Nathan's Famous 10-Q: Credit Facility Updates
Ticker: NATH · Form: 10-Q · Filed: Aug 8, 2024 · CIK: 69733
Sentiment: neutral
Topics: 10-Q, credit-facility, subsequent-event
TL;DR
NATHAN'S FAMOUS 10-Q: Credit lines with Citibank updated, rates tied to SOFR/Base Rate.
AI Summary
Nathan's Famous, Inc. filed its 10-Q for the period ending June 30, 2024. The company reported on its financial performance and disclosed a subsequent event on July 10, 2024, related to its credit facilities with Citibank, N.A., including a Term Loan and a Revolving Credit Facility, with interest rates tied to SOFR and Base Rate.
Why It Matters
This filing provides insight into Nathan's Famous's credit arrangements, which are crucial for its operational funding and future expansion plans.
Risk Assessment
Risk Level: low — The filing is a routine quarterly report and does not indicate any immediate or significant financial distress.
Key Numbers
- 6.625 — Interest Rate (Likely related to a debt instrument mentioned in the filing.)
Key Players & Entities
- NATHANS FAMOUS, INC. (company) — Filer
- 20240630 (date) — Period of Report
- 20240808 (date) — Filing Date
- Citibank, N.A. (company) — Lender in credit facilities
- July 10, 2024 (date) — Date of Subsequent Event
FAQ
What is the total outstanding balance on the Term Loan and Revolving Credit Facility as of June 30, 2024?
The filing does not explicitly state the outstanding balances for the Term Loan and Revolving Credit Facility as of June 30, 2024, but details subsequent events related to these facilities on July 10, 2024.
What are the specific terms for the interest rate adjustments on the credit facilities?
The interest rates on the credit facilities are tied to the Secured Overnight Financing Rate (SOFR) and the Base Rate, as indicated by the subsequent event disclosures on July 10, 2024.
Did Nathan's Famous enter into any new credit agreements or amend existing ones during the reporting period?
The filing indicates subsequent events on July 10, 2024, related to its credit facilities with Citibank, N.A., suggesting potential amendments or updates to existing agreements.
What is the fiscal year end for Nathan's Famous?
Nathan's Famous's fiscal year ends on March 30th.
What was the company's financial performance in the quarter ending June 30, 2024?
The 10-Q filing covers the period ending June 30, 2024, but the provided snippet focuses on credit facility details and does not include specific revenue or profit figures for the quarter.
Filing Stats: 4,580 words · 18 min read · ~15 pages · Grade level 15.8 · Accepted 2024-08-08 07:00:46
Filing Documents
- nath20240630_10q.htm (10-Q) — 926KB
- ex_707314.htm (EX-31.1) — 11KB
- ex_707315.htm (EX-31.2) — 12KB
- ex_707316.htm (EX-32.1) — 4KB
- ex_707317.htm (EX-32.2) — 5KB
- 0001437749-24-025270.txt ( ) — 5814KB
- nath-20240630.xsd (EX-101.SCH) — 66KB
- nath-20240630_def.xml (EX-101.DEF) — 386KB
- nath-20240630_lab.xml (EX-101.LAB) — 323KB
- nath-20240630_pre.xml (EX-101.PRE) — 427KB
- nath-20240630_cal.xml (EX-101.CAL) — 46KB
- nath20240630_10q_htm.xml (XML) — 899KB
Financial Statements
Financial Statements. 3 Consolidated Financial Statements Consolidated Balance Sheets – June 30, 2024 (Unaudited) and March 31, 2024 3 Consolidated Statements of Earnings (Unaudited) – Thirteen Weeks Ended June 30, 2024 and June 25, 2023 4 Consolidated Statements of Changes in Stockholders' Deficit (Unaudited) – Thirteen Weeks Ended June 30, 2024 and June 25, 2023 5 Consolidated Statements of Cash Flows (Unaudited) – Thirteen Weeks Ended June 30, 2024 and June 25, 2023 6
Notes to Consolidated Financial Statements
Notes to Consolidated Financial Statements 7 Item 2.
Management's Discussion and Analysis of Financial Condition and Results of Operations
Management's Discussion and Analysis of Financial Condition and Results of Operations. 18 Item 3.
Quantitative and Qualitative Disclosures About Market Risk
Quantitative and Qualitative Disclosures About Market Risk. 26 Item 4.
Controls and Procedures
Controls and Procedures. 27 PART II. OTHER INFORMATION Item 1. Legal Proceedings. 28 Item 1A. Risk Factors. 28 Item 2. Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities. 28 Item 3. Defaults Upon Senior Securities. 28 Item 4. Mine Safety Disclosures. 28 Item 5. Other Information. 28 Item 6. Exhibits. 29
FINANCIAL INFORMATION
PART I. FINANCIAL INFORMATION
Financial Statements
Item 1. Financial Statements. Nathan ' s Famous, Inc. and Subsidiaries CONSOLIDATED BALANCE SHEETS June 30, 2024 and March 31, 2024 (in thousands, except share and per share amounts) June 30, 2024 March 31, 2024 (Unaudited) ASSETS CURRENT ASSETS Cash and cash equivalents (Note E) $ 25,979 $ 21,027 Accounts and other receivables, net (Note G) 20,471 14,731 Inventories 931 842 Prepaid expenses and other current assets (Note H) 1,598 2,176 Total current assets 48,979 38,776 Property and equipment, net of accumulated depreciation of $ 11,893 and $ 11,687 , respectively 2,535 2,673 Operating lease assets (Note Q) 5,852 6,203 Goodwill 95 95 Intangible asset, net (Note I) 652 695 Deferred income taxes 280 275 Other assets 134 141 Total assets $ 58,527 $ 48,858 LIABILITIES AND STOCKHOLDERS' DEFICIT CURRENT LIABILITIES Accounts payable $ 7,046 $ 5,744 Accrued expenses and other current liabilities (Note K) 8,951 7,615 Current portion of operating lease liabilities (Note Q) 1,897 1,887 Deferred franchise fees 322 327 Total current liabilities 18,216 15,573 Long-term debt, net of unamortized debt issuance costs of $ 369 and $ 438 , respectively (Note P) 59,631 59,562 Operating lease liabilities (Note Q) 4,513 4,937 Other liabilities 844 810 Deferred franchise fees 824 899 Total liabilities 84,028 81,781 COMMITMENTS AND CONTINGENCIES (Note R) STOCKHOLDERS' DEFICIT Common stock, $ .01 par value; 30,000,000 shares authorized; 9,374,130 shares issued; and 4,084,615 shares outstanding at June 30, 2024 and March 31, 2024 94 94 Additional paid-in capital 63,124 62,936 Accumulated deficit ( 2,057 ) ( 9,291 ) Stockholders' equity before treasury stock 61,161 53,739 Treasury stock, at cost, 5,289,515 shares at June 30, 2024 and March 31, 2024 ( 86,662 ) ( 86,662 ) Total stockholders' deficit ( 25,501 ) ( 32,923 ) Tota
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 2024 (in thousands, except per share amounts) (Unaudited) NOTE A - BASIS OF PRESENTATION The accompanying consolidated financial statements of Nathan's Famous, Inc. and subsidiaries (collectively "Nathan's," the "Company," "we," "us" or "our") as of and for the thirteen week periods ended June 30, 2024 and June 25, 2023 have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The unaudited financial statements include all adjustments (consisting of normal recurring adjustments) which, in the opinion of management, are necessary for a fair presentation of financial condition, results of operations and cash flows for the periods presented. However, our results of operations are seasonal in nature, and the results of any interim period are not necessarily indicative of results for any other interim period or the full fiscal year. The Company uses a 52-53 week fiscal year ending on the Sunday closest to March 31. The 2025 fiscal year will end on March 30, 2025 and will contain 52 weeks. Certain information and footnote disclosures normally included in financial statements in accordance with GAAP have been omitted pursuant to the requirements of the U.S. Securities and Exchange Commission ("SEC"). Management believes that the disclosures included in the accompanying consolidated interim financial statements and footnotes are adequate to make the information not misleading but should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in Nathan's Annual Report on Form 10-K for the fiscal year ended March 31, 2024 as filed with the SEC on June 12, 2024. Our significant interim accounting policies include the recognition of advertising fund expense in proportion to advertising fund revenue, and the recognition of income taxes using an estimated annual effective tax rate. A summary of the Company's significant