California Pizza Kitchen Announces Financial Results For The Third Quarter Ended October 2, 2005.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 net income for the third quarter and nine months ended October October: see month. 2, 2005. Highlights for the third quarter of 2005 relative to the same quarter last year were as follows: --Total revenues up approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 17.3% to $124.5 million --Comparable restaurant sales increase of 7.1% --Net income of $5.5 million or $0.28 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 $2.5 million or $0.13 per diluted share in the same quarter last year --Net income before impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charges and store closure costs of $6.8 million or $0.34 per diluted share compared to net income of $5.5 million or $0.28 per diluted share in 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 very pleased with our results, both for the quarter and year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. . Specifically, our comparable restaurant sales growth has proven to be consistently robust and, in our view, demonstrates the strength of the CPK CPK creatine kinase. CPK creatine phosphokinase. brand in a somewhat challenging economic environment. We credit our results, in part, to a more rigorous development approach, our June June: see month. menu introductions, and our 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. that encourages dinner business and a more profitable mix. In combination with recent operating improvements in all of our classes, CPK has been able to drive solid profitability throughout the year." Average weekly sales for the Company's 148 full service restaurants increased 7.4% to $63,615 for the third quarter of 2005 compared to $59,237 for the same quarter last year. Rosenfield and Flax continued, "In the second half of 2005, we prioritized focus on leveraging productivity across all restaurant classes and improving our operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: . We achieved this goal in the third quarter and feel confident that we can continue our success as we head toward 2006." Flax and Rosenfield concluded, "Ultimately, CPK is well positioned for future development and our foundation is solidly in place to drive financial performance and shareholder value going forward." During the third quarter of 2005 the Company opened four new full service restaurants in Farmington Hills Far·ming·ton Hills A city of southeast Michigan, an industrial suburb of Detroit. Population: 81,400. , MI, Thousand Oaks Thousand Oaks, residential city (1990 pop. 104,352), Ventura co., S Calif., in a farm area; inc. 1964. Avocados, citrus, vegetables, strawberries, and nursery products are grown. , CA, Riverside Riverside. 1 City (1990 pop. 226,505), seat of Riverside co., S Calif.; inc. 1883. One of the fastest growing U.S. cities in the late 20th cent., it is famous for its orange industry. , CA and Tigard, OR. The Company anticipates opening three new full service restaurants and one ASAP (chat) asap - As soon as possible. in the fourth quarter of 2005. Based on sales trends during the year and the remaining new restaurant openings in 2005, management maintains earnings guidance of $0.30 to $0.31 per diluted share for the fourth quarter ended January January: see month. 1, 2006. These estimates exclude a probable PROBABLE. That which has the appearance of truth; that which appears to be founded in reason. one time, non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. of up to $3.5 million relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc stock options issued prior to the initial public offering in August of 2000. Resolving this matter is likely to require an accounting re-measurement to extend the life of certain pre-IPO pre-IPO An offering of a company's shares prior to the firm's initial public offering. Investing in a pre-IPO tends to be very risky, in part because the planned IPO may never take place. issued stock options. The Company expects to resolve this matter in the fourth quarter of 2005. The Company also announced guidance for fiscal 2006 based on the following assumptions: --Restaurant revenue growth of approximately 15.0% to 16.0% --Eighteen month comparable restaurant sales growth of approximately 5.0% to 6.0% --16 to 18 new full service restaurants for 2006 --Four new ASAP restaurants --Earnings per diluted share of $1.35 to $1.39. This excludes stock-based compensation expense and the impact of the October 6, 2005 lease accounting pronouncement requiring expensing of construction period rent. California Pizza Kitchen, Inc., founded in 1985, is a leading casual dining chain in the premium 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. 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 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. Forward-looking statements include projections of earnings, revenue or other financial items, statements of the plans, strategies and objectives of management for future operations, statements concerning proposed new products or developments, statements regarding future economic conditions or performance, statements of belief and statements of assumptions underlying any of the foregoing. Forward-looking statements may include the words "may", "will", "estimate", "intend", "continue", "believe", "expect", "anticipate" and similar words. Investors are cautioned that forward-looking statements are not guarantees of future performance and, therefore, undue reliance should not be placed on them. Our actual results may and will likely 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 changing consumer preferences and demands, the execution of our expansion strategy, the continued availability of qualified employees and our management team, the maintenance of reasonable food and supply costs, our relationships with our distributors and numerous other matters discussed in the Company's filings with the Securities and Exchange Commission. California Pizza Kitchen 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 Nine Months Ended
October September October September
2, 26, 2, 26,
2005 2004 2005 2004
--------- ---------- --------- ----------
(restated) (restated)
Statement of Income:
Revenues:
Restaurant sales $123,097 $105,262 $350,931 $304,772
Franchise and other revenues 1,371 873 3,301 2,527
--------- ---------- --------- ----------
Total revenues 124,468 106,135 354,232 307,299
Costs and expenses:
Food, beverage and paper
supplies 30,500 26,227 87,206 75,240
Labor 44,126 38,127 128,953 112,155
Direct operating and
occupancy 23,831 21,175 68,704 61,162
--------- ---------- --------- ----------
Cost of sales 98,457 85,529 284,863 248,557
General and administrative 8,632 6,841 23,910 19,904
Depreciation and
amortization 6,560 6,677 18,610 17,695
Pre-opening costs 1,012 222 3,058 286
Loss on impairment of
property and
equipment 1,015 - 1,116 -
Store closure costs 770 2,700 770 2,700
Legal settlement costs - 1,333 - 1,333
--------- ---------- --------- ----------
Total costs and expenses 116,446 103,302 332,327 290,475
Operating income 8,022 2,833 21,905 16,824
Other income (expense):
Interest income 181 157 576 374
Other income - - 1,106 -
Equity in net loss of
unconsolidated Joint
Venture - (33) (22) (109)
--------- ---------- --------- ----------
Total other income 181 124 1,660 265
--------- ---------- --------- ----------
Income before income tax
provision 8,203 2,957 23,565 17,089
Income tax provision 2,656 466 7,553 4,985
--------- ---------- --------- ----------
Net income $5,547 $2,491 $16,012 $12,104
========= ========== ========= ==========
Net income per common share:
Basic $0.29 $0.13 $0.83 $0.64
Diluted $0.28 $0.13 $0.81 $0.63
Shares used in computing net
income per common share (in
thousands):
Basic 19,419 19,072 19,337 19,042
Diluted 20,004 19,182 19,649 19,142
Operating Data:
Restaurants open at end of
period 185 169 185 169
Company-owned restaurants
open at
end of period 154 140 154 140
Average weekly company-owned
full
service restaurant sales $63,615 $59,237 $62,237 $57,148
18 month comparable company-
owned restaurant sales increase 7.1% 8.7% 8.3% 7.8%
Quarter Ended Nine Months Ended
October September October September
2, 26, 2, 26,
2005 2004 2005 2004
------- ---------- ------- ----------
(restated) (restated)
Statement of Income Percentages
(1):
Revenues:
Restaurant sales 98.9% 99.2% 99.1% 99.2%
Franchise and other revenues 1.1% 0.8% 0.9% 0.8%
------- ---------- ------- ----------
Total revenues 100.0% 100.0% 100.0% 100.0%
Costs and expenses:
Food, beverage and paper supplies 24.8% 24.9% 24.8% 24.7%
Labor 35.8% 36.2% 36.7% 36.8%
Direct operating and occupancy 19.4% 20.1% 19.6% 20.1%
------- ---------- ------- ----------
Cost of sales 80.0% 81.3% 81.2% 81.6%
General and administrative 6.9% 6.4% 6.7% 6.5%
Depreciation and amortization 5.3% 6.3% 5.3% 5.8%
Pre-opening costs 0.8% 0.2% 0.9% 0.1%
Loss on impairment of property
and equipment 0.8% 0.0% 0.3% 0.0%
Store closure costs 0.6% 2.5% 0.2% 0.9%
Legal settlement costs 0.0% 1.3% 0.0% 0.4%
------- ---------- ------- ----------
Total costs and expenses 93.6% 97.3% 93.8% 94.5%
Operating income 6.4% 2.7% 6.2% 5.5%
Other income (expense):
Interest income 0.1% 0.1% 0.2% 0.1%
Other income 0.0% 0.0% 0.3% 0.0%
Equity in net loss of
unconsolidated Joint Venture 0.0% 0.0% 0.0% 0.0%
------- ---------- ------- ----------
Total other income 0.1% 0.1% 0.5% 0.1%
------- ---------- ------- ----------
Income before income tax
provision 6.6% 2.8% 6.7% 5.6%
Income tax provision 2.1% 0.4% 2.1% 1.6%
------- ---------- ------- ----------
Net income 4.5% 2.3% 4.5% 3.9%
======= ========== ======= ==========
(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 October 2, 2005 January 2, 2005
Sheet Information
------------------------------------
Cash and cash equivalents $4,097 $17,719
Marketable securities 13,415 26,415
Total assets 258,891 241,804
Stockholders' equity 183,924 167,035
California Pizza Kitchen, Inc.
Units Summary
Total Total
Units Units
at at
------ -------
Third Quarter 2005 July Opened Acquired Closed October
3, 2,
2005 2005
------------------------------- ------ ------ -------- ------ -------
Company-owned full service
domestic 144 4 - - 148
Company-owned ASAP domestic 5 - - - 5
Company-owned LA Food Show 1 - - - 1
Franchised domestic 20 - - 1 19
Franchised international 11 1 - - 12
-------------------------------------
Total 181 5 - 1 185
=====================================
California Pizza Kitchen, Inc.
Supplemental Information
Cost of
(,000) (,000) Sales
Weekly Restaurant Cost of as a
Sales Percentage
Third Quarter 2005 # of Average Sales Sales of
Stores (1) Sales
----------------------------------------------------------------------
Pre-2002 Full Service
Q3, 2005 94 69,307 84,356 65,136 77.2%
Q3, 2004 (restated) 94 64,731 78,436 62,088 79.2%
Year over year change 7.1% 7.5% 4.9% 200 bps
Q2, 2005 94 68,238 83,251 65,333 78.5%
Class of 2002 Full Service
Q3, 2005 18 54,116 12,663 10,663 84.2%
Q3, 2004 (restated) 18 50,899 11,896 10,223 85.9%
Year over year change 6.3% 6.4% 4.3% 170 bps
Q2, 2005 18 53,528 12,525 10,672 85.2%
Class of 2003 Full Service
Q3, 2005 20 46,664 12,133 10,561 87.0%
Q3, 2004 (restated) 22 43,120 12,332 10,831 87.8%
Year over year change 8.2% -1.6% -2.5% 80 bps
Q2, 2005 20 44,627 11,603 10,419 89.8%
Class of 2004 Full Service
Q3, 2005 4 54,483 2,833 2,399 84.7%
Q3, 2004 (restated) 2 54,462 1,136 1,101 96.9%
Year over year change 0.0% 149.4% 117.9% 1,220 bps
Q2, 2005 4 53,471 2,780 2,383 85.7%
Class of 2005 Full Service
Q3, 2005 12 65,011 8,303 7,169 86.3%
Q2, 2005 8 67,663 5,790 5,266 90.9%
ASAP and LA Food Show
Q3, 2005 6 36,020 2,809 2,529 90.0%
Q3, 2004 (restated) 4 28,106 1,462 1,286 88.0%
Year over year change 28.2% 92.1% 96.7% (200) bps
Q2, 2005 6 35,824 2,467 2,284 92.6%
Total restaurants
Q3, 2005 154 62,522 123,097 98,457 80.0%
Q3, 2004 (restated) 140 58,340 105,262 85,529 81.3%
Year over year change 7.2% 16.9% 15.1% 130 bps
Q2, 2005 150 61,661 118,416 96,357 81.4%
(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
Weekly as a
Sales (,000) (,000) Percentage
Year To Date 2005 # of Average Restaurant Cost of of
Stores Sales Sales Sales
(1)
------------------------------------------------------------------
Pre-2002 Full Service
YTD, 2005 94 67,809 247,396 194,529 78.6%
YTD, 2004 (restated) 94 62,648 228,962 181,570 79.3%
Year over year change 8.2% 8.1% 7.1% 70 bps
Class of 2002 Full Service
YTD, 2005 18 53,075 37,259 31,470 84.5%
YTD, 2004 (restated) 18 48,881 34,301 29,554 86.2%
Year over year change 8.6% 8.6% 6.5% 170 bps
Class of 2003 Full Service
YTD, 2005 20 44,067 34,372 30,469 88.6%
YTD, 2004 (restated) 22 40,724 34,941 31,553 90.3%
Year over year change 8.2% -1.6% -3.4% 170 bps
Class of 2004 Full Service
YTD, 2005 4 53,454 8,339 7,253 87.0%
YTD, 2004 (restated) 2 52,706 2,470 2,191 88.7%
Year over year change 1.4% 237.6% 231.0% 170 bps
Class of 2005 Full Service
YTD, 2005 12 68,979 16,860 15,023 89.1%
ASAP and LA Food Show
YTD, 2005 6 33,719 6,705 6,119 91.3%
YTD, 2004 (restated) 4 26,272 4,098 3,689 90.0%
Year over year change 28.3% 63.6% 65.9% (130) bps
Total restaurants
YTD, 2005 154 61,248 350,931 284,863 81.2%
YTD, 2004 (restated) 140 56,259 304,772 248,557 81.6%
Year over year change 8.9% 15.1% 14.6% 40 bps
(1) Cost of sales includes food, beverage & paper supplies, labor,
and direct operating and occupancy costs.
The following reconciliation of net income is provided to assist
the reader with understanding the financial impact of the accelerated
depreciation, severance, impairment charges and store closure costs
during the quarter and year (unaudited, in thousands, except per share
data):
Quarter Ended Nine Months Ended
Oct. 2, Sept. 26, Oct. 2, Sept. 26,
2005 2004 2005 2004
------- ---------- -------- ----------
(restated) (restated)
Net income as reported $5,547 $2,491 $16,012 $12,104
Accelerated depreciation - 1,339 - 1,339
Severance charge - - - -
Impairment of property, plant
and equipment 1,015 - 1,116 -
Store closure costs 770 2,700 770 2,700
Legal settlement costs - 1,333 - 1,333
Income tax benefit (580) (2,401) (613) (2,401)
------- ---------- -------- ----------
Net income excluding
accelerated depreciation,
severance, impairment charges
and
store closure costs $6,752 $5,462 $17,285 $15,075
======= ========== ======== ==========
Basic net income per common
share:
Net income $0.29 $0.13 $0.83 $0.64
Accelerated depreciation - 0.07 - 0.07
Severance charge - - - -
Impairment of property, plant
and equipment 0.05 - 0.06 -
Store closure costs 0.04 0.14 0.04 0.14
Legal settlement costs - 0.07 - 0.07
Income tax benefit (0.03) (0.13) (0.03) (0.13)
------- ---------- -------- ----------
Basic net income excluding
accelerated depreciation,
severance, impairment charges
and
store closure costs $0.35 $0.29 $0.89 $0.79
======= ========== ======== ==========
Diluted net income per common
share:
Net income $0.28 $0.13 $0.81 $0.63
Accelerated depreciation - 0.07 - 0.07
Severance charge - - - -
Impairment of property, plant
and equipment 0.05 - 0.06 -
Store closure costs 0.04 0.14 0.04 0.14
Legal settlement costs - 0.07 - 0.07
Income tax benefit (0.03) (0.13) (0.03) (0.13)
------- ---------- -------- ----------
Diluted net income excluding
accelerated depreciation,
severance, impairment charges
and
store closure costs $0.34 $0.28 $0.88 $0.79
======= ========== ======== ==========
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion