Earnings before income taxes for the quarter ended June 24, 2001 increased by 36.9% to $1,713,000 as compared to $1,251,000 for the quarter ended June 25, 2000. Net earnings for the fiscal 2002 quarter were $962,000 or $0.14 per diluted share as compared to $745,000 or $0.11 per diluted share in the prior fiscal year.
During the first quarter fiscal 2002, earnings before income taxes included the reversal of a previously recorded litigation reserve of $210,000 in connection with the Company's successful appeal and a gain of $96,000 from the sale of a restaurant. Earnings before income taxes for the first quarter fiscal 2001 included revenue of $221,000 in connection with the introduction of a consolidated food distribution agreement.
Total revenues were $11,876,000 in the first quarter fiscal 2002 as compared to $12,899,000 in the first quarter fiscal 2001. Systemwide sales of the Company's brands, including supermarket sales by the Company's hot dog licensee, were $72,433,000 for the thirteen weeks ended June 24, 2001, as compared to $77,262,000 for the thirteen weeks ended June 25, 2000.
The company also reported the following:
• Fewer Company-owned restaurants operated, primarily due to the Miami Subs divestiture strategy, which lowered revenues by approximately $1.2 million and improved restaurant profits by approximately $97,000 as compared to the first fiscal quarter of fiscal 2001.
• The introduction of two or more brands into its Miami Subs restaurant system, enabling the July 2001 launch of its new "Miami Subs Plus" concept in South Florida. In total, 140 of the Company's Nathan's, Miami Subs and Kenny Rogers Roasters restaurants are co-branded with another of its brands or with the Arthur Treacher's brand.
• The Branded Product Program, featuring the sale of Nathan's hot dogs to the foodservice industry, has continued to grow, generating sales of approximately $1,238,000 during the first fiscal quarter as compared to $915,000 during last year's first fiscal quarter.
• Sales of Nathan's products sold in supermarkets and club stores continue to result in year over year increases in royalties, increasing 21.7% for the first fiscal quarter of 2002 over the first fiscal quarter of 2001.
Today Nathan's Famous, Inc. consists of 24 company-owned units, 384 franchised or licensed units, and more than 1,200 Branded Product points of sale, located throughout forty-two states, the District of Columbia and seventeen foreign countries featuring the Nathan's, Miami Subs and Kenny Rogers Roasters brands.
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