Chicago Pizza & Brewery Inc. (Nasdaq: CHGO; Nasdaq: CHGOW) released results for the third quarter ended Sept. 30, 2000.
Revenues totaled $14,791,000 for the third quarter of 2000, an increase of 47.3% as compared with the same period in 1999. Contributing to the increase in revenues was an increase in same store sales of 7.6% at the restaurants operated as BJ’s for all of both periods. Also contributing to the increase in revenues was the opening of restaurants in La Mesa, Calif. in November 1999, Valencia, Calif. at the end of March 2000, Burbank, Calif. in June 2000 and West Covina, Calif. in August 2000.
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The company reported a 137% increase in net income to $784,000 for the third quarter of 2000 as compared with $331,000 for 1999. This increase was achieved despite incurring preopening costs of $318,000 during the third quarter of 2000. Preopening costs during the same quarter of 1999 totaled $43,000.
“To say that we are thrilled with our results for this quarter would be an understatement,” commented Paul Motenko, co-CEO. “We feel that the financial results for our third quarter represent the culmination of our efforts over the past couple of years. We have successfully opened five restaurants in the past 12 months, including the most recent in Huntington Beach, California on October 18. Even though they are very new, these restaurants are already having a positive impact on our profitablility. As these restaurants continue to mature, their contribution should be even greater.”
Per Jerry Hennessy, co-CEO: “Although we are pleased with the initial performance of all of the restaurants we have opened this year, our West Covina store has been a particular highlight. In its second week of operations, West Covina set a company record for weekly revenues and has been our highest volume store ever since.”
At 12,000 square feet, the West Covina restaurant houses the company’s third brewery in Southern California, and its largest.
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By GlobalDataCash flow at the store level (revenues less food cost, labor cost, occupancy and operating expenses) increased by $1,060,000 to $2,812,000 in the third quarter of 2000 from $1,752,000 for the comparable period of 1999.
Revenues for the nine months ended Sept. 30, 2000 increased 32.9%, to $37,316,000 from $28,079,000 for the first nine months of 1999. Net income for the first nine months of 2000 increased to $1,175,000 from $561,000 for the comparable period in 1999.
Ernest Klinger, president, stated: “We have successfully opened five restaurants in the last 12 months, and we are planning our next opening for sometime after the first quarter of next year. We are going to utilize the next few months to assimilate the new units and further refine our operating systems. We believe this interim period of time will allow us to properly address both the rapid growth we have experienced during the last year and that which we anticipate for the future.”
Chicago Pizza & Brewery Inc. operates 30 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, Colo. In addition, the company operates six BJ’s restaurants and seven 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 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.
Chicago Pizza & Brewery Inc.
Consolidated Financial Data - Unaudited
(in thousands, except per share data)
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
2000 1999 2000 1999
Statement of Operations Data:
Revenues $14,791 $10,039 $37,316 $28,079
Cost of sales 4,120 2,862 10,324 7,877
Gross profit 10,671 7,177 26,992 20,202
Costs and expenses:
Labor and benefits 5,219 3,543 13,319 10,051
Occupancy 1,122 776 2,949 2,236
Operating expenses 1,518 1,106 3,912 3,032
Preopening costs 318 44 776 365
General and administrative 928 872 2,865 2,288
Depreciation and amortization 520 392 1,408 1,136
Restaurant Closing Expense -- -- 114 169
Total cost and expenses 9,625 6,733 25,343 19,277
Income from operations 1,046 444 1,649 925
Other income (expense):
Interest expense, net (153) (64) (325) (188)
Other expense, net -- -- (2) 10
Total other expense (153) (64) (327) (178)
Income before minority
interest, income taxes
and change in accounting 893 380 1,322 747
Minority interest in
partnership (47) (34) (55) (54)
Income before income taxes
and change in accounting 846 346 1,267 693
Income tax expense (62) (15) (92) (26)
Income before change
in accounting 784 331 1,175 667
Cumulative effect of
change in accounting -- -- -- (106)
Net income $784 $331 $1,175 $561
Basic and dilutive
net income (loss)
per share:
Income before change
in accounting $0.10 $ 0.04 $0.15 $0.09
Cumulative effect of
change in accounting -- -- -- ($0.01)
Net income
(loss) per
common share $0.10 $ 0.04 $0.15 $0.08
Sept. 30, 2000 Dec. 31, 1999
Balance Sheet Data (end of period):
Cash $ 1,098 $ 189
Total assets $27,388 $19,144
Total long-term debt
(including current portion) $ 6,260 $ 2,861
Shareholders' equity $14,274 $13,099
