(BSNS WIRE) Chicago Pizza & Brewery, Inc. Reports Record Earnings for It
Chicago Pizza & Brewery, Inc. Reports Record Earnings for Its Third Quarter
1998 of $285,000, or $.04 Per Share
Business Editors
MISSION VIEJO, Calif.--(BUSINESS WIRE)--Nov. 2, 1998--
Revenues Increased 13.2% and Comparable Same Store Sales
Increased 12.0% at Its BJ's Restaurants
Chicago Pizza & Brewery, Inc. (Nasdaq:CHGO and CHGOW) released
results for its third quarter ended September 30, 1998.
The Company reported net income of $285,000, or $.04 per share,
as compared to net income of $23,000 for the same period in 1997.
Income from operations for the third quarter 1998 was $356,000, a
$304,000 increase from the $52,000 income from operations achieved
during the third quarter of 1997. Cash flow from operations (income
from operations plus depreciation and amortization) increased to
$779,000 for the third quarter of 1998 from $403,000 for the
corresponding period in 1997.
The Company continued to experience substantially increased
revenues at its BJ's restaurants, achieving a 12.0% overall increase
in sales for the third quarter of 1998 over the third quarter of 1997
at restaurants operated as BJ's during the entire comparable periods.
The increase in comparable store sales was mitigated by a decrease in
sales at the two converted Pietro's restaurants included for the first
time in a quarterly comparable store analysis.
These restaurants, converted during the second and third quarters
of 1997, were experiencing their honeymoon periods during the third
quarter of 1997. Revenues at these two restaurants declined 22% during
the comparable period of 1998. Excluding these two units, comparable
store sales at the BJ's restaurants increased 17.4% during the third
quarter of 1998 as compared to the third quarter of 1997.
"The results of our third quarter continue the favorable
quarterly trend we have experienced all year," remarked Paul Motenko,
CEO. "Particularly encouraging is that the trends in both revenue and
costs have been favorable during this period. Even with the over 25%
increase in the price of cheese experienced this quarter over the
comparable quarter of last year, cost of sales overall has been
reduced from 30.2% to 27.4%. Operating expenses were reduced as well
from 69.1% in the third quarter of 1997 to 68.3% in the third quarter
of 1998."
Per Jerry Hennessy, the Company's president, "During the third
quarter, which is historically our best, many of the BJ's restaurants
achieved single month revenue records. While the converted Northwest
restaurants have experienced revenue reductions since their
post-conversion honeymoon stage, these restaurants are still
experiencing significantly increased revenues as compared to when they
were operated as Pietro's."
Due to the revenue performance of the existing and converted BJ's
restaurants, total revenues increased 13.2% from $7,209,000 to
$8,158,000.
Per Hennessy, "Our focus during the first three quarters of 1998
was on the converted restaurants in the Northwest. The conversions,
plus our same store sales increases at the BJ's restaurants, have
resulted in year-to-date revenue growth of 16.5%. We are currently
actively involved in the construction of our next two units in Arcadia
and Woodland Hills, California. We believe the addition of these two
units plus the Valencia, California unit, which is anticipated to open
in the summer of 1999, should provide an acceleration of revenue
growth for 1999.
For the nine months ended September 30, 1998, the Company
reported revenues of $22,871,000 as compared to revenues of
$19,634,000 for the comparable period in 1997. Net income for the nine
months ended September 30, 1998, was $284,000 as compared with a
$31,000 net loss for the same period in 1997. Cash flow from
operations increased to $1,849,000 for the nine months ended September
30, 1998 from $805,000 for the same period of 1997.
The Company recently experienced two favorable developments.
Approximately a week ago, video lottery equipment was installed in the
Stark Street restaurant in Portland, Oregon. Also, the Company
received a bronze medal in the Pale Ale category at the prestigious
1998 Great American Beer Festival in Denver, Colorado for its Piranha
Pale Ale.
Chicago Pizza & Brewery, Inc. 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, 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 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.
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Chicago Pizza & Brewery, Inc.
Consolidated Financial Data
(in thousands, except per share data)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30,
Statement of Operations Data: 1998 1997 1998 1997
Revenue $ 8,158 $ 7,209 $22,871 $19,633
Cost of sales 2,232 2,176 6,403 5,826
Gross profit 5,926 5,033 16,468 13,807
Cost and Expenses:
Labor and benefits 2,883 2,462 8,176 6,693
Occupancy 666 614 1,899 1,791
Operating expenses 937 889 2,676 2,502
General and administrative 661 665 1,868 2,016
Depreciation and amortization 423 351 1,346 954
Total cost and expenses 5,570 4,981 15,965 13,956
Income (loss) from operations 356 52 503 (149)
Other Income (Expense):
Gain on involuntary
conversion of assets 191
Interest expense, net (50) (18) (158) (76)
Other income (expense), net 1 3 (4) 12
Total other income (expense) (49) (15) (162) 127
Income (loss) before minority
interest and income taxes 307 37 341 (22)
Minority interest in partnership (22) (14) (55) (8)
Income (loss) before income taxes 285 23 286 (30)
Income tax expense (2) (1)
Net income (loss) $ 285 $ 23 $ 284 $ (31)
Basic and dilutive net income
common per share $ 0.04 $ 0.00 $ 0.04 $ 0.00
Sept. 30, 1998 Dec. 31, 1997
Balance Sheet Data (end of period):
Cash $ 1,415 $ 1,705
Total assets $17,642 $17,842
Total long-term debt
(including current portion) $ 3,111 $ 3,543
Shareholders' equity $12,092 $11,808
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--30--ap/sf* ari/sf
CONTACT: Chicago Pizza & Brewery
Paul Motenko, CEO, 949/367-8616 ext. 107
Brenda Eames, Investor Relations, 310/796-0229
KEYWORD: CALIFORNIA OREGON COLORADO HAWAII
INDUSTRY KEYWORD: RESTAURANTS EARNINGS
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