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Sonic Corp. (Nasdaq/NM: SONC)today reported results for the fourth quarter and fiscal year ended August 31, 2002. Continuing same-store sales growth and a strong development program, combined with growing franchising income, helped push Sonic's fourth quarter and full-year revenues to record amounts.
These ongoing top-line gains, together with improved restaurant level margins and greater leverage of corporate-level expenses, translated into a 22% increase in diluted earnings per share for the full fiscal year and a 19% increase for the quarter.
Highlights of the company's report included:
"For the quarter and year, Sonic's financial and operational results again moved into record territory, demonstrating the fundamental strength of our business and the power of our multi-layered growth strategies," said Clifford Hudson, Chairman and Chief Executive Officer. "We were successful in growing our brand awareness with higher media expenditures, opening new drive-ins, expanding our sales, and increasing our earnings and cash flow. In addition, we had a steady stream of new product news throughout the year - keeping Sonic relevant to customer interests, and we continued the successful rollout of our breakfast program that is now available across approximately one-half of the chain. These accomplishments resonate with our guests, who continue to respond very positively to new product news and remain the most loyal in the quick service restaurant sector."
Net income for the fourth quarter of fiscal 2002 increased 20% to $16.1 million from $13.5 million in the same period last year. On a diluted per share basis, net income rose 19% to $0.38 versus $0.32 last year. Revenues for the quarter were up 15% to $120.0 million compared with $104.8 million in the fourth quarter last year.
Net income for fiscal 2002 rose 22% to $47.7 million or $1.13 per diluted share from $39.0 million or $0.93 per diluted share in fiscal 2001. Revenues for the year increased 21% to $400.2 million from $330.6 million in fiscal 2001.
Looking ahead to the coming year, Hudson added: "We think our plan to increase media spending to over $100 million, along with our program of new product news and day part initiatives, will continue to drive same-store sales growth in the range of 1% to 3%. Combine this with the impact of a strong development program, under which we plan to open between 190 and 200 drive-ins in fiscal 2003, increasing franchising income derived from our unique ascending royalty rate and a strong pipeline of franchisee development opportunities, and we believe Sonic remains soundly positioned to deliver 18%-20% earnings per share growth in fiscal 2003."