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:

Earnings increased 22% to a record $1.13 per diluted share for the year; record diluted EPS of $0.38 for the quarter was 19% ahead of fiscal 2001

System-wide same-store sales increased 3.0% for the year, the sixteenth consecutive year of same-store sales growth for Sonic; system-wide same-store sales increased 0.6% for the quarter

System-wide sales surpassed $2 billion for the first time ever in a fiscal year period – a doubling in system sales in just five years

Sonic opened 182 new drive-ins during the year, including 64 in the fourth quarter, or just slightly below the record pace of 191 set in fiscal 2001

“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.”