Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Jun. 28, 2015 | Aug. 05, 2015 | |
Entity Registrant Name | NATHANS FAMOUS INC | |
Entity Central Index Key | 69,733 | |
Current Fiscal Year End Date | --03-27 | |
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) | 4,430,523 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 28, 2015 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 28, 2015 | Mar. 29, 2015 |
Deferred Franchise Fees [Member] | ||
CURRENT LIABILITIES | ||
Deferred franchise fees | $ 376,000 | $ 278,000 |
Cash and cash equivalents | 51,603,000 | 51,393,000 |
Marketable securities | 7,832,000 | 7,091,000 |
Accounts and other receivables, net | 12,542,000 | 9,499,000 |
Inventories | 1,120,000 | 822,000 |
Prepaid expenses and other current assets (Note H) | 1,360,000 | 4,532,000 |
Deferred income taxes | 277,000 | 277,000 |
Total current assets | 74,734,000 | 73,614,000 |
Property and equipment, net of accumulated depreciation of $7,285,000 and $6,946,000 respectively | 9,072,000 | 9,257,000 |
Goodwill | 95,000 | 95,000 |
Intangible asset | 1,353,000 | 1,353,000 |
Other assets | 343,000 | 347,000 |
85,597,000 | 84,666,000 | |
Accounts payable | 7,118,000 | 5,319,000 |
Accrued expenses and other current liabilities (Note I) | 8,123,000 | 6,412,000 |
Total current liabilities | 15,617,000 | 12,009,000 |
Long-term debt, net of unamortized debt discounts and issuance costs of $5,563,000 and $5,860,000 respectively (Note N) | 129,437,000 | 129,140,000 |
Other liabilities | 2,193,000 | 2,397,000 |
Deferred income taxes | 1,060,000 | 1,028,000 |
Total liabilities | $ 148,307,000 | $ 144,574,000 |
COMMITMENTS AND CONTINGENCIES (Note O) | ||
STOCKHOLDERS’ (DEFICIT) | ||
Common stock, $.01 par value; 30,000,000 shares authorized; 9,263,408 and 9,252,097 shares issued; and 4,479,734 and 4,604,410 shares outstanding at June 28, 2015 and March 29, 2015, respectively | $ 93,000 | $ 93,000 |
Additional paid-in capital | 60,449,000 | 60,196,000 |
Accumulated (deficit) | (61,134,000) | (63,444,000) |
Accumulated other comprehensive income | 42,000 | 47,000 |
(550,000) | (3,108,000) | |
Treasury stock, at cost, 4,783,674 and 4,647,687 shares at June 28, 2015 and March 29, 2015, respectively | (62,160,000) | (56,800,000) |
Total stockholders’ (deficit) | (62,710,000) | (59,908,000) |
$ 85,597,000 | $ 84,666,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) | Jun. 28, 2015 | Mar. 29, 2015 |
Accumulated depreciation | $ 7,285,000 | $ 6,946,000 |
Unamortized debt issuance costs | $ 5,563,000 | $ 5,860,000 |
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) | 9,263,408 | 9,252,097 |
Common stock, shares outstanding (in shares) | 4,479,734 | 4,604,410 |
Treasury stock, shares (in shares) | 4,783,674 | 4,647,687 |
Consolidated Statements of Earn
Consolidated Statements of Earnings (Unaudited) - USD ($) | 3 Months Ended | |
Jun. 28, 2015 | Jun. 29, 2014 | |
REVENUES | ||
Sales | $ 22,891,000 | $ 20,528,000 |
License royalties | 6,536,000 | 5,568,000 |
Franchise fees and royalties | 1,227,000 | 1,489,000 |
Total revenues | 30,654,000 | 27,585,000 |
COSTS AND EXPENSES | ||
Cost of sales | 18,106,000 | 16,288,000 |
Restaurant operating expenses | 969,000 | 1,064,000 |
Depreciation and amortization | 339,000 | 346,000 |
General and administrative expenses | 3,624,000 | 3,108,000 |
Total costs and expenses | 23,038,000 | 20,806,000 |
Income from operations | 7,616,000 | $ 6,779,000 |
Interest expense | (3,709,000) | |
Interest income | 5,000 | $ 62,000 |
Other income, net | 26,000 | 21,000 |
Income before provision for income taxes | 3,938,000 | 6,862,000 |
Provision for income taxes | 1,628,000 | 2,791,000 |
Net income | $ 2,310,000 | $ 4,071,000 |
Income per share: | ||
Basic (in dollars per share) | $ 0.50 | $ 0.91 |
Diluted (in dollars per share) | $ 0.50 | $ 0.89 |
Weighted average shares used in computing income per share: | ||
Basic (in shares) | 4,584,000 | 4,471,000 |
Diluted (in shares) | 4,621,000 | 4,593,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | |
Jun. 28, 2015 | Jun. 29, 2014 | |
Net income | $ 2,310,000 | $ 4,071,000 |
Other comprehensive loss, net of deferred income taxes: | ||
Unrealized losses on marketable securities | (5,000) | (32,000) |
Other comprehensive loss | (5,000) | (32,000) |
Comprehensive income | $ 2,305,000 | $ 4,039,000 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' (Deficit) (Unaudited) - 3 months ended Jun. 28, 2015 - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Treasury Stock [Member] | Total |
Balance (in shares) at Mar. 29, 2015 | 9,252,097 | 4,647,687 | ||||
Balance at Mar. 29, 2015 | $ 93,000 | $ 60,196,000 | $ (63,444,000) | $ 47,000 | $ (56,800,000) | $ (59,908,000) |
Shares issued in connection with share- based compensation plans (in shares) | 11,311 | |||||
Shares issued in connection with share- based compensation plans | 44,000 | 44,000 | ||||
Withholding tax on net share settlement of share-based compensation plans | $ (59,000) | $ (59,000) | ||||
Repurchase of common stock (in shares) | 135,987 | 135,987 | ||||
Repurchase of common stock | $ (5,360,000) | $ (5,360,000) | ||||
Income tax benefit on stock option exercises | $ 65,000 | 65,000 | ||||
Share-based compensation | $ 203,000 | 203,000 | ||||
Unrealized losses on available-for-sale securities, net of deferred income tax benefit | $ (5,000) | (5,000) | ||||
Net income | $ 2,310,000 | 2,310,000 | ||||
Balance (in shares) at Jun. 28, 2015 | 9,263,408 | 4,783,674 | ||||
Balance at Jun. 28, 2015 | $ 93,000 | $ 60,449,000 | $ (61,134,000) | $ 42,000 | $ (62,160,000) | $ (62,710,000) |
Consolidated Statement of Stoc7
Consolidated Statement of Stockholders' (Deficit) (Unaudited) (Parentheticals) - USD ($) | 3 Months Ended |
Jun. 28, 2015 | |
AOCI Attributable to Parent [Member] | |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | $ (3,000) |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | $ (3,000) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - Scenario, Unspecified [Domain] - USD ($) | 3 Months Ended | |
Jun. 28, 2015 | Jun. 29, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 2,310,000 | $ 4,071,000 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 339,000 | 346,000 |
Amortization of bond premium | 68,000 | $ 48,000 |
Amortization of debt discounts and issuance costs | 297,000 | |
Share-based compensation expense | 203,000 | $ 191,000 |
Provision for doubtful accounts | 16,000 | |
Deferred income taxes | 35,000 | $ 44,000 |
Changes in operating assets and liabilities: | ||
Accounts and other receivables, net | $ (3,059,000) | (3,337,000) |
Insurance proceeds received for business interruption claim | 718,000 | |
Inventories | $ (298,000) | (158,000) |
Prepaid expenses and other current assets | 3,172,000 | 2,440,000 |
Other assets | 4,000 | 48,000 |
Accounts payable, accrued expenses and other current liabilities | 3,635,000 | (1,412,000) |
Deferred franchise fees | 98,000 | 85,000 |
Other liabilities | (204,000) | (65,000) |
Net cash provided by operating activities | 6,616,000 | 3,019,000 |
Cash flows from investing activities: | ||
Proceeds from sale and maturities of available-for-sale securities | 3,070,000 | 1,670,000 |
Purchase of property and equipment | (154,000) | $ (220,000) |
Purchase of available-for-sale securities | (3,887,000) | |
Net cash (used in) provided by investing activities | (971,000) | $ 1,450,000 |
Cash flows from financing activities: | ||
Income tax benefit on stock option exercises | 65,000 | 294,000 |
Proceeds from exercise of stock options | 44,000 | $ 89,000 |
Dividends paid upon vesting of restricted stock | (125,000) | |
Payments of withholding tax on net share settlement of share-based compensation plans | (59,000) | $ (265,000) |
Repurchase of treasury stock | (5,360,000) | (1,559,000) |
Net cash (used in) financing activities | (5,435,000) | (1,441,000) |
Net increase in cash and cash equivalents | 210,000 | 3,028,000 |
Cash and cash equivalents, beginning of period | 51,393,000 | 22,077,000 |
Cash and cash equivalents, end of period | 51,603,000 | 25,105,000 |
Cash paid during the period for: | ||
Interest | 0 | 0 |
Income taxes (refunded) / paid | $ (1,453,000) | $ 36,000 |
Note A - Basis of Presentation
Note A - Basis of Presentation | 3 Months Ended |
Jun. 28, 2015 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 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 week periods ended June 28, 2015 and June 29, 2014 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 29, 2015. 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 29, 2015. There have been no changes to the Company’s significant accounting policies subsequent to March 29, 2015. |
Note B - Adoption of New Accoun
Note B - Adoption of New Accounting Pronouncements | 3 Months Ended |
Jun. 28, 2015 | |
Notes to Financial Statements | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | NOTE B – ADOPTION OF NEW ACCOUNTING PRONOUNCEMENTS 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 was effective for the Company beginning in the first quarter of fiscal 2016 and did not have a material impact on its results of operations or financial position. 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. The Company early adopted this standard beginning in the first quarter of fiscal 2016. The adoption did not have a material impact on its results of operations or financial position. |
Note C - New Accounting Pronoun
Note C - New Accounting Pronouncements Not Yet Adopted | 3 Months Ended |
Jun. 28, 2015 | |
Notes to Financial Statements | |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | NOTE C – NEW ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED In May 2014, the FASB issued a new accounting standard that attempts to establish a uniform basis for recording income 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 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 July 2015, the FASB updated U.S. GAAP to simplify the ways businesses measure inventory. Companies that use the first-in, first-out (FIFO) method or the average cost method will measure inventory at the lower of its cost or net realizable value. Net realizable value is the estimated selling price in the normal course of business, minus the cost of completion, disposal, and transportation. Companies will no longer consider replacement cost or net realizable value less a normal profit margin when measuring inventory. This new standard is effective for annual reporting periods beginning after December 15, 2016 which will be our first quarter (June 2017) of our fiscal year ending March 25, 2018. Nathan’s does not expect the adoption of this new guidance to have a material impact on its results of operations or financial position. The Company does not believe that any other recently issued, but not yet effective accounting standards, when adopted, will have a material effect on the accompanying financial statements. |
Note D - Income Per Share
Note D - Income Per Share | 3 Months Ended |
Jun. 28, 2015 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | NOTE D – 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-week periods ended June 28, 2015 and June 29, 2014, respectively. Thirteen weeks Net Income Net Income Number of Shares Per Share 2015 2014 2015 2014 2015 2014 (in thousands) (in thousands) Basic EPS Basic calculation $ 2,310 $ 4,071 4,584 4,471 $ 0.50 $ 0.91 Effect of dilutive employee stock options - - 37 122 - (0.02 ) Diluted EPS Diluted calculation $ 2,310 $ 4,071 4,621 4,593 $ 0.50 $ 0.89 There were no options to purchase shares of common stock for the thirteen week periods ended June 28, 2015 and June 29, 2014 that were excluded from the computation of diluted earnings per share. |
Note E - Fair Value Measurement
Note E - Fair Value Measurements | 3 Months Ended |
Jun. 28, 2015 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | NOTE E – 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 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 measured at fair value on a recurring basis as of June 28, 2015 and March 29, 2015 based upon the valuation hierarchy (in thousands): June 28 , 201 5 Level 1 Level 2 Level 3 Carrying Value Marketable securities $ - $ 7,832 $ - $ 7,832 Total assets at fair value $ - $ 7,832 $ - $ 7,832 March 29, 2015 Level 1 Level 2 Level 3 Carrying Value Marketable securities $ - $ 7,091 $ - $ 7,091 Total assets at fair value $ - $ 7,091 $ - $ 7,091 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. The Company’s long-term debt had a carrying value of $135,000,000 as of June 28, 2015 and a fair value of $144,788,000 as of June 28, 2015. The Company estimates the fair value of its long-term debt based upon review of observable pricing in secondary markets as of the last trading day of the fiscal period. Accordingly, the Company classifies its long-term debt as Level 2. 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 non-recurring 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 June 28, 2015, no fair value adjustment or material fair value measurements were required for non-financial assets or liabilities. |
Note F - Marketable Securities
Note F - Marketable Securities | 3 Months Ended |
Jun. 28, 2015 | |
Notes to Financial Statements | |
Marketable Securities Disclosure [Text Block] | NOTE F – 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 June 28, 2015 and March 29, 2015, all marketable securities held by the Company have been classified as available-for-sale and, as a result, are stated at fair value (Note E), 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 Unrealized Gains Gross Unrealized Losses Fair Market Value June 28, 2015 $ 7,768 $ 64 $ - $ 7,832 March 29, 2015 $ 7,019 $ 72 $ - $ 7,091 The municipal bonds held at June 28, 2015, mature at various dates between July 2015 Fair value of Municipal Bonds Total Less than 1 Year 1 – 5 Years 5 – 10 Years After 10 Years June 28, 2015 $ 7,832 $ 6,767 $ 1,065 $ - $ - The change in net unrealized losses on available-for-sale securities for the thirteen-week periods ended June 28, 2015 and June 29, 2014 of $5 , |
Note G - Accounts and Other Rec
Note G - Accounts and Other Receivables, Net | 3 Months Ended |
Jun. 28, 2015 | |
Notes to Financial Statements | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | NOTE G – ACCOUNTS AND OTHER RECEIVABLES, NET Accounts and other receivables, net, consist of the following (in thousands): June 28 , March 29, 2015 2015 Branded product sales $ 7,709 $ 6,317 Franchise and license royalties 3,708 2,570 Other 1,572 1,055 12,989 9,942 Less: allowance for doubtful accounts 447 443 Accounts and other receivables, net $ 12,542 $ 9,499 Accounts receivable are due within 30 days and are stated at amounts due from franchisees, retail licensees and Branded Product Program customers, net of an allowance for doubtful accounts. Accounts that are outstanding longer than the contractual payment terms are generally 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 uncollectible 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 thirteen-week period ended June 28, 2015 and the fiscal year ended March 29, 2015 are as follows (in thousands): June 28 , 20 15 March 29, 2015 Beginning balance $ 443 $ 433 Bad debt expense 16 23 Accounts written off (12 ) (13 ) Ending balance $ 447 $ 443 |
Note H - Prepaid Expenses and O
Note H - Prepaid Expenses and Other Current Assets | 3 Months Ended |
Jun. 28, 2015 | |
Notes to Financial Statements | |
Other Current Assets [Text Block] | NOTE H – PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets consist of the following (in thousands): June 28 , March 29, 2015 2015 Income taxes $ 532 $ 3,525 Insurance 303 497 Other 525 510 $ 1,360 $ 4,532 |
Note I - Accrued Expenses, Othe
Note I - Accrued Expenses, Other Current Liabilities and Other Liabilities | 3 Months Ended |
Jun. 28, 2015 | |
Notes to Financial Statements | |
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block] | NOTE I – ACCRUED EXPENSES, OTHER CURRENT LIABILITIES AND OTHER LIABILITIES Accrued expenses and other current liabilities consist of the following (in thousands): June 28 , March 29, 2015 2015 Payroll and other benefits $ 1,452 $ 2,847 Accrued rebates 789 815 Rent and occupancy costs 301 206 Deferred revenue 383 601 Construction costs 186 269 Interest 4,163 750 Professional fees 224 329 Dividend payable 375 375 Other 250 220 $ 8,123 $ 6,412 Other liabilities consist of the following (in thousands): June 28, March 29, 2015 2015 Deferred development fees $ 177 $ 214 Reserve for uncertain tax positions 548 555 Deferred rental liability 961 991 Dividend payable 500 625 Other 7 12 $ 2,193 $ 2,397 |
Note J - Sales
Note J - Sales | 3 Months Ended |
Jun. 28, 2015 | |
Notes to Financial Statements | |
Sales [Text Block] | NOTE J – SALES The Company’s sales for the thirteen weeks ended June 28, 2015 and June 29, 2014 are as follows (in thousands): Thirteen weeks ended June 28, 2015 June 29, 2014 Branded Products $ 17,415 $ 15,064 Company-operated restaurants 5,299 5,291 Other 177 173 Total sales $ 22,891 $ 20,528 |
Note K - Income Taxes
Note K - Income Taxes | 3 Months Ended |
Jun. 28, 2015 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | NOTE K – INCOME TAXES The income tax provisions for the thirteen-week periods ended June 28, 2015 and June 29, 2014 reflect effective tax rates of 41.3% and 40.7%, respectively, which have been reduced from statutory rates by 0.1% and 0.4%, respectively, for the differing effects of tax exempt interest income. The amount of unrecognized tax benefits at June 28, 2015 was $253,000, all of which would impact Nathan’s effective tax rate, if recognized. As of June 28, 2015, Nathan’s had $291,000 of accrued interest and penalties in connection with unrecognized tax benefits. During the fiscal year ending March 27, 2016, Nathan’s will seek to settle additional uncertain tax positions with the tax authorities. As a result, it is reasonably possible the amount of unrecognized tax benefits, excluding the related accrued interest and penalties, could be reduced by up to $98,000, which would favorably impact Nathan’s effective tax rate, although no assurances can be given in this regard. Nathan’s estimates that its annual tax rate for the fiscal year ending March 27, 2016 will be in the range of approximately 40.4% to 41.6%, excluding the potential impact of any reduction to the Company’s unrecognized tax benefits. 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. In June 2015, Nathan’s received notification from the New York State Department of Taxation and Finance that it is seeking to review Nathan’s tax returns for the period April 1, 2011 through March 31, 2014. |
Note L - Share-based Compensati
Note L - Share-based Compensation | 3 Months Ended |
Jun. 28, 2015 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | NOTE L – SHARE-BASED COMPENSATION Total share-based compensation during the thirteen-week periods ended June 28, 2015 and June 29, 2014 was $203,000 and $191,000, respectively. Total share-based compensation is included in general and administrative expense in our accompanying Consolidated Statements of Earnings. As of June 28, 2015, there was $1,599,000 There were no new share-based awards granted during the thirteen-week period ended June 28, 2015. 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): T hirteen weeks ended June 28, 2015 June 29, 2014 Stock options $ 68 $ 56 Restricted stock 135 135 Total compensation cost $ 203 $ 191 Stock options outstanding: During the fiscal year ended March 29, 2015, 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 ex-dividend date for the special cash dividend was March 30, 2015, which was paid on March 27, 2015, to stockholders of record as of March 20, 2015. Pursuant to the anti-dilution provisions of the Company’s 2010 Stock Incentive Plan, as awarded, the Company issued 75,745 replacement options at an exercise price of $35.576 for the unvested stock options that were outstanding as of March 29, 2015. Nathan’s performed its evaluation based on the closing price of its common stock on Friday, March 27, 2015 of $73.56 per share, or $48.56 per share excluding the dividend of $25.00 per share. No other terms or conditions of the outstanding options were modified. The anti-dilution provisions of the original award were structured to equalize the award’s fair value before and after the modification. Transactions with respect to stock options for the thirteen weeks ended June 28, 2015 are as follows: Weighted- Weighted- Aggregate Average Average Intrinsic Exercise Remaining Value Shares Price Contractual Life (in thousands) Options outstanding at the beginning of the fiscal year (A) 142,964 $ 24.36 2.87 $ 3,460 Granted - - - - Expired (3,787 ) $ 11.72 - - Exercised (9,467 ) $ 11.72 - 261 Options outstanding at June 28, 2015 129,710 $ 25.65 2.79 $ 1,423 Options exercisable at June 28, 2015 53,965 $ 11.72 0.94 $ 1,344 A - Represents outstanding options after giving effect to the replacement options issued in connection with the Company’s special dividend. Restricted stock: Transactions with respect to restricted stock for the thirteen weeks ended June 28, 2015 are as follows: Weighted- Average Grant-date Fair value Shares Per share Unvested restricted stock at March 29, 2015 40,000 $ 39.54 Granted - - Vested (5,000 ) $ 49.80 Unvested restricted stock at June 28, 2015 35,000 $ 38.07 |
Note M - Stockholders' Equity
Note M - Stockholders' Equity | 3 Months Ended |
Jun. 28, 2015 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE M – STOCKHOLDERS’ EQUITY 1. Dividend On March 10, 2015, the Company’s Board of Directors declared a special cash dividend of $25.00 per share payable to stockholders of record as of March 20, 2015. On March 27, 2015, the Company paid cash dividends of approximately $115,100,000 to the stockholders of our outstanding common stock. The Company also accrued $1,000,000 for the expected dividends payable on unvested shares pursuant to the terms of the restricted stock agreements. As certain restricted stock grants vest beginning in June 2015, the declared dividend will be paid. We have paid $125,000 of the accrued dividend and estimate that approximately $250,000 will also be paid during the remainder of the fiscal year. The ex-date for the distribution was March 30, 2015 pursuant to NASDAQ regulations for dividend distributions that are greater than 25% of the Company’s market capitalization. 2 . Common Stock Purchase Rights 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 June 28, 2015, the Company has reserved 13,293,670 shares of common stock for issuance upon exercise of the Common Stock Purchase Rights approved by the Board of Directors on June 5, 2013. 3. Stock Repurchase Programs During the period from October 2001 through June 28, 2015, Nathan’s purchased a total of 4,783,674 $62,160,000 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 June 28, 2015, an aggregate of 115,285 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. |
Note N - Long-term Debt
Note N - Long-term Debt | 3 Months Ended |
Jun. 28, 2015 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | NOTE N – LONG-TERM DEBT Long-term debt consists of the following (in thousands): June 2 8 , March 29, 2015 2015 10.000% Senior secured notes due 2020 $ 135,000 $ 135,000 Less: unamortized debt discounts and issuance costs (5,563 ) (5,860 ) $ 129,437 $ 129,140 On March 10, 2015, the Company completed the issuance of $135,000,000 of 10.000% Senior Secured Notes due 2020 (“the Notes”) in a Rule 144A transaction. The Company used the proceeds to pay a special cash dividend of approximately $116,100,000 (see Note M) with the remaining net proceeds for general corporate purposes, including working capital. Debt discounts and issuance costs are presented net of the long-term debt of approximately $5,563,000 which will be amortized into interest expense over the remaining 5-year term of the Notes. The Notes bear interest at 10.000% per annum, payable semi-annually on March 15 th th There are no financial maintenance covenants associated with the Notes. The Indenture contains certain covenants limiting the Company’s ability and the ability of its restricted subsidiaries (as defined in the Indenture) to, subject to certain exceptions and qualifications: (i) incur additional indebtedness; (ii) pay dividends or make other distributions on, redeem or repurchase, capital stock; (iii) make investments or other restricted payments; (iv) create or incur certain liens; (v) incur restrictions on the payment of dividends or other distributions from its restricted subsidiaries; (vi) enter into certain transactions with affiliates; (vii) sell assets; or (viii) effect a consolidation or merger. Certain Restricted Payments which may be made or indebtedness incurred by Nathan’s or its Restricted Subsidiaries may require compliance with the following financial ratios: Fixed Charge Coverage Ratio Priority Secured Leverage Ratio Secured Leverage Ratio The Indenture also contains customary events of default, including, among other things, failure to pay interest, failure to comply with agreements related to the indenture, failure to pay at maturity or acceleration of other indebtedness, failure to pay certain judgments, and certain events of insolvency or bankruptcy. Generally, if any event of default occurs, the Trustee or the holders of at least 25% in principal amount of the Notes may declare the Notes due and payable by providing notice to the Company. In case of default arising from certain events of bankruptcy or insolvency, the Notes will become immediately due and payable. As of June 28, 2015, Nathan’s was in compliance with all covenants associated with the Notes. The Notes are general senior secured obligations, are fully and unconditionally guaranteed by substantially all of the Company’s wholly-owned subsidiaries and rank pari passu The Notes and the guarantees will be the Company and the guarantors’ senior secured obligations and will rank: ● senior in right of payment to all of the Company and the guarantors’ future subordinated indebtedness; ● effectively senior to all unsecured senior indebtedness to the extent of the value of the collateral securing the Notes and the guarantees; ● pari passu with all of the Company and the guarantors’ other senior indebtedness; ● effectively junior to any future credit facility to the extent of the value of the collateral securing any future credit facility and the Notes and the guarantees and certain other assets; ● effectively junior to any of the Company and the guarantors’ existing and future indebtedness that is secured by assets other than the collateral securing the Notes and the guarantees to the extent of the value of any such assets; and ● structurally subordinated to the indebtedness of any of the Company’s current and future subsidiaries that do not guarantee the Notes. Prior to September 15, 2017, the Company has the option to redeem up to 35% of the aggregate principal amount of the Notes at a redemption price equal to 110% of the principal amount of the Notes redeemed, plus accrued and unpaid interest and any additional interest, with the net cash proceeds of certain equity offerings. The Company may redeem the Notes in whole or in part prior to September 15, 2017, at a redemption price of 100% of the principal amount of the Notes plus the Applicable Premium, plus accrued and unpaid interest. An Applicable Premium is the greater of 1% of the principal amount of the Notes; or the excess of the present value at such redemption date of (i) the redemption price of the Notes at September 15, 2017 plus (ii) all required interest payments due on the Notes through September 15, 2017 (excluding accrued but unpaid interest to the redemption date), computed using a discount rate equal to the Treasury Rate as of such redemption date plus 50 basis points; over the then outstanding principal amount of the Notes. On or after September 15, 2017, the Company may redeem some or all of the Notes at a decreasing premium over time, plus accrued and unpaid interest as follows: YEAR PERCENTAGE On or after September 15, 2017 and prior to March 15, 2018 105.000% On or after March 15, 2018 and prior to March 15, 2019 102.500% On or after March 15, 2019 100.000% In certain circumstances involving a change of control, the Company will be required to make an offer to repurchase all or, at the holder’s option, any part, of each holder’s Notes pursuant to the offer described below (the “Change of Control Offer”). In the Change of Control Offer, the Company will be required to offer payment in cash equal to 101% of the aggregate principal amount of Notes repurchased plus accrued and unpaid interest, to the date of purchase. If the Company sells certain assets and does not use the net proceeds as required, the Company will be required to use such net proceeds to repurchase the Notes at 100% of the principal amount thereof, plus accrued and unpaid interest and additional interest penalty, if any, to the date of repurchase. The Notes may be traded between qualified institutional buyers pursuant to Rule 144A of the Securities Act of 1933. We have recorded the Notes at cost. |
Note O - Commitments and Contin
Note O - Commitments and Contingencies | 3 Months Ended |
Jun. 28, 2015 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | NOTE O – 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. |
Note P - Superstorm Sandy
Note P - Superstorm Sandy | 3 Months Ended |
Jun. 28, 2015 | |
Notes to Financial Statements | |
Extraordinary Items Disclosure [Text Block] | NOTE P – SUPERSTORM SANDY October 29, 2012, Superstorm Sandy struck the Northeastern United States, which forced the closing of all of the Company-owned restaurants. During the fiscal year ended March 30, 2014, the Company settled its property damage claim and in April 2014, the Company settled its claim for reimbursable on-going business expenses. |
Note Q - Reclassifications
Note Q - Reclassifications | 3 Months Ended |
Jun. 28, 2015 | |
Notes to Financial Statements | |
Reclassifications [Text Block] | NOTE Q - RECLASSIFICATIONS Nathan’s has adopted a new income statement format that it believes will better present its results of operations. The Company concluded that it was appropriate to separately present its non-operating revenues and expenses. Accordingly, interest expense, interest income and other income, net, have been removed from total revenues and total costs and expenses. These prior year balances have been reclassified to conform with the current year presentation. |
Note D - Income Per Share (Tabl
Note D - Income Per Share (Tables) | 3 Months Ended |
Jun. 28, 2015 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Thirteen weeks Net Income Net Income Number of Shares Per Share 2015 2014 2015 2014 2015 2014 (in thousands) (in thousands) Basic EPS Basic calculation $ 2,310 $ 4,071 4,584 4,471 $ 0.50 $ 0.91 Effect of dilutive employee stock options - - 37 122 - (0.02 ) Diluted EPS Diluted calculation $ 2,310 $ 4,071 4,621 4,593 $ 0.50 $ 0.89 |
Note E - Fair Value Measureme27
Note E - Fair Value Measurements (Tables) | 3 Months Ended |
Jun. 28, 2015 | |
Notes Tables | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | June 28 , 201 5 Level 1 Level 2 Level 3 Carrying Value Marketable securities $ - $ 7,832 $ - $ 7,832 Total assets at fair value $ - $ 7,832 $ - $ 7,832 March 29, 2015 Level 1 Level 2 Level 3 Carrying Value Marketable securities $ - $ 7,091 $ - $ 7,091 Total assets at fair value $ - $ 7,091 $ - $ 7,091 |
Note F - Marketable Securities
Note F - Marketable Securities (Tables) | 3 Months Ended |
Jun. 28, 2015 | |
Notes Tables | |
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value June 28, 2015 $ 7,768 $ 64 $ - $ 7,832 March 29, 2015 $ 7,019 $ 72 $ - $ 7,091 |
Investments Classified by Contractual Maturity Date [Table Text Block] | Fair value of Municipal Bonds Total Less than 1 Year 1 – 5 Years 5 – 10 Years After 10 Years June 28, 2015 $ 7,832 $ 6,767 $ 1,065 $ - $ - |
Note G - Accounts and Other R29
Note G - Accounts and Other Receivables, Net (Tables) | 3 Months Ended |
Jun. 28, 2015 | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | June 28 , March 29, 2015 2015 Branded product sales $ 7,709 $ 6,317 Franchise and license royalties 3,708 2,570 Other 1,572 1,055 12,989 9,942 Less: allowance for doubtful accounts 447 443 Accounts and other receivables, net $ 12,542 $ 9,499 |
Schedule of Credit Losses for Financing Receivables, Current [Table Text Block] | June 28 , 20 15 March 29, 2015 Beginning balance $ 443 $ 433 Bad debt expense 16 23 Accounts written off (12 ) (13 ) Ending balance $ 447 $ 443 |
Note H - Prepaid Expenses and30
Note H - Prepaid Expenses and Other Current Assets (Tables) | 3 Months Ended |
Jun. 28, 2015 | |
Notes Tables | |
Schedule of Other Current Assets [Table Text Block] | June 28 , March 29, 2015 2015 Income taxes $ 532 $ 3,525 Insurance 303 497 Other 525 510 $ 1,360 $ 4,532 |
Note I - Accrued Expenses, Ot31
Note I - Accrued Expenses, Other Current Liabilities and Other Liabilities (Tables) | 3 Months Ended |
Jun. 28, 2015 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | June 28 , March 29, 2015 2015 Payroll and other benefits $ 1,452 $ 2,847 Accrued rebates 789 815 Rent and occupancy costs 301 206 Deferred revenue 383 601 Construction costs 186 269 Interest 4,163 750 Professional fees 224 329 Dividend payable 375 375 Other 250 220 $ 8,123 $ 6,412 |
Schedule of Other Assets and Other Liabilities [Table Text Block] | June 28, March 29, 2015 2015 Deferred development fees $ 177 $ 214 Reserve for uncertain tax positions 548 555 Deferred rental liability 961 991 Dividend payable 500 625 Other 7 12 $ 2,193 $ 2,397 |
Note J - Sales (Tables)
Note J - Sales (Tables) | 3 Months Ended |
Jun. 28, 2015 | |
Notes Tables | |
Revenue from External Customers by Products and Services [Table Text Block] | Thirteen weeks ended June 28, 2015 June 29, 2014 Branded Products $ 17,415 $ 15,064 Company-operated restaurants 5,299 5,291 Other 177 173 Total sales $ 22,891 $ 20,528 |
Note L - Share-based Compensa33
Note L - Share-based Compensation (Tables) | 3 Months Ended |
Jun. 28, 2015 | |
Notes Tables | |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block] | T hirteen weeks ended June 28, 2015 June 29, 2014 Stock options $ 68 $ 56 Restricted stock 135 135 Total compensation cost $ 203 $ 191 |
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 the beginning of the fiscal year (A) 142,964 $ 24.36 2.87 $ 3,460 Granted - - - - Expired (3,787 ) $ 11.72 - - Exercised (9,467 ) $ 11.72 - 261 Options outstanding at June 28, 2015 129,710 $ 25.65 2.79 $ 1,423 Options exercisable at June 28, 2015 53,965 $ 11.72 0.94 $ 1,344 |
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | Weighted- Average Grant-date Fair value Shares Per share Unvested restricted stock at March 29, 2015 40,000 $ 39.54 Granted - - Vested (5,000 ) $ 49.80 Unvested restricted stock at June 28, 2015 35,000 $ 38.07 |
Note N - Long-term Debt (Tables
Note N - Long-term Debt (Tables) | 3 Months Ended |
Jun. 28, 2015 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | June 2 8 , March 29, 2015 2015 10.000% Senior secured notes due 2020 $ 135,000 $ 135,000 Less: unamortized debt discounts and issuance costs (5,563 ) (5,860 ) $ 129,437 $ 129,140 |
Debt Instrument Redemption [Table Text Block] | YEAR PERCENTAGE On or after September 15, 2017 and prior to March 15, 2018 105.000% On or after March 15, 2018 and prior to March 15, 2019 102.500% On or after March 15, 2019 100.000% |
Note D - Income Per Share (Deta
Note D - Income Per Share (Details Textual) - shares | 3 Months Ended | |
Jun. 28, 2015 | Jun. 29, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0 |
Note D - Income Per Share - Tab
Note D - Income Per Share - Table of Earnings Per Share Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 28, 2015 | Jun. 29, 2014 | |
Basic EPS | ||
Basic calculation | $ 2,310 | $ 4,071 |
Basic calculation (in shares) | 4,584,000 | 4,471,000 |
Basic calculation (in dollars per share) | $ 0.50 | $ 0.91 |
Effect of dilutive employee stock options (in shares) | 37,000 | 122,000 |
Effect of dilutive employee stock options (in dollars per share) | $ (0.02) | |
Diluted EPS | ||
Diluted calculation | $ 2,310 | $ 4,071 |
Diluted calculation (in shares) | 4,621,000 | 4,593,000 |
Diluted calculation (in dollars per share) | $ 0.50 | $ 0.89 |
Note E - Fair Value Measureme37
Note E - Fair Value Measurements (Details Textual) - USD ($) | Jun. 28, 2015 | Mar. 29, 2015 |
Long-term Debt, Gross | $ 135,000,000 | $ 135,000,000 |
Long-term Debt, Fair Value | $ 144,788,000 |
Note E - Fair Value Measureme38
Note E - Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 28, 2015 | Mar. 29, 2015 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Market Value | $ 7,832 | $ 7,091 |
Fair Market Value | $ 7,832 | $ 7,091 |
Note F - Marketable Securitie39
Note F - Marketable Securities (Details Textual) - USD ($) | 3 Months Ended | |
Jun. 28, 2015 | Jun. 29, 2014 | |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | $ (5,000) | $ (32,000) |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | $ (3,000) | $ (22,000) |
Note F - Marketable Securitie40
Note F - Marketable Securities - Marketable Securities (Details) - USD ($) $ in Thousands | Jun. 28, 2015 | Mar. 29, 2015 |
Cost | $ 7,768 | $ 7,019 |
Gross Unrealized Gains | 64 | 72 |
Fair Market Value | $ 7,832 | $ 7,091 |
Note F - Marketable Securitie41
Note F - Marketable Securities - Bond Maturities by Period (Details) - USD ($) $ in Thousands | Jun. 28, 2015 |
Marketable securities | $ 7,832 |
Less than 1 Year | 6,767 |
1 – 5 Years | $ 1,065 |
Note G - Accounts and Other R42
Note G - Accounts and Other Receivables, Net (Details Textual) | 3 Months Ended |
Jun. 28, 2015 | |
Accounts Receivable Payment Terms | 30 days |
Note G - Accounts and Other R43
Note G - Accounts and Other Receivables, Net - Accounts and Other Receivables, Net (Details) - USD ($) $ in Thousands | Jun. 28, 2015 | Mar. 29, 2015 |
Branded Product Sales [Member] | ||
Accounts Receivable, Gross, Current | $ 7,709 | $ 6,317 |
Franchise and License Royalties [Member] | ||
Accounts Receivable, Gross, Current | 3,708 | 2,570 |
Other Receivables [Member] | ||
Accounts Receivable, Gross, Current | 1,572 | 1,055 |
Accounts Receivable, Gross, Current | 12,989 | 9,942 |
Less: allowance for doubtful accounts | 447 | 443 |
Accounts and other receivables, net | $ 12,542 | $ 9,499 |
Note G - Accounts and Other R44
Note G - Accounts and Other Receivables, Net - Changes in Allowance for Doubtful Accounts (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Jun. 28, 2015 | Mar. 29, 2015 | |
Beginning balance | $ 443,000 | $ 433,000 |
Bad debt expense | 16,000 | 23,000 |
Accounts written off | (12,000) | (13,000) |
Ending balance | $ 447,000 | $ 443,000 |
Note H - Prepaid Expenses and45
Note H - Prepaid Expenses and Other Current Assets - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Jun. 28, 2015 | Mar. 29, 2015 |
Income taxes | $ 532 | $ 3,525 |
Insurance | 303 | 497 |
Other | 525 | 510 |
$ 1,360 | $ 4,532 |
Note I - Accrued Expenses, Ot46
Note I - Accrued Expenses, Other Current Liabilities and Other Liabilities - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 28, 2015 | Mar. 29, 2015 |
Deferred Franchise Fees And Other Deferred Revenue [Member] | ||
Deferred revenue | $ 383 | $ 601 |
Payroll and other benefits | 1,452 | 2,847 |
Accrued rebates | 789 | 815 |
Rent and occupancy costs | 301 | 206 |
Construction costs | 186 | 269 |
Interest | 4,163 | 750 |
Professional fees | 224 | 329 |
Dividend payable | 375 | 375 |
Other | 250 | 220 |
$ 8,123 | $ 6,412 |
Note I - Accrued Expenses, Ot47
Note I - Accrued Expenses, Other Current Liabilities and Other Liabilities - Other Liabilities (Details) - USD ($) $ in Thousands | Jun. 28, 2015 | Mar. 29, 2015 |
Deferred development fees | $ 177 | $ 214 |
Reserve for uncertain tax positions | 548 | 555 |
Deferred rental liability | 961 | 991 |
Dividend payable | 500 | 625 |
Other | 7 | 12 |
$ 2,193 | $ 2,397 |
Note J - Sales - Sales (Details
Note J - Sales - Sales (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 28, 2015 | Jun. 29, 2014 | |
Branded Product Sales [Member] | ||
Sales | $ 17,415 | $ 15,064 |
Company Operated Restaurants [Member] | ||
Sales | 5,299 | 5,291 |
Other Products [Member] | ||
Sales | 177 | 173 |
Sales | $ 22,891 | $ 20,528 |
Note K - Income Taxes (Details
Note K - Income Taxes (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | |
Jun. 28, 2015 | Jun. 29, 2014 | Mar. 27, 2016 | |
Scenario, Forecast [Member] | Minimum [Member] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 40.40% | ||
Scenario, Forecast [Member] | Maximum [Member] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 41.60% | ||
Effective Income Tax Rate Reconciliation, Percent | 41.30% | 40.70% | |
Effective Income Tax Rate Reconciliation, Tax Exempt Income, Percent | (0.10%) | (0.40%) | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 253,000 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 291,000 | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | $ (98,000) |
Note L - Share-based Compensa50
Note L - Share-based Compensation (Details Textual) - USD ($) | Mar. 30, 2015 | Mar. 27, 2015 | Mar. 10, 2015 | Jun. 28, 2015 | Jun. 29, 2014 | Mar. 29, 2015 |
Excluding Dividend [Member] | ||||||
Share Price | $ 48.56 | |||||
Special Cash Dividend [Member] | ||||||
Common Stock, Dividends, Per Share, Declared | 25 | $ 25 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 75,745 | 0 | 50,000 | |||
Allocated Share-based Compensation Expense | $ 203,000 | $ 191,000 | ||||
Share Based Compensation Total Unamortized Compensation Expense | $ 1,599,000 | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 243 days | |||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 35.576 | $ 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 | |||||
Share Price | $ 73.56 |
Note L - Share-based Compensa51
Note L - Share-based Compensation - Compensation Cost Charged to Expense under All Stock-based Incentive Awards (Details) - USD ($) | 3 Months Ended | |
Jun. 28, 2015 | Jun. 29, 2014 | |
Employee Stock Option [Member] | ||
Allocated Share-based Compensation Expense | $ 68,000 | $ 56,000 |
Restricted Stock [Member] | ||
Allocated Share-based Compensation Expense | 135,000 | 135,000 |
Allocated Share-based Compensation Expense | $ 203,000 | $ 191,000 |
Note L - Share-based Compensa52
Note L - Share-based Compensation - A Summary of the Status of the Company's Stock Options (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Jun. 28, 2015 | Mar. 29, 2015 | [1] | |
Shares (in shares) | 129,710 | 142,964 | |
Weighted- Average Exercise Price (in dollars per share) | $ 25.65 | $ 24.36 | |
Weighted- Average Remaining Contractual Life | 2 years 288 days | 2 years 317 days | |
Aggregate Intrinsic Value | $ 1,423 | $ 3,460 | |
Shares (in shares) | (3,787) | ||
Weighted- Average Exercise Price (in dollars per share) | $ 11.72 | ||
Shares (in shares) | (9,467) | ||
Weighted- Average Exercise Price (in dollars per share) | $ 11.72 | ||
Aggregate Intrinsic Value | $ 261 | ||
Shares (in shares) | 53,965 | ||
Weighted- Average Exercise Price (in dollars per share) | $ 11.72 | ||
Weighted- Average Remaining Contractual Life | 343 days | ||
Aggregate Intrinsic Value | $ 1,344 | ||
[1] | Represents outstanding options after giving effect to the replacement options issued in connection with the Company's special dividend. |
Note L - Share-based Compensa53
Note L - Share-based Compensation - Transactions with Respect to Restricted Stock (Details) - 3 months ended Jun. 28, 2015 - $ / shares | Total |
Unvested restricted stock at March 29, 2015 (in shares) | 35,000 |
Unvested restricted stock at March 29, 2015 (in dollars per share) | $ 38.07 |
Vested (in shares) | (5,000) |
Vested (in dollars per share) | $ 49.80 |
Note M - Stockholders' Equity (
Note M - Stockholders' Equity (Details Textual) - USD ($) | Mar. 27, 2015 | Mar. 10, 2015 | Jun. 28, 2015 | Jun. 29, 2014 | Mar. 27, 2016 | Jun. 28, 2015 | Mar. 29, 2015 | Sep. 11, 2014 | Jun. 05, 2013 |
Special Cash Dividend [Member] | Scenario, Forecast [Member] | |||||||||
Payments of Ordinary Dividends, Common Stock | $ 250,000 | ||||||||
Special Cash Dividend [Member] | |||||||||
Common Stock, Dividends, Per Share, Declared | $ 25 | $ 25 | |||||||
Payments of Ordinary Dividends, Common Stock | $ 115,100,000 | $ 125,000 | |||||||
Dividends Payable | $ 1,000,000 | ||||||||
Payments of Ordinary Dividends, Common Stock | $ 116,100,000 | $ 125,000 | |||||||
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 | 13,293,670 | 13,293,670 | 10,188,600 | ||||||
Treasury Stock, Shares, Acquired | 135,987 | 4,783,674 | |||||||
Treasury Stock, Value, Acquired, Cost Method | $ 5,360,000 | $ 62,160,000 | |||||||
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 | 115,285 | 115,285 |
Note N - Long-term Debt (Detail
Note N - Long-term Debt (Details Textual) - USD ($) | Mar. 10, 2015 | Mar. 10, 2015 | Jun. 28, 2015 | Jun. 29, 2014 | Mar. 29, 2015 |
Secured Debt [Member] | Maximum [Member] | Option to Redeem at Redemption Price Equal to Percentage of Principal Amount [Member] | |||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 35.00% | ||||
Secured Debt [Member] | Option to Redeem Notes at Redemption Price Equal to the Percentage of Principal Amount plus the Applicable Premium [Member] | Applicable Premium if Percentage of Principal Amount is Greater than Treasury Rate Basis Spread [Member] | |||||
Debt Instrument, Applicable Premium, Percentage of Principal Amount | 1.00% | 1.00% | |||
Secured Debt [Member] | Option to Redeem Notes at Redemption Price Equal to the Percentage of Principal Amount plus the Applicable Premium [Member] | Applicable Premium if Treasury Rate Basis Spread is Greater than Percentage of Principal Amount [Member] | Treasury Rate [Member] | |||||
Debt Instrument, Applicable Premium, Treasury Rate Basis Spread | 0.50% | 0.50% | |||
Secured Debt [Member] | Option to Redeem Notes at Redemption Price Equal to the Percentage of Principal Amount plus the Applicable Premium [Member] | |||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||
Secured Debt [Member] | In the Event of Chang of Control Offer [Member] | |||||
Debt Instrument, Redemption Price, Percentage | 101.00% | ||||
Secured Debt [Member] | In the Event the Company Sells Certain Assets and Fails to Use the Proceeds as Required [Member] | |||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||
Secured Debt [Member] | |||||
Debt Instrument, Face Amount | $ 135,000,000 | $ 135,000,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | 10.00% | |||
Debt Issuance Cost | $ 5,563,000 | ||||
Debt Instrument, Term | 5 years | ||||
Debt Instrument, Fixed Charge Coverage Ratio | 2 | 2 | |||
Debt Instrument, Priority Secured Leverage Ratio | 0.4 | 0.4 | |||
Debt Instrument Secured Leverage Ratio | 3.75 | 3.75 | |||
Debt Instrument, Redemption Price, Percentage | 110.00% | ||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | 10.00% | |||
Payments of Ordinary Dividends, Common Stock | $ 116,100,000 | $ 125,000 |
Note N - Long-term Debt - Summa
Note N - Long-term Debt - Summary of Debt (Details) - USD ($) | Jun. 28, 2015 | Mar. 29, 2015 |
10.000% Senior secured notes due 2020 | $ 135,000,000 | $ 135,000,000 |
Less: unamortized debt discounts and issuance costs | (5,563,000) | (5,860,000) |
$ 129,437,000 | $ 129,140,000 |
Note N - Long-term Debt - Sum57
Note N - Long-term Debt - Summary of Debt (Details) (Parentheticals) | Jun. 28, 2015 | Mar. 29, 2015 |
Interest rate | 10.00% | 10.00% |
Note N - Long-term Debt - Sum58
Note N - Long-term Debt - Summary of Redemption Features (Details) - Scenario, Unspecified [Domain] | 3 Months Ended |
Jun. 28, 2015 | |
Debt Instrument, Redemption, Period One [Member] | |
Redemption percentage | 105.00% |
Debt Instrument, Redemption, Period Two [Member] | |
Redemption percentage | 102.50% |
Debt Instrument, Redemption, Period Three [Member] | |
Redemption percentage | 100.00% |
Uncategorized Items - nath-2015
Label | Element | Value |
us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber | us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber | 40,000 |
us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue | us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue | $ 39.54 |