JERICHO, N.Y., Feb. 05, 2021 (GLOBE NEWSWIRE) -- Nathan's Famous, Inc. (NASDAQ:NATH) today reported results for the third quarter of its 2021 fiscal year that ended December 27, 2020.

For the fiscal quarter ended December 27, 2020:

• Revenues were $18,030,000, as compared to $21,376,000 during the thirteen weeks ended December 29, 2019;
• Income from operations was $4,403,000, as compared to $3,863,000 during the thirteen weeks ended December 29, 2019;
• Adjusted EBITDA¹, a non-GAAP financial measure, was $4,818,000, as compared to $4,546,000 for the thirteen weeks ended December 29, 2019;
• Income before provision for income taxes was $1,851,000, as compared to $1,573,000 for the thirteen weeks ended December 29, 2019;
• Net income was $1,359,000, as compared to $1,213,000 for the thirteen weeks ended December 29, 2019; and
• Earnings per diluted share was $0.33 per share, as compared to $0.29 per share for the thirteen weeks ended December 29, 2019.

For the thirty-nine weeks ended December 27, 2020:

• Revenues were $57,555,000, as compared to $81,620,000 during the thirty-nine weeks ended December 29, 2019;
• Income from operations was $20,081,000, as compared to $20,677,000 during the thirty-nine weeks ended December 29, 2019;
• Adjusted EBITDA¹, a non-GAAP financial measure, was $21,408,000, as compared to $22,840,000 for the thirty-nine weeks ended December 29, 2019;
• Income before provision for income taxes was $12,470,000, as compared to $13,861,000 for the thirty-nine weeks ended December 29, 2019;
• Net income was $9,014,000, as compared to $10,240,000 for the thirty-nine weeks ended December 29, 2019; and
• Earnings per diluted share was $2.19 per share, as compared to $2.43 per share for the thirty-nine weeks ended December 29, 2019.

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¹ EBITDA and Adjusted EBITDA are non-GAAP financial measures. Please see the definitions of EBITDA and Adjusted EBITDA on page 3 of this release and the reconciliation of EBITDA and Adjusted EBITDA to net income in the table at the end of this release.

The Company also reported the following:

• License royalties increased to $24,689,000 during the thirty-nine weeks ended December 27, 2020, (“fiscal 2021 period”), as compared to $18,559,000 during the thirty-nine weeks ended December 29, 2019. During the fiscal 2021 period, royalties earned under the retail agreement, including the foodservice program, from John Morrell & Co., increased 33% to $22,743,000, as compared to $17,071,000 of royalties earned during the thirty-nine weeks ended December 29, 2019. As consumers continue to shelter at home as a result of the COVID-19 pandemic, our licensing business continues to show strong consumer demand.
• In the Branded Product Program, which features the sale of Nathan’s hot dogs to the foodservice industry, income from operations declined by approximately $3,170,000 to $3,074,000 during the fiscal 2021 period, as compared to $6,244,000 for the thirty-nine weeks ended December 29, 2019. Sales were $24,450,000 during the fiscal 2021 period, compared to sales of $45,989,000 during the thirty-nine weeks ended December 29, 2019, while the volume of hot dogs sold by the Company decreased 48%. As a result of the COVID-19 pandemic, sales and income from operations for the Branded Product Program continue to be negatively impacted as many of our customers operate in venues that are currently closed, such as movie theaters, or venues operating at reduced capacity, such as professional sports arenas, amusement parks, and shopping malls.
• Sales from Company-operated restaurants were $6,247,000 during the fiscal 2021 period compared to $11,710,000 during the thirty-nine weeks ended December 29, 2019. The decrease was primarily due to a decline in customer traffic related to the impact of the COVID-19 pandemic. Additionally, as stipulated under government orders, our Company-operated restaurants with dining rooms are operating at reduced capacity and maintaining social distancing protocols.
• Revenues from franchise operations were $1,087,000 during the fiscal 2021 period, compared to $3,610,000 during the thirty-nine weeks ended December 29, 2019. Total royalties were $880,000 during the fiscal 2021 period as compared to $2,829,000 during the thirty-nine weeks ended December 29, 2019. Total franchise fee income was $207,000 during the fiscal 2021 period compared to $781,000 during the thirty-nine weeks ended December 29, 2019. As a result of the COVID-19 pandemic, a number of our franchised locations have been temporarily closed due to their locations being in venues which are closed, such as movie theaters, or venues operating at reduced traffic, such as airport and highway travel plazas. Despite the challenging environment, 5 new franchised outlets and 75 ghost kitchens opened during the fiscal 2021 period.
• During the fiscal 2021 period, we recorded Advertising Fund revenue and expense of $1,082,000.
• During the fiscal 2021 period, the Board of Directors declared three quarterly cash dividends of $0.35 per share totaling $4,320,000.
• Effective February 5, 2021, the Board of Directors declared its quarterly cash dividend of $0.35 per share payable on March 5, 2021 to shareholders of record at the close of business on February 22, 2021.r a reconciliation of EBITDA and Adjusted EBITDA to net income.

About Nathan’s Famous
Nathan’s is a Russell 2000 Company that currently distributes its products in 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, and 12 foreign countries through its restaurant system, foodservice sales programs and product licensing activities. Last year, over 700 million Nathan’s Famous hot dogs were sold. For additional information about Nathan’s Famous, please visit our website at www.nathansfamous.com.