Grill Concepts (NASDAQ:GRILE)
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Grill Concepts Reports Higher Revenues for 2004 First Quarter;
Same Store Sales Increase 7.8%
- Earnings Impacted by Expensing of Options -
LOS ANGELES, May 26 /PRNewswire-FirstCall/ -- Grill Concepts, Inc.
(NASDAQ:GRIL) today reported growth of 11.2 percent in consolidated revenues
with a 7.8 percent increase in same store sales for the three-month period
ended March 28, 2004 as compared to the first quarter of 2003.
Consolidated revenues, including management and license fees advanced to $13.3
million in the first quarter of 2004 from $11.9 million in the year-earlier
period. Total systemwide sales, including all restaurants, owned, operated,
managed and licensed, rose 13.9 percent in the quarter to $19.7 million from
$17.3 million in 2003. Management believes total systemwide sales is a key
measurement for assessing the current strength of The Grill on the Alley and
Daily Grill restaurant brands against historical performance.
Grill Concepts previously announced that as a result of a recent review of its
stock option plan, a determination was made that grants under the plan require
variable accounting treatment. This accounting treatment reflects the
difference between the current market price of the company's stock and the
option's exercise price and results in an associated non-cash charge to
compensation expense. As a result of the change in accounting treatment, the
company filed an amended Form 10-K for the period ended December 28, 2003
restating the financial results for the 2003 full year to reflect the expensing
of employee stock options.
For the 2004 first quarter, the company achieved net income of $87,000, or
$0.01 per diluted share, which includes stock option compensation expense of
$187,000. This compares with restated net income of $342,000, or $0.06 per
diluted share, a year earlier, including stock option compensation expense of
$5,000.
"From an operating perspective, we are off to a strong start in 2004," said
Robert Spivak, president and chief executive officer of Grill Concepts. "The
strong revenue growth demonstrates continued appreciation for our brand and
reinforces our confidence as the year unfolds."
Same store sales for the Daily Grill restaurants were 8.7 percent higher
compared with a year ago, and The Grill on the Alley restaurants achieved an
increase of 6.1 percent in comparable sales over the first quarter of 2003.
Spivak said first quarter revenues reflected another period of improved check
averages and increased guest counts, leading to higher weighted average weekly
sales of 6.1 percent at The Grill restaurants and 2.8 percent at Daily Grill
restaurants.
During the first quarter, the company opened its fourth Daily Grill in the
greater Washington, D.C. area in the 390-room Hyatt Regency at One Bethesda
Metro Center. Recently, Grill Concepts announced plans to open a Daily Grill
restaurant in the heart of Santa Monica's entertainment hub in the Colorado
Center, a property leased and managed by Tishman Speyer Properties, formerly
known as MGM Plaza, and now home to tenants Metro-Goldwyn-Mayer Studios, CBS
Enterprises and HBO.
About Grill Concepts, Inc.
Grill Concepts owns and manages upscale casual and fine dining, full service
restaurants under two core brand names: The Grill on the Alley and Daily Grill.
The company operates 23 restaurants including four The Grill on the
Alley-branded restaurants in Beverly Hills, Hollywood, San Jose, California,
and Chicago, as well as 19 Daily Grill restaurants in Southern and Northern
California, the Washington, D.C. metropolitan region, Houston, Texas, Portland,
Oregon and Skokie, Illinois.
This news release contains forward-looking statements, which are based on
current operations, plans and expectations. Such statements include, but are
not limited to, the company's ability to continue expanding its restaurant
network, among other factors. Actual results may differ materially from these
statements due to risks and uncertainties beyond the company's control, which
are detailed from time to time in the company's filings with the United States
Securities and Exchange Commission.
GRILL CONCEPTS, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(unaudited)
Three Months Ended
March 28, March 30,
2004 2003
(restated)
Revenues:
Sales $12,958,000 $11,667,000
Management and license fees 296,000 255,000
Total revenues 13,254,000 11,922,000
Cost of sales 3,630,000 3,174,000
Gross profit 9,624,000 8,748,000
Costs and expenses:
Restaurant operating expenses 7,776,000 6,997,000
Gain on disposal of assets -- (12,000)
General and administrative 1,227,000 910,000
Depreciation and amortization 386,000 432,000
Pre-opening costs 147,000 187,000
Total operating expenses 9,536,000 8,514,000
Income from operations 88,000 234,000
Interest expense, net (34,000) (48,000)
Income before provision for income
taxes, equity in loss of joint venture
and minority interest 54,000 186,000
Provision for income taxes (23,000) (55,000)
Minority interest in loss of
subsidiaries 60,000 216,000
Equity in loss of joint venture (4,000) (5,000)
Net income $87,000 $342,000
Preferred dividends accrued or paid (13,000) (13,000)
Net income applicable to common
stockholders $74,000 $329,000
Net income per share
Basic $0.01 $0.06
Diluted $0.01 $0.06
Weighted average shares outstanding
Basic 5,545,864 5,537,071
Diluted 6,192,910 5,537,071
Note: The consolidated financial statement for the three months ended
March 30, 2003 have been restated from those originally issued by
the company to reflect the accounting for employee stock options
using variable accounting treatment.
GRILL CONCEPTS, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-U.S. GAAP MEASURES TO U.S. GAAP
(unaudited)
Systemwide Sales
The following table reconciles Grill Concepts' total consolidated
revenues, prepared on the basis of GAAP, to total systemwide sales for
the periods presented:
Three Months Ended
March 28, March 30,
2004 2003
Total consolidated revenues $13,254,000 $11,922,000
Managed restaurants sales 4,572,000 3,302,000
Licensed restaurants sales 2,142,000 2,295,000
Less management and license fees (296,000) (255,000)
Total systemwide sales $19,672,000 $17,264,000
DATASOURCE: Grill Concepts, Inc.
CONTACT: Daryl E. Ansel, Chief Financial Officer of Grill Concepts,
Inc., +1-310-820-5559; or Roger S. Pondel or Angie H. Yang of PondelWilkinson
Inc., +1-323-866-6004, , for Grill Concepts, Inc.
Web site: http://www.pondel.com/