Flanigan's Enterprises (BDL) 10-Q 10 Feb 15 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Dec. 27, 2014	Feb. 10, 2015
Document And Entity Information
Entity Registrant Name	FLANIGANS ENTERPRISES INC
Entity Central Index Key	12040
Document Type	10-Q
Document Period End Date	27-Dec-14
Amendment Flag	FALSE
Current Fiscal Year End Date	7
Is Entity a Well-known Seasoned Issuer	No
Is Entity a Voluntary Filer	No
Is Entity's Reporting Status Current	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		1,858,647
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2015

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Dec. 27, 2014	Dec. 28, 2013
REVENUES:
Restaurant food sales	$14,341	$13,301
Restaurant bar sales	4,437	4,006
Package store sales	3,991	3,661
Franchise related revenues	323	293
Rental income	140	130
Owner's fee	38	38
Other operating income	50	46
Total	23,320	21,475
Cost of merchandise sold:
Restaurant and lounges	6,709	6,072
Package goods	2,834	2,585
Payroll and related costs	7,004	6,505
Occupancy costs	1,166	1,169
Selling, general and administrative expenses	4,285	3,928
Total	21,998	20,259
Income from Operations	1,322	1,216
OTHER INCOME (EXPENSE):
Interest expense	-159	-195
Interest and other income	13	18
Total other income (expense)	-146	-177
Income before Provision for Income Taxes	1,176	1,039
Provision for Income Taxes	-317	-230
Net Income	859	809
Less: Net income attributable to noncontrolling interests	-152	-271
Net income attributable to stockholders	$707	$538
Net Income Per Common Share:
Basic and Diluted	$0.38	$0.29
Weighted Average Shares and Equivalent Shares Outstanding
Basic and Diluted	1,858,647	1,859,359

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (USD $)	Dec. 27, 2014	Sep. 27, 2014
In Thousands, unless otherwise specified
Statement of Financial Position [Abstract]
Cash and cash equivalents	$8,215	$8,099
Prepaid income taxes	232	142
Due from franchisees	22
Other receivables	308	522
Inventories	3,205	2,954
Prepaid expenses	1,720	1,234
Deferred tax assets	443	443
Total Current Assets	14,145	13,394
Property and Equipment, Net	35,943	35,936
Investment in Limited Partnership	232	232
Liquor licenses	630	630
Deferred tax assets	925	925
Leasehold interests, net	873	909
Other	1,063	1,077
Total Other Assets	3,491	3,541
Total Assets	53,811	53,103
Accounts payable and accrued expenses	7,946	6,685
Due to franchisees	1,480	1,892
Current portion of long term debt	2,280	1,897
Current portion of deferred rent	16	16
Total Current Liabilities	11,722	10,490
Long-Term Debt, Net of Current Maturities	11,120	11,434
Deferred Rent, Net of Current Portion	110	114
Common stock, $.10 par value, 5,000,000 shares authorized; 4,197,642 shares issued	420	420
Capital in excess of par value	6,240	6,240
Retained earnings	23,300	22,872
Treasury stock, at cost, 2,338,995 shares at December 27, 2014 and 2,338,995 shares at September 27, 2014	-6,077	-6,077
Total Flanigan's Enterprises, Inc. stockholders' equity	23,883	23,455
Noncontrolling interests	6,976	7,610
Total equity	30,859	31,065
Total liabilities and equity	$53,811	$53,103

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) (USD $)	Dec. 27, 2014	Sep. 27, 2014
Statement of Financial Position [Abstract]
Common stock, par value	$0.10	$0.10
Common stock, shares authorized	5,000,000	5,000,000
Common stock, shares issued	4,197,642	4,197,642
Treasury stock, shares, at cost	2,338,995	2,338,995

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Dec. 27, 2014	Dec. 28, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$859	$809
Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities:
Depreciation and amortization	628	598
Amortization of leasehold interests	36	34
Loss on abandonment of property and equipment		2
Deferred rent	-4	-4
Income from unconsolidated limited partnership	-10	-9
(Increase) decrease in:
Due from franchisees	-22	-70
Other receivables	214	-21
Prepaid income taxes	-90	181
Inventories	-251	-468
Prepaid expenses	140	756
Other assets	95	-753
Increase (decrease) in:
Accounts payable and accrued expenses	984	1,285
Income taxes payable		24
Due to franchisees	-412	-488
Net cash and cash equivalents provided by operating activities	2,167	1,876
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	-512	-532
Deposits on property and equipment	-204	-21
Proceeds from sale of fixed assets		26
Distributions from unconsolidated limited partnership	10	8
Net cash and cash equivalents used in investing activities	-706	-519
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments of long term debt	-559	-456
Purchase of treasury stock		-10
Distributions to limited partnerships' noncontrolling interests	-786	-378
Purchase of noncontrolling interests		-145
Net cash and cash equivalents used in financing activities	-1,345	-989
Net Increase in Cash and Cash Equivalents	116	368
Beginning of Period	8,099	7,058
Ending of Period	8,215	7,426
Supplemental Disclosure of Cash Flow Information:
Interest	159	195
Income taxes	406	24
Supplemental Disclosure for Non-Cash Investing and Financing Activities:
Financing of insurance contracts	626	1,469
Purchase deposits transferred to property and equipment	102	31
Dividends declared	$279

BASIS_OF_PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
	Dec. 27, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PRESENTATION	(1) BASIS OF PRESENTATION:
	The accompanying condensed consolidated financial information for the thirteen weeks ended December 27, 2014 and December 28, 2013 are unaudited. Financial information as of September 27, 2014 has been derived from the audited financial statements of the Company, but does not include all disclosures required by accounting principles generally accepted in the United States of America. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the financial information for the periods indicated have been included. For further information regarding the Company's accounting policies, refer to the Consolidated Financial Statements and related notes included in the Company's Annual Report on Form 10-K for the year ended September 27, 2014. Operating results for interim periods are not necessarily indicative of results to be expected for a full year.
	The condensed consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries and the accounts of the eight limited partnerships in which we act as general partner and have controlling interests. All intercompany balances and transactions have been eliminated. Non-controlling interest represents the limited partners' proportionate share of the net assets and results of operations of the eight limited partnerships.
	These condensed consolidated financial statements include estimates relating to performance based officers' bonuses. The estimates are reviewed periodically and the effects of any revisions are reflected in the financial statements in the period they are determined to be necessary. Although these estimates are based on management's knowledge of current events and actions it may take in the future, they may ultimately differ from actual results.

EARNINGS_PER_SHARE

EARNINGS PER SHARE	3 Months Ended
	Dec. 27, 2014
Net Income Per Common Share:
EARNINGS PER SHARE	(2) EARNINGS PER SHARE:
	We follow Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Section 260 - “Earnings per Share”. This section provides for the calculation of basic and diluted earnings per share. The data on Page 3 shows the amounts used in computing earnings per share and the effects on income and the weighted average number of shares of potentially dilutive common stock equivalents. As of December 27, 2014 and December 28, 2013, no stock options were outstanding.

RECENTLY_ADOPTED_AND_RECENT_IS

RECENTLY ADOPTED AND RECENT ISSUED ACCOUNTING PRONOUNCEMENTS	3 Months Ended
	Dec. 27, 2014
Recently Adopted And Recent Issued Accounting Pronouncements
RECENT ADOPTED AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS	(3) RECENTLY ADOPTED AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS:
	Adopted
	In July 2013, the FASB issued guidance on the presentation of an unrecognized tax benefit when a net operating loss carryforward, similar tax loss or tax carryforward exists. The FASB concluded that an unrecognized tax benefit should be presented as a reduction of a deferred tax asset except in certain circumstances the unrecognized tax benefit should be presented as a liability and should not be combined with deferred tax assets. The amendment is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013, with early adoption permitted. The adoption of this guidance did not have an impact on our consolidated financial statements.
	Issued
	There were no recently issued accounting pronouncements during the first quarter of our fiscal year 2015 that we believe will have a material impact on our condensed consolidated financial statements.

PURCHASE_OF_OPERATING_ASSETS_F

PURCHASE OF OPERATING ASSETS FROM LIMITED PARTNERSHIP	3 Months Ended
	Dec. 27, 2014
PURCHASE OF OPERATING ASSETS FROM LIMITED PARTNERSHIP [Abstract]
PURCHASE OF OPERATING ASSETS FROM LIMITED PARTNERSHIP	(4) PURCHASE OF OPERATING ASSETS FROM LIMITED PARTNERSHIP
	During the first quarter of our fiscal year 2015, we purchased from a limited partnership, where we are the sole general partner and a 30% limited partner and our officers, directors or their family members own 35.1% of the remaining limited partnership interests, the operating assets of the restaurant located at 2460 Weston Road, Weston, Broward County, Florida (Store #95) for a purchase price of $351,000, cash at closing, plus prorations of approximately $100,000 and on September 28, 2014 this restaurant began operating as a Company-owned restaurant.

RECENT_EXTENSION_OF_EXISTING_L

RECENT EXTENSION OF EXISTING LEASE FOR EXISTING LOCATION	3 Months Ended
	Dec. 27, 2014
RECENT EXTENSION OF EXISTING LEASE FOR EXISTING LOCATION [Abstract]
RECENT EXTENSION OF EXISTING LEASE FOR EXISTING LOCATION	(5) RECENT EXTENSION OF EXISTING LEASE FOR EXISTING LOCATION
	During the first quarter of our fiscal year 2015, we exercised the final five (5) year renewal option to extend the term of our lease for the combination package liquor store and restaurant we own located at 5450 N. State Road 7, N. Lauderdale, Florida (Store #40) through December 31, 2020 under the existing terms and conditions and were granted an option to purchase the real property and improvements to be exercised on or before December 31, 2020 for a purchase price of $1,200,000, cash at closing.

INCOME_TAXES

INCOME TAXES	3 Months Ended
	Dec. 27, 2014
Income Tax Disclosure [Abstract]
INCOME TAXES	(6) INCOME TAXES:
	We account for our income taxes using FASB ASC Topic 740, “Income Taxes”, which requires among other things, recognition of future tax benefits measured at enacted rates attributable to deductible temporary differences between financial statement and income tax basis of assets and liabilities and to tax net operating loss carryforwards and tax credits to the extent that realization of said tax benefits is more likely than not.

ACQUISITIONS

ACQUISITIONS	3 Months Ended
	Dec. 27, 2014
Acquisitions
ACQUISITIONS	(7) ACQUISITIONS:
	Purchase of Company Common Stock
	During the thirteen weeks ended December 27, 2014, we did not purchase any shares of our common stock. Pursuant to a discretionary plan approved by the Board of Directors at its meeting on May 17, 2007, during the thirteen weeks ended December 28, 2013, we purchased 800 shares of our common stock from the Joseph G. Flanigan Charitable Trust for an aggregate purchase price of $10,000.
	Purchase of Limited Partnership Interests
	During the thirteen weeks ended December 27, 2014, we did not purchase any limited partnership interests. During the thirteen weeks ended December 28, 2013, we purchased from one limited partner (who is not an officer, director or family member of officers or directors)for a purchase price of $5,000, cash at closing, a 1.26%  limited partnership interest in one (1) limited partnership when we are the general partner and which limited partnership owns and operates a restaurant. We also purchased from another limited partner (who is not an officer, director or family member of officers or directors) for an aggregate purchase price of $140,000, cash at closing, a 5.0%, 4.25% and 1.29% limited partnership interest in three separate limited partnerships where we are the general parter and each of which limited partnership owns and operates a restaurant.

COMMITMENTS_AND_CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Dec. 27, 2014
Commitments And Contingencies [Abstract]
COMMITMENTS AND CONTINGENCIES	(8) COMMITMENTS AND CONTINGENCIES:
	Litigation
	From time to time, we are a defendant in litigation arising in the ordinary course of our business, including claims resulting from “slip and fall” accidents, claims under federal and state laws governing access to public accommodations, employment-related claims and claims from guests alleging illness, injury or other food quality, health or operational concerns. To date, none of this litigation, some of which is covered by insurance, has had a material effect on us.
	During the first quarter of our fiscal year 2015, we paid an aggregate of approximately $193,000 in connection with the settlement of seven (7) employment related, self-insured lawsuits filed against us, including against several of our limited partnerships, We previously accrued for this potential self-insured liability in our consolidated balance sheets in the caption "Accounts payable and accrued expenses" in the Company's Annual Report on Form 10-K for the year ended September 27, 2014.

SUBSEQUENT_EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Dec. 27, 2014
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	(9) SUBSEQUENT EVENTS:
	Investment in Real Property
	Subsequent to the first quarter of our fiscal year 2015, we closed on the purchase of the vacant real property (the “Property”), which is contiguous to the real property we own where our combination package liquor store and restaurant located at 2505 N. University Drive, Hollywood, Florida, (Store #19) operates. We intend to construct a building on the Property into which we will re-locate our package liquor store and expand our restaurant into the former package liquor store space. The Property will also provide for a larger parking lot to be used by our customers. We paid $1,500,000 cash at closing for the Property.
	Subsequent events have been evaluated through the date these condensed consolidated financial statements were issued. No additional events required disclosure, other than the items mentioned above.

BUSINESS_SEGMENTS

BUSINESS SEGMENTS	3 Months Ended
	Dec. 27, 2014
Segment Reporting [Abstract]
BUSINESS SEGMENTS	(10) BUSINESS SEGMENTS:
	We operate principally in two reportable segments – package stores and restaurants. The operation of package stores consists of retail liquor sales and related items. Information concerning the revenues and operating income for the thirteen weeks ended December 27, 2014 and December 28, 2013, and identifiable assets for the two reportable segments in which we operate, are shown in the following table. Operating income is total revenue less cost of merchandise sold and operating expenses relative to each segment. In computing operating income, none of the following items have been included: interest expense, other non-operating income and expenses and income taxes. Identifiable assets by segment are those assets that are used in our operations in each segment. Corporate assets are principally cash and real property, improvements, furniture, equipment and vehicles used at our corporate headquarters. We do not have any operations outside of the United States and transactions between restaurants and package liquor stores are not material.
		(in thousands)
		Thirteen Weeks Ending			Thirteen Weeks Ending
		27-Dec-14			28-Dec-13
	Operating Revenues:
	Restaurants	$	18,778		$	17,307
	Package stores		3,991			3,661
	Other revenues		551			507
	Total operating revenues	$	23,320		$	21,475
	Income from Operations Reconciled to Income After Income Taxes and
	Net Income Attributable to Noncontrolling Interests
	Restaurants	$	1,516		$	1,547
	Package stores		331			245
			1,847			1,792
	Corporate expenses, net of other		(525	)		(576	)
	revenues
	Income from Operations		1,322			1,216
	Interest expense		(159	)		(195	)
	Interest and Other income		13			18
	Income Before Income Taxes and Net Income Attributable to	$	1,176		$	1,039
	Noncontrolling Interests
	Provision for Income Taxes		(317	)		(230	)
	Net Income		859			809
	Net Income Attributable to Noncontrolling Interests		(152	)		(271	)
	Net Income Attributable to Flanigan's Enterprises, Inc. Stockholders		707			538
	Depreciation and Amortization:
	Restaurants	$	493		$	478
	Package stores		53			51
			546			529
	Corporate		118			103
	Total Depreciation and Amortization	$	664		$	632
	Capital Expenditures:
	Restaurants	$	326		$	448
	Package stores		56			60
			382			508
	Corporate		232			55
	Total Capital Expenditures	$	614		$	563
		December 27,			September 27,
		2014			2014
	Identifiable Assets:
	Restaurants	$	28,508		$	28,465
	Package store		5,234			4,958
			33,742			33,423
	Corporate		20,069			19,680
	Consolidated Totals	$	53,811		$	53,103

BUSINESS_SEGMENTS_Tables

BUSINESS SEGMENTS (Tables)	3 Months Ended
	Dec. 27, 2014
Business Segments Tables
Schedule of Segment Reporting		(in thousands)
		Thirteen Weeks Ending			Thirteen Weeks Ending
		27-Dec-14			28-Dec-13
	Operating Revenues:
	Restaurants	$	18,778		$	17,307
	Package stores		3,991			3,661
	Other revenues		551			507
	Total operating revenues	$	23,320		$	21,475
	Income from Operations Reconciled to Income After Income Taxes and
	Net Income Attributable to Noncontrolling Interests
	Restaurants	$	1,516		$	1,547
	Package stores		331			245
			1,847			1,792
	Corporate expenses, net of other		(525	)		(576	)
	revenues
	Income from Operations		1,322			1,216
	Interest expense		(159	)		(195	)
	Interest and Other income		13			18
	Income Before Income Taxes and Net Income Attributable to	$	1,176		$	1,039
	Noncontrolling Interests
	Provision for Income Taxes		(317	)		(230	)
	Net Income		859			809
	Net Income Attributable to Noncontrolling Interests		(152	)		(271	)
	Net Income Attributable to Flanigan's Enterprises, Inc. Stockholders		707			538
	Depreciation and Amortization:
	Restaurants	$	493		$	478
	Package stores		53			51
			546			529
	Corporate		118			103
	Total Depreciation and Amortization	$	664		$	632
	Capital Expenditures:
	Restaurants	$	326		$	448
	Package stores		56			60
			382			508
	Corporate		232			55
	Total Capital Expenditures	$	614		$	563
		December 27,			September 27,
		2014			2014
	Identifiable Assets:
	Restaurants	$	28,508		$	28,465
	Package store		5,234			4,958
			33,742			33,423
	Corporate		20,069			19,680
	Consolidated Totals	$	53,811		$	53,103

PURCHASE_OF_OPERATING_ASSETS_F1

PURCHASE OF OPERATING ASSETS FROM LIMITED PARTNERSHIP (Details Narrative) (Limited Partner, Aggregate [Member], USD $)	3 Months Ended
	Dec. 27, 2014
Limited Partner, Aggregate [Member]
Purchase of operating assets from limited partnership [Line Items]
Ownership percentage	30.00%
Percentage of remaining interests	35.10%
Property purchased	$351,000
Prorations received	$100,000

RECENT_EXTENSION_OF_EXISTING_L1

RECENT EXTENSION OF EXISTING LEASE FOR EXISTING LOCATION (Details Narrative) (Fort Lauderdale Florida [Member], USD $)	3 Months Ended
	Dec. 27, 2014
Fort Lauderdale Florida [Member]
Recent extension of existing lease for existing location [Line Items]
Renewal option term	5 years
Option to purchase real property and improvements, purchase price	$1,200,000

ACQUISITIONS_Details_Narrative

ACQUISITIONS (Details Narrative) (USD $)	3 Months Ended
	Dec. 27, 2014	Dec. 28, 2013
Limited Partner two [Member]
Number of limited partners		1
Number of limited partnerships		3
Limited Partner, Partnership One [Member]
Percentage of interest acquired		5.00%
Limited Partner, Partnership Two [Member]
Percentage of interest acquired		4.25%
Limited Partner, Partnership Three [Member]
Percentage of interest acquired		1.29%
Limited Partner, Aggregate [Member]
Purchase of limited partnership interests		$140,000
Percentage of interest acquired	30.00%
Limited Partnership - Acquisition 1 [Member] | Limited Partner one [Member]
Purchase of limited partnership interests		5,000
Percentage of interest acquired		1.26%
Number of limited partners		1
Number of limited partnerships		1
Joseph G. Flanigan Charitable Trust [Member]
Repurchase of common stock (in shares)		800
Repurchase of common stock		$10,000

COMMITMENTS_AND_CONTINGENCIES_

COMMITMENTS AND CONTINGENCIES (Details Narrative) (USD $)	3 Months Ended
	Dec. 27, 2014
	item
Commitments And Contingencies [Abstract]
Aggregate settlement	$193,000
Number of employment related, self-insured lawsuits settled	7

SUBSEQUENT_EVENTS_Details_Narr

SUBSEQUENT EVENTS (Details Narrative) (N. University Drive, Hollywood, Florida [Member], Subsequent Event [Member], USD $)	0 Months Ended
	Dec. 29, 2014
N. University Drive, Hollywood, Florida [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Property purchased	$1,500,000

BUSINESS_SEGMENTS_Details

BUSINESS SEGMENTS (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Dec. 27, 2014	Dec. 28, 2013	Sep. 27, 2014
Operating Revenues:
Operating revenues	$23,320	$21,475
Income before corporate expenses	1,847	1,792
Corporate expenses, net of other revenues	-525	-576
Income from Operations	1,322	1,216
Interest expense	-159	-195
Interest and Other income	13	18
Income Before Income Taxes and Net Income Attributable to Noncontrolling Interests	1,176	1,039
Provision for Income Taxes	-317	-230
Net Income	859	809
Net Income Attributable to Noncontrolling Interests	-152	-271
Net income attributable to stockholders	707	538
Identifiable Assets:
Assets	53,811		53,103
Capital Expenditures:
Capital expenditures	614	563
Depreciation and Amortization:
Depreciation and amortization	664	632
Other income (expense)	-146	-177
Restaurants [Member]
Operating Revenues:
Operating revenues	18,778	17,307
Income before corporate expenses	1,516	1,547
Identifiable Assets:
Assets	28,508		28,465
Capital Expenditures:
Capital expenditures	326	448
Depreciation and Amortization:
Depreciation and amortization	493	478
Package stores [Member]
Operating Revenues:
Operating revenues	3,991	3,661
Income before corporate expenses	331	245
Identifiable Assets:
Assets	5,234		4,958
Capital Expenditures:
Capital expenditures	56	60
Depreciation and Amortization:
Depreciation and amortization	53	51
Other [Member]
Operating Revenues:
Operating revenues	551	507
Total segments [Member]
Identifiable Assets:
Assets	33,742		33,423
Capital Expenditures:
Capital expenditures	382	508
Depreciation and Amortization:
Depreciation and amortization	546	529
Corporate [Member]
Identifiable Assets:
Assets	20,069		19,680
Capital Expenditures:
Capital expenditures	232	55
Depreciation and Amortization:
Depreciation and amortization	$118	$103