Chicago Pizza & Brewery, Inc. Reports a 19.1% Increase in Revenues, 15.0% Comparable Stores Sales Increases at its BJ's Restaurants and Continued Substantial Sales Increases at its Recently Converted Northwest Restaurants
MISSION VIEJO, Calif.--(BUSINESS WIRE)--May 14, 1998--Chicago Pizza & Brewery, Inc. (NASDAQ:CHGO) (NASDAQ:CHGOW) released results for its first quarter ended March 31, 1998. The Company reported a net loss of $180,000 compared to a net loss of $172,000 for the same period in 1997. Depreciation and amortization for the 1998 period was $183,000 greater than for the 1997 period. Earnings before interest, taxes, depreciation and amortization (EBITDA) for the first quarter of 1998 was $308,000 as compared to $115,000 for the comparable period in 1997.
The Company continued to experience substantially increased revenues at its BJ's restaurants, achieving a 15.0% increase in sales for the first quarter of 1998 over the first quarter of 1997 at restaurants operated as BJ's during the entire comparable periods. The five restaurants which were converted from Pietro's to BJ's during 1997, which were operated as BJ's for the entire first quarter of 1998, experienced a 95.2% increase in revenues from the comparable period of 1997, when they were operated as Pietro's.
Revenue increases at the two Pietro's units converted thus far during 1998 have been even more substantial: the restaurant in The Dalles, Oregon, which was converted in February 1998, achieved sales increases during March and April 1998 of $98,000 or 115.1% over the comparable period of 1997. The restaurant in Gresham, Oregon, converted in March 1998, experienced sales increases during April 1998 of $98,000 or 253.0% over the comparable period in 1997. The Company's Pietro's restaurants still awaiting conversion to the BJ's concept experienced a 3.7% sales decline.
The mature BJ's restaurants in Southern California, Hawaii and Colorado continue to show improvement not only in revenue but in the generation of cash flow as well. Cash flow from store operations for those restaurants, increased to $749,000 for the first quarter of 1998 from $556,000 for the comparable period of 1997.
Due to the strong performance of the existing and converted BJ's restaurants, total revenue increased 19.1%, from $5,783,000 to $6,888,000.
As of March 31, 1998, Chicago Pizza & Brewery, Inc. operated 28 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, 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 lease at the Company's sole carryout and delivery-only unit, located on Woodstock in Portland, Oregon, expired in April 1998 and was not renewed. The remaining 10 restaurants, operating as pizzerias under the Pietro's name, are awaiting 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) the Company's ability to manage growth and conversions, (3) construction delays, (4) restaurant and brewery industry competition and other such industry considerations, (5) marketing and other limitations based on the Company's historic concentration in Southern California and current concentration in the Northwest, (6) consumer trends, (7) increased food costs and wages, including without limitation, the recent increase in the minimum wage, and (8) 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.
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Chicago Pizza & Brewery, Inc.
Consolidated Financial Data
(in thousands, except per share data)
For the For the
quarter ended quarter ended
March 31, 1998 March 31, 1997
Statement of Operations
Data:
Revenues $6,888 $5,783
Cost of sales 2,012 1,708
Gross profit 4,876 4,075
Costs and expenses: Labor and benefits 2,501 1,955 Occupancy 594 576 Operating expenses 872 780 General and administrative 593 663 Depreciation and amortization 452 269 Total costs and expenses 5,012 4,243
Loss from operations (136) (168)
Other income (expense) (44) (4)
Net loss ($180) ($172)
Basic net loss per common
share ($0.03) ($0.03)
EBITDA (Earning before
interest, taxes, depreciation and
amortization) $308 $115
March 31, 1998 December 31, 1997
Balance Sheet Data
(end of period):
Cash $1,351 $1,705
Total assets $17,718 $17,842
Total long-term debt
(including current
portion) $3,438 $3,543
Shareholders' equity $11,629 $11,808
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CONTACT:
Chicago Pizza & Brewery, Inc.
Paul Motenko, 949/367-8616 ext. 2
Brenda Eames, 310/796-0229 (Investor Relations)
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