Chicago Pizza & Brewery Inc. Reports Record Revenues and an $863,000
Profit for the Third Quarter of 2001
HUNTINGTON BEACH, Calif., Nov 12, 2001 (BUSINESS WIRE) -- Chicago Pizza &
Brewery Inc. (Nasdaq:CHGO) (Nasdaq:CHGOW) released results for the third quarter
ended Sept. 30, 2001.
Revenues totaled $16,618,000 for the third quarter of 2001, an increase of 12.4%
as compared with the same period in 2000. Contributing to the increase in
revenues was the opening of restaurants in Huntington Beach during October 2000
and Irvine, Calif. during August 2001.
Also contributing to the increase in revenues was an increase in same store
sales of 3.5% at the company's BJ's restaurants. This figure reflects a change
in the company's approach in determining comparable store sales. Previously, the
company had reported same store sales based upon all restaurants open for the
entire comparable period of both years. In order to more accurately reflect
revenue trends on an ongoing basis, and in line with industry practice, the
company felt it appropriate to exclude the impact of initial "honeymoon periods"
on the same store sales comparison.
Accordingly, the comparison of same store sales includes only those restaurants
open for at least 18 months. During the third quarter, the implication of this
change was to eliminate the Valencia and Burbank, Calif. restaurants, which
opened during March and June 2000, respectively, from the comparable sales
analysis. Revenues at the restaurants operated as Pietro's for all of both
periods increased 1.8%.
Partially offsetting these increases were the closing of a BJ's restaurant in
Portland, Ore. in April 2001, the closing of a BJ's restaurant in Gresham, Ore.
in June 2001 and the closing of a Pietro's restaurant in McMinville, Ore. in
August 2001. Another factor negatively impacting revenues was the sale of the
BJ's restaurant in Maui, Hawaii in April 2001. That restaurant is now operated
as a BJ's restaurant under a license agreement.
The company reported net income of $863,000 for the third quarter of 2001 as
compared with $784,000 for the third quarter of 2000. Income before income taxes
was $1,370,000 for the third quarter of 2001 as compared with $846,000 for the
comparable period in 2000. The company's marginal tax rate was 37.0% for the
quarter ended Sept. 30, 2001 as compared with 7.4% for the comparable period in
2000. Income for the 2001 period included a pre-tax gain on the sale of the
company's Gresham restaurant of $329,000. The company incurred preopening costs
in the third quarters of 2001 and 2000 of $373,000 and $318,000, respectively.
Paul Motenko, co-CEO stated: "We are very pleased during these uncertain times
to report that revenues have, on a whole, not been significantly impacted by the
recent tragic events or the economic slowdown. We believe that our guests
appreciate BJ's tremendous value, which offers them an opportunity to have a
great, yet affordable, dining experience. We see this aspect of the BJ's concept
as providing us with a competitive advantage during the potentially difficult
times ahead."
Jerry Hennessy, co-CEO added: "While there is very little good about an economic
downturn, we feel current conditions will help generate additional site
opportunities upon which we are well prepared to capitalize. We have recently
entered into a letter of intent on a site in Oxnard, California and anticipate
executing a lease on that site very soon. We are actively pursuing other sites
in a variety of markets, and feel confident that we will accomplish our
objective of opening four to six restaurants during 2002. Our recent, successful
openings in Irvine, California and Chandler, Arizona provide further evidence of
our ability to effectively expand the BJ's concept in our home base of Southern
California and beyond."
Revenues for the nine months ended Sept. 30, 2001 increased 28.5%, to
$47,961,000 from $37,316,000 for the first nine months of 2000. Net income for
the first nine months of 2001 increased to $2,611,000 from $1,175,000 for the
comparable period in 2000. Income before income taxes was $4,080,000 for the
nine months of 2001 as compared with $1,267,000 for the comparable period in
2000. The company's marginal tax rate was 36.0% for the nine months ended Sept.
30, 2001 as compared with 7.3% for the comparable period in 2000.
Chicago Pizza & Brewery operates 27 casual dining restaurants, some of which
incorporate microbreweries. Sixteen of the BJ's restaurants are located in
Southern California, one in Boulder, Colo., four in Oregon and one in Chandler,
Ariz.
In addition, the company operates five Pietro's restaurants in Oregon 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 as well as sandwiches, salads, fabulous
desserts, critically acclaimed hand-crafted beers and more. Visit Chicago Pizza
& Brewery on the Web at bjsbrewhouse.com.
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, (vii) increased energy costs in California, and (viii) 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 Sept. 30, Ended Sept. 30,
2001 2000 2001 2000
Statement of Operations Data:
Revenues $16,618 $14,791 $47,961 $37,316
Cost of sales 4,504 4,120 12,970 10,324
Gross profit 12,114 10,671 34,991 26,992
Costs and expenses:
Labor and benefits 5,860 5,219 17,091 13,319
Occupancy 1,217 1,122 3,605 2,949
Operating expenses 1,718 1,518 5,013 3,912
Preopening costs 373 318 450 776
General and administrative 1,364 928 3,587 2,865
Depreciation and
amortization 475 520 1,484 1,408
Restaurant Closing Expense 114
Total cost and expenses 11,007 9,625 31,230 25,343
Less: Gain on Sale of
Restaurants 343 397
Net operating costs and
expenses 10,664 9,625 30,833 25,343
Income from operations 1,450 1,046 4,158 1,649
Other income (expense):
Interest expense, net (55) (153) (305) (325)
Other income (expense),
net (25) 219 (2)
Total other expense (80) (153) (86) (327)
Income before minority
interest and income taxes 1,370 893 4,072 1,322
Minority interest in
partnership (47) 8 (55)
Income before income
taxes 1,370 846 4,080 1,267
Income tax expense (507) (62) (1,469) (92)
Net income $ 863 $ 784 $ 2,611 $ 1,175
Basic net income per
common share $ 0.08 $ 0.10 $ 0.30 $ 0.15
Dilutive net income
per common share $ 0.07 $ 0.10 $ 0.27 $ 0.15
Sept. 30, 2001 Dec. 31, 2000
Balance Sheet Data (end of period):
Cash $9,805 $1,405
Total assets $39,296 $29,992
Total long-term debt (including
current portion) $4,677 $6,059
Shareholders' equity $27,530 $15,043
CONTACT: Chicago Pizza & Brewery Inc., Huntington Beach
Paul Motenko, 714/848-3747, ext. 107 |
