Chicago Pizza & Brewery Reports Profitability for 1998, a 112 Percent Increase in Cash Flow and a 15.7 Percent Increase in Comparable Store Sales at its BJ's Restaurants
Business Wire - March 31, 1999 08:48
MISSION VIEJO, Calif.--(BUSINESS WIRE)--March 31, 1999--Chicago Pizza & Brewery Inc. (Nasdaq:CHGO)(Nasdaq:CHGOW) Wednesday announced results for the fourth quarter and year ended Dec. 31, 1998.
Total revenue increased 9.5 percent for the fourth quarter and 14.7 percent for the year, compared with the same periods in 1997. Revenue totaled $7,180,000 for the fourth quarter and $30,051,000 for the year of 1998.
Contributing to the increase in revenue was an increase in same-store sales of 15.7 percent at the restaurants operated as BJ's for all of 1997 and 1998. Also contributing was an increase in revenue of 39.3 percent at the restaurants operated as Pietro's for part or all of 1997 and as BJ's for part or all of 1998. Revenue at the restaurants operated as Pietro's for all of 1997 and 1998 decreased 6.4 percent.
The company reported net income of $85,000 for 1998 as compared with a net loss of $315,000 for 1997. Income from operations for 1998 was $359,000, a $759,000 increase from the $400,000 loss from operations in 1997. Cash flow from operations (income from operations plus depreciation and amortization) increased 112 percent, to $2,096,000 for 1998 from $989,000 for 1997, an increase of $1,107,000.
"We are pleased that we were able to achieve significant same-store sales increases and operational efficiencies that enabled us to overcome the challenges of historically high cheese prices and substantial increases in the minimum wage during 1998," remarked Paul Motenko, chief executive officer.
"While two of the Pietro's restaurants were converted to BJ's in 1998, the two new restaurants we anticipated opening during that year were delayed until early 1999. Our Arcadia, Calif., restaurant opened in January and has experienced extremely strong initial sales. Our Woodland Hills, Calif., restaurant is scheduled to open April 10. At more than 12,000 square feet, it will be the largest of the company's restaurants."
The development of the Arcadia and Woodland Hills restaurants reflects the evolution of the company's strategy toward an emphasis on larger-format restaurants in prime locations. Consequently, there are currently no plans to convert additional Pietro's locations to BJ's. "We believe that our success in Brea, Boulder, Jantzen Beach, and now our Arcadia restaurant clearly indicated the direction in which the company's resources should be applied," commented company President Jerry Hennessy.
Chicago Pizza & Brewery 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, Colo. In addition, the company operates seven BJ's restaurants in Oregon and 10 Pietro's restaurants in Oregon and Washington. 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 handcrafted 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: (1) the company's ability to manage growth and conversions, (2) construction delays, (3) marketing and other limitations as a result o the company's historic concentration in Southern California and current concentration in the Northwest, (4) restaurant and brewery industry competition, (5) impact of certain brewery business considerations, including, without limitation, dependence upon suppliers and related hazards, (6) increase in food costs and wages, including without limitation the recent increase in minimum wage, (7) consumer trends, (8) potential uninsured losses and liabilities, (9) trademark and servicemark risks, (10) year 2000 risk issues and (11) other general economic and regulatory conditions and requirements.
Chicago Pizza & Brewery Inc.
Consolidated Financial Data
(in thousands, except per share data)
For the years ended For the three months
December 31, ended December 31,
1998 1997 1998 1997
Statement of
Operations Data
Revenue $30,051 $26,191 $ 7,180 $ 6,558
Gross profit $21,593 $18,459 $ 5,124 $ 4,652
Costs and expenses $21,234 $18,859 $ 5,269 $ 4,903
Other income (expense) ($216) $ 97 $ (54) $ (30)
Net income (loss) $ 85 $ (315) $ (199) $ (284)
Basic net income (loss)
per common share $ 0.01 $ (0.05) $ (0.03) $ (0.04)
December 31, 1998 December 31, 1997
Balance Sheet Data
(end of period)
Working capital $ (796) $ 232
Total assets $17,595 $17,842
Total long-term debt
(including current
portion) $ 2,927 $ 3,543
Shareholders' equity $11,893 $11,808
CONTACT: Chicago Pizza & Brewery, Mission Viejo
Paul Motenko, 949/367-8616 |
