
Loss from early extinguishment of debt -   -   492   -  
Net interest expense 7,017   7,662   22,323   23,330  
Income before income taxes 22,977 23,074 36,892 34,708
Provision for income taxes 8,184   8,667   12,389   13,125  
Net income $ 14,793   $ 14,407   $ 24,503   $ 21,583  
 
Basic income per share $ 0.26   $ 0.24   $ 0.43   $ 0.36  
Diluted income per share $ 0.26   $ 0.24   $ 0.43   $ 0.36  
 
Weighted average basic shares 56,005   59,936   56,492   60,736  
Weighted average diluted shares 56,845   59,961   57,118   60,767  
 
               
SONIC CORP.
Unaudited Supplemental Information
 
Three months ended Nine months ended
May 31, May 31, May 31, May 31,
2013     2012     2013     2012
Drive-Ins in Operation
Company:
Total at beginning of period 405 412 409 446
Opened 1 - 1 -
Acquired from (sold to) franchisees 1 (1 ) 1 (35 )
Closed (net of re-openings) -   (2 ) (4 ) (2 )
Total at end of period 407   409   407   409  
Franchise:
Total at beginning of period 3,121 3,138 3,147 3,115
Opened 5 7 9 19
Acquired from (sold to) the company (1 ) 1 (1 ) 35
Closed (net of re-openings) (6 ) (5 ) (36 ) (28 )
Total at end of period 3,119   3,141   3,119   3,141  
System-wide:
Total at beginning of period 3,526 3,550 3,556 3,561
Opened 6 7 10 19
Closed (net of re-openings) (6 ) (7 ) (40 ) (30 )
Total at end of period 3,526   3,550   3,526   3,550  
 
 
      Three months ended       Nine months ended

 

May 31,

   

May 31,

 

May 31,

    May 31,

 

2013

      2012      

 

 

2013

      2012
($ in thousands) ($ in thousands)
Sales Analysis    
Company Drive-Ins:
Total sales $ 108,445 $ 110,070 $ 285,607 $ 294,037
Average drive-in sales 267 268 704 688
Change in same-store sales (1.1 ) % 3.7 % 1.5 % 2.3 %
Franchised Drive-Ins:
Total sales $ 937,092 $ 934,449 $ 2,469,033 $ 2,431,649
Average drive-in sales 306 298 798 779
Change in same-store sales 0.2 % 2.7 % 0.9 % 2.2 %
System-wide:
Change in total sales 0.1 % 2.4 % 1.0 % 2.9 %
Average drive-in sales $ 301 $ 294 $ 787 $ 768
Change in same-store sales 0.1 % 2.8 % 0.9 % 2.2 %
 

Note: Change in same-store sales based on restaurants open for a minimum of 15 months.

                       
SONIC CORP.
Unaudited Supplemental Information
 
Three months ended Nine months ended
May 31, May 31, May 31, May 31,
2013         2012         2013         2012
Revenues (in thousands)
Company Drive-In sales $ 108,445 $ 110,070 $ 285,607 $ 294,037
Franchise Drive-Ins:
Franchise royalties 35,756 35,599 91,491 89,980
Franchise fees 77 202 258 851
Lease revenue 1,089 2,056 3,524 4,605
Other 1,267 1,500 2,903 3,317
Total revenues $ 146,634 $ 149,427 $ 383,783 $ 392,790
 
               
Three months ended Nine months ended
May 31, May 31, May 31, May 31,
2013       2012       2013       2012
Margin Analysis (percentage of Company Drive-In sales)
Company Drive-Ins:
Food and packaging 28.4 % 27.8 % 28.3 % 28.2 %
Payroll and employee benefits 35.0 35.0 36.0 36.2
Other operating expenses 19.6 20.2 21.8 22.4
Cost of Company Drive-In sales 83.0 % 83.0 % 86.1 % 86.8 %
 
           
May 31, August 31,
2013     2012
Balance Sheet Data (In thousands)
Cash and cash equivalents $ 53,554 $ 52,647
Current assets 110,948 107,151
Property, equipment and capital leases, net 400,968 443,008
Total assets 642,504 680,760
 
Current liabilities, including capital lease obligations and
long-term debt due within one year 71,865 80,516
Obligations under capital leases due after one year 23,904 27,377
Long-term debt due after one year 436,135 466,613
Total liabilities 582,068 621,513
Stockholders' equity $ 60,436 $ 59,247
 




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