Chicago Pizza & Brewery Inc. Reports Net Income for its Second Quarter 1998 of $178,000, or 3 Cents Per Share
MISSION VIEJO, Calif.--(BUSINESS WIRE)--July 29, 1998--
17.8 Percent Increase in Revenues and 16.6 Percent Comparable Same Store Sales Increases at its BJ's Restaurants
Chicago Pizza & Brewery Inc. (Nasdaq:CHGO) (Nasdaq:CHGOW) released results for its second quarter ended June 30, 1998.
The company reported net income of $178,000, or 3 cents per share, as compared with net income of $118,000 for the same period in 1997 (the 1997 profit of $118,000, included a $190,000 gain on an involuntary conversion of assets relating to a fire at one of the company's units in Oregon).
Income from operations for the second quarter 1998 was $284,000, a $317,000 increase from the $33,000 loss from operations incurred during the same period a year ago. Cash flow from operations (income from operations plus depreciation and amortization) increased to $755,000 for the second quarter of 1998 from $301,000 for the corresponding period in 1997.
Due to the strong revenue performance of the existing and converted BJ's restaurants, total revenues rose 17.8 percent to $7,825,000 in the second quarter of 1998 versus the $6,642,000 for the second quarter of 1997.
The company continued to experience substantially increased revenues at its BJ's restaurants, achieving a 16.6 percent increase in sales for the second quarter of 1998 over the second quarter of 1997 at restaurants operated as BJ's during the entire comparable periods.
"We are very pleased with the results of our second quarter," remarked Paul Motenko, chief executive officer. "It is clear that our efforts over the past several years in expanding the BJ's concept, acquiring and developing prime sites and achieving operational efficiencies are paying off.
"Revenues at mature BJ's restaurants continue to grow at a remarkable pace, while revenues at our converted Northwest restaurants are still substantially higher than when they were operated under the Pietro's concept."
Jerry Hennessy, president, added: "The success of our larger brewery restaurants, particularly Brea, Calif., and Boulder, Colo., presents us with a clear vision for our future. We will strive to continue this pattern of success in our new Woodland Hills and Valencia locations, which incorporate the larger brewery-style concept and are scheduled to open in late 1998 and mid-1999, respectively."
For the six months ended June 30, 1998, the company reported revenues of $14,713,000 as compared with revenues of $12,425,000 for the comparable period in 1997. Net loss for the six months ended June 30, 1998, was $1,000 as compared with a $54,000 loss for the same period in 1997.
Cash flow from operations increased to $1,071,000 for the six months ended June 30, 1998, from $402,000 for the same period of 1997. Revenues at the restaurants operated as BJ's for both periods rose 15.5 percent during the six months ended June 30, 1998.
Chicago Pizza & Brewery operates 27 casual dining restaurants, some of which incorporate brewpubs. Eight of the restaurants are located in Southern California, one in Lahaina, Maui, and one is located in Boulder. In 1996, the company acquired restaurants in Oregon and Washington from Pietro's Corp. 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 converted 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: (1) the company's ability to manage growth and conversions, (2) construction delays, (3) restaurant and brewery industry competition and other such industry considerations, (4) marketing and other limitations based on the company's historic concentration in Southern California and current concentration in the Northwest, (5) consumer trends, (6) increased food costs and wages,including without limitation, the recent increase in the minimum wage, and (7) other general economic and regulatory conditions. Further information concerning these and other factors is included in the company's reports filed with the Securities and Exchange Commission.
CHICAGO PIZZA & BREWERY INC.
Consolidated Financial Data
(in thousands, except per share data)
For the three months For the six months
ended June 30, ended June 30,
1998 1997 1998 1997
Statement of
operations data:
Revenues $ 7,825 $ 6,642 $14,713 $12,425
Cost of sales 2,159 1,943 4,171 3,651
Gross profit 5,666 4,699 10,542 8,774
Costs and expenses:
Labor and benefits 2,792 2,275 5,293 4,230
Occupancy 639 602 1,233 1,178
Operating expenses 867 833 1,739 1,612
General and
administrative 613 688 1,206 1,351
Depreciation and
amortization 471 334 923 603
Total costs and
expenses 5,382 4,732 10,394 8,974
Income (loss) from
operations 284 (33) 148 (200)
Other income (expense):
Gain on involuntary
conversion of assets 190 190
Interest expense, net (73) (41) (107) (58)
Other (15) (1) (6) 9
Total other income
(expense) (88) 148 (113) 141
Income (loss) before
minority interest and
income taxes 196 115 35 (59)
Minority interest in
partnership (17) 3 (34) 6
Income (loss) before
income taxes 179 118 1 (53)
Income tax expense (1) (2) (1)
Net income (loss) $178 $118 ($1) ($54)
Basic and dilutive net
income (loss) per
common share $0.03 $0.02 $0.00 ($0.01)
EBITDA (Earning before
interest, taxes,
depreciation and
amortization) $723 $493 $1,031 $608
June 30, 1998 Dec. 31, 1997
Balance Sheet Data
(end of period):
Cash $ 1,611 $ 1,705
Total assets $17,738 $17,842
Total long-term debt
(including current portion) $ 3,255 $ 3,543
Shareholders' equity $11,807 $11,808
CONTACT: Chicago Pizza & Brewery Inc.
Paul Motenko, 949/367-8616, ext. 2
or
Brenda Eames, 310/796-0229 (investor relations) |
