Sonic 2002 Annual Report Download - page 39

Sonic 02 37
Notes to Consolidated Financial Statements
August 31, 2002, 2001 and 2000 (In thousands, except share data)
16. Selected Quarterly Financial Data (Unaudited)
First Quarter Second Quarter Third Quarter Fourth Quarter Full Year
2002 2001 2002 2001 2002 2001 2002 2001 2002 2001
Income statement data:
Company-owned
restaurant sales $ 71,721 $ 55,562 $ 67,355 $ 50,618 $ 92,280 $ 75,270 $ 99,351 $ 86,013 $ 330,707 $ 267,463
Other 15,608 15,462 14,221 12,571 19,011 16,369 20,615 18,773 69,455 63,175
Total revenues 87,329 71,024 81,576 63,189 111,291 91,639 119,966 104,786 400,162 330,638
Company-owned restaurants
operating expenses 54,022 42,178 51,835 38,580 64,972 52,938 71,364 61,642 242,19
3 195,338
Selling, general and
administrative 7,658 6,813 7,786 7,092 8,729 8,109 9,271 8,588 33,444 30,602
Other 8,853 7,264 9,119 7,398 12,321 10,756 11,910 11,673 42,203 37,091
Total expenses 70,533 56,255 68,740 53,070 86,022 71,803 92,545 81,903 317,840 263,031
Income from operations 16,796 14,769 12,836 10,119 25,269 19,836 27,421 22,883 82,322 67,607
Interest expense, net 1,569 1,219 1,517 1,321 1,536 1,540 1,697 1,445 6,319 5,525
Income before income taxes 15,227 13,550 11,319 8,798 23,733 18,296 25,724 21,438 76,003 62,082
Provision for income taxes 5,672 5,047 4,216 3,278 8,841 6,815 9,582 7,986 28,311 23,126
Net income $ 9,555 $ 8,503 $ 7,103 $ 5,520 $ 14,892 $ 11,481 $ 16,142 $ 13,452 $ 47,692 $ 38,956
Net income per share:
Basic $ .24 $ .21 $ .18 $ .14 $ .37 $ .29 $ .40 $ .34 $ 1.19 $ .98
Diluted $ .23 $ .21 $ .17 $ .13 $ .35 $ .27 $ .38 $ .32 $ 1.13 $ .93
Weighted average
shares outstanding:
Basic 39,990 39,576 40,022 39,706 40,298 39,925 40,312 40,187 40,156 39,849
Diluted 41,920 41,399 42,126 41,566 42,430 41,784 42,351 42,178 42,207 41,732
17. Fair Values of Financial Instruments
The following discussion of fair values is not indicative of the overall fair value of the company’s consolidated
balance sheet since the provisions of SFAS No. 107, “Disclosures About Fair Value of Financial Instruments,” do not
apply to all assets, including intangibles.
The following methods and assumptions were used by the company in estimating its fair values of financial
instruments:
Cash and cash equivalents – Carrying value approximates fair value due to the short duration to maturity.
Notes receivable – For variable rate loans with no significant change in credit risk since the loan origination, fair
values approximate carrying amounts. Fair values for fixed rate loans are estimated using discounted cash flow analysis,
using interest rates which would currently be offered for loans with similar terms to borrowers of similar credit quality
and/or the same remaining maturities.
As of August 31, 2002 and 2001, carrying values approximate their estimated fair values.
Borrowed funds – Fair values for fixed rate borrowings are estimated using a discounted cash flow analysis that
applies interest rates currently being offered on borrowings of similar amounts and terms to those currently outstanding.
Carrying values for variable rate borrowings approximate their fair values.
The carrying amounts, including accrued interest, and estimated fair values of the company’s fixed rate borrowings
at August 31, 2002 were $81,513 and $85,697, respectively, and at August 31, 2001 were $81,513 and $81,049,
respectively.
18. Subsequent Events
Subsequent to August 31, 2002, the company, through numerous transactions, has acquired $17.6 million of treasury
stock.