Founders Food & Firkins Ltd. (Nasdaq: GCFBU; “Founders”) announced today that revenues for the Company’s second quarter, the thirteen weeks ended June 25, 2000, totaled $964,084. Earnings for the period were $3,004, or breakeven on a per share basis. Revenues for the first half of the year, the twenty-six weeks ended June 25, 2000, were $1,857,329. The Company operates a casual dining restaurant featuring an on-premise brewery and its initial Granite City Food & Brewery restaurant opened in St. Cloud, Minn. on June 30, 1999, therefore comparison of restaurant operations for prior periods is not meaningful.
Steven J. Wagenheim, President and Chief Executive Officer of the Company, stated, “We are pleased to report an operating profit for our second quarter, somewhat ahead of our expectations. The results of the restaurant’s first twelve months validate that we have developed a concept that has great appeal for today’s discriminating casual diner.”
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Wagenheim noted that Founders has broken ground for the Sioux Falls, S.D. site of its second Granite City location. The restaurant will enjoy a premier location in South Dakota’s largest city, near major commercial retailers such as Home Depot, a multi-plex movie theatre, several hotels and within walking distance of the Empire Mall.
The Company’s initial public offering went effective June 6, 2000. As a result of the offering, the Company sold 1,000,000 units for $4.125 per unit, each unit consisting of one share of common stock and one redeemable Class A warrant. Net proceeds of the offering are estimated to be approximately $3,287,000.
Founders Food & Firkins Ltd. operates Granite City Food & Brewery, a full service casual dining restaurant featuring an on-premise brewery. Granite City provides fresh, high quality, made-to-order food and handcrafted beers. Granite City offers a broad menu of traditional and regional foods served in generous portions at reasonable prices, designed to offer customers an excellent value and pleasant dining experience.
The Company’s releases may contain certain non-historical forward-looking terminology such as “believes” “anticipates,” “expects” and “intends,” or comparable terminology. Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Potential purchasers of the Company’s securities are cautioned not to place undue reliance on such forward-looking statements. Please refer to the Company’s Current Report on Form 8-K, filed on July 5, 2000, for additional factors that may cause actual results to vary.
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By GlobalDataFOUNDERS FOOD & FIRKINS LTD.
CONDENSED BALANCE SHEET
(Unaudited)
June 25,
2000
Assets:
Current assets:
Cash $3,354,951
Inventory 36,388
Prepaids and other 36,922
Income taxes receivable 5,371
Total current assets 3,433,632
Property and equipment, net 3,199,612
Other 17,126
Deferred tax asset
License 162,665
Deferred offering costs
Total assets $6,813,035
Liabilities and shareholders' equity:
Current liabilities:
Accounts payable $349,355
Accrued expenses 123,946
Due to related parties 85,962
Note payable, equipment
Capital lease obligations, current portion 114,337
Total current liabilities 673,600
Capital lease obligations, net of current
portion 2,072,163
Shareholders' equity:
Common stock, 3,807,350 shares issued and
outstanding at June 25, 2000 38,074
Additional paid-in capital 4,429,890
Accumulated deficit (400,692)
4,067,272
Total liabilities and shareholders' equity $6,813,035
FOUNDERS FOOD & FIRKINS LTD.
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
Thirteen weeks ended Twenty-six weeks ended
June 27, June 25, June 27, June 25,
1999 2000 1999 2000
Restaurant revenues $964,084 $1,857,329
Restaurant costs:
Food and beverage 289,615 554,913
Labor 335,366 634,792
Direct and occupancy 171,237 358,796
Depreciation 60,245 119,803
Total restaurant costs 856,463 1,668,322
Income from restaurant
operations 107,621 189,007
Pre-opening costs $186,028 99 $194,193 4,450
General and administrative 8,900 60,492 15,149 138,366
Operating income (loss) (194,928) 47,030 (209,343) 46,191
Net interest (expense) income (6,500) (44,026) 5,420 (92,458)
Income (loss) before taxes (201,428) 3,004 (203,922) (46,267)
Income tax benefit 38,980 39,853
Net income (loss) $(162,448) $3,004 $(164,069) $(46,267)
Earnings (loss) per common
share $(.08) $.00 $(.08) $(.02)
Earnings (loss) per common
share, assuming dilution $(.08) $.00 $(.08) $(.02)
Weighted average shares
outstanding 1,969,500 2,307,489 1,969,500 2,138,495
Weighted average shares
outstanding, assuming
dilution 1,969,500 3,063,984 1,969,500 2,138,495
