JERICHO, N.Y., Feb. 1, 2019 /PRNewswire/ -- Nathan's Famous, Inc. (NASDAQ:NATH) today reported results for the third quarter of its 2019 fiscal year that ended December 23, 2018.

• Revenues were $20,222,000, as compared to $22,021,000 during the thirteen weeks ended December 24, 2017;
• Adjusted EBITDA, as subsequently defined, was $16,306,000, as compared to $5,855,000 for the thirteen weeks ended December 24, 2017;
• Income before provision for income taxes was $13,349,000, as compared to a loss before benefit for income taxes of $7,086,000 for the thirteen weeks ended December 24, 2017;
• Net income was $9,722,000, as compared to a net loss of $3,779,000 for the thirteen weeks ended December 24, 2017;
• Earnings per diluted share were $2.30 per share, as compared to a loss per diluted share of $0.90 per share for the thirteen weeks ended December 24, 2017;
• On October 23, 2018, we sold our restaurant in Bay Ridge, Brooklyn and recognized a gain of $10,821,000 or $7,881,000, net of tax, or $1.87 per diluted share;
• In connection with our November 2017 refinancing of the 10.000% Senior Secured Notes due 2020, we recorded a loss on debt extinguishment of $8,872,000, or $5,266,000, net of tax, or $1.25 per diluted share;
• Benefit for income taxes for the thirteen weeks ended December 24, 2017 was increased by $436,000 or $0.10 per diluted share resulting from the revaluation of its deferred tax liabilities resulting from the effects of tax reform; and
• Excluding the gain from the sale of restaurant, loss on debt extinguishment and revaluation of deferred tax liabilities, net income would have been $1,841,000 or $0.44 per diluted share as compared to net income of $1,051,000 or $0.25 per diluted share.

• Revenues were $79,720,000, as compared to $84,295,000 during the thirty-nine weeks ended December 24, 2017;
• Adjusted EBITDA, as subsequently defined, was $35,377,000, as compared to $24,085,000 for the thirty-nine weeks ended December 24, 2017;
• Income before provision for income taxes was $26,331,000, as compared to $2,884,000 for the thirty-nine weeks ended December 24, 2017;
• Net income was $19,001,000, as compared to $2,263,000 for the thirty-nine weeks ended December 24, 2017;
• Earnings per diluted share was $4.50 per share, as compared to $0.54 per share for the thirty-nine weeks ended December 24, 2017;
• On October 23, 2018, we sold our restaurant in Bay Ridge, Brooklyn and recognized a gain of $10,821,000 or $7,881,000, net of tax, or $1.87 per diluted share;
• In connection with our November 2017 refinancing of the 10.000% Senior Secured Notes due 2020, we recorded a loss on debt extinguishment of $8,872,000, or $5,266,000, net of tax, or $1.25 per diluted share;
• Provision for income taxes for the thirty-nine weeks ended December 24, 2017 was reduced by $436,000 or $0.10 per diluted share resulting from the revaluation of its deferred tax liabilities resulting from the effects of tax reform; and
• Excluding the gain from the sale of restaurant, loss on debt extinguishment and revaluation of deferred tax liabilities, net income would have been $11,120,000 or $2.63 per diluted share as compared to net income of $7,093,000 or $1.68 per diluted share.

• License royalties increased to $18,160,000 during the thirty-nine weeks ended December 23, 2018, as compared to $17,393,000 during the thirty-nine weeks ended December 24, 2017. During the thirty-nine weeks ended December 23, 2018, total royalties earned under the John Morrell & Co., agreement increased 4.3% to $16,536,000, as compared to $15,853,000 of royalties earned during the thirty-nine weeks ended December 24, 2017.

• In the Branded Product Program, which features the sale of Nathan's hot dogs to the foodservice industry, income from operations decreased by approximately $163,000 to $7,725,000 for the thirty-nine weeks ended December 23, 2018, as compared to $7,888,000 for the thirty-nine weeks ended December 24, 2017. Sales were $44,308,000 in the current period, compared to sales of $50,741,000 during the prior-year period, while the volume of hot dogs sold by the Company decreased 7.6%. However, the sales and volume declines were mostly related to the use of a new re-distributor to temporarily service certain of our regular distributor customers. Excluding the effects of the re-distributors' purchases in both years, we estimate that customer shipments, increased by approximately 1.5% during the fiscal 2019 period. Our average selling price, which is partially correlated to the beef markets, decreased by approximately 5.5% compared to the year-earlier period.

• Sales from Company-operated restaurants were $12,140,000 during the thirty-nine weeks ended December 23, 2018, as compared to $12,586,000 during the thirty-nine weeks ended December 24, 2017. Sales were negatively affected, especially at our two Coney Island locations, by exceptionally unfavorable weather conditions in the Northeastern United States, during April and the summer.

• Revenues from franchise operations were $3,254,000 during the thirty-nine weeks ended December 23, 2018, as compared to $3,575,000 during the thirty-nine weeks ended December 24, 2017. Total royalties were $2,906,000 in the fiscal 2019 period as compared to $3,293,000 in the fiscal 2018 period. Total franchise fee income was $348,000 during the thirty-nine weeks ended December 23, 2018, as compared to $282,000 during the thirty-nine weeks ended December 24, 2017. Twelve new franchised outlets opened during the thirty-nine weeks ended December 23, 2018, including five international locations, and four Branded Menu Program outlets.

• In October 2018, Nathan's sold its restaurant, including land, in Bay Ridge, Brooklyn, New York and recognized a gain on the sale of $10,821,000 or $7,881,000 net of tax.

• In November 2017, Nathan's refinanced its then-outstanding $135.0 million 10.000% Senior Secured Notes due 2020 by issuing $150.0 million 6.625% Senior Secured Notes due 2025. In connection with the refinancing, the Company recorded a loss on extinguishment of debt of $8,872,000 or $5,266,000, net of tax. Nathan's lowered its interest expense by approximately $3,025,000 during the thirty-nine weeks ended December 23, 2018 as compared to the thirty-nine weeks ended December 24, 2017.

• On December 14, 2018, we paid the $0.25 per share regular cash dividend that was declared by the Board of Directors effective November 2, 2018 to shareholders of record at the close of business on December 3, 2018.

• Effective February 1, 2019, the Board of Directors declared its quarterly cash dividend of $0.25 per share payable on March 22, 2019 to shareholders of record at the close of business on March 11, 2019.

In addition to disclosing results that are determined in accordance with Generally Accepted Accounting Principles in the United States of America ("US GAAP"), the Company has provided EBITDA excluding (i) interest expense; (ii) provision for income taxes and (iii) depreciation and amortization expense. The Company has also provided Adjusted EBITDA excluding loss on debt extinguishment and stock-based compensation that the Company believes will impact the comparability of its results of operations.

The Company believes that EBITDA and Adjusted EBITDA are useful to investors to assist in assessing and understanding the Company's operating performance and underlying trends in the Company's business because EBITDA and Adjusted EBITDA are (i) among the measures used by management in evaluating performance and (ii) are frequently used by securities analysts, investors and other interested parties as a common performance measure.

EBITDA and Adjusted EBITDA are not recognized terms under US GAAP and should not be viewed as alternatives to net income or other measures of financial performance or liquidity in conformity with US GAAP. Additionally, our definitions of EBITDA and Adjusted EBITDA may differ from other companies. Analysis of results and outlook on a non-US GAAP basis should be used as a complement to, and in conjunction with, data presented in accordance with US GAAP.

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 fifteen foreign countries through its restaurant system, foodservice sales programs and product licensing activities. Last year, over 600 million Nathan's Famous hot dogs were sold. Nathan's was ranked #22 on the Forbes 2014 list of the Best Small Companies in America and was listed as the Best Small Company in New York State in October 2013. For additional information about Nathan's please visit our website at www.nathansfamous.com.

Except for historical information contained in this news release, the matters discussed are forward looking statements that involve risks and uncertainties.  Words such as "anticipate", "believe", "estimate", "expect", "intend", and similar expressions identify forward-looking statements, which are based on the current belief of the Company's management, as well as assumptions made by and information currently available to the Company's management.  Among the factors that could cause actual results to differ materially include but are not limited to: the status of our licensing and supply agreements, including the impact of our supply agreement for hot dogs with John Morrell & Co.; the impact of our indebtedness, including the effect on our ability to fund working capital, operations and make new investments; economic; weather (including the impact on the supply of cattle and the impact on sales at our restaurants particularly during the summer months), and change in the price of beef trimmings; our ability to pass on the cost of any price increases in beef and beef trimmings; legislative and business conditions; the collectability of receivables; changes in consumer tastes; the ability to attract franchisees; the impact of the minimum wage legislation on labor costs in New York State or other changes in labor laws, including regulations which could render a franchisor as a "joint employee" or the impact of our new union contracts; our ability to attract competent restaurant and managerial personnel; the enforceability of international franchising agreements; and the future effects of any food borne illness; such as bovine spongiform encephalopathy, BSE and e coli; and the risk factors reported from time to time in the Company's SEC reports. The Company does not undertake any obligation to update such forward-looking statements.