Chicago Pizza & Brewery, Inc. Reports a $3,593,000 Profit for Fiscal 2003, and a 36.0% Increase in Revenues to $103.0 Million.Business Editors 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. , Calif.--(BUSINESS WIRE)--Feb. 26, 2004 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. Pizza & Brewery A brewery can be a building or place that produces beer, or a business (brewing company) whose trade is the production and sale of beer. Breweries can take up multiple city blocks, or be a collection of equipment in a homebrewer's kitchen. , Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CHGO) released results for the fourth quarter and year ended Dec. 28, 2003. Highlights for the fourth quarter of 2003, relative to the same quarter last year, were as follows: -- Revenues increased 28.7% to $27.0 million -- BJ's comparable restaurant sales increased 5.1% -- Net income increased to $719,000 from a net loss of $393,000 -- Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of of $0.03 after lawsuit lawsuit: see procedure; tort. settlements -- New restaurant opened in San Jose San Jose, city, United States San Jose (sănəzā`, săn hōzā`), city (1990 pop. 782,248), seat of Santa Clara co., W central Calif.; founded 1777, inc. 1850. , Calif. Revenues totaled $27,008,000 for the fourth quarter of 2003, an increase of 28.7% as compared to the same period of 2002. Revenues increased primarily due to the 2003 openings of restaurants in Clear Lake, Texas, Addison, Texas Addison is a city in Dallas County, Texas (USA). The population was 14,166 at the 2000 census. Addison is a northern suburb of Dallas. The city calls itself the Town of Addison but it is incorporated as a city. , Cerritos Cer·ri·tos A city of southern California, a suburb of Los Angeles. Population: 52,600. , Calif. and San Jose, Calif., as well as a full quarter of operations from restaurants opened during the fourth quarter of 2002 in Lewisville, Texas Lewisville is a city in Denton County and Dallas County, Texas (USA). As of the 2000 census the city had a total population of 77,737. With strong population growth continuing into the new millennium, the U.S. Census Bureau gives a 2006 population estimate of 94,589. and Cupertino, Calif. Also contributing to revenue growth was an increase in BJ's same store sales Same Store Sales A statistic used in retail industry analysis. It compares sales of stores that have been open for a year or more. Notes: This statistic allows investors to determine what portion of new sales has come from sales growth and what portion from the opening of of 5.1% and an increase in Pietro's same store sales of 2.0% for restaurants opened longer than 18 months. These increases were partially offset by the closure of the Pietro's restaurant in Portland, Ore. (Lombard Street Lombard Street, in London, England. It is a street of banks and financial houses that takes its name from the Lombard merchants and moneylenders who settled there in the 13th cent. ) during December 2002 and the BJ's Portland, Ore. restaurant (Stark Street) during June 2003. The Company reported net income of $719,000 (or $0.03 diluted earnings per share) for the fourth quarter of 2003 as compared to a net loss of $393,000 (or $0.02 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. loss per share) for the same period of 2002. Included in fourth quarter 2003 earnings and earnings per share results is a previously announced pre-tax charge of $950,000 for the tentative tentative, adj not final or definite, such as an experimental or clinical finding that has not been validated. settlement of a meal and rest period class action case pending in California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). . The increase in net income quarter over quarter is primarily due to the 28.7% increase in sales combined with a reduction in labor, general and administrative and restaurant opening expenses as a percentage of sales, offset by higher cost of sales and operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. as a percentage of sales. Revenues totaled $102,959,000 for fiscal 2003, an increase of 36.0% compared to fiscal 2002. Revenues increased primarily due to the 2003 openings of restaurants in Clear Lake, Texas, Addison, Texas, Cerritos, Calif. and San Jose, Calif., as well as a full year of operations from restaurants opened during 2002 in Westlake, Calif., Oxnard, Calif., Lewisville, Texas and Cupertino, Calif. Also contributing to revenue growth was an increase in BJ's same store sales of 3.3% and an increase in Pietro's same store sales of 1.7% for restaurants opened greater than 18 months. These increases were partially offset by the closure of the Pietro's restaurant in Portland, Ore. (Lombard Street) during December 2002 and the BJ's Portland, Ore. restaurant (Stark Street) during June 2003. The Company reported net income of $3,593,000 (or $0.18 diluted earnings per share) for fiscal 2003 as compared to net income of $1,667,000 (or $0.09 diluted earnings per share) for fiscal 2002. Included in the 2003 earnings and earnings per share results is a previously announced pre-tax charge of $950,000 for the tentative settlement of a meal and rest period class action case pending in California, or a net $0.03 per diluted share. Paul Motenko, Co-CEO, commented: "We are pleased with our continued growth in 2003 and our development outlook for 2004 and beyond. We are on track to open 6 to 7 additional locations in 2004 and believe our profitability will continue to improve as our restaurants mature and we better leverage our general and administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. . Additionally, we are off to a strong start in 2004 as our comparable store sales have increased over 8% during the first two periods of 2004." 2004 Outlook The Company anticipates 2004 revenues to be between $124 million and $128 million and 2004 diluted earnings per share of $0.30 to $0.33, including an approximate $0.05 per share after-tax gain from the sale of all three Pietro's restaurants and related assets. Expectations are based on 6 to 7 new BJ's Restaurant openings in 2004 and comparable restaurant revenue growth of 3.0% to 4.0%. Chicago Pizza & Brewery will have one additional week in fiscal 2004, a 53-week year versus the standard 52-week year, which is reflected in the guidance issued above. Investor Conference Call and Webcast Chicago Pizza & Brewery, Inc. will conduct a conference call on its fourth quarter earnings release today, Feb. 26, 2004, at 2 p.m. PST PST Paroxysmal supraventricular tachycardia, see there . The number to dial for this teleconference is 888-338-6461. A replay of the conference call will be available through Feb. 29, 2004 by dialing 877-519-4471 and entering passcode 4540862. The Company will also provide an online Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the simulcast, as well as a replay, of the conference call. The link to the simulcast and rebroadcast can be found on the Company's Web site at www.bjsbrewhouse.com. The rebroadcast will be available following the live broadcast and continue for 30 days. Chicago Pizza & Brewery, Inc. currently operates 33 casual dining restaurants, some of which incorporate brewpubs. Twenty-one of the restaurants are located in California, with additional locations in Boulder Boulder, city, United States Boulder, city (1990 pop. 83,312), seat of Boulder co., N central Colo.; inc. 1871. A Rocky Mountain resort and a suburb of Denver, it is the seat of the Univ. of Colorado (1876). , Colo., Chandler Chandler, city (1990 pop. 90,533), Maricopa co., S central Ariz., in the Salt River valley; inc. 1920. It is both a residential community and a center for research and technology. Tourism is also important, and the San Marcos Golf Resort is in Chandler. , Ariz. and Lewisville, Clear Lake, Addison Addison, village (1990 pop. 32,058), Du Page co., NE Ill.; inc. 1884. An industrial suburb of Chicago, it manufactures machinery and plastic items. and Willowbrook, Texas. In addition, the Company operates six restaurants in Oregon Oregon, city, United States Oregon, city (1990 pop. 18,334), Lucas co., NW Ohio, a suburb adjacent to Toledo, on Lake Erie; inc. 1958. It is a port with railroad-owned and -operated docks. The city has industries producing oil, chemicals, and metal products. , three of which are Pietro's (expected to be sold 3/1/04), and has a licensing interest in a BJ's restaurant in Lahaina, Maui, Hawaii. BJ's restaurants feature BJ's award-winning, signature deep-dish pizza, BJ's own hand-crafted beers as well as a wide selection of appetizers, entrees, pastas, sandwiches, specialty salads and desserts. Visit Chicago Pizza & Brewery, Inc. on the Web at http://www.bjsbrewhouse.com. Certain statements in the preceding paragraphs and all other statements that are not purely historical 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. " for purposes of the Securities Act of 1933 and the Securities and 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. , and are intended to be covered by the safe harbors Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. created thereby. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results to be materially different from those projected or anticipated. Factors that might cause such differences include, but are not limited to: (i) the Company's ability to manage growth and conversions, (ii) construction delays, (iii) restaurant and brewery industry competition and other such industry considerations, (iv) marketing and other limitations based on the Company's historic concentration in Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, , (v) consumer trends, (vi) increased food costs and wages, including, without limitation, increases in the minimum wage, (vii) increased energy costs, and (viii) other general economic and regulatory conditions. Further information concerning the Company's results of operations for fourth quarter and fiscal 2003 will be provided in the Company's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filing, to be filed with the Securities and Exchange Commission by March 12, 2004. In addition, the following supplemental information is provided to investors to help gauge the Company's performance and is not indicative of future results. For further information, please contact Robert Curran Robert Franklin Curran (February 10, 1883—1958) was a politician in Manitoba, Canada. He served in the Legislative Assembly of Manitoba from 1927 to 1936. Curran was born in Emerson, Manitoba, and was educated at public schools in the region. of Chicago Pizza & Brewery, Inc. 714-848-3747, ext. 260.
Selected Consolidated Financial Data
(Dollars in thousands except for per share data)
For the Three Periods Ended
December 28, December 29,
Statement of Operations Data: 2003 2002
Revenues $27,008 100.0% $20,992 100.0%
Costs and expenses:
Cost of sales 7,132 26.4 5,417 25.8
Labor and benefits 9,819 36.4 8,200 39.1
Occupancy 2,229 8.3 1,729 8.2
Operating expenses 3,064 11.3 2,285 10.9
General and administrative 1,967 7.3 2,446 11.7
Depreciation and amortization 1,058 3.9 883 4.2
Restaurant opening expense 238 0.9 896 4.3
Restaurant closing expense (25) (0.1) (8) -
Total cost and expenses 25,482 94.4 21,848 104.2
Income from operations 1,526 5.6 (856) (4.2)
Other income (expense):
Interest income, net 99 0.4 103 0.5
Other income (expense), net (605) (2.2) 146 0.7
Total other income (expense) (506) (1.8) 249 1.2
Income (loss) before
income taxes 1,020 3.8 (607) (3.0)
Income tax expense (benefit) 301 1.1 (214) (1.0)
Net income (loss) $719 2.7% $(393) (2.0)%
Net income (loss) per share:
Basic $0.04 $(0.02)
Diluted $0.03 $(0.02)
Weighted average number of shares
outstanding:
Basic 19,427 18,745
Diluted 20,660 19,716
For the Years Ended
December 28, December 29,
Statement of Operations Data: 2003 2002
Revenues $102,959 100.0% $75,705 100.0%
Costs and expenses:
Cost of sales 27,281 26.5 19,241 25.4
Labor and benefits 36,828 35.8 28,057 37.1
Occupancy 7,889 7.7 5,970 7.9
Operating expenses 11,780 11.4 8,361 11.0
General and administrative 8,522 8.3 7,782 10.3
Depreciation and amortization 3,928 3.8 2,714 3.6
Restaurant opening expense 1,467 1.4 1,717 2.3
Restaurant closing expense (25) - (8) 0.0
Total cost and expenses 97,670 94.9 73,834 97.6
Income from operations 5,289 5.1 1,871 2.4
Other income (expense):
Interest income, net 376 0.4 262 0.4
Other income (expense), net (228) (0.2) 414 0.5
Total other income (expense) 148 0.2 676 0.9
Income (loss) before
income taxes 5,437 5.3 2,547 3.3
Income tax expense (benefit) 1,844 1.8 880 1.2
Net income (loss) $3,593 3.5% $1,667 2.1%
Net income (loss) per share:
Basic $0.18 $0.10
Diluted $0.18 $0.09
Weighted average number of shares
outstanding:
Basic 19,422 17,273
Diluted 20,482 18,775
Selected Balance Sheet Information
(Dollars in thousands)
December December
Balance Sheet Data (end of period): 28, 29,
2003 2002
Cash, cash equivalents and short-term investments $26,940 $32,734
Total assets $83,705 $77,849
Total long-term debt, including current portion $153 $561
Shareholders' equity $71,051 $66,616
Reconciliation of Non-GAAP Financial Measures The following net income and earnings per share calculations before the class action settlement accrual accrual, n continually recurring short-term liabilities. Examples are accrued wages, taxes, and interest. has not been calculated in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with accounting principles generally accepted in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . We believe that the presentation of net income (loss) and earnings (loss) per share before the class action settlement accrual provides a useful analysis of our ongoing operating trends and helps investors compare operating performance period to period. (Unaudited, in thousands except per share data)
For the Three For the
Periods Ended Years Ended
December December December December
28, 29, 28, 29,
Statement of Operations
Data: 2003 2002 2003 2002
Net income (loss), as
reported $719 ($393) $3,593 $1,667
Accrual for meal and rest
period settlement 950 950
Tax benefit related to
accrual for meal and rest
period settlement (280)(a) (322)(b)
Net income (loss), excluding
meal and rest period
settlement $1,389 ($393) $4,221 $1,667
Basic net income (loss) per share:
Net income (loss), as
reported $0.04 ($0.02) $0.18 $0.10
Accrual for meal and rest
period settlement 0.05 0.05
Tax benefit related to
accrual for meal and rest
period settlement (0.01)(a) (0.02)(b)
Net income (loss) per share,
excluding meal and rest
period settlement $0.07 ($0.02) $0.22 $0.10
Diluted net income (loss) per share:
Net income (loss), as
reported $0.03 ($0.02) $0.18 $0.09
Accrual for meal and rest
period settlement 0.05 0.05
Tax benefit related to
accrual for meal and rest
period settlement (0.01)(a) (0.02)(b)
Net income (loss) per share,
excluding meal and rest
period settlement $0.07 ($0.02) $0.21 $0.09
(a) represents effective tax rate of 29.5% as reported for fourth
quarter
(b) represents effective tax rate of 33.9% as reported for fiscal year
2003
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