USA: California Pizza Kitchen reports record financial results for the first quarter ended April 1, 2001
- Total revenues up 18% to $57.0 million
- Operating income before pre-opening up 26% to $5.3 million compared to pro-forma operating income before pre-opening in the first quarter of 2000
- Net income up 26% to $3.3 million compared to pro-forma net income for the first quarter of 2000
- Fully diluted net income per share up 29% to $.18, compared to pro-forma diluted net income per share for the first quarter of 2000
- Comparable restaurant sales up 6.3%
"I am particularly pleased with the increase in same store sales of 6.3% for the first quarter of 2001," said Fred Hipp, CEO and President. "We achieved this same store sales increase despite a much colder and wetter winter than in the past year. Additionally, the investments we have made in personnel and systems have allowed us to leverage our same store sales into better operating margins despite higher energy costs this year compared to the prior year," added Hipp.
Average weekly sales for the Company's full service restaurants increased 4.5% to $53,996 in the first quarter of fiscal 2001 from $51,692 for the same quarter last year.
During the first quarter, the Company opened one new full service restaurant (Town Center Corte Madera in Northern California). The Company plans to open five new full service restaurants in the second quarter, of which two have already opened (Creve Couer, Missouri and Santa Clara, Northern California). The remaining three restaurants for the second quarter are all under construction. For fiscal 2001, the Company plans to open a minimum of 14 new restaurants.
California Pizza Kitchen, Inc., founded in 1985, is a leading casual dining chain in the premium pizza segment. The Company's full service restaurants feature an imaginative line of innovative hearth-baked pizzas, including the original BBQ Chicken Pizza, and a broad selection of distinctive pastas, salads, soups, and sandwiches. The average guest check is approximately $10.85. The chain operates, licenses or franchises 115 restaurants of which 85 are company-owned and 30 operate under franchise or license agreements. The Company also has a strategic alliance with Kraft Pizza Company to manufacture and distribute a line of California Pizza Kitchen premium frozen pizzas.
California Pizza Kitchen can be found on the World Wide Web at www.cpk.com.
This press release includes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements are not guarantees of future performance and, therefore, undue reliance should not be placed on them. Forward-looking statements can be affected by inaccurate assumptions or by known or unknown risks and uncertainties. Our actual results may differ materially from the expectations referred to herein. Among the key factors that may have a direct bearing on our operating results, performance and financial condition are the execution of our expansion strategy, the continued availability of qualified employees, the maintenance of reasonable food and supply costs and numerous other matters discussed in the Company's filings with the Securities and Exchange Commission. California Pizza Kitchen undertakes no obligation to update or alter its forward-looking statements whether as a result of new information, future events or otherwise.
California Pizza Kitchen Selected Unaudited Consolidated Financial and Operating Data (Dollars in thousands, except for per share and operating data) Quarter Ended April 1, April 2, 2001 2000 Statement of Operations Data Revenues Restaurant sales $56,376 $47,711 Franchise and other revenues 651 555 Total revenues 57,027 48,266 Restaurant costs and expenses Cost of sales 13,797 11,799 Labor 20,299 17,086 Direct operating and occupancy 11,257 9,582 Total restaurant operating costs 45,353 38,467 General and administrative 3,669 3,550 Depreciation and amortization 2,740 2,289 Pre-opening 392 136 Loss on impairment of property and equipment and store closures -- 1,839 Operating income 4,873 1,985 Other income (expense) Interest income (expense) 216 (761) Total other income (expense), net 216 (761) Income before income tax provision 5,089 1,224 Income tax provision (1,781) (428) Net income 3,308 796 Redeemable preferred stock accretion -- (1,458) Net income (loss) attributable to common shareholders $ 3,308 $ (662) Net income (loss) per common share Basic $ 0.18 $ (0.06) Diluted $ 0.18 $ (0.06) Shares used in computing net income (loss) per common share (in thousands) Basic 18,137 10,897 Diluted 18,572 11,216 Pro Forma Data Net income attributable to common shareholders (a) $3,308 $2,632 Net income per common share Basic $ 0.18 $ 0.15 Diluted $ 0.18 $ 0.14 Shares used in computing net income per common share (in thousands) (b) Basic 18,137 17,876 Diluted 18,572 18,207 Operating Data System-wide restaurants open at end of quarter 113 97 Company-owned restaurants open at end of quarter 83 71 Average weekly company-owned full service restaurant sales for the quarter $53,996 $51,692 Comparable company-owned restaurant sales increase 6.3% 6.8% Quarter Ended April 1, April 2, 2001 2000 Statement of Operations Data Revenues Restaurant sales 98.9% 98.9% Franchise and other revenues 1.1 1.1 Total revenues 100.0 100.0 Restaurant costs and expenses (c) Cost of sales 24.5 24.7 Labor 36.0 35.8 Direct operating and occupancy 20.0 20.1 Total restaurant operating costs 80.4 80.6 General and administrative 6.4 7.4 Depreciation and amortization 4.8 4.7 Pre-opening 0.7 0.3 Loss on impairment of property and equipment and store closures -- 3.8 Operating income 8.5 4.1 Other income (expense) Interest income (expense) 0.4 (1.6) Total other income (expense), net 0.4 (1.6) Income before income tax provision 8.9 2.5 Income tax provision (3.1) (0.9) Net income 5.8% 1.6% Selected Consolidated Balance Sheet Information (Dollars in thousands) Selected Consolidated Balance Sheet April 1, December 31, Information 2001 2000 Cash and cash equivalents $ 16,661 $ 12,649 Total assets 123,085 116,977 Total debt, including current portion 37 47 Shareholders' equity 101,650 92,318 (a) Pro forma net income attributable to common shareholders for the quarter ended April 2, 2000 is the result of the elimination of $495,000 of interest expense, net of taxes, related to the repayment of bank debt upon the closing of our initial public offering, the elimination of compensation expense of $146,000, net of taxes, due to the amendment of our co-founders' employment agreements, the elimination of $1.2 million, net of taxes, related to the write-down of one of our properties in accordance with FAS 121 and the elimination of $1.5 million in preferred stock accretion upon the conversion of our preferred stock. (b) Pro forma share information gives effect, as of the beginning of each period, to the sale of 5,300,000 shares of common stock by us in our initial public offering, the conversion of all outstanding shares of our preferred stock into 1,580,938 shares of common stock and our repurchase of 1,000 shares from our majority shareholder, both pursuant to a plan of recapitalization, and the issuance of 110,696 shares of our common stock upon the exercise of options held by our Chief Executive Officer and President. (c) Percentages are expressed as a percentage of total revenues, except for restaurant costs and expenses, which are expressed as a percentage of restaurant sales.
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