California Pizza Kitchen Announces Financial Results For The Second Quarter Ended July 3, 2005; Increases Earnings Per Diluted Share Guidance for 2005 to $1.16-$1.18.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. -- California Pizza Kitchen California Pizza Kitchen (NASDAQ: CPKI, known within the food industry as CPK) is a casual dining restaurant chain that specializes in California-style pizza. The restaurant was started in 1985 by attorneys Rick Rosenfield and Larry Flax in Beverly Hills, California, , Inc. (Nasdaq:CPKI CPKI California Pizza Kitchen, Inc ), today reported revenues and earnings for the second quarter ended July July: see month. 3, 2005. Highlights for the second quarter of 2005 relative to the same quarter last year were as follows: --Total revenues increased approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 16.5% to $119.4 million --Comparable restaurant sales increase of 8.6% --Net income of $6.2 million, or $0.32 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share compared to net income of $5.4 million, or $0.28 per diluted share for the same quarter last year Rick Rosenfield Rosenfield is a surname and may refer to:
This page or section lists people with the surname Rosenfield. and Larry Lar´ry n. 1. Same as Lorry, or Lorrie. Flax flax, common name for members of the Linaceae, a family of annual herbs, especially members of the genus Linum, and for the fiber obtained from such plants. The flax of commerce (several varieties of L. , co-CEOs of California Pizza Kitchen, Inc., stated, "We are particularly pleased with our second quarter results which were characterized char·ac·ter·ize tr.v. character·ized, character·iz·ing, character·iz·es 1. To describe the qualities or peculiarities of: characterized the warden as ruthless. 2. by continued momentum in comparable restaurant sales, the completion of our short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. infrastructure investments, and solid profitability. We credit the strength and resilience resilience (r  ·zilˑ·yens),n of our brand, our team's ability to execute To run a program, which causes the computer to carry out its instructions. See executable code, instruction and EXE file. execute - execution , and results from the initiatives we've we've Contraction of we have. we've have put in place since our return as co-CEOs two years ago. We look to maintain our momentum in the second half of fiscal 2005 and remain optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op we will achieve our goals. Ultimately, this is reflected in our upward revision (programming) revision - A release of a piece of software which is not a major release or a bugfix, but only introduces small changes or new features. of earnings guidance for the full year." According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. management, two additional factors affected earnings for the second quarter. First, the Company realized approximately $1.1 million, or $0.04 per diluted share, from unredeemed gift certificates taken into income. Second, management completed the accelerated implementation of its new point of sale technology during the quarter which is estimated to have reduced earnings by approximately $900,000 or $0.03 per diluted share. Rosenfield and Flax continued, "Creativity in the kitchen has always been integral to CPK CPK creatine kinase. CPK creatine phosphokinase. , and our recently introduced menu items are being well received. Our expanded salad offerings continue to solidify so·lid·i·fy v. so·lid·i·fied, so·lid·i·fy·ing, so·lid·i·fies v.tr. 1. To make solid, compact, or hard. 2. To make strong or united. v.intr. our industry leading position in this category, and our new appetizers are expected to drive higher average checks, particularly at dinner. Additionally, our new Chipotle chi·pot·le n. A ripe jalapeño pepper that has been dried and smoked for use in cooking. [American Spanish, from Nahuatl xipotli.] Noun 1. Chicken Pizza pizza Food of Neapolitan origin. It consists of a flattened disk of bread dough, typically topped with olive oil, tomatoes, and mozzarella cheese, baked quickly, and served hot. Pizza is eaten throughout Italy, with regional variations in toppings. Pizza came to the U.S. demonstrates our continued innovation and ownership of the premium pizza segment." Average weekly sales for the Company's 144 full service California Pizza Kitchen restaurants increased 9.4% to $62,622 for the second quarter of 2005, compared to $57,229 for the same quarter last year. During the second quarter of 2005, the Company opened three new full service restaurants in Lakewood Lakewood. 1 City (1990 pop. 73,557), Los Angeles co., S Calif., a residential and industrial suburb of Long Beach; inc. 1954. Nearby are extensive aerospace, high-technology, and electronic industries. 2 City (1990 pop. , CA, Gaithersburg, MD, and Los Angeles, CA. Additionally, the Company opened one new prototype Prototype A first or original model of hardware or software. Prototyping involves the production of functionally useful and trustworthy systems through experimentation with evolving systems. ASAP (chat) asap - As soon as possible. in Redondo Beach Redondo Beach (rĭdŏn`dō), city (1990 pop. 60,167), Los Angeles co., S Calif., on the Pacific Ocean; inc. 1892. Once a commercial port for Los Angeles, it is a residential and resort city with a protected harbor and an excellent marina. , CA and acquired the remaining 75% equity in LA Food Show in Manhattan Beach Manhattan Beach, city (1990 pop. 32,063), Los Angeles co., S Calif., on Santa Monica Bay; inc. 1912. It is a residential and beach community with an oil refinery and nearby factories that produce transportation and electrical equipment, computers, and pottery. , CA. For the third quarter of 2005, the Company expects to add four new restaurants. These openings, together with anticipated comparable restaurant sales growth of 5.5% to 6.5%, are expected to result in earnings per diluted share in the range of $0.32 to $0.33. The Company also increased guidance for the full year of 2005 to $1.16-$1.18. California Pizza Kitchen, Inc., founded in 1985, is a leading casual dining chain in the premium pizza segment. The Company's full service restaurants feature an imaginative line of hearth-baked pizzas, including the original BBQ BBQ barbecue Chicken Pizza, and a broad selection of distinctive pastas, salads, 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
California Pizza Kitchen, Inc. can be found on the internet at www.cpk.com. This press release includes certain "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 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. Investors are cautioned that forward-looking statements are not guarantees of future performance and, therefore, undue reliance should not be placed on them. Forward-looking statements can be affected by inaccurate assumptions or by known or unknown risks and uncertainties. Our actual results may differ materially from the expectations referred to herein. Among the key factors that may have a direct bearing on our operating results, performance and financial condition are the execution of our expansion strategy, the continued availability of qualified employees, the maintenance of reasonable food and supply costs and numerous other matters discussed in the Company's filings with the Securities and Exchange Commission. California Pizza Kitchen, Inc. undertakes no obligation to update or alter its forward-looking statements whether as a result of new information, future events or otherwise.
Selected Unaudited Consolidated Financial and Operating Data
(Dollars in thousands, except for per share and operating data)
Quarter Ended Six Months Ended
July 3, June 27, July 3, June 27,
2005 2004 2005 2004
--------- ---------- --------- ----------
(restated) (restated)
Statement of Income:
Revenues:
Restaurant sales $118,416 $101,757 $227,834 $199,510
Franchise and other
revenues 1,030 776 1,930 1,653
--------- ---------- --------- ----------
Total revenues 119,446 102,533 229,764 201,163
Costs and expenses:
Food, beverage and paper
supplies 29,749 25,028 56,706 49,013
Labor 43,712 37,565 84,827 74,027
Direct operating and
occupancy 22,896 20,232 44,872 39,987
--------- ---------- --------- ----------
Cost of sales 96,357 82,825 186,405 163,027
General and administrative 7,769 6,338 15,279 13,063
Depreciation and
amortization 6,498 5,554 12,050 11,018
Pre-opening costs 946 - 2,046 64
Loss on impairment of
property and equipment 75 - 101 -
--------- ---------- --------- ----------
Total costs and expenses 111,645 94,717 215,881 187,172
Operating income 7,801 7,816 13,883 13,991
Other income (expense):
Interest income 200 121 395 217
Other income 1,106 - 1,106 -
Equity in net loss of
unconsolidated Joint
Venture (1) (39) (22) (76)
--------- ---------- --------- ----------
Total other income 1,305 82 1,479 141
--------- ---------- --------- ----------
Income before income tax
provision 9,106 7,898 15,362 14,132
Income tax provision 2,912 2,501 4,897 4,519
--------- ---------- --------- ----------
Net income $6,194 $5,397 $10,465 $9,613
========= ========== ========= ==========
Net income per common share:
Basic $0.32 $0.28 $0.54 $0.51
Diluted $0.32 $0.28 $0.54 $0.50
Shares used in computing
net income per common
share (in thousands):
Basic 19,311 19,061 19,296 19,027
Diluted 19,557 19,175 19,511 19,124
Operating Data:
Restaurants open at end of
period 181 168 181 168
Company-owned restaurants
open at end of period 150 139 150 139
Average weekly company-
owned full service restaurant
sales $62,622 $57,229 $61,522 $56,105
18 month comparable
company-owned restaurant
sales increase 8.6% 7.3% 8.9% 7.3%
Quarter Ended Six Months Ended
July 3, June 27, July 3, June 27,
2005 2004 2005 2004
------- ---------- -------- ----------
(restated) (restated)
Statement of Income
Percentages (1):
Revenues:
Restaurant sales 99.1% 99.2% 99.2% 99.2%
Franchise and other revenues 0.9% 0.8% 0.8% 0.8%
------- ---------- -------- ----------
Total revenues 100.0% 100.0% 100.0% 100.0%
Costs and expenses:
Food, beverage and paper
supplies 25.1% 24.6% 24.9% 24.6%
Labor 36.9% 36.9% 37.2% 37.1%
Direct operating and
occupancy 19.3% 19.9% 19.7% 20.0%
------- ---------- -------- ----------
Cost of sales 81.4% 81.4% 81.8% 81.7%
General and administrative 6.5% 6.2% 6.6% 6.5%
Depreciation and amortization 5.4% 5.4% 5.2% 5.5%
Pre-opening costs 0.8% 0.0% 0.9% 0.0%
Loss on impairment of
property and equipment 0.1% 0.0% 0.0% 0.0%
------- ---------- -------- ----------
Total costs and expenses 93.5% 92.4% 94.0% 93.0%
Operating income 6.5% 7.6% 6.0% 7.0%
Other income (expense):
Interest income 0.2% 0.1% 0.2% 0.1%
Other income 0.9% 0.0% 0.5% 0.0%
Equity in net loss of
unconsolidated Joint Venture 0.0% 0.0% 0.0% 0.0%
------- ---------- -------- ----------
Total other income 1.1% 0.1% 0.6% 0.1%
------- ---------- -------- ----------
Income before income tax
provision 7.6% 7.7% 6.7% 7.0%
Income tax provision 2.4% 2.4% 2.1% 2.2%
------- ---------- -------- ----------
Net income 5.2% 5.3% 4.6% 4.8%
======= ========== ======== ==========
(1) Percentages are expressed as a percentage of total revenues,
except for cost of sales which is expressed as a percentage of
restaurant sales.
Selected Consolidated Balance Sheet Information
(Dollars in thousands)
Selected Consolidated Balance Sheet July 3, January 2,
Information 2005 2005
--------- ----------
Cash and cash equivalents $6,784 $17,719
Marketable securities 17,415 26,415
Total assets 254,264 241,804
Stockholders' equity 179,237 167,035
California Pizza Kitchen, Inc.
Units Summary
Total Total
Units Units
at at
April 3, July 3,
Second Quarter 2005 2005 Opened Acquired Closed 2005
------------------- -------- ------ -------- ------ -------
Company-owned full
service domestic 141 3 - - 144
Company-owned ASAP domestic 4 1 - - 5
Company-owned LA Food Show - - 1 - 1
Franchised domestic 20 - - - 20
Franchised international 10 1 - - 11
-------- ------ -------- ------ -------
Total 175 5 1 - 181
-------- ------ -------- ------ -------
California Pizza Kitchen, Inc.
Supplemental Information
Cost of
Sales
(,000) as a
Weekly (,000) Cost Percentage
# of Sales Restaurant of of
Second Quarter 2005 Stores Average Sales Sales(1) Sales
---------------------------------------------------------------------
Pre-2002 Full Service
Q2, 2005 94 68,238 83,251 65,333 78.5%
Q2, 2004 (restated) 94 62,818 76,701 60,640 79.1%
Year over year change 8.6% 8.5% 7.7% 60 bps
Q1, 2005 94 65,872 79,789 64,059 80.3%
Class of 2002 Full Service
Q2, 2005 18 53,528 12,525 10,672 85.2%
Q2, 2004 (restated) 18 49,163 11,504 9,941 86.4%
Year over year change 8.9% 8.9% 7.4% 120 bps
Q1, 2005 18 51,582 12,070 10,135 84.0%
Class of 2003 Full Service
Q2, 2005 20 44,627 11,603 10,419 89.8%
Q2, 2004 (restated) 22 40,201 11,497 10,487 91.2%
Year over year change 11.0% 0.9% -0.6% 140 bps
Q1, 2005 20 40,909 10,636 9,489 89.2%
Class of 2004 Full Service
Q2, 2005 4 53,471 2,780 2,383 85.7%
Q2, 2004 (restated) 1 52,021 676 542 80.2%
Year over year change 2.8% 311.2% 339.7% (550) bps
Q1, 2005 4 52,408 2,725 2,471 90.7%
Class of 2005 Full Service
Q2, 2005 8 67,663 5,790 5,266 90.9%
Q1, 2005 5 88,865 2,768 2,569 92.8%
ASAP and LA Food Show
Q2, 2005 6 35,824 2,467 2,284 92.6%
Q2, 2004 (restated) 4 26,498 1,379 1,215 88.1%
Year over year change 35.2% 78.9% 88.0% (450) bps
Q1, 2005 4 27,479 1,429 1,324 92.7%
Total restaurants
Q2, 2005 150 61,661 118,416 96,357 81.4%
Q2, 2004 (restated) 139 56,344 101,757 82,825 81.4%
Year over year change 9.4% 16.4% 16.3% - bps
Q1, 2005 145 59,452 109,417 90,047 82.3%
(1) Cost of sales includes food, beverage & paper supplies, labor,
and direct operating and occupancy costs
California Pizza Kitchen, Inc.
Supplemental Information
Cost of
Sales
(,000) as a
Weekly (,000) Cost Percentage
# of Sales Restaurant of of
Year To Date 2005 Stores Average Sales Sales(1) Sales
--------------------------------------------------------------------
Pre-2002 Full Service
Q2, 2005 94 67,059 163,040 129,392 79.4%
Q2, 2004 (restated) 94 61,615 150,526 119,482 79.4%
Year over year change 8.8% 8.3% 8.3% - bps
Class of 2002 Full Service
Q2, 2005 18 52,555 24,596 20,807 84.6%
Q2, 2004 (restated) 18 47,874 22,405 19,331 86.3%
Year over year change 9.8% 9.8% 7.6% 170 bps
Class of 2003 Full Service
Q2, 2005 20 42,768 22,239 19,907 89.5%
Q2, 2004 (restated) 22 39,526 22,609 20,722 91.7%
Year over year change 8.2% -1.6% -3.9% 220 bps
Class of 2004 Full Service
Q2, 2005 4 52,939 5,506 4,855 88.2%
Q2, 2004 (restated) 1 51,297 1,334 1,090 81.7%
Year over year change 3.2% 312.7% 345.4% (650) bps
Class of 2005 Full Service
Q2, 2005 8 73,321 8,558 7,853 91.8%
ASAP and LA Food Show
Q2, 2005 6 32,234 3,895 3,591 92.2%
Q2, 2004 (restated) 4 25,355 2,636 2,402 91.1%
Year over year change 27.1 47.8% 49.5% (110) bps
Total restaurants
Q2, 2005 150 60,580 227,834 186,405 81.8%
Q2, 2004 (restated) 139 55,220 199,510 163,027 81.7%
Year over year change 9.7% 14.2% 14.3% (10) bps
(1) Cost of sales includes food, beverage & paper supplies, labor,
and direct operating and occupancy costs
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