Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Sep. 28, 2013 | Dec. 27, 2013 | Mar. 30, 2013 | |
Document And Entity Information | ' | ' | ' |
Entity Registrant Name | 'FLANIGANS ENTERPRISES INC | ' | ' |
Entity Central Index Key | '0000012040 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 28-Sep-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--09-28 | ' | ' |
Is Entity a Well-known Seasoned Issuer? | 'No | ' | ' |
Is Entity a Voluntary Filer? | 'No | ' | ' |
Is Entity's Reporting Status Current? | 'Yes | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 1,858,647 | ' |
Entity Common Stock, Par Value per share | $0.10 | ' | ' |
Entity Public Float | ' | ' | $6,183,000 |
Closing price of common stock | ' | ' | $7.70 |
Document Fiscal Period Focus | 'FY | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 28, 2013 | Sep. 29, 2012 |
Statement of Financial Position [Abstract] | ' | ' |
Cash and cash equivalents | $7,058,000 | $7,221,000 |
Prepaid income taxes | 181,000 | ' |
Due from franchisees | 21,000 | ' |
Other receivables | 235,000 | 207,000 |
Inventories | 2,701,000 | 2,516,000 |
Prepaid expenses | 859,000 | 1,118,000 |
Deferred tax asset | 467,000 | 371,000 |
Total Current Assets | 11,522,000 | 11,433,000 |
Property and Equipment, Net | 34,627,000 | 31,595,000 |
Investment in Limited Partnership | 216,000 | 171,000 |
Liquor licenses | 630,000 | 470,000 |
Deferred tax asset | 971,000 | 961,000 |
Leasehold purchases, net | 1,043,000 | 1,177,000 |
Other | 615,000 | 937,000 |
Total other assets | 3,259,000 | 3,545,000 |
Total assets | 49,624,000 | 46,744,000 |
Accounts payable and accrued expenses | 5,985,000 | 5,265,000 |
Income taxes payable | ' | 39,000 |
Due to franchisees | 1,661,000 | 1,231,000 |
Current portion of long term debt | 1,477,000 | 1,732,000 |
Deferred rent | 16,000 | 16,000 |
Total current liabilities | 9,139,000 | 8,283,000 |
Long-Term Debt, Net of Current Maturities | 12,069,000 | 11,686,000 |
Deferred Rent, Net of Current Portion | 130,000 | 147,000 |
Common stock, $.10 par value, 5,000,000 shares authorized; 4,197,642 shares issued; 1,859,447 and 1,860,247 outstanding for years ended 2013 and 2012 | 420,000 | 420,000 |
Capital in excess of par value | 6,240,000 | 6,240,000 |
Retained earnings | 20,107,000 | 18,130,000 |
Treasury stock, at cost, 2,338,195 and 2,337,395 shares for the years ended 2013 and 2012, respectively | -6,067,000 | -6,061,000 |
Total Flanigan's Enterprises, Inc. stockholders' equity | 20,700,000 | 18,729,000 |
Noncontrolling interests | 7,586,000 | 7,899,000 |
Total equity | 28,286,000 | 26,628,000 |
Total liabilities and equity | $49,624,000 | $46,744,000 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 28, 2013 | Sep. 29, 2012 |
Statement of Financial Position [Abstract] | ' | ' |
Common stock, par value | $0.10 | $0.10 |
Common stock, shares authorized | 5,000,000 | 5,000,000 |
Common stock, shares issued | 4,197,642 | 4,197,642 |
Common stock, shares outstanding | 1,859,447 | 1,860,247 |
Treasury stock, shares, at cost | 2,338,195 | 2,337,395 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | |
Sep. 28, 2013 | Sep. 29, 2012 | |
Revenues: | ' | ' |
Restaurant food sales | $52,467,000 | $48,943,000 |
Restaurant bar sales | 14,974,000 | 13,255,000 |
Package store sales | 13,192,000 | 13,214,000 |
Franchise related revenues | 1,237,000 | 1,133,000 |
Owner's fee | 150,000 | 157,000 |
Other operating income | 198,000 | 158,000 |
Rental income | 580,000 | 475,000 |
[SalesRevenueNet] | 82,798,000 | 77,335,000 |
Cost of merchandise sold: | ' | ' |
Restaurant and lounges | 23,789,000 | 22,139,000 |
Package goods | 9,221,000 | 9,112,000 |
Payroll and related costs | 25,421,000 | 23,354,000 |
Occupancy costs | 4,431,000 | 4,328,000 |
Selling, general and administrative expenses | 15,299,000 | 14,831,000 |
[CostsAndExpenses] | 78,161,000 | 73,764,000 |
Income from Operations | 4,637,000 | 3,571,000 |
Other Income (Expense): | ' | ' |
Interest expense | -818,000 | -806,000 |
Interest and other income | 28,000 | 73,000 |
[NonoperatingIncomeExpense] | -790,000 | -733,000 |
Income before Provision for Income Taxes | 3,847,000 | 2,838,000 |
Provision for Income Taxes | -915,000 | -765,000 |
Net Income | 2,932,000 | 2,073,000 |
Less: Net income Attributable to Noncontrolling Interests | -955,000 | -660,000 |
Net Income Attributable to Stockholders | $1,977,000 | $1,413,000 |
Net Income Per Common Share: | ' | ' |
Basic and Diluted | $1.10 | $0.76 |
Weighted Average Shares and Equivalent Shares Outstanding | ' | ' |
Basic and Diluted | 1,859,629 | 1,860,231 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Common Stock | Capital in Excess of Par Value | Retained Earnings | Treasury Stock | Noncontrolling Interests | Total |
Balance, beginning at Oct. 01, 2011 | $420,000 | $6,240,000 | $16,717,000 | ($6,055,000) | $6,602,000 | $23,924,000 |
Balance, shares, beginning at Oct. 01, 2011 | 4,197,642 | ' | ' | 2,336,595 | ' | ' |
Net income | ' | ' | 1,413,000 | ' | 660,000 | 2,073,000 |
Purchase of treasury stock | ' | ' | ' | -6,000 | ' | -6,000 |
Purchase of treasury stock, shares | ' | ' | ' | 800 | ' | ' |
Distributions to noncontrolling interests | ' | ' | ' | ' | -1,255,000 | -1,255,000 |
Contributions by noncontrolling interests | ' | ' | ' | ' | 1,895,000 | 1,895,000 |
Purchase of noncontrolling interests | ' | ' | ' | ' | -3,000 | -3,000 |
Balance, ending at Sep. 29, 2012 | 420,000 | 6,240,000 | 18,130,000 | -6,061,000 | 7,899,000 | 26,628,000 |
Balance, shares, ending at Sep. 29, 2012 | 4,197,642 | ' | ' | 2,337,395 | ' | ' |
Net income | ' | ' | 1,977,000 | ' | 955,000 | 2,932,000 |
Purchase of treasury stock | ' | ' | ' | -6,000 | ' | -6,000 |
Purchase of treasury stock, shares | ' | ' | ' | 800 | ' | ' |
Distributions to noncontrolling interests | ' | ' | ' | ' | -1,263,000 | -1,263,000 |
Purchase of noncontrolling interests | ' | ' | ' | ' | -5,000 | -5,000 |
Balance, ending at Sep. 28, 2013 | $420,000 | $6,240,000 | $20,107,000 | ($6,067,000) | $7,586,000 | $28,286,000 |
Balance, shares, ending at Sep. 28, 2013 | 4,197,642 | ' | ' | 2,338,195 | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |
Sep. 28, 2013 | Sep. 29, 2012 | |
Cash Flows from Operating Activities: | ' | ' |
Net income | $2,932,000 | $2,073,000 |
Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities: | ' | ' |
Depreciation and amortization | 2,453,000 | 2,377,000 |
Amortization of leasehold interests | 134,000 | 151,000 |
Loss on abandonment of property and equipment | 147,000 | 66,000 |
Deferred income taxes | -106,000 | -70,000 |
Deferred rent | -16,000 | -17,000 |
Income from unconsolidated limited partnership | -61,000 | -45,000 |
(Increase) decrease in: | ' | ' |
Due from franchisees | -21,000 | ' |
Other receivables | -28,000 | -55,000 |
Prepaid income taxes | -181,000 | 219,000 |
Inventories | -185,000 | -331,000 |
Prepaid expenses | 751,000 | 422,000 |
Other assets | -26,000 | 193,000 |
Increase (decrease) in: | ' | ' |
Accounts payable and accrued expenses | 720,000 | 591,000 |
Income taxes payable | -39,000 | 39,000 |
Due to franchisees | 270,000 | 599,000 |
Net cash and cash equivalents provided by operating activities | 6,744,000 | 6,212,000 |
Cash Flows from Investing Activities: | ' | ' |
Purchases of property and equipment | -3,417,000 | -1,670,000 |
Deposit on purchase of fixed assets | -41,000 | -315,000 |
Proceeds from sale of fixed assets | 167,000 | 39,000 |
Distributions from unconsolidated limited partnerships | 16,000 | 14,000 |
Purchase of leasehold interest | ' | -95,000 |
Net cash and cash equivalents used in investing activities | -3,275,000 | -2,027,000 |
Cash Flows from Financing Activities: | ' | ' |
Payments of long term debt | -5,358,000 | -1,859,000 |
Proceeds from debt | 3,000,000 | ' |
Purchase of treasury stock | -6,000 | -6,000 |
Distributions to limited partnership minority partners | -1,263,000 | -1,255,000 |
Contributions from limited partnership minority partners | ' | 1,895,000 |
Purchase of non-controlling limited partnership interests | -5,000 | -3,000 |
Net cash and cash equivalents used in financing activities | -3,632,000 | -1,228,000 |
Net Increase (Decrease) in Cash and Cash Equivalents | -163,000 | 2,957,000 |
Cash and Cash Equivalents, Beginning | 7,221,000 | 4,264,000 |
Cash and Cash Equivalents, Ending | 7,058,000 | 7,221,000 |
Supplemental Disclosure of Cash Flow Information: | ' | ' |
Interest | 818,000 | 806,000 |
Income taxes | 845,000 | 577,000 |
Supplemental Disclosure for Non-Cash Investing and Financing Activities: | ' | ' |
Financing of insurance contracts | 492,000 | 421,000 |
Purchase deposits transferred to property and equipment | 292,000 | 30,000 |
Purchase of vehicle in exchange for debt | 43,000 | ' |
Purchase of property in exchange for debt | 1,950,000 | 6,100,000 |
Purchase of liquor license in exchange for debt | $160,000 | ' |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Sep. 28, 2013 | |
Accounting Policies [Abstract] | ' |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Organization and Capitalization | |
The Company was incorporated in 1959 and operates in South Florida as a chain of full-service restaurants and package liquor stores. Restaurant food and beverage sales make up the majority of our total revenue. At September 28, 2013, we (i) operated 25 units, (excluding the adult entertainment club referenced in (ii) below), consisting of restaurants, package liquor stores and combination restaurants/package liquor stores that we either own or have operational control over and partial ownership in; (ii) own but do not operate one adult entertainment club; and (iii) franchise an additional five units, consisting of two restaurants, (one of which we operate) and three combination restaurants/package liquor stores. With the exception of one restaurant we operate under the name “The Whale’s Rib”, and in which we do not have an ownership interest, all of the restaurants operate under our service mark “Flanigan’s Seafood Bar and Grill” and all of the package liquor stores operate under our service mark “Big Daddy’s Liquors”. | |
The Company’s Articles of Incorporation, as amended, authorize us to issue and have outstanding at any one time 5,000,000 shares of common stock at a par value of $0.10 per share. | |
We operate under a 52-53 week year ending the Saturday closest to September 30. Our fiscal years 2013 and 2012 are each comprised of a 52-week period. | |
Principles of Consolidation | |
The consolidated financial statements include the accounts of the Company and our subsidiaries, all of which are wholly owned, and the accounts of the nine limited partnerships in which we act as general partner and have controlling interests. All significant intercompany transactions and balances have been eliminated in consolidation. | |
Use of Estimates | |
The consolidated financial statements and related disclosures are prepared in conformity with accounting principles generally accepted in the U.S. We are required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and revenue and expenses during the period reported. These estimates include assessing the estimated useful lives of tangible assets and the recognition of deferred tax assets and liabilities. Estimates and assumptions are reviewed periodically and the effects of revisions are reflected in our consolidated financial statements in the period they are determined to be necessary. Although these estimates are based on our knowledge of current events and actions we may undertake in the future, they may ultimately differ from actual results. | |
Cash and Cash Equivalents | |
We consider all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash equivalents. | |
Inventories | |
Our inventories, which consist primarily of package liquor products, are stated at the lower of average cost or market. | |
Liquor Licenses | |
In accordance with the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 350, “Intangibles - Goodwill and Other”, our liquor licenses are indefinite lived assets, which are not being amortized, but are tested annually for impairment (see Note 7). | |
Property and Equipment | |
Our property and equipment are stated at cost. We capitalize expenditures for major improvements and depreciation commences when the assets are placed in service. We record depreciation on a straight-line basis over the estimated useful lives of the respective assets. We charge maintenance and repairs, which do not improve or extend the life of the respective assets, to expense as incurred. When we dispose of assets, the cost and related accumulated depreciation are removed from the accounts and any gain or loss is included in income. | |
Our estimated useful lives range from three to five years for vehicles, and three to seven years for furniture and equipment. Leasehold improvements are currently being amortized over the shorter of the life of the lease or the life of the asset up to a maximum of 20 years. The building and building improvements of our corporate offices in Fort Lauderdale, Florida; our combination restaurant and package liquor stores in Hallandale, Florida, Hollywood, Florida and North Miami, Florida; our restaurant in Fort Lauderdale, Florida; and our shopping center in Miami, Florida, all of which we own, are being depreciated over forty years. | |
Leasehold Interests | |
Our purchase of an existing restaurant location usually includes a lease to the business premises. As a result, a portion of the purchase price is allocated to the leasehold interest. We capitalize the cost of the leasehold interest and amortization commences upon our assumption of the lease. We amortize leasehold interests on a straight line basis over the remaining term of the lease. | |
Investment in Limited Partnerships | |
We use the consolidation method of accounting when we have a controlling interest in other companies and limited partnerships. We use the equity method of accounting when we have an interest between twenty to fifty percent in other companies and limited partnerships, but do not exercise control. Under the equity method, our original investments are recorded at cost and are adjusted for our share of undistributed earnings or losses. All significant intercompany profits are eliminated. | |
Concentrations of Credit Risk | |
Financial instruments that potentially subject us to concentrations of credit risk are cash and cash equivalents. | |
Cash and Cash Equivalents | |
We maintain deposit balances with financial institutions which balances may, from time to time, exceed the federally insured limits, which are $250,000 for interest bearing accounts. In addition, from December 31, 2010 through December 31, 2012, our financial banking institutions participated in the Temporary Liquidity Guarantee Program, which program provided FDIC coverage on the full balance of non-interest bearing deposits, but since January 1, 2013, the balance of our non-interest bearing deposits no longer receive full FDIC insurance coverage. Effective January 1, 2013, FDIC insurance coverage on non-interest bearing deposits is limited to the standard $250,000 maximum deposit insurance amount. At September 28, 2013, we have deposits of approximately $5,301,000 in excess of federally insured limits. We have not experienced any losses in such accounts. | |
Major Supplier | |
Throughout our fiscal years 2013 and 2012, we purchased substantially all of our food products from one major supplier pursuant to a master distribution agreement which entitled us to receive certain purchase discounts, rebates and advertising allowances. We believe that several other alternative vendors are available, if necessary. | |
Revenue Recognition | |
We record revenues from normal recurring sales upon the sale of food and beverages and the sale of package liquor products. We report our sales net of sales tax. Continuing royalties, which are a percentage of net sales of franchised stores, are accrued as income when earned. | |
Pre-opening Costs | |
Our pre-opening costs are those typically associated with the opening of a new restaurant and generally include payroll costs associated with the “new restaurant openers” (a team of select employees who travel to new restaurants to ensure that our high standards for quality are met), rent and promotional costs. We expense pre-opening costs as incurred. During our fiscal years 2013 and 2012, we reported losses of $208,000 and $107,000 respectively, primarily due to pre-opening costs associated with the new limited partnership restaurant in Miami, Florida. | |
Advertising Costs | |
Our advertising costs are expensed as incurred. Advertising costs incurred during our fiscal years ended September 28, 2013 and September 29, 2012 were approximately $454,000 and $531,000 respectively. | |
General Liability Insurance | |
We have general liability insurance which incorporates a semi-self-insured plan under which we assume the full risk of the first $50,000 of exposure per occurrence, while the limited partnerships assume the full risk of the first $10,000 of exposure per occurrence. Our insurance carrier is responsible for $1,000,000 coverage per occurrence above our self-insured deductible, up to a maximum aggregate of $2,000,000 per year. During our fiscal years ended September 28, 2013 and September 29, 2012, we were able to purchase excess liability insurance, whereby our excess insurance carrier is responsible for $6,000,000 coverage above our primary general liability insurance coverage. With the exception of one (1) limited partnership which has higher general liability insurance coverage to comply with the terms of its lease for the business premises, we are un-insured against liability claims in excess of $7,000,000 per occurrence and in the aggregate. | |
Our general policy is to settle only those legitimate and reasonable claims asserted and to aggressively defend and go to trial, if necessary, on frivolous and unreasonable claims. Under our current liability insurance policy, any expense incurred by us in defending a claim, including adjusters and attorney's fees, are a part of our $50,000 or $10,000, as applicable, self-insured retention. | |
Fair Value of Financial Instruments | |
The respective carrying value of certain of our on-balance-sheet financial instruments approximated their fair value. These instruments include cash and cash equivalents, other receivables, accounts payables, accrued expenses and debt. We have assumed carrying values to approximate fair values for those financial instruments, which are short-term in nature or are receivable or payable on demand. We estimated the fair value of debt based on current rates offered to us for debt of comparable maturities and similar collateral requirements. | |
In accordance with FASB ASC Topic 820-10-50-1, we utilized a valuation model to determine the fair value of our swap agreements. As the valuation models for the swap agreements were based upon observable inputs, they are classified as Level 2 (see Note 11). | |
Derivative Instruments | |
We account for derivative instruments in accordance with FASB ASC Topic 815-10-05-4, “Accounting for Derivative Instruments and Hedging Activities” as amended, which establishes accounting and reporting standards for derivative instruments, including certain derivative instruments embedded in other contracts, and hedging activities. In accordance with FASB ASC Topic 815-10-05-4, derivative instruments are recognized as assets or liabilities in the Company’s consolidated balance sheets and are measured at fair value. We recognized all changes in fair value through earnings unless the derivative is determined to be an effective hedge. We currently have five derivatives which we have designated as effective hedges (See Note 11). | |
Income Taxes | |
We account for our income taxes using FASB ASC Topic 740, “Income Taxes”, which requires the recognition of deferred tax liabilities and assets for expected future tax consequences of events that have been included in the consolidated financial statements or tax returns. Under this method, deferred tax liabilities and assets are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. | |
We adopted the provisions regarding Accounting for Uncertainty in Income Taxes, which require the recognition of a financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more likely than not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. We applied these changes to tax positions for our fiscal years ending September 28, 2013 and September 29, 2012. We had no material unrecognized tax benefits and no adjustments to our financial position, results of operations or cash flows were required. Generally, federal, state and local authorities may examine the Company’s tax returns for three years from the date of filing and the current and prior three years remain subject to examination as of September 28, 2013. We do not expect that unrecognized tax benefits will increase within the next twelve months. We recognize accrued interest and penalties related to uncertain tax positions as income tax expense. | |
Stock-Based Compensation | |
We follow FASB ASC Topic 718, “Compensation – Stock Compensation” to account for stock-based employee compensation, which generally requires, among other things that all employee share-based compensation be measured using a fair value method and that resulting compensation costs be recognized in the consolidated financial statements. We had no unvested stock options as of January 1, 2006 and granted no stock options subsequent thereto, including our fiscal years 2013 and 2012, so there is no compensation expense recorded in our consolidated financial statements for our fiscal years 2013 or 2012. | |
Long-Lived Assets | |
We continually evaluate whether events and circumstances have occurred that may warrant revision of the estimated life of our intangible and other long-lived assets or whether the remaining balance of our intangible and other long-lived assets should be evaluated for possible impairment. If and when such factors, events or circumstances indicate that intangible or other long-lived assets should be evaluated for possible impairment, we will determine the fair value of the asset by making an estimate of expected future cash flows over the remaining lives of the respective assets and compare that fair value with the carrying value of the assets in measuring their recoverability. In determining the expected future cash flows, the assets will be grouped at the lowest level for which there are cash flows, at the individual store level. | |
Earnings Per Share | |
We follow FASB ASC Topic 260 - “Earnings per Share.” This section provides for the calculation of basic and diluted earnings per share. Basic earnings per share includes no dilution and is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share assumes the exercise of options granted if the weighted average market price exceeds the exercise price. Earnings per share are computed by dividing income available to common stockholders by the basic and diluted weighted average number of common shares. | |
Recently Adopted and Recently Issued Accounting Pronouncements | |
Adopted | |
In July 2013, the FASB issued ASU 2013-10, Derivatives and Hedging (Topic 815): Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes. The amendments in this Update permit the Fed Funds Effective Swap Rate (OIS) to be used as a U.S. benchmark interest rate for hedge accounting purposes under Topic 815, in addition to UST and LIBOR. The amendments also remove the restriction on using different benchmark rates for similar hedges. The amendments are effective prospectively for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. This ASU is not expected to have a significant impact on our consolidated financial statements. | |
In May 2011, the FASB issued an update to ASC Topic 820 – “Fair Value Measurements and Disclosures”. This update provides guidance on how fair value accounting should be applied where its use is already required or permitted by other standards and does not extend the use of fair value accounting. We adopted this guidance in the first quarter of our fiscal year 2013 as required, and the adoption did not have a significant impact on our consolidated financial statements. | |
Issued | |
In July 2013, the FASB issued ASU 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This Update applies to all entities that have unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. An unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The assessment of whether a deferred tax asset is available is based on the unrecognized tax benefit and deferred tax asset that exist at the reporting date and should be made presuming disallowance of the tax position at the reporting date. The amendments in this Update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption is permitted. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. This ASU is not expected to have a significant impact on our consolidated financial statements. | |
PROPERTY_AND_EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended | ||||||||
Sep. 28, 2013 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
PROPERTY AND EQUIPMENT | ' | ||||||||
NOTE 2. PROPERTY AND EQUIPMENT | |||||||||
2013 | 2012 | ||||||||
Furniture and equipment | $ | 10,821,000 | $ | 10,269,000 | |||||
Leasehold improvements | 20,599,000 | 18,905,000 | |||||||
Land and land improvements | 14,595,000 | 12,030,000 | |||||||
Building and improvements | 12,305,000 | 10,557,000 | |||||||
Vehicles | 776,000 | 751,000 | |||||||
57,664,000 | 52,512,000 | ||||||||
Less accumulated depreciation and amortization | 23,037,000 | 20,917,000 | |||||||
$ | 34,627,000 | $ | 31,595,000 | ||||||
Depreciation and amortization expense for the fiscal years ended September 28, 2013 and September 29, 2012 was approximately $2,453,000 and $2,377,000, respectively. | |||||||||
LEASEHOLD_INTERESTS
LEASEHOLD INTERESTS | 12 Months Ended | ||||||||
Sep. 28, 2013 | |||||||||
Leases [Abstract] | ' | ||||||||
LEASEHOLD INTERESTS | ' | ||||||||
NOTE 3. LEASEHOLD INTERESTS | |||||||||
2013 | 2012 | ||||||||
Leasehold interests, at cost | $ | 3,024,000 | $ | 3,024,000 | |||||
Less accumulated amortization | 1,981,000 | 1,847,000 | |||||||
$ | 1,043,000 | $ | 1,177,000 | ||||||
Future leasehold amortization as of September 28, 2013 is as follows: | |||||||||
2014 | $ | 134,000 | |||||||
2015 | 128,000 | ||||||||
2016 | 122,000 | ||||||||
2017 | 122,000 | ||||||||
2018 | 122,000 | ||||||||
Thereafter | 415,000 | ||||||||
Total | $ | 1,043,000 | |||||||
INVESTMENT_IN_LIMITED_PARTNERS
INVESTMENT IN LIMITED PARTNERSHIPS | 12 Months Ended | ||||||||
Sep. 28, 2013 | |||||||||
Investment In Limited Partnerships | ' | ||||||||
INVESTMENT IN LIMITED PARTNERSHIPS | ' | ||||||||
NOTE 4. INVESTMENTS IN LIMITED PARTNERSHIPS | |||||||||
We have invested with others (some of whom are affiliated with our officers and directors) in ten limited partnerships which own and operate ten South Florida based restaurants under our service mark “Flanigan’s Seafood Bar and Grill”. In addition to being a limited partner in these limited partnerships, we are the sole general partner of all of these limited partnerships and manage and control the operations of the restaurants except for the restaurant located in Fort Lauderdale, Florida where we only hold a limited partnership interest. | |||||||||
Generally, the terms of the limited partnership agreements provide that until the investors’ cash investment in a limited partnership (including any cash invested by us) is returned in full, the limited partnership distributes to the investors annually out of available cash from the operation of the restaurant, as a return of capital, up to 25% of the cash invested in the limited partnership, with no management fee paid to us. Any available cash in excess of the 25% of the cash invested in the limited partnership distributed to the investors annually, is paid one-half (½) to us as a management fee and one-half (1/2) to the investors (including us) prorata based upon the investors’ investment, as a return of capital. Once all of the investors (including us) have received, in full, amounts equal to their cash invested, an annual management fee becomes payable to us equal to one-half (½) of cash available to be distributed, with the other one half (½) of available cash distributed to the investors (including us) as a profit distribution, pro-rata based upon the investors’ investment. | |||||||||
As of September 28, 2013, limited partnerships owning three (3) restaurants, (Surfside, Florida, Kendall, Florida and West Miami, Florida locations), have returned all cash invested and we receive an annual management fee equal to one-half (½) of the cash available for distribution by the limited partnership. In addition to our receipt of distributable amounts from the limited partnerships, we receive a fee equal to 3% of gross sales for use of our “Flanigan’s Seafood Bar and Grill” service mark, which use is authorized only while we act as general partner. This 3% fee is “earned” when sales are made by the limited partnerships and is paid weekly, in arrears. | |||||||||
Surfside, Florida | |||||||||
We are the sole general partner and a 45% limited partner in this limited partnership which has owned and operated a restaurant in Surfside, Florida under our “Flanigan’s Seafood Bar and Grill” service mark since March 6, 1998. 34.9% of the remaining limited partnership interest is owned by persons who are either our officers, directors or their family members. This limited partnership has returned to its investors all of their initial cash invested and we receive an annual management fee equal to one-half (½) of the cash available for distribution by the limited partnership. This entity is consolidated in the accompanying financial statements. | |||||||||
Kendall, Florida | |||||||||
We are the sole general partner and a 41% limited partner in this limited partnership which has owned and operated a restaurant in Kendall, Florida under our “Flanigan’s Seafood Bar and Grill” service mark since April 4, 2000. 29.7% of the remaining limited partnership interest is owned by persons who are either our officers, directors or their family members. This limited partnership has returned to its investors all of their initial cash invested and we receive an annual management fee equal to one-half (½) of the cash available for distribution by the limited partnership. This entity is consolidated in the accompanying financial statements. | |||||||||
West Miami, Florida | |||||||||
We are the sole general partner and a 27% limited partner in this limited partnership which has owned and operated a restaurant in West Miami, Florida under our “Flanigan’s Seafood Bar and Grill” service mark since October 11, 2001. 34.1% of the remaining limited partnership interest is owned by persons who are either our officers, directors or their family members. This limited partnership has returned to its investors all of their initial cash invested and we receive an annual management fee equal to one-half (½) of the cash available for distribution by the limited partnership. This entity is consolidated in the accompanying financial statements. | |||||||||
Weston, Florida | |||||||||
We are the sole general partner and a 30% limited partner in this limited partnership which has owned and operated a restaurant in Weston, Florida under our “Flanigan’s Seafood Bar and Grill” service mark since January 20, 2003. 35.1% of the remaining limited partnership interest is owned by persons who are either our officers, directors or their family members. As of the end of our fiscal year 2013, this limited partnership has returned to its investors approximately 81.25% of their initial cash invested. During our fiscal year 2013, no distributions were made to limited partners as this limited partnership had limited positive cash flow generated by this restaurant. This entity is consolidated in the accompanying financial statements. | |||||||||
Wellington, Florida | |||||||||
We are the sole general partner and a 28% limited partner in this limited partnership which has owned and operated a restaurant in Wellington, Florida under our “Flanigan’s Seafood Bar and Grill” service mark since May 27, 2005. 25.7% of the remaining limited partnership interest is owned by persons who are either our officers, directors or their family members. As of the end of our fiscal year 2013, this limited partnership has returned to its investors approximately 65% of their initial cash invested, increased from approximately 56% as of the end of our fiscal year 2012. This entity is consolidated in the accompanying financial statements. | |||||||||
Pinecrest, Florida | |||||||||
We are the sole general partner and 40% limited partner in this limited partnership which has owned and operated a restaurant in Pinecrest, Florida under our “Flanigan’s Seafood Bar and Grill” service mark since August 14, 2006. 15.0% of the remaining limited partnership interest is owned by persons who are either our officers, directors or their family members. As of the end of our fiscal year 2013, this limited partnership has returned to its investors approximately 92% of their initial cash invested, increased from approximately 80% as of the end of our fiscal year 2012. This entity is consolidated in the accompanying financial statements. | |||||||||
Pembroke Pines, Florida | |||||||||
We are the sole general partner and an 18% limited partner in this limited partnership which has owned and operated a restaurant in Pembroke Pines, Florida under our “Flanigan’s Seafood Bar and Grill” service mark since October 29, 2007. 17.9% of the remaining limited partnership interest is owned by persons who are either our officers, directors or their family members. As of the end of our fiscal year 2013, this limited partnership has returned to its investors approximately 45.0% of their initial cash invested, increased from approximately 41.0% as of the end of our fiscal year 2012. This entity is consolidated in the accompanying financial statements. | |||||||||
Davie, Florida | |||||||||
We are the sole general partner and a 48% limited partner in this limited partnership which has owned and operated a restaurant in Davie, Florida under our “Flanigan’s Seafood Bar and Grill” service mark since July 28, 2008. 9.7% of the remaining limited partnership interest is owned by persons who are either our officers, directors or their family members. As of the end of our fiscal year 2013, this limited partnership has returned to its investors approximately 35.5% of their initial cash invested, increased from approximately 27.5% as of the end of our fiscal year 2012. This entity is consolidated in the accompanying financial statements. | |||||||||
Miami, Florida | |||||||||
We are the sole general partner and a 5% limited partner in this limited partnership which has owned and operated a restaurant in Miami, Florida under our “Flanigan’s Seafood Bar and Grill” service mark since December 27, 2012. 24.3% of the remaining limited partnership interest is owned by persons who are either our officers, directors or their family members. As of the end of our fiscal year 2013, this limited partnership has returned to its investors approximately 6.0% of their initial cash invested. This entity is consolidated in the accompanying financial statements. | |||||||||
Fort Lauderdale, Florida | |||||||||
A corporation, owned by a member of our Board of Directors, acts as sole general partner of a limited partnership which has owned and operated a restaurant in Fort Lauderdale, Florida under our “Flanigan’s Seafood Bar and Grill” service mark since April 1, 1997. We have a 25% limited partnership interest in this limited partnership. 60.1% of the remaining limited partnership interest is owned by persons who are either our officers, directors or their family members. We have a franchise arrangement with this limited partnership. For accounting purposes, we do not consolidate the operations of this limited partnership into our operations. This entity is reported using the equity method in the accompanying consolidated financial statements. The following is a summary of condensed unaudited financial information pertaining to our limited partnership investment in Fort Lauderdale, Florida: | |||||||||
Financial Position: | 2013 | 2012 | |||||||
Current assets | $ | 453,000 | $ | 277,000 | |||||
Non-current assets | 418,000 | 439,000 | |||||||
Current liabilities | 114,000 | 141,000 | |||||||
Operating Results: | |||||||||
Revenues | 2,777,000 | 2,641,000 | |||||||
Gross profit | 1,847,000 | 1,751,000 | |||||||
Net income | 242,000 | 181,000 |
INVESTMENT_IN_REAL_PROPERTY_FI
INVESTMENT IN REAL PROPERTY FINANCED BY DEBT | 12 Months Ended |
Sep. 28, 2013 | |
Investment In Real Property Financed By Debt | ' |
INVESTMENT IN REAL PROPERTY FINANCED BY DEBT | ' |
NOTE 5. INVESTMENT IN REAL PROPERTY FINANCED BY DEBT | |
N. Miami, Florida | |
During the first quarter of our fiscal year 2013, we closed on the purchase of two parcels of real property (the “Two Mortgaged Parcels”), one of which (the “Near Parcel”) is contiguous to the real property we own where our combination package liquor store and restaurant located at 13205 Biscayne Boulevard, North Miami, Florida, (Store #20) operates and the other of which is contiguous to the Near Parcel (the “Other Parcel”). We previously leased the Near Parcel for non-exclusive parking. Each of the Mortgaged Parcels contains a building of approximately 2,600 square feet, but we intend to demolish the building on the Near Parcel to provide for a larger parking lot to be used by our customers. We intend to offer the building on the Other Parcel for lease. We paid $2,900,000 for the Two Mortgaged Parcels, $1,950,000 of which was financed by the seller pursuant to a purchase money mortgage (the “$1.95M Mortgage Loan”). Our repayment obligations under the $1.95M Mortgage Loan are secured by a first mortgage on the Two Mortgaged Parcels. The $1.95M Mortgage Loan bears interest at the rate of 7.5% annually and is amortized over twenty (20) years, with our monthly payment of principal and interest totaling $15,700. The entire principal balance, in the approximate amount of $1,331,000 and all accrued but unpaid interest under the $1.95M Mortgage Loan is due on December 31, 2022. The balance outstanding under the loan was approximately $1,921,000 as of September 28, 2013. |
REFINANCING_OF_EXISTING_DEBT_L
RE-FINANCING OF EXISTING DEBT; LINE OF CREDIT | 12 Months Ended |
Sep. 28, 2013 | |
Re-Financing Of Existing Debt Line Of Credit | ' |
RE-FINANCING OF EXISTING DEBT; LINE OF CREDIT | ' |
NOTE 6. RE-FINANCING OF EXISTING DEBT; LINE OF CREDIT | |
Re-Financing of Existing Mortgage | |
During the second quarter of our fiscal year 2013, in order to refinance our third party debt secured by our real property located at 4 N. Federal Highway, Hallandale, Florida where our combination package liquor store and restaurant (Store #31) operates, we (i) re-financed with a non-affiliated third party lender, the mortgage loan encumbering the property which mortgage loan was held by another non-affiliated third party lender (the “$1.405M Loan”); and (ii) borrowed $1,595,000 from a non-affiliated third party lender, (the “$1.595M Term Loan”). The $1.405M Loan bears interest at a variable rate equal to the BBA LIBOR – 1 Month plus 2.25%, (2.43% September 28, 2013). We entered into an interest rate swap agreement to hedge the interest rate risk, which fixed the interest rate on the $1.405M Loan at 4.35% per annum throughout its term. The $1.405M Loan is amortized over twenty (20) years, with our current monthly payment of principal and interest totaling $8,415, with the entire principal balance and all accrued but unpaid interest due January 31, 2023. The $1.595M Term Loan bears interest at a variable interest rate equal to the BBA LIBOR – 1 Month plus 3.25% (3.43% as of September 28, 2013). We entered into an interest rate swap agreement to hedge the interest rate risk, which fixed the interest rate on the $1.595M Term Loan at 4.00% per annum throughout its term. The $1.595M Term Loan is fully amortized over forty two (42) months, with our monthly payment of principal and interest, totaling $41,000. We granted our lender a security interest in substantially all of our assets as collateral to secure our repayment obligations under the $1.595M Term Loan. As a part of the refinancing, we prepaid the outstanding balance, ($325,000), on an existing term loan with the lender, including a $1,600 pre-payment penalty. | |
Line of Credit | |
During the second quarter of our fiscal year 2013, we obtained a $500,000 line of credit from a non affiliated third party lender, (the “Line of Credit”). The Line of Credit earned interest at the floating rate of prime plus 1.5%. The entire principal balance and all accrued but unpaid interest under the Line of Credit was due April 30, 2013. We granted the lender a security interest in substantially all of our assets as collateral to secure our repayment obligations under the Line of Credit. No amounts were drawn on the line of credit by us, so there were no amounts outstanding under the Line of Credit when it terminated during the third quarter of our fiscal year 2013. |
LIQUOR_LICENSES
LIQUOR LICENSES | 12 Months Ended |
Sep. 28, 2013 | |
LiquorLicensesAbstract | ' |
LIQUOR LICENSES | ' |
NOTE 7. LIQUOR LICENSES | |
Liquor licenses, which are indefinite lived assets, are tested for impairment in September of each of our fiscal years. The fair value of liquor licenses at September 28, 2013, exceeded the carrying amount; therefore, we recognized no impairment loss. The fair value of the liquor licenses was evaluated by comparing the carrying value to recent sales for similar liquor licenses in the County issued. At September 28, 2013 and September 29, 2012, the total carrying amount of our liquor licenses were $630,000 and $470,000, respectively. We acquired one (1) liquor license from a franchisee in our fiscal year 2013 and no liquor licenses in our fiscal year 2012. | |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||
Sep. 28, 2013 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
INCOME TAXES | ' | ||||||||
NOTE 8. INCOME TAXES | |||||||||
The components of our provision for income taxes for our fiscal years 2013 and 2012 are as follows: | |||||||||
2013 | 2012 | ||||||||
Current: | $ | 803,000 | $ | 660,000 | |||||
Federal | 218,000 | 175,000 | |||||||
State | 1,021,000 | 835,000 | |||||||
Deferred: | (96,000 | ) | (63,000 | ) | |||||
Federal | (10,000 | ) | (7,000 | ) | |||||
State | (106,000 | ) | (70,000 | ) | |||||
$ | 915,000 | $ | 765,000 | ||||||
A reconciliation of income tax computed at the statutory federal rate to income tax expense is as follows: | |||||||||
2013 | 2012 | ||||||||
Tax provision at the statutory rate of 34% | $ | 983,000 | $ | 741,000 | |||||
State income taxes, net of federal income tax | 121,000 | 94,000 | |||||||
FICA tip credit | (241,000 | ) | (227,000 | ) | |||||
True up adjustment | 22,000 | 110,000 | |||||||
Other permanent items | 30,000 | 47,000 | |||||||
$ | 915,000 | $ | 765,000 | ||||||
We have deferred tax assets which arise primarily due to depreciation recorded at different rates for tax and book purposes offset by cost basis differences in depreciable assets due to the deferral of the recognition of insurance recoveries on casualty losses for tax purposes, investments in and management fees paid by limited partnerships, accruals for potential uninsured claims, bonuses accrued for book purposes but not paid within two and a half months for tax purposes, the capitalization of certain inventory costs for tax purposes not recognized for financial reporting purposes, the recognition of revenue from gift cards not redeemed within twelve months of issuance, allowances for uncollectable receivables, unfunded limited retirement commitments and tax credit carryforwards generated as a result of the application of alternative minimum taxes. | |||||||||
The components of our deferred tax assets at September 28, 2013 and September 29, 2012 were as follows: | |||||||||
2013 | 2012 | ||||||||
Current: | |||||||||
Reversal of aged payables | $ | 27,000 | $ | 27,000 | |||||
Capitalized inventory costs | 26,000 | 25,000 | |||||||
Accrued bonuses | 222,000 | 188,000 | |||||||
Accruals for potential uninsured claims | 57,000 | 30,000 | |||||||
Gift cards | 108,000 | 72,000 | |||||||
Limited partnership management fees | 27,000 | 29,000 | |||||||
$ | 467,000 | $ | 371,000 | ||||||
Long-Term: | |||||||||
Book/tax differences in property and equipment | $ | 632,000 | $ | 540,000 | |||||
Limited partnership investments | 299,000 | 386,000 | |||||||
Accrued limited retirement | 40,000 | 35,000 | |||||||
$ | 971,000 | $ | 961,000 |
DEBT
DEBT | 12 Months Ended | ||||||||
Sep. 28, 2013 | |||||||||
Debt | ' | ||||||||
DEBT | ' | ||||||||
NOTE 9. DEBT | |||||||||
Long-Term Debt | |||||||||
2013 | 2012 | ||||||||
Mortgage payable to lender, secured by a first mortgage on real property and improvements, bearing interest at BBA LIBOR – 1 Month +2.25%, (2.43% at September 28, 2013), but with $3,750,000 of the principal amount fixed at 4.51% pursuant to a swap agreement, amortized over 20 years, payable in monthly installments of principal and interest of approximately $23,700, and our current monthly payment of principal and interest as to that portion of the principal amount not fixed by the interest rate swap agreement, ($750,000), is payable at BBA LIBOR – 1 Month + 2.25% interest rate, (2.43% as of September 28, 2013). The entire principal balance and all accrued but unpaid interest is due on December 1, 2019. | $ | 4,106,000 | $ | 4,331,000 | |||||
Mortgage payable to lender, secured by a first mortgage on real property and improvements, bearing interest at 7½%, payable in monthly installments of principal and interest of $28,600, with a balloon payment of approximately $2,833,000 in October, 2013. This loan was paid off early in January, 2013. | — | 2,958,000 | |||||||
Mortgage payable to unrelated third party, secured by first mortgage on real property and improvements, bearing interest at 7½%, amortized over 20 years, payable in monthly installments of principal and interest of approximately $15,700, with a balloon payment of approximately $1,331,000 in December, 2022. | 1,921,000 | — | |||||||
Mortgage payable to lender, secured by a first mortgage on real property and improvements, bearing interest at BBA LIBOR – 1 Month +2.25%, (2.43% at September 28, 2013), but with the principal amount fixed at 4.35% pursuant to a swap agreement, amortized over 20 years, payable in monthly installments of principal and interest of approximately $8,415, with a balloon payment of approximately $858,000 on January 31, 2023. | 1,375,000 | — | |||||||
Term loan payable to lender, secured by a blanket loan on all Company assets, bearing interest at BBA LIBOR – 1 Month + 3.25%, (3.43% at September 28, 2013), but fixed at 4.00% pursuant to a swap agreement, payable in forty two (42) monthly installments of principal and interest of approximately $41,000, with the final payment due July 24, 2016. | 1,307,000 | — | |||||||
Term loan payable to lender, secured by a blanket loan on all Company assets, bearing interest at BBA LIBOR – 1 Month + 2.25%, (2.43% at September 28, 2013), but fixed at 3.43%, pursuant to a swap agreement, payable in monthly installments of principal and interest of approximately $38,000, payable interest only for 3 months and then fully amortized over 45 months, with the final payment due December 1, 2015. | 960,000 | 1,387,000 | |||||||
Term loan payable to lender, secured by a blanket lien on all Company assets and a second mortgage on a building, bearing interest at BBA LIBOR +3.25%, but fixed at 4.55%, pursuant to a swap agreement, payable in monthly installments of principal and interest of approximately $50,000, fully amortized over 36 months, with the final payment due August, 2013. | — | 508,000 | |||||||
Mortgage payable to a related third party, secured by first mortgage on real property and improvements, bearing interest at 10%, amortized over 15 years, payable in monthly installments of principal and interest of approximately $10,800, with a balloon payment of approximately $658,000 due in September, 2018. | 902,000 | 939,000 | |||||||
Mortgage payable to lender, secured by a first mortgage on real property and improvements, bearing interest at BBA LIBOR +2.25%, (2.43% at September 28, 2013), but fixed at 5.11% pursuant to a swap agreement, amortized over 20 years, payable in monthly installments of principal and interest of approximately $4,600, with a balloon payment of approximately $720,000 due in August, 2017. | 849,000 | 879,000 | |||||||
Mortgage payable to unrelated third party, secured by first mortgage on real property and improvements, bearing interest at 8½%, amortized over 15 years, payable in monthly installments of principal and interest of approximately $8,400, with a balloon payment of approximately $537,000 in November, 2017. | 723,000 | 760,000 | |||||||
Mortgage payable to unrelated third party, secured by first mortgage on real property and improvements, bearing interest at 10.0%; amortized over 30 years, payable in monthly installments of principal and interest of approximately $4,000, with a balloon payment of approximately $413,000 in May, 2017. | 429,000 | 433,000 | |||||||
Financed insurance premiums, secured by all insurance policies, bearing interest between 2.99% and 4.89%, payable in monthly installments of principal and interest in the aggregate amount of $24,000 a month through October 1, 2013. | 116,000 | 333,000 | |||||||
Mortgage payable to related third party, secured by first mortgage on real property and improvements, bearing interest at 10%, amortized over 15 years, payable in monthly installments of principal and interest of approximately $9,100, with a balloon payment of approximately $555,000 due in January, 2019. | 775,000 | 806,000 | |||||||
Other | 83,000 | 84,000 | |||||||
13,546,000 | 13,418,000 | ||||||||
Less current portion | 1,477,000 | 1,732,000 | |||||||
$ | 12,069,000 | $ | 11,686,000 | ||||||
Long-term debt at September 28, 2013 matures as follows: | |||||||||
2014 | 1,477,000 | ||||||||
2015 | 1,361,000 | ||||||||
2016 | 1,054,000 | ||||||||
2017 | 2,179,000 | ||||||||
2018 | 1,086,000 | ||||||||
Thereafter | 6,389,000 | ||||||||
$ | 13,546,000 | ||||||||
As of September 28, 2013, we are in compliance with the covenants of all loans with our lender. |
COMMITMENTS_CONTINGENCIES_AND_
COMMITMENTS, CONTINGENCIES AND OTHER MATTERS | 12 Months Ended | ||||||||
Sep. 28, 2013 | |||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||
COMMITMENTS, CONTINGENCIES AND OTHER MATTERS | ' | ||||||||
NOTE 10. COMMITMENTS, CONTINGENCIES AND OTHER MATTERS | |||||||||
Legal Matters | |||||||||
We are a party to various claims, legal actions and complaints arising in the ordinary course of our business. It is our opinion that all such matters are without merit or involve such amounts that an unfavorable disposition would not have a material adverse effect on our financial position or results of operations. | |||||||||
Leases | |||||||||
We lease a substantial portion of the land and buildings used in our operations under leases with initial terms expiring between 2014 and 2027. Renewal options are available on many of our leases. Most of our leases are fixed rent agreements. For one Company-owned restaurant/package liquor store combination unit, lease rental is subject to sales overrides ranging from 3% to 4% of annual sales in excess of established amounts. For another Company-owned restaurant, lease rental is subject to sales overrides of 7.3% of annual sales in excess of the base rent paid. For five limited partnership restaurants, lease rentals are subject to sales overrides ranging from 2% to 5.5% of annual sales in excess of the base rent paid. We recognize rent expense on a straight line basis over the term of the lease and percentage rent as incurred. | |||||||||
We have a ground lease for an out parcel in Hollywood, Florida where we constructed a 4,120 square foot stand-alone building, one-half (1/2) of which is used by us for the operation of our Company-owned package liquor store and the other one-half (1/2) of which is subleased to an unrelated third party as retail space. Rent for the retail space commenced January 1, 2005, and we generated approximately $49,000 and $54,000 of revenue from this source during our fiscal years ended September 28, 2013 and September 29, 2012, respectively. Total future minimum sublease payments under the non-cancelable sublease are $77,000, including Florida sales tax (currently 6%). | |||||||||
Future minimum lease payments, including Florida sales tax (currently 6% to 7%) under our non-cancelable operating leases as of September 28, 2013 are as follows: | |||||||||
2014 | $ | 2,675,000 | |||||||
2015 | 2,396,000 | ||||||||
2016 | 1,985,000 | ||||||||
2017 | 1,670,000 | ||||||||
2018 | 1,183,000 | ||||||||
Thereafter | 3,289,000 | ||||||||
Total | $ | 13,198,000 | |||||||
Total rent expense for all of our operating leases was approximately $2,979,000 and $2,922,000 in our fiscal years 2013 and 2012, respectively, and is included in “Occupancy Costs” in our accompanying consolidated statements of income. This total rent expense is comprised of the following: | |||||||||
2013 | 2012 | ||||||||
Minimum Base Rent | $ | 2,461,000 | $ | 2,451,000 | |||||
Contingent Percentage Rent | 518,000 | 471,000 | |||||||
Total | $ | 2,979,000 | $ | 2,922,000 | |||||
Purchase Commitments | |||||||||
In order to fix the cost and ensure adequate supply of baby back ribs for our restaurants during calendar year 2014, on October 22, 2013, we entered into a purchase agreement with our rib supplier, whereby we agreed to purchase approximately $4,260,000 of baby back ribs from this vendor at a fixed cost. We contract for the purchase of baby back ribs on an annual basis to fix the cost and ensure adequate supply for the calendar year. We anticipate purchasing all of our rib supply from this vendor, but we believe that several other alternative vendors are available, if necessary. | |||||||||
Franchise Program | |||||||||
At September 28, 2013 and September 29, 2012, we were the franchisor of five units under franchise agreements. Of the five franchised stores, three are combination restaurant/package liquor stores and two are restaurants (one of which we operate). During the fourth quarter of our fiscal year ended 2012, a franchised package liquor store located in Deerfield Beach, Florida, franchised to members of the family of our Chairman of the Board, officers and/or directors, with our consent, ceased operations in order to permit expanded operations of the jointly operated restaurant at the location. Three franchised stores are owned and operated by related parties. Under the franchise agreements, we provide guidance, advice and management assistance to the franchisees. In addition and for an additional annual fee of approximately $25,000, we also act as fiscal agent for the | |||||||||
Franchise Program (Continued) | |||||||||
franchisees whereby we collect all revenues and pay all expenses and distributions. We also, from time to time, advance funds on behalf of the franchisees for the cost of renovations. The resulting amounts receivable from and payable to these franchisees are reflected in the accompanying consolidated balance sheet as either an asset or a liability. We also agree to sponsor and manage cooperative buying groups on behalf of the franchisees for the purchase of inventory. The franchise agreements provide for royalties to us of approximately 3% of gross restaurant sales and 1% of gross package liquor sales. We are not currently offering or accepting new franchises. | |||||||||
Employment Agreement/Bonuses | |||||||||
As of September 28, 2013 and September 29, 2012, we had no employment agreements. | |||||||||
Our Board of Directors approved an annual performance bonus, with 14% of the corporate pre-tax net income, plus or minus non-recurring items, but before depreciation and amortization in excess of $650,000 paid to the Chief Executive Officer and 6% paid to other members of management. Bonuses for our fiscal years 2013 and 2012 amounted to approximately $920,000 and $739,000, respectively. | |||||||||
Our Board of Directors also approved an annual performance bonus, with 5% of the pre-tax net income before depreciation and amortization from our restaurants in excess of $1,875,000 and our share of the pre-tax net income before depreciation and amortization from the restaurants owned by the limited partnerships paid to the Chief Operating Officer and 5% paid to the Chief Financial Officer. Bonuses for our fiscal years 2013 and 2012 amounted to approximately $550,000 and $460,000, respectively. | |||||||||
Our Board of Directors approved an annual performance bonus, with 3% of the pre-tax net income before depreciation and amortization from the package liquor stores paid to the Vice President of Package Operations. Bonuses for our fiscal years 2013 and 2012 amounted to approximately $34,000 and $33,000, respectively. | |||||||||
Management Agreements | |||||||||
Atlanta, Georgia | |||||||||
We own, but do not operate, an adult entertainment nightclub located in Atlanta, Georgia which operates under the name “Mardi Gras”. We have a management agreement with an unaffiliated third party to manage the club. Under our management agreement, the unaffiliated third party management firm is obligated to pay us an annual amount, paid monthly, equal to the greater of $150,000 or ten (10%) percent of gross sales from the club, offset by one-half (1/2) of any rental increases, provided our fees will never be less than $150,000 per year. For our fiscal years ended September 28, 2013 and September 29, 2012, we generated $150,000 and $157,000 of revenue, respectively, from the operation of the club. | |||||||||
Deerfield Beach, Florida | |||||||||
Since January 2006, we have managed “The Whale’s Rib”, a casual dining restaurant located in Deerfield Beach, Florida, pursuant to a management agreement. We paid $500,000 in exchange for our rights to manage this restaurant. The management agreement is being amortized on a straight line basis over the life of the initial term of the agreement, ten (10) years. As of September 28, 2013 and September 29, 2012, the balance of our management agreement of $112,000 and $162,000 was included in other assets in the accompanying consolidated balance sheet. The restaurant is owned by a third party unaffiliated with us. In exchange for providing management, bookkeeping and related services, we receive one-half (½) of the net profit, if any, from the operation of the restaurant. During the third quarter of our fiscal year 2011, the term of the management agreement was extended through January 9, 2036. For our fiscal years ended September 28, 2013 and September 29, 2012, we generated $385,000 and $320,000 of revenue, respectively, from providing these management services. As of September 28, 2013, we have generated revenue in excess of the purchase price of the management agreement. |
FAIR_VALUE_MEASUREMENTS_OF_FIN
FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS | 12 Months Ended | ||
Sep. 28, 2013 | |||
Fair Value Disclosures [Abstract] | ' | ||
FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS | ' | ||
NOTE 11. FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS | |||
As of September 28, 2013, we have fully adopted FASB (ASC) Topic 820, “Fair Value Measurements and Disclosures”, for financial assets and liabilities and for non-financial assets and liabilities that are recognized or disclosed at fair value on at least an annual basis. Topic 820 defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, we consider the principal or most advantageous market in which it would transact and consider assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions and risk of non-performance. Topic 820 establishes a fair market hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Topic 820 establishes three levels of inputs that may be used to measure fair value: | |||
• | Level 1 Inputs – Unadjusted quoted prices in active markets for identical assets or liabilities. | ||
• | Level 2 Inputs -- Inputs other than quoted prices included in Level 1 that are either directly or indirectly observable through correlation with market data. These include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and inputs to evaluation models or other pricing methodologies that do not require significant judgment because the inputs used in the model, such as interest rates and volatility, can be corroborated by readily observable market data. | ||
• | Level 3 Inputs -- One or more significant inputs that are unobservable and supported by little or no market activity, and that reflect the use of significant management judgment. Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies or similar valuation techniques, and significant management judgment or estimation. | ||
Interest Rate Swap Agreements | |||
At September 28, 2013, we had five variable rate debt instruments outstanding that are impacted by changes in interest rates. In July, 2010, we converted the amount outstanding on our line of credit ($1,586,000) to a term loan (the “Term Loan”) and we also re-financed the mortgage loan encumbering our corporate offices (the “Refinanced Mortgage Loan”). In November, 2011, we financed our purchase of the real property and two building shopping center in Miami, Florida, with a $4,500,000 mortgage loan (the “$4.5M Mortgage Loan”), and received a $1,600,000 term loan (the “$1.6M Term Loan”) the proceeds of which were ultimately used to purchase the shopping center, while permitting us to retain our working capital and cash reserves. In January, 2013, we re-financed the mortgage loan encumbering the property where our combination package liquor store and restaurant located at 4 N. Federal Highway, Hallandale, Florida, (Store #31) operates, which mortgage loan is held by an unaffiliated third party lender (the “$1.405M Loan”) and borrowed $1,595,000 from a non affiliated third party lender, (the “$1.595M Term Loan”), and used all of the net proceeds of this loan to re-finance the property where our combination package liquor store and restaurant located at 4 N. Federal Highway, Hallandale, Florida, (Store #31) operates. | |||
As a means of managing our interest rate risk on these debt instruments, we entered into interest rate swap agreements with our unrelated third party lender to convert these variable rate debt obligations to fixed rates. We are currently party to the following five (5) interest rate swap agreements, having pre-paid one existing variable rate debt instrument that was impacted by changes in interest rates during the second quarter of our fiscal year 2013: | |||
(i) One (1) interest rate swap agreement entered into July, 2010 relates to the Refinanced Mortgage Loan (the “Mortgage Loan Swap”). The Mortgage Loan Swap requires us to pay interest for a seven (7) year period at a fixed rate of 5.11% on an initial amortizing notional principal amount of $935,000, while receiving interest for the same period at LIBOR, Daily Floating Rate, plus 2.25%, on the same amortizing notional principal amount. Under this method of accounting, at September 28, 2013, we determined that based upon unadjusted quoted prices in active markets for similar assets or liabilities provided by our unrelated third party lender, the fair value of the Mortgage Loan Swap was not material; and | |||
(ii) The second interest rate swap agreement entered into in November, 2011 by our wholly owned subsidiary, Flanigan’s Calusa Center, LLC, relates to the $4.5 Mortgage Loan (the “$4.5M Mortgage Loan Swap”). The $4.5M Mortgage Loan Swap requires us to pay interest for an eight (8) year period at a fixed rate of 4.51% on an initial amortizing notional principal amount of $3,750,000, while receiving interest for the same period at LIBOR – 1 Month, plus 2.25%, on the same amortizing notional principal amount. We determined that at September 28, 2013, the interest rate swap agreement is an effective hedging agreement and the fair value was not material; and | |||
(iii) The third interest rate swap agreement entered into in November, 2011 relates to the $1.6M Term Loan (the “$1.6M Term Loan Swap”). The $1.6M Term Loan Swap requires us to pay interest for a four (4) year period at a fixed rate of 3.43% on an initial amortizing notional principal amount of $1,600,000, while receiving interest for the same period at LIBOR – 1 Month, plus 2.25%, on the same amortizing notional principal amount. We determined that at September 28, 2013, the interest rate swap agreement is an effective hedging agreement and the fair value was not material; and | |||
(iv) The fourth interest rate swap agreement entered into in January, 2013 relates to the $1.405M Loan (the “$1.405M Term Loan Swap”). The $1.405M Term Loan Swap requires us to pay interest for a twenty (20) year period at a fixed rate of 4.35% on an initial amortizing notional principal amount of $1,405,000, while receiving interest for the same period at LIBOR – 1 Month, plus 2.25%, on the same amortizing notional principal amount. We determined that at September 28, 2013, the interest rate swap agreement is an effective hedging agreement and the fair value was not material; and | |||
(v) The fifth interest rate swap agreement entered into in January, 2013 relates to the $1.595M Term Loan (the “$1.595M Term Loan Swap”). The $1.595M Term Loan Swap requires us to pay interest for a forty two (42) month period at a fixed rate of 4.00% on an initial amortizing notional principal amount of $1,595,000, while receiving interest for the same period at LIBOR – 1 Month, plus 3.25%, on the same amortizing notional principal amount. We determined that at September 28, 2013, the interest rate swap agreement is an effective hedging agreement and the fair value was not material. | |||
COMMON_STOCK
COMMON STOCK | 12 Months Ended |
Sep. 28, 2013 | |
Notes to Financial Statements | ' |
COMMON STOCK | ' |
NOTE 12. COMMON STOCK | |
Treasury Stock | |
Purchase of Common Shares | |
Pursuant to a discretionary plan approved by the Board of Directors, during our fiscal year 2013, we purchased 800 shares of our common stock from the Joseph G. Flanigan Charitable Trust for a purchase price of $6,000. During our fiscal year 2012, we purchased 800 shares of our common stock from the Joseph G. Flanigan Charitable Trust for a purchase price of $6,000. | |
Sale of Common Shares | |
During our fiscal years 2013 and 2012, we did not sell any shares of our common stock. | |
Stock Options | |
We granted no options during our fiscal years 2013 and 2012. We have no options outstanding at September 28, 2013. | |
BUSINESS_SEGMENTS
BUSINESS SEGMENTS | 12 Months Ended | ||||||||
Sep. 28, 2013 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
BUSINESS SEGMENTS | ' | ||||||||
NOTE 13. BUSINESS SEGMENTS | |||||||||
We operate principally in two reportable segments – package stores and restaurants. The operation of package stores consists of retail liquor sales and related items. Information concerning the revenues and operating income for our fiscal years ended 2013 and 2012, and identifiable assets for the two reportable segments in which we operate, are shown in the following table. Operating income is total revenue less cost of merchandise sold and operating expenses relative to each segment. In computing operating income, none of the following items have been included: interest expense, other non-operating income and expense and income taxes. Identifiable assets by segment are those assets that are used in our operations in each segment. Corporate assets are principally cash and real property, improvements, furniture, equipment and vehicles used at our corporate headquarters. We do not have any operations outside of the United States and transactions between restaurants and package liquor stores are not material. | |||||||||
Operating Revenues: | 2013 | 2012 | |||||||
Restaurants | $ | 67,441,000 | $ | 62,198,000 | |||||
Package stores | 13,192,000 | 13,214,000 | |||||||
Other revenues | 2,165,000 | 1,923,000 | |||||||
Total operating revenues | $ | 82,798,000 | $ | 77,335,000 | |||||
Income from Operations Reconciled to Income before | |||||||||
Income Taxes and Net Income Attributable to | |||||||||
Noncontrolling Interests | |||||||||
Restaurants | $ | 6,124,000 | $ | 5,269,000 | |||||
Package stores | 923,000 | 874,000 | |||||||
7,047,000 | 6,143,000 | ||||||||
Corporate expenses, net of other revenues | (2,410,000 | ) | (2,572,000 | ) | |||||
Income from Operations | 4,637,000 | 3,571,000 | |||||||
Interest and Other Income | 28,000 | 73,000 | |||||||
Net Income Attributable to Noncontrolling | (955,000 | ) | (660,000 | ) | |||||
Interests | |||||||||
Interest expense | (818,000 | ) | (806,000 | ) | |||||
Income Before Income Taxes | $ | 2,892,000 | $ | 2,178,000 | |||||
Identifiable Assets: | |||||||||
Restaurants | $ | 27,460,000 | $ | 22,133,000 | |||||
Package store | 4,490,000 | 4,952,000 | |||||||
31,950,000 | 27,085,000 | ||||||||
Corporate | 17,674,000 | 19,659,000 | |||||||
Consolidated Totals | $ | 49,624,000 | $ | 46,744,000 | |||||
Capital Expenditures: | |||||||||
Restaurants | $ | 5,093,000 | $ | 1,144,000 | |||||
Package stores | 206,000 | 101,000 | |||||||
5,299,000 | 1,245,000 | ||||||||
Corporate | 403,000 | 6,555,000 | |||||||
Total Capital Expenditures | $ | 5,702,000 | $ | 7,800,000 | |||||
Depreciation and Amortization: | |||||||||
Restaurants | $ | 1,916,000 | $ | 1,704,000 | |||||
Package stores | 218,000 | 388,000 | |||||||
2,134,000 | 2,092,000 | ||||||||
Corporate | 453,000 | 436,000 | |||||||
Total Depreciation and Amortization | $ | 2,587,000 | $ | 2,528,000 |
QUARTERLY_INFORMATION_UNAUDITE
QUARTERLY INFORMATION (UNAUDITED) | 12 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
QUARTERLY INFORMATION (UNAUDITED) | ' | ||||||||||||||||
NOTE 14. QUARTERLY INFORMATION (UNAUDITED) | |||||||||||||||||
The following is a summary of our unaudited quarterly results of operations for the quarters in our fiscal years 2013 and 2012. | |||||||||||||||||
Quarter Ended | |||||||||||||||||
Dec. 29, | March 30, | June 29, | Sept. 28, | ||||||||||||||
2012 | 2013 | 2013 | 2013 | ||||||||||||||
Revenues | $ | 19,613,000 | $ | 22,255,000 | $ | 21,012,000 | $ | 19,918,000 | |||||||||
Income from operations | 636,000 | 1,405,000 | 1,629,000 | 967,000 | |||||||||||||
Net income attributable to | 345,000 | 750,000 | 660,000 | 222,000 | |||||||||||||
stockholders | |||||||||||||||||
Net income per share – | 0.19 | 0.4 | 0.35 | 0.12 | |||||||||||||
basic and diluted | |||||||||||||||||
Weighted average common | |||||||||||||||||
stock outstanding – basic and diluted | 1,859,987 | 1,859,257 | 1,859,257 | 1,859,257 | |||||||||||||
Quarter Ended | |||||||||||||||||
Dec. 31, | March 31, | June 30, | Sept. 29, | ||||||||||||||
2011 | 2012 | 2012 | 2012 | ||||||||||||||
Revenues | $ | 18,952,000 | $ | 20,618,000 | $ | 19,382,000 | $ | 18,383,000 | |||||||||
Income from operations | 660,000 | 1,113,000 | 969,000 | 829,000 | |||||||||||||
Net income attributable to | 336,000 | 509,000 | 236,000 | 332,000 | |||||||||||||
stockholders | |||||||||||||||||
Net income per share – | 0.18 | 0.27 | 0.13 | 0.18 | |||||||||||||
basic and diluted | |||||||||||||||||
Weighted average common | 1,860,752 | 1,860,057 | 1,860,057 | 1,860,057 | |||||||||||||
stock outstanding – basic and diluted | |||||||||||||||||
Quarterly operating results are not necessarily representative of our operations for a full year for various reasons including the seasonal nature of both the restaurant and package store segments. |
401k_PLAN
401(k) PLAN | 12 Months Ended |
Sep. 28, 2013 | |
Compensation and Retirement Disclosure [Abstract] | ' |
401(k) PLAN | ' |
NOTE 15. 401(k) PLAN | |
Effective July 2004, we began sponsoring a 401(k) retirement plan covering substantially all employees who meet certain eligibility requirements. Employees may contribute elective deferrals to the plan up to amounts allowed under the Internal Revenue Code. We are not required to contribute to the plan but may make discretionary profit sharing and matching contributions. During our fiscal years 2013 and 2012, we made discretionary contributions of $24,000 and $23,000, respectively. | |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Sep. 28, 2013 | |
Subsequent Events [Abstract] | ' |
SUBSEQUENT EVENTS | ' |
NOTE 16. SUBSEQUENT EVENTS | |
Subsequent events have been evaluated through the date these consolidated financial statements were issued. No events required disclosure. | |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Sep. 28, 2013 | |
Accounting Policies [Abstract] | ' |
Organization and Capitalization | ' |
Organization and Capitalization | |
The Company was incorporated in 1959 and operates in South Florida as a chain of full-service restaurants and package liquor stores. Restaurant food and beverage sales make up the majority of our total revenue. At September 28, 2013, we (i) operated 25 units, (excluding the adult entertainment club referenced in (ii) below), consisting of restaurants, package liquor stores and combination restaurants/package liquor stores that we either own or have operational control over and partial ownership in; (ii) own but do not operate one adult entertainment club; and (iii) franchise an additional five units, consisting of two restaurants, (one of which we operate) and three combination restaurants/package liquor stores. With the exception of one restaurant we operate under the name “The Whale’s Rib”, and in which we do not have an ownership interest, all of the restaurants operate under our service mark “Flanigan’s Seafood Bar and Grill” and all of the package liquor stores operate under our service mark “Big Daddy’s Liquors”. | |
The Company’s Articles of Incorporation, as amended, authorize us to issue and have outstanding at any one time 5,000,000 shares of common stock at a par value of $0.10 per share. | |
We operate under a 52-53 week year ending the Saturday closest to September 30. Our fiscal years 2013 and 2012 are each comprised of a 52-week period. | |
Principles of Consolidation | ' |
Principles of Consolidation | |
The consolidated financial statements include the accounts of the Company and our subsidiaries, all of which are wholly owned, and the accounts of the nine limited partnerships in which we act as general partner and have controlling interests. All significant intercompany transactions and balances have been eliminated in consolidation. | |
Use of Estimates | ' |
Use of Estimates | |
The consolidated financial statements and related disclosures are prepared in conformity with accounting principles generally accepted in the U.S. We are required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and revenue and expenses during the period reported. These estimates include assessing the estimated useful lives of tangible assets and the recognition of deferred tax assets and liabilities. Estimates and assumptions are reviewed periodically and the effects of revisions are reflected in our consolidated financial statements in the period they are determined to be necessary. Although these estimates are based on our knowledge of current events and actions we may undertake in the future, they may ultimately differ from actual results. | |
Cash and Cash Equivalents | ' |
Cash and Cash Equivalents | |
We consider all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash equivalents. | |
We maintain deposit balances with financial institutions which balances may, from time to time, exceed the federally insured limits, which are $250,000 for interest bearing accounts. In addition, from December 31, 2010 through December 31, 2012, our financial banking institutions participated in the Temporary Liquidity Guarantee Program, which program provided FDIC coverage on the full balance of non-interest bearing deposits, but since January 1, 2013, the balance of our non-interest bearing deposits no longer receive full FDIC insurance coverage. Effective January 1, 2013, FDIC insurance coverage on non-interest bearing deposits is limited to the standard $250,000 maximum deposit insurance amount. At September 28, 2013, we have deposits of approximately $5,301,000 in excess of federally insured limits. We have not experienced any losses in such accounts. | |
Inventories | ' |
Inventories | |
Our inventories, which consist primarily of package liquor products, are stated at the lower of average cost or market. | |
Liquor Licenses | ' |
Liquor Licenses | |
In accordance with the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 350, “Intangibles - Goodwill and Other”, our liquor licenses are indefinite lived assets, which are not being amortized, but are tested annually for impairment (see Note 7). | |
Property and Equipment | ' |
Property and Equipment | |
Our property and equipment are stated at cost. We capitalize expenditures for major improvements and depreciation commences when the assets are placed in service. We record depreciation on a straight-line basis over the estimated useful lives of the respective assets. We charge maintenance and repairs, which do not improve or extend the life of the respective assets, to expense as incurred. When we dispose of assets, the cost and related accumulated depreciation are removed from the accounts and any gain or loss is included in income. | |
Our estimated useful lives range from three to five years for vehicles, and three to seven years for furniture and equipment. Leasehold improvements are currently being amortized over the shorter of the life of the lease or the life of the asset up to a maximum of 20 years. The building and building improvements of our corporate offices in Fort Lauderdale, Florida; our combination restaurant and package liquor stores in Hallandale, Florida, Hollywood, Florida and North Miami, Florida; our restaurant in Fort Lauderdale, Florida; and our shopping center in Miami, Florida, all of which we own, are being depreciated over forty years. | |
Leasehold Interests | ' |
Leasehold Interests | |
Our purchase of an existing restaurant location usually includes a lease to the business premises. As a result, a portion of the purchase price is allocated to the leasehold interest. We capitalize the cost of the leasehold interest and amortization commences upon our assumption of the lease. We amortize leasehold interests on a straight line basis over the remaining term of the lease. | |
Investment in Limited Partnerships | ' |
Investment in Limited Partnerships | |
We use the consolidation method of accounting when we have a controlling interest in other companies and limited partnerships. We use the equity method of accounting when we have an interest between twenty to fifty percent in other companies and limited partnerships, but do not exercise control. Under the equity method, our original investments are recorded at cost and are adjusted for our share of undistributed earnings or losses. All significant intercompany profits are eliminated. | |
Concentrations of Credit Risk | ' |
Concentrations of Credit Risk | |
Financial instruments that potentially subject us to concentrations of credit risk are cash and cash equivalents. | |
Major Supplier | ' |
Major Supplier | |
Throughout our fiscal years 2013 and 2012, we purchased substantially all of our food products from one major supplier pursuant to a master distribution agreement which entitled us to receive certain purchase discounts, rebates and advertising allowances. We believe that several other alternative vendors are available, if necessary. | |
Revenue Recognition | ' |
Revenue Recognition | |
We record revenues from normal recurring sales upon the sale of food and beverages and the sale of package liquor products. We report our sales net of sales tax. Continuing royalties, which are a percentage of net sales of franchised stores, are accrued as income when earned. | |
Pre-opening Costs | ' |
Pre-opening Costs | |
Our pre-opening costs are those typically associated with the opening of a new restaurant and generally include payroll costs associated with the “new restaurant openers” (a team of select employees who travel to new restaurants to ensure that our high standards for quality are met), rent and promotional costs. We expense pre-opening costs as incurred. During our fiscal years 2013 and 2012, we reported losses of $208,000 and $107,000 respectively, primarily due to pre-opening costs associated with the new limited partnership restaurant in Miami, Florida. | |
Advertising Costs | ' |
Advertising Costs | |
Our advertising costs are expensed as incurred. Advertising costs incurred during our fiscal years ended September 28, 2013 and September 29, 2012 were approximately $454,000 and $531,000 respectively. | |
General Liability Insurance | ' |
General Liability Insurance | |
We have general liability insurance which incorporates a semi-self-insured plan under which we assume the full risk of the first $50,000 of exposure per occurrence, while the limited partnerships assume the full risk of the first $10,000 of exposure per occurrence. Our insurance carrier is responsible for $1,000,000 coverage per occurrence above our self-insured deductible, up to a maximum aggregate of $2,000,000 per year. During our fiscal years ended September 28, 2013 and September 29, 2012, we were able to purchase excess liability insurance, whereby our excess insurance carrier is responsible for $6,000,000 coverage above our primary general liability insurance coverage. With the exception of one (1) limited partnership which has higher general liability insurance coverage to comply with the terms of its lease for the business premises, we are un-insured against liability claims in excess of $7,000,000 per occurrence and in the aggregate. | |
Our general policy is to settle only those legitimate and reasonable claims asserted and to aggressively defend and go to trial, if necessary, on frivolous and unreasonable claims. Under our current liability insurance policy, any expense incurred by us in defending a claim, including adjusters and attorney's fees, are a part of our $50,000 or $10,000, as applicable, self-insured retention. | |
Fair Value of Financial Instruments | ' |
Fair Value of Financial Instruments | |
The respective carrying value of certain of our on-balance-sheet financial instruments approximated their fair value. These instruments include cash and cash equivalents, other receivables, accounts payables, accrued expenses and debt. We have assumed carrying values to approximate fair values for those financial instruments, which are short-term in nature or are receivable or payable on demand. We estimated the fair value of debt based on current rates offered to us for debt of comparable maturities and similar collateral requirements. | |
Fair Value of Financial Instruments (continued) | |
In accordance with FASB ASC Topic 820-10-50-1, we utilized a valuation model to determine the fair value of our swap agreements. As the valuation models for the swap agreements were based upon observable inputs, they are classified as Level 2 (see Note 11). | |
Derivative Instruments | ' |
Derivative Instruments | |
We account for derivative instruments in accordance with FASB ASC Topic 815-10-05-4, “Accounting for Derivative Instruments and Hedging Activities” as amended, which establishes accounting and reporting standards for derivative instruments, including certain derivative instruments embedded in other contracts, and hedging activities. In accordance with FASB ASC Topic 815-10-05-4, derivative instruments are recognized as assets or liabilities in the Company’s consolidated balance sheets and are measured at fair value. We recognized all changes in fair value through earnings unless the derivative is determined to be an effective hedge. We currently have five derivatives which we have designated as effective hedges (See Note 11). | |
Income Taxes | ' |
Income Taxes | |
We account for our income taxes using FASB ASC Topic 740, “Income Taxes”, which requires the recognition of deferred tax liabilities and assets for expected future tax consequences of events that have been included in the consolidated financial statements or tax returns. Under this method, deferred tax liabilities and assets are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. | |
We adopted the provisions regarding Accounting for Uncertainty in Income Taxes, which require the recognition of a financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more likely than not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. We applied these changes to tax positions for our fiscal years ending September 28, 2013 and September 29, 2012. We had no material unrecognized tax benefits and no adjustments to our financial position, results of operations or cash flows were required. Generally, federal, state and local authorities may examine the Company’s tax returns for three years from the date of filing and the current and prior three years remain subject to examination as of September 28, 2013. We do not expect that unrecognized tax benefits will increase within the next twelve months. We recognize accrued interest and penalties related to uncertain tax positions as income tax expense. | |
Stock-Based Compensation | ' |
Stock-Based Compensation | |
We follow FASB ASC Topic 718, “Compensation – Stock Compensation” to account for stock-based employee compensation, which generally requires, among other things that all employee share-based compensation be measured using a fair value method and that resulting compensation costs be recognized in the consolidated financial statements. We had no unvested stock options as of January 1, 2006 and granted no stock options subsequent thereto, including our fiscal years 2013 and 2012, so there is no compensation expense recorded in our consolidated financial statements for our fiscal years 2013 or 2012. | |
Long-Lived Assets | ' |
Long-Lived Assets | |
We continually evaluate whether events and circumstances have occurred that may warrant revision of the estimated life of our intangible and other long-lived assets or whether the remaining balance of our intangible and other long-lived assets should be evaluated for possible impairment. If and when such factors, events or circumstances indicate that intangible or other long-lived assets should be evaluated for possible impairment, we will determine the fair value of the asset by making an estimate of expected future cash flows over the remaining lives of the respective assets and compare that fair value with the carrying value of the assets in measuring their recoverability. In determining the expected future cash flows, the assets will be grouped at the lowest level for which there are cash flows, at the individual store level. | |
Earnings Per Share | ' |
Earnings Per Share | |
We follow FASB ASC Topic 260 - “Earnings per Share.” This section provides for the calculation of basic and diluted earnings per share. Basic earnings per share includes no dilution and is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share assumes the exercise of options granted if the weighted average market price exceeds the exercise price. Earnings per share are computed by dividing income available to common stockholders by the basic and diluted weighted average number of common shares. | |
Recently Adopted and Recently Issued Accounting Pronouncements | ' |
Recently Adopted and Recently Issued Accounting Pronouncements | |
Adopted | |
In July 2013, the FASB issued ASU 2013-10, Derivatives and Hedging (Topic 815): Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes. The amendments in this Update permit the Fed Funds Effective Swap Rate (OIS) to be used as a U.S. benchmark interest rate for hedge accounting purposes under Topic 815, in addition to UST and LIBOR. The amendments also remove the restriction on using different benchmark rates for similar hedges. The amendments are effective prospectively for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. This ASU is not expected to have a significant impact on our consolidated financial statements. | |
In May 2011, the FASB issued an update to ASC Topic 820 – “Fair Value Measurements and Disclosures”. This update provides guidance on how fair value accounting should be applied where its use is already required or permitted by other standards and does not extend the use of fair value accounting. We adopted this guidance in the first quarter of our fiscal year 2013 as required, and the adoption did not have a significant impact on our consolidated financial statements. | |
Issued | |
In July 2013, the FASB issued ASU 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This Update applies to all entities that have unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. An unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The assessment of whether a deferred tax asset is available is based on the unrecognized tax benefit and deferred tax asset that exist at the reporting date and should be made presuming disallowance of the tax position at the reporting date. The amendments in this Update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption is permitted. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. This ASU is not expected to have a significant impact on our consolidated financial statements. |
PROPERTY_AND_EQUIPMENT_Tables
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended | ||||||||
Sep. 28, 2013 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Schedule of property and equipment | ' | ||||||||
2013 | 2012 | ||||||||
Furniture and equipment | $ | 10,821,000 | $ | 10,269,000 | |||||
Leasehold improvements | 20,599,000 | 18,905,000 | |||||||
Land and land improvements | 14,595,000 | 12,030,000 | |||||||
Building and improvements | 12,305,000 | 10,557,000 | |||||||
Vehicles | 776,000 | 751,000 | |||||||
57,664,000 | 52,512,000 | ||||||||
Less accumulated depreciation and amortization | 23,037,000 | 20,917,000 | |||||||
$ | 34,627,000 | $ | 31,595,000 |
LEASEHOLD_INTERESTS_Tables
LEASEHOLD INTERESTS (Tables) | 12 Months Ended | ||||||||
Sep. 28, 2013 | |||||||||
Leases [Abstract] | ' | ||||||||
Schedule of leasehold interests | ' | ||||||||
2013 | 2012 | ||||||||
Leasehold interests, at cost | $ | 3,024,000 | $ | 3,024,000 | |||||
Less accumulated amortization | 1,981,000 | 1,847,000 | |||||||
$ | 1,043,000 | $ | 1,177,000 | ||||||
Future amortization of leasehold interests | ' | ||||||||
2014 | $ | 134,000 | |||||||
2015 | 128,000 | ||||||||
2016 | 122,000 | ||||||||
2017 | 122,000 | ||||||||
2018 | 122,000 | ||||||||
Thereafter | 415,000 | ||||||||
Total | $ | 1,043,000 |
INVESTMENTS_IN_LIMITED_PARTNER
INVESTMENTS IN LIMITED PARTNERSHIPS (Tables) | 12 Months Ended | ||||||||
Sep. 28, 2013 | |||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | ||||||||
Financial information pertaining to our limited partnership investment | ' | ||||||||
The following is a summary of condensed unaudited financial information pertaining to our limited partnership investment in Fort Lauderdale, Florida: | |||||||||
Financial Position: | 2013 | 2012 | |||||||
Current assets | $ | 453,000 | $ | 277,000 | |||||
Non-current assets | 418,000 | 439,000 | |||||||
Current liabilities | 114,000 | 141,000 | |||||||
Operating Results: | |||||||||
Revenues | 2,777,000 | 2,641,000 | |||||||
Gross profit | 1,847,000 | 1,751,000 | |||||||
Net income | 242,000 | 181,000 |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||
Sep. 28, 2013 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Components of the provision for income taxes | ' | ||||||||
The components of our provision for income taxes for our fiscal years 2013 and 2012 are as follows: | |||||||||
2013 | 2012 | ||||||||
Current: | $ | 803,000 | $ | 660,000 | |||||
Federal | 218,000 | 175,000 | |||||||
State | 1,021,000 | 835,000 | |||||||
Deferred: | (96,000 | ) | (63,000 | ) | |||||
Federal | (10,000 | ) | (7,000 | ) | |||||
State | (106,000 | ) | (70,000 | ) | |||||
$ | 915,000 | $ | 765,000 | ||||||
Reconciliation of income tax computed at the statutory federal rate to income tax expense | ' | ||||||||
A reconciliation of income tax computed at the statutory federal rate to income tax expense is as follows: | |||||||||
2013 | 2012 | ||||||||
Tax provision at the statutory rate of 34% | $ | 983,000 | $ | 741,000 | |||||
State income taxes, net of federal income tax | 121,000 | 94,000 | |||||||
FICA tip credit | (241,000 | ) | (227,000 | ) | |||||
True up adjustment | 22,000 | 110,000 | |||||||
Other permanent items | 30,000 | 47,000 | |||||||
$ | 915,000 | $ | 765,000 | ||||||
Components of deferred tax assets | ' | ||||||||
The components of our deferred tax assets at September 28, 2013 and September 29, 2012 were as follows: | |||||||||
2013 | 2012 | ||||||||
Current: | |||||||||
Reversal of aged payables | $ | 27,000 | $ | 27,000 | |||||
Capitalized inventory costs | 26,000 | 25,000 | |||||||
Accrued bonuses | 222,000 | 188,000 | |||||||
Accruals for potential uninsured claims | 57,000 | 30,000 | |||||||
Gift cards | 108,000 | 72,000 | |||||||
Limited partnership management fees | 27,000 | 29,000 | |||||||
$ | 467,000 | $ | 371,000 | ||||||
Long-Term: | |||||||||
Book/tax differences in property and equipment | $ | 632,000 | $ | 540,000 | |||||
Limited partnership investments | 299,000 | 386,000 | |||||||
Accrued limited retirement | 40,000 | 35,000 | |||||||
$ | 971,000 | $ | 961,000 |
DEBT_Tables
DEBT (Tables) | 12 Months Ended | ||||||||
Sep. 28, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Long term debt | ' | ||||||||
2013 | 2012 | ||||||||
Mortgage payable to lender, secured by a first mortgage on real property and improvements, bearing interest at BBA LIBOR – 1 Month +2.25%, (2.43% at September 28, 2013), but with $3,750,000 of the principal amount fixed at 4.51% pursuant to a swap agreement, amortized over 20 years, payable in monthly installments of principal and interest of approximately $23,700, and our current monthly payment of principal and interest as to that portion of the principal amount not fixed by the interest rate swap agreement, ($750,000), is payable at BBA LIBOR – 1 Month + 2.25% interest rate, (2.43% as of September 28, 2013). The entire principal balance and all accrued but unpaid interest is due on December 1, 2019. | $ | 4,106,000 | $ | 4,331,000 | |||||
Mortgage payable to lender, secured by a first mortgage on real property and improvements, bearing interest at 7½%, payable in monthly installments of principal and interest of $28,600, with a balloon payment of approximately $2,833,000 in October, 2013. This loan was paid off early in January, 2013. | — | 2,958,000 | |||||||
Mortgage payable to unrelated third party, secured by first mortgage on real property and improvements, bearing interest at 7½%, amortized over 20 years, payable in monthly installments of principal and interest of approximately $15,700, with a balloon payment of approximately $1,331,000 in December, 2022. | 1,921,000 | — | |||||||
Mortgage payable to lender, secured by a first mortgage on real property and improvements, bearing interest at BBA LIBOR – 1 Month +2.25%, (2.43% at September 28, 2013), but with the principal amount fixed at 4.35% pursuant to a swap agreement, amortized over 20 years, payable in monthly installments of principal and interest of approximately $8,415, with a balloon payment of approximately $858,000 on January 31, 2023. | 1,375,000 | — | |||||||
Term loan payable to lender, secured by a blanket loan on all Company assets, bearing interest at BBA LIBOR – 1 Month + 3.25%, (3.43% at September 28, 2013), but fixed at 4.00% pursuant to a swap agreement, payable in forty two (42) monthly installments of principal and interest of approximately $41,000, with the final payment due July 24, 2016. | 1,307,000 | — | |||||||
Term loan payable to lender, secured by a blanket loan on all Company assets, bearing interest at BBA LIBOR – 1 Month + 2.25%, (2.43% at September 28, 2013), but fixed at 3.43%, pursuant to a swap agreement, payable in monthly installments of principal and interest of approximately $38,000, payable interest only for 3 months and then fully amortized over 45 months, with the final payment due December 1, 2015. | 960,000 | 1,387,000 | |||||||
Term loan payable to lender, secured by a blanket lien on all Company assets and a second mortgage on a building, bearing interest at BBA LIBOR +3.25%, but fixed at 4.55%, pursuant to a swap agreement, payable in monthly installments of principal and interest of approximately $50,000, fully amortized over 36 months, with the final payment due August, 2013. | — | 508,000 | |||||||
Mortgage payable to a related third party, secured by first mortgage on real property and improvements, bearing interest at 10%, amortized over 15 years, payable in monthly installments of principal and interest of approximately $10,800, with a balloon payment of approximately $658,000 due in September, 2018. | 902,000 | 939,000 | |||||||
Mortgage payable to lender, secured by a first mortgage on real property and improvements, bearing interest at BBA LIBOR +2.25%, (2.43% at September 28, 2013), but fixed at 5.11% pursuant to a swap agreement, amortized over 20 years, payable in monthly installments of principal and interest of approximately $4,600, with a balloon payment of approximately $720,000 due in August, 2017. | 849,000 | 879,000 | |||||||
Mortgage payable to unrelated third party, secured by first mortgage on real property and improvements, bearing interest at 8½%, amortized over 15 years, payable in monthly installments of principal and interest of approximately $8,400, with a balloon payment of approximately $537,000 in November, 2017. | 723,000 | 760,000 | |||||||
Mortgage payable to unrelated third party, secured by first mortgage on real property and improvements, bearing interest at 10.0%; amortized over 30 years, payable in monthly installments of principal and interest of approximately $4,000, with a balloon payment of approximately $413,000 in May, 2017. | 429,000 | 433,000 | |||||||
Financed insurance premiums, secured by all insurance policies, bearing interest between 2.99% and 4.89%, payable in monthly installments of principal and interest in the aggregate amount of $24,000 a month through October 1, 2013. | 116,000 | 333,000 | |||||||
Mortgage payable to related third party, secured by first mortgage on real property and improvements, bearing interest at 10%, amortized over 15 years, payable in monthly installments of principal and interest of approximately $9,100, with a balloon payment of approximately $555,000 due in January, 2019. | 775,000 | 806,000 | |||||||
Other | 83,000 | 84,000 | |||||||
13,546,000 | 13,418,000 | ||||||||
Less current portion | 1,477,000 | 1,732,000 | |||||||
$ | 12,069,000 | $ | 11,686,000 | ||||||
Long term debt maturities | ' | ||||||||
Long-term debt at September 28, 2013 matures as follows: | |||||||||
2014 | 1,477,000 | ||||||||
2015 | 1,361,000 | ||||||||
2016 | 1,054,000 | ||||||||
2017 | 2,179,000 | ||||||||
2018 | 1,086,000 | ||||||||
Thereafter | 6,389,000 | ||||||||
$ | 13,546,000 |
COMMITMENTS_CONTINGENCIES_AND_1
COMMITMENTS, CONTINGENCIES AND OTHER MATTERS (Tables) | 12 Months Ended | ||||||||
Sep. 28, 2013 | |||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||
Schedule of future minimum rental payments | ' | ||||||||
Future minimum lease payments, including Florida sales tax (currently 6% to 7%) under our non-cancelable operating leases as of September 28, 2013 are as follows: | |||||||||
2014 | $ | 2,675,000 | |||||||
2015 | 2,396,000 | ||||||||
2016 | 1,985,000 | ||||||||
2017 | 1,670,000 | ||||||||
2018 | 1,183,000 | ||||||||
Thereafter | 3,289,000 | ||||||||
Total | $ | 13,198,000 | |||||||
Schedule of rent expense | ' | ||||||||
This total rent expense is comprised of the following: | |||||||||
2013 | 2012 | ||||||||
Minimum Base Rent | $ | 2,461,000 | $ | 2,451,000 | |||||
Contingent Percentage Rent | 518,000 | 471,000 | |||||||
Total | $ | 2,979,000 | $ | 2,922,000 |
BUSINESS_SEGMENTS_Tables
BUSINESS SEGMENTS (Tables) | 12 Months Ended | ||||||||
Sep. 28, 2013 | |||||||||
Business Segments Tables | ' | ||||||||
Schedule of Segment Reporting | ' | ||||||||
Operating Revenues: | 2013 | 2012 | |||||||
Restaurants | $ | 67,441,000 | $ | 62,198,000 | |||||
Package stores | 13,192,000 | 13,214,000 | |||||||
Other revenues | 2,165,000 | 1,923,000 | |||||||
Total operating revenues | $ | 82,798,000 | $ | 77,335,000 | |||||
Income from Operations Reconciled to Income before | |||||||||
Income Taxes and Net Income Attributable to | |||||||||
Noncontrolling Interests | |||||||||
Restaurants | $ | 6,124,000 | $ | 5,269,000 | |||||
Package stores | 923,000 | 874,000 | |||||||
7,047,000 | 6,143,000 | ||||||||
Corporate expenses, net of other revenues | (2,410,000 | ) | (2,572,000 | ) | |||||
Income from Operations | 4,637,000 | 3,571,000 | |||||||
Interest and Other Income | 28,000 | 73,000 | |||||||
Net Income Attributable to Noncontrolling | (955,000 | ) | (660,000 | ) | |||||
Interests | |||||||||
Interest expense | (818,000 | ) | (806,000 | ) | |||||
Income Before Income Taxes | $ | 2,892,000 | $ | 2,178,000 | |||||
Identifiable Assets: | |||||||||
Restaurants | $ | 27,460,000 | $ | 22,133,000 | |||||
Package store | 4,490,000 | 4,952,000 | |||||||
31,950,000 | 27,085,000 | ||||||||
Corporate | 17,674,000 | 19,659,000 | |||||||
Consolidated Totals | $ | 49,624,000 | $ | 46,744,000 | |||||
Capital Expenditures: | |||||||||
Restaurants | $ | 5,093,000 | $ | 1,144,000 | |||||
Package stores | 206,000 | 101,000 | |||||||
5,299,000 | 1,245,000 | ||||||||
Corporate | 403,000 | 6,555,000 | |||||||
Total Capital Expenditures | $ | 5,702,000 | $ | 7,800,000 | |||||
Depreciation and Amortization: | |||||||||
Restaurants | $ | 1,916,000 | $ | 1,704,000 | |||||
Package stores | 218,000 | 388,000 | |||||||
2,134,000 | 2,092,000 | ||||||||
Corporate | 453,000 | 436,000 | |||||||
Total Depreciation and Amortization | $ | 2,587,000 | $ | 2,528,000 |
QUARTERLY_INFORMATION_Tables
QUARTERLY INFORMATION (Tables) | 12 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Quarterly information | ' | ||||||||||||||||
The following is a summary of our unaudited quarterly results of operations for the quarters in our fiscal years 2013 and 2012. | |||||||||||||||||
Quarter Ended | |||||||||||||||||
Dec. 29, | March 30, | June 29, | Sept. 28, | ||||||||||||||
2012 | 2013 | 2013 | 2013 | ||||||||||||||
Revenues | $ | 19,613,000 | $ | 22,255,000 | $ | 21,012,000 | $ | 19,918,000 | |||||||||
Income from operations | 636,000 | 1,405,000 | 1,629,000 | 967,000 | |||||||||||||
Net income attributable to | 345,000 | 750,000 | 660,000 | 222,000 | |||||||||||||
stockholders | |||||||||||||||||
Net income per share – | 0.19 | 0.4 | 0.35 | 0.12 | |||||||||||||
basic and diluted | |||||||||||||||||
Weighted average common | |||||||||||||||||
stock outstanding – basic and diluted | 1,859,987 | 1,859,257 | 1,859,257 | 1,859,257 | |||||||||||||
Quarter Ended | |||||||||||||||||
Dec. 31, | March 31, | June 30, | Sept. 29, | ||||||||||||||
2011 | 2012 | 2012 | 2012 | ||||||||||||||
Revenues | $ | 18,952,000 | $ | 20,618,000 | $ | 19,382,000 | $ | 18,383,000 | |||||||||
Income from operations | 660,000 | 1,113,000 | 969,000 | 829,000 | |||||||||||||
Net income attributable to | 336,000 | 509,000 | 236,000 | 332,000 | |||||||||||||
stockholders | |||||||||||||||||
Net income per share – | 0.18 | 0.27 | 0.13 | 0.18 | |||||||||||||
basic and diluted | |||||||||||||||||
Weighted average common | 1,860,752 | 1,860,057 | 1,860,057 | 1,860,057 | |||||||||||||
stock outstanding – basic and diluted |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) (USD $) | 12 Months Ended | |
Sep. 28, 2013 | Sep. 29, 2012 | |
Number | ||
Number of units operated | 25 | ' |
Number of units franchised | 5 | ' |
Number of units franchised - restaurants | 2 | ' |
Number of units franchised, operated - restaurants | 1 | ' |
Number of units franchised - combination - restaurants/package liquor stores | 3 | ' |
Federally insured limits | $250,000 | ' |
Deposits in excess of federally insured amounts | 5,301,000 | ' |
Preopening costs expensed | 208,000 | 107,000 |
Advertising costs | 454,000 | 531,000 |
Full risk exposure amount per occurrence | 50,000 | ' |
Full risk exposure amount per occurrence, limited partnerships | 10,000 | ' |
Full risk exposure amount per occurrence, insurance carrier coverage | 1,000,000 | ' |
Full risk exposure amount per occurrence, maximum aggregate from insurance carrier | 2,000,000 | ' |
Full risk exposure amount per occurrence, excess insurance carrier coverage | 6,000,000 | ' |
Uninsured amount in excess of per occurrence | $7,000,000 | ' |
Tax positions meeting the more than likely threshold, percentage likehood of being realized | 50.00% | ' |
Other Companies and Limited Partnerships | Minimum | ' | ' |
Interest in other companies and limited partnerships | 20.00% | ' |
Other Companies and Limited Partnerships | Maximum | ' | ' |
Interest in other companies and limited partnerships | 50.00% | ' |
PROPERTY_AND_EQUIPMENT_Details
PROPERTY AND EQUIPMENT (Details Narrative) (USD $) | 12 Months Ended | |
Sep. 28, 2013 | Sep. 29, 2012 | |
Property, Plant and Equipment [Abstract] | ' | ' |
Depreciation and amortization expense | $2,453,000 | $2,377,000 |
PROPERTY_AND_EQUIPMENT_Details1
PROPERTY AND EQUIPMENT (Details) (USD $) | Sep. 28, 2013 | Sep. 29, 2012 |
Property and equipment - gross | $57,664,000 | $52,512,000 |
Less accumulated depreciation and amortization | 23,037,000 | 20,917,000 |
Property and equipment - net | 34,627,000 | 31,595,000 |
Furniture and Fixtures | ' | ' |
Property and equipment - gross | 10,821,000 | 10,269,000 |
Leasehold Improvements | ' | ' |
Property and equipment - gross | 20,599,000 | 18,905,000 |
Land and Land Improvements | ' | ' |
Property and equipment - gross | 14,595,000 | 12,030,000 |
Building and Building Improvements | ' | ' |
Property and equipment - gross | 12,305,000 | 10,557,000 |
Vehicles | ' | ' |
Property and equipment - gross | $776,000 | $751,000 |
LEASEHOLD_INTERESTS_Details
LEASEHOLD INTERESTS (Details) (USD $) | Sep. 28, 2013 | Sep. 29, 2012 |
Leases [Abstract] | ' | ' |
Leasehold interests, at cost | $3,024,000 | $3,024,000 |
Less accumulated amortization | 1,981,000 | 1,847,000 |
Leasehold interests, net | $1,043,000 | $1,177,000 |
LEASEHOLD_INTERESTS_Details_1
LEASEHOLD INTERESTS (Details 1) (USD $) | Sep. 28, 2013 | Sep. 29, 2012 |
Leases [Abstract] | ' | ' |
2014 | $134,000 | ' |
2015 | 134,000 | ' |
2016 | 128,000 | ' |
2017 | 122,000 | ' |
2018 | 122,000 | ' |
Thereafter | 415,000 | ' |
Total | $1,043,000 | $1,177,000 |
INVESTMENT_IN_LIMITED_PARTNERS1
INVESTMENT IN LIMITED PARTNERSHIPS (Details Narrative) | Sep. 28, 2013 | Sep. 29, 2012 |
Number of restaurants | 2 | ' |
Return of capital, percentage of cash invested in limited partnership | 25.00% | ' |
Available cash in excess of cash invested, percentage paid management fee | 50.00% | ' |
Available cash in excess of cash invested, percentage paid investors | 50.00% | ' |
Annual management fee percentage of cash available to be distributed | 50.00% | ' |
Profit distribution percentage of cash available to be distributed to investors | 50.00% | ' |
Percentage of gross sales fee for use of service mark | 3.00% | ' |
Limited Partnerships | ' | ' |
Number of restaurants | 10 | ' |
Limited Partnerships - Returned All Cash Invested | ' | ' |
Number of restaurants | 3 | ' |
Surfside, Florida | ' | ' |
Annual management fee percentage of cash available to be distributed | 50.00% | ' |
Ownership percentage | 45.00% | ' |
Ownership percentage, related party | 34.90% | ' |
Kendall, Florida | ' | ' |
Annual management fee percentage of cash available to be distributed | 50.00% | ' |
Ownership percentage | 41.00% | ' |
Ownership percentage, related party | 29.70% | ' |
West Miami, Florida | ' | ' |
Annual management fee percentage of cash available to be distributed | 50.00% | ' |
Ownership percentage | 27.00% | ' |
Ownership percentage, related party | 34.10% | ' |
Weston, Florida | ' | ' |
Ownership percentage | 30.00% | ' |
Ownership percentage, related party | 35.10% | ' |
Percentage of intital investment returned | 81.25% | ' |
Wellington, Florida | ' | ' |
Ownership percentage | 28.00% | ' |
Ownership percentage, related party | 25.70% | ' |
Percentage of intital investment returned | 65.00% | 56.00% |
Pinecrest, Florida | ' | ' |
Ownership percentage | 40.00% | ' |
Ownership percentage, related party | 15.00% | ' |
Percentage of intital investment returned | 92.00% | 80.00% |
Pembroke Pines, Florida | ' | ' |
Ownership percentage | 18.00% | ' |
Ownership percentage, related party | 17.90% | ' |
Percentage of intital investment returned | 45.00% | 41.00% |
Davie, Florida | ' | ' |
Ownership percentage | 48.00% | ' |
Ownership percentage, related party | 9.70% | ' |
Percentage of intital investment returned | 35.50% | 27.50% |
Miami, Florida | ' | ' |
Ownership percentage | 5.00% | ' |
Ownership percentage, related party | 24.30% | ' |
Percentage of intital investment returned | 6.00% | ' |
Fort Lauderdale, Florida | ' | ' |
Ownership percentage | 25.00% | ' |
Ownership percentage, related party | 60.10% | ' |
INVESTMENTS_IN_LIMITED_PARTNER1
INVESTMENTS IN LIMITED PARTNERSHIPS (Details) (USD $) | 12 Months Ended | |
Sep. 28, 2013 | Sep. 29, 2012 | |
Financial Position: | ' | ' |
Current assets | $453,000 | $277,000 |
Non-current assets | 418,000 | 439,000 |
Current liabilities | 114,000 | 141,000 |
Operating Results: | ' | ' |
Revenues | 2,777,000 | 2,641,000 |
Gross profit | 1,847,000 | 1,751,000 |
Net income | $242,000 | $181,000 |
INVESTMENT_IN_REAL_PROPERTY_FI1
INVESTMENT IN REAL PROPERTY FINANCED BY DEBT (Details Narrative) (USD $) | 3 Months Ended | 12 Months Ended | ||
Dec. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | |
Two Mortgage Loan Parcels | ||||
Property Purchased | $2,900,000 | ' | ' | ' |
Debt face amount | ' | ' | ' | 1,950,000 |
Interest rate | ' | ' | ' | 7.50% |
Monthly payment | ' | ' | ' | 15,700 |
Payment frequency | ' | ' | ' | 'Monthly |
Principal to be repaid | ' | ' | ' | 1,331,000 |
Long term debt, gross | ' | $13,546,000 | $13,418,000 | $1,921,000 |
REFINANCING_OF_EXISTING_DEBT_L1
RE-FINANCING OF EXISTING DEBT; LINE OF CREDIT (Details Narrative) (USD $) | 6 Months Ended | 3 Months Ended | 6 Months Ended | 6 Months Ended | |||
Mar. 30, 2013 | Mar. 30, 2013 | Sep. 28, 2013 | Mar. 30, 2013 | Sep. 28, 2013 | Mar. 30, 2013 | Sep. 28, 2013 | |
Line of Credit | Line of Credit | $1.405M Mortgage Loan | $1.405M Mortgage Loan | $1.595M Mortgage Loan | $1.595M Mortgage Loan | ||
Debt face amount | ' | ' | ' | ' | $1,405,000 | ' | $1,595,000 |
Interest rate | ' | ' | ' | ' | 4.35% | ' | ' |
Monthly payment | ' | ' | ' | 8,415 | ' | 41,000 | ' |
Payment frequency | ' | ' | ' | 'Monthly | ' | 'Monthly | ' |
Variable interest rate, description | ' | 'Prime | ' | ' | ' | 'LIBOR - 1 month | ' |
Variable interest rate spread | ' | 1.50% | ' | ' | ' | 3.25% | ' |
Fixed interest rate | ' | ' | ' | ' | ' | ' | 4.00% |
Payment of term loan | 325,000 | ' | ' | ' | ' | ' | ' |
Pre-payment penalty paid | 1,600 | ' | ' | ' | ' | ' | ' |
Line of credit, maximum borrowing capacity | ' | ' | $500,000 | ' | ' | ' | ' |
Variable interest rate at period end | ' | ' | ' | ' | 24.30% | ' | 34.30% |
LIQUOR_LICENSES_Details_Narrat
LIQUOR LICENSES (Details Narrative) (USD $) | Sep. 28, 2013 | Sep. 29, 2012 |
Notes to Financial Statements | ' | ' |
Liquor licenses | $630,000 | $470,000 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 12 Months Ended | |
Sep. 28, 2013 | Sep. 29, 2012 | |
Current: | ' | ' |
Federal | $803,000 | $660,000 |
State | 218,000 | 175,000 |
[CurrentIncomeTaxExpenseBenefit] | 1,021,000 | 835,000 |
Deferred: | ' | ' |
Federal | -96,000 | -63,000 |
State | -10,000 | -7,000 |
[DeferredIncomeTaxExpenseBenefit] | -106,000 | -70,000 |
Provision for Income Taxes | $915,000 | $765,000 |
INCOME_TAXES_Details_1
INCOME TAXES (Details 1) (USD $) | 12 Months Ended | |
Sep. 28, 2013 | Sep. 29, 2012 | |
Reconciliation of Income Tax: | ' | ' |
Tax provision at the statutory rate | $983,000 | $741,000 |
State income taxes, net of federal income tax | 121,000 | 94,000 |
FICA tip credit | -241,000 | -227,000 |
True up adjustment | 22,000 | 110,000 |
Other permanent items | 30,000 | 47,000 |
Provision for Income Taxes | $915,000 | $765,000 |
Statutory tax rate | 34.00% | 34.00% |
INCOME_TAXES_Details_2
INCOME TAXES (Details 2) (USD $) | Sep. 28, 2013 | Sep. 29, 2012 |
Current: | ' | ' |
Reversal of aged payables | $27,000 | $27,000 |
Capitalized inventory costs | 26,000 | 25,000 |
Accrued bonuses | 222,000 | 188,000 |
Accruals for potential uninsured claims | 57,000 | 30,000 |
Gift cards | 108,000 | 72,000 |
Limited partnership management fees | 27,000 | 29,000 |
Deferred tax asset | 467,000 | 371,000 |
Long-Term: | ' | ' |
Book/tax differences in property and equipment | 632,000 | 540,000 |
Limited partnership investments | 299,000 | 386,000 |
Accrued limited retirement | 40,000 | 35,000 |
[DeferredTaxAssetsNetNoncurrent} | $971,000 | $961,000 |
DEBT_Details
DEBT (Details) (USD $) | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 |
Mortgage payable to lender # 1 | Mortgage payable to lender # 1 | Mortgage payable to lender #2 | Term loan payable to lender #1 | Term loan payable to lender #1 | Term loan payable to lender #2 | Mortgage payable to related third party #1 | Mortgage payable to related third party #1 | Mortgage payable to lender #3 | Mortgage payable to lender #3 | Mortgage payable to unrelated third party #1 | Mortgage payable to unrelated third party #1 | Mortgage payable to unrelated third party #2 | Mortgage payable to unrelated third party #2 | Financed Insurance Premiums | Financed Insurance Premiums | Mortgage payable to related third party #2 | Mortgage payable to related third party #2 | Other | Other | Term loan payable to lender #3 | Mortgage payable to lender #4 | Mortgage payable to lender #5 | |||
Number | |||||||||||||||||||||||||
Long term debt, gross | $13,546,000 | $13,418,000 | $4,106,000 | $4,331,000 | $2,958,000 | $960,000 | $1,387,000 | $508,000 | $902,000 | $939,000 | $849,000 | $879,000 | $723,000 | $760,000 | $429,000 | $433,000 | $116,000 | $333,000 | $775,000 | $806,000 | $83,000 | $84,000 | $1,921,000 | $1,375,000 | $1,307,000 |
Current portion of long term debt | 1,477,000 | 1,732,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-Term Debt, Net of Current Portion | 12,069,000 | 11,686,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maturity date | ' | ' | 1-Dec-19 | ' | 1-Oct-13 | 1-Dec-15 | ' | 31-Aug-13 | 30-Sep-18 | ' | 31-Aug-17 | ' | 30-Nov-17 | ' | 31-May-17 | ' | ' | ' | 31-Jan-19 | ' | ' | ' | 31-Dec-22 | 31-Jan-23 | 24-Jul-17 |
Fixed interest rate | ' | ' | 4.51% | ' | 7.50% | 3.43% | ' | 4.55% | 10.00% | ' | 5.11% | ' | 8.50% | ' | 10.00% | ' | ' | ' | 10.00% | ' | ' | ' | 7.50% | 4.35% | 4.00% |
Variable interest rate | ' | ' | 2.43% | ' | ' | 2.43% | ' | ' | ' | ' | 2.43% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.43% | 3.43% |
Variable interest rate, description | ' | ' | 'BBA Libor - 1 month + 2.25% interest rate | ' | ' | 'BBA Libor - 1 month + 2.25% interest rate | ' | 'BBA LIBOR +3.25% | ' | ' | 'BBA LIBOR +2.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'BBA Libor - 1 month + 2.25% interest rate | 'BBA Libor - 1 month + 3.25% interest rate |
Variable interest rate spread | ' | ' | 2.25% | ' | ' | 2.25% | ' | 3.25% | ' | ' | 2.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.25% | 3.25% |
Interest rate, minimum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.99% | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate, maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.89% | ' | ' | ' | ' | ' | ' | ' | ' |
Monthly payment | ' | ' | 23,700 | ' | 28,600 | 38,000 | ' | 50,000 | 10,800 | ' | 4,600 | ' | 8,400 | ' | 4,000 | ' | 24,000 | ' | 9,100 | ' | ' | ' | 15,700 | 8,415 | 41,000 |
Payment frequency | ' | ' | 'Monthly | ' | 'Monthly | 'Monthly | ' | 'Monthly | 'Monthly | ' | 'Monthly | ' | 'Monthly | ' | 'Monthly | ' | 'Monthly | ' | 'Monthly | ' | ' | ' | 'Monthly | 'Monthly | 'Monthly |
Principal amount fixed | ' | ' | 3,750,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal amount variable | ' | ' | 750,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ballon payment | ' | ' | ' | ' | $2,833,000 | ' | ' | ' | $658,000 | ' | $720,000 | ' | $537,000 | ' | $413,000 | ' | ' | ' | $555,000 | ' | ' | ' | $1,331,000 | $858,000 | ' |
Amortization period | ' | ' | '20 years | ' | ' | '3 years 9 months | ' | '3 years | '15 years | ' | '20 years | ' | '15 years | ' | '30 years | ' | ' | ' | '15 years | ' | ' | ' | '20 years | '20 years | ' |
Term for interest only payments | ' | ' | ' | ' | ' | '3 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of payments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 42 |
DEBT_Details_1
DEBT (Details 1) (USD $) | Sep. 28, 2013 |
Debt maturing in fiscal year: | ' |
2014 | $1,477,000 |
2015 | 1,361,000 |
2016 | 1,054,000 |
2017 | 2,179,000 |
2018 | 1,086,000 |
Thereafter | 6,389,000 |
[LongTermDebt] | $13,546,000 |
STOCK_OPTION_PLAN_Details_Narr
STOCK OPTION PLAN (Details Narrative) | 12 Months Ended |
Sep. 28, 2013 | |
Stock Option Plan Details Narrative | ' |
Exercise price under stock option plan | 'The exercise price for the qualified stock options must be no less than 100% of the fair market value of the Company's Common Stock on the date the options are granted. |
Vesting period of options | '1 year |
Expiration of stock options, if granted | '5 years |
Number of shares available for grant, stock option plan | 45,000 |
COMMITMENTS_CONTINGENCIES_AND_2
COMMITMENTS, CONTINGENCIES AND OTHER MATTERS (Details Narrative) (USD $) | 12 Months Ended | ||
Sep. 28, 2013 | Sep. 29, 2012 | Oct. 22, 2013 | |
sqft | |||
Lease rental sales override, percentage of annual sales | 7.30% | ' | ' |
Building, square footage | 4,120 | ' | ' |
Rent revenue | $49,000 | $54,000 | ' |
Sales tax, percentage | 6.00% | ' | ' |
Rent payable | 29,000 | ' | ' |
Performance bonuses | 920,000 | 739,000 | ' |
Owner's fee | 150,000 | 157,000 | ' |
Management agreement fee receivable | 112,000 | 162,000 | ' |
Future minimum sublease payments | 77,000 | ' | ' |
Purchase commitment, rib supplier | ' | ' | 4,260,000 |
Fiscal agent, annual fee amount | 25,000 | ' | ' |
Royalities, gross sales | 3.00% | ' | ' |
Royalities, gross package liquor sales | 1.00% | ' | ' |
Atlanta, Georgia | ' | ' | ' |
Royalities, gross package liquor sales | 10.00% | ' | ' |
Deerfield Beach, Florida | ' | ' | ' |
Management fee revenue | 385,000 | 320,000 | ' |
Amount paid to manage restaurant | 500,000 | ' | ' |
Amortization period of management agreement | '10 years | ' | ' |
Chief Executive Officer | ' | ' | ' |
Percentage of corporate pre-tax income in paid to management | 14.00% | ' | ' |
COO and CFO | ' | ' | ' |
Percentage of corporate pre-tax income in paid to management | 5.00% | ' | ' |
Amount of income at which bonuses begin to acrue | 650,000 | ' | ' |
Management | ' | ' | ' |
Percentage of corporate pre-tax income in paid to management | 6.00% | ' | ' |
Limited Partnership | ' | ' | ' |
Percentage of corporate pre-tax income in paid to management | 5.00% | ' | ' |
Amount of income at which bonuses begin to acrue | 1,875,000 | ' | ' |
Performance bonuses | 550,000 | 460,000 | ' |
Vice President | ' | ' | ' |
Percentage of corporate pre-tax income in paid to management | 3.00% | ' | ' |
Performance bonuses | $34,000 | $33,000 | ' |
Minimum | ' | ' | ' |
Lease rental sales override, percentage of annual sales | 3.00% | ' | ' |
Lease rental sales override for limited partnership, percentage of annual sales | 2.00% | ' | ' |
Sales tax, percentage | 6.00% | ' | ' |
Maximum | ' | ' | ' |
Lease rental sales override, percentage of annual sales | 4.00% | ' | ' |
Lease rental sales override for limited partnership, percentage of annual sales | 5.50% | ' | ' |
Sales tax, percentage | 7.00% | ' | ' |
COMMITMENTS_CONTINGENCIES_AND_3
COMMITMENTS, CONTINGENCIES AND OTHER MATTERS (Details) (USD $) | Sep. 28, 2013 |
Commitments and Contingencies Disclosure [Abstract] | ' |
2014 | $2,675,000 |
2015 | 2,396,000 |
2016 | 1,985,000 |
2017 | 1,670,000 |
2018 | 1,183,000 |
Thereafter | 3,289,000 |
Total | $13,198,000 |
COMMITMENTS_CONTINGENCIES_AND_4
COMMITMENTS, CONTINGENCIES AND OTHER MATTERS (Details 1) (USD $) | 12 Months Ended | |
Sep. 28, 2013 | Sep. 29, 2012 | |
Commitments and Contingencies Disclosure [Abstract] | ' | ' |
Minimum Base Rent | $2,461,000 | $2,451,000 |
Contingent Percentage Rent | 518,000 | 471,000 |
Rent expense | $2,979,000 | $2,922,000 |
FAIR_VALUE_MEASUREMENTS_OF_FIN1
FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS (Details Narrative) (USD $) | 12 Months Ended |
Sep. 28, 2013 | |
Number | |
Number of variable rate debt instruments | 5 |
Mortgage Loan Swap | ' |
Fixed interest rate | 5.11% |
Notional principal amount | 935,000 |
Variable interest rate, description | 'LIBOR, Daily Floating rate plus 2.25% |
Variable interest rate, floating | 2.25% |
Term of swap | '7 years |
$4.5M Mortgage Loan Swap | ' |
Fixed interest rate | 4.51% |
Notional principal amount | 3,750,000 |
Variable interest rate, description | 'LIBOR - 1 Month, plus 2.25% |
Variable interest rate, floating | 2.25% |
Term of swap | '8 years |
$1.6M Term Loan Swap | ' |
Fixed interest rate | 3.43% |
Notional principal amount | 1,600,000 |
Variable interest rate, description | 'LIBOR - 1 Month, plus 2.25% |
Variable interest rate, floating | 2.25% |
Term of swap | '4 years |
$1.405M Term Loan Swap | ' |
Fixed interest rate | 4.35% |
Notional principal amount | 1,405,000 |
Variable interest rate, description | 'LIBOR - 1 Month, plus 2.25% |
Variable interest rate, floating | 225.00% |
Term of swap | '20 years |
$1.595M Term Loan Swap | ' |
Fixed interest rate | 4.00% |
Notional principal amount | 1,595,000 |
Variable interest rate, description | 'LIBOR - 1 Month, plus 3.25% |
Variable interest rate, floating | 3.25% |
Term of swap | '42 months |
COMMON_STOCK_Details_Narrative
COMMON STOCK (Details Narrative) (Joseph G. Flanigan Charitable Trust, USD $) | 12 Months Ended | |
Sep. 28, 2013 | Sep. 29, 2012 | |
Joseph G. Flanigan Charitable Trust | ' | ' |
Repurchase of common stock (in shares) | 800 | 800 |
Repurchase of common stock | $6,000 | $6,000 |
BUSINESS_SEGMENTS_Details
BUSINESS SEGMENTS (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 28, 2013 | Sep. 29, 2012 | |
Operating Revenues: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating revenues | $19,918,000 | $21,012,000 | $22,255,000 | $19,613,000 | $18,383,000 | $19,382,000 | $20,618,000 | $18,952,000 | $82,798,000 | $77,335,000 |
Income before corporate expenses | ' | ' | ' | ' | ' | ' | ' | ' | 7,047,000 | 6,143,000 |
Corporate expenses, net of other revenues | ' | ' | ' | ' | ' | ' | ' | ' | -2,410,000 | -2,572,000 |
Income from Operations | 967,000 | 1,629,000 | 1,405,000 | 636,000 | 829,000 | 969,000 | 1,113,000 | 660,000 | 4,637,000 | 3,571,000 |
Interest and other income | ' | ' | ' | ' | ' | ' | ' | ' | 28,000 | 73,000 |
Net income Attributable to Noncontrolling Interests | ' | ' | ' | ' | ' | ' | ' | ' | -955,000 | -660,000 |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | -818,000 | -806,000 |
Income Before Income Taxes | ' | ' | ' | ' | ' | ' | ' | ' | 2,892,000 | 2,178,000 |
Identifiable Assets: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assets | 49,624,000 | ' | ' | ' | 46,744,000 | ' | ' | ' | 49,624,000 | 46,744,000 |
Capital Expenditures: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 5,702,000 | 7,800,000 |
Depreciation and Amortization: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 2,587,000 | 2,528,000 |
Restaurants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Revenues: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating revenues | ' | ' | ' | ' | ' | ' | ' | ' | 67,441,000 | 62,198,000 |
Income before corporate expenses | ' | ' | ' | ' | ' | ' | ' | ' | 6,124,000 | 5,269,000 |
Identifiable Assets: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assets | 27,460,000 | ' | ' | ' | 22,133,000 | ' | ' | ' | 27,460,000 | 22,133,000 |
Capital Expenditures: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 5,093,000 | 1,144,000 |
Depreciation and Amortization: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 1,916,000 | 1,704,000 |
Package stores | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Revenues: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating revenues | ' | ' | ' | ' | ' | ' | ' | ' | 13,192,000 | 13,214,000 |
Income before corporate expenses | ' | ' | ' | ' | ' | ' | ' | ' | 923,000 | 874,000 |
Identifiable Assets: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assets | 4,490,000 | ' | ' | ' | 4,952,000 | ' | ' | ' | 4,490,000 | 4,952,000 |
Capital Expenditures: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 206,000 | 101,000 |
Depreciation and Amortization: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 218,000 | 388,000 |
Other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Revenues: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating revenues | ' | ' | ' | ' | ' | ' | ' | ' | 2,165,000 | 1,923,000 |
Total segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Identifiable Assets: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assets | 31,950,000 | ' | ' | ' | 27,085,000 | ' | ' | ' | 31,950,000 | 27,085,000 |
Capital Expenditures: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 5,299,000 | 1,245,000 |
Depreciation and Amortization: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 2,134,000 | 2,092,000 |
Corporate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Identifiable Assets: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assets | 17,674,000 | ' | ' | ' | 19,659,000 | ' | ' | ' | 17,674,000 | 19,659,000 |
Capital Expenditures: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 403,000 | 6,555,000 |
Depreciation and Amortization: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | $453,000 | $436,000 |
QUARTERLY_INFORMATION_Details
QUARTERLY INFORMATION (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 28, 2013 | Sep. 29, 2012 | |
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | $19,918,000 | $21,012,000 | $22,255,000 | $19,613,000 | $18,383,000 | $19,382,000 | $20,618,000 | $18,952,000 | $82,798,000 | $77,335,000 |
Income from operations | 967,000 | 1,629,000 | 1,405,000 | 636,000 | 829,000 | 969,000 | 1,113,000 | 660,000 | 4,637,000 | 3,571,000 |
Net income attributable to stockholders | $222,000 | $660,000 | $750,000 | $345,000 | $332,000 | $236,000 | $509,000 | $336,000 | $1,977,000 | $1,413,000 |
Net income per share - Basic and Diluted | $0.12 | $0.35 | $0.40 | $0.19 | $0.18 | $0.13 | $0.27 | $0.18 | $1.10 | $0.76 |
Weighted average common stock outstanding - basic and diluted | 1,859,257 | 1,859,257 | 1,859,257 | 1,859,987 | 1,860,057 | 1,860,057 | 1,860,057 | 1,860,752 | 1,859,629 | 1,860,231 |
401k_PLAN_Details_Narrative
401(k) PLAN (Details Narrative) (USD $) | 12 Months Ended | |
Sep. 28, 2013 | Sep. 29, 2012 | |
Compensation and Retirement Disclosure [Abstract] | ' | ' |
Discretionary contributions to 401(k) | $24,000 | $23,000 |