Chicago Pizza & Brewery, Inc. (Nasdaq:CHGO; Nasdaq:CHGOW) released results for the fourth quarter and year ended December 31, 2000.
Total revenues increased 61.4% for the fourth quarter and 40.0% for the year compared with the same periods in 1999. Revenues totaled $15,030,000 for the fourth quarter and $52,346,000 for the year of 2000. Contributing to the increase in revenues was an increase in same store sales of 9.8% at the restaurants operated as BJ’s for all of 1999 and 2000. Also contributing to the increase in revenues was the opening of restaurants in Arcadia, California in January 1999, Woodland Hills, California in April 1999, La Mesa, California in November 1999, Valencia, California in March 2000, Burbank, California in June 2000, West Covina, California in August 2000 and Huntington Beach, California in October 2000. Revenues at the restaurants operated as Pietro’s for all of 1999 and 2000 decreased 2.7%.
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The Company reported net income of $1,944,000 (or $0.25 diluted earnings per share) for 2000 as compared to net income of $390,000 (or $0.05 diluted earnings per share) for 1999.
The 2000 financial results included a restaurant closure expense in the amount of $1,517,000 relating to the closure of two Pietro’s restaurants, one in Oregon and one in Washington, and the anticipated closure of two BJ’s Pizza & Grill restaurants and two Pietro’s restaurants in Oregon. Also impacting the 2000 financial results was the recognition of a net tax benefit of $1,473,000 (or $0.19 diluted earnings per share) resulting primarily from the anticipated utilization of the Company’s net operating loss carryforwards.
According to Paul Motenko, Co-CEO, “The year 2000 was undeniably the best in the Company’s history. We successfully opened four new restaurants in California, including our largest brewery restaurant, experienced our fifth straight year of substantial same-store sales increases at our BJ’s restaurants, and achieved significant increases in revenues and profitability. We are particularly pleased with the results from the stores we opened during the year. They all experienced very strong initial revenues and have maintained sales levels above our expectations.”
The Company recently announced an agreement with Union Bank for $8 million in debt financing, $4 million of which will pay off existing debt, with the remaining $4 million for expansion. At the same time, the Company announced an agreement to sell 800,000 shares of common stock at $2.50 per share to certain affiliates of BJ’s Chicago, LLC, currently the Company’s largest shareholder. The Company also announced that the agreement provided BJ’s Chicago, LLC with the right to acquire up to an additional 3,200,000 shares of common stock at $2.50 per share by August 2001.
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By GlobalDataJerry Hennessy, Co-CEO stated that “While the first half of 2001 will not likely see any new store openings, the recent debt and equity financing the Company has arranged will enable us to accelerate our growth towards the end of this year and into the future. The Company has recently executed letters of intent for an 8,000 square foot brewhouse in Irvine, California and an 8,700 square foot brewery in Chandler, Arizona, both of which are anticipated to open during this year. In addition, we are aggressively pursuing additional opportunities in several market areas.”
Chicago Pizza & Brewery, Inc. operates 29 casual dining restaurants, some of which incorporate brewpubs. Fifteen of the restaurants are located in Southern California, one is located in Lahaina, Maui and one is located in Boulder, Colorado. In addition, the Company operates six BJ’s restaurants and six Pietro’s restaurants in Oregon. 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, Inc. on the web at http://www.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.
Note to Editors: Further information concerning the Company’s results of operations for the year 2000 will be provided in the Company’s Annual Report on Form 10K, to be filed with the Securities and Exchange Commission by the end of March 2001.
Chicago Pizza & Brewery, Inc.
Consolidated Financial Data – Unaudited
(In thousands, except per share data)
Year Ended
December 31,
————————-
2000 1999
Statement of Operations Data: ———– ———–
Revenues $ 52,346 $ 37,393
Cost of sales 14,456 10,491
——– ——–
Gross profit 37,890 26,902
Costs and expenses:
Labor and benefits 18,772 13,542
Occupancy 4,160 2,998
Operating expenses 5,520 4,161
General and administrative 3,922 3,218
Depreciation and amortization 2,002 1,517
Restaurant preopening/closing expense 2,460 665
——– ——–
Total cost and expenses 36,836 26,101
———– ———–
Income (loss) from operations 1,054 801
Other income (expense):
Interest expense, net (549) (251)
Other income, net 4 16
——– ——–
Total other expense (545) (235)
——– ——–
Income before minority interest,
income taxes and change in accounting 509 566
Minority interest in partnership (42) (44)
——– ——–
Income before income taxes
and change in accounting 467 522
Income tax benefit (expense) 1,477 (26)
——– ——–
Income before change in accounting 1,944 496
Cumulative effect of change in accounting — (106)
——– ——–
Net income $ 1,944 $ 390
=========== ===========
Basic and dilutive net income
(loss) per share:
Income before change in accounting $ 0.25 $ 0.07
Cumulative effect of change in accounting — $ (0.02)
——– ——–
Net income per share $ 0.25 $ 0.05
=========== ===========
Three Months Ended
December 31,
————————-
2000 1999
Statement of Operations Data: ———– ———–
Revenues $ 15,030 $ 9,314
Cost of sales 4,132 2,614
——– ——–
Gross profit 10,898 6,700
Costs and expenses:
Labor and benefits 5,453 3,491
Occupancy 1,211 762
Operating expenses 1,608 1,128
General and administrative 1,057 930
Depreciation and amortization 594 382
Restaurant preopening/closing expense 1,570 131
——– ——–
Total cost and expenses 11,493 6,824
———– ———–
Income (loss) from operations (595) (124)
Other income (expense):
Interest expense, net (224) (62)
Other income, net 6 6
——– ——–
Total other expense (218) (56)
——– ——–
Income before minority interest,
income taxes and change in accounting (813) (180)
Minority interest in partnership 13 9
——– ——–
Income before income taxes
and change in accounting (800) (171)
Income tax benefit (expense) 1,569 —
——– ——–
Income before change in accounting 769 (171)
Cumulative effect of change in accounting — —
——– ——–
Net income $ 769 $ (171)
=========== ===========
Basic and dilutive net income
(loss) per share:
Income before change in accounting $ 0.10 $ (0.01)
Cumulative effect of change in accounting — —
——– ——–
Net income per share $ 0.10 $ (0.01)
=========== ===========
December 31,
————————-
2000 1999
Balance Sheet Data (end of period): ———– ———–
Cash $ 1,405 $ 189
Total assets $ 29,992 $ 19,144
Total long-term debt (including
current portion) $ 6,059 $ 2,861
Shareholders’ equity $ 15,043 $ 13,099
