Chicago Pizza & Brewery Inc. announces 201 percent increase in revenues and 13 percent increase in same store sales in 1996 as compared to the prior year.MISSION VIEJO Mission Vi·e·jo A community of southern California southeast of Irvine. It is mainly residential. Population: 96,300. , Calif.--(BUSINESS WIRE)--March 31, 1997--Chicago Pizza & Brewery 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 and CHGOW) released results for the fourth quarter and year ended Dec. 31, 1996. Total revenues increased 289 percent for the fourth quarter and 201 percent for the year compared with the same periods in 1995. Revenues totaled $19,865,000 for the year and $5,547,000 for the fourth quarter of 1996. While the increase in total revenue for 1996 was primarily due to the purchase of 19 stores in the Northwest in March 1996, revenues for the company's California and Hawaii stores, which operate under the "BJ's Pizza & Grill" or "BJ's Pizza, Grill & Brewery" name, had 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 increases of 13.3 percent for the year of 1996 compared with 1995 for stores open the entire comparable periods. Also contributing to the increase in revenue was the opening of a "BJ's Pizza & Grill" in Westwood Village (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. ), Calif., in March 1996 and the opening of a "BJ's Pizza, Grill & Brewery" in Brea, Calif., in April 1996. The 10,000 square foot Brea restaurant and brewery, which was open for nine months during 1996, and the 2,450 square foot Westwood restaurant, which was open for nine and one-half months during 1996, together contributed 1996 sales of over $3.3 million. The company's net loss for 1996 was $2,289,000 compared with a 1995 net loss of $1,606,000. Contributing to the 1996 loss were several significant non-recurring expenses totaling $925,000, including $390,000 in debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay costs and $188,000 in non-cash interest expense, both of which were related to Convertible Notes which converted into a fixed number of shares of common stock and warrants at the close of the company's initial public offering in October 1996. In addition, a $347,000 non-cash consulting fee expense was incurred relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc shares of common stock issuable upon the company's IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. as compensation for certain corporate development services provided during 1995. "Additionally," per 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. , the company's president, "we incurred substantial scheduled and anticipated costs in connection with our major menu and concept enhancement completed in the first half of 1996. We believe the same store sales increases achieved during 1996 are primarily the result of our investment in improving and expanding the BJ's concept." Results at the store level were substantially improved in 1996 from 1995. Income from store operations, which does not reflect general and administrative expenses, increased in 1996 by $1,010,000 from 1995, and cash flow from store operations (income from store operations plus non-cash depreciation and amortization) increased by $1,688,000. Chicago Pizza & Brewery Inc. is an operator of 29 casual dining restaurants, some of which incorporate brewpubs. Eight 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, , one is located in Lahaina, Maui, and one is located in Boulder, Colo. In 1996, the company acquired 19 restaurants in Oregon and Washington from Pietro's Corp. These restaurants, currently being operated as pizzerias under the Pietro's name, are scheduled to be converted into brewpubs and casual dining restaurants to operate under the BJ's name. The first conversion is currently scheduled to be complete in April 1997. The company opened its second brewpub brew·pub n. 1. See microbrewery. 2. A saloon where the owners make their own beer and serve it on the premises. Noun 1. in Boulder, located in the Pearl Street Mall The Pearl Street Mall (also referred to as Pearl Street, Downtown Boulder or just simply Downtown) is a four block pedestrian mall in Boulder, Colorado. , a popular high-traffic pedestrian promenade, in February 1997. Paul Motenko, the company's chief executive officer, indicated that the initial sales at the 5,500 square foot Boulder brewpub provides further validation of the company's strategy of integrating microbreweries into its restaurants. A recent sharp decline occurred in the price of the company's securities. Management believes the decline is substantially related to issues regarding the underwriter underwriter n. a company or person which/who underwrites an insurance policy, issue of corporate securities, business, or project. (See: underwrite) UNDERWRITER, insurances. One who signs a policy of insurance, by which he becomes an insurer. which managed the company's initial public offering in October 1996 and which had been the company's primary market maker for its securities. On March 13, 1997, the underwriter announced that it had stopped making markets in 50 stocks, including the company's stock, until it could raise enough money to meet capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. of the National Association of Securities Dealers National Association of Securities Dealers (NASD) Nonprofit organization formed under the joint sponsorship of the investment bankers' conference and the SEC to comply with the Maloney Act, which provides for the regulation of the OTC market. . It was reported on March 19, 1997, that the underwriter had successfully raised sufficient money to meet capital requirements. "We continue to operate the company 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. our business plan and the decline in our stock price has not had a significant impact on the financial condition of Chicago Pizza & Brewery Inc. We are pleased with the opening of our newest Pizza, Grill & Brewery in Boulder, Colo. Additionally, we are moving forward on our conversion plan in the Pacific Northwest and continue to look for new locations throughout the western United States Noun 1. western United States - the region of the United States lying to the west of the Mississippi River West Santa Fe Trail - a trail that extends from Missouri to New Mexico; an important route for settlers moving west in the 19th century . I welcome any questions or inquiries from current shareholders, prospective shareholders and members of the investment community," said Motenko. 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, 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 current concentration in the Northwest; (v) consumer trends; (vi) increased food costs and wages, including, without limitation, the recent increase in the minimum wage, and (vii) other general economic and regulatory conditions. -0-
CHICAGO PIZZA & BREWERY INC.
CONSOLIDATED FINANCIAL DATA
(in thousands, except per share numbers)
For the year ended For the quarter ended
Dec. 31, Dec. 31,
1996 1995 1996 1995
Statement of Operations
Data:
Revenues 19,865 6,586 5,547 1,426
Gross profit 13,683 4,738 3,837 1,022
Costs and expenses 15,103 5,789 4,508 1,362
Other expenses 860 549 235 35
Net loss (2,289) (1,606) (906) (377)
Primary net loss per
share ($0.52) ($0.55) ($0.15) ($0.13)
-0-
1996 1995
Balance Sheet Data (end of period):
Working capital 3,329 22
Total assets 18,914 8,943
Total long-term debt (including
current portion) 3,964 4,127
Shareholders' equity 12,123 4,023
CONTACT: Chicago Pizza & Brewery Inc. Paul Motenko, 714/367-8616 |
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