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Average Restaurant Weekly Revenues Increased 9.2%
MINNEAPOLIS, February 28, 2002 - Founders Food & Firkins Ltd.(Nasdaq: GCFB) today reported the results of operations for 2001.
For the year ended December 30, 2001 total revenue grew 116% to $8,885,036 compared to $4,105,357 for the last fiscal year. The increase in revenues was due principally to the addition of the Company's second restaurant in Sioux Falls, SD, which opened December 18, 2000 and its third restaurant in Fargo, ND, which opened November 20, 2001. The Company reported a net loss of ($428,020), or ($0.11) per share for the year ended December 30, 2001 compared to a net loss of ($416,576), or ($0.14) per share for the year ended December 31, 2000.
Revenues for the thirteen-week period ended December 30, 2001 totaled $2,534,893, an increase of 115% when compared to the $1,176,892 recorded for the fourteen weeks ended December 31, 2000. For the quarter, the Company reported a net loss of ($328,898), or ($0.09) per share. During the fourth quarter of 2000, the Company reported a net loss of ($393,630), or ($0.10) per share.
"We are very pleased with our continued strong revenue growth," said Steve Wagenheim, Founders Food & Firkins' President and CEO. "Revenues at our newest restaurant in Fargo, North Dakota continue to be strong and company-wide our average weekly revenues per restaurant grew from $74,000 last year to over $81,000 this year. With our Sioux Falls restaurant in operation for the full year, and Fargo open for five weeks of 2001, we increased our restaurant weeks from 55 in 2000 to 109 weeks in 2001. In addition to increased revenue, we're beginning to see cost reduction and quality benefits from our new patent-pending brewing process, Fermentus Interruptus™," Wagenheim said. "This process of transporting unfermented wort from Sioux Falls to Fargo and then completing the brew process in Fargo has met our expectations to date. We look forward to implementing this process as we explore additional markets for expansion." Wagenheim said the Company is currently considering a number of Midwest sites, including Omaha and Lincoln, Nebraska.
Founders Food & Firkins Ltd. operates three Granite City Food & Brewery casual dining restaurants featuring on-premise breweries. Granite City Food & Brewery provides fresh, high quality, made-to-order food and handcrafted beers. Its broad menu offers traditional and regional foods served in generous portions at reasonable prices, affording guest an excellent value and great dining experience. Its first Granite City location, in St. Cloud, MN, opened in June 1999. Its second location opened in Sioux Falls, SD, in December 2000, and its third location opened in November 2001 in Fargo, ND.
Certain statements made in this press release of a non-historical nature constitute "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated. Such factors include, but are not limited to, changes in economic conditions, changes in consumer preferences or discretionary consumer spending, a significant change in the performance of any existing units, the ability to obtain financing for, and complete construction of, additional restaurants at acceptable costs, our ability to implement and execute the Fermentus Interruptus™ process and the risks and uncertainties described in the Company's Form 10-KSB/A Report as filed for the year ended December 31, 2000 with the Securities and Exchange Commission.
-financial statements follow
FOUNDERS FOOD & FIRKINS LTD CONDENSED STATEMENTS OF OPERATIONS
| |
4th Quarter (unaudited) |
|
Fiscal Year (audited) |
| |
2000 |
2001 |
|
2000 |
2001 |
| Restaurant Revenues |
$1,176,892 |
$2,534,893 |
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$4,105,357 |
$8,885,036 |
| Restaurant Costs: |
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| Food and beverage |
348,409 |
704,384 |
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866,336 |
1,882,416 |
| Labor |
404,256 |
856,077 |
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1,351,905 |
2,948,245 |
| Direct and occupancy |
394,247 |
550,516 |
|
982,098 |
1,876,572 |
Depreciation and
amortization |
60,057 |
163,386 |
|
239,880 |
512,321 |
| Total restaurant costs |
1,206,969 |
2,274,363 |
|
3,788,628 |
7,923,938 |
Income (loss) from
Restaurant Operations |
(30,077) |
260,530 |
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316,729 |
961,098 |
| Pre-opening Costs |
208,407 |
2009,938 |
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215,570 |
228,358 |
General and
Administrative |
136,637 |
243,406 |
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404,796 |
783,454 |
| Operating loss |
(375,121) |
(192,814) |
|
(303,637) |
(50,714) |
| Net other expense |
(18,509) |
(136,084) |
(112,939) |
(377,306) |
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| Net loss |
($393,630) |
($328,898) |
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($416,576) |
($428,020) |
| Loss per common share, basic and diluted |
($0.10) |
($0.09) |
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($0.14) |
($0.11) |
| Weighted average shares outstanding, basic and diluted |
3,807,350 |
3,807,350 |
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2,981,421 |
3,807,350 |
SELECTED BALANCE SHEET AT DECEMBER 31, 2001:
| Current Assets |
$616,229 |
| Total assets |
$10,621,690 |
| Current liabilities |
1,930,877 |
| Total liabilities |
7,366,279 |
| Shareholders' equity |
3,255,411 |
CONTACT:
Steven J. Wagenheim
President and Chief Executive Officer
(952) 525-2070 ir (612) 751-3331
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