No shortage of growth--revenue run rate now about 40 mil per year:
Subj: Chicago Pizza & Brewery Inc. Reports Net Profit of...
Date: 11/15/99 6:22:16 AM Pacific Standard Time
From: AOL News
BCC: Lhn5
Chicago Pizza & Brewery Inc. Reports Net Profit of $331,000 and a 23.1% Increase in Revenues for Its Third Quarter of 1999
MISSION VIEJO, Calif.--(BUSINESS WIRE)--Nov. 15, 1999--Chicago
Pizza & Brewery, Inc. (NASDAQ:CHGO)(NASDAQ:CHGOW) released results for
its third quarter ended September 30, 1999.
The Company reported net income of $331,000 or $.04 per share as
compared to net income of $285,000 or $.04 per share for the same
period in 1998. Cash flow from operations at the restaurant level for
the third quarter 1999 was $1,709,000, a $269,000 increase from the
$1,440,000 cash flow from restaurant operations achieved during the
third quarter of 1998.
The Company continued to experience substantially increased
revenues at its BJ's restaurants, achieving a 6.1% increase in sales
for the third quarter of 1999 over the third quarter of 1998 at
restaurants operated as BJ's during the entire comparable periods. "We
are pleased with the increase in revenues achieved during our third
quarter, particularly in Southern California, Colorado and Hawaii,
where same-store sales increased by 9.0%," remarked Paul Motenko,
co-CEO. "We are, however, feeling the short term effects of our more
aggressive growth strategy in increased general and administrative
expenses."
General and administrative expenses increased to $872,000 for the
third quarter of 1999 from $661,000 for the third quarter of 1998.
Most of the increase related to salaries of individuals hired to
assist the Company in achieving its growth objectives as well as to
direct site acquisition costs. Per Motenko, "We feel the Company has
already reaped benefits from the additional expenditures in that we
have more sites in the pipeline than ever in the Company's history. In
that regard, we are pleased to announce the signing of a letter of
intent on a 8,300 square foot site in Huntington Beach, CA., just off
the 405 freeway at Beach Boulevard." The contingent Huntington Beach
agreement joins similar, previously announced agreements for sites in
West Covina and Burbank, CA. The Company's Valencia, CA location is
currently under construction and its La Mesa, CA location opened on
Monday, November 8.
Due to the strong revenue performance of the existing BJ's
restaurants and the opening of restaurants in Arcadia and Woodland
Hills, CA, earlier this year, total revenues increased 23.1%, to
$10,039,000 for the quarter ended September 30, 1999 from $8,158,000
for the comparable period in 1998.
For the nine months ended September 30, 1999 the Company reported
revenues of $28,079,000 as compared to revenues of $22,871,000 for the
comparable period in 1998. Net income for the nine months ended
September 30, 1999 was $561,000 as compared with net income of
$284,000 for the same period in 1998.
Chicago Pizza & Brewery, Inc. operates 28 casual dining
restaurants, some of which incorporate brewpubs. Nine of the
restaurants are located in Southern California, one is located in
Lahaina, Maui and one is located in Boulder, Colorado. In 1996 the
Company acquired restaurants in Oregon and Washington from Pietro's
Corporation with the plan to convert them to BJ's restaurants. The
first five conversions were completed during 1997. Two additional
conversions were completed during the first quarter of 1998. The
remaining 10 restaurants, operating as pizzerias under the Pietro's
name are awaiting renovation and/or conversion to one of the BJ's
concepts.
The information presented herein contains certain forward-looking
statements within the meaning of Section 27A of the Securities Act of
1933, as amended, which are intended to be covered by the safe harbors
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.
Chicago Pizza & Brewery, Inc.
Consolidated Financial Data -- Unaudited
(in thousands, except per share data)
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
1999 1998 1999 1998
Statement of Operations Data:
Revenues $10,039 $8,158 $28,079 $22,871
Cost of sales 2,862 2,232 7,877 6,403
Gross
profit 7,177 5,926 20,202 16,468
Costs and expenses:
Labor and
benefits 3,543 2,883 10,051 8,175
Occupancy 776 666 2,236 1,899
Operating
expenses 1,106 937 3,032 2,676
Preopening
costs 44 365
Restaurant Closure
Expenses 169
General and
administrative 872 661 2,288 1,869
Depreciation and
amortization 392 423 1,136 1,346
Total cost and
expenses 6,733 5,570 19,277 15,965
Income from
operations 444 356 925 503
Other income (expense):
Interest expense,
net (65) (50) (188) (158)
Other income (expense),
net 1 1 10 (4)
Total other
expense (64) (49) (178) (162)
Income before minority
interest, income taxes
and change in
accounting 380 307 747 341
Minority interest in
partnership (34) (22) (54) (55)
Income before
income taxes
and change in
accounting 346 285 693 286
Income tax
expense (15) (26) (2)
Income before change
in accounting 331 285 667 284
Cumulative effect of
change in
accounting (106)
Net income $331 $285 $561 $284
Basic and dilutive
net income (loss)
per share:
Income before change
in accounting $0.04 $0.04 $0.09 $0.04
Cumulative effect of
change in
accounting ($0.01)
Net income per
share $0.04 $0.04 $0.08 $0.04
Sept. 30, 1999 Dec. 31, 1998
Balance Sheet Data (end of period):
Cash $1,883 $1,491
Total assets $19,489 $17,595
Total long-term debt (including
current portion) $3,056 $2,927
Shareholders' equity $13,302 $11,893
CONTACT:
Chicago Pizza & Brewery Inc., Mission Viejo
Paul Motenko, 949/367-8616
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