Chicago Pizza & Brewery Inc. Reports a 17.5 Percent Increase in Revenues for the First Quarter of 1999
Business Wire - May 11, 1999 08:58
MISSION VIEJO, Calif.--(BUSINESS WIRE)--May 11, 1999--Chicago Pizza & Brewery Inc.
(Nasdaq:CHGO) (Nasdaq:CHGOW) released results for the first quarter ended March 31,
1999.
Total revenues increased 17.5 percent for the quarter, to $8,092,000, compared with
revenues of $6,888,000 for the same period in 1998. Contributing to the increase in
revenues was an increase in same-store sales of 9.1 percent at the restaurants operated as
BJ's for the entire period during 1998 and 1999.
Also contributing to the increase in revenues was the opening of a BJ's Pizza & Grill
restaurant in Arcadia, Calif., on Jan. 21, 1999. The Arcadia restaurant generated revenues
of $694,000 during its 10 weeks of operations in the first quarter.
The company reported a net loss of $114,000 for the first quarter of 1999, compared with a
net loss of $180,000 for the comparable period of 1998. The 1999 loss included $301,000 in
pre-opening expenses, including a charge of $106,000 relating to the cumulative effect of
a change in accounting policy which required the company to write off the entire balance
of pre-opening costs remaining unamortized as of Jan. 1, 1999.
In addition, the implementation of the new accounting policy resulted in the expensing
during the first quarter of 1999 of $195,000 in pre-opening costs relating to the Arcadia
and Woodland Hills, Calif., restaurants. Previously, these costs would have been
amortized over a 12-month period.
According to Jerry Hennessy, the company's president: "The accounting change for
pre-opening costs relating to the Arcadia restaurant had a negative impact on earnings.
However, from its first day of operations, the restaurant has had a positive effect on the
company's financial results."
The company's Woodland Hills restaurant opened on April 10, 1999, and has achieved
initial average revenues in excess of $100,000 per week. The company's largest restaurant
at more than 12,000 square feet, the Woodland Hills location is already among the
highest-volume units in the chain.
Chicago Pizza & Brewery operates 29 casual dining restaurants, some of which
incorporate brewpubs. Ten 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 hand-crafted 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: (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
(In thousands, except per-share data)
(Unaudited)
Three Months Ended March 31,
1999 1998
Revenues $8,092 $6,888
Cost of sales 2,224 2,012
Gross profit 5,868 4,876
Costs and expenses:
Labor and benefits 2,978 2,501
Occupancy 709 594
Operating expenses 908 872
Pre-opening costs 195
General and administrative 664 593
Depreciation and amortization 354 452
Total cost and expenses 5,808 5,012
Income (loss) from operations 60 (136)
Other income (expense):
Interest expense, net (57) (35)
Other income (expense), net 1 9
Total other income (expense) (56) (26)
Income (loss) before minority
interest, income taxes and
change in accounting principle 4 (162)
Minority interest in partnership (10) (17)
Loss before income taxes and change
in accounting principle (6) (179)
Income tax expense (2) (1)
Loss before change in
accounting principle (8) (180)
Change in accounting principle (106)
Net loss $ (114) $ (180)
Net income per share,
basic and dilutive:
Loss before cumulative effect of
change in accounting principle $(0.00) $(0.03)
Cumulative effect of change
in accounting principle $(0.02)
Net loss $(0.02) $(0.03)
March 31, 1999 Dec. 31, 1998
Balance Sheet Data (end of period):
Cash $ 2,415 $ 1,491
Total assets $19,257 $17,595
Total long-term debt (including
current portion) $ 3,166 $ 2,624
Shareholders' equity $12,656 $11,893
CONTACT: Chicago Pizza & Brewery Inc., Mission Viejo
Paul Motenko, 949/367-8616
or
Hilary Kaye Associates
Eve Gumpel, 714/426-0444 (media)
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