California Pizza Kitchen Announces Financial Results for the First Quarter Ended April 3, 2005; Increases Earnings per Fully Diluted Share Guidance for 2005 to $1.13 to $1.15.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 first quarter ended April 3, 2005. Highlights for the first quarter of 2005 relative to the same quarter last year were as follows: --Total revenues grew 11.9% to $110.3 million --Comparable store sales increased 9.3% --Net income of $4.3 million, or $0.22 per fully 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 $4.2 million, or $0.22 per fully diluted share 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 pleased with our results for the first quarter which are a by-product by·prod·uct or by-prod·uct n. 1. Something produced in the making of something else. 2. A secondary result; a side effect. by-product Noun 1. of a transition that is still underway, but one we believe has a sturdy sturdy neurological disease in sheep caused by the pressure of a Taenia multiceps metacestode. Called also gid. foundation. Our menu innovation, focus on operational excellence and new restaurant performance are central to our strategic framework which stresses discipline, accountability The traceability of actions performed on a system to a specific system entity (user, process, device). For example, the use of unique user identification and authentication supports accountability; the use of shared user IDs and passwords destroys accountability. and quality in everything we do. As we enter the second phase of our transition, we'll we'll Contraction of we will. we'll we will or we shall we'll will ~shall continue to build on this foundation and focus on leveraging our brand and balance sheet to position stockholders for significant 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. value." First quarter average weekly sales for the Company's 141 full service restaurants increased 9.8% to $60,382 compared to $54,982 in the same quarter last year. Average weekly sales for the three months ended April 3, 2005 for the restaurants in the Classes of 2002, 2003 and 2004 increased by 10.7%, 5.3% and 3.6%, respectively, while average weekly sales for the five restaurants in the Class of 2005 were $88,865. Rosenfield and Flax continued, "The overall results in our Class of 2002 and positive comparable sales turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. in our Class of 2003 were particularly gratifying grat·i·fy tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. during the first quarter. As we move forward, our goal will be to continue momentum in these restaurants, which in addition to our growth initiatives, will allow us to deliver sustainable margin leverage." Rosenfield and Flax concluded, "In addition, although we are in the early stages of analyzing the financial performance of our 2004 and 2005 Classes, these restaurants are showing all the day-part and mix characteristics we had hoped for which is very promising." During the first quarter of 2005, the Company opened five new restaurants in Monterey Monterey (mŏntərā`), city (1990 pop. 31,954), Monterey co., W Calif., a port on Monterey Bay; founded 1770, inc. 1850. It is a popular resort, the home of many artists and writers, and one of California's oldest cities. , CA; Bakersfield Bakersfield, city (1990 pop. 174,820), seat of Kern co., S central Calif., at the southern end of the San Joaquin valley; inc. 1898. It is an oil, mining, and agricultural center and one of the fastest-growing U.S. cities. , CA; Warrenville, IL; Huntington Beach Huntington Beach, city (1990 pop. 181,519), Orange co., S Calif., on the Pacific coast, across from Santa Catalina Island, in an oil-producing area; inc. 1909. It manufactures aerospace vehicles, aircraft parts, optical instruments, and heat transfer equipment. , CA and Charlotte, NC. For the second quarter of 2005, the Company expects to add three new restaurants. These activities, together with anticipated comparable store sales growth of 5.0% to 6.0%, are expected to result in earnings per fully diluted share in the range of $0.26 to $0.28. The Company also increased guidance for the full year of 2005 to $1.13 to $1.15. 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 appetizers, 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
adj. 1. Almost exact or correct: the approximate time of the accident. 2. $12.39. The chain operates, licenses or franchises 176 restaurants as of April 28, 2005, of which 146 are company-owned and 30 operate under franchise or license agreements. The Company also owns the LA Food Show concept which operates one location in Manhattan Beach, California Manhattan Beach is a city located in southwestern Los Angeles County, California, USA. The population was 33,852 at the 2000 census. Of a rotating City Council of five members, Jim Aldinger is the current mayor. . California Pizza Kitchen also has a licensing arrangement with Kraft Pizza Company which manufactures and distributes a line of California Pizza Kitchen premium frozen pizzas. 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)
April 3, March 28,
2005 2004
-------------- ------------
(restated)
Statement of Income:
Revenues:
Restaurant sales $109,418 $97,753
Franchise and other revenues 900 877
-------------- ------------
Total revenues 110,318 98,630
Costs and expenses:
Cost of sales 26,957 23,986
Labor 41,115 36,462
Direct operating and occupancy 21,976 19,755
-------------- ------------
Total restaurant operating costs 90,048 80,203
General and administrative 7,509 6,724
Depreciation and amortization 5,552 5,464
Pre-opening costs 1,101 64
Loss on impairment of property and
equipment 26 -
-------------- ------------
Operating income 6,082 6,175
Other income (expense):
Interest income 195 96
Equity in net loss of unconsolidated
joint venture (21) (37)
-------------- ------------
Total other income (expense) 174 59
-------------- ------------
Income before income tax provision 6,256 6,234
Income tax provision (benefit) 1,985 2,018
-------------- ------------
Net income $4,271 $4,216
============== ============
Net income per common share:
Basic $0.22 $0.22
Diluted $0.22 $0.22
Shares used in computing net income per
common share (in thousands):
Basic 19,280 18,993
Diluted 19,596 19,081
Operating Data:
Restaurants open at end of period 175 168
Company-owned restaurants open at
end of period 145 139
Average weekly company-owned full
service restaurant sales $60,382 $54,982
18 month comparable company-owned
restaurant sales increase 9.3% 7.2%
April 3, March 28,
2005 2004
----------- ----------
(restated)
Statement of Income Percentages (1):
Revenues:
Restaurant sales 99.2% 99.1%
Franchise and other revenues 0.8% 0.9%
----------- ----------
Total revenues 100.0% 100.0%
Costs and expenses:
Cost of sales 24.6% 24.5%
Labor 37.6% 37.3%
Direct operating and occupancy 20.1% 20.2%
----------- ----------
Total restaurant operating costs 82.3% 82.0%
General and administrative 6.8% 6.8%
Depreciation and amortization 5.0% 5.5%
Pre-opening costs 1.0% 0.1%
Loss on impairment of property and
equipment 0.0% 0.0%
----------- ----------
Operating income 5.5% 6.3%
Other income (expense):
Interest income 0.2% 0.1%
Equity in net loss of unconsolidated
joint venture 0.0% 0.0%
----------- ----------
Total other income (expense) 0.2% 0.1%
----------- ----------
Income before income tax provision 5.7% 6.3%
Income tax provision (benefit) 1.8% 2.0%
----------- ----------
Net income 3.9% 4.3%
=========== ==========
(1) Percentages are expressed as a percentage of total revenues,
except for restaurant costs and expenses, which are expressed as a
percentage of restaurant sales.
Selected Consolidated Balance Sheet Information
(Dollars in thousands)
Selected Consolidated Balance
Sheet Information April 3, January 2,
2005 2005
---------------------
Cash and cash equivalents $14,068 $17,719
Marketable securities 26,415 26,415
Total assets 252,108 241,804
Shareholders' equity 172,589 167,035
California Pizza Kitchen, Inc.
Units Summary
Total Units at Total Units at
-------------- --------------
First Quarter 2005 Jan. 2, 2005 Opened Closed April 3, 2005
---------------------------------------------- ------- --------------
Company owned full service
domestic 137 5 1(a) 141
Company owned ASAP domestic 4 4
Franchised domestic 20 - - 20
Franchised international 10 - - 10
------------------ -----------------------
Total 171 5 1 175
------------------ -----------------------
(a) Store closed end of business day on January 2, 2005.
To aid in a full understanding of our performance, we provide full
service restaurant class operating data for the 94 stores opened prior
to 2002 (Pre-2002), the 18 stores opened in 2002 (Class of 2002), the
20 stores opened in 2003 (Class of 2003), the four stores opened in
2004 (Class of 2004) and the five stores opened in 2005 (Class of
2005).
California Pizza Kitchen, Inc.
Supplemental Information
Weekly Restaurant Restaurant Restaurant
Sales Sales Operating Operating
First Quarter 2005 # of Average Margin (1) Margin %
Stores (,000) (,000) (2)
---------------------------- ------- ---------- ---------- ----------
Pre-2002
Q1, 2005 94 65,872 79,789 15,730 19.7%
Q1, 2004 94 60,413 73,825 14,983 20.3%
Year over year change 9.0% 8.1% 5.0% (60) bps
Q4, 2004 94 63,917 83,741 18,255 21.8%
Class of 2002
Q1, 2005 18 51,582 12,070 1,935 16.0%
Q1, 2004 18 46,584 10,901 1,511 13.9%
Year over year change 10.7% 10.7% 28.1% 210 bps
Q4, 2004 18 52,060 13,119 2,227 17.0%
Class of 2003
Q1, 2005 20 40,909 10,636 1,147 10.8%
Q1, 2004 22 38,851 11,111 876 7.9%
Year over year change 5.3% -4.3% 30.9% 290 bps
Q4, 2004 22 40,801 12,555 1,639 13.1%
Class of 2004
Q1, 2005 4 52,408 2,725 254 9.3%
Q1, 2004 1 50,574 657 109 16.6%
Year over year change 3.6% 314.8% 133.0% (730) bps
Q4, 2004 4 57,885 2,911 404 13.9%
Class of 2005
Q1, 2005 5 88,865 2,768 198 7.2%
Total full service
Q1, 2005 141 60,382 107,989 19,265 17.8%
Q1, 2004 135 54,982 96,494 17,480 18.1%
Year over year change 9.8% 11.9% 10.2% (30) bps
Q4, 2004 138 58,499 112,326 22,526 20.1%
----------------------
(1) Restaurant operating margin is defined as restaurant sales
less restaurant operating costs.
(2) Restaurant operating margin percentages are expressed as a
percentage of restaurant sales.
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