Take a look at the earnings, Rory. I like the top line growth. We'll be knocking on $4 before you know it!
Chicago Pizza & Brewery Inc. Reports a 24.1% Increase in Revenues and a $199,000 Profit for the Second Quarter of 2000
MISSION VIEJO, Calif.--(BUSINESS WIRE)--Aug. 10, 2000--Chicago Pizza & Brewery Inc. (Nasdaq:CHGO - news; Nasdaq:CHGOW - news) released results for the second quarter ended June 30, 2000.
Revenues totaled $12,347,000 for the second quarter of 2000, an increase of 24.1% as compared with the same period in 1999. Contributing to the increase in revenues was an increase in same store sales of 9.0% at the restaurants operated as BJ's for all of both periods.
Also contributing to the increase in revenues was the opening of restaurants in Woodland Hills, Calif. in April 1999, La Mesa, Calif. in November 1999 and Valencia, Calif. at the end of March 2000. Revenues at the restaurants operated as Pietro's for all of both periods decreased 4.1%.
The company reported net income of $199,000 for the second quarter of 2000 as compared with net income of $344,000 for 1999. The decrease in net income was primarily due to increases in preopening costs and general and administrative expenses. Preopening costs increased to $312,000 for the second quarter of 2000 as compared with $127,000 for the second quarter of 1999.
The preopening costs for the second quarter of 2000 related to the Burbank, Calif. restaurant which opened on June 30, 2000 and the West Covina, Calif. restaurant due to open later this month. General and administrative expenses increased to $1,024,000 for the second quarter of 2000 from $752,000 for the comparable period of 1999.
Per Jerry Hennessy, co-CEO, ``Since November 1999 we have added, on an annualized basis, around $13 million in revenue, with the potential of adding an additional $8 million or more during the remainder of this year from the two additional restaurants scheduled to open.
``The increase in general and administrative expenses reflects the utilization of significantly greater resources in recruiting, training, new store development and supervision. While we are aware of the short-term impact on earnings of these additional resources, we feel that the operationally successful growth of the BJ's concept will, in the long run, make these investments very prudent.''
Cash flow at the store level (revenues less food cost, labor cost, occupancy and operating expenses) increased 21.2%, to $2,253,000 in the second quarter of 2000 from $1,859,000 for the comparable period of 1999.
Per Paul Motenko, co-CEO, ``Our two newest restaurants, in Valencia, California and Burbank, California, have been among the company's most successful openings. Since its opening in late March 2000, the 7,000 square foot Valencia restaurant has averaged weekly revenues of $111,000. Since its opening at the end of June, the 11,000 square foot Burbank restaurant has averaged weekly sales of $102,000.
``While these revenue numbers may not be sustained as the restaurants mature, we are very pleased with the reception BJ's has received in each of these communities.
``We are optimistically looking towards the opening of our 12,000 square foot restaurant and brewery in West Covina, California, later this month and our 8,000 square foot restaurant in Huntington Beach, California, which is scheduled to open this fall.''
Revenues for the six months ended June 30, 2000 increased 24.9%, to $22,525,000 from $18,040,000 for the first six months of 1999. Net income for the first six months of 2000 increased to $372,000 from $230,000 for the comparable period in 1999.
Chicago Pizza & Brewery operates 28 casual dining restaurants, some of which incorporate brewpubs. Thirteen 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 six BJ's restaurants and seven Pietro's restaurants in Oregon.
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, Inc. 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, 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 Six Months
Ended June 30, Ended June 30,
2000 1999 2000 1999
Statement of Operations
Data:
Revenues $12,347 $9,947 $22,525 $18,040
Cost of sales 3,402 2,790 6,204 5,015
Gross profit 8,945 7,157 16,321 13,025
Costs and expenses:
Labor and benefits 4,412 3,530 8,100 6,508
Occupancy 993 751 1,827 1,460
Operating expenses 1,287 1,017 2,394 1,924
Preopening costs 312 127 458 322
General and
administrative 1,025 752 1,937 1,416
Depreciation and
amortization 462 389 888 744
Restaurant Closing
Expense 114 169 114 169
Total cost and expenses 8,605 6,735 15,718 12,543
Income from operations 340 422 603 482
Other income (expense):
Interest expense, net (98) (66) (173) (123)
Other expense, net (1) 7 (2) 8
Total other expense (99) (59) (175) (115)
Income before minority
interest, income taxes
and change in accounting 241 363 428 367
Minority interest in
partnership (20) (10) (27) (20)
Income before income
taxes and change in
accounting 221 353 401 347
Income tax expense (22) (9) (29) (11)
Income before change in
accounting 199 344 372 336
Cumulative effect of change
in accounting (106)
Net income $199 $344 $372 $230
Basic and dilutive net
income (loss) per share:
Income before change in
accounting $0.03 $0.04 $0.05 $0.05
Cumulative effect of
change in accounting ($0.02)
Net income (loss) per
common share $0.03 $0.04 $0.05 $0.03
June 30, 2000 December 31, 1999
Balance Sheet Data (end of period):
Cash $648 $189
Total assets $23,725 $19,144
Total long-term debt (including
current portion) $4,907 $2,861
Shareholders' equity $13,471 $13,099 |
