Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Jun. 30, 2019 | Aug. 09, 2019 | |
Document Information [Line Items] | ||
Entity Registrant Name | NATHANS FAMOUS INC | |
Entity Central Index Key | 0000069733 | |
Trading Symbol | nath | |
Current Fiscal Year End Date | --03-29 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Common Stock, Shares Outstanding (in shares) | 4,226,809 | |
Entity Shell Company | false | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Title of 12(b) Security | Common Stock |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Jun. 30, 2019 | Mar. 31, 2019 |
CURRENT ASSETS | ||
Cash and cash equivalents (Note F) | $ 73,903,000 | $ 75,446,000 |
Accounts and other receivables, net (Note H) | 14,974,000 | 10,173,000 |
Inventories | 748,000 | 535,000 |
Prepaid expenses and other current assets (Note I) | 773,000 | 1,007,000 |
Total current assets | 90,398,000 | 87,161,000 |
Property and equipment, net of accumulated depreciation of $8,916 and $8,611, respectively | 4,684,000 | 4,889,000 |
Operating lease assets | 7,655,000 | |
Goodwill | 95,000 | 95,000 |
Intangible asset | 1,353,000 | 1,353,000 |
Deferred income taxes | 351,000 | 343,000 |
Other assets | 465,000 | 465,000 |
Total assets | 105,001,000 | 94,306,000 |
CURRENT LIABILITIES | ||
Current portion of operating lease liabilities | 1,065,000 | |
Accounts payable | 5,806,000 | 5,222,000 |
Accrued expenses and other current liabilities (Note J) | 6,677,000 | 9,384,000 |
Contract with Customer, Liability, Current | 306,000 | 318,000 |
Total current liabilities | 13,854,000 | 14,924,000 |
Long-term debt, net of unamortized debt issuance costs of $4,378 and $4,551, respectively (Note O) | 145,622,000 | 145,449,000 |
Long-term operating lease liabilities | 7,308,000 | |
Other liabilities | 745,000 | 1,390,000 |
Deferred franchise fees | 2,620,000 | 2,687,000 |
Total liabilities | 170,149,000 | 164,450,000 |
COMMITMENTS AND CONTINGENCIES (Note Q) | ||
STOCKHOLDERS’ (DEFICIT) | ||
Common stock, $.01 par value; 30,000,000 shares authorized; 9,368,572 and 9,336,338 shares issued; and 4,226,809 and 4,194,575 shares outstanding at June 30, 2019 and March 31, 2019, respectively | 94,000 | 93,000 |
Additional paid-in capital | 62,050,000 | 60,945,000 |
(Accumulated deficit) | (48,989,000) | (52,879,000) |
Stockholders’ equity before treasury stock | 13,155,000 | 8,159,000 |
Treasury stock, at cost, 5,141,763 shares at June 30, 2019 and March 31, 2019 | (78,303,000) | (78,303,000) |
Total stockholders’ deficit | (65,148,000) | (70,144,000) |
Total liabilities and stockholders’ deficit | $ 105,001,000 | $ 94,306,000 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 |
Property and equipment accumulated depreciation | $ 8,916 | $ 8,611 |
Long-term debt, unamortized debt costs | $ 4,378 | $ 5,242 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 30,000,000 | 30,000,000 |
Common stock, shares issued (in shares) | 9,368,572 | 9,336,338 |
Common stock, shares outstanding (in shares) | 4,226,809 | 4,194,575 |
Treasury stock, shares (in shares) | 5,141,763 | 5,141,763 |
Consolidated Statements of Earn
Consolidated Statements of Earnings (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2019 | Jun. 24, 2018 | |
REVENUES | ||
Revenues | $ 30,518 | $ 30,168 |
COSTS AND EXPENSES | ||
Cost of sales | 15,422 | 15,446 |
Restaurant operating expenses | 919 | 910 |
Depreciation and amortization | 310 | 345 |
General and administrative expenses | 3,937 | 3,885 |
Advertising fund expense | 482 | 495 |
Total costs and expenses | 21,070 | 21,081 |
Income from operations | 9,448 | 9,087 |
Interest expense | (2,650) | (2,650) |
Interest income | 366 | 61 |
Other income, net | 21 | 21 |
Income before provision for income taxes | 7,185 | 6,519 |
Provision for income taxes | 1,816 | 1,724 |
Net income | $ 5,369 | $ 4,795 |
PER SHARE INFORMATION | ||
Basic (in dollars per share) | $ 1.28 | $ 1.15 |
Diluted (in dollars per share) | 1.28 | 1.13 |
Dividends declared per share (in dollars per share) | $ 0.35 | $ 0.25 |
Weighted average shares used in computing income per share: | ||
Basic (in shares) | 4,206 | 4,185 |
Diluted (in shares) | 4,206 | 4,226 |
Product [Member] | ||
REVENUES | ||
Revenues | $ 20,237 | $ 20,471 |
License [Member] | ||
REVENUES | ||
Revenues | 8,722 | 8,098 |
Franchise Fees and Royalties [Member] | ||
REVENUES | ||
Revenues | 1,077 | 1,104 |
Advertising Fund Revenue [Member] | ||
REVENUES | ||
Revenues | $ 482 | $ 495 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' (Deficit) (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Total |
Balance (in shares) at Mar. 25, 2018 | 9,311,922 | 5,127,373 | |||
Balance at Mar. 25, 2018 | $ 93 | $ 60,823 | $ (68,181) | $ (77,303) | $ (84,568) |
Shares issued in connection with share-based compensation plans (in shares) | 2,990 | ||||
Shares issued in connection with share-based compensation plans | |||||
Dividends on common stock | (1,047) | (1,047) | |||
Share-based compensation | 81 | 81 | |||
Net income | 4,795 | 4,795 | |||
Cumulative effect of the adoption of Topic 606 at Mar. 25, 2018 | (2,004) | (2,004) | |||
Withholding tax on net share settlement of share-based compensation plans | (174) | (174) | |||
Balance (in shares) at Jun. 24, 2018 | 9,314,912 | 5,127,373 | |||
Balance at Jun. 24, 2018 | $ 93 | 60,730 | (66,437) | $ (77,303) | $ (82,917) |
Balance (in shares) at Mar. 31, 2019 | 9,336,338 | 5,141,763 | 4,194,575 | ||
Balance at Mar. 31, 2019 | $ 93 | 60,945 | (52,879) | $ (78,303) | $ (70,144) |
Shares issued in connection with share-based compensation plans (in shares) | 32,234 | ||||
Shares issued in connection with share-based compensation plans | $ 1 | 1,077 | 1,078 | ||
Dividends on common stock | (1,479) | (1,479) | |||
Share-based compensation | 28 | 28 | |||
Net income | 5,369 | $ 5,369 | |||
Balance (in shares) at Jun. 30, 2019 | 9,368,572 | 5,141,763 | 4,226,809 | ||
Balance at Jun. 30, 2019 | $ 94 | $ 62,050 | $ (48,989) | $ (78,303) | $ (65,148) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2019 | Jun. 24, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 5,369 | $ 4,795 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 310 | 345 |
Amortization of debt issuance costs | 173 | 173 |
Share-based compensation expense | 28 | 81 |
Income tax benefit on stock option exercises | 228 | 63 |
Provision for doubtful accounts | 27 | 14 |
Deferred income taxes | (8) | (21) |
Changes in operating assets and liabilities: | ||
Accounts and other receivables, net | (4,828) | (5,131) |
Inventories | (213) | (223) |
Prepaid expenses and other current assets | 234 | 1,985 |
Other assets | (10) | (52) |
Accounts payable, accrued expenses and other current liabilities | (2,351) | (4,874) |
Deferred franchise fees | (79) | 36 |
Other liabilities | 84 | (3) |
Net cash used in operating activities | (1,036) | (2,812) |
Cash flows from investing activities: | ||
Purchase of property and equipment | (106) | (138) |
Net cash used in investing activities | (106) | (138) |
Cash flows from financing activities: | ||
Dividends paid to stockholders | (1,479) | (1,197) |
Proceeds from the exercise of stock options | 1,078 | |
Payments of withholding tax on net share settlement of share-based compensation plans | (174) | |
Net cash used in financing activities | (401) | (1,371) |
Net decrease in cash and cash equivalents | (1,543) | (4,321) |
Cash and cash equivalents, beginning of period | 75,446 | 57,339 |
Cash and cash equivalents, end of period | 73,903 | 53,018 |
Cash paid during the period for: | ||
Interest | 4,969 | 4,969 |
Income taxes | $ 60 | $ 60 |
Noncash financing activity: | ||
Dividends declared per share (in dollars per share) | $ 0.35 | $ 0.25 |
Note A - Basis of Presentation
Note A - Basis of Presentation | 3 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | NOTE A - BASIS OF PRESENTATION The accompanying consolidated financial statements of Nathan's Famous, Inc. and subsidiaries (collectively “Nathan’s,” the “Company,” “we,” “us” or “our”) as of and for the thirteen June 30, 2019 June 24, 2018 not Certain information and footnote disclosures normally included in financial statements in accordance with accounting principles generally accepted in the United States of America have been omitted pursuant to the requirements of the Securities and Exchange Commission. Management believes that the disclosures included in the accompanying consolidated interim financial statements and footnotes are adequate to make the information not 10 March 31, 2019. A summary of the Company’s significant accounting policies is identified in Note B of the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10 March 31, 2019. |
Note B - Adoption of New Accoun
Note B - Adoption of New Accounting Standards | 3 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | NOTE B – ADOPTION OF NEW ACCOUNTING STANDARDS Leases In February 2016, 842, first 2020 April 1, 2019 not The new standard provides for a number of practical expedients upon adoption. The Company elected the package of practical expedients, which permits the Company not not not As a result of adopting this new guidance on the first 2020, $7,804,000 $8,533,000, first 2020. The effects of the changes made to the Company's consolidated balance sheet as of April 1, 2019 Balance at March 31, 2019 Adjustments due to adoption of the new lease guidance Reclassifications Balance at April 1, 2019 Other Assets Operating lease assets - 7,804 - 7,804 Other assets 465 - 31 496 Current Liabilities Current portion of operating lease liabilities - 1,162 - 1,162 L ong Term L iabilities Long-term operating lease liabilities - 7,371 - 7,371 Other liabilities 1,390 (729 ) 31 692 The adoption of the new guidance is non-cash in nature and had no See Note P |
Note C - New Accounting Standar
Note C - New Accounting Standards Not Yet Adopted | 3 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | NOTE C – NEW ACCOUNTING STANDARDS NOT In June 2016, December 15, 2019. first June 2020) March 28, 2021. In January 2017, second not December 15, 2019. first June 2020) March 28, 2021. not The Company does not not |
Note D - Revenues
Note D - Revenues | 3 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | NOTE D – REVENUES The Company’s disaggregated revenues for the thirteen June 30, 2019 June 24, 2018 Thirteen weeks ended June 30, 2019 June 24, 2018 Branded Products $ 16,113 $ 16,445 Company-operated restaurants 4,124 4,026 Total sales 20,237 20,471 License royalties 8,722 8,098 Royalties 980 997 Franchise fees 97 107 Total franchise fees and royalties 1,077 1,104 Advertising fund revenue 482 495 Total revenues $ 30,518 $ 30,168 The following table disaggregates revenues by primary geographical market (in thousands): Thirteen weeks ended June 30, 2019 June 24, 2018 United States $ 29,387 $ 28,856 International 1,131 1,312 Total revenues $ 30,518 $ 30,168 Contract balances The following table provides information about contract liabilities (Deferred franchise fees) from contracts with customers (in thousands): June 30, 2019 March 31, 2019 Deferred franchise fees (a) $ 2,926 $ 3,005 (a) Deferred franchise fees of $306 $2,620 June 30, 2019 $318 $2,687 March 31, 2019 Significant changes in Deferred franchise fees are as follows (in thousands): Thirteen weeks ended June 30, 2019 June 24, 2018 Deferred franchise fees at beginning of period $ 3,005 $ 3,139 (a) Revenue recognized during the period (97 ) (107 ) New deferrals due to cash received and other 18 170 Deferred franchise fees at end of period $ 2,926 $ 3,202 (a) Includes the cumulative effect of adopting Topic 606 $2,735. Anticipated Future Recognition of Deferred Franchise Fees The following table reflects the estimated franchise fees to be recognized in the future related to performance obligations that are unsatisfied at the end of the period (in thousands): Estimate for fiscal year 2020 (a) $ 230 2021 299 2022 288 2023 252 2024 235 Thereafter 1,622 Total $ 2,926 (a) Represents franchise fees expected to be recognized for the remainder of the 2020 one not $97 thirteen June 30, 2019. We have applied the optional exemption, as provided for under Topic 606, not |
Note E - Income Per Share
Note E - Income Per Share | 3 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | NOTE E – INCOME PER SHARE Basic income per common share is calculated by dividing income by the weighted-average number of common shares outstanding and excludes any dilutive effect of stock options. Diluted income per common share gives effect to all potentially dilutive common shares that were outstanding during the period. Dilutive common shares used in the computation of diluted income per common share result from the assumed exercise of stock options and warrants, as determined using the treasury stock method. The following chart provides a reconciliation of information used in calculating the per-share amounts for the thirteen June 30, 2019 June 24, 2018, Thirteen weeks Net Income Net Income Number of Shares Per Share 201 9 2018 201 9 2018 201 9 2018 (in thousands) (in thousands) Basic EPS Basic calculation $ 5,369 $ 4,795 4,206 4,185 $ 1.28 $ 1.15 Effect of dilutive employee stock options - - - 41 - (0.02 ) Diluted EPS Diluted calculation $ 5,369 $ 4,795 4,206 4,226 $ 1.28 $ 1.13 Options to purchase 10,000 thirteen June 30, 2019 not |
Note F - Cash and Cash Equivale
Note F - Cash and Cash Equivalents | 3 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Cash and Cash Equivalents Disclosure [Text Block] | NOTE F – CASH AND CASH EQUIVALENTS The Company considers all highly liquid instruments purchased with an original maturity of three June 30, 2019 March 31, 2019 $20,000,000. |
Note G - Fair Value Measurement
Note G - Fair Value Measurements | 3 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | NOTE G – FAIR VALUE MEASUREMENTS Nathan’s follows a three three ● Level 1 ● Level 2 ● Level 3 The face value and fair value of long-term debt as of June 30, 2019 March 31, 2019 June 30, 2019 March 31, 2019 Face value Fair value Face Value Fair value Long-term debt $ 150,000 $ 147,750 $ 150,000 $ 145,688 The Company estimates the fair value of its long-term debt based upon review of observable pricing in secondary markets as of the last trading day of the fiscal period. Accordingly, the Company classifies its long-term debt as Level 2. The carrying amounts of cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to the short-term maturity of the instruments. Certain non-financial assets and liabilities are measured at fair value on a non-recurring basis; that is, the assets and liabilities are not June 30, 2019, no |
Note H - Accounts and Other Rec
Note H - Accounts and Other Receivables, Net | 3 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | NOTE H – ACCOUNTS AND OTHER RECEIVABLES, NET Accounts and other receivables, net, consist of the following (in thousands): June 30 , March 31, 201 9 2019 Branded product sales $ 9,222 $ 7,432 Franchise and license royalties 4,785 2,661 Other 1,579 665 15,586 10,758 Less: allowance for doubtful accounts 612 585 Accounts and other receivables, net $ 14,974 $ 10,173 Accounts receivable are due within 30 not not The Company individually reviews each past due account and determines its allowance for doubtful accounts by considering a number of factors, including the length of time accounts receivable are past due, the Company’s previous loss history, the customer’s current and expected future ability to pay its obligation to the Company, the condition of the general economy and the industry as a whole. Based on management’s assessment, the Company provides for estimated uncollectible amounts through a charge to earnings. After the Company has used reasonable collection efforts, it writes off accounts receivable through a charge to the allowance for doubtful accounts. Changes in the Company’s allowance for doubtful accounts for the thirteen June 30, 2019 March 31, 2019 June 30 , 20 1 9 March 31, 2019 Beginning balance $ 585 $ 468 Reclassification to conform with Topic 606 - 77 Bad debt expense 27 100 Accounts written off - (60 ) Ending balance $ 612 $ 585 |
Note I - Prepaid Expenses and O
Note I - Prepaid Expenses and Other Current Assets | 3 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Other Current Assets [Text Block] | NOTE I – PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets consist of the following (in thousands): June 30 , March 31, 201 9 2019 Income taxes $ - $ 106 Insurance 210 244 Other 563 657 Total prepaid expenses and other current assets $ 773 $ 1,007 |
Note J - Accrued Expenses, Othe
Note J - Accrued Expenses, Other Current Liabilities and Other Liabilities | 3 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block] | NOTE J – ACCRUED EXPENSES, OTHER CURRENT LIABILITIES AND OTHER LIABILITIES Accrued expenses and other current liabilities consist of the following (in thousands): June 30 , March 31, 201 9 2019 Payroll and other benefits $ 1,452 $ 3,150 Accrued rebates 809 770 Rent and occupancy costs 176 113 Deferred revenue 484 807 Construction costs 58 58 Interest 1,620 4,111 Professional fees 128 146 Sales, use and other taxes 76 27 Corporate income taxes 1,645 - Other 229 202 Total accrued expenses and other current liabilities $ 6,677 $ 9,384 Other liabilities consist of the following (in thousands): June 30 , March 31, 201 9 2019 Reserve for uncertain tax positions $ 509 $ 496 Deferred rental liability - 670 Other 236 224 Total other liabilities $ 745 $ 1,390 |
Note K - Income Taxes
Note K - Income Taxes | 3 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | NOTE K – INCOME TAXES The income tax provisions for the thirteen June 30, 2019 June 24, 2018 25.3% 26.4%, Nathan’s effective tax rates for the thirteen June 30, 2019 June 24, 2018 3.2% 1.0%, thirteen June 30, 2019 June 24, 2018, $228,000 $63,000, 28.5% 2020 27.4% 2019 The amount of unrecognized tax benefits at June 30, 2019 $269,000 June 30, 2019, $257,000 |
Note L - Segment Information
Note L - Segment Information | 3 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | NOTE L – SEGMENT INFORMATION Nathan’s considers itself to be a brand marketer of the Nathan’s Famous signature products to the foodservice industry pursuant to its various business structures. Nathan’s sells its products directly to consumers through its restaurant operations segment consisting of Company-operated and franchised restaurants, to distributors that resell our products to the foodservice industry through the Branded Product Program (“BPP”) and by third not Branded Product Program Product licensing Restaurant operations Revenues from operating segments are from transactions with unaffiliated third not Income from operations attributable to Corporate consists principally of administrative expenses not Interest expense, interest income, and other income, net are managed centrally at the corporate level, and, accordingly, such items are not Operating segment information is as follows (in thousands): Thirteen weeks ended June 30 , 201 9 June 24, 2018 Revenues Branded Product Program $ 16,113 $ 16,445 Product licensing 8,722 8,098 Restaurant operations 5,201 5,130 Corporate (1) 482 495 Total revenues $ 30,518 $ 30,168 Income from operations Branded Product Program $ 2,203 $ 2,531 Product licensing 8,676 8,053 Restaurant operations 750 750 Corporate (2,181 ) (2,247 ) Income from operations $ 9,448 $ 9,087 Interest expense (2,650 ) (2,650 ) Interest income 366 61 Other income, net 21 21 Income before provision for income taxes $ 7,185 $ 6,519 ( 1 Represents advertising fund revenue |
Note M - Share-based Compensati
Note M - Share-based Compensation | 3 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | NOTE M– SHARE-BASED COMPENSATION Total share-based compensation during the thirteen June 30, 2019 June 24, 2018 $28,000 $81,000, June 30, 2019, $256,000 twenty-six The Company recognizes compensation cost for unvested stock-based incentive awards on a straight-line basis over the requisite service period. Compensation cost charged to expense under all stock-based incentive awards is as follows (in thousands): Thirteen weeks ended June 30 , 201 9 June 24, 2018 Stock options $ 21 $ 38 Restricted stock 7 43 Total compensation cost $ 28 $ 81 Stock option s : There were no thirteen June 30, 2019. During the fiscal year ended March 31, 2019, 10,000 $89.90 five three September 12, 2019. Transactions with respect to stock options for the thirteen June 30, 2019 Weighted- Weighted- Aggregate Average Average Intrinsic Exercise Remaining Value Shares Price Contractual Life (in thousands) Options outstanding at March 31, 2019 fiscal year (A) 42,234 $ 46.807 1.32 $ 1,127 Granted - - - - Exercised (32,234 ) $ 33.438 - 1,134 Options outstanding at June 30, 2019 10,000 $ 89.90 4.20 - Options exercisable at June 30, 2019 - - - - A- Represents outstanding options after giving effect to the replacement options issued in connection with the Company’s special dividend to shareholders of record on December 22, 2017. Restricted stock: Transactions with respect to restricted stock for the thirteen June 30, 2019 Weighted- Average Grant-date Fair value Shares Per share Unvested restricted stock at March 31, 2019 1,000 $ 89.90 Granted - - Vested - - Unvested restricted stock at June 30, 2019 1,000 $ 89.90 |
Note N - Stockholders' Equity
Note N - Stockholders' Equity | 3 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE N– STOCKHOLDERS’ EQUITY 1. Dividend s Effective June 14, 2019, first $0.35 2020, $1,479,000, June 28, 2019 June 24, 2019. Effective August 9, 2019 second $0.35 September 6, 2019 August 26, 2019. Our ability to pay future dividends is limited by the terms of the Indenture with U.S. Bank National Association, as trustee and collateral trustee (see Note O). In addition to the terms of the Indenture, the declaration and payment of any cash dividends in the future are subject to final determination of the Board and will be dependent upon our earnings and financial requirements. 2. Stock Repurchase Programs During the period from October 2001 June 30, 2019, 5,141,763 $78,303,000 thirteen June 30, 2019, not In 2016, sixth 1,200,000 June 30, 2019, 954,132 $30,641,000 sixth June 30, 2019, 245,868 sixth not may no |
Note O - Long-term Debt
Note O - Long-term Debt | 3 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | NOTE O – LONG-TERM DEBT Long-term debt consists of the following (in thousands): June 30 , March 31, 201 9 2019 6.625% Senior Secured Notes due 2025 $ 150,000 $ 150,000 Less: unamortized debt issuance costs (4,378 ) (4,551 ) Long-term debt, net $ 145,622 $ 145,449 On November 1, 2017, $150,000,000 6.625% 2025 "2025 144A 1933, 2025 November 1, 2017 2025 $135,000,000 10.000% 2020 2020 $5.00 $5.00 November 16, 2017. The 2025 6.625% May 1 st November 1 st May 1, 2019, first 2020. The 2025 no November 1, 2025. The terms and conditions of the 2025 not There are no 2025 June 30, 2019, 2025 The Indenture contains certain covenants limiting the Company’s ability and the ability of its restricted subsidiaries (as defined in the Indenture) to, subject to certain exceptions and qualifications: (i) incur additional indebtedness; (ii) pay dividends or make other distributions on, redeem or repurchase, capital stock; (iii) make investments or other restricted payments; (iv) create or incur certain liens; (v) incur restrictions on the payment of dividends or other distributions from its restricted subsidiaries; (vi) enter into certain transactions with affiliates; (vii) sell assets; or (viii) effect a consolidation or merger. Certain Restricted Payments which may may Fixed Charge Coverage Ratio 2.0 1.0 may may may Priority Secured Leverage Ratio 0.40 1.00 Secured Leverage Ratio 3.75 1.00 2025 The Indenture also contains customary events of default, including, among other things, failure to pay interest, failure to comply with agreements related to the Indenture, failure to pay at maturity or acceleration of other indebtedness, failure to pay certain judgments, and certain events of insolvency or bankruptcy. Generally, if any event of default occurs, the Trustee or the holders of at least 25% 2025 may 2025 2025 The 2025 pari passu not not 2025 2025 Pursuant to the terms of a collateral trust agreement, the liens securing the 2025 The 2025 ● senior in right of payment to all of the Company and the guarantors’ future subordinated indebtedness; ● effectively senior to all unsecured senior indebtedness to the extent of the value of the collateral securing the 2025 ● pari passu ● effectively junior to any future credit facility to the extent of the value of the collateral securing any future credit facility and the 2025 ● effectively junior to any of the Company and the guarantors’ existing and future indebtedness that is secured by assets other than the collateral securing the 2025 ● structurally subordinated to the indebtedness of any of the Company’s current and future subsidiaries that do not 2025 The Company may 2025 November 1, 2020, 100% 2025 1% 2025 2025 November 1, 2020 2025 November 1, 2020 ( 50 2025 Prior to November 1, 2020, 35% 2025 106.625% 2025 On or after November 1, 2020, may 2025 YEAR PERCENTAGE On or after November 1, 2020 and prior to November 1, 2021 103.313% On or after November 1, 2021 and prior to November 1, 2022 101.656% On or after November 1, 2022 100.000% In certain circumstances involving a change of control, the Company will be required to make an offer to repurchase all or, at the holder’s option, any part, of each holder’s 2025 101% 2025 If the Company sells certain collateralized assets and does not 2025 100% The 2025 may 144A 2025 |
Note P - Leases
Note P - Leases | 3 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Leases, Disclosure [Text Block] | NOTE P – LEASES The Company is party as lessee to various leases for its Company-operated restaurants and lessee/sublessor to one Determination of Whether a Contract Contains a Lease We determine if an arrangement is a lease at inception or modification of a contract, and classify each lease as either an operating or finance lease at commencement. The Company only reassesses lease classification subsequent to commencement upon a change to the expected lease term or the contract being modified. Operating leases represent the Company’s right to use an underlying asset as lessee for the lease term, and lease obligations represent the Company’s obligation to make lease payments arising from the lease. A contract contains a lease if the contract conveys the right to control the use of the identified property, plant or equipment for a period of time in exchange for consideration. At commencement, contracts containing a lease are further evaluated for classification as an operating lease or finance lease where the Company is a lessee, or as an operating, sales-type or direct financing lease where the Company is a lessor, based on their terms. ROU Model and Determination of Lease Term The Company uses the ROU model to account for leases where the Company is the lessee, which requires an entity to recognize a lease liability and ROU asset on the lease commencement date. A lease liability is measured equal to the present value of the remaining lease payments over the lease term and is discounted using the incremental borrowing rate, as the rate implicit in the Company’s leases is not Operating leases For operating leases, minimum lease payments or receipts, including minimum scheduled rent increases, are recognized as rent expense where the Company is a lessee, or income where the Company is a lessor, as applicable, on a straight-line basis (“Straight-Line Rent”) over the applicable lease terms. There is a period under certain lease agreements referred to as a rent holiday (“Rent Holiday”) that generally begins on the possession date and ends on the rent commencement date. During a Rent Holiday, no $31,000 June 30, 2019. Lease cost for operating leases is recognized on a straight-line basis and includes the amortization of the ROU asset and interest expense relating to the operating lease liability. Variable lease cost for operating leases include Contingent Rent and payments for executory costs such as real estate taxes, insurance and common area maintenance, which are excluded from the measurement of the lease liability. Short-term lease cost for operating leases includes rental expense for leases with a term of less than 12 12 not 1 2 3 Rental income for operating leases on properties subleased to franchisees is recorded to “Other income, net.” Significant Assumptions and Judgement Management makes certain estimates and assumptions regarding each new lease and sublease agreement, renewal and amendment, including, but not 1 2 3 4 Company as lessee The components of the net lease cost for the thirteen June 30, 2019 Th irteen weeks ended June 30, 2019 Statement of Earnings Operating lease cost $ 342 Short term lease cost 6 Variable lease cost 423 Less: Sublease income, net (21 ) Total net lease cost (a) $ 750 (a) includes $550, $170 $21 Cash paid for amounts included in the measurement of lease liabilities were as follows (in thousands): Th irteen week s ended June 30, 2019 Operating cash flows from operating leases $ 160 The weighted average remaining lease term and weighted-average discount rate for operating leases as of June 30, 2019 Weighted average remaining lease term (years): Operating leases 9.0 Weighted average discount rate: Operating leases 9.074 % Future lease commitments to be paid and received by the Company as of June 30, 2019 Payments Receipts Operating Leases Subleases Net Leases Fiscal year: 2020 (a) $ 809 $ 184 $ 625 2021 1,249 270 979 2022 1,503 272 1,231 2023 1,520 168 1,352 2024 1,453 169 1,284 Thereafter 5,868 521 5,347 Total lease commitments $ 12,402 $ 1,584 $ 10,818 Less: Amount representing interest 4,029 Present value of lease liabilities (b) $ 8,373 (a) Represents the remainder of fiscal year 2020 three June 30, 2019. (b) The present value of minimum operating lease payments of $1,065 $7,308 Future lease commitments to be paid and received by the Company as of March 31, 2019 Payments Receipts Operating Leases Subleases Net Leases Fiscal year: 2020 $ 1,162 $ 273 $ 889 2021 1,249 270 979 2022 1,503 272 1,231 2023 1,520 168 1,352 2024 1,453 169 1,284 Thereafter 5,868 521 5,347 Total lease commitments $ 12,755 $ 1,673 $ 11,082 Company as lessor The components of lease income for the thirteen June 30, 2019 Thirteen weeks ended June 30, 2019 Operating lease income, net $ 21 |
Note Q - Commitments and Contin
Note Q - Commitments and Contingencies | 3 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | NOTE Q – COMMITMENTS AND CONTINGENCIES 1. On February 27, 2017, 10 one 5 24 first three $217,000 not not 12 2. The Company and its subsidiaries are from time to time involved in ordinary and routine litigation. Management presently believes that the ultimate outcome of these proceedings, individually or in the aggregate, will not |
Note B - Adoption of New Acco_2
Note B - Adoption of New Accounting Standards (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | Balance at March 31, 2019 Adjustments due to adoption of the new lease guidance Reclassifications Balance at April 1, 2019 Other Assets Operating lease assets - 7,804 - 7,804 Other assets 465 - 31 496 Current Liabilities Current portion of operating lease liabilities - 1,162 - 1,162 L ong Term L iabilities Long-term operating lease liabilities - 7,371 - 7,371 Other liabilities 1,390 (729 ) 31 692 |
Note D - Revenues (Tables)
Note D - Revenues (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Thirteen weeks ended June 30, 2019 June 24, 2018 Branded Products $ 16,113 $ 16,445 Company-operated restaurants 4,124 4,026 Total sales 20,237 20,471 License royalties 8,722 8,098 Royalties 980 997 Franchise fees 97 107 Total franchise fees and royalties 1,077 1,104 Advertising fund revenue 482 495 Total revenues $ 30,518 $ 30,168 |
Revenue from External Customers by Geographic Areas [Table Text Block] | Thirteen weeks ended June 30, 2019 June 24, 2018 United States $ 29,387 $ 28,856 International 1,131 1,312 Total revenues $ 30,518 $ 30,168 |
Contract with Customer, Asset and Liability [Table Text Block] | June 30, 2019 March 31, 2019 Deferred franchise fees (a) $ 2,926 $ 3,005 |
Contract with Customer, Deferred Franchise Fees [Table Text Block] | Thirteen weeks ended June 30, 2019 June 24, 2018 Deferred franchise fees at beginning of period $ 3,005 $ 3,139 (a) Revenue recognized during the period (97 ) (107 ) New deferrals due to cash received and other 18 170 Deferred franchise fees at end of period $ 2,926 $ 3,202 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block] | Estimate for fiscal year 2020 (a) $ 230 2021 299 2022 288 2023 252 2024 235 Thereafter 1,622 Total $ 2,926 |
Note E - Income Per Share (Tabl
Note E - Income Per Share (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Thirteen weeks Net Income Net Income Number of Shares Per Share 201 9 2018 201 9 2018 201 9 2018 (in thousands) (in thousands) Basic EPS Basic calculation $ 5,369 $ 4,795 4,206 4,185 $ 1.28 $ 1.15 Effect of dilutive employee stock options - - - 41 - (0.02 ) Diluted EPS Diluted calculation $ 5,369 $ 4,795 4,206 4,226 $ 1.28 $ 1.13 |
Note G - Fair Value Measureme_2
Note G - Fair Value Measurements (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Fair Value, Liabilities Measured on Recurring Basis [Table Text Block] | June 30, 2019 March 31, 2019 Face value Fair value Face Value Fair value Long-term debt $ 150,000 $ 147,750 $ 150,000 $ 145,688 |
Note H - Accounts and Other R_2
Note H - Accounts and Other Receivables, Net (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | June 30 , March 31, 201 9 2019 Branded product sales $ 9,222 $ 7,432 Franchise and license royalties 4,785 2,661 Other 1,579 665 15,586 10,758 Less: allowance for doubtful accounts 612 585 Accounts and other receivables, net $ 14,974 $ 10,173 |
Financing Receivable, Current, Allowance for Credit Loss [Table Text Block] | June 30 , 20 1 9 March 31, 2019 Beginning balance $ 585 $ 468 Reclassification to conform with Topic 606 - 77 Bad debt expense 27 100 Accounts written off - (60 ) Ending balance $ 612 $ 585 |
Note I - Prepaid Expenses and_2
Note I - Prepaid Expenses and Other Current Assets (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Other Current Assets [Table Text Block] | June 30 , March 31, 201 9 2019 Income taxes $ - $ 106 Insurance 210 244 Other 563 657 Total prepaid expenses and other current assets $ 773 $ 1,007 |
Note J - Accrued Expenses, Ot_2
Note J - Accrued Expenses, Other Current Liabilities and Other Liabilities (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | June 30 , March 31, 201 9 2019 Payroll and other benefits $ 1,452 $ 3,150 Accrued rebates 809 770 Rent and occupancy costs 176 113 Deferred revenue 484 807 Construction costs 58 58 Interest 1,620 4,111 Professional fees 128 146 Sales, use and other taxes 76 27 Corporate income taxes 1,645 - Other 229 202 Total accrued expenses and other current liabilities $ 6,677 $ 9,384 |
Schedule of Other Assets and Other Liabilities [Table Text Block] | June 30 , March 31, 201 9 2019 Reserve for uncertain tax positions $ 509 $ 496 Deferred rental liability - 670 Other 236 224 Total other liabilities $ 745 $ 1,390 |
Note L - Segment Information (T
Note L - Segment Information (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Thirteen weeks ended June 30 , 201 9 June 24, 2018 Revenues Branded Product Program $ 16,113 $ 16,445 Product licensing 8,722 8,098 Restaurant operations 5,201 5,130 Corporate (1) 482 495 Total revenues $ 30,518 $ 30,168 Income from operations Branded Product Program $ 2,203 $ 2,531 Product licensing 8,676 8,053 Restaurant operations 750 750 Corporate (2,181 ) (2,247 ) Income from operations $ 9,448 $ 9,087 Interest expense (2,650 ) (2,650 ) Interest income 366 61 Other income, net 21 21 Income before provision for income taxes $ 7,185 $ 6,519 |
Note M - Share-based Compensa_2
Note M - Share-based Compensation (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Share-based Payment Arrangement, Cost by Plan [Table Text Block] | Thirteen weeks ended June 30 , 201 9 June 24, 2018 Stock options $ 21 $ 38 Restricted stock 7 43 Total compensation cost $ 28 $ 81 |
Share-based Payment Arrangement, Activity [Table Text Block] | Weighted- Weighted- Aggregate Average Average Intrinsic Exercise Remaining Value Shares Price Contractual Life (in thousands) Options outstanding at March 31, 2019 fiscal year (A) 42,234 $ 46.807 1.32 $ 1,127 Granted - - - - Exercised (32,234 ) $ 33.438 - 1,134 Options outstanding at June 30, 2019 10,000 $ 89.90 4.20 - Options exercisable at June 30, 2019 - - - - |
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | Weighted- Average Grant-date Fair value Shares Per share Unvested restricted stock at March 31, 2019 1,000 $ 89.90 Granted - - Vested - - Unvested restricted stock at June 30, 2019 1,000 $ 89.90 |
Note O - Long-term Debt (Tables
Note O - Long-term Debt (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | June 30 , March 31, 201 9 2019 6.625% Senior Secured Notes due 2025 $ 150,000 $ 150,000 Less: unamortized debt issuance costs (4,378 ) (4,551 ) Long-term debt, net $ 145,622 $ 145,449 |
Debt Instrument Redemption [Table Text Block] | YEAR PERCENTAGE On or after November 1, 2020 and prior to November 1, 2021 103.313% On or after November 1, 2021 and prior to November 1, 2022 101.656% On or after November 1, 2022 100.000% |
Note P - Leases (Tables)
Note P - Leases (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Lease, Cost [Table Text Block] | Th irteen weeks ended June 30, 2019 Statement of Earnings Operating lease cost $ 342 Short term lease cost 6 Variable lease cost 423 Less: Sublease income, net (21 ) Total net lease cost (a) $ 750 |
Leases, Cash Flows [Table Text Block] | Th irteen week s ended June 30, 2019 Operating cash flows from operating leases $ 160 |
Lessee, Operating Leases, Weighted Average Remaining Lease Term and Discount Rate [Table Text Block] | Weighted average remaining lease term (years): Operating leases 9.0 Weighted average discount rate: Operating leases 9.074 % |
Operating Lease, Maturity [Table Text Block] | Payments Receipts Operating Leases Subleases Net Leases Fiscal year: 2020 (a) $ 809 $ 184 $ 625 2021 1,249 270 979 2022 1,503 272 1,231 2023 1,520 168 1,352 2024 1,453 169 1,284 Thereafter 5,868 521 5,347 Total lease commitments $ 12,402 $ 1,584 $ 10,818 Less: Amount representing interest 4,029 Present value of lease liabilities (b) $ 8,373 |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Payments Receipts Operating Leases Subleases Net Leases Fiscal year: 2020 $ 1,162 $ 273 $ 889 2021 1,249 270 979 2022 1,503 272 1,231 2023 1,520 168 1,352 2024 1,453 169 1,284 Thereafter 5,868 521 5,347 Total lease commitments $ 12,755 $ 1,673 $ 11,082 |
Operating Lease, Lease Income [Table Text Block] | Thirteen weeks ended June 30, 2019 Operating lease income, net $ 21 |
Note B - Adoption of New Acco_3
Note B - Adoption of New Accounting Standards (Details Textual) - USD ($) | Jun. 30, 2019 | Apr. 01, 2019 | Mar. 31, 2019 | |
Operating Lease, Right-of-Use Asset | $ 7,655,000 | $ 7,804,000 | ||
Operating Lease, Liability, Total | [1] | $ 8,373,000 | ||
Accounting Standards Update 2016-02 [Member] | ||||
Operating Lease, Right-of-Use Asset | 7,804,000 | |||
Operating Lease, Liability, Total | $ 8,533,000 | |||
[1] | The present value of minimum operating lease payments of $1,065,000 and $7,308,000 are included in "Current portion of operating lease liabilities" and "Long-term operating lease liabilities," respectively. |
Note B - Adoption of New Acco_4
Note B - Adoption of New Accounting Standards - Impact of New Standard on Consolidated Balance Sheet (Details) - USD ($) | Jun. 30, 2019 | Apr. 01, 2019 | Mar. 31, 2019 |
Operating lease assets | $ 7,655,000 | $ 7,804,000 | |
Other assets | 465,000 | 496,000 | 465,000 |
Current portion of operating lease liabilities | 1,065,000 | 1,162,000 | |
Long-term operating lease liabilities | 7,308,000 | 7,371,000 | |
Other liabilities | $ 745,000 | 692,000 | $ 1,390,000 |
Previous Accounting Guidance [Member] | |||
Operating lease assets | |||
Other assets | 465,000 | ||
Current portion of operating lease liabilities | |||
Long-term operating lease liabilities | |||
Other liabilities | 1,390,000 | ||
Adjustments for New Accounting Pronouncement [Member] | |||
Operating lease assets | 7,804,000 | ||
Other assets | |||
Current portion of operating lease liabilities | 1,162,000 | ||
Long-term operating lease liabilities | 7,371,000 | ||
Other liabilities | (729,000) | ||
Balance Sheet Reclassification Adjustments [Member] | |||
Operating lease assets | |||
Other assets | 31,000 | ||
Current portion of operating lease liabilities | |||
Long-term operating lease liabilities | |||
Other liabilities | $ 31,000 |
Note D - Revenues (Details Text
Note D - Revenues (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | ||||
Jun. 30, 2019 | Jun. 24, 2018 | Mar. 31, 2019 | Mar. 26, 2019 | Mar. 25, 2018 | |
Contract with Customer, Liability, Current | $ 306 | $ 318 | |||
Contract with Customer, Liability, Noncurrent | 2,620 | $ 2,687 | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 2,735 | $ (2,004) | |||
Contract with Customer, Liability, Revenue Recognized | $ 97 | $ 107 |
Note D - Revenues - Disaggregat
Note D - Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2019 | Jun. 24, 2018 | |
Revenues | $ 30,518 | $ 30,168 |
Branded Products [Member] | ||
Revenues | 16,113 | 16,445 |
Company-operated Restaurants [Member] | ||
Revenues | 4,124 | 4,026 |
Product [Member] | ||
Revenues | 20,237 | 20,471 |
License [Member] | ||
Revenues | 8,722 | 8,098 |
Royalty [Member] | ||
Revenues | 980 | 997 |
Franchise [Member] | ||
Revenues | 97 | 107 |
Franchise Fees and Royalties [Member] | ||
Revenues | 1,077 | 1,104 |
Advertising Fund Revenue [Member] | ||
Revenues | $ 482 | $ 495 |
Note D - Revenues - Revenues by
Note D - Revenues - Revenues by Geographical Market (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2019 | Jun. 24, 2018 | |
Revenues | $ 30,518 | $ 30,168 |
UNITED STATES | ||
Revenues | 29,387 | 28,856 |
Non-US [Member] | ||
Revenues | $ 1,131 | $ 1,312 |
Note D - Revenues - Contract Li
Note D - Revenues - Contract Liabilities From Contracts With Customers (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 | |
Deferred franchise fees (a) | [1] | $ 2,926 | $ 3,005 |
[1] | Deferred franchise fees of $306 and $2,620 as of June 30, 2019 and $318 and $2,687 as of March 31, 2019 are included in Deferred franchise fees - current and long term, respectively. |
Note D - Revenues - Significant
Note D - Revenues - Significant Changes in Deferred Franchise Fees (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2019 | Jun. 24, 2018 | ||
Deferred franchise fees at beginning of period | $ 3,005 | $ 3,139 | [1] |
Revenue recognized during the period | (97) | (107) | |
New deferrals due to cash received and other | 18 | 170 | |
Deferred franchise fees at end of period | $ 2,926 | $ 3,202 | |
[1] | Includes the cumulative effect of adopting ASC 606 of $2,735. |
Note D - Revenues - Remaining P
Note D - Revenues - Remaining Performance Obligations (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Revenue, Remaining Performance Obligation, Amount | $ 2,926 |
Note D - Revenues - Remaining_2
Note D - Revenues - Remaining Performance Obligations 2 (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Revenue, Remaining Performance Obligation, Amount | $ 2,926 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period (Year) | 273 days |
Revenue, Remaining Performance Obligation, Amount | $ 230 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-03-30 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period (Year) | 1 year |
Revenue, Remaining Performance Obligation, Amount | $ 299 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-03-29 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period (Year) | 1 year |
Revenue, Remaining Performance Obligation, Amount | $ 288 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-03-28 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period (Year) | 1 year |
Revenue, Remaining Performance Obligation, Amount | $ 252 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-03-27 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period (Year) | 1 year |
Revenue, Remaining Performance Obligation, Amount | $ 235 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period (Year) | 1 year |
Revenue, Remaining Performance Obligation, Amount | $ 1,622 |
Note E - Income Per Share (Deta
Note E - Income Per Share (Details Textual) | 3 Months Ended |
Jun. 30, 2019shares | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 10,000 |
Note E - Income Per Share - Ear
Note E - Income Per Share - Earnings Per Share Reconciliation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2019 | Jun. 24, 2018 | |
Net income, basic calculation | $ 5,369 | $ 4,795 |
Number of shares, basic calculation (in shares) | 4,206 | 4,185 |
Net income per share, basic calculation (in dollars per share) | $ 1.28 | $ 1.15 |
Effect of dilutive employee stock options (in shares) | 41 | |
Effect of dilutive employee stock options (in dollars per share) | $ (0.02) | |
Net income, diluted calculation | $ 5,369 | $ 4,795 |
Number of shares, diluted calculation (in shares) | 4,206 | 4,226 |
Net income per share, diluted calculation (in dollars per share) | $ 1.28 | $ 1.13 |
Note F - Cash and Cash Equiva_2
Note F - Cash and Cash Equivalents (Details Textual) - USD ($) | Jun. 30, 2019 | Mar. 31, 2019 |
Cash Equivalents, at Carrying Value, Total | $ 20,000,000 | $ 20,000,000 |
Note G - Fair Value Measureme_3
Note G - Fair Value Measurements - Face Value and Fair Value of Long-term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 |
Long-term debt, face value | $ 150,000 | $ 150,000 |
Long-term debt, fair value | $ 147,750 | $ 145,688 |
Note H - Accounts and Other R_3
Note H - Accounts and Other Receivables, Net (Details Textual) | 3 Months Ended |
Jun. 30, 2019 | |
Accounts Receivable Payment Terms | 30 days |
Note H - Accounts and Other R_4
Note H - Accounts and Other Receivables, Net - Summary of Accounts and Other Receivables (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 | Mar. 25, 2018 |
Accounts receivable, gross, current | $ 15,586 | $ 10,758 | |
Less: allowance for doubtful accounts | 612 | 585 | $ 468 |
Accounts and other receivables, net | 14,974 | 10,173 | |
Branded Product Sales [Member] | |||
Accounts receivable, gross, current | 9,222 | 7,432 | |
Franchise and License Royalties [Member] | |||
Accounts receivable, gross, current | 4,785 | 2,661 | |
Other Receivables [Member] | |||
Accounts receivable, gross, current | $ 1,579 | $ 665 |
Note H - Accounts and Other R_5
Note H - Accounts and Other Receivables, Net - Changes in Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Jun. 24, 2018 | Mar. 31, 2019 | |
Beginning balance | $ 585 | $ 468 | $ 468 |
Reclassification to conform with Topic 606 | 77 | ||
Bad debt expense | 27 | $ 14 | 100 |
Accounts written off | (60) | ||
Ending balance | $ 612 | $ 585 |
Note I - Prepaid Expenses and_3
Note I - Prepaid Expenses and Other Current Assets - Summary of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 |
Income taxes | $ 106 | |
Insurance | 210 | 244 |
Other | 563 | 657 |
Total prepaid expenses and other current assets | $ 773 | $ 1,007 |
Note J - Accrued Expenses, Ot_3
Note J - Accrued Expenses, Other Current Liabilities and Other Liabilities - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 |
Payroll and other benefits | $ 1,452 | $ 3,150 |
Accrued rebates | 809 | 770 |
Rent and occupancy costs | 176 | 113 |
Construction costs | 58 | 58 |
Interest | 1,620 | 4,111 |
Professional fees | 128 | 146 |
Sales, use and other taxes | 76 | 27 |
Corporate income taxes | 1,645 | |
Other | 229 | 202 |
Total accrued expenses and other current liabilities | 6,677 | 9,384 |
Deferred Franchise Fees And Other Deferred Revenue [Member] | ||
Deferred revenue | $ 484 | $ 807 |
Note J - Accrued Expenses, Ot_4
Note J - Accrued Expenses, Other Current Liabilities and Other Liabilities - Other Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Apr. 01, 2019 | Mar. 31, 2019 |
Reserve for uncertain tax positions | $ 509 | $ 496 | |
Deferred rental liability | 670 | ||
Other | 236 | 224 | |
Total other liabilities | $ 745 | $ 692 | $ 1,390 |
Note K - Income Taxes (Details
Note K - Income Taxes (Details Textual) - USD ($) | 3 Months Ended | |
Jun. 30, 2019 | Jun. 24, 2018 | |
Effective Income Tax Rate Reconciliation, Percent, Total | 25.30% | 26.40% |
Effective Income Tax Rate, Effect of Stock Compensation | 3.20% | 1.00% |
Share-based Payment Arrangement, Expense, Tax Benefit | $ 228,000 | $ 63,000 |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 28.50% | 27.40% |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 269,000 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense, Total | $ 257,000 |
Note L - Segment Information -
Note L - Segment Information - Operating Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2019 | Jun. 24, 2018 | ||
Revenues | $ 30,518 | $ 30,168 | |
Income from operations | 9,448 | 9,087 | |
Interest expense | (2,650) | (2,650) | |
Interest income | 366 | 61 | |
Other income, net | 21 | 21 | |
Income before provision for income taxes | 7,185 | 6,519 | |
Corporate, Non-Segment [Member] | |||
Revenues | [1] | 482 | 495 |
Income from operations | (2,181) | (2,247) | |
Branded Product Program [Member] | Operating Segments [Member] | |||
Revenues | 16,113 | 16,445 | |
Income from operations | 2,203 | 2,531 | |
Product Licensing [Member] | Operating Segments [Member] | |||
Revenues | 8,722 | 8,098 | |
Income from operations | 8,676 | 8,053 | |
Restaurant Operations [Member] | Operating Segments [Member] | |||
Revenues | 5,201 | 5,130 | |
Income from operations | $ 750 | $ 750 | |
[1] | Represents advertising fund revenue |
Note M - Share-based Compensa_3
Note M - Share-based Compensation (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Jun. 24, 2018 | Mar. 31, 2019 | |
Share-based Payment Arrangement, Expense | $ 28,000 | $ 81,000 | |
Share Based Compensation Total Unamortized Compensation Expense | $ 256,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 10,000 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 89.90 | ||
Share-based Payment Arrangement, Option [Member] | |||
Share-based Payment Arrangement, Expense | $ 21,000 | $ 38,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 5 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years |
Note M - Share-based Compensa_4
Note M - Share-based Compensation - Compensation Cost Charged to Expense Under All Stock-based Incentive Awards (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2019 | Jun. 24, 2018 | |
Share-based compensation expense | $ 28,000 | $ 81,000 |
Share-based Payment Arrangement, Option [Member] | ||
Share-based compensation expense | 21,000 | 38,000 |
Restricted Stock [Member] | ||
Share-based compensation expense | $ 7,000 | $ 43,000 |
Note M - Share-based Compensa_5
Note M - Share-based Compensation - Outstanding Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Mar. 31, 2019 | |||
Options outstanding (in shares) | [1] | 42,234 | ||
Options outstanding, weighted average exercise price (in dollars per share) | [1] | $ 46.807 | ||
Options outstanding, weighted average remaining contractual life (Year) | 4 years 73 days | 1 year 116 days | [1] | |
Options outstanding, aggregate intrinsic value | [1] | $ 1,127 | ||
Options granted (in shares) | 0 | 10,000 | ||
Granted, weighted average exercise price (in dollars per share) | $ 89.90 | |||
Options exercised (in shares) | (32,234) | |||
Exercised, weighted average exercise price (in dollars per share) | $ 33.438 | |||
Exercised, aggregate intrinsic value | $ 1,134 | |||
Options outstanding (in shares) | 10,000 | 42,234 | [1] | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 89.90 | $ 46.807 | [1] | |
Options exercisable (in shares) | ||||
Options exercisable, weighted average exercise price (in dollars per share) | ||||
[1] | Represents outstanding options after giving effect to the replacement options issued in connection with the Company’s special dividend to shareholders of record on December 22, 2017. |
Note M - Share-based Compensa_6
Note M - Share-based Compensation - Transactions With Respect to Restricted Stock (Details) - Restricted Stock [Member] - $ / shares | 3 Months Ended | |
Jun. 30, 2019 | Mar. 31, 2019 | |
Unvested restricted stock, Shares (in shares) | 1,000 | |
Unvested restricted stock, weighted average grant date fair value per share (in dollars per share) | $ 89.90 | $ 89.90 |
Granted, Shares (in shares) | ||
Granted, weighted average grant date fair value per share (in dollars per share) | ||
Vested, Shares (in shares) | ||
Vested, weighted average grant date fair value per share (in dollars per share) | ||
Unvested restricted stock, ending balance (in shares) | 1,000 |
Note N - Stockholders' Equity (
Note N - Stockholders' Equity (Details Textual) - USD ($) | Aug. 09, 2019 | Jun. 14, 2019 | Jun. 30, 2019 | Jun. 24, 2018 | Jun. 30, 2019 | Jun. 30, 2019 | Mar. 11, 2016 |
Common Stock, Dividends, Per Share, Declared | $ 0.35 | $ 0.35 | $ 0.25 | ||||
Payments of Ordinary Dividends, Common Stock | $ 1,479,000 | ||||||
Treasury Stock, Shares, Acquired | 0 | 5,141,763 | |||||
Treasury Stock, Value, Acquired, Cost Method | $ 78,303,000 | ||||||
Sixth Stock Repurchase Plan [Member] | |||||||
Treasury Stock, Shares, Acquired | 954,132 | ||||||
Treasury Stock, Value, Acquired, Cost Method | $ 30,641,000 | ||||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 1,200,000 | ||||||
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 245,868 | 245,868 | 245,868 | ||||
Subsequent Event [Member] | |||||||
Common Stock, Dividends, Per Share, Declared | $ 0.35 |
Note O - Long-term Debt (Detail
Note O - Long-term Debt (Details Textual) - USD ($) | Nov. 01, 2017 | Mar. 10, 2015 | Jun. 30, 2019 | Mar. 31, 2019 |
Dividends Payable, Amount Per Share | $ 5 | |||
Senior Notes [Member] | ||||
Debt Instrument, Fixed Charge Coverage Ratio | 2 | |||
Debt Instrument, Priority Secured Leverage Ratio | 0.4 | |||
Debt Instrument Secured Leverage Ratio | 3.75 | |||
Debt Instrument, Event of Default, Percentage Ownership Enabling the Declaration of Due and Payable | 25.00% | |||
Senior Notes [Member] | In The Event of Certain Equity Offerings [Member] | ||||
Debt Instrument, Redemption Price, Percentage | 106.625% | |||
Senior Notes [Member] | In the Event of Chang of Control Offer [Member] | ||||
Debt Instrument, Redemption Price, Percentage | 101.00% | |||
Senior Notes [Member] | In the Event the Company Sells Certain Assets and Fails to Use the Proceeds as Required [Member] | ||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||
Senior Notes [Member] | Senior Secured 2025 Notes [Member] | ||||
Proceeds from Issuance of Long-term Debt, Total | $ 150,000,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 6.625% | 6.625% | 6.625% | |
Debt Instrument, Face Amount | $ 135,000,000 | |||
Senior Notes [Member] | Senior Secured 2020 Notes [Member] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | |||
Senior Notes [Member] | Option to Redeem Notes at Redemption Price Equal to the Percentage of Principal Amount plus the Applicable Premium [Member] | ||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||
Senior Notes [Member] | Option to Redeem Notes at Redemption Price Equal to the Percentage of Principal Amount plus the Applicable Premium [Member] | Applicable Premium if Percentage of Principal Amount is Greater than Treasury Rate Basis Spread [Member] | ||||
Debt Instrument, Applicable Premium, Percentage of Principal Amount | 1.00% | |||
Senior Notes [Member] | Option to Redeem Notes at Redemption Price Equal to the Percentage of Principal Amount plus the Applicable Premium [Member] | Applicable Premium if Treasury Rate Basis Spread is Greater than Percentage of Principal Amount [Member] | Treasury Rate [Member] | ||||
Debt Instrument, Applicable Premium, Treasury Rate Basis Spread | 0.50% | |||
Senior Notes [Member] | Option to Redeem at Redemption Price Equal to Percentage of Principal Amount [Member] | In The Event of Certain Equity Offerings [Member] | Maximum [Member] | ||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 35.00% |
Note O - Long-term Debt - Summa
Note O - Long-term Debt - Summary of Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 |
Long-term debt, face value | $ 150,000 | $ 150,000 |
Less: unamortized debt issuance costs | (4,378) | (4,551) |
Long-term debt, net | 145,622 | 145,449 |
Senior Secured 2025 Notes [Member] | Senior Notes [Member] | ||
Long-term debt, face value | $ 150,000 | $ 150,000 |
Note O - Long-term Debt - Sum_2
Note O - Long-term Debt - Summary of Debt (Details) (Parentheticals) | Jun. 30, 2019 | Mar. 31, 2019 | Nov. 01, 2017 |
Senior Secured 2025 Notes [Member] | Senior Notes [Member] | |||
Interest Rate | 6.625% | 6.625% | 6.625% |
Note O - Long-term Debt - Sum_3
Note O - Long-term Debt - Summary of Redemption Features (Details) | 3 Months Ended |
Jun. 30, 2019 | |
Debt Instrument, Redemption, Period One [Member] | |
Debt instrument, redemption price, percentage | 103.313% |
Debt Instrument, Redemption, Period Two [Member] | |
Debt instrument, redemption price, percentage | 101.656% |
Debt Instrument, Redemption, Period Three [Member] | |
Debt instrument, redemption price, percentage | 100.00% |
Note P - Leases (Details Textua
Note P - Leases (Details Textual) - USD ($) | 3 Months Ended | ||
Jun. 30, 2019 | Apr. 01, 2019 | Mar. 31, 2019 | |
Operating Lease, Cost | $ 342,000 | ||
Operating Lease, Liability, Current | 1,065,000 | $ 1,162,000 | |
Operating Lease, Liability, Noncurrent | 7,308,000 | $ 7,371,000 | |
Restaurant Operating Expense [Member] | |||
Operating Lease, Cost | 550,000 | ||
General and Administrative Expense [Member] | |||
Operating Lease, Cost | 170,000 | ||
Other Income [Member] | |||
Operating Lease, Cost | 21,000 | ||
Other Assets [Member] | |||
Deferred Rent Receivables, Net, Noncurrent, Total | $ 31,000 |
Note P - Leases - Components of
Note P - Leases - Components of Net Lease Cost (Details) $ in Thousands | 3 Months Ended | |
Jun. 30, 2019USD ($) | ||
Operating lease cost | $ 342 | |
Short term lease cost | 6 | |
Variable lease cost | 423 | |
Less: Sublease income, net | (21) | |
Total net lease cost | $ 750 | [1] |
[1] | includes $550, net recorded to "Restaurant Operating Expenses" for leases for Company-operated restaurants, $170 recorded to "General and administrative expenses" for leases for corporate offices and equipment and $21 recorded to “Other income, net” for leased properties that are leased to franchisees: |
Note P - Leases - Cash Paid for
Note P - Leases - Cash Paid for Amounts Included in the Measurement of Lease Liabilities (Details) $ in Thousands | 3 Months Ended |
Jun. 30, 2019USD ($) | |
Operating cash flows from operating leases | $ 160 |
Note P - Leases - Weighted Aver
Note P - Leases - Weighted Average Remaining Lease Term and Weighted-average Discount Rate (Details) | Jun. 30, 2019 |
Operating leases, weighted average remaining lease term (Year) | 9 years |
Operating leases, weighted average discount rate | 9.074% |
Note P - Leases - Future Lease
Note P - Leases - Future Lease Commitments to Be Paid and Received (Details) $ in Thousands | Jun. 30, 2019USD ($) | |
2020, payments operating leases | $ 809 | [1] |
2020, receipts subleases | 184 | [1] |
2020, net leases | 625 | [1] |
2021, payments operating leases | 1,249 | |
2021, receipts subleases | 270 | |
2021, net leases | 979 | |
2022, payments operating leases | 1,503 | |
2022, receipts subleases | 272 | |
2022, net leases | 1,231 | |
2023, payments operating leases | 1,520 | |
2023, receipts subleases | 168 | |
2023, net leases | 1,352 | |
2024, payments operating leases | 1,453 | |
2024, receipts subleases | 169 | |
2024, net leases | 1,284 | |
Thereafter, payments operating leases | 5,868 | |
Thereafter, receipts subleases | 521 | |
Thereafter, net leases | 5,347 | |
Total lease commitments, payments operating leases | 12,402 | |
Total lease commitments, receipts subleases | 1,584 | |
Total lease commitments, net leases | 10,818 | |
Less: Amount representing interest, payments operating leases | 4,029 | |
Present value of lease liabilities, payments operating leases | $ 8,373 | [2] |
[1] | Represents the remainder of fiscal year 2020 which excludes the three months ended June 30, 2019. | |
[2] | The present value of minimum operating lease payments of $1,065,000 and $7,308,000 are included in "Current portion of operating lease liabilities" and "Long-term operating lease liabilities," respectively. |
Note P - Leases - Non-cancelabl
Note P - Leases - Non-cancelable Operating Lease Commitments (Details) $ in Thousands | Mar. 31, 2019USD ($) |
2020, Lease commitments | $ 1,162 |
2020, Sublease income | 273 |
2020, Net lease commitments | 889 |
2021, Lease commitments | 1,249 |
2021, Sublease income | 270 |
2021, Net lease commitments | 979 |
2022, Lease commitments | 1,503 |
2022, Sublease income | 272 |
2022, Net lease commitments | 1,231 |
2023, Lease commitments | 1,520 |
2023, Sublease income | 168 |
2023, Net lease commitments | 1,352 |
2023, Lease commitments | 1,453 |
2024, Sublease income | 169 |
2024, Net lease commitments | 1,284 |
Thereafter, Lease commitments | 5,868 |
Thereafter, Sublease income | 521 |
Thereafter, Net lease commitments | 5,347 |
Total lease commitments | 12,755 |
Total lease commitments | 1,673 |
Total lease commitments | $ 11,082 |
Note P - Leases - Components _2
Note P - Leases - Components of Lease Income (Details) $ in Thousands | 3 Months Ended |
Jun. 30, 2019USD ($) | |
Operating lease income, net | $ 21 |
Note Q - Commitments and Cont_2
Note Q - Commitments and Contingencies (Details Textual) | Feb. 27, 2017USD ($) |
Guaranty Liabilities | $ 217,000 |