New York-based developer, owner and operator of high-end, high-volume restaurants, the Smith & Wollensky Restaurant Group, has announced its financial results for the Q4 and FY ended 31 December 2001.
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Q4 financial highlights
*The company achieved profitability, with net income of US$340,000 or US$.04/diluted share (before extraordinary item of US$.01/share), compared to a net loss of US$2.3m or US$.73 in the final quarter of 2000 (Q4 2000 included a US$2.4m charge to close the Maloney & Porcelli restaurant in Washington, DC).
*Revenues were US$18.8m, a 15.6% decrease from the Q4 of 2000, and a significant improvement over the 27.3% decline in the Q3 year on year.
*Net cash provided by operating activities was approximately US$1.9m in the Q4 of 2001.
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By GlobalData2001 financial highlights
*Revenues were US$70.6m, a 13.3% decline from US$81.5m in 2000.
*Comparable sales from owned Smith & Wollensky units (those in operation for 15 months) were US$44.9m for the year, down 10.6% from US$50.2m last year.
*Net loss for the year was US$3.5m, US$.51/diluted share (before a one-time extraordinary after-tax charge of US$801,000, US$.12/diluted share due to the early repayment of debt), compared to a net loss of US$4.9m, US$1.58/diluted share, in last year’s period.
*Closed the year with about US$8m in cash and interest-bearing investments, US$1.8m in long-term debt and shareholders’ equity/book value of US$56.6m.
Alan Stillman, chairman and CEO, stated: “This year was the most challenging for Smith & Wollensky, as our business was impacted by the slowdown in the nation’s economy and the decline in travel, which was exacerbated by the acts of terrorism.
“In spite of these circumstances, each of our owned restaurants produced positive EBITDA for the year. Furthermore, we are optimistic based on the sales levels thus far this year.”
Recent results have indicated continued recovery, as while January sales were 13.5% below January of 2001, February sales increased 0.7% year on year.
Stillman added: “We are moving ahead with our planned expansion, while continuing to evaluate the current environment as more favorable opportunities for real estate deals become available.
“We anticipate opening three to five restaurants in the next 21 months. In this regard, construction has commenced on our newest location in Easton Town Center, Columbus, Ohio, which is on track to open in July. We also continue to explore prospects in Boston, Dallas, Houston, Denver, Los Angeles, Richmond, Charlotte and Scottsdale, as well as other locations.”
Stillman concluded, “In these difficult economic times, a strong financial position and aggressive marketing campaign are especially important.
“While the state of the economy remains uncertain, we are enthusiastic about the company’s long-term prospects due to our continued improvement in sales and operating results, solid balance sheet, nationally recognized brand name, and experienced restaurant and executive management team.”
