Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Oct. 01, 2016 | Dec. 22, 2016 | Apr. 02, 2016 | |
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. 1, 2016 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --10-01 | ||
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 | $ 15,628,000 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,016 | ||
Trading Symbol | BDL |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Oct. 01, 2016 | Oct. 03, 2015 |
Current Assets: | ||
Cash and cash equivalents | $ 10,174,000 | $ 9,267,000 |
Prepaid income taxes | 180,000 | |
Due from franchisees | 62,000 | |
Other receivables | 627,000 | 571,000 |
Inventories | 2,633,000 | 2,410,000 |
Prepaid expenses | 1,274,000 | 1,094,000 |
Deferred tax assets | 381,000 | 375,000 |
Total current assets | 15,331,000 | 13,717,000 |
Property and Equipment, Net | 38,153,000 | 37,578,000 |
Investment in Limited Partnership | 212,000 | 225,000 |
Other Assets: | ||
Liquor licenses | 630,000 | 630,000 |
Deferred tax assets | 862,000 | 903,000 |
Leasehold interests, net | 660,000 | 781,000 |
Other | 716,000 | 788,000 |
Total other assets | 2,868,000 | 3,102,000 |
Total assets | 56,564,000 | 54,622,000 |
Current Liabilities: | ||
Accounts payable and accrued expenses | 7,790,000 | 7,292,000 |
Income taxes payable | 143,000 | |
Due to franchisees | 2,098,000 | 1,893,000 |
Current portion of long-term debt | 1,466,000 | 1,307,000 |
Deferred rent | 102,000 | 14,000 |
Total current liabilities | 11,456,000 | 10,649,000 |
Long-Term Debt, Net of Current Portion | 8,789,000 | 10,073,000 |
Deferred Rent, Net of Current Portion | 101,000 | |
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 2016 and 2015 | 420,000 | 420,000 |
Capital in excess of par value | 6,240,000 | 6,240,000 |
Retained earnings | 28,750,000 | 26,054,000 |
Treasury stock, at cost, 2,338,995 shares for the years ended 2016 and 2015 | (6,077,000) | (6,077,000) |
Total Flanigan's Enterprises, Inc. stockholders' equity | 29,333,000 | 26,637,000 |
Noncontrolling interests | 6,986,000 | 7,162,000 |
Total equity | 36,319,000 | 33,799,000 |
Total liabilities and equity | $ 56,564,000 | $ 54,622,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Oct. 01, 2016 | Oct. 03, 2015 |
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 |
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. 01, 2016 | Oct. 03, 2015 | |
Revenues: | ||
Restaurant food sales | $ 64,954,000 | $ 62,347,000 |
Restaurant beverage sales | 20,492,000 | 19,155,000 |
Package goods sales | 15,661,000 | 15,166,000 |
Franchise-related revenues | 1,584,000 | 1,537,000 |
Owner's fee | 150,000 | 163,000 |
Other operating income | 225,000 | 212,000 |
Rental income | 552,000 | 541,000 |
Total | 103,618,000 | 99,121,000 |
Cost of merchandise sold: | ||
Restaurants and lounges | 29,770,000 | 29,022,000 |
Package goods | 11,207,000 | 10,760,000 |
Payroll and related costs | 32,102,000 | 30,173,000 |
Occupancy costs | 5,413,000 | 4,961,000 |
Selling, general and administrative expenses | 18,325,000 | 16,804,000 |
Total | 96,817,000 | 91,720,000 |
Income from Operations | 6,801,000 | 7,401,000 |
Other Income (Expense): | ||
Interest expense | (557,000) | (610,000) |
Interest and other income | 92,000 | 102,000 |
Total other income (expense) | (465,000) | (508,000) |
Income Before Provision for Income Taxes | 6,336,000 | 6,893,000 |
Provision for Income Taxes | (1,367,000) | (1,654,000) |
Net Income | 4,969,000 | 5,239,000 |
Less: Net Income Attributable to Noncontrolling Interests | (1,929,000) | (1,778,000) |
Net Income Attributable to Flanigan's Enterprises, Inc. Stockholders | $ 3,040,000 | $ 3,461,000 |
Net Income Per Common Share: | ||
Basic and Diluted | $ 1.64 | $ 1.86 |
Weighted Average Shares and Equivalent Shares Outstanding: | ||
Basic and Diluted | 1,858,647 | 1,858,647 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) | Common Stock [Member] | Capital in Excess of Par Value [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Noncontrolling Interests [Member] | Total |
Balance, beginning at Sep. 27, 2014 | $ 420,000 | $ 6,240,000 | $ 22,872,000 | $ (6,077,000) | $ 7,610,000 | $ 31,065,000 |
Balance, shares, beginning 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 | ||||
Net income | 3,040,000 | 1,929,000 | 4,969,000 | |||
Distributions to noncontrolling interests | (2,095,000) | (2,095,000) | ||||
Dividends paid | (344,000) | (344,000) | ||||
Purchase of noncontrolling interests | (10,000) | (10,000) | ||||
Balance, ending at Oct. 01, 2016 | $ 420,000 | $ 6,240,000 | $ 28,750,000 | $ (6,077,000) | $ 6,986,000 | $ 36,319,000 |
Balance, shares, ending at Oct. 01, 2016 | 4,197,642 | 2,338,995 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Oct. 01, 2016 | Oct. 03, 2015 | |
Cash Flows from Operating Activities: | ||
Net income | $ 4,969,000 | $ 5,239,000 |
Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities: | ||
Depreciation and amortization | 2,564,000 | 2,545,000 |
Amortization of leasehold interests | 121,000 | 128,000 |
Gain/loss on sale/abandonment of property and equipment | 285,000 | 28,000 |
Deferred income taxes | 35,000 | 90,000 |
Deferred rent | (13,000) | (15,000) |
Income from unconsolidated limited partnership | (17,000) | (33,000) |
(Increase) decrease in: | ||
Prepaid income taxes | (180,000) | 142,000 |
Due from franchisees | (62,000) | |
Other receivables | (56,000) | (49,000) |
Inventories | (223,000) | 544,000 |
Prepaid expenses | 734,000 | 1,341,000 |
Other assets | 50,000 | 427,000 |
Increase (decrease) in: | ||
Accounts payable and accrued expenses | 498,000 | 609,000 |
Income taxes payable | (143,000) | 143,000 |
Due to franchisees | 205,000 | 1,000 |
Net cash and cash equivalents provided by operating activities | 8,767,000 | 11,140,000 |
Cash Flows from Investing Activities: | ||
Purchase of property and equipment | (3,074,000) | (3,962,000) |
Deposit on purchase of fixed assets | (328,000) | (356,000) |
Distributions from unconsolidated limited partnership | 30,000 | 40,000 |
Net cash and cash equivalents used in investing activities | (3,372,000) | (4,278,000) |
Cash Flows from Financing Activities: | ||
Payments of long-term debt | (2,039,000) | (3,189,000) |
Dividends paid | (344,000) | (279,000) |
Distributions to noncontrolling interests | (2,095,000) | (2,226,000) |
Purchase of noncontrolling interests | (10,000) | |
Net cash and cash equivalents used in financing activities | (4,488,000) | (5,694,000) |
Net Increase in Cash and Cash Equivalents | 907,000 | 1,168,000 |
Cash and Cash Equivalents, Beginning | 9,267,000 | 8,099,000 |
Cash and Cash Equivalents, Ending | 10,174,000 | 9,267,000 |
Supplemental Disclosure of Cash Flow Information: | ||
Interest | 559,000 | 610,000 |
Income taxes | 1,656,000 | 1,274,000 |
Supplemental Disclosure for Non-Cash Investing and Financing Activities: | ||
Financing of insurance contracts | 914,000 | 1,201,000 |
Purchase deposits transferred to property and equipment | 350,000 | 131,000 |
Purchase of vehicles in exchange for debt | $ 35,000 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Oct. 01, 2016 | |
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 October 1, 2016, we (i) operated 25 units, (excluding the adult entertainment club referenced in (ii) below), consisting of restaurants, package liquor stores and combination restaurants/package liquor stores that we either own or have operational control over and partial ownership in; (ii) own but do not operate one adult entertainment club; and (iii) franchise an additional five units, consisting of two restaurants, (one of which we operate) and three combination restaurants/package liquor stores. With the exception of one restaurant we operate under the name “The Whale’s Rib”, and in which we do not have an ownership interest, all of the restaurants operate under our service mark “Flanigan’s Seafood Bar and Grill” and all of the package liquor stores operate under our service mark “Big Daddy’s Liquors”. The Company’s Articles of Incorporation, as amended, authorize us to issue and have outstanding at any one time 5,000,000 shares of common stock at a par value of $0.10 per share. We operate under a 52-53 week year ending the Saturday closest to September 30. Our fiscal year 2016 is comprised of a 52-week period and our fiscal year 2015 is comprised of a 53-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. Noncontrolling interests in consolidated subsidiaries are included in the consolidated balance sheets as a separate component of equity. We report consolidated net income inclusive of both the Company’s and the noncontrolling interests’ share, as well as amounts of consolidated net income (loss) attributable to each of the Company and the noncontrolling interests. 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 to five years for vehicles, and three to seven years for furniture and equipment. Leasehold improvements are currently being amortized over the shorter of the life of the lease or the life of the asset up to a maximum of 20 years. Our building and building improvements of our corporate offices in Fort Lauderdale, Florida; our building and building improvements of our construction office/warehouse in Fort Lauderdale, Florida; our combination restaurant and package liquor stores in Hallandale, Florida, Hollywood, Florida and North Miami, Florida; our restaurant in Fort Lauderdale, Florida; and our shopping center in Miami, Florida and property in Fort Lauderdale, Florida, all of which we own, are being depreciated over forty years. 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 financial institutions which balances may, from time to time, exceed the federally insured limits, which are $250,000 for interest and non-interest bearing accounts. We have not experienced any losses in such accounts. Major Suppliers Throughout our fiscal years 2016 and 2015, 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 periods in which they are earned. We believe that several other alternative vendors are available, if necessary. Throughout our fiscal years 2016 and 2015, we purchased the majority of our alcoholic beverages from three local distributors. Each distributor has exclusive rights from the manufacturers to sell specific brands in given areas, so unless the exclusive distribution rights are transferred to another vendor, there are no alternate distributors available. 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 opening, rent and promotional costs. We expense pre-opening costs as incurred. During our fiscal years 2016 and 2015, we reported no losses. Advertising Costs Our advertising costs are expensed as incurred. Advertising costs incurred during our fiscal years ended October 1, 2016 and October 3, 2015 were approximately $494,000 and $343,000 respectively. 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 of exposure per occurrence, while the limited partnerships assume the full risk of the first $10,000 of exposure per occurrence. Our insurance carrier is responsible for $1,000,000 coverage per occurrence above our self-insured deductible, up to a maximum aggregate of $2,000,000 per year. During our fiscal years ended October 1, 2016 and October 3, 2015, we were able to purchase excess liability insurance, whereby our excess insurance carrier is responsible for $6,000,000 coverage above our primary general liability insurance coverage. With the exception of one (1) limited partnership which has higher general liability insurance coverage to comply with the terms of its lease for the business premises, we are un-insured against liability claims in excess of $7,000,000 per occurrence and in the aggregate. 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 or $10,000, as applicable, self-insured retention. 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 10). 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 follow the provisions regarding Accounting for Uncertainty in Income Taxes, 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 There were no recently adopted accounting pronouncements during our fiscal year 2016 that we believe will have a material impact on our consolidated financial statements. Issued In August 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-15 “Classification of Certain Cash Receipts and Cash Payments”. This ASU addresses how certain cash receipts and cash payments are presented and classified in the statement of cash flows under Topic 230, “Statement of Cash Flows”, and other Topics. ASU 2016-15 is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2017. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which supersedes all existing guidance on accounting for leases in ASC Topic 840. ASU 2016-02 is intended to provide enhanced transparency and comparability by requiring lessees to record right-of-use assets and corresponding lease liabilities on the balance sheet. ASU 2016-02 will continue to classify leases as either finance or operating, with classification affecting the pattern of expense recognition in the statement of income. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. ASU 2016-02 requires a modified retrospective approach for all leases existing at, or entered into after the date of initial adoption, with an option to elect to use certain transaction relief. We are currently assessing the adoption date and the potential impact of adopting ASU 2016-02 on our financial statements and related disclosures. In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes In April 2015, the FASB issued ASU 2015-03, Interest—Imputation 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 In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, “Revenue from Contracts with Customers,” (ASU 2014-09), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. generally accepted accounting principles when it becomes effective. The new standard was originally effective for interim and annual periods in fiscal years beginning after December 15, 2016. In July 2015, the FASB affirmed its proposal for a one year deferral of the effective date. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Oct. 01, 2016 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE 2. PROPERTY AND EQUIPMENT 2016 2015 Furniture and equipment $ 11,211,000 $ 11,073,000 Leasehold improvements 21,428,000 20,639,000 Land and land improvements 17,049,000 16,742,000 Building and improvements 14,520,000 13,653,000 Vehicles 1,230,000 1,183,000 65,438,000 63,290,000 Less accumulated depreciation and amortization 27,285,000 25,712,000 $ 38,153,000 $ 37,578,000 Depreciation and amortization expense for the fiscal years ended October 1, 2016 and October 3, 2015 was approximately $2,564,000 and $2,545,000, respectively. |
LEASEHOLD INTERESTS
LEASEHOLD INTERESTS | 12 Months Ended |
Oct. 01, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
LEASEHOLD INTERESTS | NOTE 3. LEASEHOLD INTERESTS 2016 2015 Leasehold interests, at cost $ 3,024,000 $ 3,024,000 Less accumulated amortization 2,364,000 2,243,000 $ 660,000 $ 781,000 Future leasehold amortization as of October 1, 2016 is as follows: 2017 $ 122,000 2018 122,000 2019 122,000 2020 96,000 2021 82,000 Thereafter 116,000 Total $ 660,000 |
INVESTMENTS IN LIMITED PARTNERS
INVESTMENTS IN LIMITED PARTNERSHIPS | 12 Months Ended |
Oct. 01, 2016 | |
Equity Method Investments and Joint Ventures [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 limited partnerships which own and operate nine South Florida based restaurants under our service mark “Flanigan’s Seafood Bar and Grill”. In addition to being a 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% of the cash invested in the limited partnership, with no management fee paid to us. Any available cash in excess of the 25% of the cash invested in the limited partnership distributed to the investors annually, is paid one-half (½) to us as a management fee and one-half (1/2) to the investors (including us) prorata based upon the investors’ investment, as a return of capital. Once all of the investors (including us) have received, in full, amounts equal to their cash invested, an annual management fee becomes payable to us equal to one-half (½) of cash available to be distributed, with the other one half (½) of available cash distributed to the investors (including us) as a profit distribution, pro-rata based upon the investors’ investment. As of October 1, 2016, limited partnerships owning five (5) restaurants, (Surfside, Florida, Kendall, Florida. West Miami, Florida, Pinecrest, Florida and Wellington, Florida locations), have returned all cash invested and we receive an annual management fee equal to one-half (½) of the cash available for distribution by the limited partnership. In addition to our receipt of Surfside, Florida We are the sole general partner and a 46% limited partner in this limited partnership which has owned and operated a restaurant in Surfside, Florida under our “Flanigan’s Seafood Bar and Grill” service mark since March 6, 1998. 33.3% of the remaining limited partnership interest is owned by persons who are either our officers, directors or their family members. This limited partnership has returned to its investors all of their initial cash invested and we receive an annual management fee equal to one-half (½) of the cash available for distribution by the limited partnership. This entity is consolidated in the accompanying financial statements. Kendall, Florida We are the sole general partner and a 41% limited partner in this limited partnership which has owned and operated a restaurant in Kendall, Florida under our “Flanigan’s Seafood Bar and Grill” service mark since April 4, 2000. 28.3% of the remaining limited partnership interest is owned by persons who are either our officers, directors or their family members. This limited partnership has returned to its investors all of their initial cash invested and we receive an annual management fee equal to one-half (½) of the cash available for distribution by the limited partnership. This entity is consolidated in the accompanying financial statements. West Miami, Florida We are the sole general partner and a 27% limited partner in this limited partnership which has owned and operated a restaurant in West Miami, Florida under our “Flanigan’s Seafood Bar and Grill” service mark since October 11, 2001. 32.7% of the remaining limited partnership interest is owned by persons who are either our officers, directors or their family members. This limited partnership has returned to its investors all of their initial cash invested and we receive an annual management fee equal to one-half (½) of the cash available for distribution by the limited partnership. This entity is consolidated in the accompanying financial statements. Wellington, Florida We are the sole general partner and a 28% limited partner in this limited partnership which has owned and operated a restaurant in Wellington, Florida under our “Flanigan’s Seafood Bar and Grill” service mark since May 27, 2005. 22.4% of the remaining limited partnership interest is owned by persons who are either our officers, directors or their family members. This limited partnership has returned to its investors all of their initial cash invested and we receive an annual management fee equal to one-half (½) of the cash available for distribution by the limited partnership. This entity is consolidated in the accompanying financial statements. Pinecrest, Florida We are the sole general partner and 45% limited partner in this limited partnership which has owned and operated a restaurant in Pinecrest, Florida under our “Flanigan’s Seafood Bar and Grill” service mark since August 14, 2006. 20.2% of the remaining limited partnership interest is owned by persons who are either our officers, directors or their family members. This limited partnership has returned to its investors all of their initial cash invested and we receive an annual management fee equal to one-half (1/2) of the cash available for distribution by this limited partnership. This entity is consolidated in the accompanying financial statements. Pembroke Pines, Florida We are the sole general partner and a 23% limited partner in this limited partnership which has owned and operated a restaurant in Pembroke Pines, Florida under our “Flanigan’s Seafood Bar and Grill” service mark since October 29, 2007. 23.8% of the remaining limited partnership interest is owned by persons who are either our officers, directors or their family members. As of the end of our fiscal year 2016, this limited partnership has returned to its investors approximately 75.0% of their initial cash invested, increased from approximately 62.0% as of the end of our fiscal year 2015. This entity is consolidated in the accompanying financial statements. Davie, Florida We are the sole general partner and a 49% limited partner in this limited partnership which has owned and operated a restaurant in Davie, Florida under our “Flanigan’s Seafood Bar and Grill” service mark since July 28, 2008. 12.3% of the remaining limited partnership interest is owned by persons who are either our officers, directors or their family members. As of the end of our fiscal year 2016, this limited partnership has returned to its investors approximately 70.5% of their initial cash invested, increased from approximately 60.5% as of the end of our fiscal year 2015. This entity is consolidated in the accompanying financial statements. Miami, Florida We are the sole general partner and a 5% limited partner in this limited partnership which has owned and operated a restaurant in Miami, Florida under our “Flanigan’s Seafood Bar and Grill” service mark since December 27, 2012. 26.8% of the remaining limited partnership interest is owned by persons who are either our officers, directors or their family members. As of the end of our fiscal year 2016, this limited partnership has returned to its investors approximately 71.0% of their initial cash invested, increased from approximately 42.0% as of the end of our fiscal year 2015. This entity is consolidated in the accompanying financial statements. 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% limited partnership interest in this limited partnership. 56.9% of the remaining limited partnership interest is owned by persons who are either our officers, directors or their family members. We have a franchise arrangement with this limited partnership. For accounting purposes, we do not consolidate the operations of this limited partnership into our operations. This entity is reported using the equity method in the accompanying consolidated financial statements. The following is a summary of condensed unaudited financial information pertaining to our limited partnership investment in Fort Lauderdale, Florida: 2016 2015 Financial Position: Current assets $ 167,000 $ 350,000 Non-current assets 647,000 553,000 Current liabilities 145,000 181,000 Operating Results: Revenues 3,480,000 3,252,000 Gross profit 2,310,000 2,135,000 Net income 66,000 133,000 |
INVESTMENTS IN REAL PROPERTY
INVESTMENTS IN REAL PROPERTY | 12 Months Ended |
Oct. 01, 2016 | |
INVESTMENT IN REAL PROPERTY FINANCED BY DEBT [Abstract] | |
INVESTMENTS IN REAL PROPERTY | NOTE 5. INVESTMENTS IN REAL PROPERTY Oakland Park, Florida During the first quarter of our fiscal year 2016, we purchased the real property and improvements located at 1290 East Commercial Boulevard, Oakland Park, Broward County, Florida (the “1290 Property”) and the vacant real property located at 4990 N.E. 12 th Davie/Hollywood, Florida During the second quarter of our fiscal year 2015, we acquired for $1.5 million cash at closing, 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 plan to (i) construct a building on the Property into which we will re-locate the existing (Store #19) package liquor store; and (ii) renovate and expand our (Store #19) restaurant into the former package liquor store space. The Property will also provide for a larger parking lot to be used by our customers. |
RECENT EXTENSIONS OF EXISTING L
RECENT EXTENSIONS OF EXISTING LEASES FOR EXISTING LOCATIONS | 12 Months Ended |
Oct. 01, 2016 | |
Leases [Abstract] | |
RECENT EXTENSIONS OF EXISTING LEASES FOR EXISTING LOCATIONS | NOTE 6. RECENT EXTENSIONS OF EXISTING LEASES FOR EXISTING LOCATIONS Stuart, Florida During the third quarter of our fiscal year 2016, we extended our lease for the restaurant we own located at 950 S. Federal Highway, Stuart, Florida (Store #75) for a period of five (5) years through April 30, 2021, with two (2) five (5) year renewal options, under the same terms and conditions. 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) years through October 31, 2020, with one (1) five (5) year renewal option, under the same terms and conditions except for fixed rental increases at the start of the lease extension and the renewal option, if exercised by the Company. North Lauderdale, Florida During the first quarter of our fiscal year 2015, we (i) 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 (ii) 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. |
FINANCED INSURANCE PREMIUMS
FINANCED INSURANCE PREMIUMS | 12 Months Ended |
Oct. 01, 2016 | |
RE-FINANCING OF EXISTING DEBT [Abstract] | |
FINANCED INSURANCE PREMIUMS | NOTE 7. FINANCED INSURANCE PREMIUMS Effective December 30, 2015, we cancelled our property insurance for the policy year beginning March 12, 2015 and replaced it with a new property insurance policy effective as of the same date. The cancelled property insurance policy was a one (1) year policy with an unaffiliated third party insurance carrier. The one (1) year property insurance premium was in the amount of $482,000, of which $416,000 was financed through an unaffiliated third party lender. The finance agreement provides that we are obligated to repay the amounts financed, together with interest at the rate of 2.95% per annum, over 8 months, with monthly payments of principal and interest, each in the amount of approximately $52,000. As of the date we cancelled the insurance, (December 30, 2015), the finance agreement was paid in full and the pro-rata balance of the unearned premiums that we were due, $100,000, was recorded as a receivable as of the end of the first quarter of our fiscal year 2016. We cancelled our property insurance policy effective December 30, 2015 and replaced it with a new property insurance policy effective as of the same date so that our property insurance expires at the same time as our general liability insurance policies. During our fiscal year 2016, we financed the following three (3) property and general liability insurance policies, totaling approximately $1.17 million, which property and general liability insurance includes coverage for our franchises of approximately $256,000 of the amount financed, which are not included in our consolidated financial statements: (i) For the policy year beginning December 30, 2015, our general liability insurance, excluding limited partnerships, is a one (1) year policy with our insurance carriers, including automobile and excess liability coverage. The one (1) year general liability insurance premiums, including automobile and excess liability coverage, total, in the aggregate $470,000, of which $377,000 is financed through an unaffiliated third party lender (the “Third Party Lender”). The finance agreement obligates us to repay the amounts financed together with interest at the rate of 2.95% per annum, over 10 months, with monthly payments of principal and interest, each in the amount of $38,000. The finance agreement is secured by a security interest in all insurance policies, all unearned premium, return premium, dividend payments and loss payments thereof. (ii) For the policy year beginning December 30, 2015, our general liability insurance for our limited partnerships is a one (1) year policy with our insurance carriers, including excess liability coverage. The one (1) year general liability insurance premiums, including excess liability coverage, total, in the aggregate $480,000, of which $385,000 is financed through the Third Party Lender. The finance agreement obligates us to repay the amounts financed, together with interest at the rate of 2.95% per annum, over 10 months, with monthly payments of principal and interest, each in the amount of $39,000. The finance agreement is secured by a security agreement in all insurance policies, all unearned premium, return premium, dividend payments and loss payments thereof. (iii) For the policy year beginning December 30, 2015, our property insurance is a one (1) year policy. The one (1) year property insurance premium is in the amount of $504,000, of which $404,000 is financed through the Third Party Lender. The finance agreement provides that we are obligated to repay the amounts financed, together with interest at the rate of 2.95% per annum, over 10 months, with monthly payments of principal and interest, each in the amount of approximately $41,000. The finance agreement is secured by a security interest in all insurance policies, all unearned premium, return premium, dividend payments and loss payments thereof. As of October 1, 2016, the aggregate principal balance owed from the financing of our property and general liability insurance policies is $186,000. (See Note 10) |
LIQUOR LICENSES
LIQUOR LICENSES | 12 Months Ended |
Oct. 01, 2016 | |
Disclosure Text Block [Abstract] | |
LIQUOR LICENSES | NOTE 8. 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 October 1, 2016, exceeded the carrying amount; therefore, we recognized no impairment loss. The fair value of the liquor licenses was evaluated by comparing the carrying value to recent sales for similar liquor licenses in the County issued. At October 1, 2016 and October 3, 2015, the total carrying amount of our liquor licenses was $630,000. We acquired no liquor licenses in our fiscal years 2016 and 2015. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Oct. 01, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 9. INCOME TAXES The components of our provision for income taxes for our fiscal years 2016 and 2015 are as follows: 2016 2015 Current: Federal $ 1,078,000 $ 1,270,000 State 254,000 294,000 Deferred: 1,332,000 1,564,000 Federal 32,000 81,000 State 3,000 9,000 35,000 90,000 $ 1,367,000 $ 1,654,000 A reconciliation of income tax computed at the statutory federal rate to income tax expense is as follows: 2016 2015 Tax provision at the statutory rate of 34% $ 2,154,000 $ 2,344,000 Non-controlling interests (656,000 ) (605,000 ) State income taxes, net of federal income tax 186,000 212,000 FICA tip credit (343,000 ) (313,000 ) True up adjustment (26,000 ) (16,000 ) Other permanent items 52,000 32,000 $ 1,367,000 $ 1,654,000 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 1, 2016 and October 3, 2015 were as follows: 2016 2015 Current: Reversal of aged payables $ 27,000 $ 27,000 Capitalized inventory costs 26,000 23,000 Accrued bonuses 342,000 327,000 Accruals for potential uninsured claims 41,000 25,000 Gift cards 178,000 141,000 Limited partnership management fees (233,000 ) (168,000 ) $ 381,000 $ 375,000 Long-Term: Book/tax differences in property and equipment $ 628,000 $ 650,000 Limited partnership investments 197,000 213,000 Accrued limited retirement 37,000 40,000 $ 862,000 $ 903,000 |
DEBT
DEBT | 12 Months Ended |
Oct. 01, 2016 | |
Debt Disclosure [Abstract] | |
DEBT | NOTE 10. DEBT Long-Term Debt 2016 2015 Mortgage payable to lender, secured by a first mortgage on real property and improvements, bearing interest at BBA LIBOR – 1 Month +2.25%, (2.778% at October 1, 2016), but with $2,859,000 of the principal amount fixed at 4.51% pursuant to a swap agreement, amortized over 20 years, payable in monthly installments of principal and interest of approximately $23,700, and our current monthly payment of principal and interest as to that portion of the principal amount not fixed by the interest rate swap agreement, ($572,000), is payable at BBA LIBOR – 1 Month + 2.25% interest rate, (2.778% as of October 1, 2016). The entire principal balance and all accrued but unpaid interest is due on December 1, 2019. $ 3,431,000 $ 3,656,000 Mortgage payable to unrelated third party, secured by first mortgage on real property and improvements, bearing interest at 7½%, amortized over 20 years, payable in monthly installments of principal and interest of approximately $15,700, with a balloon payment of approximately $1,331,000 in December, 2022. 1,772,000 1,826,000 Mortgage payable to lender, secured by a first mortgage on real property and improvements, bearing interest at BBA LIBOR – 1 Month +2.25%, (2.778% at October 1, 2016), but with the principal amount fixed at 4.35% pursuant to a swap agreement, amortized over 20 years, payable in monthly installments of principal and interest of approximately $8,775, with a balloon payment of approximately $858,000 on January 31, 2023. 1,229,000 1,279,000 Term loan payable to lender, secured by a blanket loan on all Company assets, bearing interest at BBA LIBOR – 1 Month + 3.25%, (3.778% at October 1, 2016), but fixed at 4.00% pursuant to a swap agreement, payable in forty two (42) monthly installments of principal and interest of approximately $41,000, with the final payment made July 24, 2016. — 399,000 Term loan payable to lender, secured by a blanket loan on all Company assets, bearing interest at BBA LIBOR – 1 Month + 2.25%, (2.778% at October 1, 2016), but fixed at 3.43%, pursuant to a swap agreement, payable in monthly installments of principal and interest of approximately $38,000, payable interest only for 3 months and then fully amortized over 45 months, with the final payment made December 1, 2015. — 107,000 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%, amortized over 15 years, payable in monthly installments of principal and interest of approximately $5,700, with a balloon payment of approximately $457,000 due in March, 2021. 640,000 676,000 Mortgage payable to lender, secured by a first mortgage on real property and improvements, bearing interest at BBA LIBOR +2.25%, (2.778% at October 1, 2016), but fixed at 5.11% pursuant to a swap agreement, amortized over 20 years, payable in monthly installments of principal and interest of approximately $4,600, with a balloon payment of approximately $720,000 due in August, 2017. 750,000 785,000 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%, amortized over 15 years, payable in monthly installments of principal and interest of approximately $4,900, with a balloon payment of approximately $391,000 in May, 2021. 552,000 583,000 Financed insurance premiums, secured by all insurance policies, bearing interest at 2.95%, payable in monthly installments of principal and interest in the aggregate amount of $118,000 a month through October 30, 2016. 186,000 252,000 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%, amortized over 15 years, payable in monthly installments of principal and interest of approximately $6,000, with a balloon payment of approximately $476,000 due in April, 2021. 669,000 706,000 Mortgage payable to unrelated third party, secured by first mortgage on real property and improvements, bearing interest at 7½%, amortized over 20 years, payable in monthly installments of principal and interest of approximately $7,300, with a final payment due in March, 2034. 847,000 869,000 Other 179,000 242,000 10,255,000 11,380,000 Less current portion 1,466,000 1,307,000 $ 8,789,000 $ 10,073,000 Long-term debt at October 1, 2016 matures as follows: 2017 $ 1,466,000 2018 542,000 2019 539,000 2020 3,041,000 2021 669,000 Thereafter 3,998,000 $ 10,255,000 As of October 1, 2016, 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. 01, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS, CONTINGENCIES AND OTHER MATTERS | NOTE 11. COMMITMENTS, CONTINGENCIES AND OTHER MATTERS Construction Contract On March 28, 2016, we entered into a construction contract in the amount of $1,061,000 to build a new building on a parcel of real property which we own which is near the real property where our combination package liquor store and restaurant located at 13205 Biscayne Boulevard, North Miami, Florida, (Store #20) operates. Our intent is to re-locate our package liquor store to the new building and to renovate and expand the restaurant into the former package liquor store space. As of October 1, 2016, we are in the early construction stage. 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) employment related, self-insured lawsuits filed against us, including against several of our limited partnerships, for an aggregate total of approximately $193,000. We have previously accrued for this potential self-insured liability in the accompanying consolidated balance sheets in the caption "Accounts payable and accrued expenses". Leases We lease a substantial portion of the land and buildings used in our operations under leases with initial terms expiring between 2017 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% to 4% of annual sales in excess of established amounts. For another Company-owned restaurant, lease rental is subject to sales overrides of 7.3% of annual sales in excess of the base rent paid and another Company-owned restaurant, lease rental is subject to sales overrides of 3.0% of annual sales. For four limited partnership restaurants, lease rentals are subject to sales overrides ranging from 2% to 5.5% of annual sales in excess of the base rent paid. We recognize rent expense on a straight line basis over the term of the lease and percentage rent as incurred. We have a ground lease for an out parcel in Hollywood, Florida where we constructed a 4,120 square foot stand-alone building, one-half (1/2) of which is used by us for the operation of our Company-owned package liquor store and the other one-half (1/2) of which is subleased to an unrelated third party as retail space. Rent for the retail space commenced January 1, 2005, and we generated approximately $102,000 and $54,000 of revenue from this source during our fiscal years ended October 1, 2016 and October 3, 2015, respectively. Total future minimum sublease payments under the non-cancelable sublease are $198,000, including Florida sales tax (currently 6%) through December 31, 2019. Future minimum lease payments, including Florida sales tax (currently 6% to 7%) under our non-cancelable operating leases as of October 1, 2016 are as follows: 2017 $ 2,907,000 2018 2,445,000 2019 2,359,000 2020 1,777,000 2021 950,000 Thereafter 1,067,000 Total $ 11,505,000 Total rent expense for all of our operating leases was approximately $3,506,000 and $3,386,000 in our fiscal years 2016 and 2015, respectively, and is included in “Occupancy Costs” in our accompanying consolidated statements of income. This total rent expense is comprised of the following: 2016 2015 Minimum Base Rent $ 2,694,000 $ 2,636,000 Contingent Percentage Rent 812,000 750,000 Total $ 3,506,000 $ 3,386,000 Purchase Commitments In order to fix the cost and ensure adequate supply of baby back ribs for our restaurants during calendar year 2017, on November 5, 2016, we entered into a purchase agreement with our current rib supplier, whereby we agreed to purchase approximately $5,779,000 of baby back ribs during calendar year 2017 from this vendor at a fixed cost. While we anticipate purchasing all of our rib supply from this vendor, we believe that several other alternative vendors are available, if necessary. Franchise Program At October 1, 2016 and October 3, 2015, we were the franchisor of five units under franchise agreements. Of the five franchised stores, three are combination restaurant/package liquor stores and two are restaurants (one of which we operate). Four ● James G. Flanigan, our Chairman of the Board of Directors, Chief Executive Officer and President of the Company, and Michael B. Flanigan, a member of our Board of Directors and James G. Flanigan’s brother, are each a 35.24% owner of a company which has a franchise arrangement with us for the operation of a combination restaurant/package liquor store located in Coconut Grove, Florida (Store #18). ● Patrick J. Flanigan, brother to both James G. Flanigan and Michael B. Flanigan and a member of our Board of Directors, owns 100% of a company which has a franchise arrangement with us for the operation of a combination restaurant/package liquor store located in Pompano Beach, Florida (Store #43). ● Our officers and directors collectively own 30% of the shareholder interest of a company which has a franchise arrangement with us for the operation of a restaurant located in Deerfield Beach, Florida. The shareholder interest of James G. Flanigan’s family represents an additional 60% of the total invested capital in this franchised location (Store #14). ● Patrick J. Flanigan is the sole general partner and a 25% limited partner in a limited partnership which has a franchise arrangement with us for the operation of a restaurant located in Fort Lauderdale, Florida. The Company is a 25% limited partner in this limited partnership and officers and directors of the Company (excluding Patrick J. Flanigan) own an additional 31.9% limited partnership interest in this franchised location (Store #15). Under the franchise agreements, we provide guidance, advice and management assistance to the franchisees. In addition and for an additional annual fee of approximately $25,000, we also act as fiscal agent for the franchisees whereby we collect all revenues and pay all expenses and distributions. We also, from time to time, advance funds on behalf of the franchisees for the cost of renovations. The resulting amounts receivable from and payable to these franchisees are reflected in the accompanying consolidated balance sheet as either an asset or a liability. We also agree to sponsor and manage cooperative buying groups on behalf of the franchisees for the purchase of inventory. The franchise agreements provide for royalties to us of approximately 3% of gross restaurant sales and 1% of gross package liquor sales. During our fiscal years 2016 and 2015, we earned royalties of $606,000 and $576,000, respectively, from our related franchises. We are not currently offering or accepting new franchises. Employment Agreement/Bonuses As of October 1, 2016 and October 3, 2015, we had no employment agreements. Our Board of Directors approved an annual performance bonus, with 14.75% of the corporate pre-tax net income, plus or minus non-recurring items, but before depreciation and amortization in excess of $650,000 paid to the Chief Executive Officer and 5.25% paid to other members of management. Bonuses for our fiscal years 2016 and 2015 amounted to approximately $1,497,000 and $1,519,000, respectively. Our Board of Directors also approved an annual performance bonus, with 5% of the pre-tax net income before depreciation and amortization from our restaurants in excess of $1,875,000 and our share of the pre-tax net income before depreciation and amortization from the restaurants owned by the limited partnerships paid to the Chief Operating Officer and 5% paid to the Chief Financial Officer. Bonuses for our fiscal years 2016 and 2015 amounted to approximately $897,000 and $861,000, respectively. 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 or ten (10%) percent of gross sales from the club, offset by one-half (1/2) of any rental increases, provided our fees will never be less than $150,000 per year. For our fiscal years ended October 1, 2016 and October 3, 2015, we generated $150,000 and $163,000 of revenue, respectively, from the operation of the club. 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 in exchange for our rights to manage this restaurant. The management agreement is being amortized on a straight line basis over the life of the initial term of the agreement, ten (10) years. As of October 1, 2016 and October 3, 2015, the balance of our management agreement of $-0- and $13,000 was included in other assets in the accompanying consolidated balance sheet. The restaurant is owned by a third party unaffiliated with us. In exchange for providing management, bookkeeping and related services, we receive one-half (½) of the net profit, if any, from the operation of the restaurant. During the third quarter of our fiscal year 2011, the term of the management agreement was extended through January 9, 2036. For the fiscal years ended October 1, 2016 and October 3, 2015, we generated $442,000 and $500,000 of revenue respectively, from providing these management services. |
FAIR VALUE MEASUREMENTS OF FINA
FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Oct. 01, 2016 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS | NOTE 12. FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS We follow FASB (ASC) Topic 820, “ Fair Value Measurements and Disclosures • 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 October 1, 2016, we had three variable rate debt instruments outstanding that are impacted by changes in interest rates. In July, 2010, we re-financed the mortgage loan encumbering our corporate offices (the “Refinanced Mortgage Loan”). In November, 2011, we financed our purchase of the real property and two building shopping center in Miami, Florida, with a $4,500,000 mortgage loan (the “$4.5M Mortgage Loan”). In January, 2013, we re-financed the mortgage loan encumbering the property where our combination package liquor store and restaurant 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”). 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 three (3) interest rate swap agreements: (i) One (1) interest rate swap agreement entered into July, 2010 relates to the Refinanced Mortgage Loan (the “Mortgage Loan Swap”). The Mortgage Loan Swap requires us to pay interest for a seven (7) year period at a fixed rate of 5.11% on an initial amortizing notional principal amount of $935,000, while receiving interest for the same period at LIBOR, Daily Floating Rate, plus 2.25%, on the same amortizing notional principal amount. Under this method of accounting, at October 1, 2016, we determined that based upon unadjusted quoted prices in active markets for similar assets or liabilities provided by our unrelated third party lender, the swap is not an effective hedging agreement, however the 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 Mortgage Loan (the “$4.5M Mortgage Loan Swap”). The $4.5M Mortgage Loan Swap requires us to pay interest for an eight (8) year period at a fixed rate of 4.51% on an initial amortizing notional principal amount of $3,750,000, while receiving interest for the same period at LIBOR – 1 Month, plus 2.25%, on the same amortizing notional principal amount. We determined that at October 1, 2016, the interest rate swap agreement is an effective hedging agreement and the fair value was not material; and (iii) The third 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% on an initial amortizing notional principal amount of $1,405,000, while receiving interest for the same period at LIBOR – 1 Month, plus 2.25%, on the same amortizing notional principal amount. We determined that at October 1, 2016, the interest rate swap agreement is an effective hedging agreement and the fair value was not material. |
COMMON STOCK
COMMON STOCK | 12 Months Ended |
Oct. 01, 2016 | |
Stockholders' Equity Note [Abstract] | |
COMMON STOCK | NOTE 13. COMMON STOCK Treasury Stock Purchase of Common Shares During our fiscal years 2016 and 2015, we did not purchase any shares of our common stock. As of October 1, 2016, we still have authority to purchase 65,414 shares of our common stock under the discretionary plan approved by the Board of Directors on May 17, 2007. Our current repurchase plan has no expiration date and purchases under this program may be made from time to time on the open market and in private transactions, depending on market conditions, up to a purchase price of price of $15 per share. |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | 12 Months Ended |
Oct. 01, 2016 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENTS | NOTE 14. 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 our fiscal years ended 2016 and 2015, 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 expense 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. Operating Revenues: 2016 2015 Restaurants $ 85,446,000 $ 81,502,000 Package stores 15,661,000 15,166,000 Other revenues 2,511,000 2,453,000 Total operating revenues $ 103,618,000 $ 99,121,000 Income from Operations Reconciled to Income after Restaurants $ 9,468,000 $ 8,624,000 Package stores 853,000 1,015,000 10,321,000 9,639,000 Corporate expenses, net of other revenues (3,520,000 ) (2,238,000 ) Income from Operations 6,801,000 7,401,000 Interest expense (557,000 ) (610,000 ) Interest and Other Income 92,000 102,000 Income before provision for income taxes $ 6,336,000 $ 6,893,000 Provision for Income Taxes (1,367,000 ) (1,654,000 ) Net Income 4,969,000 5,239,000 Net Income Attributable to Noncontrolling Interests (1,929,000 ) (1,778,000 ) Net Income Attributable to Flanigan’s Enterprises, Inc, Stockholders $ 3,040,000 $ 3,461,000 Identifiable Assets: Restaurants $ 28,461,000 $ 29,478,000 Package store 4,727,000 4,393,000 33,188,000 33,871,000 Corporate 23,376,000 20,751,000 Consolidated Totals $ 56,564,000 $ 54,622,000 Capital Expenditures Restaurants $ 1,353,000 $ 3,453,000 Package stores 328,000 246,000 1,681,000 3,699,000 Corporate 1,743,000 429,000 Total Capital Expenditures $ 3,424,000 $ 4,128,000 Depreciation and Amortization: Restaurants $ 2,064,000 $ 1,975,000 Package stores 205,000 205,000 2,269,000 2,180,000 Corporate 416,000 493,000 Total Depreciation and Amortization $ 2,685,000 $ 2,673,000 |
QUARTERLY INFORMATION (UNAUDITE
QUARTERLY INFORMATION (UNAUDITED) | 12 Months Ended |
Oct. 01, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY INFORMATION (UNAUDITED) | NOTE 15. QUARTERLY INFORMATION (UNAUDITED ) The following is a summary of our unaudited quarterly results of operations for the quarters in our fiscal years 2016 and 2015. Quarter Ended Jan. 2, 2016 April 2, 2016 July 2, 2016 Oct. 1, 2016 (13 weeks) Revenues $ 25,278,000 $ 26,974,000 $ 26,383,000 $ 24,983,000 Income from operations 1,351,000 1,978,000 2,411,000 1,061,000 Net income attributable to 624,000 874,000 1,147,000 395,000 Net income per share – 0.34 0.47 0.62 0.21 Weighted average common 1,858,647 1,858,647 1,858,647 1,858,647 Quarter Ended Dec. 27, 2014 March 28, 2015 June 27, 2015 Oct. 3, 2015 (14 weeks) 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 1,858,647 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. 01, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
401(k) PLAN | NOTE 16. 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 2016 and 2015, we made discretionary contributions of $43,000 and $35,000, respectively. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Oct. 01, 2016 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 17. SUBSEQUENT EVENTS Subsequent events have been evaluated through the date these consolidated financial statements were issued and no events required disclosure. |
SUMMARY OF SIGNIFICANT ACCOUN24
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Oct. 01, 2016 | |
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 October 1, 2016, we (i) operated 25 units, (excluding the adult entertainment club referenced in (ii) below), consisting of restaurants, package liquor stores and combination restaurants/package liquor stores that we either own or have operational control over and partial ownership in; (ii) own but do not operate one adult entertainment club; and (iii) franchise an additional five units, consisting of two restaurants, (one of which we operate) and three combination restaurants/package liquor stores. With the exception of one restaurant we operate under the name “The Whale’s Rib”, and in which we do not have an ownership interest, all of the restaurants operate under our service mark “Flanigan’s Seafood Bar and Grill” and all of the package liquor stores operate under our service mark “Big Daddy’s Liquors”. The Company’s Articles of Incorporation, as amended, authorize us to issue and have outstanding at any one time 5,000,000 shares of common stock at a par value of $0.10 per share. We operate under a 52-53 week year ending the Saturday closest to September 30. Our fiscal year 2016 is comprised of a 52-week period and our fiscal year 2015 is comprised of a 53-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. Noncontrolling interests in consolidated subsidiaries are included in the consolidated balance sheets as a separate component of equity. We report consolidated net income inclusive of both the Company’s and the noncontrolling interests’ share, as well as amounts of consolidated net income (loss) attributable to each of the Company and the noncontrolling interests. |
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. |
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 to five years for vehicles, and three to seven years for furniture and equipment. Leasehold improvements are currently being amortized over the shorter of the life of the lease or the life of the asset up to a maximum of 20 years. Our building and building improvements of our corporate offices in Fort Lauderdale, Florida; our building and building improvements of our construction office/warehouse in Fort Lauderdale, Florida; our combination restaurant and package liquor stores in Hallandale, Florida, Hollywood, Florida and North Miami, Florida; our restaurant in Fort Lauderdale, Florida; and our shopping center in Miami, Florida and property in Fort Lauderdale, Florida, all of which we own, are being depreciated over forty years. |
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 Suppliers | Major Suppliers Throughout our fiscal years 2016 and 2015, 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 periods in which they are earned. We believe that several other alternative vendors are available, if necessary. Throughout our fiscal years 2016 and 2015, we purchased the majority of our alcoholic beverages from three local distributors. Each distributor has exclusive rights from the manufacturers to sell specific brands in given areas, so unless the exclusive distribution rights are transferred to another vendor, there are no alternate distributors available. |
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 opening, rent and promotional costs. We expense pre-opening costs as incurred. During our fiscal years 2016 and 2015, we reported no losses. |
Advertising Costs | Advertising Costs Our advertising costs are expensed as incurred. Advertising costs incurred during our fiscal years ended October 1, 2016 and October 3, 2015 were approximately $494,000 and $343,000 respectively. |
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 of exposure per occurrence, while the limited partnerships assume the full risk of the first $10,000 of exposure per occurrence. Our insurance carrier is responsible for $1,000,000 coverage per occurrence above our self-insured deductible, up to a maximum aggregate of $2,000,000 per year. During our fiscal years ended October 1, 2016 and October 3, 2015, we were able to purchase excess liability insurance, whereby our excess insurance carrier is responsible for $6,000,000 coverage above our primary general liability insurance coverage. With the exception of one (1) limited partnership which has higher general liability insurance coverage to comply with the terms of its lease for the business premises, we are un-insured against liability claims in excess of $7,000,000 per occurrence and in the aggregate. 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 or $10,000, as applicable, self-insured retention. |
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 10). |
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 follow the provisions regarding Accounting for Uncertainty in Income Taxes, |
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 There were no recently adopted accounting pronouncements during our fiscal year 2016 that we believe will have a material impact on our consolidated financial statements. Issued In August 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-15 “Classification of Certain Cash Receipts and Cash Payments”. This ASU addresses how certain cash receipts and cash payments are presented and classified in the statement of cash flows under Topic 230, “Statement of Cash Flows”, and other Topics. ASU 2016-15 is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2017. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which supersedes all existing guidance on accounting for leases in ASC Topic 840. ASU 2016-02 is intended to provide enhanced transparency and comparability by requiring lessees to record right-of-use assets and corresponding lease liabilities on the balance sheet. ASU 2016-02 will continue to classify leases as either finance or operating, with classification affecting the pattern of expense recognition in the statement of income. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. ASU 2016-02 requires a modified retrospective approach for all leases existing at, or entered into after the date of initial adoption, with an option to elect to use certain transaction relief. We are currently assessing the adoption date and the potential impact of adopting ASU 2016-02 on our financial statements and related disclosures. In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes In April 2015, the FASB issued ASU 2015-03, Interest—Imputation 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 In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, “Revenue from Contracts with Customers,” (ASU 2014-09), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. generally accepted accounting principles when it becomes effective. The new standard was originally effective for interim and annual periods in fiscal years beginning after December 15, 2016. In July 2015, the FASB affirmed its proposal for a one year deferral of the effective date. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Oct. 01, 2016 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | 2016 2015 Furniture and equipment $ 11,211,000 $ 11,073,000 Leasehold improvements 21,428,000 20,639,000 Land and land improvements 17,049,000 16,742,000 Building and improvements 14,520,000 13,653,000 Vehicles 1,230,000 1,183,000 65,438,000 63,290,000 Less accumulated depreciation and amortization 27,285,000 25,712,000 $ 38,153,000 $ 37,578,000 |
LEASEHOLD INTERESTS (Tables)
LEASEHOLD INTERESTS (Tables) | 12 Months Ended |
Oct. 01, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of leasehold interests | 2016 2015 Leasehold interests, at cost $ 3,024,000 $ 3,024,000 Less accumulated amortization 2,364,000 2,243,000 $ 660,000 $ 781,000 |
Future amortization of leasehold interests | Future leasehold amortization as of October 1, 2016 is as follows: 2017 $ 122,000 2018 122,000 2019 122,000 2020 96,000 2021 82,000 Thereafter 116,000 Total $ 660,000 |
INVESTMENTS IN LIMITED PARTNE27
INVESTMENTS IN LIMITED PARTNERSHIPS (Tables) | 12 Months Ended |
Oct. 01, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Financial Information Pertaining to our Limited Partnership Investment | The following is a summary of condensed unaudited financial information pertaining to our limited partnership investment in Fort Lauderdale, Florida: 2016 2015 Financial Position: Current assets $ 167,000 $ 350,000 Non-current assets 647,000 553,000 Current liabilities 145,000 181,000 Operating Results: Revenues 3,480,000 3,252,000 Gross profit 2,310,000 2,135,000 Net income 66,000 133,000 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Oct. 01, 2016 | |
Income Tax Disclosure [Abstract] | |
Components of the provision for income taxes | The components of our provision for income taxes for our fiscal years 2016 and 2015 are as follows: 2016 2015 Current: Federal $ 1,078,000 $ 1,270,000 State 254,000 294,000 Deferred: 1,332,000 1,564,000 Federal 32,000 81,000 State 3,000 9,000 35,000 90,000 $ 1,367,000 $ 1,654,000 |
Reconciliation of income tax computed at the statutory federal rate to income tax expense | A reconciliation of income tax computed at the statutory federal rate to income tax expense is as follows: 2016 2015 Tax provision at the statutory rate of 34% $ 2,154,000 $ 2,344,000 Non-controlling interests (656,000 ) (605,000 ) State income taxes, net of federal income tax 186,000 212,000 FICA tip credit (343,000 ) (313,000 ) True up adjustment (26,000 ) (16,000 ) Other permanent items 52,000 32,000 $ 1,367,000 $ 1,654,000 |
Components of deferred tax assets | The components of our deferred tax assets at October 1, 2016 and October 3, 2015 were as follows: 2016 2015 Current: Reversal of aged payables $ 27,000 $ 27,000 Capitalized inventory costs 26,000 23,000 Accrued bonuses 342,000 327,000 Accruals for potential uninsured claims 41,000 25,000 Gift cards 178,000 141,000 Limited partnership management fees (233,000 ) (168,000 ) $ 381,000 $ 375,000 Long-Term: Book/tax differences in property and equipment $ 628,000 $ 650,000 Limited partnership investments 197,000 213,000 Accrued limited retirement 37,000 40,000 $ 862,000 $ 903,000 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Oct. 01, 2016 | |
Debt Disclosure [Abstract] | |
Long term debt | Long-Term Debt 2016 2015 Mortgage payable to lender, secured by a first mortgage on real property and improvements, bearing interest at BBA LIBOR – 1 Month +2.25%, (2.778% at October 1, 2016), but with $2,859,000 of the principal amount fixed at 4.51% pursuant to a swap agreement, amortized over 20 years, payable in monthly installments of principal and interest of approximately $23,700, and our current monthly payment of principal and interest as to that portion of the principal amount not fixed by the interest rate swap agreement, ($572,000), is payable at BBA LIBOR – 1 Month + 2.25% interest rate, (2.778% as of October 1, 2016). The entire principal balance and all accrued but unpaid interest is due on December 1, 2019. $ 3,431,000 $ 3,656,000 Mortgage payable to unrelated third party, secured by first mortgage on real property and improvements, bearing interest at 7½%, amortized over 20 years, payable in monthly installments of principal and interest of approximately $15,700, with a balloon payment of approximately $1,331,000 in December, 2022. 1,772,000 1,826,000 Mortgage payable to lender, secured by a first mortgage on real property and improvements, bearing interest at BBA LIBOR – 1 Month +2.25%, (2.778% at October 1, 2016), but with the principal amount fixed at 4.35% pursuant to a swap agreement, amortized over 20 years, payable in monthly installments of principal and interest of approximately $8,775, with a balloon payment of approximately $858,000 on January 31, 2023. 1,229,000 1,279,000 Term loan payable to lender, secured by a blanket loan on all Company assets, bearing interest at BBA LIBOR – 1 Month + 3.25%, (3.778% at October 1, 2016), but fixed at 4.00% pursuant to a swap agreement, payable in forty two (42) monthly installments of principal and interest of approximately $41,000, with the final payment made July 24, 2016. — 399,000 Term loan payable to lender, secured by a blanket loan on all Company assets, bearing interest at BBA LIBOR – 1 Month + 2.25%, (2.778% at October 1, 2016), but fixed at 3.43%, pursuant to a swap agreement, payable in monthly installments of principal and interest of approximately $38,000, payable interest only for 3 months and then fully amortized over 45 months, with the final payment made December 1, 2015. — 107,000 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%, amortized over 15 years, payable in monthly installments of principal and interest of approximately $5,700, with a balloon payment of approximately $457,000 due in March, 2021. 640,000 676,000 Mortgage payable to lender, secured by a first mortgage on real property and improvements, bearing interest at BBA LIBOR +2.25%, (2.778% at October 1, 2016), but fixed at 5.11% pursuant to a swap agreement, amortized over 20 years, payable in monthly installments of principal and interest of approximately $4,600, with a balloon payment of approximately $720,000 due in August, 2017. 750,000 785,000 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%, amortized over 15 years, payable in monthly installments of principal and interest of approximately $4,900, with a balloon payment of approximately $391,000 in May, 2021. 552,000 583,000 Financed insurance premiums, secured by all insurance policies, bearing interest at 2.95%, payable in monthly installments of principal and interest in the aggregate amount of $118,000 a month through October 30, 2016. 186,000 252,000 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%, amortized over 15 years, payable in monthly installments of principal and interest of approximately $6,000, with a balloon payment of approximately $476,000 due in April, 2021. 669,000 706,000 Mortgage payable to unrelated third party, secured by first mortgage on real property and improvements, bearing interest at 7½%, amortized over 20 years, payable in monthly installments of principal and interest of approximately $7,300, with a final payment due in March, 2034. 847,000 869,000 Other 179,000 242,000 10,255,000 11,380,000 Less current portion 1,466,000 1,307,000 $ 8,789,000 $ 10,073,000 |
Long term debt maturities | Long-term debt at October 1, 2016 matures as follows: 2017 $ 1,466,000 2018 542,000 2019 539,000 2020 3,041,000 2021 669,000 Thereafter 3,998,000 $ 10,255,000 |
COMMITMENTS, CONTINGENCIES AN30
COMMITMENTS, CONTINGENCIES AND OTHER MATTERS (Tables) | 12 Months Ended |
Oct. 01, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum rental payments | Future minimum lease payments, including Florida sales tax (currently 6% to 7%) under our non-cancelable operating leases as of October 1, 2016 are as follows: 2017 $ 2,907,000 2018 2,445,000 2019 2,359,000 2020 1,777,000 2021 950,000 Thereafter 1,067,000 Total $ 11,505,000 |
Schedule of rent expense | This total rent expense is comprised of the following: 2016 2015 Minimum Base Rent $ 2,694,000 $ 2,636,000 Contingent Percentage Rent 812,000 750,000 Total $ 3,506,000 $ 3,386,000 |
BUSINESS SEGMENTS (Tables)
BUSINESS SEGMENTS (Tables) | 12 Months Ended |
Oct. 01, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting | 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 our fiscal years ended 2016 and 2015, 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 expense 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. Operating Revenues: 2016 2015 Restaurants $ 85,446,000 $ 81,502,000 Package stores 15,661,000 15,166,000 Other revenues 2,511,000 2,453,000 Total operating revenues $ 103,618,000 $ 99,121,000 Income from Operations Reconciled to Income after Restaurants $ 9,468,000 $ 8,624,000 Package stores 853,000 1,015,000 10,321,000 9,639,000 Corporate expenses, net of other revenues (3,520,000 ) (2,238,000 ) Income from Operations 6,801,000 7,401,000 Interest expense (557,000 ) (610,000 ) Interest and Other Income 92,000 102,000 Income before provision for income taxes $ 6,336,000 $ 6,893,000 Provision for Income Taxes (1,367,000 ) (1,654,000 ) Net Income 4,969,000 5,239,000 Net Income Attributable to Noncontrolling Interests (1,929,000 ) (1,778,000 ) Net Income Attributable to Flanigan’s Enterprises, Inc, Stockholders $ 3,040,000 $ 3,461,000 Identifiable Assets: Restaurants $ 28,461,000 $ 29,478,000 Package store 4,727,000 4,393,000 33,188,000 33,871,000 Corporate 23,376,000 20,751,000 Consolidated Totals $ 56,564,000 $ 54,622,000 Capital Expenditures Restaurants $ 1,353,000 $ 3,453,000 Package stores 328,000 246,000 1,681,000 3,699,000 Corporate 1,743,000 429,000 Total Capital Expenditures $ 3,424,000 $ 4,128,000 Depreciation and Amortization: Restaurants $ 2,064,000 $ 1,975,000 Package stores 205,000 205,000 2,269,000 2,180,000 Corporate 416,000 493,000 Total Depreciation and Amortization $ 2,685,000 $ 2,673,000 |
QUARTERLY INFORMATION (UNAUDI32
QUARTERLY INFORMATION (UNAUDITED) (Tables) | 12 Months Ended |
Oct. 01, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly information | The following is a summary of our unaudited quarterly results of operations for the quarters in our fiscal years 2016 and 2015. Quarter Ended Jan. 2, 2016 April 2, 2016 July 2, 2016 Oct. 1, 2016 (13 weeks) Revenues $ 25,278,000 $ 26,974,000 $ 26,383,000 $ 24,983,000 Income from operations 1,351,000 1,978,000 2,411,000 1,061,000 Net income attributable to 624,000 874,000 1,147,000 395,000 Net income per share – 0.34 0.47 0.62 0.21 Weighted average common 1,858,647 1,858,647 1,858,647 1,858,647 Quarter Ended Dec. 27, 2014 March 28, 2015 June 27, 2015 Oct. 3, 2015 (14 weeks) 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 1,858,647 1,858,647 1,858,647 1,858,647 |
SUMMARY OF SIGNIFICANT ACCOUN33
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended | |
Oct. 01, 2016USD ($)item$ / sharesshares | Oct. 03, 2015USD ($)$ / 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 | 494,000 | $ 343,000 |
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 | |
Vehicles [Member] | Minimum [Member] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Vehicles [Member] | Maximum [Member] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Furniture and Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Furniture and Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment, Useful Life | 7 years | |
Leasehold Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment, Useful Life | 20 years | |
Building and Improvements [Member] | ||
Property, Plant and Equipment, Useful Life | 40 years | |
Franchised and Operated Units [Member] | ||
Number of Stores | item | 1 | |
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 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) | 12 Months Ended | |
Oct. 01, 2016 | Oct. 03, 2015 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment - gross | $ 65,438,000 | $ 63,290,000 |
Less accumulated depreciation and amortization | 27,285,000 | 25,712,000 |
Property and equipment - net | 38,153,000 | 37,578,000 |
Depreciation and amortization | 2,564,000 | 2,545,000 |
Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment - gross | 11,211,000 | 11,073,000 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment - gross | 21,428,000 | 20,639,000 |
Land and Land Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment - gross | 17,049,000 | 16,742,000 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment - gross | 1,230,000 | 1,183,000 |
Building and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment - gross | $ 14,520,000 | $ 13,653,000 |
LEASEHOLD INTERESTS (Schedule o
LEASEHOLD INTERESTS (Schedule of Leasehold Interests) (Details) - USD ($) | Oct. 01, 2016 | Oct. 03, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
Leasehold interests | $ 660,000 | $ 781,000 |
Leasehold Interests [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Leasehold interests, at cost | 3,024,000 | 3,024,000 |
Less accumulated amortization | 2,364,000 | 2,243,000 |
Leasehold interests | $ 660,000 | $ 781,000 |
LEASEHOLD INTERESTS (Future Amo
LEASEHOLD INTERESTS (Future Amortization of Leasehold Interests) (Details) - USD ($) | Oct. 01, 2016 | Oct. 03, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
Leasehold interests | $ 660,000 | $ 781,000 |
Leasehold Interests [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
2,017 | 122,000 | |
2,018 | 122,000 | |
2,019 | 122,000 | |
2,020 | 96,000 | |
2,021 | 82,000 | |
Thereafter | 116,000 | |
Leasehold interests | $ 660,000 | $ 781,000 |
INVESTMENTS IN LIMITED PARTNE37
INVESTMENTS IN LIMITED PARTNERSHIPS (Narrative) (Details) - item | 12 Months Ended | |
Oct. 01, 2016 | Oct. 03, 2015 | |
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% | |
Fort Lauderdale, Florida [Member] | ||
Ownership percentage | 25.00% | |
Affiliated Entities [Member] | Fort Lauderdale, Florida [Member] | ||
Ownership percentage in LP | 56.90% | |
Surfside, Florida [Member] | ||
Annual management fee percentage of cash available to be distributed | 50.00% | |
Ownership percentage in LP | 46.00% | |
Surfside, Florida [Member] | Affiliated Entities [Member] | ||
Ownership percentage in LP | 33.30% | |
Kendall, Florida [Member] | ||
Annual management fee percentage of cash available to be distributed | 50.00% | |
Ownership percentage in LP | 41.00% | |
Kendall, Florida [Member] | Affiliated Entities [Member] | ||
Ownership percentage in LP | 28.30% | |
West Miami, Florida [Member] | ||
Annual management fee percentage of cash available to be distributed | 50.00% | |
Ownership percentage in LP | 27.00% | |
West Miami, Florida [Member] | Affiliated Entities [Member] | ||
Ownership percentage in LP | 32.70% | |
Wellington, Florida [Member] | ||
Annual management fee percentage of cash available to be distributed | 50.00% | |
Ownership percentage in LP | 28.00% | |
Wellington, Florida [Member] | Affiliated Entities [Member] | ||
Ownership percentage in LP | 22.40% | |
Pinecrest, Florida [Member] | ||
Annual management fee percentage of cash available to be distributed | 50.00% | |
Ownership percentage in LP | 45.00% | |
Pinecrest, Florida [Member] | Affiliated Entities [Member] | ||
Ownership percentage in LP | 20.20% | |
Pembroke Pines, Florida [Member] | ||
Percentage of intital investment returned | 75.00% | 62.00% |
Ownership percentage in LP | 23.00% | |
Pembroke Pines, Florida [Member] | Affiliated Entities [Member] | ||
Ownership percentage in LP | 23.80% | |
Davie, Florida [Member] | ||
Percentage of intital investment returned | 70.50% | 60.50% |
Ownership percentage in LP | 49.00% | |
Davie, Florida [Member] | Affiliated Entities [Member] | ||
Ownership percentage in LP | 12.30% | |
Miami, Florida [Member] | ||
Percentage of intital investment returned | 71.00% | 42.00% |
Ownership percentage in LP | 5.00% | |
Miami, Florida [Member] | Affiliated Entities [Member] | ||
Ownership percentage in LP | 26.80% | |
Limited Partnership [Member] | ||
Number of restaurants | 9 | |
Limited Partnerships - Returned All Cash Invested [Member] | ||
Number of restaurants | 5 |
INVESTMENTS IN LIMITED PARTNE38
INVESTMENTS IN LIMITED PARTNERSHIPS (Schedule of Financial Information) (Details) - Fort Lauderdale, Florida [Member] - USD ($) | 12 Months Ended | |
Oct. 01, 2016 | Oct. 03, 2015 | |
Financial Position: | ||
Current assets | $ 167,000 | $ 350,000 |
Non-current assets | 647,000 | 553,000 |
Current liabilities | 145,000 | 181,000 |
Operating Results: | ||
Revenues | 3,480,000 | 3,252,000 |
Gross profit | 2,310,000 | 2,135,000 |
Net income | $ 66,000 | $ 133,000 |
INVESTMENTS IN REAL PROPERTY (D
INVESTMENTS IN REAL PROPERTY (Details) | 3 Months Ended | 12 Months Ended | |
Jan. 02, 2016USD ($)ft² | Mar. 28, 2015USD ($) | Oct. 01, 2016USD ($)ft² | |
INVESTMENT IN REAL PROPERTY FINANCED BY DEBT [Abstract] | |||
Payments to Acquire Real Estate | $ 1,500,000 | ||
Purchase price of property | $ 922,500 | $ 922,500 | |
Area of building | ft² | 6,000 | 6,000 |
RECENT EXTENSIONS OF EXISTING40
RECENT EXTENSIONS OF EXISTING LEASES FOR EXISTING LOCATIONS (Details) | 12 Months Ended |
Oct. 01, 2016USD ($)item | |
Stuart, Florida [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 |
Number of five year renewal options per lease agreement | item | 2 |
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 |
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 |
FINANCED INSURANCE PREMIUMS (De
FINANCED INSURANCE PREMIUMS (Details) | 12 Months Ended |
Oct. 01, 2016USD ($) | |
Debt Instrument [Line Items] | |
Long-term Debt | $ 10,255,000 |
Cancelled property insurance [Member] | |
Debt Instrument [Line Items] | |
Policy term | 1 year |
Insurance premium amount | $ 482,000 |
Financed premium amount | 416,000 |
Premium receivable | $ 100,000 |
Interest rate | 2.95% |
Monthly payment | $ 52,000 |
Payment frequency | Monthly |
Financed Insurance Premiums [Member] | |
Debt Instrument [Line Items] | |
Interest rate | 2.95% |
Monthly payment | $ 118,000 |
Payment frequency | Monthly |
Financed Insurance Premium One [Member] | Financed Insurance Premiums [Member] | |
Debt Instrument [Line Items] | |
Aggregate coverage | $ 470,000 |
Debt face amount | $ 377,000 |
Interest rate | 2.95% |
Term of debt | 10 months |
Monthly payment | $ 38,000 |
Payment frequency | Monthly |
Financed Insurance Premium Two [Member] | Financed Insurance Premiums [Member] | |
Debt Instrument [Line Items] | |
Aggregate coverage | $ 480,000 |
Debt face amount | $ 385,000 |
Interest rate | 2.95% |
Term of debt | 10 months |
Monthly payment | $ 39,000 |
Payment frequency | Monthly |
Financed Insurance Premium Three [Member] | Financed Insurance Premiums [Member] | |
Debt Instrument [Line Items] | |
Aggregate coverage | $ 504,000 |
Debt face amount | $ 404,000 |
Interest rate | 2.95% |
Term of debt | 10 months |
Monthly payment | $ 41,000 |
Payment frequency | Monthly |
LIQUOR LICENSES (Details)
LIQUOR LICENSES (Details) - USD ($) | Oct. 01, 2016 | Oct. 03, 2015 |
Disclosure Text Block [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. 01, 2016 | Oct. 03, 2015 | |
Current: | ||
Federal | $ 1,078,000 | $ 1,270,000 |
State | 254,000 | 294,000 |
Current income tax | 1,332,000 | 1,564,000 |
Deferred: | ||
Federal | 32,000 | 81,000 |
State | 3,000 | 9,000 |
Deferred income tax | 35,000 | 90,000 |
Provision for Income Taxes | $ 1,367,000 | $ 1,654,000 |
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. 01, 2016 | Oct. 03, 2015 | |
Reconciliation of Income Tax: | ||
Tax provision at the statutory rate | $ 2,154,000 | $ 2,344,000 |
Non-controlling interests | (656,000) | (605,000) |
State income taxes, net of federal income tax | 186,000 | 212,000 |
FICA tip credit | (343,000) | (313,000) |
True up adjustment | (26,000) | (16,000) |
Other permanent items | 52,000 | 32,000 |
Provision for Income Taxes | $ 1,367,000 | $ 1,654,000 |
Statutory tax rate | 34.00% | 34.00% |
INCOME TAXES (Components of Def
INCOME TAXES (Components of Deferred Tax Assets) (Details) - USD ($) | Oct. 01, 2016 | Oct. 03, 2015 |
Current: | ||
Reversal of aged payables | $ 27,000 | $ 27,000 |
Capitalized inventory costs | 26,000 | 23,000 |
Accrued bonuses | 342,000 | 327,000 |
Accruals for potential uninsured claims | 41,000 | 25,000 |
Gift cards | 178,000 | 141,000 |
Limited partnership management fees | (233,000) | (168,000) |
Deferred tax asset | 381,000 | 375,000 |
Long-Term: | ||
Book/tax differences in property and equipment | 628,000 | 650,000 |
Limited partnership investments | 197,000 | 213,000 |
Accrued limited retirement | 37,000 | 40,000 |
Deferred tax asset noncurrent | $ 862,000 | $ 903,000 |
DEBT (Long Term Debt) (Details)
DEBT (Long Term Debt) (Details) | 12 Months Ended | |
Oct. 01, 2016USD ($)item | Oct. 03, 2015USD ($) | |
Debt Instrument [Line Items] | ||
Long-term Debt | $ 10,255,000 | $ 11,380,000 |
Current portion of long term debt | 1,466,000 | 1,307,000 |
Long-Term Debt, Net of Current Portion | 8,789,000 | 10,073,000 |
Other [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 179,000 | 242,000 |
Mortgages [Member] | Mortgage payable to lender #1 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 3,431,000 | 3,656,000 |
Variable interest rate, description | BBA Libor - 1 month + 2.25% interest rate | |
Variable interest rate spread | 2.25% | |
Interest rate at period end | 2.778% | |
Term of debt | 20 years | |
Payment frequency | Monthly | |
Monthly payment | $ 23,700 | |
Fixed-rate portion of debt | $ 2,859,000 | |
Fixed portion of debt, interest rate | 4.51% | |
Variable-rate portion of debt | $ 572,000 | |
Variable-rate portion of debt, interest rate | 2.778% | |
Maturity date | Dec. 1, 2019 | |
Mortgages [Member] | Mortgage payable to unrelated third party #1 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 1,772,000 | 1,826,000 |
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 | $ 1,229,000 | 1,279,000 |
Variable interest rate, description | BBA LIBOR -1 Month +2.25% interest rate | |
Variable interest rate spread | 2.25% | |
Interest rate at period end | 2.778% | |
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 | $ 640,000 | 676,000 |
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 | $ 750,000 | 785,000 |
Variable interest rate, description | BBA LIBOR + 2.25% interest rate | |
Variable interest rate spread | 2.25% | |
Interest rate at period end | 2.778% | |
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 | $ 552,000 | 583,000 |
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 | $ 669,000 | 706,000 |
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 | $ 847,000 | 869,000 |
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 | |
Variable interest rate, description | BBA LIBOR - 1 month + 3.25% interest rate | |
Variable interest rate spread | 3.25% | |
Interest rate at period end | 3.778% | |
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 | |
Variable interest rate, description | BBA LIBOR - 1 month + 2.25% interest rate | |
Variable interest rate spread | 2.25% | |
Interest rate at period end | 2.778% | |
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 | $ 186,000 | $ 252,000 |
Interest rate | 2.95% | |
Payment frequency | Monthly | |
Monthly payment | $ 118,000 | |
Maturity date | Oct. 30, 2016 |
DEBT (Long Term Debt Maturities
DEBT (Long Term Debt Maturities) (Details) | Oct. 01, 2016USD ($) |
Debt maturing in fiscal year: | |
2,017 | $ 1,466,000 |
2,018 | 542,000 |
2,019 | 539,000 |
2,020 | 3,041,000 |
2,021 | 669,000 |
Thereafter | 3,998,000 |
Total | $ 10,255,000 |
COMMITMENTS, CONTINGENCIES AN48
COMMITMENTS, CONTINGENCIES AND OTHER MATTERS (Narrative) (Details) | 3 Months Ended | 12 Months Ended | |||||
Dec. 27, 2014USD ($)item | Dec. 31, 2005USD ($) | Oct. 01, 2016USD ($)ft² | Oct. 03, 2015USD ($) | Nov. 05, 2016USD ($) | Mar. 28, 2016USD ($) | Jan. 02, 2016ft² | |
Construction contract amount | $ 1,061,000 | ||||||
Owner's fee | $ 150,000 | $ 163,000 | |||||
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 | 6,000 | 6,000 | |||||
Sales tax, percentage | 6.00% | ||||||
Sublease rental income | $ 102,000 | 54,000 | |||||
Total future minimum sublease payments | 198,000 | ||||||
Total rent expense | 3,506,000 | 3,386,000 | |||||
Franchise Program: | |||||||
Fiscal agent, annual fee amount | $ 25,000 | ||||||
Royalties, gross sales | 3.00% | ||||||
Royalties, gross package liquor sales | 1.00% | ||||||
Royalty revenue | 576,000 | ||||||
Employment Agreement/Bonuses: | |||||||
Performance bonuses | $ 1,497,000 | 1,519,000 | |||||
James G. Flanigan [Member] | |||||||
Franchise Program: | |||||||
Ownership percentage in franchisee | 35.24% | ||||||
Michael B. Flanigan [Member] | |||||||
Franchise Program: | |||||||
Ownership percentage in franchisee | 35.24% | ||||||
Patrick J. Flanigan [Member] | |||||||
Franchise Program: | |||||||
Ownership percentage in franchisee | 100.00% | ||||||
Limited partnership, percentage | 25.00% | ||||||
Officers and directors [Member] | |||||||
Franchise Program: | |||||||
Ownership percentage in franchisee | 30.00% | ||||||
Limited partnership, percentage | 31.90% | ||||||
James G. Flanigan family [Member] | |||||||
Franchise Program: | |||||||
Ownership percentage | 60.00% | ||||||
Maximum [Member] | |||||||
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% | ||||||
Minimum [Member] | |||||||
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% | ||||||
Current Rib Supplier [Member] | |||||||
Purchase Commitments: | |||||||
Purchase commitment, rib supplier | $ 5,779,000 | ||||||
Limited Partnership [Member] | |||||||
Employment Agreement/Bonuses: | |||||||
Performance bonuses | $ 897,000 | 861,000 | |||||
Bonus payment expressed as percentage of corporate pre-tax net income before depreciation and amortization in excess of $1,875,000 and the company's share of the pre-tax net income before depreciation and amortization from the restaurants owned by the limited partnerships | 10.00% | ||||||
Amount of income at which bonuses begin to accrue | $ 1,875,000 | ||||||
Management [Member] | |||||||
Employment Agreement/Bonuses: | |||||||
Bonus payment expressed as percentage of corporate pre-tax net income, plus or minus non-recurring items but before depreciation and amortization in excess of $650,000 | 5.25% | ||||||
Chief Executive Officer [Member] | |||||||
Employment Agreement/Bonuses: | |||||||
Bonus payment expressed as percentage of corporate pre-tax net income, plus or minus non-recurring items but before depreciation and amortization in excess of $650,000 | 14.75% | ||||||
Deerfield Beach Florida [Member] | |||||||
Management fee revenue | $ 442,000 | 500,000 | |||||
Franchise Program: | |||||||
Royalty revenue | 606,000 | ||||||
Deerfield Beach Florida [Member] | Service Agreements [Member] | |||||||
Payments to acquire management rights | $ 500,000 | ||||||
Remaining balance of management agreement | $ 0 | $ 13,000 | |||||
Amortization period of management agreement | 10 years | ||||||
Atlanta Georgia [Member] | |||||||
Franchise Program: | |||||||
Royalties, gross sales | 10.00% |
COMMITMENTS, CONTINGENCIES AN49
COMMITMENTS, CONTINGENCIES AND OTHER MATTERS (Schedule of Future Minimum Rental Payments) (Details) | Oct. 01, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,017 | $ 2,907,000 |
2,018 | 2,445,000 |
2,019 | 2,359,000 |
2,020 | 1,777,000 |
2,021 | 950,000 |
Thereafter | 1,067,000 |
Total | $ 11,505,000 |
COMMITMENTS, CONTINGENCIES AN50
COMMITMENTS, CONTINGENCIES AND OTHER MATTERS (Schedule of Rent Expense) (Details) - USD ($) | 12 Months Ended | |
Oct. 01, 2016 | Oct. 03, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Minimum Base Rent | $ 2,694,000 | $ 2,636,000 |
Contingent Percentage Rent | 812,000 | 750,000 |
Rent expense | $ 3,506,000 | $ 3,386,000 |
FAIR VALUE MEASUREMENTS OF FI51
FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS (Details) | 12 Months Ended |
Oct. 01, 2016USD ($)item | |
Derivative [Line Items] | |
Number of variable rate debt instruments | item | 3 |
Derivative, Number of Instruments Held | item | 3 |
Mortgage Loan Swap [Member] | |
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 [Member] | |
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 |
$1.405M Term Loan Swap [Member] | |
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 |
COMMON STOCK (Details)
COMMON STOCK (Details) | 12 Months Ended |
Oct. 01, 2016$ / sharesshares | |
Stockholders' Equity Note [Abstract] | |
Number of remaining shares authorized | shares | 65,414 |
Maximum share price | $ / shares | $ 15 |
BUSINESS SEGMENTS (Details)
BUSINESS SEGMENTS (Details) | 3 Months Ended | 12 Months Ended | ||||||||
Oct. 01, 2016USD ($) | Jul. 02, 2016USD ($) | Apr. 02, 2016USD ($) | Jan. 02, 2016USD ($) | Oct. 03, 2015USD ($) | Jun. 27, 2015USD ($) | Mar. 28, 2015USD ($) | Dec. 27, 2014USD ($) | Oct. 01, 2016USD ($)item | Oct. 03, 2015USD ($) | |
Segment Reporting Information [Line Items] | ||||||||||
Number of Reportable Segments | item | 2 | |||||||||
Operating Revenues: | ||||||||||
Operating revenues | $ 24,983,000 | $ 26,383,000 | $ 26,974,000 | $ 25,278,000 | $ 25,111,000 | $ 24,796,000 | $ 25,894,000 | $ 23,320,000 | $ 103,618,000 | $ 99,121,000 |
Income from Operations | 1,061,000 | 2,411,000 | 1,978,000 | 1,351,000 | 1,775,000 | 1,947,000 | 2,357,000 | 1,322,000 | 6,801,000 | 7,401,000 |
Interest expense | (557,000) | (610,000) | ||||||||
Interest and other income | 92,000 | 102,000 | ||||||||
Income before provision for income taxes | 6,336,000 | 6,893,000 | ||||||||
Provision for Income Taxes | (1,367,000) | (1,654,000) | ||||||||
Net Income | 4,969,000 | 5,239,000 | ||||||||
Net income Attributable to Noncontrolling Interests | (1,929,000) | (1,778,000) | ||||||||
Net Income Attributable to Flanigan's Enterprises, Inc. Stockholders | 395,000 | $ 1,147,000 | $ 874,000 | $ 624,000 | 788,000 | $ 842,000 | $ 1,124,000 | $ 707,000 | 3,040,000 | 3,461,000 |
Identifiable Assets: | ||||||||||
Assets | 56,564,000 | 54,622,000 | 56,564,000 | 54,622,000 | ||||||
Capital Expenditures: | ||||||||||
Capital expenditures | 3,424,000 | 4,128,000 | ||||||||
Depreciation and Amortization: | ||||||||||
Depreciation and Amortization | 2,685,000 | 2,673,000 | ||||||||
Operating Segments [Member] | ||||||||||
Operating Revenues: | ||||||||||
Income from Operations | 10,321,000 | 9,639,000 | ||||||||
Identifiable Assets: | ||||||||||
Assets | 33,188,000 | 33,871,000 | 33,188,000 | 33,871,000 | ||||||
Capital Expenditures: | ||||||||||
Capital expenditures | 1,681,000 | 3,699,000 | ||||||||
Depreciation and Amortization: | ||||||||||
Depreciation and Amortization | 2,269,000 | 2,180,000 | ||||||||
Operating Segments [Member] | Package stores [Member] | ||||||||||
Operating Revenues: | ||||||||||
Operating revenues | 15,661,000 | 15,166,000 | ||||||||
Income from Operations | 853,000 | 1,015,000 | ||||||||
Identifiable Assets: | ||||||||||
Assets | 4,727,000 | 4,393,000 | 4,727,000 | 4,393,000 | ||||||
Capital Expenditures: | ||||||||||
Capital expenditures | 328,000 | 246,000 | ||||||||
Depreciation and Amortization: | ||||||||||
Depreciation and Amortization | 205,000 | 205,000 | ||||||||
Operating Segments [Member] | Restaurants [Member] | ||||||||||
Operating Revenues: | ||||||||||
Operating revenues | 85,446,000 | 81,502,000 | ||||||||
Income from Operations | 9,468,000 | 8,624,000 | ||||||||
Identifiable Assets: | ||||||||||
Assets | 28,461,000 | 29,478,000 | 28,461,000 | 29,478,000 | ||||||
Capital Expenditures: | ||||||||||
Capital expenditures | 1,353,000 | 3,453,000 | ||||||||
Depreciation and Amortization: | ||||||||||
Depreciation and Amortization | 2,064,000 | 1,975,000 | ||||||||
Corporate, Non-Segment [Member] | ||||||||||
Operating Revenues: | ||||||||||
Operating revenues | 2,511,000 | 2,453,000 | ||||||||
Income from Operations | (3,520,000) | (2,238,000) | ||||||||
Identifiable Assets: | ||||||||||
Assets | $ 23,376,000 | $ 20,751,000 | 23,376,000 | 20,751,000 | ||||||
Capital Expenditures: | ||||||||||
Capital expenditures | 1,743,000 | 429,000 | ||||||||
Depreciation and Amortization: | ||||||||||
Depreciation and Amortization | $ 416,000 | $ 493,000 |
QUARTERLY INFORMATION (UNAUDI54
QUARTERLY INFORMATION (UNAUDITED) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Jan. 02, 2016 | Oct. 03, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 27, 2014 | Oct. 01, 2016 | Oct. 03, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||
Revenues | $ 24,983,000 | $ 26,383,000 | $ 26,974,000 | $ 25,278,000 | $ 25,111,000 | $ 24,796,000 | $ 25,894,000 | $ 23,320,000 | $ 103,618,000 | $ 99,121,000 |
Income from operations | 1,061,000 | 2,411,000 | 1,978,000 | 1,351,000 | 1,775,000 | 1,947,000 | 2,357,000 | 1,322,000 | 6,801,000 | 7,401,000 |
Net income attributable to stockholders | $ 395,000 | $ 1,147,000 | $ 874,000 | $ 624,000 | $ 788,000 | $ 842,000 | $ 1,124,000 | $ 707,000 | $ 3,040,000 | $ 3,461,000 |
Net income per share - basic and diluted | $ 0.21 | $ 0.62 | $ 0.47 | $ 0.34 | $ 0.43 | $ 0.45 | $ 0.60 | $ 0.38 | $ 1.64 | $ 1.86 |
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 | 1,858,647 | 1,858,647 | 1,858,647 |
401(k) PLAN (Details)
401(k) PLAN (Details) - USD ($) | 12 Months Ended | |
Oct. 01, 2016 | Oct. 03, 2015 | |
Compensation and Retirement Disclosure [Abstract] | ||
Discretionary contributions to 401(k) | $ 43,000 | $ 35,000 |