Briazz, Inc. Reports First Quarter 2002 Results; Company Anticipates Becoming EBITDA Positive During Second Half of Year.Business Editors SEATTLE--(BUSINESS WIRE)--May 15, 2002 Briazz Briazz was a Seattle based sandwich restaurant chain founded in 1995. At one time its stores reached across America as far as Chicago and Los Angeles.[1] In June, 2004, Briazz filed for Chapter 11 bankruptcy protection. , Inc. (Nasdaq:BRZZ) today reported first quarter financial results for the period ended March 31, 2002. Briazz reported a net loss of $2.19 million, or a loss of $0.37 per share, versus a net loss of $1.31 million, or $926.63 per share, in the first quarter of last year. The Company's initial public offering in May 2001 caused a significant change in the share base. The net loss reflects lower office building occupancy Gaining or having physical possession of real property subject to, or in the absence of, legal right or title. In a fire insurance policy, for example, the term occupancy in the vicinity of our cafes, slower foot traffic in cafes, and a weakened weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. economy. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become loss for
the period increased to $1.42 million from $0.68 million in first
quarter 2001 and was on the low end of guidance previously given. The
company, however, remains on target to become EBITDA positive during the
later part of fiscal 2002.
Revenue for the first quarter was $7.44 million, compared to $8.26 million during the same period last year, a decrease of $0.82 million or 10 percent. Retail sales decreased by $0.48 million, or 8.2 percent, from $5.85 million to $5.38 million. This decrease was primarily due to lower office occupancy rates Noun 1. occupancy rate - the percentage of all rental units (as in hotels) are occupied or rented at a given time pct, per centum, percent, percentage - a proportion in relation to a whole (which is usually the amount per hundred) and the closure of one store in Seattle Seattle (sēăt`əl), city (1990 pop. 516,259), seat of King co., W Wash., built on seven hills, between Elliott Bay of Puget Sound and Lake Washington; inc. 1869. , but offset by the opening of two stores late in the first quarter. Same-store sales Same-store sales is a business term which refers to the revenue generated by one of a retail chain's specific outlets during a certain period of time (often a fiscal quarter or a particular shopping season), compared to an identical period in the past, usually in the previous year. (comps) in the first quarter decreased to $4.91 million from $5.75 million in the same period last year, or a loss of 14.6 percent, but showed an improvement from a loss of 17.5 percent for fourth quarter 2001, adjusted for the year's 53rd week. Branded sales decreased by $0.35 million or 14.4 percent, to $2.1 million from $2.4 million in the same period last year. This decline was primarily due to a decrease or discontinuation dis·con·tin·u·a·tion n. A cessation; a discontinuance. Noun 1. discontinuation - the act of discontinuing or breaking off; an interruption (temporary or permanent) discontinuance of sales to certain wholesale partnerships. Looking forward to the second quarter of 2002, Briazz foresees sales falling between $8.2 million to $8.4 million. The Company also anticipates an EBITDA loss between $1.2 million and $1.4 million for the second quarter this year. Briazz recently opened a cafe at 301 Howard Howard, English noble family. Landowners in Norfolk from the 13th cent., the Howards obtained the duchy of Norfolk through the marriage of Sir Robert Howard to Margaret Mowbray, daughter of Thomas Mowbray, 1st duke of Norfolk. in San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden and a cafe at Bishop Ranch ranch, large farm devoted chiefly to raising and breeding cattle, horses, sheep, and goats. The cattle ranch was introduced from Latin America to Texas and the plains of the W United States and Canada. in San Ramon, California San Ramon is a city in Contra Costa County, California, United States. It is a part of the San Francisco Bay Area. Since 1980, the population of San Ramon has increased by over 128% from 22,356 to 51,027 in 2005. . Both cafes enjoyed successful openings and continue to demonstrate the power and relevance of the Briazz brand. The two new cafe openings represent three out of six cafes scheduled to open during 2002. The addition of new cafes further leverages Briazz's central kitchen model. "The Company is working on partnerships with select businesses and grocery chains to grow the branded sales division of the business. We believe that the product lines we have developed meet the specific needs of this market opportunity. Together with the company's strategy for store openings, these partnerships will enable the company to materially grow sales, allow our central kitchen concept to be used with maximum efficiency, and serve as the catalyst catalyst, substance that can cause a change in the rate of a chemical reaction without itself being consumed in the reaction; the changing of the reaction rate by use of a catalyst is called catalysis. for change that will bring us to long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. profitability. These initiatives are also the foundation on which we will become EBITDA positive in the second half of the year," Alhadeff said. "We are on target to open a total of five new stores by mid 2002, with a sixth opening during the second half of the year, and continue to take a prudent stance in opening new cafes to ensure that new locations will have high foot traffic in strongly populated pop·u·late tr.v. pop·u·lat·ed, pop·u·lat·ing, pop·u·lates 1. To supply with inhabitants, as by colonization; people. 2. office buildings or complexes. In addition, despite the decline in downtown Downtown (called a "city centre" in British English) is a term used in North America when referring to a city's core, usually both in a geographical and commercial / community sense. office occupancy, we have been able to maintain our box lunch and catering sales volumes at a slightly higher level than Q1 last year, due to the broad reach of this business segment," he said. "We continue to introduce new, hot-food offerings in select cafes, which is proving to be popular and profitable. These hot food offerings are fast becoming customer favorites Another term for bookmarks, which was popularized by Microsoft's Internet Explorer browser. See favicon and Internet Explorer. . The merchandising merchandising Element of marketing concerned especially with the sale of goods and services to customers. One aspect of merchandising is advertising, which aims to capture the interest of the segment of the population most likely to buy the product. of our hot food in newly-designed cafes has resulted in those cafes generating greater sales per occupant occupant n. 1) someone living in a residence or using premises, as a tenant or owner. 2) a person who takes possession of real property or a thing which has no known owner, intending to gain ownership. (See: occupancy) than in our older cafes. We remain dedicated to improving sales and preserving cash as we continue to prudently pru·dent adj. 1. Wise in handling practical matters; exercising good judgment or common sense. 2. Careful in regard to one's own interests; provident. 3. Careful about one's conduct; circumspect. grow the Briazz brand throughout our markets," Alhadeff said. Briazz serves its customers through two distinct business segments. Approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 72 percent of revenue comes from Briazz cafes and approximately 28 percent comes from relationships with branded sales accounts such as box lunch, corporate catering, and wholesale to grocery stores. The Company currently operates a total of 45 cafes in Seattle, San Francisco, Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. and Chicago Chicago, city, United States Chicago (shĭkä`gō, shĭkô`gō), city (1990 pop. 2,783,726), seat of Cook co., NE Ill., on Lake Michigan; inc. 1837. . Briazz will host a conference call to discuss first quarter results and guidance for the second quarter today, May 15, at 1:30 p.m. Pacific Time (3:30 p.m. Central Time). About Briazz With its first cafe opened in Seattle in 1995, Briazz now operates 45 cafes near heavy concentrations of office buildings in Chicago, Los Angeles, San Francisco and Seattle. Providing gourmet foods to on-the-go consumers through company-operated cafes, box lunch delivery, corporate accounts and selected wholesale accounts, Briazz features high quality, high taste sandwiches, soups A list of different types of soup/stew. Broths (stocks, bouillons) Strained liquid from cooking things in water Consommés Clarified meat or fish broth
Cooking:
This press release contains statements that may constitute "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. by the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such statements include comments regarding the ability and anticipated timing for the company to achieve positive cash flow and projections regarding future sales, store openings, office occupancy, results or success of particular segments or undertakings and the future rate of growth of Briazz. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-looking statements include, without limitation, fluctuation Fluctuation A price or interest rate change. of the company's operating results, the ability to compete successfully, office occupancy, the ability of the company to maintain current cafe locations and secure new ones, food and labor costs, operation in only four geographic areas and reliance upon distributors and wholesale customers. For additional factors that may cause actual results to differ materially from those contemplated by such forward-looking statements, please see the "Risk Factors" described in Exhibit 99.1 to the company's Report on Form 10-Q Form 10-Q See 10-Q. , filed on May 151, 2002, and in other filings on file with the SEC, which Risk Factors are incorporated herein as though fully set forth. The company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results. CHARTS TO FOLLOW
BRIAZZ, INC.
STATEMENTS OF OPERATIONS
(in thousands, except share data)
Thirteen weeks ended
--------------------------
March 31, April 1,
2002 2001
----------- -----------
(unaudited)
Sales
Retail $ 5,376 $ 5,854
Branded Sales 2,062 2,409
----------- -----------
Total Sales 7,438 8,263
----------- -----------
Operating Expenses
Cost of food and packaging 2,813 3,165
Occupancy expenses 996 932
Labor expenses (including amortization
of deferred stock compensation
of $0 for 2002 and $46 for 2001) 2,726 2,763
Depreciation and amortization 788 606
Other operating expenses 453 435
General and administrative expenses
(including amortization of deferred
stock compensation of $87 for 2002
and $22 for 2001) 1,851 1,651
Loss on sale of assets 2 --
Provision for asset impairment and store
closure 16 --
----------- -----------
Total operating expenses 9,645 9,552
----------- -----------
Loss from operations (2,207) (1,289)
----------- -----------
Other (expense) income
Interest and other expense (10) (48)
Interest and other income 32 26
----------- -----------
22 (22)
----------- -----------
Net loss (2,185) (1,311)
Accretion of dividends/amortization
of discount on preferred stock -- (1,054)
----------- -----------
Net loss attributable to common
stockholders $ (2,185) $ (2,365)
=========== ===========
Basic and diluted net loss per share $ (0.37) $ (926.63)
=========== ===========
Weighted-average shares used in
computing basic and diluted net loss
per share 5,831,370 2,552
=========== ===========
The accompanying notes are an integral part of these financial
statements.
BRIAZZ, INC.
BALANCE SHEETS
(in thousands, except share data)
March 31, December 30,
2002 2001
----------- -----------
(unaudited)
Assets
Current assets
Cash and cash equivalents $ 3,591 $ 6,193
Accounts receivable, net of allowance
of $44 (2002) and $104 (2001) 656 472
Inventory 520 507
Prepaid expenses and other current
assets 746 447
Current portion of restricted
certificates of deposit 102 149
Total current assets 5,615 7,768
Property and equipment, net 13,190 13,555
Restricted certificates of deposit,
net of current portion 421 453
Deposits and other assets 181 177
----------- -----------
Total assets $ 19,407 $ 21,953
=========== ===========
Liabilities and Stockholders' Equity
Current liabilities
Bank overdraft $ 527 $ 754
Current portion of long-term debt 97 138
Accounts payable 1,381 1,322
Accrued compensation 755 996
Accrued and other liabilities 475 492
----------- -----------
Total current liabilities 3,235 3,702
----------- -----------
Long-term debt, net of current portion 335 334
----------- -----------
Commitments and contingencies
Stockholders' equity
Common stock, no par value; 100,000,000
shares authorized; 5,847,310 (2002) and
5,824,993 (2001) shares issued and
outstanding 73,765 73,746
Additional paid-in capital 209 209
Deferred stock compensation (894) (980)
Accumulated deficit (57,243) (55,058)
----------- -----------
Total stockholder' equity 15,837 17,917
----------- -----------
Total liabilities and
stockholders' equity $ 19,407 $ 21,953
=========== ===========
The accompanying notes are an integral part of these financial
statements.
|
|
||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion