Flanigan's Enterprises(BDL) - 2023 Q2 - Quarterly Report

Revenue Growth - Total revenue for the thirteen weeks ended April 1, 2023, increased by $3,473,000 or 8.61% to $43,803,000 compared to $40,330,000 for the same period in 2022[53] - Total revenue for the twenty-six weeks ended April 1, 2023, increased by $7,931,000 or 10.20% to $85,664,000 from $77,733,000 in the prior year[68] - The company expects restaurant food and bar sales to continue increasing due to higher restaurant traffic and the opening of the 2023 Miramar Restaurant in the third quarter of fiscal year 2023[54][55] Sales Breakdown - Restaurant food sales reached $27,113,000 for the thirteen weeks ended April 1, 2023, up from $24,775,000 in the same period of 2022, reflecting an increase of 9.00%[54] - Restaurant bar sales totaled $7,281,000 for the thirteen weeks ended April 1, 2023, compared to $6,669,000 for the same period in 2022, marking an increase of 9.15%[55] - Package store sales increased to $8,659,000 for the thirteen weeks ended April 1, 2023, from $8,148,000 in the same period of 2022, representing a growth of 6.25%[51] - Package store sales revenue increased to $18,062,000 for the twenty-six weeks ended April 1, 2023, up from $16,659,000 for the same period in 2022, representing an increase of 8.41%[72] Operating Costs and Expenses - Operating costs and expenses increased by $2,612,000 or 6.79% to $41,092,000 for the thirteen weeks ended April 1, 2023, from $38,480,000 in the prior year[57] - Operating costs and expenses increased by $6,638,000 or 8.84% to $81,756,000, but decreased as a percentage of total revenue to approximately 95.44% from 96.64% year-over-year[74] - Payroll and related costs increased by $2,143,000 or 17.81% to $14,174,000 for the thirteen weeks ended April 1, 2023, representing 32.36% of total revenue[61] - Payroll and related costs increased by $3,543,000 or 14.60% to $27,810,000, with payroll as a percentage of total revenue rising to 32.46% from 31.22%[77] Profitability - Gross profit for restaurant food and bar sales increased to $23,184,000, with a gross profit margin of 67.41% for the thirteen weeks ended April 1, 2023, compared to 63.83% in the prior year[59] - Gross profit for restaurant food and bar sales rose to $44,133,000, with a gross profit margin of 66.72% for the twenty-six weeks ended April 1, 2023, compared to $37,949,000 and 63.61% in the prior year[75] - Net income for the thirteen weeks ended April 1, 2023, increased by $835,000 or 62.17% to $2,178,000, with a net income margin of 4.97%[66] - Net income decreased by $2,229,000 or 42.21% to $3,052,000, with net income as a percentage of revenue falling to 3.56% from 6.79%[82] Capital and Cash Flow - As of April 1, 2023, cash and cash equivalents were approximately $37,764,000, a decrease of $4,374,000 from $42,138,000 as of October 1, 2022[89] - Net cash provided by operating activities for the twenty-six weeks ended April 1, 2023, was $4,194,000, a decrease from $7,190,000 for the same period in 2022, representing a decline of approximately 41.5%[94] - Capital expenditures for the twenty-six weeks ended April 1, 2023, totaled $3,698,000, down from $4,111,000 in the prior year, indicating a decrease of about 10.0%[95] - Long-term debt decreased to $23,732,000 as of April 1, 2023, from $25,389,000 as of October 1, 2022, reflecting a reduction of approximately 6.5%[98] Future Outlook - The company anticipates continued increases in package liquor store sales and operating costs throughout fiscal year 2023[56][57] - The company anticipates package liquor store sales will continue to increase due to higher traffic and new store openings in Florida[72] - The company plans to increase menu prices for food and bar offerings to target revenue increases of approximately 2.06% and 5.65% annually, respectively[86] - The company expects inflation and supply chain issues to continue impacting operations, but believes current cash availability will be sufficient to fund operations for at least the next twelve months[92] Other Financial Metrics - The company did not declare or pay a cash dividend during the twenty-six weeks ended April 1, 2023, compared to a cash dividend of $1.00 per share in the same period of 2022[94] - The working capital as of April 1, 2023, was $26,033,000, down from $28,717,000 as of October 1, 2022, showing a decrease of about 9.3%[105] - The Post-Distribution Basic Fixed Charge Coverage Ratio was calculated to be 1.35 to 1.00 for the twelve months ended April 1, 2023, above the required minimum of 1.15 to 1.00[99] - The company invested $600,000 in 90-day certificates of deposit at an average fixed annual interest rate of 4.52% during the twenty-six weeks ended April 1, 2023[113]