Grill Concepts Reports 2004 Second Quarter Results LOS ANGELES,
Oct. 15 /PRNewswire-FirstCall/ -- Grill Concepts, Inc.
(NASDAQ:GRILE) today reported that it has filed with the SEC its
Form 10-Q for the three- and six-month periods ended June 27, 2004.
The report had been delayed to complete a review of the company's
consolidation principles applied to certain affiliates. For the
2004 second quarter, consolidated revenues, including cost
reimbursements and management and license fees, increased 9.3
percent to $15.9 million, from $14.5 million, as adjusted, in the
corresponding 2003 period. Total system-wide sales, including all
restaurants, owned, operated, managed and licensed, rose to $18.9
million in the quarter, up 8.4 percent from $17.4 million in the
2003 second quarter. Management believes total 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 indicator for assessing brand strength. The
company sustained a net loss of $163,000, or $0.03 per share, in
the 2004 second quarter, compared with net income of $36,000, or
$0.01 per diluted share, a year earlier. For the year-to-date
period, consolidated revenues, including cost reimbursements and
management and license fees, increased to $32.9 million, up 13.5
percent from $28.9 million, as restated, in the prior-year period.
Total system-wide sales, including all restaurants, owned,
operated, managed and licensed, advanced 10.9 percent to $38.5
million from $34.7 million in the 2003 six-month period. Same store
sales year-to-date increased 3.27 percent. The company posted a net
loss of $79,000, or $0.01 per share, in the first half of 2004,
compared with adjusted net income of $269,000, or $0.05 per diluted
share, in the 2003 six-month period. "The increase in revenues for
both the three and six-month periods, primarily reflects the strong
contribution from our newest Daily Grill restaurant in Bethesda,
Maryland," said Robert Spivak, president and chief executive
officer of Grill Concepts. "We are pleased with the performance to
date, which underscores the growing strength of the Daily Grill
brand." Spivak added: "We remain excited about our plans to open
Daily Grill restaurants at prominent Southern California locations,
including Long Beach prior to the end of this year, Santa Monica
during the first quarter of 2005, and downtown Los Angeles in the
second quarter of 2005. These new openings will further strengthen
the penetration in our core market and will provide exceptional,
added exposure for our restaurant brands." Results for the 2004
three- and six-month periods and for the corresponding prior-year
periods reflect a re-evaluation of certain accounting principles in
conjunction with the review by the company's independent
accountants of the company's financial statements for the first and
second quarters of 2004. Based on the results of the re-evaluation
of accounting principles, the company has filed an amended Form
10-K for the 2003 year and an amended Form 10-Q for the 2004 first
quarter to restate the results previously reported. As announced in
May 2004, upon a review of the company's stock option plan, grants
under the plan were determined to require a variable accounting
treatment that resulted in an associated non-cash charge to
compensation expense. As a result of the change in accounting
treatment, the financial statements for the 2003 year were restated
from those originally issued by the company to reflect the
expensing of employee stock options and to make other miscellaneous
adjustments. Upon a re-evaluation in September 2004 of the
accounting for the company's joint ventures, it was determined that
the terms of the company's investments in the San Jose Grill, the
Chicago Grill on the Alley and the South Bay Daily Grill, precluded
consolidation as a subsidiary, and required treatment under the
equity method. In conjunction with this re-evaluation, the company
also re-evaluated its manner of reporting certain expense
reimbursements from managed restaurants and the reporting of
certain tenant improvement allowances. Pursuant to that
re-evaluation process, it was determined that the company's
revenues should be grossed-up to reflect reimbursed expenses from
managed restaurants as revenues with an offsetting deduction to
reflect the payment of those expenses. It was also determined that
certain tenant improvement allowances that had, prior to 2003, not
been reflected on the company's balance sheet should have been
reflected as increased depreciable assets and as a long-term
liability. Based on the re-evaluation of applicable accounting
principles, the financial statements for prior periods were
restated to revise the accounting for the previously noted joint
ventures, to record costs and revenues associated with reimbursed
costs under management agreements and to make other miscellaneous
corrections. Additionally, the company corrected its initial
adoption of FASB Interpretation No. 46 (FIN 46) related to
consolidation of variable interest equities, which was effected in
the first quarter of 2004. The company also elected to apply the
retroactive adoption provisions of FIN 46 to the previously
reported amounts for 2003 so that the financial presentation is
more consistent with ongoing financial position and results of
operations. As a result of the retroactive adoption, The San Jose
Grill, the Chicago Grill on the Alley, the South Bay Daily Grill
and the Universal CityWalk Daily Grill are presented as
consolidated entities prior to fiscal 2004 with no minority
interest reflected with respect to the Chicago Grill on the Alley.
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, and the company's ability to
complete construction and open Daily Grill restaurants in Santa
Monica and downtown Los Angeles, 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 Six Months Ended June 27, June 29,
June 27, June 29, 2004 2003 2004 2003 (restated) (restated)
Revenues: Sales $12,646,000 $12,050,000 $26,156,000 $24,184,000
Cost reimbursements 2,903,000 2,217,000 6,093,000 4,284,000
Management and license fees 306,000 235,000 602,000 466,000 Total
revenues 15,855,000 14,502,000 32,851,000 28,934,000 Cost of sales
(exclusive of depreciation, presented separately below) 3,607,000
3,354,000 7,379,000 6,637,000 Gross profit 12,248,000 11,148,000
25,472,000 22,297,000 Operating expenses: Restaurant operating
expenses 8,054,000 7,444,000 16,179,000 14,751,000 Reimbursed costs
2,903,000 2,217,000 6,093,000 4,284,000 Gain on disposal of assets
(1,000) -- (1,000) (11,000) General and administrative 1,083,000
993,000 2,310,000 1,903,000 Depreciation and amortization 454,000
428,000 903,000 930,000 Pre-opening costs 1,000 -- 148,000 187,000
Total operating expenses 12,494,000 11,082,000 25,632,000
22,044,000 Income (loss) from operations (246,000) 66,000 (160,000)
253,000 Interest expense, net (66,000) (80,000) (132,000) (162,000)
Income (loss) before provision for income taxes and minority
interest (312,000) (14,000) (292,000) 91,000 Provision for income
taxes (5,000) (26,000) (28,000) (81,000) Minority interest in loss
of subsidiaries 166,000 88,000 266,000 284,000 Net income (loss)
(151,000) 48,000 (54,000) 294,000 Preferred dividends accrued
(12,000) (12,000) (25,000) (25,000) Net income (loss) applicable to
common stock $(163,000) $36,000 $(79,000) $269,000 Net income
(loss) per share applicable to common stock: Basic net income
(loss) $(0.03) $0.01 $(0.01) $0.05 Diluted net income (loss)
$(0.03) $0.01 $(0.01) $0.05 Weighted average shares outstanding:
Basic 5,590,445 5,537,071 5,568,155 5,537,071 Diluted 5,590,445
5,563,370 5,568,155 5,547,389 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 Six Months Ended June 27, June 29, June 27, June 29, 2004
2003 2004 2003 (restated) (restated) Total consolidated revenues
$15,855,000 $14,502,000 $32,851,000 $28,934,000 Managed restaurants
sales 4,027,000 3,203,000 8,048,000 6,037,000 Licensed restaurants
sales 2,221,000 2,184,000 4,269,000 4,479,000 Less reimbursed costs
(2,903,000) (2,217,000) (6,093,000) (4,284,000) Less management and
license fees (306,000) (235,000) (602,000) (466,000) Total
system-wide sales $18,894,000 $17,437,000 $38,473,000 $34,700,000
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., for
Grill Concepts, Inc., +1-310-279-5980,
Copyright
Grafico Azioni Grill Concepts (NASDAQ:GRILE)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni Grill Concepts (NASDAQ:GRILE)
Storico
Da Lug 2023 a Lug 2024