Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jun. 29, 2019 | Aug. 13, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | FLANIGANS ENTERPRISES INC | |
Entity Central Index Key | 0000012040 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 29, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --09-28 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 1,858,647 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2019 | |
Entity Interactive Data Current | Yes | |
Entity Current Reporting Status | Yes |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
REVENUES: | ||||
Restaurant food sales | $ 18,447 | $ 17,852 | $ 53,494 | $ 53,368 |
Restaurant bar sales | 5,652 | 5,470 | 16,720 | 16,595 |
Package store sales | 4,752 | 4,435 | 14,979 | 14,314 |
Franchise related revenues | 414 | 420 | 1,210 | 1,243 |
Rental income | 186 | 156 | 576 | 471 |
Owner's fee | 38 | 113 | ||
Other operating income | 61 | 65 | 163 | 181 |
Total | 29,512 | 28,436 | 87,142 | 86,285 |
Cost of merchandise sold: | ||||
Restaurant and lounges | 8,381 | 8,056 | 24,423 | 24,251 |
Package goods | 3,419 | 3,168 | 10,906 | 10,297 |
Payroll and related costs | 9,105 | 8,817 | 26,770 | 26,357 |
Occupancy costs | 1,533 | 1,408 | 4,547 | 4,298 |
Selling, general and administrative expenses | 5,130 | 4,893 | 16,007 | 14,889 |
Total | 27,568 | 26,342 | 82,653 | 80,092 |
Income from Operations | 1,944 | 2,094 | 4,489 | 6,193 |
OTHER INCOME (EXPENSE): | ||||
Interest expense | (175) | (193) | (541) | (565) |
Interest and other income | 16 | 17 | 42 | 44 |
Insurance recovery, net of casualty loss | 602 | |||
Total other income (expense) | (159) | (176) | 103 | (521) |
Income before Provision for Income Taxes | 1,785 | 1,918 | 4,592 | 5,672 |
Provision for Income Taxes | (309) | (303) | (653) | (1,216) |
Net Income | 1,476 | 1,615 | 3,939 | 4,456 |
Less: Net income attributable to noncontrolling interests | (508) | (572) | (1,207) | (1,395) |
Net Income attributable to stockholders | $ 968 | $ 1,043 | $ 2,732 | $ 3,061 |
Net Income Per Common Share: | ||||
Basic and Diluted | $ 0.52 | $ 0.56 | $ 1.47 | $ 1.65 |
Weighted Average Shares and Equivalent Shares Outstanding | ||||
Basic and Diluted | 1,858,647 | 1,858,647 | 1,858,647 | 1,858,647 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Jun. 29, 2019 | Sep. 29, 2018 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 12,533 | $ 13,414 |
Prepaid income taxes | 126 | 257 |
Other receivables | 636 | 474 |
Inventories | 3,505 | 3,223 |
Prepaid expenses | 2,017 | 1,657 |
Total Current Assets | 18,817 | 19,025 |
Property and Equipment, Net | 46,345 | 42,350 |
Construction in Progress | 859 | 3,013 |
Total Property, Equipment and Construction in Progress | 47,204 | 45,363 |
Investment in Limited Partnership | 234 | 251 |
OTHER ASSETS: | ||
Liquor licenses | 630 | 630 |
Deferred tax asset | 250 | 612 |
Leasehold purchases, net | 326 | 417 |
Other | 516 | 967 |
Total Other Assets | 1,722 | 2,626 |
Total Assets | 67,977 | 67,265 |
CURRENT LIABILITIES: | ||
Accounts payable and accrued expenses | 8,280 | 9,219 |
Due to franchisees | 2,315 | 2,054 |
Current portion of long term debt | 4,870 | 1,963 |
Deferred rent | 64 | 74 |
Total Current Liabilities | 15,529 | 13,310 |
Long Term Debt, Net of Current Maturities | 8,958 | 12,613 |
Flanigan's Enterprises, Inc. Stockholders' Equity | ||
Common stock, $.10 par value, 5,000,000 shares authorized; 4,197,642 shares issued | 420 | 420 |
Capital in excess of par value | 6,240 | 6,240 |
Retained earnings | 36,822 | 34,610 |
Treasury stock, at cost, 2,338,995 shares at June 29, 2019 and 2,338,995 shares at September 29, 2018 | (6,077) | (6,077) |
Total Flanigan's Enterprises, Inc. stockholders' equity | 37,405 | 35,193 |
Noncontrolling interest | 6,085 | 6,149 |
Total equity | 43,490 | 41,342 |
Total liabilities and equity | $ 67,977 | $ 67,265 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares | Jun. 29, 2019 | Sep. 29, 2018 |
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 |
Treasury stock, shares, at cost | 2,338,995 | 2,338,995 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock [Member] | Capital in Excess of Par Value [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Noncontrolling Interests [Member] | Total |
Balance, beginning at Sep. 30, 2017 | $ 420 | $ 6,240 | $ 31,398 | $ (6,077) | $ 6,158 | $ 38,176 |
Balance, shares, beginning at Sep. 30, 2017 | 4,197,642 | 2,338,995 | ||||
Net income | 621 | 335 | 956 | |||
Distributions to noncontrolling interests | (372) | (372) | ||||
Balance, ending at Dec. 30, 2017 | $ 420 | 6,240 | 32,019 | $ (6,077) | 6,158 | 38,760 |
Balance, shares, ending at Dec. 30, 2017 | 4,197,642 | 2,338,995 | ||||
Balance, beginning at Sep. 30, 2017 | $ 420 | 6,240 | 31,398 | $ (6,077) | 6,158 | 38,176 |
Balance, shares, beginning at Sep. 30, 2017 | 4,197,642 | 2,338,995 | ||||
Net income | 4,456 | |||||
Balance, ending at Jun. 30, 2018 | $ 420 | 6,240 | 33,994 | $ (6,077) | 6,283 | 40,860 |
Balance, shares, ending at Jun. 30, 2018 | 4,197,642 | 2,338,995 | ||||
Balance, beginning at Dec. 31, 2017 | $ 420 | 6,240 | 32,019 | $ (6,077) | 6,158 | 38,760 |
Balance, shares, beginning at Dec. 31, 2017 | 4,197,642 | 2,338,995 | ||||
Net income | 1,397 | 488 | 1,885 | |||
Distributions to noncontrolling interests | (463) | (463) | ||||
Acquisition of minority interest | (2) | (2) | ||||
Dividends paid | (465) | (465) | ||||
Balance, ending at Mar. 31, 2018 | $ 420 | 6,240 | 32,951 | $ (6,077) | 6,181 | 39,715 |
Balance, shares, ending at Mar. 31, 2018 | 4,197,642 | 2,338,995 | ||||
Net income | 1,043 | 572 | 1,615 | |||
Distributions to noncontrolling interests | (470) | (470) | ||||
Balance, ending at Jun. 30, 2018 | $ 420 | 6,240 | 33,994 | $ (6,077) | 6,283 | 40,860 |
Balance, shares, ending at Jun. 30, 2018 | 4,197,642 | 2,338,995 | ||||
Balance, beginning at Sep. 29, 2018 | $ 420 | 6,240 | 34,610 | $ (6,077) | 6,149 | 41,342 |
Balance, shares, beginning at Sep. 29, 2018 | 4,197,642 | 2,338,995 | ||||
Net income | 743 | 255 | 998 | |||
Distributions to noncontrolling interests | (437) | (437) | ||||
Balance, ending at Dec. 29, 2018 | $ 420 | 6,240 | 35,353 | $ (6,077) | 5,967 | 41,903 |
Balance, shares, ending at Dec. 29, 2018 | 4,197,642 | 2,338,995 | ||||
Balance, beginning at Sep. 29, 2018 | $ 420 | 6,240 | 34,610 | $ (6,077) | 6,149 | 41,342 |
Balance, shares, beginning at Sep. 29, 2018 | 4,197,642 | 2,338,995 | ||||
Net income | 3,939 | |||||
Balance, ending at Jun. 29, 2019 | $ 420 | 6,240 | 36,822 | $ (6,077) | 6,085 | 43,490 |
Balance, shares, ending at Jun. 29, 2019 | 4,197,642 | 2,338,995 | ||||
Balance, beginning at Dec. 29, 2018 | $ 420 | 6,240 | 35,353 | $ (6,077) | 5,967 | 41,903 |
Balance, shares, beginning at Dec. 29, 2018 | 4,197,642 | 2,338,995 | ||||
Net income | 1,021 | 444 | 1,465 | |||
Distributions to noncontrolling interests | (464) | (464) | ||||
Dividends paid | (521) | (521) | ||||
Balance, ending at Mar. 30, 2019 | $ 420 | 6,240 | 35,853 | $ (6,077) | 5,947 | 42,383 |
Balance, shares, ending at Mar. 30, 2019 | 4,197,642 | 2,338,995 | ||||
Net income | 968 | 508 | 1,476 | |||
Distributions to noncontrolling interests | (365) | (365) | ||||
Acquisition of minority interest | (5) | (5) | ||||
Dividends paid | (1) | (1) | ||||
Balance, ending at Jun. 29, 2019 | $ 420 | $ 6,240 | $ 36,822 | $ (6,077) | $ 6,085 | $ 43,490 |
Balance, shares, ending at Jun. 29, 2019 | 4,197,642 | 2,338,995 |
UNAUDITED CONDENSED CONSOLIDA_2
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 29, 2019 | Jun. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 3,939 | $ 4,456 |
Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities: | ||
Depreciation and amortization | 2,154 | 1,990 |
Amortization of leasehold purchases | 91 | 91 |
Loss on abandonment of property and equipment | 52 | 27 |
Insurance recovery, net of casualty loss | 118 | |
Amortization of deferred loan costs | 24 | 30 |
Deferred income tax | 362 | 653 |
Deferred rent | (10) | (10) |
Income from unconsolidated limited partnership | (13) | (43) |
Changes in operating assets and liabilities: (increase) decrease in | ||
Other receivables | (30) | (91) |
Prepaid income taxes | 131 | (252) |
Inventories | (435) | (302) |
Prepaid expenses | 958 | 866 |
Other assets | (193) | 5 |
Increase (decrease) in: | ||
Accounts payable and accrued expenses | (1,216) | (545) |
Due to franchisees | 261 | 612 |
Net cash and cash equivalents provided by operating activities: | 6,193 | 7,487 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of property and equipment | (3,685) | (1,567) |
Purchase of construction in process | (775) | (1,439) |
Deposit on property and equipment | (140) | (538) |
Proceeds from sale of property and equipment | 32 | 64 |
Insurance recovery | 1,068 | |
Distributions from unconsolidated limited partnerships | 30 | 25 |
Net cash and cash equivalents used in investing activities: | (3,470) | (3,455) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Payment of long term debt | (2,063) | (1,745) |
Proceeds from long-term debt | 250 | 3,500 |
Dividends paid | (520) | (465) |
Purchase of noncontrolling limited partnership interests | (5) | (2) |
Distributions to limited partnership noncontrolling partners | (1,266) | (1,305) |
Net cash and cash equivalents used in financing activities: | (3,604) | (17) |
Net Increase (Decrease) in Cash and Cash Equivalents | (881) | 4,015 |
Beginning of Period | 13,414 | 9,885 |
End of Period | 12,533 | 13,900 |
Cash paid during period for: | ||
Interest | 541 | 565 |
Income taxes | 55 | 814 |
Supplemental Disclosure of Non-Cash Investing and Financing Activities: | ||
Financing of insurance contracts | 1,041 | 1,057 |
Purchase deposits transferred to property and equipment | 548 | 132 |
Purchase deposits transferred to construction in process | 236 | |
Construction in process transferred to property and equipment | 3,165 | |
Insurance recovery receivable | 132 | |
Purchase of vehicles in exchange for debt | $ 81 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Jun. 29, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | (1) BASIS OF PRESENTATION: The accompanying condensed consolidated financial information for the periods ended June 29, 2019 and June 30, 2018 are unaudited. Financial information as of September 29, 2018 has been derived from the audited financial statements of the Company, but does not include all disclosures required by accounting principles generally accepted in the United States of America. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the financial information for the periods indicated have been included. For further information regarding the Company's accounting policies, refer to the Consolidated Financial Statements and related notes included in the Company's Annual Report on Form 10-K for the year ended September 29, 2018. Operating results for interim periods are not necessarily indicative of results to be expected for a full year. The condensed consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries and the accounts of the eight limited partnerships in which we act as general partner and have controlling interests. All intercompany balances and transactions have been eliminated. Non-controlling interest represents the limited partners’ proportionate share of the net assets and results of operations of the eight limited partnerships. These condensed consolidated financial statements include estimates relating to performance based officers’ bonuses. The estimates are reviewed periodically and the effects of any revisions are reflected in the financial statements in the period they are determined to be necessary. Although these estimates are based on management’s knowledge of current events and actions it may take in the future, they may ultimately differ from actual results. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Jun. 29, 2019 | |
Net Income Per Common Share: | |
EARNINGS PER SHARE | (2) EARNINGS PER SHARE: We follow Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Section 260 - “ Earnings per Share |
RECENTLY ADOPTED AND RECENTLY I
RECENTLY ADOPTED AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Jun. 29, 2019 | |
Recent Adopted And Recent Issued Accounting Pronouncements | |
RECENTLY ADOPTED AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | (3) RECENTLY ADOPTED AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS: Adopted In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, “Revenue from Contracts with Customers,” (ASU 2014-09), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The new standard was effective for interim and annual periods in fiscal years beginning after December 15, 2017. The standard permits the use of either the retrospective or cumulative effect transition method. In August 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-15 “Classification of Certain Cash Receipts and Cash Payments”, which addresses how certain cash receipts and cash payments are presented and classified in the statement of cash flows under Topic 230, “Statement of Cash Flows”, and other Topics. The new standard was effective for interim and annual periods in fiscal years beginning after December 15, 2017. The adoption of this new guidance did not have a material impact on our consolidated financial statements. Issued In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) |
INVESTMENT IN REAL PROPERTY; OP
INVESTMENT IN REAL PROPERTY; OPTION TO LEASE AGREEMENT | 9 Months Ended |
Jun. 29, 2019 | |
Investment in real property option to lease agreement [Abstract] | |
INVESTMENT IN REAL PROPERTY; OPTION TO LEASE AGREEMENT | (4) INVESTMENT IN REAL PROPERTY; OPTION TO LEASE AGREEMENT: Pompano Beach, Florida During the second quarter of our fiscal year 2019, we purchased from an unrelated third party the vacant real property (the “Property”), located at 2119 S.E. 9 th |
EXECUTION OF LEASE FOR NEW LOCA
EXECUTION OF LEASE FOR NEW LOCATION | 9 Months Ended |
Jun. 29, 2019 | |
Leases [Abstract] | |
EXECUTION OF LEASE FOR NEW LOCATION | (5) EXECUTION OF LEASES FOR NEW LOCATIONS: Sunrise, Florida (“Flanigan’s Seafood Bar and Grill”) During the second quarter of our fiscal year 2019, we entered into a Lease Agreement (the “Sunrise Lease Agreement”) with a non-affiliated third party to rent approximately 6,900 square feet of commercial space in Sunrise, Florida where, subject to certain conditions, we anticipate opening a new restaurant location. During the third quarter of our fiscal year 2019, we assigned the Sunrise Lease Agreement to a newly formed limited partnership in which we currently are (i) the sole general partner; and (ii) our wholly owned subsidiary is the sole limited partner. While there can be no assurances that we will be successful in doing so, we intend to sell limited partnership interests to third parties as well as affiliates of the Company in order to raise net proceeds, in an amount to be determined, which proceeds will be used to renovate this potential restaurant location. We anticipate that the new restaurant location’s ownership and operating structure will be substantially similar to that of our other restaurants owned by limited partnerships. Any amounts we advance to the limited partnership will be applied as a credit to limited partnership equity in the limited partnership we may acquire (which equity shall be purchased at the same price and upon the same terms as other equity investors). If we do not acquire equity in the limited partnership for at least $250,000, any excess amounts advanced by us will be reimbursed to us by the limited partnership without interest. Through June 29, 2019, we have advanced $163,000 to the limited partnership. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Jun. 29, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | (6) INCOME TAXES: We account for our income taxes using FASB ASC Topic 740, “ Income Taxes On December 22, 2017 the Tax Cuts and Jobs Act (“the Act”) was signed into law, reducing the corporate income tax rate to 21%. Our accounting for the impact of the Act was completed during the thirteen weeks ended December 31, 2017 when we recorded a decrease of approximately $268,000 to our net deferred tax asset, with a corresponding adjustment to deferred income tax expense. |
DEBT
DEBT | 9 Months Ended |
Jun. 29, 2019 | |
Debt Disclosure [Abstract] | |
DEBT | (7) DEBT: (a) Mortgage on Real Property During the first quarter of our fiscal year 2019, we borrowed the sum of $250,000 from a related third party lender (the “$250,000 Loan”). The proceeds of the $250,000 Loan are being used as working capital. Our repayment obligations under the $250,000 Loan are secured by a first mortgage on our quadraplex located at 1420 N.E. 50th Court, Fort Lauderdale, Florida 33334. The $250,000 Loan bears interest at the fixed rate of 4.00% per annum and is amortizable over an eight (8) year period, with our current monthly payment of principal and interest totaling $3,047. The entire principal balance and all accrued but unpaid interest are due on November 1, 2026. (b) Financed Insurance Premiums During the thirty nine weeks ended June 29, 2019, we financed the premiums on the following three (3) property and general liability insurance policies, totaling approximately $1.65 million, which property and general liability insurance includes coverage for our franchises which are not included in our consolidated financial statements: (i) For the policy year beginning December 30, 2018, our general liability insurance, excluding limited partnerships, is a one (1) year policy with our insurance carriers, including automobile and excess liability coverage. The one (1) year general liability insurance premiums, including automobile and excess liability coverage, total, in the aggregate $620,000, of which $494,000 is financed through an unaffiliated third party lender (the “Third Party Lender”). The finance agreement obligates us to repay the amounts financed together with interest at the rate of 3.85% per annum, over 10 months, with monthly payments of principal and interest, each in the amount of $39,000. The finance agreement is secured by a first priority security interest in all insurance policies, all unearned premium, return premiums, dividend payments and loss payments thereof. (ii) For the policy year beginning December 30, 2018, our general liability insurance for our limited partnerships is a one (1) year policy with our insurance carriers, including excess liability coverage. The one (1) year general liability insurance premiums, including excess liability coverage, total, in the aggregate $521,000, of which $416,000 is financed through the Third Party Lender. The finance agreement obligates us to repay the amounts financed, together with interest at the rate of 3.85% per annum, over 10 months, with monthly payments of principal and interest, each in the amount of $51,000. The finance agreement is secured by a first priority security interest in all insurance policies, all unearned premium, return premiums, dividend payments and loss payments thereof. (iii) For the policy year beginning December 30, 2018, our property insurance is a one (1) year policy. The one (1) year property insurance premium is in the amount of $506,000, of which $385,000 is financed through the Third Party Lender. The finance agreement provides that we are obligated to repay the amounts financed, together with interest at the rate of 3.85% per annum, over 10 months, with monthly payments of principal and interest, each in the amount of approximately $42,000. The finance agreement is secured by a first priority security interest in all insurance policies, all unearned premium, return premiums, dividend payments and loss payments thereof. As of June 29, 2019, the aggregate principal balance owed from the financing of our property and general liability insurance policies is $520,000. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Jun. 29, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | (8) COMMITMENTS AND CONTINGENCIES: Construction Contracts a. 13205 Biscayne Boulevard, North Miami, Florida (Store #20) On June 14, 2017, we entered into an agreement with a third party unaffiliated general contractor to renovate our restaurant located at 13205 Biscayne Boulevard, North Miami, Florida, (Store #20) for a total contract price of $880,000. The renovations include, but are not limited to the construction of a new kitchen and the expansion of the restaurant into our former package liquor store location. During the term of the agreement, we agreed to change orders which had the effect of increasing the total contract price for the renovations to $1,177,000, of which $1,162,000 has been paid. Subsequent to the end of the third quarter of our fiscal year 2019, the unaffiliated general contractor completed its work under the agreement and we paid the balance of $15,000. During our fiscal year 2018, we entered into an agreement with a third party unaffiliated general contractor to renovate and add an outdoor patio area to the front of our restaurant located at 13205 Biscayne Boulevard, North Miami, Florida (Store #20) for a total contract price of $912,000. During the term of the agreement, we agreed to change orders which had the effect of decreasing the total contract price for the renovation to $880,000, of which $875,000 has been paid. Subsequent to the end of the third quarter of our fiscal year 2019, the unaffiliated general contractor completed its work under the agreement and we paid the balance of $5,000. b. 2505 N. University Drive, Hollywood, Florida (Store #19) During our fiscal year 2018 and prior to its being closed in the first quarter of our fiscal year 2019 due to damages caused by fire, we entered into two agreements with a third party unaffiliated general contractor for design and development services for a total contract price of $127,000 (the “$127,000 Contract”) and $174,000 (the “$174,000 Contract”). The $127,000 Contract provided for design and development services for the construction of a new building (the “New Building”) on a parcel of real property which we own and which is adjacent to the real property where our combination package liquor store and restaurant located at 2505 N. University Drive, Hollywood, Florida, (Store #19) operated until it was closed in October 2018 due to damages caused by a fire. The $174,000 Contract provided for design and development services for the renovation of the existing building which housed the combination package liquor store and restaurant until it was closed in October 2018 due to damages caused by a fire. If we complete the construction of the New Building and as a result of the fire, the rebuild of the existing building, (the “Rebuilt Building”), we plan to re-locate our package liquor store located at the property to the New Building and to operate the restaurant located at the property in the Rebuilt Building. During the term of the $127,000 Contract, we agreed to change orders which had the effect of increasing the total contract price of the same to $138,000, and during the second quarter of our fiscal year 2019, we paid the balance of the total contract price of the $127,000 Contract, in the amount of $25,000. During the term of the $174,000 Contract, we also agreed to change orders which had the effect of increasing the total contract price of the same to $187,000, and during the second quarter of our fiscal year 2019, we paid $46,000 as the final payment of the contract price of the $174,000 Contract, (of which a total of $157,000 was paid), which we cancelled during the first quarter of our fiscal year 2019 due to the building being damaged by fire. During the third quarter of our fiscal year 2019 we entered into an agreement with a third party unaffiliated architect for design and development services totaling $77,000 for the re-build of our restaurant located at 2505 N. University Drive, Hollywood, Florida (Store #19) which has been closed since October, 2018 due to damages caused by a fire. Additionally during the third quarter of our fiscal year 2019, we entered into an agreement with a third party unaffiliated general contractor for site work totaling $1,618,000; (i) to connect the real property where this restaurant operated (Store #19) to city sewer and (ii) to construct a new building on the adjacent parcel of real property for the operation of a package liquor store. c. 4 N. Federal Highway, Hallandale Beach, Florida (Store #31) During the first quarter of our fiscal year 2019, we entered into an agreement with a third party unaffiliated design group for design and development services for a contract price of $356,000 (the “$356,000 Contract”), providing for design and development services for the construction of two (2) new buildings on the real property which we own and where our combination package liquor store and restaurant located at 4 N. Federal Highway, Hallandale Beach, Florida, (Store #31) operates. Our plan for the real property was to (i) demolish the building which currently houses our combination package liquor store and restaurant, (ii) build two new buildings, one of which will house our package liquor store and the other of which will house our restaurant; and (iii) enter into a ground lease with an existing retail tenant for a parcel of land which will not be improved by the two buildings. During the second quarter of our fiscal year 2019, we learned that our planned development of Store #31 would cause the loss of too many parking spaces, so we abandoned our development plans and terminated the $356,000 Contract. We paid $130,000 on account of the $356,000 Contract and owe no further amounts under it. d. 14301 W. Sunrise Boulevard, Sunrise, Florida (Store #85) During the third quarter of our fiscal year 2019, we entered into an agreement with a third party unaffiliated design group for design and development services of our new location at 14301 W. Sunrise Boulevard, Sunrise, Florida 33323 (Store #85) for a total contract price of $122,000, of which we paid $33,000 through June 29, 2019. Litigation From time to time, we are a defendant in litigation arising in the ordinary course of our business, including claims resulting from “slip and fall” accidents, dram shop claims, claims under federal and state laws governing access to public accommodations, employment-related claims and claims from guests alleging illness, injury or other food quality, health or operational concerns. To date, none of this litigation, some of which is covered by insurance, has had a material effect on us. |
CASUALTY LOSS
CASUALTY LOSS | 9 Months Ended |
Jun. 29, 2019 | |
Loss Contingency [Abstract] | |
CASUALTY LOSS | (9) CASUALTY LOSS During the first quarter of our fiscal year 2019, our combination package liquor store and restaurant located at 2505 N. University Drive, Hollywood, Florida (Store #19) was damaged by a fire and was forced to close. Due to the damage caused by the fire, we determined that Store #19 should be demolished and rebuilt and as a result, the package liquor store and restaurant will be closed for at least our fiscal year 2019. We have insurance coverage of $1,975,000, in the aggregate, which our insurance carrier agreed to pay. We sustained a loss of $1,373,000 on our building and business personal property, against which we received insurance proceeds of $1,200,000 resulting in a loss of $173,000. We had a gain of $775,000 on our business interruption coverage, which when netted against our loss of $173,000 on our building and business personal property produced a gain of $602,000. During the first quarter of our fiscal year 2019, we received an advance of $600,000 against our insurance recovery and during the second quarter of our fiscal year 2019, we received the balance of our insurance recovery, less only $132,000 as depreciation against our business personal property until such time as it is replaced. |
FLANIGAN'S FISH COMPANY, LLC
FLANIGAN'S FISH COMPANY, LLC | 9 Months Ended |
Jun. 29, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
FLANIGAN'S FISH COMPANY, LLC | (10) FLANIGAN’S FISH COMPANY, LLC: During the fourth quarter of our fiscal year 2018, we (as a 51% member control person) and a third party unaffiliated with us, experienced in the business of importing fresh fish into the United States (as a 49% member), formed Flanigan’s Fish Company, LLC, a Florida limited liability company (“FFC”). The current purpose of FFC is to acquire and sell only to our restaurants imported fresh fish at competitive prices to what we are currently paying outside fresh fish purveyors. Commencing with the third quarter of our fiscal year 2019, FFC began to supply fish to our restaurants and as of June 29, 2019, FFC supplies certain of the fish to nine (9) of our restaurants. Since we hold the controlling interest of FFC, the balance sheet and operating results of this entity are consolidated into the accompanying financial statements of the Company. All intercompany transactions are eliminated in consolidation. Sales and purchases of fish are recognized in restaurant food sales and restaurant and lounges (cost of merchandise sold), respectively, in the consolidated statements of income at the time of sale to the restaurant. In addition, the 49% of FFC owned by the unrelated third party is recognized as noncontrolling interest in our consolidated financial statements. |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | 9 Months Ended |
Jun. 29, 2019 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENTS | (11) 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 the thirteen weeks and thirty nine weeks ended June 29, 2019 and June 30, 2018, 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 expenses 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. (in thousands) Thirteen Weeks June 29, 2019 Thirteen Weeks June 30, 2018 Operating Revenues: Restaurants $ 24,099 $ 23,322 Package stores 4,752 4,435 Other revenues 661 679 Total operating revenues $ 29,512 $ 28,436 Income from Operations Reconciled to Income After Income Taxes Restaurants $ 2,578 $ 2,767 Package stores 300 241 2,878 3,008 Corporate expenses, net of other revenues (934 ) (914 ) Income from Operations 1,944 2,094 Interest expense (175 ) (193 ) Interest and other income 16 17 Insurance recovery, net of casualty loss — — Income Before Income Taxes $ 1,785 $ 1,918 Provision for Income Taxes (309 ) (303 ) Net Income 1,476 1,615 Net Income Attributable to Noncontrolling Interests (508 ) (572 ) Net Income Attributable to Flanigan’s Enterprises, Inc Stockholders $ 968 $ 1,043 Depreciation and Amortization: Restaurants $ 611 $ 548 Package stores 69 69 680 617 Corporate 101 92 Total Depreciation and Amortization $ 781 $ 709 Capital Expenditures: Restaurants $ 571 $ 1,022 Package stores 293 48 864 1,070 Corporate 181 301 Total Capital Expenditures $ 1,045 $ 1,371 Thirty Nine Weeks June 29, 2019 Thirty Nine Weeks June 30, 2018 Operating Revenues: Restaurants $ 70,214 $ 69,963 Package stores 14,979 14,314 Other revenues 1,949 2,008 Total operating revenues $ 87,142 $ 86,285 Income from Operations Reconciled to Income After Restaurants $ 6,400 $ 7,996 Package stores 750 867 7,150 8,863 Corporate expenses, net of other revenue (2,661 ) (2,670 ) Income from Operations 4,489 6,193 Interest expense (541 ) (565 ) Interest and other income 42 44 Insurance recovery, net of casualty loss 602 — Income Before Income Taxes $ 4,592 $ 5,672 Provision for Income Taxes (653 ) (1,216 ) Net Income 3,939 4,456 Net Income Attributable to Noncontrolling Interests (1,207 ) (1,395 ) Net Income Attributable to Flanigan’s Enterprises, Inc. Stockholders $ 2,732 $ 3,061 Depreciation and Amortization: Restaurants $ 1,746 $ 1,625 Package stores 204 204 1,950 1,829 Corporate 295 252 Total Depreciation and Amortization $ 2,245 $ 2,081 Capital Expenditures: Restaurants $ 2,922 $ 2,535 Package stores 458 171 3,380 2,706 Corporate 1,864 513 Total Capital Expenditures $ 5,244 $ 3,219 June 29, September 29, 2019 2018 Identifiable Assets: Restaurants $ 31,469 $ 30,963 Package store 10,417 10,127 41,886 41,090 Corporate 26,091 26,175 Consolidated Totals $ 67,977 $ 67,265 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Jun. 29, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | (12) SUBSEQUENT EVENTS: Subsequent events have been evaluated through the date these condensed consolidated financial statements were issued and except as disclosed herein, no events required disclosure. |
BUSINESS SEGMENTS (Tables)
BUSINESS SEGMENTS (Tables) | 9 Months Ended |
Jun. 29, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting | (in thousands) Thirteen Weeks June 29, 2019 Thirteen Weeks June 30, 2018 Operating Revenues: Restaurants $ 24,099 $ 23,322 Package stores 4,752 4,435 Other revenues 661 679 Total operating revenues $ 29,512 $ 28,436 Income from Operations Reconciled to Income After Income Taxes Restaurants $ 2,578 $ 2,767 Package stores 300 241 2,878 3,008 Corporate expenses, net of other revenues (934 ) (914 ) Income from Operations 1,944 2,094 Interest expense (175 ) (193 ) Interest and other income 16 17 Insurance recovery, net of casualty loss — — Income Before Income Taxes $ 1,785 $ 1,918 Provision for Income Taxes (309 ) (303 ) Net Income 1,476 1,615 Net Income Attributable to Noncontrolling Interests (508 ) (572 ) Net Income Attributable to Flanigan’s Enterprises, Inc Stockholders $ 968 $ 1,043 Depreciation and Amortization: Restaurants $ 611 $ 548 Package stores 69 69 680 617 Corporate 101 92 Total Depreciation and Amortization $ 781 $ 709 Capital Expenditures: Restaurants $ 571 $ 1,022 Package stores 293 48 864 1,070 Corporate 181 301 Total Capital Expenditures $ 1,045 $ 1,371 Thirty Nine Weeks June 29, 2019 Thirty Nine Weeks June 30, 2018 Operating Revenues: Restaurants $ 70,214 $ 69,963 Package stores 14,979 14,314 Other revenues 1,949 2,008 Total operating revenues $ 87,142 $ 86,285 Income from Operations Reconciled to Income After Restaurants $ 6,400 $ 7,996 Package stores 750 867 7,150 8,863 Corporate expenses, net of other revenue (2,661 ) (2,670 ) Income from Operations 4,489 6,193 Interest expense (541 ) (565 ) Interest and other income 42 44 Insurance recovery, net of casualty loss 602 — Income Before Income Taxes $ 4,592 $ 5,672 Provision for Income Taxes (653 ) (1,216 ) Net Income 3,939 4,456 Net Income Attributable to Noncontrolling Interests (1,207 ) (1,395 ) Net Income Attributable to Flanigan’s Enterprises, Inc. Stockholders $ 2,732 $ 3,061 Depreciation and Amortization: Restaurants $ 1,746 $ 1,625 Package stores 204 204 1,950 1,829 Corporate 295 252 Total Depreciation and Amortization $ 2,245 $ 2,081 Capital Expenditures: Restaurants $ 2,922 $ 2,535 Package stores 458 171 3,380 2,706 Corporate 1,864 513 Total Capital Expenditures $ 5,244 $ 3,219 June 29, September 29, 2019 2018 Identifiable Assets: Restaurants $ 31,469 $ 30,963 Package store 10,417 10,127 41,886 41,090 Corporate 26,091 26,175 Consolidated Totals $ 67,977 $ 67,265 |
RECENTLY ADOPTED AND RECENTLY_2
RECENTLY ADOPTED AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS (Narrative) (Details) | Jun. 29, 2019USD ($) |
Minimum [Member] | |
Right-of-use asset | $ 25,000,000 |
Lease liability | 25,000,000 |
Maximum [Member] | |
Right-of-use asset | 30,000,000 |
Lease liability | $ 30,000,000 |
INVESTMENT IN REAL PROPERTY; _2
INVESTMENT IN REAL PROPERTY; OPTION TO LEASE AGREEMENT (Details) | 3 Months Ended |
Jun. 29, 2019USD ($) | |
Investment in real property option to lease agreement [Abstract] | |
Purchase price of property | $ 1,300,000 |
EXECUTION OF LEASE FOR NEW LO_2
EXECUTION OF LEASE FOR NEW LOCATION (Details) - Sunrise Lease Agreement [Member] | Jun. 29, 2019USD ($)ft² |
Lessee, Lease, Description [Line Items] | |
Area of lease | ft² | 6,900 |
Aggregate amounts advanced to limited partnership | $ | $ 163,000 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 1 Months Ended | 3 Months Ended |
Dec. 22, 2017 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Corporate income tax rate | 21.00% | |
Decrease in net deferred tax asset | $ 268,000 |
DEBT (Details)
DEBT (Details) - USD ($) | 3 Months Ended | 9 Months Ended |
Dec. 29, 2018 | Jun. 29, 2019 | |
Debt Instrument [Line Items] | ||
Principal amount outstanding | $ 520,000 | |
Mortgage on Real Property [Member] | Related Third Party [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate (per annum) | 4.00% | |
Term of financing agreement | 8 years | |
Monthly payment of principal and interest | $ 3,047 | |
Payment frequency | Monthly | |
Maturity date | Nov. 1, 2026 | |
Proceeds from related party debt | $ 250,000 | |
Financed Insurance Premiums [Member] | General Liability Insurance Premium [Member] | ||
Debt Instrument [Line Items] | ||
Term of insurance premium | 1 year | |
Amount of premium payable | $ 620,000 | |
Amount of premium payable financed from third party lender | $ 494,000 | |
Interest rate (per annum) | 3.85% | |
Term of financing agreement | 10 months | |
Monthly payment of principal and interest | $ 39,000 | |
Financed Insurance Premiums [Member] | General Liability Insurance for Limited Partnership Premium [Member] | ||
Debt Instrument [Line Items] | ||
Term of insurance premium | 1 year | |
Amount of premium payable | $ 521,000 | |
Amount of premium payable financed from third party lender | $ 416,000 | |
Interest rate (per annum) | 3.85% | |
Term of financing agreement | 10 months | |
Monthly payment of principal and interest | $ 51,000 | |
Financed Insurance Premiums [Member] | Property Insurance Premium [Member] | ||
Debt Instrument [Line Items] | ||
Term of insurance premium | 1 year | |
Amount of premium payable | $ 506,000 | |
Amount of premium payable financed from third party lender | $ 385,000 | |
Interest rate (per annum) | 3.85% | |
Term of financing agreement | 10 months | |
Monthly payment of principal and interest | $ 42,000 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) | 3 Months Ended | |||
Jun. 29, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 14, 2017 | |
Third Party Agreement - North Miami, Florida Renovation [Member] | ||||
Other Commitments [Line Items] | ||||
Total contract price | $ 1,177,000 | $ 880,000 | ||
Amount for renovation of construction in process | 1,162,000 | |||
Unpaid balance of contract price | 15,000 | |||
Third Party Agreement - North Miami, Florida Patio Renovation [Member] | ||||
Other Commitments [Line Items] | ||||
Total contract price | 880,000 | $ 912,000 | ||
Amount for renovation of construction in process | 875,000 | |||
Unpaid balance of contract price | 5,000 | |||
New Building [Member] | ||||
Other Commitments [Line Items] | ||||
Total contract price | 138,000 | 127,000 | ||
Amount for renovation of construction in process | 138,000 | |||
Existing Building [Member] | ||||
Other Commitments [Line Items] | ||||
Total contract price | 187,000 | $ 174,000 | ||
Amount for renovation of construction in process | 157,000 | |||
Third Party Agreement - Connection of Liquor Store and Restaurant [Member] | ||||
Other Commitments [Line Items] | ||||
Total contract price | 1,618,000 | |||
Design and Development Services - 2505 N. University Drive, Hollywood, Florida [Member] | ||||
Other Commitments [Line Items] | ||||
Total contract price | 77,000 | |||
Two New Buildings [Member] | ||||
Other Commitments [Line Items] | ||||
Total contract price | $ 356,000 | |||
Amount for renovation of construction in process | $ 130,000 | |||
Contract termination date | 2019-02 | |||
Design and Development Services - 14301 W. Sunrise Boulevard, Sunrise, Florida [Member] | ||||
Other Commitments [Line Items] | ||||
Total contract price | $ 122,000 | |||
Amount for renovation of construction in process | $ 33,000 |
CASUALTY LOSS (Details)
CASUALTY LOSS (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jun. 29, 2019 | Dec. 29, 2018 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Loss Contingencies [Line Items] | |||||
Insurance recovery, net of casualty loss | $ 602,000 | ||||
Insurance Claims [Member] | 2505 N. University Drive, Hollywood, Florida Property [Member] | |||||
Loss Contingencies [Line Items] | |||||
Aggregate insurance coverage agreed to be paid by insurance company | $ 1,975,000 | ||||
Loss sustained on building and business personal property | 1,373,000 | ||||
Insurance proceeds to be received on building and business personal property | 1,200,000 | ||||
Resulting loss on damage to building and personal property | 173,000 | ||||
Gain on business interruption insurance coverage | 775,000 | ||||
Insurance recovery, net of casualty loss | 602,000 | ||||
Insurance proceeds advanced during the period | 600,000 | ||||
Depreciation recognized against business personal property until such time as it is replaced | $ 132,000 |
FLANIGAN'S FISH COMPANY, LLC (D
FLANIGAN'S FISH COMPANY, LLC (Details) - Flanigan's Fish Company, LLC [Member] | Sep. 29, 2018 |
Schedule of Equity Method Investments [Line Items] | |
Percentage of own in florida limited liability company | 51.00% |
Non-controlling interest percentage held by third party | 49.00% |
BUSINESS SEGMENTS (Details)
BUSINESS SEGMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Jun. 29, 2019 | Jun. 30, 2018 | Sep. 29, 2018 | |
Operating Revenues: | |||||||||
Operating revenues | $ 29,512 | $ 28,436 | $ 87,142 | $ 86,285 | |||||
Income from Operations Reconciled to Income After Income Taxes and Net Income Attributable to Noncontrolling Interests | |||||||||
Income before corporate expenses | 2,878 | 3,008 | 7,150 | 8,863 | |||||
Corporate expenses, net of other revenues | (934) | (914) | (2,661) | (2,670) | |||||
Income from Operations | 1,944 | 2,094 | 4,489 | 6,193 | |||||
Interest expense | (175) | (193) | (541) | (565) | |||||
Interest and other income | 16 | 17 | 42 | 44 | |||||
Insurance recovery, net of casualty loss | 602 | ||||||||
Income Before Provision for Income Taxes | 1,785 | 1,918 | 4,592 | 5,672 | |||||
Provision for Income Taxes | (309) | (303) | (653) | (1,216) | |||||
Net Income | 1,476 | $ 1,465 | $ 998 | 1,615 | $ 1,885 | $ 956 | 3,939 | 4,456 | |
Net Income Attributable to Noncontrolling Interests | (508) | (572) | (1,207) | (1,395) | |||||
Net Income Attributable to Flanigan's Enterprises, Inc. stockholders | 968 | 1,043 | 2,732 | 3,061 | |||||
Depreciation and Amortization: | |||||||||
Depreciation and amortization | 781 | 709 | 2,245 | 2,081 | |||||
Capital Expenditures: | |||||||||
Capital expenditures | 1,045 | 1,371 | 5,244 | 3,219 | |||||
Identifiable Assets: | |||||||||
Assets | 67,977 | 67,977 | $ 67,265 | ||||||
Restaurants [Member] | |||||||||
Operating Revenues: | |||||||||
Operating revenues | 24,099 | 23,322 | 70,214 | 69,963 | |||||
Income from Operations Reconciled to Income After Income Taxes and Net Income Attributable to Noncontrolling Interests | |||||||||
Income before corporate expenses | 2,578 | 2,767 | 6,400 | 7,996 | |||||
Depreciation and Amortization: | |||||||||
Depreciation and amortization | 611 | 548 | 1,746 | 1,625 | |||||
Capital Expenditures: | |||||||||
Capital expenditures | 571 | 1,022 | 2,922 | 2,535 | |||||
Identifiable Assets: | |||||||||
Assets | 31,469 | 31,469 | 30,963 | ||||||
Package stores [Member] | |||||||||
Operating Revenues: | |||||||||
Operating revenues | 4,752 | 4,435 | 14,979 | 14,314 | |||||
Income from Operations Reconciled to Income After Income Taxes and Net Income Attributable to Noncontrolling Interests | |||||||||
Income before corporate expenses | 300 | 241 | 750 | 867 | |||||
Depreciation and Amortization: | |||||||||
Depreciation and amortization | 69 | 69 | 204 | 204 | |||||
Capital Expenditures: | |||||||||
Capital expenditures | 293 | 48 | 458 | 171 | |||||
Identifiable Assets: | |||||||||
Assets | 10,417 | 10,417 | 10,127 | ||||||
Other [Member] | |||||||||
Operating Revenues: | |||||||||
Operating revenues | 661 | 679 | 1,949 | 2,008 | |||||
Corporate [Member] | |||||||||
Depreciation and Amortization: | |||||||||
Depreciation and amortization | 101 | 92 | 295 | 252 | |||||
Capital Expenditures: | |||||||||
Capital expenditures | 181 | 301 | 1,864 | 513 | |||||
Identifiable Assets: | |||||||||
Assets | 26,091 | 26,091 | 26,175 | ||||||
Total segments [Member] | |||||||||
Depreciation and Amortization: | |||||||||
Depreciation and amortization | 680 | 617 | 1,950 | 1,829 | |||||
Capital Expenditures: | |||||||||
Capital expenditures | 864 | $ 1,070 | 3,380 | $ 2,706 | |||||
Identifiable Assets: | |||||||||
Assets | $ 41,886 | $ 41,886 | $ 41,090 |