Flanigan's Enterprises(BDL) - 2023 Q3 - Quarterly Report

Revenue Growth - Total revenue for the thirteen weeks ended July 1, 2023, increased by $4,697,000 or 11.55% to $45,372,000 compared to $40,675,000 for the same period in 2022[68] - Total sales for the thirty-nine weeks ended July 1, 2023, were $128,815,000, compared to $116,270,000 for the same period in 2022, marking a significant increase[66] - Total revenue for the thirty-nine weeks ended July 1, 2023, increased by $12,628,000 or 10.66% to $131,036,000 from $118,408,000 in the previous year[84] Sales Performance - Restaurant food sales reached $28,126,000 for the thirteen weeks ended July 1, 2023, up from $25,574,000 in the same period of 2022, reflecting an increase due to recent price hikes and new restaurant openings[69] - Comparable weekly restaurant food sales for the thirteen weeks ended July 1, 2023, were $1,901,000, a 2.20% increase from $1,860,000 for the same period in 2022[69] - Restaurant bar sales for the thirteen weeks ended July 1, 2023, totaled $7,687,000, an increase of 13.76% from $6,755,000 for the same period in 2022[70] - Restaurant food sales for the thirty-nine weeks ended July 1, 2023, totaled $80,006,000, an increase of 10.03% from $72,554,000 in 2022[86] - Restaurant bar sales increased to $21,956,000 for the thirty-nine weeks ended July 1, 2023, up from $19,431,000 for the same period in 2022, representing an increase of 7.81%[87] - Package store sales increased to $8,791,000 for the thirteen weeks ended July 1, 2023, compared to $7,626,000 for the same period in 2022, contributing to overall revenue growth[65] - Package store sales totaled $26,853,000 for the thirty-nine weeks ended July 1, 2023, compared to $24,285,000 for the same period in 2022, an increase of 10.59%[88] Cost and Expenses - Operating costs and expenses increased by $4,080,000 or 10.57% to $42,672,000 for the thirteen weeks ended July 1, 2023, compared to $38,592,000 in 2022[73] - Payroll and related costs increased by $1,800,000 or 14.06% to $14,598,000 for the thirteen weeks ended July 1, 2023, compared to $12,798,000 in 2022[76] - Selling, general and administrative expenses rose by $1,410,000 or 21.64% to $7,927,000 for the thirteen weeks ended July 1, 2023, from $6,517,000 in the prior year[79] - Operating costs and expenses rose by $10,718,000 or 9.43% to $124,428,000 for the thirty-nine weeks ended July 1, 2023, from $113,710,000 in the prior year[90] - Payroll and related costs increased by $5,343,000 or 14.42% to $42,408,000 for the thirty-nine weeks ended July 1, 2023, from $37,065,000 in the prior year[93] - Selling, general and administrative expenses rose by $2,896,000 or 14.45% to $22,935,000 for the thirty-nine weeks ended July 1, 2023, compared to $20,039,000 in the previous year[96] Profitability - Gross profit for restaurant food and bar sales increased to $24,078,000, with a gross profit margin of 67.23% for the thirteen weeks ended July 1, 2023, up from 63.28% in 2022[74] - Net income for the thirteen weeks ended July 1, 2023, increased by $447,000 or 22.76% to $2,411,000, with a net income margin of 5.31%[82] - Net income decreased by $1,782,000 or 24.60% to $5,463,000 for the thirty-nine weeks ended July 1, 2023, down from $7,245,000 in the prior year[99] - Net income attributable to Flanigan's Enterprises, Inc. stockholders decreased by $933,000 or 18.44% to $4,126,000 for the thirty-nine weeks ended July 1, 2023, compared to $5,059,000 in the previous year[100] Investments and Assets - The company operates a total of 32 owned/operated units as of July 1, 2023, an increase from 30 units as of October 1, 2022[59] - Current assets as of July 1, 2023, were $37,208,000, down from $50,893,000 as of October 1, 2022, primarily due to increased property purchases[121] - Working capital decreased to $15,609,000 as of July 1, 2023, from $28,717,000 as of October 1, 2022, mainly due to real property purchases and equipment investments[121] - Long-term debt decreased to $23,430,000 as of July 1, 2023, from $25,389,000 as of October 1, 2022, due to the repayment of a $5.5 million term loan[113] - The company invested $900,000 in 90-day certificates of deposit at an average fixed annual interest rate of 4.87% during the thirty-nine weeks ended July 1, 2023[130] Market Conditions - Inflation, particularly in food, beverage, and labor costs, is materially impacting the company's operating results, prompting price increases on the menu[125] - Menu prices for food offerings were increased by approximately 2.06% effective March 26, 2023, and bar offerings by approximately 5.65% effective March 19, 2023, to offset rising costs[68] - The company anticipates an increase in restaurant bar sales for the remainder of fiscal year 2023 due to increased traffic and the operation of the new Miramar restaurant[87] Cash Flow and Dividends - During the thirty-nine weeks ended July 1, 2023, net cash provided by operating activities was $7,200,000, compared to $7,790,000 for the same period in 2022[110] - The company declared a cash dividend of $0.45 per share during the thirty-nine weeks ended July 1, 2023, down from $1.00 per share in the same period of 2022[110]