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Revenues Increase 52% Over 1st Quarter 2001
MINNEAPOLIS, April 29, 2002 - Founders Food & Firkins Ltd.(Nasdaq: GCFB) today reported the results of operations for 2001.
For the quarter ended March 31, 2002 total revenue grew 52% to $3,114,340 compared to $2,053,339 for the first quarter of 2001. The increase in revenues was due principally to the addition of the Company's third restaurant, which opened in Fargo, North Dakota on November 20, 2001. The Company reported a net loss of ($29,669), or ($0.01) per share for the quarter ended March 31, 2002, compared to a net loss of ($48,649), or ($0.01) per share for the first quarter of 2001.
"We are pleased to report strong revenue growth during the first quarter and an increase in operating income of 216%," said Steve Wagenheim, Founders Food & Firkins' President and CEO. "We are beginning to experience the increased purchasing power that operating multiple units affords us, and are looking forward to greater economies of scale with the use of Fermentus InterruptusT. We believe that the expansion strategy we intend to pursue in the Midwest will enable us to use Fermentus Interruptus to its full potential, allowing us to produce and serve our handcrafted beers efficiently and at a lower cost." Fermentus Interruptus is a process of transporting unfermented wort from a central location to other locations where fermentation takes place and the brew process is completed. Wagenheim continued, "We believe Fermentus Interruptus gives us the ability to service up to 15 locations from one wort production site."
Founders Food & Firkins Ltd. operates three Granite City Food & Brewery® casual dining restaurants featuring made-from-scratch food and handcrafted beers. Its broad menu offers traditional and regional foods served in generous portions at reasonable prices, affording guests an excellent value and great dining experience. Its first Granite City location, in St. Cloud, MN, opened in June 1999. The Company's second location opened in Sioux Falls, SD, in December 2000, and the 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 Fermentus Interruptus and the risks and uncertainties described in the Company's Form 10-KSB Report for the year ended December 30, 2001 as filed with the Securities and Exchange Commission.
-financial statements follow
FOUNDERS FOOD & FIRKINS LTD CONDENSED STATEMENTS OF OPERATIONS (unaudited)
| |
Thirteen Weeks Ended |
| |
April 1, 2001 |
March 31, 2002 |
| Restaurant Revenues |
$2,053,339 |
$3,114,340 |
| Restaurant Costs: |
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| Food and beverage |
628,342 |
906,752 |
| Labor |
680,538 |
1,075,127 |
| Direct and occupancy |
452,110 |
663,715 |
| Total restaurant costs |
1,760,990 |
2,645,594 |
| Income from Restaurant Operations |
292,349 |
468,746 |
General and
Administrative |
157,126 |
215,424 |
| Depreciation and amortization |
115,410 |
190,738 |
| Operating income |
19,813 |
62,539 |
| Interest: |
|
|
| Income |
15,607 |
157 |
| Expense |
(84,069) |
(139,552) |
| Other income, net |
- |
47,187 |
| Net other expense |
(68,462) |
(92,208) |
| Net loss |
($48,649) |
($29,669) |
| Loss per common share, basic and diluted |
($0.01) |
($0.01) |
| Weighted average shares outstanding, basic and diluted |
3,807,350 |
3,807,394 ) |
SELECTED BALANCE SHEET AT MARCH 31, 2002:
| Current Assets |
$477,276 |
| Total assets |
$10,317,539 |
| Current liabilities |
1,727,309 |
| Total liabilities |
7,090,147 |
| Shareholders' equity |
3,227,392 |
CONTACT:
Steven J. Wagenheim
President and Chief Executive Officer
(952) 525-2070 ir (612) 751-3331
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