FORM 10-K

Press release·03/03/2025 09:00:44

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FORM 10-K

Flanigan’s Enterprises, Inc. filed its annual report for the fiscal year ended September 28, 2024. The company reported total revenues of $123.4 million, a 5% increase from the previous year. Net income was $8.4 million, a 10% decrease from the previous year. The company’s cash and cash equivalents decreased by $5.6 million to $14.1 million, while its total assets increased by 2% to $143.8 million. The company’s common stock, listed on the NYSE American under the ticker symbol BDL, had an aggregate market value of $21.5 million as of March 28, 2024. As of December 26, 2024, there were 1,858,647 shares of common stock outstanding. The company’s financial statements reflect the correction of an error to previously issued financial statements, but this correction did not require a recovery analysis of incentive-based compensation received by executive officers.

OVERVIEW

Flanigan’s Enterprises, Inc. is a company that operates restaurants, sports bars, and package liquor stores. The company’s business is conducted principally in two segments: the restaurant segment and the package liquor store segment.

As of September 28, 2024, the company operated 32 units, consisting of restaurants, sports bars, package liquor stores and combination restaurants/package liquor stores that it either owns or has operational control over and partial ownership in. The company also franchises an additional five units, consisting of two restaurants (one of which it operates) and three combination restaurants/package liquor stores.

Financial Information Concerning Industry Segments

The company’s financial information is broken down into the restaurant segment and the package liquor store segment for the two fiscal years ended September 28, 2024 and September 30, 2023.

RESULTS OF OPERATIONS

Revenues (in thousands):

Item	September 28, 2024	Percent	September 30, 2023	Percent
Restaurant food sales	$114,795	61.95%	$107,238	62.56%
Restaurant bar sales	$30,010	16.20%	$29,000	16.92%
Package store sales	$40,497	21.85%	$35,187	20.52%
Total Sales	$185,302	100.00%	$171,425	100.00%
Franchise related revenues	$1,693	-	$1,857	-
Rental income	$1,105	-	$951	-
Other revenues	$221	-	$163	-
Total Revenue	$188,321	-	$174,396	-

Comparison of Fiscal Years Ended September 28, 2024 and September 30, 2023

Revenues:

Total revenue increased by $13,925,000 or 7.98% to $188,321,000 in fiscal year 2024 from $174,396,000 in fiscal year 2023, primarily due to increased package liquor store and restaurant sales, increased menu prices, and revenue from new restaurant and package liquor store openings.
Restaurant food sales increased by $7,557,000 or 7.04% to $114,795,000 in fiscal year 2024 from $107,238,000 in fiscal year 2023, due to the Recent Price Increases and new restaurant openings.
Restaurant bar sales increased by $1,010,000 or 3.48% to $30,010,000 in fiscal year 2024 from $29,000,000 in fiscal year 2023, also due to the Recent Price Increases and new restaurant openings.
Package liquor store sales increased by $5,310,000 or 15.09% to $40,497,000 in fiscal year 2024 from $35,187,000 in fiscal year 2023, primarily due to increased package liquor store traffic and new store openings.

Costs and Expenses:

Costs and expenses increased by $14,553,000 or 8.70% to $181,925,000 in fiscal year 2024 from $167,372,000 in fiscal year 2023, primarily due to increased payroll, consultant fees, food costs, and expenses from new restaurant and package liquor store openings.
Gross profit margin for restaurant food and bar sales decreased to 65.57% in fiscal year 2024 from 66.61% in fiscal year 2023 due to higher food costs.
Gross profit margin for package liquor store sales decreased to 25.60% in fiscal year 2024 from 26.65% in fiscal year 2023 due to higher costs and more competitive pricing.

Net Income:

Net income decreased by $116,000 or 2.14% to $5,300,000 in fiscal year 2024 from $5,416,000 in fiscal year 2023, primarily due to higher food costs and increased expenses.
Net income attributable to stockholders decreased by $643,000 or 16.08% to $3,356,000 in fiscal year 2024 from $3,999,000 in fiscal year 2023, also due to higher costs and expenses.

New Limited Partnership Restaurants

The company did not open any new limited partnership restaurants in fiscal year 2024, but did open one new location in Miramar, Florida during fiscal year 2023.

Menu Price Increases

The company increased menu prices for bar offerings in fiscal year 2024 and for both food and bar offerings in fiscal year 2023 to offset higher costs.

LIQUIDITY AND CAPITAL RESOURCES

As of September 28, 2024, the company had cash and cash equivalents of $21,402,000, a decrease of $4,130,000 from the prior year, primarily due to the completion of construction on a new corporate-owned restaurant.

The company believes its current cash, positive cash flow from operations, and borrowed funds will be sufficient to fund operations and planned capital expenditures for at least the next 12 months.

CASH FLOWS

Item	Fiscal Year 2024	Fiscal Year 2023
Net cash provided by operating activities	$6,630,000	$8,489,000
Net cash used in investing activities	$(5,141,000)	$(18,559,000)
Net cash used in financing activities	$(5,619,000)	$(6,536,000)
Net (Decrease) Increase in Cash and Cash Equivalents	$(4,130,000)	$(16,606,000)
Cash and Cash Equivalents - Beginning	$25,532,000	$42,138,000
Cash and Cash Equivalents - Ending	$21,402,000	$25,532,000

Capital Expenditures

The company spent $6,047,000 on property, equipment, and construction in progress in fiscal year 2024, primarily for renovations and new restaurant/store openings.

Debt

The company had long-term debt of $21,912,000 as of September 28, 2024, down from $23,128,000 as of September 30, 2023. The company was in compliance with its debt covenants as of the end of fiscal year 2024.

Outlook

The company believes its current cash, positive cash flow, and available financing will be sufficient to fund operations and planned capital expenditures for at least the next 12 months. However, inflation is having a material impact on the company’s operating results, especially rising food, fuel, and labor costs.