Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Oct. 03, 2015 | Dec. 23, 2015 | Mar. 28, 2015 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | FLANIGANS ENTERPRISES INC | ||
Entity Central Index Key | 12,040 | ||
Document Type | 10-K | ||
Document Period End Date | Oct. 3, 2015 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --10-03 | ||
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 | ||
Entity Public Float | $ 25,818,000 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,015 | ||
Trading Symbol | BDL |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Oct. 03, 2015 | Sep. 27, 2014 |
Current Assets: | ||
Cash and cash equivalents | $ 9,267,000 | $ 8,099,000 |
Prepaid income taxes | 142,000 | |
Other receivables | 571,000 | 522,000 |
Inventories | 2,410,000 | 2,954,000 |
Prepaid expenses | 1,094,000 | 1,234,000 |
Deferred tax assets | 375,000 | 443,000 |
Total Current Assets | 13,717,000 | 13,394,000 |
Property and Equipment, Net | 37,578,000 | 35,936,000 |
Investment in Limited Partnership | 225,000 | 232,000 |
Other Assets: | ||
Liquor licenses | 630,000 | 630,000 |
Deferred tax assets | 903,000 | 925,000 |
Leasehold interests, net | 781,000 | 909,000 |
Other | 788,000 | 1,077,000 |
Total other assets | 3,102,000 | 3,541,000 |
Total assets | 54,622,000 | 53,103,000 |
Current Liabilities: | ||
Accounts payable and accrued expenses | 7,292,000 | $ 6,685,000 |
Income taxes payable | 143,000 | |
Due to franchisees | 1,893,000 | $ 1,892,000 |
Current portion of long term debt | 1,307,000 | 1,897,000 |
Deferred rent | 14,000 | 16,000 |
Total current liabilities | 10,649,000 | 10,490,000 |
Long-Term Debt, Net of Current Portion | 10,073,000 | 11,434,000 |
Deferred Rent, Net of Current Portion | $ 101,000 | $ 114,000 |
Commitments and Contingencies | ||
Flanigan's Enterprises, Inc. stockholders' equity | ||
Common stock, $.10 par value; 5,000,000 shares authorized; 4,197,642 shares issued; 1,858,647 outstanding for years ended 2015 and 2014 | $ 420,000 | $ 420,000 |
Capital in excess of par value | 6,240,000 | 6,240,000 |
Retained earnings | 26,054,000 | 22,872,000 |
Treasury stock, at cost, 2,338,995 shares for the years ended 2015 and 2014 | (6,077,000) | (6,077,000) |
Total Flanigan's Enterprises, Inc. stockholders' equity | 26,637,000 | 23,455,000 |
Noncontrolling interests | 7,162,000 | 7,610,000 |
Total equity | 33,799,000 | 31,065,000 |
Total liabilities and equity | $ 54,622,000 | $ 53,103,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Oct. 03, 2015 | Sep. 27, 2014 |
CONSOLIDATED BALANCE SHEETS [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 |
Common stock, shares outstanding | 1,858,647 | 1,858,647 |
Treasury stock, shares, at cost | 2,338,995 | 2,338,995 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) | 12 Months Ended | |
Oct. 03, 2015 | Sep. 27, 2014 | |
Revenues: | ||
Restaurant food sales | $ 62,347,000 | $ 56,810,000 |
Restaurant bar sales | 19,155,000 | 17,035,000 |
Package store sales | 15,166,000 | 13,806,000 |
Franchise-related revenues | 1,537,000 | 1,261,000 |
Owner's fee | 163,000 | 138,000 |
Other operating income | 212,000 | 205,000 |
Rental income | 541,000 | 547,000 |
Total | 99,121,000 | 89,802,000 |
Cost of merchandise sold: | ||
Restaurant and lounges | 29,022,000 | 25,726,000 |
Package goods | 10,760,000 | 9,648,000 |
Payroll and related costs | 30,173,000 | 27,336,000 |
Occupancy costs | 4,961,000 | 4,609,000 |
Selling, general and administrative expenses | 16,804,000 | 15,969,000 |
Total | 91,720,000 | 83,288,000 |
Income from Operations | 7,401,000 | 6,514,000 |
Other Income (Expense): | ||
Interest expense | (610,000) | (736,000) |
Interest and other income | 102,000 | 144,000 |
Total other income (expense) | (508,000) | (592,000) |
Income Before Provision for Income Taxes | 6,893,000 | 5,922,000 |
Provision for Income Taxes | (1,654,000) | (1,326,000) |
Net Income | 5,239,000 | 4,596,000 |
Less: Net Income Attributable to Noncontrolling Interests | (1,778,000) | (1,831,000) |
Net Income Attributable to Flanigan's Enterprises, Inc. Stockholders | $ 3,461,000 | $ 2,765,000 |
Net Income Per Common Share: | ||
Basic and Diluted | $ 1.86 | $ 1.49 |
Weighted Average Shares and Equivalent Shares Outstanding | ||
Basic and Diluted | 1,858,647 | 1,858,825 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) | Common Stock | Capital in Excess of Par Value | Retained Earnings | Treasury Stock | Noncontrolling Interests | Total |
Balance, beginning at Sep. 28, 2013 | $ 420,000 | $ 6,240,000 | $ 20,107,000 | $ (6,067,000) | $ 7,586,000 | $ 28,286,000 |
Balance, shares, beginning at Sep. 28, 2013 | 4,197,642 | 2,338,195 | ||||
Net income | $ 2,765,000 | $ 1,831,000 | 4,596,000 | |||
Purchase of treasury stock | $ (10,000) | (10,000) | ||||
Purchase of treasury stock, shares | 800 | |||||
Distributions to noncontrolling interests | $ (1,662,000) | (1,662,000) | ||||
Purchase of noncontrolling interests | (145,000) | (145,000) | ||||
Balance, ending at Sep. 27, 2014 | $ 420,000 | $ 6,240,000 | $ 22,872,000 | $ (6,077,000) | 7,610,000 | 31,065,000 |
Balance, shares, ending at Sep. 27, 2014 | 4,197,642 | 2,338,995 | ||||
Net income | $ 3,461,000 | 1,778,000 | 5,239,000 | |||
Distributions to noncontrolling interests | $ (2,226,000) | (2,226,000) | ||||
Dividends paid | $ (279,000) | (279,000) | ||||
Balance, ending at Oct. 03, 2015 | $ 420,000 | $ 6,240,000 | $ 26,054,000 | $ (6,077,000) | $ 7,162,000 | $ 33,799,000 |
Balance, shares, ending at Oct. 03, 2015 | 4,197,642 | 2,338,995 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Oct. 03, 2015 | Sep. 27, 2014 | |
Cash Flows from Operating Activities: | ||
Net income | $ 5,239,000 | $ 4,596,000 |
Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities: | ||
Depreciation and amortization | 2,545,000 | 2,459,000 |
Amortization of leasehold interests | 128,000 | $ 134,000 |
Gain/loss on sale/abandonment of property and equipment | 28,000 | |
Deferred income taxes | 90,000 | $ 70,000 |
Deferred rent | (15,000) | (16,000) |
Income from unconsolidated limited partnership | (33,000) | (52,000) |
(Increase) decrease in: | ||
Prepaid income taxes | $ 142,000 | 39,000 |
Due from franchisees | 21,000 | |
Other receivables | $ (49,000) | (287,000) |
Inventories | 544,000 | (253,000) |
Prepaid expenses | 1,341,000 | 1,094,000 |
Other assets | 427,000 | (484,000) |
Increase (decrease) in: | ||
Accounts payable and accrued expenses | 609,000 | $ 699,000 |
Income taxes payable | 143,000 | |
Due to franchisees | 1,000 | $ 231,000 |
Net cash and cash equivalents provided by operating activities | 11,140,000 | 8,251,000 |
Cash Flows from Investing Activities: | ||
Purchases of property and equipment | (3,962,000) | (2,531,000) |
Deposit on purchase of fixed assets | $ (356,000) | (135,000) |
Proceeds from sale of fixed assets | 89,000 | |
Distributions from unconsolidated limited partnership | $ 40,000 | 36,000 |
Net cash and cash equivalents used in investing activities | (4,278,000) | (2,541,000) |
Cash Flows from Financing Activities: | ||
Payments of long term debt | $ (3,189,000) | (3,132,000) |
Proceeds from long-term debt | $ 280,000 | |
Dividends paid | $ (279,000) | |
Purchase of treasury stock | $ (10,000) | |
Distributions to noncontrolling interests | $ (2,226,000) | (1,662,000) |
Purchase of noncontrolling interests | (145,000) | |
Net cash and cash equivalents used in financing activities | $ (5,694,000) | (4,669,000) |
Net Increase (Decrease) in Cash and Cash Equivalents | 1,168,000 | 1,041,000 |
Cash and Cash Equivalents, Beginning | 8,099,000 | 7,058,000 |
Cash and Cash Equivalents, Ending | 9,267,000 | 8,099,000 |
Cash paid during the period for: | ||
Interest | 610,000 | 736,000 |
Income taxes | 1,274,000 | 1,095,000 |
Supplemental Disclosure for Non-Cash Investing and Financing Activities: | ||
Financing of insurance contracts | 1,201,000 | 1,469,000 |
Purchase deposits transferred to property and equipment | 131,000 | 68,000 |
Purchase of vehicle in exchange for debt | $ 35,000 | 270,000 |
Purchase of property in exchange for debt | $ 900,000 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Oct. 03, 2015 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization and Capitalization The Company was incorporated in 1959 and operates in South Florida as a chain of full-service restaurants and package liquor stores. Restaurant food and beverage sales make up the majority of our total revenue. At 25 five two one three The Company's Articles of Incorporation, as amended, authorize us to issue and have outstanding at any one time 5,000,000 0.10 We operate under a 52-53 week year ending the Saturday closest to September 30. Our fiscal year 2015 is comprised of a 53-week period and our fiscal year 2014 is comprised of a 52-week period. Principles of Consolidation The consolidated financial statements include the accounts of the Company and our subsidiaries, all of which are wholly owned, and the accounts of the eight limited partnerships in which we act as general partner and have controlling interests. All significant intercompany transactions and balances have been eliminated in consolidation. Use of Estimates The consolidated financial statements and related disclosures are prepared in conformity with accounting principles generally accepted in the United States. We are required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and revenue and expenses during the period reported. These estimates include assessing the estimated useful lives of tangible assets and the recognition of deferred tax assets and liabilities. Estimates and assumptions are reviewed periodically and the effects of revisions are reflected in our consolidated financial statements in the period they are determined to be necessary. Although these estimates are based on our knowledge of current events and actions we may undertake in the future, they may ultimately differ from actual results. Cash and Cash Equivalents We consider all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash equivalents. Inventories Our inventories, which consist primarily of package liquor products, are stated at the lower of average cost or market. Liquor Licenses In accordance with the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 350, Intangibles Goodwill and Other Property and Equipment Our property and equipment are stated at cost. We capitalize expenditures for major improvements and depreciation commences when the assets are placed in service. We record depreciation on a straight-line basis over the estimated useful lives of the respective assets. We charge maintenance and repairs, which do not improve or extend the life of the respective assets, to expense as incurred. When we dispose of assets, the cost and related accumulated depreciation are removed from the accounts and any gain or loss is included in income. Our estimated useful lives range from three five three seven 20 forty Leasehold Interests Our purchase of an existing restaurant location usually includes a lease to the business premises. As a result, a portion of the purchase price is allocated to the leasehold interest. We capitalize the cost of the leasehold interest and amortization commences upon our assumption of the lease. We amortize leasehold interests on a straight line basis over the remaining term of the lease. Investment in Limited Partnerships We use the consolidation method of accounting when we have a controlling interest in other companies and limited partnerships. We use the equity method of accounting when we have an interest between twenty to fifty percent in other companies and limited partnerships, but do not exercise control. Under the equity method, our original investments are recorded at cost and are adjusted for our share of undistributed earnings or losses. All significant intercompany profits are eliminated. Concentrations of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk are cash and cash equivalents. Cash and Cash Equivalents We maintain deposit balances with high quality financial institutions which balances may, from time to time, exceed the federally insured limits, which are $ 250,000 . We have not experienced any losses in such accounts. Major Supplier Throughout our fiscal years 2015 and 2014, we purchased substantially all of our food products from one major supplier pursuant to a master distribution agreement which entitled us to receive certain purchase discounts, rebates and advertising allowances that are recorded as a reduction of cost of merchandise sold in the periods in which they are earned. We believe that several other alternative vendors are available, if necessary. Revenue Recognition We record revenues from normal recurring sales upon the sale of food and beverages and the sale of package liquor products. We report our sales net of sales tax. Continuing royalties, which are a percentage of net sales of franchised stores, are accrued as income when earned. Pre-opening Costs Our pre-opening costs are those typically associated with the opening of a new restaurant and generally include payroll costs associated with the new restaurant openers (a team of select employees who travel to new restaurants to ensure that our high standards for quality are met), rent and promotional costs. We expense pre-opening costs as incurred. Advertising Costs Our advertising costs are expensed as incurred. Advertising costs incurred during our fiscal years ended October 3, 2015 and September 27, 2014 were approximately $ 343,000 461,000 General Liability Insurance We have general liability insurance which incorporates a semi-self-insured plan under which we assume the full risk of the first $ 50,000 10,000 1,000,000 2,000,000 6,000,000 7,000,000 Our general policy is to settle only those legitimate and reasonable claims asserted and to aggressively defend and go to trial, if necessary, on frivolous and unreasonable claims. Under our current liability insurance policy, any expense incurred by us in defending a claim, including adjusters and attorney's fees, are a part of our $ 50,000 10,000 Fair Value of Financial Instruments The respective carrying value of certain of our on-balance-sheet financial instruments approximated their fair value. These instruments include cash and cash equivalents, other receivables, accounts payables, accrued expenses and debt. We have assumed carrying values to approximate fair values for those financial instruments, which are short-term in nature or are receivable or payable on demand. We estimated the fair value of debt based on current rates offered to us for debt of comparable maturities and similar collateral requirements. In accordance with FASB ASC Topic 820-10-50-1, we utilized a valuation model to determine the fair value of our swap agreements. As the valuation models for the swap agreements were based upon observable inputs, they are classified as Level 2 (see Note 13). Derivative Instruments We account for derivative instruments in accordance with FASB ASC Topic 815-10-05-4, Accounting for Derivative Instruments and Hedging Activities Income Taxes We account for our income taxes using FASB ASC Topic 740, Income Taxes We adopted the provisions regarding Accounting for Uncertainty in Income Taxes, 50 Stock-Based Compensation We follow FASB ASC Topic 718, Compensation Stock Compensation Long-Lived Assets We continually evaluate whether events and circumstances have occurred that may warrant revision of the estimated life of our intangible and other long-lived assets or whether the remaining balance of our intangible and other long-lived assets should be evaluated for possible impairment. If and when such factors, events or circumstances indicate that intangible or other long-lived assets should be evaluated for possible impairment, we will determine the fair value of the asset by making an estimate of expected future cash flows over the remaining lives of the respective assets and compare that fair value with the carrying value of the assets in measuring their recoverability. In determining the expected future cash flows, the assets will be grouped at the lowest level for which there are cash flows, at the individual store level. Earnings Per Share We follow FASB ASC Topic 260 - Earnings per Share 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 In July 2015, FASB issued ASU 2015-11, Simplifying the Measurement of Inventory (ASU 2015-11). ASU 2015-11 requires that an entity measure inventory at the lower of cost and net realizable value. This ASU does not apply to inventory measured using last-in, first-out. ASU 2015-11 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The Company does not expect the new standard to have a significant impact on its consolidated financial position, results of operations or cash flows. In April 2015, FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs (ASU 2015-03). In August 2015, FASB issued ASU 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements (ASU 2015-15). ASU 2015-03 will require that debt issuance costs be presented in the balance sheet as a deduction from the carrying amount of the debt. ASU 2015-15 allows an entity to present debt issuance costs associated with a revolving line of credit arrangement as an asset, regardless of whether a balance is outstanding. The recognition and measurement guidance for debt issuance costs are not affected by ASU 2015-03 or ASU 2015-15. These ASU's are effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period, with early adoption permitted. ASU 2015-03 will require the Company to reclassify its deferred financing costs associated with its long-term debt from other assets to long-term debt on a retrospective basis. The new standard will not affect the Company's results of operations or cash flows. In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. This update requires deferred tax liabilities and assets to be classified as noncurrent in the Consolidated Balance Sheet. The standard is required to be adopted for annual periods beginning after December 15, 2016, including interim periods within that annual period, which is our fiscal year 2018. The amendment may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The Company is currently evaluating the effect the adoption of this amendment will have on the Company's consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, InterestImputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. In February 2015, the FASB issued ASU 2015-02, Consolidation: Amendments to the Consolidation Analysis |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Oct. 03, 2015 | |
PROPERTY AND EQUIPMENT [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE 2. PROPERTY AND EQUIPMENT 2015 2014 Furniture and equipment $ 11,073,000 $ 11,435,000 Leasehold improvements 20,639,000 20,047,000 Land and land improvements 16,742,000 15,190,000 Building and improvements 13,653,000 13,343,000 Vehicles 1,183,000 992,000 63,290,000 61,007,000 Less accumulated depreciation and amortization 25,712,000 25,071,000 $ 37,578,000 $ 35,936,000 Depreciation and amortization expense for the fiscal years ended October 3, 2015 and September 27, 2014 was approximately $ 2,545,000 2,459,000 |
LEASEHOLD INTERESTS
LEASEHOLD INTERESTS | 12 Months Ended |
Oct. 03, 2015 | |
LEASEHOLD INTERESTS [Abstract] | |
LEASEHOLD INTERESTS | NOTE 3. LEASEHOLD INTERESTS 2015 2014 Leasehold interests, at cost $ 3,024,000 $ 3,024,000 Less accumulated amortization 2,243,000 2,115,000 $ 781,000 $ 909,000 Future leasehold amortization as of October 3, 2015 is as follows: 2016 $ 122,000 2017 122,000 2018 122,000 2019 122,000 2020 96,000 Thereafter 197,000 Total $ 781,000 |
INVESTMENTS IN LIMITED PARTNERS
INVESTMENTS IN LIMITED PARTNERSHIPS | 12 Months Ended |
Oct. 03, 2015 | |
INVESTMENTS IN LIMITED PARTNERSHIPS [Abstract] | |
INVESTMENTS IN LIMITED PARTNERSHIPS | NOTE 4. INVESTMENTS IN LIMITED PARTNERSHIPS We have invested with others (some of whom are affiliated with our officers and directors) in nine nine limited partner in these limited partnerships, we are the sole general partner of all of these limited partnerships and manage and control the operations of the restaurants except for the restaurant located in Fort Lauderdale, Florida where we only hold a limited partnership interest. Generally, the terms of the limited partnership agreements provide that until the investors' cash investment in a limited partnership (including any cash invested by us) is returned in full, the limited partnership distributes to the investors annually out of available cash from the operation of the restaurant, as a return of capital, up to 25 25 As of 5 3 This 3 Surfside, Florida We are the sole general partner and a 46 33.3 Kendall, Florida We are the sole general partner and a 41 28.3 West Miami, Florida We are the sole general partner and a 27 32.7 Wellington, Florida We are the sole general partner and a 28 22.4 Pinecrest, Florida We are the sole general partner and 45 20.2 Pembroke Pines, Florida We are the sole general partner and a 23 23.8 members. As of the end of our fiscal year 2015, this limited partnership has returned to its investors approximately 62.0 51.0 Davie, Florida We are the sole general partner and a 49 12.3 60.5 51.5 Miami, Florida We are the sole general partner and a 5 26.8 42.0 20.0 Fort Lauderdale, Florida A corporation, owned by a member of our Board of Directors, acts as sole general partner of a limited partnership which has owned and operated a restaurant in Fort Lauderdale, Florida under our Flanigan's Seafood Bar and Grill service mark since April 1, 1997. We have a 25 56.9 2015 2014 Financial Position: Current assets $ 350,000 $ 530,000 Non-current assets 553,000 428,000 Current liabilities 181,000 217,000 Operating Results: Revenues 3,252,000 2,939,000 Gross profit 2,135,000 1,945,000 Net income 133,000 207,000 |
INVESTMENT IN REAL PROPERTY FIN
INVESTMENT IN REAL PROPERTY FINANCED BY DEBT | 12 Months Ended |
Oct. 03, 2015 | |
INVESTMENT IN REAL PROPERTY FINANCED BY DEBT [Abstract] | |
INVESTMENT IN REAL PROPERTY FINANCED BY DEBT | NOTE 5. INVESTMENT IN REAL PROPERTY FINANCED BY DEBT Hollywood/Davie, Florida During the second quarter of our fiscal year 2015, we acquired for $ 1.5 |
PURCHASE OF OPERATING ASSETS FR
PURCHASE OF OPERATING ASSETS FROM LIMITED PARTNERSHIP | 12 Months Ended |
Oct. 03, 2015 | |
PURCHASE OF OPERATING ASSETS FROM LIMITED PARTNERSHIP [Abstract] | |
PURCHASE OF OPERATING ASSETS FROM LIMITED PARTNERSHIP | NOTE 6. During the first quarter of our fiscal year 2015, we purchased from a limited partnership, where we were the general partner and a 30 32.0 351,000 100,000 |
RECENT EXTENSIONS OF EXISTING L
RECENT EXTENSIONS OF EXISTING LEASES FOR EXISTING LOCATIONS | 12 Months Ended |
Oct. 03, 2015 | |
RECENT EXTENSIONS OF EXISTING LEASES FOR EXISTING LOCATIONS [Abstract] | |
RECENT EXTENSIONS OF EXISTING LEASES FOR EXISTING LOCATIONS | NOTE 7. North Lauderdale , Florida During the first quarter of our fiscal year 2015, we (i) exercised the final five ( 5 1,200,000 Hialeah , Florida During the fourth quarter of our fiscal year 2015, we extended our lease for the package liquor store we own located at 1550 W. 84th Street, Hialeah, Florida (Store #7) for a period of five ( 5 1 5 |
RE-FINANCING OF EXISTING DEBT
RE-FINANCING OF EXISTING DEBT | 12 Months Ended |
Oct. 03, 2015 | |
RE-FINANCING OF EXISTING DEBT [Abstract] | |
RE-FINANCING OF EXISTING DEBT | NOTE 8. Financed Insurance Premiums During our fiscal year 2015, we financed the following three ( 3 1.2 (i) 1 1 424,000 389,000 2.99 11 36,000 (ii) For the policy year beginning December 30, 2014, our general liability insurance for our limited partnerships is a one ( 1 1 450,000 413,000 2.99 11 38,000 (iii) For the policy year beginning March 12, 2015, our property insurance is a one ( 1 1 482,000 416,000 2.95 8 52,000 As of October 3, 2015, the aggregate principal balance owed from the financing of our property and general liability insurance policies is $ 252,000 |
LIQUOR LICENSES
LIQUOR LICENSES | 12 Months Ended |
Oct. 03, 2015 | |
LIQUOR LICENSES [Abstract] | |
LIQUOR LICENSES | NOTE 9. LIQUOR LICENSES Liquor licenses, which are indefinite lived assets, are tested for impairment in September of each of our fiscal years. The fair value of liquor licenses at 630,000 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Oct. 03, 2015 | |
INCOME TAXES [Abstract] | |
INCOME TAXES | NOTE 10. INCOME TAXES The components of our provision for income taxes for our fiscal years 2015 and 2014 are as follows: 2015 2014 Current: Federal $ 1,270,000 $ 1,008,000 State 294,000 248,000 Deferred: 1,564,000 1,256,000 Federal 81,000 63,000 State 9,000 7,000 90,000 70,000 $ 1,654,000 $ 1,326,000 A reconciliation of income tax computed at the statutory federal rate to income tax expense is as follows: 2015 2014 Tax provision at the statutory rate of 34 $ 2,344,000 $ 2,013,000 Non controlling interests (605,000 ) (623,000 ) State income taxes, net of federal income tax 212,000 170,000 FICA tip credit (313,000 ) (256,000 ) True up adjustment (16,000 ) (7,000 ) Other permanent items 32,000 29,000 $ 1,654,000 $ 1,326,000 We have deferred tax assets which arise primarily due to depreciation recorded at different rates for tax and book purposes offset by cost basis differences in depreciable assets due to the deferral of the recognition of insurance recoveries on casualty losses for tax purposes, investments in and management fees paid by limited partnerships, accruals for potential uninsured claims, bonuses accrued for book purposes but not paid within two and a half months for tax purposes, the capitalization of certain inventory costs for tax purposes not recognized for financial reporting purposes, the recognition of revenue from gift cards not redeemed within twelve months of issuance, allowances for uncollectable receivables, unfunded limited retirement commitments and tax credit carryforwards generated as a result of the application of alternative minimum taxes. The components of our deferred tax assets at October 3, 2015 and September 27, 2014 were as follows: 2015 2014 Current: Reversal of aged payables $ 27,000 $ 27,000 Capitalized inventory costs 23,000 29,000 Accrued bonuses 327,000 272,000 Accruals for potential uninsured claims 25,000 89,000 Gift cards 141,000 120,000 Limited partnership management fees (168,000 ) (94,000 ) $ 375,000 $ 443,000 Long-Term: Book/tax differences in property and equipment $ 650,000 $ 664,000 Limited partnership investments 213,000 227,000 Accrued limited retirement 40,000 34,000 $ 903,000 $ 925,000 |
DEBT
DEBT | 12 Months Ended |
Oct. 03, 2015 | |
DEBT [Abstract] | |
DEBT | NOTE 11. DEBT Long-Term Debt 2015 2014 Mortgage payable to lender, secured by a first mortgage on real property and improvements, bearing interest at BBA LIBOR 1 2.25 (2.443 3,750,000 4.51 20 23,700 750,000) LIBOR 1 2.25 (2.443 December 1, 2019 $ 3,656,000 $ 3,881,000 Mortgage payable to unrelated third party, secured by first mortgage on real property and improvements, bearing interest at 7 20 15,700 1,331,000 1,826,000 1,875,000 Mortgage payable to lender, secured by a first mortgage on real property and improvements, bearing interest at BBA LIBOR 1 2.25 (2.443 4.35 20 8,775 858,000 January 31, 2023 1,279,000 1,328,000 Term loan payable to lender, secured by a blanket loan on all Company assets, bearing interest at BBA LIBOR 1 3.25 (3.443 4.00 42 41,000 July 24, 2016 399,000 862,000 Term loan payable to lender, secured by a blanket loan on all Company assets, bearing interest at BBA LIBOR 1 2.25 (2.443 3.43 38,000 3 45 December 1, 2015 107,000 533,000 Mortgage payable to a related party, an entity the owners of which include persons who are either our officers, directors or their family members, secured by first mortgage on real property and improvements, bearing interest at 5 15 5,700 457,000 676,000 709,000 Mortgage payable to lender, secured by a first mortgage on real property and improvements, bearing interest at BBA LIBOR 2.25 (2.443 5.11 20 4,600 720,000 785,000 818,000 Mortgage payable to related party, an entity the owners of which include persons who are either our officers, directors or their family members, secured by first mortgage on real property and improvements, bearing interest at 5 15 4,900 391,000 583,000 612,000 Financed insurance premiums, secured by all insurance policies, bearing interest between 2.95 2.99 32,000 June 1, 2016 252,000 779,000 Mortgage payable to related party, an entity the owners of which include persons who are either our officers, directors or their family members, secured by first mortgage on real property and improvements, bearing interest at 5 15 6,000 476,000 706,000 742,000 Mortgage payable to unrelated third party, secured by first mortgage on real property and improvements, bearing interest at 7 20 7,300 869,000 890,000 Other 242,000 302,000 11,380,000 13,331,000 Less current portion 1,307,000 1,897,000 $ 10,073,000 $ 11,434,000 Long-term debt at October 3, 2015 matures as follows: 2016 $ 1,307,000 2017 1,280,000 2018 544,000 2019 536,000 2020 3,040,000 Thereafter 4,673,000 $ 11,380,000 As of October 3, 2015, we are in compliance with the covenants of all loans with our lender. |
COMMITMENTS, CONTINGENCIES AND
COMMITMENTS, CONTINGENCIES AND OTHER MATTERS | 12 Months Ended |
Oct. 03, 2015 | |
COMMITMENTS, CONTINGENCIES AND OTHER MATTERS [Abstract] | |
COMMITMENTS, CONTINGENCIES AND OTHER MATTERS | NOTE 12. COMMITMENTS, CONTINGENCIES AND OTHER MATTERS Legal Matters We are a party to various claims, legal actions and complaints arising in the ordinary course of our business. It is our opinion that all such matters are without merit or involve such amounts that an unfavorable disposition would not have a material adverse effect on our financial position or results of operations. During the first quarter of our fiscal year 2015, we settled seven ( 7 193,000 Leases We lease a substantial portion of the land and buildings used in our operations under leases with initial terms expiring between 2016 and 2027. Renewal options are available on many of our leases. Most of our leases are fixed rent agreements. For one Company-owned restaurant/package liquor store combination unit, lease rental is subject to sales overrides ranging from 3 4 7.3 2 5.5 We have a ground lease for an out parcel in Hollywood, Florida where we constructed a 4,120 54,000 49,000 276,000 6 Future minimum lease payments, including Florida sales tax (currently 6 7 2016 $ 2,841,000 2017 2,674,000 2018 2,194,000 2019 2,099,000 2020 1,508,000 Thereafter 1,449,000 Total $ 12,765,000 Total rent expense for all of our operating leases was approximately $ 3,386,000 3,105,000 2015 2014 Minimum Base Rent $ 2,636,000 $ 2,500,000 Contingent Percentage Rent 750,000 605,000 Total $ 3,386,000 $ 3,105,000 Purchase Commitments In order to fix the cost and ensure adequate supply of baby back ribs for our restaurants during calendar year 2016, on October 15, 2015, we entered into a purchase agreement with our current rib supplier, whereby we agreed to purchase approximately $ 5,076,000 of baby back ribs during calendar year 2016 from this vendor at a fixed cost. While we anticipate purchasing all of our rib supply from these vendors, we believe that several other alternative vendors are available, if necessary. Franchise Program At 25,000 act as fiscal agent for the 3 1 Employment Agreement/Bonuses As of October 3, 2015 and September 27, 2014, we had no employment agreements. Our Board of Directors approved an annual performance bonus, with 14.75 650,000 5.25 1,519,000 1,221,000 Our Board of Directors also approved an annual performance bonus, with 5 1,875,000 5 861,000 715,000 Management Agreements Atlanta, Georgia We own, but do not operate, an adult entertainment nightclub located in Atlanta, Georgia which operates under the name Mardi Gras. We have a management agreement with an unaffiliated third party to manage the club. Under our management agreement, the unaffiliated third party management firm is obligated to pay us an annual amount, paid monthly, equal to the greater of $ 150,000 10 150,000 162,000 138,000 Deerfield Beach, Florida Since January 2006, we have managed The Whale's Rib, a casual dining restaurant located in Deerfield Beach, Florida, pursuant to a management agreement. We paid $ 500,000 10 13,000 62,000 500,000 385,000 |
FAIR VALUE MEASUREMENTS OF FINA
FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Oct. 03, 2015 | |
FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS [Abstract] | |
FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS | NOTE 13. FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS We follow FASB (ASC) Topic 820, Fair Value Measurements and Disclosures, for financial assets and liabilities and for non-financial assets and liabilities that are recognized or disclosed at fair value on at least an annual basis. Topic 820 defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, we consider the principal or most advantageous market in which it would transact and consider assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions and risk of non-performance. Topic 820 establishes a fair market hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Topic 820 establishes three levels of inputs that may be used to measure fair value: Level 1 Inputs Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 Inputs -- Inputs other than quoted prices included in Level 1 that are either directly or indirectly observable through correlation with market data. These include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and inputs to evaluation models or other pricing methodologies that do not require significant judgment because the inputs used in the model, such as interest rates and volatility, can be corroborated by readily observable market data. Level 3 Inputs -- One or more significant inputs that are unobservable and supported by little or no market activity, and that reflect the use of significant management judgment. Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies or similar valuation techniques, and significant management judgment or estimation. Interest Rate Swap Agreements At 4,500,000 1,600,000 located at 4 N. Federal Highway, Hallandale, Florida, (Store #31) operates, which mortgage loan is held by an unaffiliated third party lender (the $1.405M Loan) and borrowed $ 1,595,000 located at 4 N. Federal Highway, Hallandale, Florida, (Store #31) operates. As a means of managing our interest rate risk on these debt instruments, we entered into interest rate swap agreements with our unrelated third party lender to convert these variable rate debt obligations to fixed rates. We are currently party to the following five ( 5 (i) 5.11 935,000 2.25 Under this method of accounting, at he fair value of the Mortgage Loan Swap was not material; and (ii) The second interest rate swap agreement entered into in November, 2011 by our wholly owned subsidiary, Flanigan's Calusa Center, LLC, relates to the $ 4.5 4.51 3,750,000 2.25 that at (iii) The third interest rate swap agreement entered into in November, 2011 relates to the $1.6M Term Loan (the $1.6M Term Loan Swap). The $1.6M Term Loan Swap requires us to pay interest for a four (4) year period at a fixed rate of 3.43 1,600,000 2.25 that at (iv) The fourth interest rate swap agreement entered into in January, 2013 relates to the $1.405M Loan (the $1.405M Term Loan Swap). The $1.405M Term Loan Swap requires us to pay interest for a twenty (20) year period at a fixed rate of 4.35 1,405,000 2.25 that at (v) The fifth interest rate swap agreement entered into in 4.00 1,595,000 3.25 that at |
COMMON STOCK
COMMON STOCK | 12 Months Ended |
Oct. 03, 2015 | |
COMMON STOCK [Abstract] | |
COMMON STOCK | NOTE 14. COMMON STOCK Treasury Stock Purchase of Common Shares During our fiscal year 2015, we did not purchase any shares of our common stock. During our fiscal year 2014, we purchased 800 10,000 65,414 15 Sale of Common Shares During our fiscal years 2015 and 2014, we did not sell any shares of our common stock. Stock Options At a May 15, 2014 meeting, our Board of Directors terminated our stock option plan. We granted no options during our fiscal years 2015 and 2014. We have no options outstanding at October 3, 2015. |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | 12 Months Ended |
Oct. 03, 2015 | |
BUSINESS SEGMENTS [Abstract] | |
BUSINESS SEGMENTS | NOTE 15. BUSINESS SEGMENTS We operate principally in two Operating Revenues: 2015 2014 Restaurants $ 81,502,000 $ 73,845,000 Package stores 15,166,000 13,806,000 Other revenues 2,453,000 2,151,000 Total operating revenues $ 99,121,000 $ 89,802,000 Income from Operations Reconciled to Income after Restaurants $ 8,624,000 $ 7,523,000 Package stores 1,015,000 950,000 9,639,000 8,473,000 Corporate expenses, net of other revenues (2,238,000 ) (1,959,000 ) Income from Operations 7,401,000 6,514,000 Interest expense (610,000 ) (736,000 ) Interest and Other Income 102,000 144,000 Income before provision for income taxes $ 6,893,000 $ 5,922,000 Provision for Income Taxes (1,654,000 ) (1,326,000 ) Net Income 5,239,000 4,596,000 Net Income Attributable to Noncontrolling Interests (1,778,000 ) (1,831,000 ) Net Income Attributable to Flanigan's Enterprises, Inc, $ 3,461,000 $ 2,765,000 Stockholders Identifiable Assets: Restaurants $ 29,478,000 $ 28,465,000 Package store 4,393,000 4,958,000 33,871,000 33,423,000 Corporate 20,751,000 19,680,000 Consolidated Totals $ 54,622,000 $ 53,103,000 Capital Expenditures Restaurants $ 3,453,000 $ 1,548,000 Package stores 246,000 378,000 3,699,000 1,926,000 Corporate 429,000 1,843,000 Total Capital Expenditures $ 4,128,000 $ 3,769,000 Depreciation and Amortization: Restaurants $ 1,975,000 $ 1,971,000 Package stores 205,000 203,000 2,180,000 2,174,000 Corporate 493,000 419,000 Total Depreciation and Amortization $ 2,673,000 $ 2,593,000 |
QUARTERLY INFORMATION (UNAUDITE
QUARTERLY INFORMATION (UNAUDITED) | 12 Months Ended |
Oct. 03, 2015 | |
QUARTERLY INFORMATION (UNAUDITED) [Abstract] | |
QUARTERLY INFORMATION (UNAUDITED) | NOTE 16. QUARTERLY INFORMATION (UNAUDITED) The following is a summary of our unaudited quarterly results of operations for the quarters in our fiscal years 2015 and 2014. Quarter Ended Dec. 27, March 28, June 27, Oct. 3, Revenues $ 23,320,000 $ 25,894,000 $ 24,796,000 $ 25,111,000 Income from operations 1,322,000 2,357,000 1,947,000 1,775,000 Net income attributable to 707,000 1,124,000 842,000 788,000 Net income per share 0.38 0.60 0.45 0.43 Weighted average common stock outstanding basic and diluted 1,858,647 1,858,647 1,858,647 1,858,647 Quarter Ended Dec. 28, March 29, June 28, Sept. 27, Revenues $ 21,475,000 $ 23,771,000 $ 22,817,000 $ 21,739,000 Income from operations 1,216,000 2,076,000 1,972,000 1,250,000 Net income attributable to 538,000 907,000 857,000 463,000 Net income per share 0.29 0.49 0.46 0.25 Weighted average common 1,859,359 1,858,647 1,858,647 1,858,647 Quarterly operating results are not necessarily representative of our operations for a full year for various reasons including the seasonal nature of both the restaurant and package store segments. |
401(k) PLAN
401(k) PLAN | 12 Months Ended |
Oct. 03, 2015 | |
401(k) PLAN [Abstract] | |
401(k) PLAN | NOTE 17. 401(k) PLAN Effective July 2004, we began sponsoring a 401(k) retirement plan covering substantially all employees who meet certain eligibility requirements. Employees may contribute elective deferrals to the plan up to amounts allowed under the Internal Revenue Code. We are not required to contribute to the plan but may make discretionary profit sharing and matching contributions. During our fiscal years 2015 and 2014, we made discretionary contributions of $ 35,000 23,000 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Oct. 03, 2015 | |
SUBSEQUENT EVENTS [Abstract] | |
SUBSEQUENT EVENTS | NOTE 18. SUBSEQUENT EVENTS Subsequent to the fourth quarter of our fiscal year 2015, we purchased the two ( 2 th 922,500 6,000 Subsequent events have been evaluated through the date these consolidated financial statements were issued. No events required disclosure, other than the item noted above. |
SUMMARY OF SIGNIFICANT ACCOUN25
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Oct. 03, 2015 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Organization and Capitalization | Organization and Capitalization The Company was incorporated in 1959 and operates in South Florida as a chain of full-service restaurants and package liquor stores. Restaurant food and beverage sales make up the majority of our total revenue. At 25 five two one three The Company's Articles of Incorporation, as amended, authorize us to issue and have outstanding at any one time 5,000,000 0.10 We operate under a 52-53 week year ending the Saturday closest to September 30. Our fiscal year 2015 is comprised of a 53-week period and our fiscal year 2014 is comprised of a 52-week period. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and our subsidiaries, all of which are wholly owned, and the accounts of the eight limited partnerships in which we act as general partner and have controlling interests. All significant intercompany transactions and balances have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The consolidated financial statements and related disclosures are prepared in conformity with accounting principles generally accepted in the United States. We are required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and revenue and expenses during the period reported. These estimates include assessing the estimated useful lives of tangible assets and the recognition of deferred tax assets and liabilities. Estimates and assumptions are reviewed periodically and the effects of revisions are reflected in our consolidated financial statements in the period they are determined to be necessary. Although these estimates are based on our knowledge of current events and actions we may undertake in the future, they may ultimately differ from actual results. |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash equivalents. We maintain deposit balances with high quality financial institutions which balances may, from time to time, exceed the federally insured limits, which are $ 250,000 . We have not experienced any losses in such accounts. |
Inventories | Inventories Our inventories, which consist primarily of package liquor products, are stated at the lower of average cost or market. |
Liquor Licenses | Liquor Licenses In accordance with the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 350, Intangibles Goodwill and Other |
Property and Equipment | Property and Equipment Our property and equipment are stated at cost. We capitalize expenditures for major improvements and depreciation commences when the assets are placed in service. We record depreciation on a straight-line basis over the estimated useful lives of the respective assets. We charge maintenance and repairs, which do not improve or extend the life of the respective assets, to expense as incurred. When we dispose of assets, the cost and related accumulated depreciation are removed from the accounts and any gain or loss is included in income. Our estimated useful lives range from three five three seven 20 forty |
Leasehold Interests | Leasehold Interests Our purchase of an existing restaurant location usually includes a lease to the business premises. As a result, a portion of the purchase price is allocated to the leasehold interest. We capitalize the cost of the leasehold interest and amortization commences upon our assumption of the lease. We amortize leasehold interests on a straight line basis over the remaining term of the lease. |
Investment in Limited Partnerships | Investment in Limited Partnerships We use the consolidation method of accounting when we have a controlling interest in other companies and limited partnerships. We use the equity method of accounting when we have an interest between twenty to fifty percent in other companies and limited partnerships, but do not exercise control. Under the equity method, our original investments are recorded at cost and are adjusted for our share of undistributed earnings or losses. All significant intercompany profits are eliminated. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk are cash and cash equivalents. |
Major Supplier | Major Supplier Throughout our fiscal years 2015 and 2014, we purchased substantially all of our food products from one major supplier pursuant to a master distribution agreement which entitled us to receive certain purchase discounts, rebates and advertising allowances that are recorded as a reduction of cost of merchandise sold in the periods in which they are earned. We believe that several other alternative vendors are available, if necessary. |
Revenue Recognition | Revenue Recognition We record revenues from normal recurring sales upon the sale of food and beverages and the sale of package liquor products. We report our sales net of sales tax. Continuing royalties, which are a percentage of net sales of franchised stores, are accrued as income when earned. |
Pre-opening Costs | Pre-opening Costs Our pre-opening costs are those typically associated with the opening of a new restaurant and generally include payroll costs associated with the new restaurant openers (a team of select employees who travel to new restaurants to ensure that our high standards for quality are met), rent and promotional costs. We expense pre-opening costs as incurred. |
Advertising Costs | Advertising Costs Our advertising costs are expensed as incurred. Advertising costs incurred during our fiscal years ended October 3, 2015 and September 27, 2014 were approximately $ 343,000 461,000 |
General Liability Insurance | General Liability Insurance We have general liability insurance which incorporates a semi-self-insured plan under which we assume the full risk of the first $ 50,000 10,000 1,000,000 2,000,000 6,000,000 7,000,000 Our general policy is to settle only those legitimate and reasonable claims asserted and to aggressively defend and go to trial, if necessary, on frivolous and unreasonable claims. Under our current liability insurance policy, any expense incurred by us in defending a claim, including adjusters and attorney's fees, are a part of our $ 50,000 10,000 |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The respective carrying value of certain of our on-balance-sheet financial instruments approximated their fair value. These instruments include cash and cash equivalents, other receivables, accounts payables, accrued expenses and debt. We have assumed carrying values to approximate fair values for those financial instruments, which are short-term in nature or are receivable or payable on demand. We estimated the fair value of debt based on current rates offered to us for debt of comparable maturities and similar collateral requirements. In accordance with FASB ASC Topic 820-10-50-1, we utilized a valuation model to determine the fair value of our swap agreements. As the valuation models for the swap agreements were based upon observable inputs, they are classified as Level 2 (see Note 13). |
Derivative Instruments | Derivative Instruments We account for derivative instruments in accordance with FASB ASC Topic 815-10-05-4, Accounting for Derivative Instruments and Hedging Activities |
Income Taxes | Income Taxes We account for our income taxes using FASB ASC Topic 740, Income Taxes We adopted the provisions regarding Accounting for Uncertainty in Income Taxes, 50 |
Stock-Based Compensation | Stock-Based Compensation We follow FASB ASC Topic 718, Compensation Stock Compensation |
Long-Lived Assets | Long-Lived Assets We continually evaluate whether events and circumstances have occurred that may warrant revision of the estimated life of our intangible and other long-lived assets or whether the remaining balance of our intangible and other long-lived assets should be evaluated for possible impairment. If and when such factors, events or circumstances indicate that intangible or other long-lived assets should be evaluated for possible impairment, we will determine the fair value of the asset by making an estimate of expected future cash flows over the remaining lives of the respective assets and compare that fair value with the carrying value of the assets in measuring their recoverability. In determining the expected future cash flows, the assets will be grouped at the lowest level for which there are cash flows, at the individual store level. |
Earnings Per Share | Earnings Per Share We follow FASB ASC Topic 260 - Earnings per Share |
Recently Adopted and Recently Issued Accounting Pronouncements | 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 In July 2015, FASB issued ASU 2015-11, Simplifying the Measurement of Inventory (ASU 2015-11). ASU 2015-11 requires that an entity measure inventory at the lower of cost and net realizable value. This ASU does not apply to inventory measured using last-in, first-out. ASU 2015-11 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The Company does not expect the new standard to have a significant impact on its consolidated financial position, results of operations or cash flows. In April 2015, FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs (ASU 2015-03). In August 2015, FASB issued ASU 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements (ASU 2015-15). ASU 2015-03 will require that debt issuance costs be presented in the balance sheet as a deduction from the carrying amount of the debt. ASU 2015-15 allows an entity to present debt issuance costs associated with a revolving line of credit arrangement as an asset, regardless of whether a balance is outstanding. The recognition and measurement guidance for debt issuance costs are not affected by ASU 2015-03 or ASU 2015-15. These ASU's are effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period, with early adoption permitted. ASU 2015-03 will require the Company to reclassify its deferred financing costs associated with its long-term debt from other assets to long-term debt on a retrospective basis. The new standard will not affect the Company's results of operations or cash flows. In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. This update requires deferred tax liabilities and assets to be classified as noncurrent in the Consolidated Balance Sheet. The standard is required to be adopted for annual periods beginning after December 15, 2016, including interim periods within that annual period, which is our fiscal year 2018. The amendment may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The Company is currently evaluating the effect the adoption of this amendment will have on the Company's consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, InterestImputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. In February 2015, the FASB issued ASU 2015-02, Consolidation: Amendments to the Consolidation Analysis |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Oct. 03, 2015 | |
PROPERTY AND EQUIPMENT [Abstract] | |
Schedule of property and equipment | 2015 2014 Furniture and equipment $ 11,073,000 $ 11,435,000 Leasehold improvements 20,639,000 20,047,000 Land and land improvements 16,742,000 15,190,000 Building and improvements 13,653,000 13,343,000 Vehicles 1,183,000 992,000 63,290,000 61,007,000 Less accumulated depreciation and amortization 25,712,000 25,071,000 $ 37,578,000 $ 35,936,000 |
LEASEHOLD INTERESTS (Tables)
LEASEHOLD INTERESTS (Tables) | 12 Months Ended |
Oct. 03, 2015 | |
LEASEHOLD INTERESTS [Abstract] | |
Schedule of leasehold interests | 2015 2014 Leasehold interests, at cost $ 3,024,000 $ 3,024,000 Less accumulated amortization 2,243,000 2,115,000 $ 781,000 $ 909,000 |
Future amortization of leasehold interests | 2016 $ 122,000 2017 122,000 2018 122,000 2019 122,000 2020 96,000 Thereafter 197,000 Total $ 781,000 |
INVESTMENTS IN LIMITED PARTNE28
INVESTMENTS IN LIMITED PARTNERSHIPS (Tables) | 12 Months Ended |
Oct. 03, 2015 | |
INVESTMENTS IN LIMITED PARTNERSHIPS [Abstract] | |
Financial Information Pertaining to our Limited Partnership Investment | 2015 2014 Financial Position: Current assets $ 350,000 $ 530,000 Non-current assets 553,000 428,000 Current liabilities 181,000 217,000 Operating Results: Revenues 3,252,000 2,939,000 Gross profit 2,135,000 1,945,000 Net income 133,000 207,000 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Oct. 03, 2015 | |
INCOME TAXES [Abstract] | |
Components of the provision for income taxes | 2015 2014 Current: Federal $ 1,270,000 $ 1,008,000 State 294,000 248,000 Deferred: 1,564,000 1,256,000 Federal 81,000 63,000 State 9,000 7,000 90,000 70,000 $ 1,654,000 $ 1,326,000 |
Reconciliation of income tax computed at the statutory federal rate to income tax expense | 2015 2014 Tax provision at the statutory rate of 34 $ 2,344,000 $ 2,013,000 Non controlling interests (605,000 ) (623,000 ) State income taxes, net of federal income tax 212,000 170,000 FICA tip credit (313,000 ) (256,000 ) True up adjustment (16,000 ) (7,000 ) Other permanent items 32,000 29,000 $ 1,654,000 $ 1,326,000 |
Components of deferred tax assets | 2015 2014 Current: Reversal of aged payables $ 27,000 $ 27,000 Capitalized inventory costs 23,000 29,000 Accrued bonuses 327,000 272,000 Accruals for potential uninsured claims 25,000 89,000 Gift cards 141,000 120,000 Limited partnership management fees (168,000 ) (94,000 ) $ 375,000 $ 443,000 Long-Term: Book/tax differences in property and equipment $ 650,000 $ 664,000 Limited partnership investments 213,000 227,000 Accrued limited retirement 40,000 34,000 $ 903,000 $ 925,000 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Oct. 03, 2015 | |
DEBT [Abstract] | |
Long term debt | 2015 2014 Mortgage payable to lender, secured by a first mortgage on real property and improvements, bearing interest at BBA LIBOR 1 2.25 (2.443 3,750,000 4.51 20 23,700 750,000) LIBOR 1 2.25 (2.443 December 1, 2019 $ 3,656,000 $ 3,881,000 Mortgage payable to unrelated third party, secured by first mortgage on real property and improvements, bearing interest at 7 20 15,700 1,331,000 1,826,000 1,875,000 Mortgage payable to lender, secured by a first mortgage on real property and improvements, bearing interest at BBA LIBOR 1 2.25 (2.443 4.35 20 8,775 858,000 January 31, 2023 1,279,000 1,328,000 Term loan payable to lender, secured by a blanket loan on all Company assets, bearing interest at BBA LIBOR 1 3.25 (3.443 4.00 42 41,000 July 24, 2016 399,000 862,000 Term loan payable to lender, secured by a blanket loan on all Company assets, bearing interest at BBA LIBOR 1 2.25 (2.443 3.43 38,000 3 45 December 1, 2015 107,000 533,000 Mortgage payable to a related party, an entity the owners of which include persons who are either our officers, directors or their family members, secured by first mortgage on real property and improvements, bearing interest at 5 15 5,700 457,000 676,000 709,000 Mortgage payable to lender, secured by a first mortgage on real property and improvements, bearing interest at BBA LIBOR 2.25 (2.443 5.11 20 4,600 720,000 785,000 818,000 Mortgage payable to related party, an entity the owners of which include persons who are either our officers, directors or their family members, secured by first mortgage on real property and improvements, bearing interest at 5 15 4,900 391,000 583,000 612,000 Financed insurance premiums, secured by all insurance policies, bearing interest between 2.95 2.99 32,000 June 1, 2016 252,000 779,000 Mortgage payable to related party, an entity the owners of which include persons who are either our officers, directors or their family members, secured by first mortgage on real property and improvements, bearing interest at 5 15 6,000 476,000 706,000 742,000 Mortgage payable to unrelated third party, secured by first mortgage on real property and improvements, bearing interest at 7 20 7,300 869,000 890,000 Other 242,000 302,000 11,380,000 13,331,000 Less current portion 1,307,000 1,897,000 $ 10,073,000 $ 11,434,000 |
Long term debt maturities | 2016 $ 1,307,000 2017 1,280,000 2018 544,000 2019 536,000 2020 3,040,000 Thereafter 4,673,000 $ 11,380,000 |
COMMITMENTS, CONTINGENCIES AN31
COMMITMENTS, CONTINGENCIES AND OTHER MATTERS (Tables) | 12 Months Ended |
Oct. 03, 2015 | |
COMMITMENTS, CONTINGENCIES AND OTHER MATTERS [Abstract] | |
Schedule of future minimum rental payments | Future minimum lease payments, including Florida sales tax (currently 6 7 2016 $ 2,841,000 2017 2,674,000 2018 2,194,000 2019 2,099,000 2020 1,508,000 Thereafter 1,449,000 Total $ 12,765,000 |
Schedule of rent expense | 2015 2014 Minimum Base Rent $ 2,636,000 $ 2,500,000 Contingent Percentage Rent 750,000 605,000 Total $ 3,386,000 $ 3,105,000 |
BUSINESS SEGMENTS (Tables)
BUSINESS SEGMENTS (Tables) | 12 Months Ended |
Oct. 03, 2015 | |
BUSINESS SEGMENTS [Abstract] | |
Schedule of Segment Reporting | Operating Revenues: 2015 2014 Restaurants $ 81,502,000 $ 73,845,000 Package stores 15,166,000 13,806,000 Other revenues 2,453,000 2,151,000 Total operating revenues $ 99,121,000 $ 89,802,000 Income from Operations Reconciled to Income after Restaurants $ 8,624,000 $ 7,523,000 Package stores 1,015,000 950,000 9,639,000 8,473,000 Corporate expenses, net of other revenues (2,238,000 ) (1,959,000 ) Income from Operations 7,401,000 6,514,000 Interest expense (610,000 ) (736,000 ) Interest and Other Income 102,000 144,000 Income before provision for income taxes $ 6,893,000 $ 5,922,000 Provision for Income Taxes (1,654,000 ) (1,326,000 ) Net Income 5,239,000 4,596,000 Net Income Attributable to Noncontrolling Interests (1,778,000 ) (1,831,000 ) Net Income Attributable to Flanigan's Enterprises, Inc, $ 3,461,000 $ 2,765,000 Stockholders Identifiable Assets: Restaurants $ 29,478,000 $ 28,465,000 Package store 4,393,000 4,958,000 33,871,000 33,423,000 Corporate 20,751,000 19,680,000 Consolidated Totals $ 54,622,000 $ 53,103,000 Capital Expenditures Restaurants $ 3,453,000 $ 1,548,000 Package stores 246,000 378,000 3,699,000 1,926,000 Corporate 429,000 1,843,000 Total Capital Expenditures $ 4,128,000 $ 3,769,000 Depreciation and Amortization: Restaurants $ 1,975,000 $ 1,971,000 Package stores 205,000 203,000 2,180,000 2,174,000 Corporate 493,000 419,000 Total Depreciation and Amortization $ 2,673,000 $ 2,593,000 |
QUARTERLY INFORMATION (Tables)
QUARTERLY INFORMATION (Tables) | 12 Months Ended |
Oct. 03, 2015 | |
QUARTERLY INFORMATION (UNAUDITED) [Abstract] | |
Quarterly information | The following is a summary of our unaudited quarterly results of operations for the quarters in our fiscal years 2015 and 2014. Quarter Ended Dec. 27, March 28, June 27, Oct. 3, Revenues $ 23,320,000 $ 25,894,000 $ 24,796,000 $ 25,111,000 Income from operations 1,322,000 2,357,000 1,947,000 1,775,000 Net income attributable to 707,000 1,124,000 842,000 788,000 Net income per share 0.38 0.60 0.45 0.43 Weighted average common stock outstanding basic and diluted 1,858,647 1,858,647 1,858,647 1,858,647 Quarter Ended Dec. 28, March 29, June 28, Sept. 27, Revenues $ 21,475,000 $ 23,771,000 $ 22,817,000 $ 21,739,000 Income from operations 1,216,000 2,076,000 1,972,000 1,250,000 Net income attributable to 538,000 907,000 857,000 463,000 Net income per share 0.29 0.49 0.46 0.25 Weighted average common 1,859,359 1,858,647 1,858,647 1,858,647 |
SUMMARY OF SIGNIFICANT ACCOUN34
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended | |
Oct. 03, 2015USD ($)item$ / sharesshares | Sep. 27, 2014USD ($)$ / sharesshares | |
Common stock, par value | $ / shares | $ 0.10 | $ 0.10 |
Common stock, shares authorized | shares | 5,000,000 | 5,000,000 |
Federally insured limits | $ 250,000 | |
Advertising costs | 343,000 | $ 461,000 |
Full risk exposure amount per occurrence | 50,000 | |
Full risk exposure amount per occurrence, limited partnerships | 10,000 | |
Full risk exposure amount per occurrence, insurance carrier coverage | 1,000,000 | |
Full risk exposure amount per occurrence, maximum aggregate from insurance carrier | 2,000,000 | |
Full risk exposure amount per occurrence, excess insurance carrier coverage | 6,000,000 | |
Uninsured amount in excess of per occurrence | $ 7,000,000 | |
Building and Building Improvements [Member] | ||
Property, Plant and Equipment, Useful Life | 40 years | |
Minimum | Vehicles [Member] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Minimum | Equipment [Member] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Maximum | Vehicles [Member] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Maximum | Equipment [Member] | ||
Property, Plant and Equipment, Useful Life | 7 years | |
Maximum | Leasehold Improvements [Member] | ||
Property, Plant and Equipment, Useful Life | 20 years | |
Franchised Units [Member] | ||
Number of Stores | item | 5 | |
Number of restaurants | item | 2 | |
Franchised Units [Member] | Combination Restaurants/Package Liquor Stores [Member] | ||
Number of Stores | item | 3 | |
Entity Operated Units [Member] | ||
Number of Stores | item | 25 | |
Franchised and Operated Units [Member] | ||
Number of Stores | item | 1 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) | 12 Months Ended | |
Oct. 03, 2015 | Sep. 27, 2014 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment - gross | $ 63,290,000 | $ 61,007,000 |
Less accumulated depreciation and amortization | 25,712,000 | 25,071,000 |
Property and equipment - net | 37,578,000 | 35,936,000 |
Depreciation and amortization expense | 2,545,000 | 2,459,000 |
Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment - gross | 11,073,000 | 11,435,000 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment - gross | 20,639,000 | 20,047,000 |
Land and Land Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment - gross | 16,742,000 | 15,190,000 |
Building and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment - gross | 13,653,000 | 13,343,000 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment - gross | $ 1,183,000 | $ 992,000 |
LEASEHOLD INTERESTS (Schedule o
LEASEHOLD INTERESTS (Schedule of Leasehold Interests) (Details) - USD ($) | Oct. 03, 2015 | Sep. 27, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
Leasehold interests | $ 781,000 | $ 909,000 |
Leasehold Interests [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Leasehold interests, at cost | 3,024,000 | 3,024,000 |
Less accumulated amortization | 2,243,000 | 2,115,000 |
Leasehold interests | $ 781,000 | $ 909,000 |
LEASEHOLD INTERESTS (Future Amo
LEASEHOLD INTERESTS (Future Amortization of Leasehold Interests) (Details) - USD ($) | Oct. 03, 2015 | Sep. 27, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
Leasehold interests | $ 781,000 | $ 909,000 |
Leasehold Interests [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
2,016 | 122,000 | |
2,017 | 122,000 | |
2,018 | 122,000 | |
2,019 | 122,000 | |
2,020 | 96,000 | |
Thereafter | 197,000 | |
Leasehold interests | $ 781,000 | $ 909,000 |
INVESTMENTS IN LIMITED PARTNE38
INVESTMENTS IN LIMITED PARTNERSHIPS (Narrative) (Details) - item | 12 Months Ended | |
Oct. 03, 2015 | Sep. 27, 2014 | |
Number of investments in limited partnerships | 9 | |
Return of capital, percentage of cash invested in limited partnership | 25.00% | |
Available cash in excess of cash invested, percentage paid management fee | 50.00% | |
Available cash in excess of cash invested, percentage paid investors | 50.00% | |
Annual management fee percentage of cash available to be distributed | 50.00% | |
Profit distribution percentage of cash available to be distributed to investors | 50.00% | |
Percentage of gross sales fee for use of service mark | 3.00% | |
Limited Partnerships | ||
Number of restaurants | 9 | |
Limited Partnerships - Returned All Cash Invested | ||
Number of restaurants | 5 | |
Surfside, Florida | ||
Annual management fee percentage of cash available to be distributed | 50.00% | |
Ownership percentage in LP | 46.00% | |
Kendall, Florida | ||
Annual management fee percentage of cash available to be distributed | 50.00% | |
Ownership percentage in LP | 41.00% | |
West Miami, Florida | ||
Annual management fee percentage of cash available to be distributed | 50.00% | |
Ownership percentage in LP | 27.00% | |
Wellington, Florida | ||
Annual management fee percentage of cash available to be distributed | 50.00% | |
Ownership percentage in LP | 28.00% | |
Pinecrest, Florida | ||
Annual management fee percentage of cash available to be distributed | 50.00% | |
Ownership percentage in LP | 45.00% | |
Pembroke Pines, Florida | ||
Percentage of intital investment returned | 62.00% | 51.00% |
Ownership percentage in LP | 23.00% | |
Davie, Florida | ||
Percentage of intital investment returned | 60.50% | 51.50% |
Ownership percentage in LP | 49.00% | |
Miami, Florida | ||
Percentage of intital investment returned | 42.00% | 20.00% |
Ownership percentage in LP | 5.00% | |
Affiliated Entities | Surfside, Florida | ||
Ownership percentage in LP | 33.30% | |
Affiliated Entities | Kendall, Florida | ||
Ownership percentage in LP | 28.30% | |
Affiliated Entities | West Miami, Florida | ||
Ownership percentage in LP | 32.70% | |
Affiliated Entities | Wellington, Florida | ||
Ownership percentage in LP | 22.40% | |
Affiliated Entities | Pinecrest, Florida | ||
Ownership percentage in LP | 20.20% | |
Affiliated Entities | Pembroke Pines, Florida | ||
Ownership percentage in LP | 23.80% | |
Affiliated Entities | Davie, Florida | ||
Ownership percentage in LP | 12.30% | |
Affiliated Entities | Miami, Florida | ||
Ownership percentage in LP | 26.80% | |
Fort Lauderdale, Florida | ||
Ownership percentage | 25.00% | |
Fort Lauderdale, Florida | Affiliated Entities | ||
Ownership percentage in LP | 56.90% |
INVESTMENTS IN LIMITED PARTNE39
INVESTMENTS IN LIMITED PARTNERSHIPS (Schedule of Financial Information) (Details) - Fort Lauderdale, Florida - USD ($) | 12 Months Ended | |
Oct. 03, 2015 | Sep. 27, 2014 | |
Financial Position: | ||
Current assets | $ 350,000 | $ 530,000 |
Non-current assets | 553,000 | 428,000 |
Current liabilities | 181,000 | 217,000 |
Operating Results: | ||
Revenues | 3,252,000 | 2,939,000 |
Gross profit | 2,135,000 | 1,945,000 |
Net income | $ 133,000 | $ 207,000 |
INVESTMENT IN REAL PROPERTY F40
INVESTMENT IN REAL PROPERTY FINANCED BY DEBT (Details) $ in Millions | 3 Months Ended |
Mar. 28, 2015USD ($) | |
Payments to Acquire Real Estate | $ 1.5 |
PURCHASE OF OPERATING ASSETS 41
PURCHASE OF OPERATING ASSETS FROM LIMITED PARTNERSHIP (Details) - Weston, Florida | 3 Months Ended |
Dec. 27, 2014USD ($) | |
Business Acquisition [Line Items] | |
Ownership percentage | 30.00% |
Purchase price | $ 351,000 |
Pro-rations | $ 100,000 |
Affiliated Entities | |
Business Acquisition [Line Items] | |
Ownership percentage in LP | 32.00% |
RECENT EXTENSIONS OF EXISTING42
RECENT EXTENSIONS OF EXISTING LEASES FOR EXISTING LOCATIONS (Details) | 12 Months Ended |
Oct. 03, 2015USD ($) | |
North Lauderdale, Florida [Member] | |
Operating Leased Assets [Line Items] | |
Lessee Leasing Arrangements, Operating Leases, Term of Contract | 5 years |
Land under Purchase Options, Not Recorded | $ 1,200,000 |
Hialeah, Florida Property [Member] | |
Operating Leased Assets [Line Items] | |
Lessee Leasing Arrangements, Operating Leases, Term of Contract | 5 years |
Lessee Leasing Arrangements, Operating Leases, Renewal Term | 5 years |
RE-FINANCING OF EXISTING DEBT (
RE-FINANCING OF EXISTING DEBT (Details) | 12 Months Ended |
Oct. 03, 2015USD ($) | |
Debt Instrument [Line Items] | |
Long-term Debt | $ 11,380,000 |
Financed Insurance Premiums [Member] | |
Debt Instrument [Line Items] | |
Debt face amount | 1,200,000 |
Monthly payment | $ 32,000 |
Payment frequency | Monthly |
Long-term Debt | $ 252,000 |
Financed Insurance Premiums [Member] | Financed Insurance Premium One [Member] | |
Debt Instrument [Line Items] | |
Aggregate coverage | 424,000 |
Debt face amount | $ 389,000 |
Interest rate | 2.99% |
Term of debt | 11 months |
Monthly payment | $ 36,000 |
Payment frequency | Monthly |
Financed Insurance Premiums [Member] | Financed Insurance Premium Two [Member] | |
Debt Instrument [Line Items] | |
Aggregate coverage | $ 450,000 |
Debt face amount | $ 413,000 |
Interest rate | 2.99% |
Term of debt | 11 months |
Monthly payment | $ 38,000 |
Payment frequency | Monthly |
Financed Insurance Premiums [Member] | Financed Insurance Premium Three [Member] | |
Debt Instrument [Line Items] | |
Aggregate coverage | $ 482,000 |
Debt face amount | $ 416,000 |
Interest rate | 2.95% |
Term of debt | 8 months |
Monthly payment | $ 52,000 |
Payment frequency | Monthly |
LIQUOR LICENSES (Details)
LIQUOR LICENSES (Details) - USD ($) | Oct. 03, 2015 | Sep. 27, 2014 |
LIQUOR LICENSES [Abstract] | ||
Liquor licenses | $ 630,000 | $ 630,000 |
INCOME TAXES (Components of the
INCOME TAXES (Components of the Provision for Income Taxes) (Details) - USD ($) | 12 Months Ended | |
Oct. 03, 2015 | Sep. 27, 2014 | |
Current: | ||
Federal | $ 1,270,000 | $ 1,008,000 |
State | 294,000 | 248,000 |
Current income tax | 1,564,000 | 1,256,000 |
Deferred: | ||
Federal | 81,000 | 63,000 |
State | 9,000 | 7,000 |
Deferred income tax | 90,000 | 70,000 |
Provision for Income Taxes | $ 1,654,000 | $ 1,326,000 |
INCOME TAXES (Reconciliation of
INCOME TAXES (Reconciliation of Income Tax Computed at the Statutory Federal Rate to Income Tax Expense) (Details) - USD ($) | 12 Months Ended | |
Oct. 03, 2015 | Sep. 27, 2014 | |
Reconciliation of Income Tax: | ||
Tax provision at the statutory rate | $ 2,344,000 | $ 2,013,000 |
Non controlling interests | (605,000) | (623,000) |
State income taxes, net of federal income tax | 212,000 | 170,000 |
FICA tip credit | (313,000) | (256,000) |
True up adjustment | (16,000) | (7,000) |
Other permanent items | 32,000 | 29,000 |
Provision for Income Taxes | $ 1,654,000 | $ 1,326,000 |
Statutory tax rate | 34.00% | 34.00% |
INCOME TAXES (Components of Def
INCOME TAXES (Components of Deferred Tax Assets) (Details) - USD ($) | Oct. 03, 2015 | Sep. 27, 2014 |
Current: | ||
Reversal of aged payables | $ 27,000 | $ 27,000 |
Capitalized inventory costs | 23,000 | 29,000 |
Accrued bonuses | 327,000 | 272,000 |
Accruals for potential uninsured claims | 25,000 | 89,000 |
Gift cards | 141,000 | 120,000 |
Limited partnership management fees | (168,000) | (94,000) |
Deferred tax asset | 375,000 | 443,000 |
Long-Term: | ||
Book/tax differences in property and equipment | 650,000 | 664,000 |
Limited partnership investments | 213,000 | 227,000 |
Accrued limited retirement | 40,000 | 34,000 |
Deferred tax asset noncurrent | $ 903,000 | $ 925,000 |
DEBT (Long Term Debt) (Details)
DEBT (Long Term Debt) (Details) | 12 Months Ended | ||
Oct. 03, 2015USD ($)item | Dec. 27, 2014USD ($) | Sep. 27, 2014USD ($) | |
Debt Instrument [Line Items] | |||
Long-term Debt | $ 11,380,000 | $ 13,331,000 | |
Current portion of long term debt | 1,307,000 | 1,897,000 | $ 1,897,000 |
Long-Term Debt, Net of Current Portion | 10,073,000 | 11,434,000 | $ 11,434,000 |
Other [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 242,000 | 302,000 | |
Mortgages [Member] | Mortgage payable to lender #1 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 3,656,000 | 3,881,000 | |
Variable interest rate, description | BBA Libor - 1 month + 2.25% interest rate | ||
Variable interest rate spread | 2.25% | ||
Interest rate at period end | 2.443% | ||
Term of debt | 20 years | ||
Payment frequency | Monthly | ||
Monthly payment | $ 23,700 | ||
Fixed-rate portion of debt | $ 3,750,000 | ||
Fixed portion of debt, interest rate | 4.51% | ||
Variable-rate portion of debt | $ 750,000 | ||
Variable-rate portion of debt, interest rate | 2.443% | ||
Maturity date | Dec. 1, 2019 | ||
Mortgages [Member] | Mortgage payable to unrelated third party #1 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 1,826,000 | 1,875,000 | |
Term of debt | 20 years | ||
Payment frequency | Monthly | ||
Monthly payment | $ 15,700 | ||
Balloon payment | $ 1,331,000 | ||
Fixed portion of debt, interest rate | 7.50% | ||
Maturity date | Dec. 31, 2022 | ||
Mortgages [Member] | Mortgage payable to lender #2 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 1,279,000 | 1,328,000 | |
Variable interest rate, description | BBA Libor - 1 month + 2.25% interest rate | ||
Variable interest rate spread | 2.25% | ||
Interest rate at period end | 2.443% | ||
Term of debt | 20 years | ||
Payment frequency | Monthly | ||
Monthly payment | $ 8,775 | ||
Balloon payment | $ 858,000 | ||
Fixed interest rate | 4.35% | ||
Maturity date | Jan. 31, 2023 | ||
Mortgages [Member] | Mortgage payable to related third party #1 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 676,000 | 709,000 | |
Interest rate | 5.00% | ||
Term of debt | 15 years | ||
Payment frequency | Monthly | ||
Monthly payment | $ 5,700 | ||
Balloon payment | $ 457,000 | ||
Maturity date | Mar. 31, 2021 | ||
Mortgages [Member] | Mortgage payable to lender #3 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 785,000 | 818,000 | |
Variable interest rate, description | BBA LIBOR + 2.25% interest rate | ||
Variable interest rate spread | 2.25% | ||
Interest rate at period end | 2.443% | ||
Term of debt | 20 years | ||
Payment frequency | Monthly | ||
Monthly payment | $ 4,600 | ||
Balloon payment | $ 720,000 | ||
Fixed interest rate | 5.11% | ||
Maturity date | Aug. 31, 2017 | ||
Mortgages [Member] | Mortgage payable to related third party #2 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 583,000 | 612,000 | |
Interest rate | 5.00% | ||
Term of debt | 15 years | ||
Payment frequency | Monthly | ||
Monthly payment | $ 4,900 | ||
Balloon payment | $ 391,000 | ||
Maturity date | May 31, 2021 | ||
Mortgages [Member] | Mortgage payable to related third party #3 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 706,000 | 742,000 | |
Interest rate | 5.00% | ||
Term of debt | 15 years | ||
Payment frequency | Monthly | ||
Monthly payment | $ 6,000 | ||
Balloon payment | $ 476,000 | ||
Maturity date | Apr. 30, 2021 | ||
Mortgages [Member] | Mortgage payable to unrelated third party #2 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 869,000 | 890,000 | |
Interest rate | 7.50% | ||
Term of debt | 20 years | ||
Payment frequency | Monthly | ||
Monthly payment | $ 7,300 | ||
Maturity date | Mar. 31, 2034 | ||
Term Loan [Member] | Term loan payable to lender #1 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 399,000 | 862,000 | |
Variable interest rate, description | BBA LIBOR - 1 month + 3.25% interest rate | ||
Variable interest rate spread | 3.25% | ||
Interest rate at period end | 3.443% | ||
Payment frequency | Monthly | ||
Monthly payment | $ 41,000 | ||
Number of payments | item | 42 | ||
Fixed interest rate | 4.00% | ||
Maturity date | Jul. 24, 2016 | ||
Term Loan [Member] | Term loan payable to lender #2 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 107,000 | 533,000 | |
Variable interest rate, description | BBA LIBOR - 1 month + 2.25% interest rate | ||
Variable interest rate spread | 2.25% | ||
Interest rate at period end | 2.443% | ||
Term of debt | 45 months | ||
Payment frequency | Monthly | ||
Monthly payment | $ 38,000 | ||
Term for interest only payments | 3 months | ||
Fixed interest rate | 3.43% | ||
Maturity date | Dec. 1, 2015 | ||
Financed Insurance Premiums [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 252,000 | $ 779,000 | |
Interest rate, minimum | 2.95% | ||
Interest rate, maximum | 2.99% | ||
Payment frequency | Monthly | ||
Monthly payment | $ 32,000 | ||
Maturity date | Jun. 1, 2016 |
DEBT (Long Term Debt Maturities
DEBT (Long Term Debt Maturities) (Details) | Oct. 03, 2015USD ($) |
Debt maturing in fiscal year: | |
2,016 | $ 1,307,000 |
2,017 | 1,280,000 |
2,018 | 544,000 |
2,019 | 536,000 |
2,020 | 3,040,000 |
Thereafter | 4,673,000 |
Total | $ 11,380,000 |
COMMITMENTS, CONTINGENCIES AN50
COMMITMENTS, CONTINGENCIES AND OTHER MATTERS (Narrative) (Details) | 3 Months Ended | 12 Months Ended | |||
Dec. 27, 2014USD ($)item | Dec. 31, 2005USD ($) | Oct. 03, 2015USD ($)ft² | Sep. 27, 2014USD ($) | Oct. 15, 2015USD ($) | |
Owner's fee | $ 163,000 | $ 138,000 | |||
Legal Matters: | |||||
Number of claims settled | item | 7 | ||||
Settlement amount | $ (193,000) | ||||
Leases: | |||||
Lease rental sales override, percentage of annual sales | 7.30% | ||||
Building, square footage | ft² | 4,120 | ||||
Sales tax, percentage | 6.00% | ||||
Sublease rental income | $ 54,000 | 49,000 | |||
Total future minimum sublease payments | 276,000 | ||||
Franchise Program: | |||||
Fiscal agent, annual fee amount | $ 25,000 | ||||
Royalties, gross sales | 3.00% | ||||
Royalties, gross package liquor sales | 1.00% | ||||
Employment Agreement/Bonuses: | |||||
Performance bonuses | $ 1,519,000 | 1,221,000 | |||
Current Rib Supplier [Member] | |||||
Purchase Commitments: | |||||
Purchase commitment, rib supplier | $ 5,076,000 | ||||
Atlanta, Georgia | |||||
Franchise Program: | |||||
Royalties, gross package liquor sales | 10.00% | ||||
Deerfield Beach, Florida | |||||
Management fee revenue | $ 500,000 | 385,000 | |||
Deerfield Beach, Florida | Service Agreements [Member] | |||||
Payments to acquire management rights | $ 500,000 | ||||
Remaining balance of management agreement | $ 13,000 | 62,000 | |||
Amortization period of management agreement | 10 years | ||||
Chief Executive Officer | |||||
Employment Agreement/Bonuses: | |||||
Percentage of corporate pre-tax income in paid to management | 14.75% | ||||
COO and CFO | |||||
Employment Agreement/Bonuses: | |||||
Percentage of corporate pre-tax income in paid to management | 5.00% | ||||
Amount of income at which bonuses begin to accrue | $ 650,000 | ||||
Management | |||||
Employment Agreement/Bonuses: | |||||
Percentage of corporate pre-tax income in paid to management | 5.25% | ||||
Limited Partnership | |||||
Employment Agreement/Bonuses: | |||||
Performance bonuses | $ 861,000 | $ 715,000 | |||
Percentage of corporate pre-tax income in paid to management | 5.00% | ||||
Amount of income at which bonuses begin to accrue | $ 1,875,000 | ||||
Minimum | |||||
Leases: | |||||
Lease rental sales override, percentage of annual sales | 3.00% | ||||
Lease rental sales override for limited partnership, percentage of annual sales | 2.00% | ||||
Sales tax, percentage | 6.00% | ||||
Maximum | |||||
Leases: | |||||
Lease rental sales override, percentage of annual sales | 4.00% | ||||
Lease rental sales override for limited partnership, percentage of annual sales | 5.50% | ||||
Sales tax, percentage | 7.00% |
COMMITMENTS, CONTINGENCIES AN51
COMMITMENTS, CONTINGENCIES AND OTHER MATTERS (Schedule of Future Minimum Rental Payments) (Details) | Oct. 03, 2015USD ($) |
COMMITMENTS, CONTINGENCIES AND OTHER MATTERS [Abstract] | |
2,016 | $ 2,841,000 |
2,017 | 2,674,000 |
2,018 | 2,194,000 |
2,019 | 2,099,000 |
2,020 | 1,508,000 |
Thereafter | 1,449,000 |
Total | $ 12,765,000 |
COMMITMENTS, CONTINGENCIES AN52
COMMITMENTS, CONTINGENCIES AND OTHER MATTERS (Schedule of Rent Expense) (Details) - USD ($) | 12 Months Ended | |
Oct. 03, 2015 | Sep. 27, 2014 | |
COMMITMENTS, CONTINGENCIES AND OTHER MATTERS [Abstract] | ||
Minimum Base Rent | $ 2,636,000 | $ 2,500,000 |
Contingent Percentage Rent | 750,000 | 605,000 |
Rent expense | $ 3,386,000 | $ 3,105,000 |
FAIR VALUE MEASUREMENTS OF FI53
FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS (Details) | 12 Months Ended |
Oct. 03, 2015USD ($)item | |
Derivative [Line Items] | |
Number of variable rate debt instruments | item | 5 |
Derivative, Number of Instruments Held | item | 5 |
Mortgage Loan Swap | |
Derivative [Line Items] | |
Fixed interest rate | 5.11% |
Derivative, Notional Amount | $ 935,000 |
Variable interest rate, description | LIBOR, Daily Floating rate plus 2.25% |
Variable interest rate, floating | 2.25% |
Term of swap | 7 years |
$4.5M Mortgage Loan Swap | |
Derivative [Line Items] | |
Fixed interest rate | 4.51% |
Derivative, Notional Amount | $ 3,750,000 |
Variable interest rate, description | LIBOR - 1 Month, plus 2.25% |
Variable interest rate, floating | 2.25% |
Term of swap | 8 years |
$1.6M Term Loan Swap | |
Derivative [Line Items] | |
Fixed interest rate | 3.43% |
Derivative, Notional Amount | $ 1,600,000 |
Variable interest rate, description | LIBOR - 1 Month, plus 2.25% |
Variable interest rate, floating | 2.25% |
Term of swap | 4 years |
$1.405M Term Loan Swap | |
Derivative [Line Items] | |
Fixed interest rate | 4.35% |
Derivative, Notional Amount | $ 1,405,000 |
Variable interest rate, description | LIBOR - 1 Month, plus 2.25% |
Variable interest rate, floating | 2.25% |
Term of swap | 20 years |
$1.595M Term Loan Swap | |
Derivative [Line Items] | |
Fixed interest rate | 4.00% |
Derivative, Notional Amount | $ 1,595,000 |
Variable interest rate, description | LIBOR - 1 Month, plus 3.25% |
Variable interest rate, floating | 3.25% |
Term of swap | 42 months |
COMMON STOCK (Details)
COMMON STOCK (Details) - USD ($) | 12 Months Ended | |
Oct. 03, 2015 | Sep. 27, 2014 | |
Purchase of treasury stock | $ 10,000 | |
Number of remaining shares authorized | 65,414 | |
Maximum share price | $ 15 | |
Joseph G. Flanigan Charitable Trust | ||
Purchase of treasury stock, shares | 800 | |
Purchase of treasury stock | $ 10,000 |
BUSINESS SEGMENTS (Details)
BUSINESS SEGMENTS (Details) | 3 Months Ended | 12 Months Ended | ||||||||
Oct. 03, 2015USD ($) | Jun. 27, 2015USD ($) | Mar. 28, 2015USD ($) | Dec. 27, 2014USD ($) | Sep. 27, 2014USD ($) | Jun. 28, 2014USD ($) | Mar. 29, 2014USD ($) | Dec. 28, 2013USD ($) | Oct. 03, 2015USD ($)item | Sep. 27, 2014USD ($) | |
Segment Reporting Information [Line Items] | ||||||||||
Number of Reportable Segments | item | 2 | |||||||||
Operating Revenues: | ||||||||||
Operating revenues | $ 25,111,000 | $ 24,796,000 | $ 25,894,000 | $ 23,320,000 | $ 21,739,000 | $ 22,817,000 | $ 23,771,000 | $ 21,475,000 | $ 99,121,000 | $ 89,802,000 |
Income from Operations | 1,775,000 | 1,947,000 | 2,357,000 | 1,322,000 | 1,250,000 | 1,972,000 | 2,076,000 | 1,216,000 | 7,401,000 | 6,514,000 |
Interest expense | (610,000) | (736,000) | ||||||||
Interest and other income | 102,000 | 144,000 | ||||||||
Income Before Provision for Income Taxes | 6,893,000 | 5,922,000 | ||||||||
Provision for Income Taxes | (1,654,000) | (1,326,000) | ||||||||
Net Income | 5,239,000 | 4,596,000 | ||||||||
Net income Attributable to Noncontrolling Interests | (1,778,000) | (1,831,000) | ||||||||
Net Income Attributable to Flanigan's Enterprises, Inc. Stockholders | 788,000 | $ 842,000 | $ 1,124,000 | $ 707,000 | 463,000 | $ 857,000 | $ 907,000 | $ 538,000 | 3,461,000 | 2,765,000 |
Identifiable Assets: | ||||||||||
Assets | 54,622,000 | 53,103,000 | 54,622,000 | 53,103,000 | ||||||
Capital Expenditures: | ||||||||||
Capital expenditures | 4,128,000 | 3,769,000 | ||||||||
Depreciation and Amortization: | ||||||||||
Depreciation and amortization | 2,673,000 | 2,593,000 | ||||||||
Operating Segments [Member] | ||||||||||
Operating Revenues: | ||||||||||
Income from Operations | 9,639,000 | 8,473,000 | ||||||||
Identifiable Assets: | ||||||||||
Assets | 33,871,000 | 33,423,000 | 33,871,000 | 33,423,000 | ||||||
Capital Expenditures: | ||||||||||
Capital expenditures | 3,699,000 | 1,926,000 | ||||||||
Depreciation and Amortization: | ||||||||||
Depreciation and amortization | 2,180,000 | 2,174,000 | ||||||||
Corporate, Non-Segment [Member] | ||||||||||
Operating Revenues: | ||||||||||
Operating revenues | 2,453,000 | 2,151,000 | ||||||||
Income from Operations | (2,238,000) | (1,959,000) | ||||||||
Identifiable Assets: | ||||||||||
Assets | 20,751,000 | 19,680,000 | 20,751,000 | 19,680,000 | ||||||
Capital Expenditures: | ||||||||||
Capital expenditures | 429,000 | 1,843,000 | ||||||||
Depreciation and Amortization: | ||||||||||
Depreciation and amortization | 493,000 | 419,000 | ||||||||
Restaurants | Operating Segments [Member] | ||||||||||
Operating Revenues: | ||||||||||
Operating revenues | 81,502,000 | 73,845,000 | ||||||||
Income from Operations | 8,624,000 | 7,523,000 | ||||||||
Identifiable Assets: | ||||||||||
Assets | 29,478,000 | 28,465,000 | 29,478,000 | 28,465,000 | ||||||
Capital Expenditures: | ||||||||||
Capital expenditures | 3,453,000 | 1,548,000 | ||||||||
Depreciation and Amortization: | ||||||||||
Depreciation and amortization | 1,975,000 | 1,971,000 | ||||||||
Package stores | Operating Segments [Member] | ||||||||||
Operating Revenues: | ||||||||||
Operating revenues | 15,166,000 | 13,806,000 | ||||||||
Income from Operations | 1,015,000 | 950,000 | ||||||||
Identifiable Assets: | ||||||||||
Assets | $ 4,393,000 | $ 4,958,000 | 4,393,000 | 4,958,000 | ||||||
Capital Expenditures: | ||||||||||
Capital expenditures | 246,000 | 378,000 | ||||||||
Depreciation and Amortization: | ||||||||||
Depreciation and amortization | $ 205,000 | $ 203,000 |
QUARTERLY INFORMATION (Details)
QUARTERLY INFORMATION (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Oct. 03, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 27, 2014 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Oct. 03, 2015 | Sep. 27, 2014 | |
QUARTERLY INFORMATION (UNAUDITED) [Abstract] | ||||||||||
Revenues | $ 25,111,000 | $ 24,796,000 | $ 25,894,000 | $ 23,320,000 | $ 21,739,000 | $ 22,817,000 | $ 23,771,000 | $ 21,475,000 | $ 99,121,000 | $ 89,802,000 |
Income from operations | 1,775,000 | 1,947,000 | 2,357,000 | 1,322,000 | 1,250,000 | 1,972,000 | 2,076,000 | 1,216,000 | 7,401,000 | 6,514,000 |
Net income attributable to stockholders | $ 788,000 | $ 842,000 | $ 1,124,000 | $ 707,000 | $ 463,000 | $ 857,000 | $ 907,000 | $ 538,000 | $ 3,461,000 | $ 2,765,000 |
Net income per share - Basic and Diluted | $ 0.43 | $ 0.45 | $ 0.60 | $ 0.38 | $ 0.25 | $ 0.46 | $ 0.49 | $ 0.29 | $ 1.86 | $ 1.49 |
Weighted average common stock outstanding - basic and diluted | 1,858,647 | 1,858,647 | 1,858,647 | 1,858,647 | 1,858,647 | 1,858,647 | 1,858,647 | 1,859,359 | 1,858,647 | 1,858,825 |
401(k) PLAN (Details)
401(k) PLAN (Details) - USD ($) | 12 Months Ended | |
Oct. 03, 2015 | Sep. 27, 2014 | |
401(k) PLAN [Abstract] | ||
Discretionary contributions to 401(k) | $ 35,000 | $ 23,000 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) | Dec. 23, 2015USD ($)ft²item | Oct. 03, 2015ft² |
Subsequent Event [Line Items] | ||
Area of property | 4,120 | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Number of parcels acquired | item | 2 | |
Property purchased | $ | $ 922,500 | |
Area of property | 6,000 |