Grill Concepts (NASDAQ:GRILE)
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Grill Concepts Reports Improved Operating Results for 2004 Fourth
Quarter
- Restates for Lease Accounting and Files Form 10-K -
LOS ANGELES, May 23 /PRNewswire-FirstCall/ -- Grill Concepts, Inc.
(NASDAQ:GRILE) today reported net income of $230,000, or $0.04 per diluted
share, for the 2004 fourth quarter, up from adjusted net income of $120,000, or
$0.02 per diluted share, in the year-earlier period.
The company also said that it has filed its Form 10-K for fiscal 2004,
following the completion of the review of its accounting treatment for
operating leases, estimated useful lives of assets and complimentary and
promotional sales.
For the 2004 fourth quarter, consolidated revenues, including cost
reimbursements and management and license fees, rose 12.8 percent to $17.1
million from $15.2 million, as adjusted, for the same period in 2003. Total
system-wide sales, including sales of non-consolidated restaurants operated
under license, management or partnership agreements, grew to $18.1 million in
the 2004 fourth quarter from $16.7 million in the prior-year period.
Management believes system-wide sales, computed by adding revenues of
unconsolidated restaurants to total revenues and subtracting cost
reimbursements and management and license fees, is a key measurement for
assessing brand strength. Same store sales for the 2004 fourth quarter rose
4.2 percent.
For full year ended December 26, 2004, consolidated revenues, including cost
reimbursements and management and license fees, advanced 12.4 percent to $63.7
million from $56.6 million a year ago, as adjusted. Total system-wide sales,
including sales of non-consolidated restaurants operated under license,
management or partnership agreements, increased 9.4 percent to $74.3 million
from $67.9 million in 2003. Same store sales for the year increased 3.7
percent.
Net income for the year amounted to $38,000, or $0.00 per share, compared with
adjusted net income of $128,000, or $0.01 per diluted share, in 2003.
"We are pleased with the performances of the latest additions to our expanded
network of Daily Grill-branded restaurants, which include the Bethesda Daily
Grill restaurant, which opened during the first quarter of 2004 and the Long
Beach Daily Grill restaurant, which opened during the fourth quarter," said
Robert Spivak, president and chief executive officer of Grill Concepts. "Our
Bethesda Daily Grill restaurant, in particular, has delivered exceptional
results since its opening and has fueled higher revenues throughout 2004.
"Our newest restaurant -- the Santa Monica Daily Grill, which opened its doors
in the first quarter of 2005 -- is experiencing extremely high lunch volumes
and already has the most active bar of all of our restaurants in Southern
California. These trends, together with improved comparative same store sales
at our Daily Grill and Grill on the Alley restaurants, exemplifies the mounting
strength of our restaurant brands and gives us greater confidence in the
prospects for our Downtown Daily Grill restaurant, expected to open in downtown
Los Angeles during the second quarter of this year," Spivak added.
As previously announced, the company's 2004 Form 10-K reflects adjusted interim
quarterly results conforming with U.S. generally accepted accounting practices
(GAAP) as expressed in a February 7, 2005 letter by the Chief Accountant of the
Securities and Exchange Commission (SEC) to the American Institute of Certified
Public Accountants, plus correcting the estimate of useful lives of assets and
correctly accounting for complimentary and promotional sales. In order to
ensure consistent application of GAAP, the company also restated its financial
statements for the 2002 and 2003 fiscal years. These adjustments to lease
accounting policies are more fully described in the company's Form 10-K filed
today with the SEC.
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 24 restaurants including four The Grill on the
Alley-branded restaurants in Beverly Hills, Hollywood, San Jose, California,
and Chicago, as well as 20 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. 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.
CONTACTS: Philip Gay
Chief Financial Officer
Grill Concepts, Inc.
(310) 820-5559
Roger Pondel/Angie Yang
PondelWilkinson Inc.
(310) 279-5980
Grill Concepts, Inc. and Subsidiaries
Consolidated Condensed Statements of Operations
Three Months Ended Year Ended
December 26, December 28, December 26, December 28,
2004 2003 2004 2003
(restated) (restated)
Revenues:
Sales $13,023,000 $11,741,000 $49,938,000 $45,858,000
Cost
reimbursements 3,731,000 3,114,000 12,439,000 9,728,000
Management and
license fees 372,000 328,000 1,282,000 1,037,000
Total revenues 17,126,000 15,183,000 63,659,000 56,623,000
Operating expenses:
Cost of sales
(exclusive of
depreciation,
presented
separately) 3,719,000 3,502,000 14,465,000 13,274,000
Restaurant
operating
expenses 7,908,000 7,023,000 30,552,000 28,050,000
Reimbursed costs 3,731,000 3,158,000 12,439,000 9,772,000
General and
administrative 1,170,000 947,000 4,472,000 3,696,000
Depreciation
and amortization 557,000 385,000 2,005,000 1,816,000
Pre-opening
expenses 19,000 (5,000) 167,000 182,000
Gain on sale
of assets 1,000 -- (2,000) (11,000)
Total
operating
expenses 17,105,000 15,010,000 64,098,000 56,779,000
Income (loss)
from operations 21,000 173,000 (439,000) (156,000)
Interest
expense, net 81,000 86,000 (272,000) (331,000)
Income (loss)
before provision
for income tax
and minority
interest (60,000) 87,000 (711,000) (487,000)
Provision for
income taxes (31,000) 21,000 (65,000) (89,000)
Income (loss)
before minority
interest (91,000) 66,000 (776,000) (576,000)
Minority
interest in
loss of
subsidiaries 321,000 54,000 814,000 704,000
Net income 230,000 120,000 38,000 128,000
Preferred
dividends
accrued (12,000) (12,000) (50,000) (50,000)
Net income
applicable to
common stock $218,000 $108,000 $(12,000) $78,000
Net income
(loss) per
share applicable
to common stock:
Basic $0.04 $0.02 $(0.00) $0.01
Diluted $0.04 $0.02 $(0.00) $0.01
Average weighted
shares
outstanding:
Basic 5,650,146 5,537,071 5,608,541 5,537,071
Diluted 5,680,285 5,714,770 5,608,541 5,640,842
GRILL CONCEPTS, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-U.S. GAAP MEASURES TO U.S. GAAP
(unaudited)
System-wide Sales
The following table reconciles Grill Concepts' total consolidated
revenues, prepared on the basis of GAAP, to total system-wide sales for
the periods presented:
Three Months Ended Year Ended
December 26, December 28, December 26, December 28,
2004 2003 2004 2003
(restated) (restated)
Total
consolidated
revenues $17,126,000 $15,183,000 $63,659,000 $56,623,000
Managed
restaurants
sales 4,082,000 3,269,000 16,382,000 13,256,000
Licensed
restaurants
sales 1,862,000 2,222,000 8,003,000 8,773,000
Less
reimbursed
costs (3,731,000) (3,114,000) (12,439,000) (9,728,000)
Less
management
and license
fees (372,000) (328,000) (1,282,000) (1,037,000)
Total
system-wide
sales $18,113,000 $16,683,000 $74,323,000 $67,887,000
DATASOURCE: Grill Concepts, Inc.
CONTACT: Philip Gay, Chief Financial Officer of Grill Concepts, Inc.,
+1-310-820-5559; or Roger Pondel, or Angie Yang, both of PondelWilkinson Inc.,
+1-310-279-5980, , for Grill Concepts, Inc.