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The following is an excerpt from a 10-Q SEC Filing, filed by INTERNATIONAL DAIRY QUEEN INC on 10/10/1997.
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INTERNATIONAL DAIRY QUEEN INC - 10-Q - 19971010 - FINANCIAL_STATEMENTS

INTERNATIONAL DAIRY QUEEN, INC.
CONSOLIDATED BALANCE SHEET
(Condensed and in Thousands)

(Unaudited)

                                                    August 29,      November 30,
ASSETS                                                 1997             1996
------                                              ----------      ------------
Current Assets:

   Cash and cash equivalents and
      marketable securities                          $ 61,844         $ 41,483
   Receivables--net                                    47,372           36,512
   Inventories                                          6,118            6,511
   Other current assets                                 4,302            4,430
                                                     --------         --------
         Total current assets                         119,636           88,936

Notes receivable and other--net                        27,769           23,340

Other revenue-producing assets--net:
   Franchise rights and goodwill                       97,369           98,762
   Rental properties                                    4,972            4,471
   Miscellaneous                                            7               12
                                                     --------         --------

         Total other revenue-producing assets         102,348          103,245

Property, plant and equipment--net                     12,706           13,913
                                                     --------         --------
                                                     $262,459         $229,434
                                                     ========         ========

LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current liabilities:

   Accounts payable                                  $ 16,340         $ 16,000
   Accrued liabilities                                 16,091           11,086
   Committed advertising                                3,559            1,963
   Current maturities of long-term debt                10,521           10,849
                                                     --------         --------

          Total current liabilities                    46,511           39,898

Deferred income taxes                                  14,920           14,920
Long-term debt                                          3,180            3,543
Other non-current liabilities                           1,983            2,241
Minority interest in subsidiaries                         612              722
Common stock and other stockholders' equity           195,253          168,110
                                                     --------         --------
                                                     $262,459         $229,434
                                                     ========         ========

See accompanying notes.


INTERNATIONAL DAIRY QUEEN, INC.
CONSOLIDATED STATEMENT OF INCOME
(Condensed and in Thousands, Except Per Share Amounts)

(Unaudited)

                                                       Nine Months Ended             Third Quarter Ended
                                                    -----------------------       ------------------------
                                                    August 29,   August 30,       August 29,    August 30,
                                                       1997         1996             1997         1996
                                                    ----------   ----------       ----------    ----------
Operating Revenues:
   Net Sales                                         $242,371      $244,450         $ 93,070     $ 94,730
   Sales by company-operated restaurants               26,416        19,885            9,881        9,438
   Service Fees                                        45,888        44,347           19,202       18,370
   Franchise sales and other fees                       6,790         7,058            2,798        2,977
   Real estate finance and rental income                6,321         5,918            2,156        1,969
   Other                                                4,568         1,071              474          447
                                                     --------      --------         --------     --------
                                                      332,354       322,729          127,581      127,931

Operating Expenses:
   Cost of Sales                                      217,935       220,530           84,193       85,529
   Cost of Sales: company-operated restaurants         23,581        17,430            8,572        8,194
   Expenses applicable to real estate finance
        and rental income                               5,880         5,517            1,987        1,811
    Selling, general and administrative                35,711        34,442           11,873       12,069
                                                     --------      --------         --------     --------
                                                      283,107       277,919          106,625      107,603
                                                     --------      --------         --------     --------

Operating Income                                       49,247        44,810           20,956        20,328

Net Interest Income                                     3,212         1,685            1,337          531

Minority interest in earnings of consolidated
   subsidiaries and joint ventures                       (758)         (893)            (290)        (462)
                                                     --------      --------         --------     --------

Income before income taxes                             51,701        45,602           22,003       20,397
Provision for income taxes                             20,320        17,920            8,650        8,010
                                                     --------      --------         --------     --------

Net income                                           $ 31,381      $ 27,682         $ 13,353     $ 12,387
                                                     ========      ========         ========     ========

Earnings per common and common equivalent
   shares                                            $   1.41      $   1.22         $    .60     $    .55
                                                     ========      ========         ========     ========

Average common and common equivalent
   shares outstanding                                  22,264        22,773           22,261       22,395
                                                     ========      ========         ========     ========

See accompanying notes.


INTERNATIONAL DAIRY QUEEN, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(Condensed and in Thousands)

(Unaudited)

                                                          Nine Months Ended
                                                       ------------------------
                                                       August 29,    August 30,
                                                          1997          1996
                                                       ----------    ----------
Net cash provided by operating activities               $ 23,225       $ 27,763

Investing Activities:

   Net investments in marketable securities               (1,283)        (2,559)
   Net proceeds from sale of business                      5,945             --
   Cost of acquisitions, net of cash acquired                ---         (5,483)
   Net advances to operators for store renovations
      and equipment                                       (7,599)          (728)
   Net capital expenditures                               (2,971)        (3,575)
   Purchase of franchise rights and goodwill              (1,455)        (3,141)
   Other                                                      12             62
                                                        --------       --------

Cash flows used in investing activities                   (7,351)       (15,424)

Financing Activities:

   Purchase and retirement of common shares               (7,593)       (14,703)
   Proceeds from the Exercise of
      Incentive Stock Options                              3,686          1,428
   Principal payments on long-term debt                   (1,057)          (810)
   Other                                                      79           (308)
                                                        --------       --------

Cash flows used in financing activities                   (4,885)       (14,393)

Effect of exchange rate changes on cash                      (72)           (17)
                                                        --------       --------

Net increase/(decrease) in cash and cash equivalents      10,917         (2,071)
Cash and cash equivalents at beginning of year            38,385         34,699
                                                        --------       --------

Cash and cash equivalents at end of period              $ 49,302       $ 32,628
                                                        ========       ========

See accompanying notes.


INTERNATIONAL DAIRY QUEEN, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

The interim financial statements included herein have been prepared by the Company without audit, but include all adjustments which are of a normal recurring nature and which the Company believes are necessary for a fair presentation of its condensed consolidated balance sheet as of August 29, 1997 and the condensed consolidated statements of income for the three-month and nine-month periods ended August 29, 1997 and August 30, 1996 and the condensed consolidated statements of cash flows for the nine-month periods ended August 29, 1997 and August 30, 1996. The condensed financial statements do not include all disclosures required under generally accepted accounting principles since certain footnote information has been omitted. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's Annual Report and Form 10-K for the year ended November 30, 1996.

On March 31, 1997, the Company sold its 60% interest in Firstaff, Inc. Approximately 9(cent)after tax, of earnings per common share for the nine-month period ended August 29, 1997, resulted from this transaction.

Earnings per common share amounts are based on the weighted average number of common and common equivalent shares outstanding during each period. In February 1997, the Financial Accounting Standards Board issued Statement No. 128, EARNINGS PER SHARE. Effective for its quarter ending February 28, 1998, the Company will be required to change the method currently used to compute earnings per share and to restate all prior periods. Under the new requirements, the dilutive effect of stock options will be excluded from the calculation of primary earnings per share. The effect of Statement 128 on the calculation of primary and fully diluted earnings per share for the quarters and nine-month periods ended August 29, 1997 and August 30, 1996, is not expected to be significant.

The Company's business is seasonal in nature, and the results of operations for the period ended August 29, 1997, may not be indicative of the results for the full year.


INTERNATIONAL DAIRY QUEEN, INC.

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