Last Update: 04-Jan-13 07:36 ET
Sonic shares 5% following in line earnings
Sonic (SONC $10.24 -0.50) reported first quarter earnings of $0.11 per share, in-line with the Capital IQ consensus of $0.11, while revenues fell 1.8% year/year to $126 million versus the $126.28 million consensus. For the first fiscal quarter ended November 30, 2012, system-wide same-store sales increased 3.0%, which was comprised of a 4.2% increase at company drive-ins and a 2.9% increase at franchise drive-ins. The outlook for fiscal 2013 anticipates the following elements: Positive same-store sales in the low single digit range; Restaurant-level margins to improve between 50 to 100 basis points; Subsequent to the end of the quarter, legislation was passed that reinstated and extended certain employment tax credits. The company estimates it will realize a tax benefit of $500 thousand to $1 million related to the retroactive portion of the employment tax credit program in the second fiscal quarter and further expects its tax rate to be reduced to the 37% to 38% range in its third and fourth fiscal quarters from the ongoing impact of the reinstated tax credit program; Capital expenditures of $30 to $35 million which includes a partial point-of-sale system implementation in company drive-ins and supply chain management implementation for the system; and Free cash flow of $45 to $50 million for fiscal 2013.
Sonic (SONC $10.24 -0.50) reported first quarter earnings of $0.11 per share, in-line with the Capital IQ consensus of $0.11, while revenues fell