Chicago Pizza & Brewery Inc. Reports a $736,000 Profit for the First Quarter of 2002 and a 13% Increase in Revenues.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)--May 6, 2002 Chicago 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:CHGO), released results for the first quarter ended March 31, 2002. Revenues totaled $17,369,000 for the first quarter of 2002, an increase of 13% as compared with the first quarter of 2001. Contributing to the increase in revenues was the opening of restaurants in Irvine, Calif. in August 2001 and 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. in October 2001. These new restaurants provided $2,392,000 in revenues during the first quarter of 2002. Also contributing to the revenue growth was an increase in 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 $405,000 or 3.1%. These increases were offset by the sale or closure of three 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. , the sale of the Hawaii joint venture in 2001 and the closure of the Pietro's restaurant in Eugene, Ore. in February 2002. Store level profits (income from operations plus restaurant opening expenses plus general and administrative expenses) increased to $2,744,000 in 2001 as compared with $2,370,000 in 2001. The company reported net income of $736,000 (or $0.06 basic earnings per share) for the first quarter of 2002 as compared with net income of $763,000 (or $0.10 basic earnings per share) for the first quarter of 2001. This decrease is primarily due to increases in general and administrative expenses as the company continued to invest in infrastructure to support growth. The increase in the weighted average number of shares outstanding of 4,656,649 from March 31, 2001 to March 31, 2002 contributed to the decrease in basic earnings per share. Per Paul Motenko, Co-CEO: "We are pleased with the significant improvement of our store level profitability and revenue results for this quarter. In the first quarter of 2002, we hired a new chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. and chief financial officer to support the planned growth strategy. "Additionally, the company developed a second opening team to facilitate the opening of at least four new stores in the last half of 2002. These changes have affected 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. profitability, however we expect this investment will have a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. effect on the company's continued growth and 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. profits." Jerry Hennessy Jeremiah Joseph Hennessy (February 22, 1926 - November 3, 2000) was an American football end in the National Football League for the Chicago Cardinals and the Washington Redskins. He played college football for Santa Clara University. , Co-CEO, added: "The two restaurants we opened last year have exceeded our expectations and continue to perform very well. In addition, the more established restaurants are continuing to generate increasing revenues and profits. We are looking forward to our restaurant openings scheduled for the last half of this year and are hopeful that these new units will be as successful as the existing ones." The company received cash proceeds of approximately $35,936,000 from the exercise of approximately 7,349,000 redeemable Redeemable Eligible for redemption under the terms of an indenture. warrants in 2002. Chicago Pizza & Brewery operates 26 casual dining restaurants, some of which incorporate brewpubs. Sixteen of the restaurants are located 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, , 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., and Chandler. In addition, the company operates eight restaurants in Oregon, four of which are Pietro's pizzerias, and has a licensing interest in a BJ's restaurant in Lahaina, Maui. BJ's restaurants offer customers moderate prices and tremendous value on an incredible menu that includes deep-dish Chicago-style pizza Chicago-style pizza is a specific variety of pizza. Pizza is traditionally considered to be a type of hearth cake such as focaccia. The Chicago-style pizza shares more in common with a casserole, such as lasagna. , as well as sandwiches, salads, fabulous desserts, critically acclaimed ac·claim v. ac·claimed, ac·claim·ing, ac·claims v.tr. 1. To praise enthusiastically and often publicly; applaud. See Synonyms at praise. 2. hand-crafted beers and more. Visit Chicago Pizza & Brewery on the Web at http://www.bjsbrewhouse.com. The information presented herein contains 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 Section 27A of the Securities Act of 1933, 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. , which 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. The company's results may differ significantly from the results indicated by such forward-looking statements. 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 and Oregon, (v) consumer trends, (vi) increased food costs and wages, including, without limitation, the recent increase in the minimum wage, (vii) increased energy costs 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). and (viii) other general economic and regulatory conditions. Further information concerning the company's results of operations for the first quarter of 2002 will be provided in the company's Form 10-Q Form 10-Q See 10-Q. filing, to be filed with the Securities and Exchange Commission by May 15, 2002. In addition, the supplemental sales information is provided to investors to help gauge the company's performance and is not indicative of future results.
Selected Unaudited Consolidated Financial Data
(Dollars in thousands, except for per share data)
For the Three Months Ended
March 31,
Statement of Income Data: 2002 2001
Revenues $17,369 100.0% $15,369 100.0%
Costs and expenses:
Cost of sales 4,468 25.7 4,077 26.5
Labor and benefits 6,341 36.5 5,558 36.2
Occupancy 1,383 7.9 1,195 7.8
Operating expenses 1,851 10.7 1,655 10.8
General and
administrative 1,609 9.3 982 6.4
Depreciation and
amortization 582 3.4 514 3.3
Restaurant opening
expense 12 - 10 0.1
Total cost and
expenses 16,246 93.5 13,991 91.1
Income from operations 1,123 6.5 1,378 8.9
Other income (expense):
Interest income 31 0.2 1 -
Interest expense (79) (0.5) (157) (1.0)
Other income
(expense), net 59 0.3 (2) -
Total other income
(expense) 11 0.0 (158) (1.0)
Income before minority interest
and income tax expense 1,134 6.5 1,220 7.9
Minority interest in
partnership - - (7) -
Income before income
tax expense 1,134 6.5 1,213 7.9
Income tax expense 398 2.3 450 2.9
Net income $736 4.2% $763 5.0%
Net income per share:
Basic $0.06 $0.10
Diluted $0.06 $0.10
Weighted average number of shares outstanding:
Basic 12,314,970 7,658,321
Dilutive 12,922,546 7,941,216
Selected Unaudited Balance Sheet Information
(Dollars in thousands)
March 31, Dec. 31,
Balance Sheet Data (end of period): 2002 2001
Cash and cash equivalents $12,036 $8,903
Total Assets $43,360 $40,255
Total long-term debt, including
current portion $4,044 $4,345
Shareholders' equity $31,851 $28,095
The following unaudited proforma balance sheet reflects the
exercise of approximately 6,736,000 redeemable warrants, which were
exercised between April 1, 2002 and April 8, 2002, and the pay-off of
the term loan and related interest rate swap agreement, as if these
transactions had occurred as of March 31, 2002.
Selected Unaudited Proforma Balance Sheet Information
(Dollars in thousands)
Proforma Balance Sheet Data March 31, 2002
(end of period): Historical Proforma
Cash and cash equivalents $12,036 $41,746
Total Assets $43,360 $72,070
Total long-term debt, including
current portion $ 4,044 $ 911
Shareholders' equity $31,851 $64,787
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