Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Dec. 28, 2014 | Feb. 06, 2015 | |
Entity Registrant Name | NATHANS FAMOUS INC | |
Entity Central Index Key | 69733 | |
Current Fiscal Year End Date | -26 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 4,496,704 | |
Document Type | 10-Q | |
Document Period End Date | 28-Dec-14 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | FALSE |
Consolidated_Balance_Sheets_Cu
Consolidated Balance Sheets (Current Period Unaudited) (USD $) | Dec. 28, 2014 | Mar. 30, 2014 |
CURRENT ASSETS | ||
Cash and cash equivalents | $34,537,000 | $22,077,000 |
Marketable securities | 6,819,000 | 11,187,000 |
Accounts and other receivables, net | 10,405,000 | 7,823,000 |
Inventories | 792,000 | 947,000 |
Prepaid expenses and other current assets | 1,630,000 | 3,129,000 |
Deferred income taxes | 26,000 | 26,000 |
Total current assets | 54,209,000 | 45,189,000 |
Property and equipment, net of accumulated depreciation of $8,540 and $7,554, respectively | 8,680,000 | 8,970,000 |
Goodwill | 95,000 | 95,000 |
Intangible asset | 1,353,000 | 1,353,000 |
Other assets | 855,000 | 528,000 |
65,192,000 | 56,135,000 | |
CURRENT LIABILITIES | ||
Accounts payable | 5,303,000 | 4,826,000 |
Accrued expenses and other current liabilities | 4,102,000 | 4,751,000 |
Total current liabilities | 9,718,000 | 9,811,000 |
Other liabilities | 1,569,000 | 1,693,000 |
Deferred income taxes | 754,000 | 734,000 |
Total liabilities | 12,041,000 | 12,238,000 |
COMMITMENTS AND CONTINGENCIES (Note M) | 0 | |
STOCKHOLDERS’ EQUITY | ||
Common stock, $.01 par value; 30,000,000 shares authorized; 9,144,391 and 9,092,183 shares issued; and 4,496,704 and 4,482,157 shares outstanding at December 28, 2014 and March 30, 2014, respectively | 91,000 | 91,000 |
Additional paid-in capital | 58,665,000 | 57,578,000 |
Retained earnings | 51,129,000 | 40,963,000 |
Accumulated other comprehensive income | 66,000 | 149,000 |
109,951,000 | 98,781,000 | |
Treasury stock, at cost, 4,647,687 and 4,610,026 shares at December 28, 2014 and March 30, 2014, respectively | -56,800,000 | -54,884,000 |
Total stockholders’ equity | 53,151,000 | 43,897,000 |
65,192,000 | 56,135,000 | |
Deferred Franchise Fees [Member] | ||
CURRENT LIABILITIES | ||
Deferred franchise fees | $313,000 | $234,000 |
Consolidated_Balance_Sheets_Cu1
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) (USD $) | Dec. 28, 2014 | Mar. 30, 2014 |
Accumulated depreciation | $8,540 | $7,554 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized (in shares) | 30,000,000 | 30,000,000 |
Common stock, shares issued (in shares) | 9,144,391 | 9,092,183 |
Common stock, shares outstanding (in shares) | 4,496,704 | 4,482,157 |
Treasury stock, shares (in shares) | 4,467,687 | 4,610,026 |
Consolidated_Statements_of_Ear
Consolidated Statements of Earnings (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
Dec. 28, 2014 | Dec. 29, 2013 | Dec. 28, 2014 | Dec. 29, 2013 | |
REVENUES | ||||
Sales | $17,298,000 | $15,236,000 | $60,647,000 | $52,003,000 |
License royalties | 3,546,000 | 1,817,000 | 13,652,000 | 6,211,000 |
Franchise fees and royalties | 1,471,000 | 1,394,000 | 4,473,000 | 4,279,000 |
Interest income | 21,000 | 68,000 | 137,000 | 246,000 |
Insurance gain (Note N) | 0 | 0 | 0 | 2,801,000 |
Other income | 17,000 | 18,000 | 65,000 | 56,000 |
Total revenues | 22,353,000 | 18,533,000 | 78,974,000 | 65,596,000 |
COSTS AND EXPENSES | ||||
Cost of sales | 14,704,000 | 12,779,000 | 49,097,000 | 41,558,000 |
Restaurant operating expenses | 788,000 | 741,000 | 3,138,000 | 2,432,000 |
Depreciation and amortization | 298,000 | 306,000 | 985,000 | 845,000 |
General and administrative expenses | 2,760,000 | 2,898,000 | 8,561,000 | 8,519,000 |
Interest expense | 0 | 0 | 0 | 135,000 |
Impairment charge – long-term investment | 0 | 0 | 0 | 400,000 |
Total costs and expenses | 18,550,000 | 16,724,000 | 61,781,000 | 53,889,000 |
Earnings before provision for income taxes | 3,803,000 | 1,809,000 | 17,193,000 | 11,707,000 |
Provision for income taxes | 1,562,000 | 702,000 | 7,027,000 | 4,598,000 |
Net income | $2,241,000 | $1,107,000 | $10,166,000 | $7,109,000 |
Income per share: | ||||
Basic (in dollars per share) | $0.50 | $0.25 | $2.27 | $1.60 |
Diluted (in dollars per share) | $0.49 | $0.24 | $2.21 | $1.54 |
Weighted average shares used in computing income per share: | ||||
Basic (in shares) | 4,482,000 | 4,466,000 | 4,475,000 | 4,447,000 |
Diluted (in shares) | 4,603,000 | 4,622,000 | 4,596,000 | 4,609,000 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
Dec. 28, 2014 | Dec. 29, 2013 | Dec. 28, 2014 | Dec. 29, 2013 | |
Net income | $2,241,000 | $1,107,000 | $10,166,000 | $7,109,000 |
Other comprehensive loss, net of deferred income taxes: | ||||
Unrealized losses on available for sale securities | -19,000 | -33,000 | -83,000 | -140,000 |
Other comprehensive loss | -19,000 | -33,000 | -83,000 | -140,000 |
Comprehensive income | $2,222,000 | $1,074,000 | $10,083,000 | $6,969,000 |
Consolidated_Statement_of_Stoc
Consolidated Statement of Stockholders' Equity (Unaudited) (USD $) | Total | Accumulated Other Comprehensive Income (Loss) [Member] | Additional Paid-in Capital [Member] | Common Stock [Member] | Retained Earnings [Member] | Treasury Stock [Member] |
Balance, March 30, 2014 at Mar. 30, 2014 | $43,897,000 | $149,000 | $57,578,000 | $91,000 | $40,963,000 | ($54,884,000) |
Balance, March 30, 2014 (in shares) at Mar. 30, 2014 | 9,092,183 | 4,610,026 | ||||
Shares issued in connection with share- based compensation plans (in shares) | 52,208 | |||||
Shares issued in connection with share- based compensation plans | 222,000 | 222,000 | ||||
Withholding tax on net share settlement of share-based compensation plans | -825,000 | -825,000 | ||||
Income tax benefit on stock option exercises | 1,061,000 | 1,061,000 | ||||
Share-based compensation | 629,000 | 629,000 | ||||
Repurchase of common stock (in shares) | 37,661 | 37,661 | ||||
Repurchase of common stock | -1,916,000 | -1,916,000 | ||||
Unrealized loss on available for sale securities, net of deferred income tax benefit of $56 | -83,000 | -83,000 | ||||
Net income | 10,166,000 | 10,166,000 | ||||
Balance, December 28, 2014 at Dec. 28, 2014 | $53,151,000 | $66,000 | $58,665,000 | $91,000 | $51,129,000 | ($56,800,000) |
Balance, December 28, 2014 (in shares) at Dec. 28, 2014 | 9,144,391 | 4,647,687 |
Consolidated_Statement_of_Stoc1
Consolidated Statement of Stockholders' Equity (Unaudited) (Parentheticals) (USD $) | 9 Months Ended |
Dec. 28, 2014 | |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | ($56,000) |
Accumulated Other Comprehensive Income (Loss) [Member] | |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | ($56,000) |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
Dec. 28, 2014 | Dec. 29, 2013 | |
Cash flows from operating activities: | ||
Net income | $10,166,000 | $7,109,000 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities | ||
Insurance gain | 0 | -2,801,000 |
Impairment charge – long-term investment | 0 | 400,000 |
Depreciation and amortization | 985,000 | 845,000 |
Amortization of bond premium | 129,000 | 107,000 |
Share-based compensation expense | 629,000 | 530,000 |
Provision for doubtful accounts | 7,000 | 9,000 |
Deferred income taxes | 77,000 | 1,194,000 |
Changes in operating assets and liabilities: | ||
Accounts and other receivables, net | -3,307,000 | -2,445,000 |
Insurance proceeds received for business interruption claim | 718,000 | 0 |
Inventories | 155,000 | 57,000 |
Prepaid expenses and other current assets | 1,499,000 | -728,000 |
Other assets | -327,000 | -5,000 |
Accrued litigation | 0 | -5,874,000 |
Accounts payable, accrued expenses and other current liabilities | -172,000 | 224,000 |
Deferred franchise fees | 79,000 | -79,000 |
Other liabilities | -124,000 | -1,000 |
Net cash provided by (used in) operating activities | 10,514,000 | -1,458,000 |
Cash flows from investing activities: | ||
Proceeds from maturities of available for sale securities | 6,620,000 | 2,890,000 |
Insurance proceeds received for property and equipment | 0 | 2,711,000 |
Purchase of available for sale securities | -2,521,000 | -2,219,000 |
Purchase of property and equipment | -695,000 | -4,229,000 |
Litigation settlement | 0 | 6,009,000 |
Change in restricted cash | 0 | -135,000 |
Net cash provided by investing activities | 3,404,000 | 5,027,000 |
Cash flows from financing activities: | ||
Income tax benefit on stock option exercises | 1,061,000 | 1,658,000 |
Proceeds from exercise of stock options | 222,000 | 525,000 |
Payments of withholding tax on net share settlement of share-based compensation plans | -825,000 | -772,000 |
Repurchase of common stock | -1,916,000 | -262,000 |
Net cash (used in) provided by financing activities | -1,458,000 | 1,149,000 |
Net increase in cash and cash equivalents | 12,460,000 | 4,718,000 |
Cash and cash equivalents, beginning of period | 22,077,000 | 13,403,000 |
Cash and cash equivalents, end of period | 34,537,000 | 18,121,000 |
Cash paid during the year for: | ||
Interest | 0 | 1,099,000 |
Income taxes | $4,404,000 | $2,542,000 |
Note_A_Basis_of_Presentation
Note A - Basis of Presentation | 9 Months Ended |
Dec. 28, 2014 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | (Unaudited) |
NOTE A - BASIS OF PRESENTATION | |
The accompanying consolidated financial statements of Nathan's Famous, Inc. and subsidiaries (collectively “Nathan’s,” the “Company,” “we,” “us” or “our”) as of and for the thirteen and thirty-nine week periods ended December 28, 2014 and December 29, 2013 have been prepared in accordance with accounting principles generally accepted in the United States of America. The unaudited financial statements include all adjustments (consisting of normal recurring adjustments) which, in the opinion of management, are necessary for a fair presentation of financial condition, results of operations and cash flows for the periods presented. However, our results of operations are seasonal in nature, and the results of any interim period are not necessarily indicative of results for any other interim period or the full fiscal year. | |
Certain information and footnote disclosures normally included in financial statements in accordance with accounting principles generally accepted in the United States of America have been omitted pursuant to the requirements of the Securities and Exchange Commission. Management believes that the disclosures included in the accompanying consolidated interim financial statements and footnotes are adequate to make the information not misleading, but should be read in conjunction with the consolidated financial statements and notes thereto included in Nathan’s Annual Report on Form 10-K for the fiscal year ended March 30, 2014. | |
A summary of the Company’s significant accounting policies is identified in Note B of the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 30, 2014. There have been no changes to the Company’s significant accounting policies subsequent to March 30, 2014. |
Note_B_Recently_Issued_Account
Note B - Recently Issued Accounting Pronouncements Not Yet Adopted | 9 Months Ended |
Dec. 28, 2014 | |
Notes to Financial Statements | |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | NOTE B – RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED |
In April 2014, the Financial Accounting Standards Board (“FASB”) issued new accounting guidance changing the criteria for reporting discontinued operations. The revised definition of a discontinued operation includes those components of an entity or a group of components of an entity representing a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. The guidance eliminates the current requirement to assess continuing cash flow and continuing involvement with the disposal group. The revised definition also includes a business or nonprofit activity that, on acquisition, meets the criteria to be classified as held for sale. A disposal meeting the new definition is required to be reported as discontinued operations when the component of an entity or group of components of an entity meets the held for sale criteria, is actually disposed of by sales, or is disposed of through means other than a sale. The guidance is effective for Nathan’s for annual periods beginning on or after December 15, 2014 and interim periods within those years, which for Nathan’s will be the first quarter of fiscal 2016 beginning on March 30, 2015. Early adoption is permitted for disposals that have not been previously reported in the financial statements. Nathan’s does not expect the adoption of this new guidance to have a material impact on its results of operations or financial position. | |
In May 2014, the FASB issued a new accounting standard that attempts to establish a uniform basis for recording revenue to virtually all industries’ financial statements, under U.S. GAAP. The revenue standard’s core principle is built on the contract between a vendor and a customer for the provision of goods and services. It attempts to depict the exchange of rights and obligations between the parties in the pattern of revenue recognition based on the consideration to which the vendor is entitled. | |
In order to accomplish this objective, companies must evaluate the following five basic steps: (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation. There are three basic transition methods that are available – full retrospective, retrospective with certain practical expedients, and a cumulative effect approach. Under the third alternative, an entity would apply the new revenue standard only to contracts that are incomplete under legacy U.S. GAAP at the date of initial application and recognize the cumulative effect of the new standard as an adjustment to the opening balance of retained earnings. Prior years would not be restated and additional disclosures would be required to enable users of the financial statements to understand the impact of adopting the new standard in the current year compared to prior years that are presented under legacy U.S. GAAP. Early adoption is prohibited under U.S. GAAP. Public companies must apply the new standard for annual periods beginning after December 15, 2016, including interim periods therein, which for Nathan’s will be its first quarter of fiscal 2018, beginning on March 27, 2017. The Company expects to use the modified retrospective method, recognizing a cumulative effect adjustment to retained earnings when adopted, and is currently evaluating the impact of this new accounting standard on its consolidated financial position and results of operations. | |
In August 2014, the FASB issued new guidance that requires management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. If such conditions exist, management will be required to include disclosures enabling users to understand those conditions and management’s plans to alleviate or mitigate those conditions. This new standard is effective for annual periods ending after December 15, 2016 and interim periods within annual periods beginning after December 16, 2016. This standard will take effect in Nathan’s fourth quarter of our fiscal year ending March 26, 2017. | |
In January 2015, the FASB issued new guidance to simplify the income statement presentation requirements by eliminating the seldom-used concept of extraordinary items. Extraordinary items are events and transactions that are distinguished by their unusual nature and by the infrequency of their occurrence. Eliminating the extraordinary classification simplifies the income statement presentation by no longer segregating such extraordinary items from the ordinary results of operations and separately stating the amount, net of tax along with the effect on earnings per share. This new standard is effective for annual periods beginning after December 15, 2015, including interim periods therein, which for Nathan’s would be its first quarter of fiscal 2017 beginning March 28, 2016. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. Nathan’s expects to early adopt this standard in the first quarter of our fiscal year ending March 28, 2016 that begins on March 30, 2015. Nathan’s does not expect the adoption of this new guidance to have a material impact on its results of operations or financial position. |
Note_C_Income_Per_Share
Note C - Income Per Share | 9 Months Ended | ||||||||||||||||||||||||
Dec. 28, 2014 | |||||||||||||||||||||||||
Notes to Financial Statements | |||||||||||||||||||||||||
Earnings Per Share [Text Block] | NOTE C – INCOME PER SHARE | ||||||||||||||||||||||||
Basic income per common share is calculated by dividing income by the weighted-average number of common shares outstanding and excludes any dilutive effect of stock options. Diluted income per common share gives effect to all potentially dilutive common shares that were outstanding during the period. Dilutive common shares used in the computation of diluted income per common share result from the assumed exercise of stock options and warrants, as determined using the treasury stock method. | |||||||||||||||||||||||||
The following chart provides a reconciliation of information used in calculating the per-share amounts for the thirteen and thirty-nine week periods ended December 28, 2014 and December 29, 2013, respectively. | |||||||||||||||||||||||||
Thirteen weeks | |||||||||||||||||||||||||
Net Income | |||||||||||||||||||||||||
Net Income | Number of Shares | Per Share | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||||
Basic EPS | |||||||||||||||||||||||||
Basic calculation | $ | 2,241 | $ | 1,107 | 4,482 | 4,466 | $ | 0.5 | $ | 0.25 | |||||||||||||||
Effect of dilutive employee stock | - | - | 121 | 156 | (0.01 | ) | (0.01 | ) | |||||||||||||||||
options | |||||||||||||||||||||||||
Diluted EPS | |||||||||||||||||||||||||
Diluted calculation | $ | 2,241 | $ | 1,107 | 4,603 | 4,622 | $ | 0.49 | $ | 0.24 | |||||||||||||||
Thirty-nine | |||||||||||||||||||||||||
weeks | |||||||||||||||||||||||||
Net Income | |||||||||||||||||||||||||
Net Income | Number of Shares | Per Share | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||||
Basic EPS | |||||||||||||||||||||||||
Basic calculation | $ | 10,166 | $ | 7,109 | 4,475 | 4,447 | $ | 2.27 | $ | 1.6 | |||||||||||||||
Effect of dilutive employee stock | - | - | 121 | 162 | (0.06 | ) | (0.06 | ) | |||||||||||||||||
options | |||||||||||||||||||||||||
Diluted EPS | |||||||||||||||||||||||||
Diluted calculation | $ | 10,166 | $ | 7,109 | 4,596 | 4,609 | $ | 2.21 | $ | 1.54 | |||||||||||||||
No options to purchase shares of common stock for the thirteen or thirty-nine week periods ended December 28, 2014 and December 29, 2013 were excluded from the computation of diluted earnings per share. |
Note_D_Fair_Value_Measurements
Note D - Fair Value Measurements | 9 Months Ended | ||||||||||||||||
Dec. 28, 2014 | |||||||||||||||||
Notes to Financial Statements | |||||||||||||||||
Fair Value Disclosures [Text Block] | NOTE D – FAIR VALUE MEASUREMENTS | ||||||||||||||||
Nathan’s follows a three-level fair value hierarchy that prioritizes the inputs to measure fair value. This hierarchy requires entities to maximize the use of “observable inputs” and minimize the use of “unobservable inputs.” The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability on the measurement date. The three levels are defined as follows: | |||||||||||||||||
● Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for an identical asset or liability in an active market | |||||||||||||||||
● Level 2 - inputs to the valuation methodology include quoted prices for a similar asset or liability in an active market, quoted prices in markets that are not active, or model-derived valuations in which all significant inputs are observable for substantially the full term of the asset or liability | |||||||||||||||||
● Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value measurement of the asset or liability | |||||||||||||||||
The following table presents assets and liabilities measured at fair value on a recurring basis as of December 28, 2014 and March 30, 2014 based upon the valuation hierarchy (in thousands): | |||||||||||||||||
December | Level 1 | Level 2 | Level 3 | Carrying | |||||||||||||
28 | Value | ||||||||||||||||
, 201 | |||||||||||||||||
4 | |||||||||||||||||
Marketable securities | $ | - | $ | 6,819 | $ | - | $ | 6,819 | |||||||||
Total assets at fair value | $ | - | $ | 6,819 | $ | - | $ | 6,819 | |||||||||
30-Mar-14 | Level 1 | Level 2 | Level 3 | Carrying | |||||||||||||
Value | |||||||||||||||||
Marketable securities | $ | - | $ | 11,187 | $ | - | $ | 11,187 | |||||||||
Total assets at fair value | $ | - | $ | 11,187 | $ | - | $ | 11,187 | |||||||||
Nathan’s marketable securities, which consist primarily of municipal bonds, are not actively traded. The valuation of such bonds is based upon quoted market prices for similar bonds currently trading in an active market or model-derived valuations in which all significant inputs are observable for substantially the full term of the asset or liability. | |||||||||||||||||
The carrying amounts of cash equivalents, accounts receivable and accounts payable approximate fair value due to the short-term maturity of the instruments. | |||||||||||||||||
Certain non-financial assets and liabilities are measured at fair value on a nonrecurring basis; that is, the assets and liabilities are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances, such as when evidence of impairment exists. At December 28, 2014, no fair value adjustment or material fair value measurements were required for non-financial assets or liabilities. |
Note_E_Marketable_Securities
Note E - Marketable Securities | 9 Months Ended | ||||||||||||||||||||
Dec. 28, 2014 | |||||||||||||||||||||
Notes to Financial Statements | |||||||||||||||||||||
Marketable Securities Disclosure [Text Block] | NOTE E – MARKETABLE SECURITIES | ||||||||||||||||||||
The Company determines the appropriate classification of securities at the time of purchase and reassesses the appropriateness of the classification at each reporting date. At December 28, 2014 and March 30, 2014, all marketable securities held by the Company have been classified as available-for-sale and, as a result, are stated at fair value (Note D), with unrealized gains and losses included as a component of accumulated other comprehensive income. Realized gains and losses on the sale of securities are determined on a specific identification basis. Interest income is recorded when it is earned and deemed realizable by the Company. | |||||||||||||||||||||
The cost, gross unrealized gains, gross unrealized losses and fair market value for marketable securities, which consist entirely of municipal bonds that are classified as available-for-sale securities, are as follows (in thousands): | |||||||||||||||||||||
Cost | Gross | Gross | Fair | ||||||||||||||||||
Unrealized | Unrealized | Market | |||||||||||||||||||
Gains | Losses | Value | |||||||||||||||||||
28-Dec-14 | $ | 6,718 | $ | 101 | $ | - | $ | 6,819 | |||||||||||||
30-Mar-14 | $ | 10,947 | $ | 240 | $ | - | $ | 11,187 | |||||||||||||
The municipal bonds held at December 28, 2014, mature at various dates between February 2015 and April 2017. The following represents the bond maturities by period (in thousands): | |||||||||||||||||||||
Fair value of Municipal Bonds | Total | Less than | 1 – 5 Years | 5 – 10 Years | After | ||||||||||||||||
1 Year | 10 Years | ||||||||||||||||||||
28-Dec-14 | $ | 6,819 | $ | 4,463 | $ | 2,356 | $ | - | $ | - | |||||||||||
The net unrealized losses on available-for-sale securities for the thirteen-week periods ended December 28, 2014 and December 29, 2013 of $19,000 and $33,000, respectively, net of deferred income tax benefit, of $12,000 and $21,000, respectively, have been included as a component of comprehensive income. The net unrealized losses on available-for-sale securities for the thirty-nine week periods ended December 28, 2014 and December 29, 2013 of $83,000 and $140,000, respectively, net of deferred income tax benefit, of $56,000 and $92,000, respectively, have been included as a component of comprehensive income. Accumulated other comprehensive income is comprised entirely of the net unrealized gains on available-for-sale securities as of December 28, 2014 and March 30, 2014. |
Note_F_Accounts_and_Other_Rece
Note F - Accounts and Other Receivables, Net | 9 Months Ended | ||||||||
Dec. 28, 2014 | |||||||||
Notes to Financial Statements | |||||||||
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | NOTE F – ACCOUNTS AND OTHER RECEIVABLES, NET | ||||||||
Accounts and other receivables, net, consist of the following (in thousands): | |||||||||
December 28, | March 30, | ||||||||
2014 | 2014 | ||||||||
Branded product sales | $ | 6,821 | $ | 5,141 | |||||
Franchise and license royalties | 2,153 | 1,658 | |||||||
Other | 1,857 | 1,457 | |||||||
10,831 | 8,256 | ||||||||
Less: allowance for doubtful accounts | 426 | 433 | |||||||
Accounts and other receivables, net | $ | 10,405 | $ | 7,823 | |||||
Accounts receivable are due within 30 days and are stated at amounts due from Branded Product Program customers, franchisees, retail licensees and product manufacturers, net of an allowance for doubtful accounts. Accounts that are outstanding longer than the contractual payment terms are considered past due. The Company does not recognize franchise and license royalties that are not deemed to be realizable. The Company individually reviews each past due account and determines its allowance for doubtful accounts by considering a number of factors, including the length of time accounts receivable are past due, the Company’s previous loss history, the customer’s current and expected future ability to pay its obligation to the Company, the condition of the general economy and the industry as a whole. Based on management’s assessment, the Company provides for estimated uncollectable amounts through a charge to earnings. After the Company has used reasonable collection efforts it writes off accounts receivable through a charge to the allowance for doubtful accounts. | |||||||||
Changes in the Company’s allowance for doubtful accounts for the thirty-nine week period ended December 28, 2014 and the fiscal year ended March 30, 2014 are as follows (in thousands): | |||||||||
28-Dec | March 30, | ||||||||
, | 2014 | ||||||||
2014 | |||||||||
Beginning balance | $ | 433 | $ | 130 | |||||
Bad debt expense | 7 | 21 | |||||||
Charges to other accounts | - | 320 | |||||||
Accounts written off | (14 | ) | (38 | ) | |||||
Ending balance | $ | 426 | $ | 433 |
Note_G_Prepaid_Expenses_and_Ot
Note G - Prepaid Expenses and Other Current Assets | 9 Months Ended | ||||||||
Dec. 28, 2014 | |||||||||
Notes to Financial Statements | |||||||||
Other Current Assets [Text Block] | NOTE G – PREPAID EXPENSES AND OTHER CURRENT ASSETS | ||||||||
Prepaid expenses and other current assets consist of the following (in thousands): | |||||||||
28-Dec | March 30, | ||||||||
, | 2014 | ||||||||
2014 | |||||||||
Income taxes | $ | 608 | $ | 2,059 | |||||
Insurance | 619 | 506 | |||||||
Other | 403 | 564 | |||||||
$ | 1,630 | $ | 3,129 |
Note_H_Accrued_Expenses_Other_
Note H - Accrued Expenses, Other Current Liabilities and Other Liabilities | 9 Months Ended | ||||||||
Dec. 28, 2014 | |||||||||
Notes to Financial Statements | |||||||||
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block] | NOTE H – ACCRUED EXPENSES, OTHER CURRENT LIABILITIES AND OTHER LIABILITIES | ||||||||
Accrued expenses and other current liabilities consist of the following (in thousands): | |||||||||
December 28, | March 30, | ||||||||
2014 | 2014 | ||||||||
Payroll and other benefits | $ | 2,101 | $ | 2,433 | |||||
Accrued rebates | 949 | 855 | |||||||
Rent and occupancy costs | 174 | 163 | |||||||
Deferred revenue | 146 | 734 | |||||||
Construction costs | 132 | 281 | |||||||
Unexpended advertising funds | - | 52 | |||||||
Other | 600 | 233 | |||||||
$ | 4,102 | $ | 4,751 | ||||||
Other liabilities consist of the following (in thousands): | |||||||||
December 28, | March 30, | ||||||||
2014 | 2014 | ||||||||
Deferred development fees | $ | 213 | $ | 200 | |||||
Reserve for uncertain tax positions | 666 | 620 | |||||||
Deferred rental liability | 606 | 661 | |||||||
Other | 84 | 212 | |||||||
$ | 1,569 | $ | 1,693 |
Note_I_Sales
Note I - Sales | 9 Months Ended | ||||||||||||||||
Dec. 28, 2014 | |||||||||||||||||
Notes to Financial Statements | |||||||||||||||||
Sales [Text Block] | NOTE I – SALES | ||||||||||||||||
The Company’s sales for the thirteen and thirty-nine weeks ended December 28, 2014 and December 29, 2013 are as follows (in thousands): | |||||||||||||||||
Thirteen weeks ended | Thirty-nine weeks ended | ||||||||||||||||
December 28, | December 29, | December 28, | December 29, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Branded Products | $ | 14,956 | $ | 13,156 | $ | 45,568 | $ | 40,256 | |||||||||
Company-operated restaurants | 2,148 | 1,990 | 14,497 | 11,536 | |||||||||||||
Other | 194 | 90 | 582 | 211 | |||||||||||||
Total sales | $ | 17,298 | $ | 15,236 | $ | 60,647 | $ | 52,003 |
Note_J_Income_Taxes
Note J - Income Taxes | 9 Months Ended |
Dec. 28, 2014 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | NOTE J – INCOME TAXES |
The income tax provisions for the thirty-nine week periods ended December 28, 2014 and December 29, 2013 reflect effective tax rates of 40.9% and 39.3%, respectively, which have been reduced from statutory rates by 0.3% and 0.8%, respectively, for the differing effects of tax-exempt interest income. Nathan’s expects that its federal income tax rate will increase to 35% for the fiscal year ending March 29, 2015. | |
The amount of unrecognized tax benefits at December 28, 2014 was $315,000, all of which would impact Nathan’s effective tax rate, if recognized. As of December 28, 2014, Nathan’s had $362,000 of accrued interest and penalties in connection with unrecognized tax benefits. | |
During the fiscal year ending March 29, 2015, Nathan’s will seek to settle additional uncertain tax positions with the tax authorities. As a result, it is possible the amount of unrecognized tax benefits, excluding the related accrued interest and penalties, could be reduced by up to $64,000, which would favorably impact Nathan’s effective tax rate, although no assurances can be given in this regard. | |
Nathan’s estimates its annual tax rate for the fiscal year ending March 29, 2015 will be in the range of approximately 39.5% to 41.5%. The final annual tax rate is subject to many variables, including the effect of tax-exempt interest earned, among other factors, and therefore cannot be determined until the end of the fiscal year; therefore, the actual tax rate could differ from our current estimates. |
Note_K_Sharebased_Compensation
Note K - Share-based Compensation | 9 Months Ended | ||||||||||||||||
Dec. 28, 2014 | |||||||||||||||||
Notes to Financial Statements | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | NOTE K – SHARE-BASED COMPENSATION | ||||||||||||||||
Total share-based compensation during the thirteen-week periods ended December 28, 2014 and December 29, 2013 was $228,000 and $192,000, respectively. Total share-based compensation during the thirty-nine week periods ended December 28, 2014 and December 29, 2013 was $629,000 and $530,000, respectively. Total share-based compensation is included in general and administrative expense in our accompanying Consolidated Statements of Earnings. As of December 28, 2014, there was $2,044,000 of unamortized compensation expense related to share-based incentive awards. We expect to recognize this expense over approximately one year and four months, which represents the weighted average remaining requisite service periods for such awards. | |||||||||||||||||
During the thirty-nine week period ended December 28, 2014, the Company granted options to purchase 50,000 shares at an exercise price of $53.89 per share, all of which expire five years from the date of grant. All such stock options vest ratably over a four-year period commencing August 6, 2015. | |||||||||||||||||
The weighted-average option fair values, as determined using the Black-Scholes option valuation model, and the assumptions used to estimate these values for stock options granted during the thirty-nine weeks ended December 28, 2014, are as follows: | |||||||||||||||||
Weighted-average option fair values | $ | 11.97 | |||||||||||||||
Expected life (years) | 4.5 | ||||||||||||||||
Interest rate | 1.66 | % | |||||||||||||||
Volatility | 22.77 | % | |||||||||||||||
Dividend yield | 0 | % | |||||||||||||||
The expected dividend yield is based on historical and projected dividend yields. The Company estimates expected volatility based primarily on historical monthly price changes of the Company’s stock equal to the expected life of the option. The risk free interest rate is based on the U.S. Treasury yield in effect at the time of the grant. The expected option term is the number of years the Company estimates the options will be outstanding prior to exercise based on expected employment termination behavior. | |||||||||||||||||
During the thirty-nine weeks ended December 29, 2013, the Company granted 25,000 shares of restricted stock at a fair value of $49.80 per share representing the closing price on the date of grant, which will be fully vested five years from the date of grant. The restrictions on the shares lapse ratably over a five-year period on the annual anniversary of the date of grant. The compensation expense related to this restricted stock award is expected to be $1,245,000 and will be recognized, commencing on the grant date, over five years. | |||||||||||||||||
The Company recognizes compensation cost for unvested stock-based incentive awards on a straight-line basis over the requisite service period. Compensation cost charged to expense under all stock-based incentive awards is as follows (in thousands): | |||||||||||||||||
Thirteen weeks ended | Thirty-nine weeks ended | ||||||||||||||||
December 28, | December 29, | December 28, | December 29, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Stock options | $ | 93 | $ | 56 | $ | 224 | $ | 168 | |||||||||
Restricted stock | 135 | 136 | 405 | 362 | |||||||||||||
Total compensation cost | $ | 228 | $ | 192 | $ | 629 | $ | 530 | |||||||||
Stock options outstanding: | |||||||||||||||||
Transactions with respect to stock options for the thirty-nine weeks ended December 28, 2014 are as follows: | |||||||||||||||||
Weighted- | Weighted- | Aggregate | |||||||||||||||
Average | Average | Intrinsic | |||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Shares | Price | Contractual Life | (In thousands) | ||||||||||||||
Options outstanding at March 30, 2014 | 279,500 | $ | 15.22 | 2.07 | $ | 9,381 | |||||||||||
Granted | 50,000 | $ | 53.89 | - | - | ||||||||||||
Expired | - | - | - | - | |||||||||||||
Exercised | (59,250 | ) | $ | 12.22 | - | - | |||||||||||
Options outstanding at December 28, 2014 | 270,250 | $ | 23.03 | 2.03 | $ | 14,799 | |||||||||||
Options exercisable at December 28, 2014 | 175,875 | $ | 15.59 | 1.45 | $ | 10,940 | |||||||||||
Restricted stock: | |||||||||||||||||
Transactions with respect to restricted stock for the thirty-nine weeks ended December 28, 2014 are as follows: | |||||||||||||||||
Weighted | |||||||||||||||||
- | |||||||||||||||||
Average | |||||||||||||||||
Grant | |||||||||||||||||
- | |||||||||||||||||
date | |||||||||||||||||
Fair value | |||||||||||||||||
Shares | Per share | ||||||||||||||||
Unvested restricted stock at March 30, 2014 | 55,000 | $ | 38.61 | ||||||||||||||
Granted | - | - | |||||||||||||||
Vested | (15,000 | ) | $ | 36.13 | |||||||||||||
Unvested restricted stock at December 28, 2014 | 40,000 | $ | 39.54 |
Note_L_Stockholders_Equity
Note L - Stockholders' Equity | 9 Months Ended |
Dec. 28, 2014 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE L – STOCKHOLDERS’ EQUITY |
During the period from October 2001 through December 28, 2014, Nathan’s purchased 4,647,687 shares of its common stock at a cost of approximately $56,800,000 pursuant to various stock repurchase plans previously authorized by the Board of Directors. During the thirty-nine-week period ended December 28, 2014, we repurchased 37,661 shares of common stock at a cost of $1,916,000. | |
On September 11, 2014, the Company and Mutual Securities, Inc. (“MSI”) amended its existing agreement pursuant to which MSI was authorized on the Company’s behalf to purchase shares of the Company’s common stock, $.01 par value having a value of up to an additional $6,000,000, which purchases could commence on September 24, 2014. The agreement with MSI was adopted under the safe harbor provided by Rule 10b5-1 and Rule 10b-18 of the Securities Exchange Act of 1934, as amended to assist the Company in implementing its previously announced stock purchase plans. | |
As of December 28, 2014, an aggregate of 251,272 shares can still be purchased under Nathan’s existing stock buy-back program. | |
Purchases may be made from time to time, depending on market conditions, in open market or privately-negotiated transactions, at prices deemed appropriate by management. There is no set time limit on the repurchases to be made under these stock-repurchase plans. | |
On June 5, 2013, Nathan’s adopted a new stockholder rights plan (the “2013 Rights Plan”) under which all stockholders of record as of June 17, 2013 received rights to purchase shares of common stock (the “2013 Rights”). | |
The 2013 Rights were distributed as a dividend. Initially, the 2013 Rights will attach to, and trade with, the Company’s common stock. Subject to the terms, conditions and limitations of the 2013 Rights Plan, the 2013 Rights will become exercisable if (among other things) a person or group acquires 15% or more of the Company’s common stock. Upon such an event and payment of the purchase price of $100.00 (the “2013 Right Purchase Price”), each 2013 Right (except those held by the acquiring person or group) will entitle the holder to acquire one share of the Company’s common stock (or the economic equivalent thereof) or, if the then-current market price is less than the then current 2013 Right Purchase Price, a number of shares of the Company’s common stock which at the time of the transaction has a market value equal to the then current 2013 Right Purchase Price at a purchase price per share equal to the then current market price of the Company’s Common Stock. | |
The Company’s Board of Directors may redeem the 2013 Rights prior to the time they are triggered. Upon adoption of the 2013 Rights Plan, the Company initially reserved 10,188,600 shares of common stock for issuance upon exercise of the 2013 Rights. The 2013 Rights will expire on June 17, 2018 unless earlier redeemed or exchanged by the Company. | |
At December 28, 2014, the Company has reserved 6,515,345 shares of common stock for issuance upon exercise of the Common Stock Purchase Rights approved by the Board of Directors on June 5, 2013. |
Note_M_Commitments_and_Conting
Note M - Commitments and Contingencies | 9 Months Ended |
Dec. 28, 2014 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | NOTE M - COMMITMENTS AND CONTINGENCIES |
1. Contingencies | |
The Company and its subsidiaries are from time to time involved in ordinary and routine litigation. Management presently believes that the ultimate outcome of these proceedings, individually or in the aggregate, will not have a material adverse effect on the Company’s financial position, cash flows or results of operations. Nevertheless, litigation is subject to inherent uncertainties and unfavorable rulings could occur. An unfavorable ruling could include money damages and, in such event, could result in a material adverse impact on the Company’s results of operations for the period in which the ruling occurs or is implemented. | |
2. Guaranty | |
On December 1, 2009, a wholly-owned subsidiary of the Company executed a Guaranty of Lease (the “Guaranty”) in connection with its re-franchising of a restaurant located in West Nyack, New York. The Guaranty could be called upon in the event of a default by the tenant/franchisee. The Guaranty extends through the fifth Lease Year, as defined in the lease, and shall not exceed an amount equal to the highest amount of the annual minimum rent, percentage rent and any additional rent payable pursuant to the lease and reasonable attorney’s fees and other costs. We have recorded a liability of approximately $76,000 in connection with the Guaranty, which does not include potential real estate tax increases and attorney’s fees and other costs as these amounts are not reasonably determinable at this time. In connection with Nathan’s franchise agreement, Nathan’s has received a personal guaranty from the franchisee for all obligations under the Guaranty. To date, Nathan’s has not been required to make any payments pursuant to the Guaranty. |
Note_N_Superstorm_Sandy
Note N - Superstorm Sandy | 9 Months Ended |
Dec. 28, 2014 | |
Notes to Financial Statements | |
Extraordinary Items Disclosure [Text Block] | NOTE N – SUPERSTORM SANDY |
On October 29, 2012, Superstorm Sandy struck the Northeastern United States, which forced the closing of all of the Company-owned restaurants. Seventy-eight franchised restaurants, including 18 Branded Menu locations, were closed for varying periods of time, one of which remains closed. Our Company-owned restaurant in Oceanside, New York was closed for approximately two weeks. The Coney Island Boardwalk restaurant sustained minor damage and re-opened on March 18, 2013. The Coney Island restaurant incurred significant damage and re-opened on May 20, 2013. As a result of these damages, the Company incurred actual losses during the fiscal year ended March 31, 2013, of approximately $1,340,000, inclusive of amounts written off of $449,000 related to destroyed or damaged property and equipment and $42,000 of unsalable inventories. | |
The Company settled the property damage claim with its insurers and received payments of approximately $3,400,000, net of fees, from our insurer and used these proceeds towards the rebuilding of the restaurant. In connection with the settlement of the property and casualty loss, the Company recognized a gain of approximately $2,801,000 during the quarter ended June 30, 2013. | |
In April 2014, the Company settled its claim for reimbursable on-going business expenses while the restaurant was closed of approximately $718,000, net of fees, that was included in accounts and other receivables in the accompanying balance sheet as of March 30, 2014. |
Note_O_Reclassifications
Note O - Reclassifications | 9 Months Ended |
Dec. 28, 2014 | |
Notes to Financial Statements | |
Reclassifications [Text Block] | NOTE O - RECLASSIFICATIONS |
The Company has revised the presentation of certain license royalties of $9,000 and $31,000 during the thirteen and thirty-nine week periods ended December 29, 2013 to franchise royalties in the consolidated statements of earnings to conform to the current period presentation. There was no impact on total revenues, earnings before provision for income taxes and net income as a result of these reclassifications. |
Note_C_Income_Per_Share_Tables
Note C - Income Per Share (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Dec. 28, 2014 | |||||||||||||||||||||||||
Notes Tables | |||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Thirteen weeks | ||||||||||||||||||||||||
Net Income | |||||||||||||||||||||||||
Net Income | Number of Shares | Per Share | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||||
Basic EPS | |||||||||||||||||||||||||
Basic calculation | $ | 2,241 | $ | 1,107 | 4,482 | 4,466 | $ | 0.5 | $ | 0.25 | |||||||||||||||
Effect of dilutive employee stock | - | - | 121 | 156 | (0.01 | ) | (0.01 | ) | |||||||||||||||||
options | |||||||||||||||||||||||||
Diluted EPS | |||||||||||||||||||||||||
Diluted calculation | $ | 2,241 | $ | 1,107 | 4,603 | 4,622 | $ | 0.49 | $ | 0.24 | |||||||||||||||
Thirty-nine | |||||||||||||||||||||||||
weeks | |||||||||||||||||||||||||
Net Income | |||||||||||||||||||||||||
Net Income | Number of Shares | Per Share | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||||
Basic EPS | |||||||||||||||||||||||||
Basic calculation | $ | 10,166 | $ | 7,109 | 4,475 | 4,447 | $ | 2.27 | $ | 1.6 | |||||||||||||||
Effect of dilutive employee stock | - | - | 121 | 162 | (0.06 | ) | (0.06 | ) | |||||||||||||||||
options | |||||||||||||||||||||||||
Diluted EPS | |||||||||||||||||||||||||
Diluted calculation | $ | 10,166 | $ | 7,109 | 4,596 | 4,609 | $ | 2.21 | $ | 1.54 |
Note_D_Fair_Value_Measurements1
Note D - Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||
Dec. 28, 2014 | |||||||||||||||||
Notes Tables | |||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | December | Level 1 | Level 2 | Level 3 | Carrying | ||||||||||||
28 | Value | ||||||||||||||||
, 201 | |||||||||||||||||
4 | |||||||||||||||||
Marketable securities | $ | - | $ | 6,819 | $ | - | $ | 6,819 | |||||||||
Total assets at fair value | $ | - | $ | 6,819 | $ | - | $ | 6,819 | |||||||||
30-Mar-14 | Level 1 | Level 2 | Level 3 | Carrying | |||||||||||||
Value | |||||||||||||||||
Marketable securities | $ | - | $ | 11,187 | $ | - | $ | 11,187 | |||||||||
Total assets at fair value | $ | - | $ | 11,187 | $ | - | $ | 11,187 |
Note_E_Marketable_Securities_T
Note E - Marketable Securities (Tables) | 9 Months Ended | ||||||||||||||||||||
Dec. 28, 2014 | |||||||||||||||||||||
Notes Tables | |||||||||||||||||||||
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | Cost | Gross | Gross | Fair | |||||||||||||||||
Unrealized | Unrealized | Market | |||||||||||||||||||
Gains | Losses | Value | |||||||||||||||||||
28-Dec-14 | $ | 6,718 | $ | 101 | $ | - | $ | 6,819 | |||||||||||||
30-Mar-14 | $ | 10,947 | $ | 240 | $ | - | $ | 11,187 | |||||||||||||
Investments Classified by Contractual Maturity Date [Table Text Block] | Fair value of Municipal Bonds | Total | Less than | 1 – 5 Years | 5 – 10 Years | After | |||||||||||||||
1 Year | 10 Years | ||||||||||||||||||||
28-Dec-14 | $ | 6,819 | $ | 4,463 | $ | 2,356 | $ | - | $ | - |
Note_F_Accounts_and_Other_Rece1
Note F - Accounts and Other Receivables, Net (Tables) | 9 Months Ended | ||||||||
Dec. 28, 2014 | |||||||||
Notes Tables | |||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | December 28, | March 30, | |||||||
2014 | 2014 | ||||||||
Branded product sales | $ | 6,821 | $ | 5,141 | |||||
Franchise and license royalties | 2,153 | 1,658 | |||||||
Other | 1,857 | 1,457 | |||||||
10,831 | 8,256 | ||||||||
Less: allowance for doubtful accounts | 426 | 433 | |||||||
Accounts and other receivables, net | $ | 10,405 | $ | 7,823 | |||||
Schedule of Credit Losses for Financing Receivables, Current [Table Text Block] | 28-Dec | March 30, | |||||||
, | 2014 | ||||||||
2014 | |||||||||
Beginning balance | $ | 433 | $ | 130 | |||||
Bad debt expense | 7 | 21 | |||||||
Charges to other accounts | - | 320 | |||||||
Accounts written off | (14 | ) | (38 | ) | |||||
Ending balance | $ | 426 | $ | 433 |
Note_G_Prepaid_Expenses_and_Ot1
Note G - Prepaid Expenses and Other Current Assets (Tables) | 9 Months Ended | ||||||||
Dec. 28, 2014 | |||||||||
Notes Tables | |||||||||
Schedule of Other Current Assets [Table Text Block] | 28-Dec | March 30, | |||||||
, | 2014 | ||||||||
2014 | |||||||||
Income taxes | $ | 608 | $ | 2,059 | |||||
Insurance | 619 | 506 | |||||||
Other | 403 | 564 | |||||||
$ | 1,630 | $ | 3,129 |
Note_H_Accrued_Expenses_Other_1
Note H - Accrued Expenses, Other Current Liabilities and Other Liabilities (Tables) | 9 Months Ended | ||||||||
Dec. 28, 2014 | |||||||||
Notes Tables | |||||||||
Schedule of Accrued Liabilities [Table Text Block] | December 28, | March 30, | |||||||
2014 | 2014 | ||||||||
Payroll and other benefits | $ | 2,101 | $ | 2,433 | |||||
Accrued rebates | 949 | 855 | |||||||
Rent and occupancy costs | 174 | 163 | |||||||
Deferred revenue | 146 | 734 | |||||||
Construction costs | 132 | 281 | |||||||
Unexpended advertising funds | - | 52 | |||||||
Other | 600 | 233 | |||||||
$ | 4,102 | $ | 4,751 | ||||||
Schedule of Other Assets and Other Liabilities [Table Text Block] | December 28, | March 30, | |||||||
2014 | 2014 | ||||||||
Deferred development fees | $ | 213 | $ | 200 | |||||
Reserve for uncertain tax positions | 666 | 620 | |||||||
Deferred rental liability | 606 | 661 | |||||||
Other | 84 | 212 | |||||||
$ | 1,569 | $ | 1,693 |
Note_I_Sales_Tables
Note I - Sales (Tables) | 9 Months Ended | ||||||||||||||||
Dec. 28, 2014 | |||||||||||||||||
Notes Tables | |||||||||||||||||
Revenue from External Customers by Products and Services [Table Text Block] | Thirteen weeks ended | Thirty-nine weeks ended | |||||||||||||||
December 28, | December 29, | December 28, | December 29, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Branded Products | $ | 14,956 | $ | 13,156 | $ | 45,568 | $ | 40,256 | |||||||||
Company-operated restaurants | 2,148 | 1,990 | 14,497 | 11,536 | |||||||||||||
Other | 194 | 90 | 582 | 211 | |||||||||||||
Total sales | $ | 17,298 | $ | 15,236 | $ | 60,647 | $ | 52,003 |
Note_K_Sharebased_Compensation1
Note K - Share-based Compensation (Tables) | 9 Months Ended | ||||||||||||||||
Dec. 28, 2014 | |||||||||||||||||
Notes Tables | |||||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Weighted-average option fair values | $ | 11.97 | ||||||||||||||
Expected life (years) | 4.5 | ||||||||||||||||
Interest rate | 1.66 | % | |||||||||||||||
Volatility | 22.77 | % | |||||||||||||||
Dividend yield | 0 | % | |||||||||||||||
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block] | Thirteen weeks ended | Thirty-nine weeks ended | |||||||||||||||
December 28, | December 29, | December 28, | December 29, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Stock options | $ | 93 | $ | 56 | $ | 224 | $ | 168 | |||||||||
Restricted stock | 135 | 136 | 405 | 362 | |||||||||||||
Total compensation cost | $ | 228 | $ | 192 | $ | 629 | $ | 530 | |||||||||
Schedule of Share-based Compensation, Activity [Table Text Block] | Weighted- | Weighted- | Aggregate | ||||||||||||||
Average | Average | Intrinsic | |||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Shares | Price | Contractual Life | (In thousands) | ||||||||||||||
Options outstanding at March 30, 2014 | 279,500 | $ | 15.22 | 2.07 | $ | 9,381 | |||||||||||
Granted | 50,000 | $ | 53.89 | - | - | ||||||||||||
Expired | - | - | - | - | |||||||||||||
Exercised | (59,250 | ) | $ | 12.22 | - | - | |||||||||||
Options outstanding at December 28, 2014 | 270,250 | $ | 23.03 | 2.03 | $ | 14,799 | |||||||||||
Options exercisable at December 28, 2014 | 175,875 | $ | 15.59 | 1.45 | $ | 10,940 | |||||||||||
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | Weighted | ||||||||||||||||
- | |||||||||||||||||
Average | |||||||||||||||||
Grant | |||||||||||||||||
- | |||||||||||||||||
date | |||||||||||||||||
Fair value | |||||||||||||||||
Shares | Per share | ||||||||||||||||
Unvested restricted stock at March 30, 2014 | 55,000 | $ | 38.61 | ||||||||||||||
Granted | - | - | |||||||||||||||
Vested | (15,000 | ) | $ | 36.13 | |||||||||||||
Unvested restricted stock at December 28, 2014 | 40,000 | $ | 39.54 |
Note_C_Income_Per_Share_Detail
Note C - Income Per Share (Details Textual) | 3 Months Ended | 9 Months Ended | ||
Dec. 28, 2014 | Dec. 29, 2013 | Dec. 28, 2014 | Dec. 29, 2013 | |
Income per share: | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0 | 0 | 0 |
Note_C_Income_Per_Share_Table_
Note C - Income Per Share - Table of Earnings Per Share Reconciliation (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 28, 2014 | Dec. 29, 2013 |
Basic EPS | ||||
Basic calculation | $2,241 | $1,107 | $10,166 | $7,109 |
Basic (in shares) | 4,482,000 | 4,466,000 | 4,475,000 | 4,447,000 |
Basic (in dollars per share) | $0.50 | $0.25 | $2.27 | $1.60 |
Effect of dilutive employee stock options (in shares) | 121,000 | 156,000 | 121,000 | 162,000 |
Effect of dilutive employee stock options (in dollars per share) | ($0.01) | ($0.01) | ($0.06) | ($0.06) |
Diluted EPS | ||||
Diluted calculation | $2,241 | $1,107 | $10,166 | $7,109 |
Diluted (in shares) | 4,603,000 | 4,622,000 | 4,596,000 | 4,609,000 |
Diluted (in dollars per share) | $0.49 | $0.24 | $2.21 | $1.54 |
Note_D_Fair_Value_Measurements2
Note D - Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) (USD $) | Dec. 28, 2014 | Mar. 30, 2014 |
Marketable securities | $6,819,000 | $11,187,000 |
Fair Value, Inputs, Level 2 [Member] | ||
Marketable securities | $6,819,000 | $11,187,000 |
Note_E_Marketable_Securities_D
Note E - Marketable Securities (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | ||
Dec. 28, 2014 | Dec. 29, 2013 | Dec. 28, 2014 | Dec. 29, 2013 | |
Marketable Securities [Abstract] | ||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | ($19,000) | ($33,000) | ($83,000) | ($140,000) |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | ($12,000) | ($21,000) | ($56,000) | ($92,000) |
Note_E_Marketable_Securities_M
Note E - Marketable Securities - Marketable Securities (Details) (USD $) | Dec. 28, 2014 | Mar. 30, 2014 |
Cost | $6,718,000 | $10,947,000 |
Gross Unrealized Gains | 101,000 | 240,000 |
Gross Unrealized Losses | 0 | 0 |
Fair Market Value | $6,819,000 | $11,187,000 |
Note_E_Marketable_Securities_B
Note E - Marketable Securities - Bond Maturities by Period (Details) (USD $) | Dec. 28, 2014 |
Marketable securities | $6,819,000 |
28-Dec-14 | 4,463,000 |
28-Dec-14 | $2,356,000 |
Note_F_Accounts_and_Other_Rece2
Note F - Accounts and Other Receivables, Net (Details Textual) | 9 Months Ended |
Dec. 28, 2014 | |
Receivables [Abstract] | |
Accounts Receivable Payment Terms | 30 days |
Note_F_Accounts_and_Other_Rece3
Note F - Accounts and Other Receivables, Net - Accounts and Other Receivables, Net (Details) (USD $) | Dec. 28, 2014 | Mar. 30, 2014 |
Accounts Receivable, Gross, Current | $10,831,000 | $8,256,000 |
Less: allowance for doubtful accounts | 426,000 | 433,000 |
Accounts and other receivables, net | 10,405,000 | 7,823,000 |
Branded Product Sales [Member] | ||
Accounts Receivable, Gross, Current | 6,821,000 | 5,141,000 |
Franchise and License Royalties [Member] | ||
Accounts Receivable, Gross, Current | 2,153,000 | 1,658,000 |
Other Receivables [Member] | ||
Accounts Receivable, Gross, Current | $1,857,000 | $1,457,000 |
Note_F_Accounts_and_Other_Rece4
Note F - Accounts and Other Receivables, Net - Changes in Allowance for Doubtful Accounts (Details) (USD $) | 9 Months Ended | 12 Months Ended |
Dec. 28, 2014 | Mar. 30, 2014 | |
Beginning balance | $433,000 | $130,000 |
Bad debt expense | 7,000 | 21,000 |
Charges to other accounts | 0 | 320,000 |
Accounts written off | -14,000 | -38,000 |
Ending balance | $426,000 | $433,000 |
Note_G_Prepaid_Expenses_and_Ot2
Note G - Prepaid Expenses and Other Current Assets - Prepaid Expenses and Other Current Assets (Details) (USD $) | Dec. 28, 2014 | Mar. 30, 2014 |
Income taxes | $608,000 | $2,059,000 |
Insurance | 619,000 | 506,000 |
Other | 403,000 | 564,000 |
$1,630,000 | $3,129,000 |
Note_H_Accrued_Expenses_Other_2
Note H - Accrued Expenses, Other Current Liabilities and Other Liabilities - Accrued Expenses and Other Current Liabilities (Details) (USD $) | Dec. 28, 2014 | Mar. 30, 2014 |
Payroll and other benefits | $2,101,000 | $2,433,000 |
Accrued rebates | 949,000 | 855,000 |
Rent and occupancy costs | 174,000 | 163,000 |
Construction costs | 132,000 | 281,000 |
Unexpended advertising funds | 52,000 | |
Other | 600,000 | 233,000 |
4,102,000 | 4,751,000 | |
Deferred Franchise Fees And Other Deferred Revenue [Member] | ||
Deferred franchise fees | $146,000 | $734,000 |
Note_H_Accrued_Expenses_Other_3
Note H - Accrued Expenses, Other Current Liabilities and Other Liabilities - Other Liabilities (Details) (USD $) | Dec. 28, 2014 | Mar. 30, 2014 |
Deferred development fees | $213,000 | $200,000 |
Reserve for uncertain tax positions | 666,000 | 620,000 |
Deferred rental liability | 606,000 | 661,000 |
Other | 84,000 | 212,000 |
$1,569,000 | $1,693,000 |
Note_I_Sales_Sales_Details
Note I - Sales - Sales (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Dec. 28, 2014 | Dec. 29, 2013 | Dec. 28, 2014 | Dec. 29, 2013 | |
Branded Products | $17,298,000 | $15,236,000 | $60,647,000 | $52,003,000 |
Branded Product Sales [Member] | ||||
Branded Products | 14,956,000 | 13,156,000 | 45,568,000 | 40,256,000 |
Company Operated Restaurants [Member] | ||||
Branded Products | 2,148,000 | 1,990,000 | 14,497,000 | 11,536,000 |
Other Products [Member] | ||||
Branded Products | $194,000 | $90,000 | $582,000 | $211,000 |
Note_J_Income_Taxes_Details_Te
Note J - Income Taxes (Details Textual) (USD $) | 9 Months Ended | |
Dec. 28, 2014 | Dec. 29, 2013 | |
Income Tax Disclosure [Abstract] | ||
Effective Income Tax Rate Reconciliation, Percent | 40.90% | 39.30% |
Effective Income Tax Rate Reconciliation, Tax Exempt Income, Percent | 0.30% | 0.80% |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $315,000 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 362,000 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | ($64,000) | |
Estimated Annual Tax Rate Lower End of Range | 39.50% | |
Estimated Annual Tax Rate Upper End of Range | 41.50% | |
Scenario, Forecast [Member] | ||
Income Tax Disclosure [Abstract] | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% |
Note_K_Sharebased_Compensation2
Note K - Share-based Compensation (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | ||
Dec. 28, 2014 | Dec. 29, 2013 | Dec. 28, 2014 | Dec. 29, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 120 days | |||
Stock options | $228,000 | $192,000 | $629,000 | $530,000 |
Share Based Compensation Total Unamortized Compensation Expense | 2,044,000 | 2,044,000 | ||
Granted (in shares) | 50,000 | |||
Granted (in dollars per share) | $53.89 | |||
Share Based Compensation Arrangement by Share Based Payment Award Option Life | 5 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |||
Restricted Stock [Member] | ||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 5 years | |||
Stock options | 135,000 | 136,000 | 405,000 | 362,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 25,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $49.80 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $1,245,000 | $1,245,000 |
Note_K_Sharebased_Compensation3
Note K - Share-based Compensation - Fair Value Option Valuation Assumptions (Details) (USD $) | 9 Months Ended |
Dec. 28, 2014 | |
Rate | |
Weighted-average option fair values (in dollars per share) | $11.97 |
Expected life (years) | 4 years 182 days |
Interest rate | 1.66% |
Volatility | 22.77% |
Dividend yield | 0.00% |
Note_K_Sharebased_Compensation4
Note K - Share-based Compensation - Compensation Cost Charged to Expense under All Stock-based Incentive Awards (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 28, 2014 | Dec. 29, 2013 |
Stock options | $228 | $192 | $629 | $530 |
Employee Stock Option [Member] | ||||
Stock options | 93 | 56 | 224 | 168 |
Restricted Stock [Member] | ||||
Stock options | $135 | $136 | $405 | $362 |
Note_K_Sharebased_Compensation5
Note K - Share-based Compensation - A Summary of the Status of the Company's Stock Options (Details) (USD $) | 9 Months Ended | 12 Months Ended |
Dec. 28, 2014 | Mar. 30, 2014 | |
Options outstanding at March 30, 2014 (in shares) | 270,250 | 279,500 |
Options outstanding at March 30, 2014 (in dollars per share) | $23.03 | $15.22 |
Options outstanding at March 30, 2014 | 2 years 10 days | 2 years 25 days |
Options outstanding at March 30, 2014 | $14,799 | $9,381 |
Granted (in shares) | 50,000 | |
Granted (in dollars per share) | $53.89 | |
Expired (in shares) | 0 | |
Expired (in dollars per share) | $0 | |
Exercised (in shares) | -59,250 | |
Exercised (in dollars per share) | $12.22 | |
Options exercisable at December 28, 2014 (in shares) | 175,875 | |
Options exercisable at December 28, 2014 (in dollars per share) | $15.59 | |
Options exercisable at December 28, 2014 | 1 year 164 days | |
Options exercisable at December 28, 2014 | $10,940 |
Note_K_Sharebased_Compensation6
Note K - Share-based Compensation - Transactions with Respect to Restricted Stock (Details) (USD $) | 9 Months Ended | |
Dec. 28, 2014 | Mar. 30, 2014 | |
Unvested restricted stock at March 30, 2014 (in shares) | 40,000 | 55,000 |
Unvested restricted stock at March 30, 2014 (in dollars per share) | $39.54 | $38.61 |
Vested (in shares) | -15,000 | |
Vested (in dollars per share) | $36.13 |
Note_L_Stockholders_Equity_Det
Note L - Stockholders' Equity (Details Textual) (USD $) | 9 Months Ended | 159 Months Ended | |||
Dec. 28, 2014 | Dec. 28, 2014 | Sep. 11, 2014 | Mar. 30, 2014 | Jun. 05, 2013 | |
Stockholders' Equity Note [Abstract] | |||||
Treasury Stock, Shares, Acquired | 37,661 | 4,647,687 | |||
Treasury Stock, Value, Acquired, Cost Method | $1,916,000 | $56,800,000 | |||
Common Stock, Par or Stated Value Per Share | $0.01 | $0.01 | $0.01 | $0.01 | |
Stock Repurchase Program, Authorized Amount | $6,000,000 | ||||
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 251,272 | 251,272 | |||
Minimum Percentage of Common Stock Acquired by a Person or Group which Triggers Exercise of New Rights | 15.00% | ||||
New Right Purchase Price | $100 | ||||
Common Stock, Capital Shares Reserved for Future Issuance | 6,515,345 | 6,515,345 | 10,188,600 |
Note_M_Commitments_and_Conting1
Note M - Commitments and Contingencies (Details Textual) (USD $) | Dec. 01, 2009 |
Commitments and Contingencies Disclosure [Abstract] | |
Guarantor Obligations, Current Carrying Value | $76,000 |
Note_N_Superstorm_Sandy_Detail
Note N - Superstorm Sandy (Details Textual) (USD $) | 1 Months Ended | 3 Months Ended | 5 Months Ended | 9 Months Ended | ||||
Apr. 30, 2014 | Dec. 28, 2014 | Dec. 29, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 28, 2014 | Dec. 29, 2013 | Oct. 29, 2012 | |
Extraordinary and Unusual Items [Abstract] | ||||||||
Loss from Catastrophes | $1,340,000 | |||||||
Proceeds from Insurance Settlement, Investing Activities | 3,400,000 | |||||||
Insured Event, Gain (Loss) | 0 | 0 | 2,801,000 | 0 | 2,801,000 | |||
Proceeds from Insurance Settlement, Operating Activities | 718,000 | 718,000 | 0 | |||||
Closed for Varying Periods of Time [Member] | ||||||||
Extraordinary and Unusual Items [Abstract] | ||||||||
Number of Restaurants | 78 | |||||||
Unsalable Inventories [Member] | ||||||||
Extraordinary and Unusual Items [Abstract] | ||||||||
Loss from Catastrophes | 42,000 | |||||||
Write Off of Property and Equipment [Member] | ||||||||
Extraordinary and Unusual Items [Abstract] | ||||||||
Loss from Catastrophes | $449,000 | |||||||
Branded Menu Location [Member] | Closed for Varying Periods of Time [Member] | ||||||||
Extraordinary and Unusual Items [Abstract] | ||||||||
Number of Restaurants | 18 | |||||||
Branded Menu Location [Member] | Remain Closed [Member] | ||||||||
Extraordinary and Unusual Items [Abstract] | ||||||||
Number of Restaurants | 1 |
Note_O_Reclassifications_Detai
Note O - Reclassifications (Details Textual) (Reclassification from License Royalties to Franchise Royalties [Member], USD $) | 3 Months Ended | 9 Months Ended |
Dec. 29, 2013 | Dec. 29, 2013 | |
Reclassification from License Royalties to Franchise Royalties [Member] | ||
Accounting Policies [Abstract] | ||
Prior Period Reclassification Adjustment | $9,000 | $31,000 |