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Revenues Increase 52% Over 2nd Quarter 2001
MINNEAPOLIS, July 25, 2002 - Founders Food & Firkins Ltd. (Nasdaq: GCFB) today reported the results of operations for the second quarter of 2002.
For the quarter ended June 30, 2002 total revenue grew 52% to $3,162,279 compared to $2,079,576 for the second 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 net income of $5,175, or nil per share for the quarter ended June 30, 2002, compared to net income of $20,155, or $0.01 per share for the second quarter of 2001. Overall profitability in the second quarter of 2002 was somewhat impacted by the addition of several training and opening personnel hired for the Company's anticipated future expansion.
For the twenty-six weeks ended June 30, 2002, total revenue grew 52% to $6,276,619 compared to $4,132,915 for the same period last year. During this 2002 period, average weekly sales for the Company's three locations increased to approximately $80,500 per unit. The Company reported a net loss of ($24,494), or ($0.01) per share for the two quarters ended June 30, 2002 compared to a net loss of ($28,494), or ($0.01) per share for the same period one year ago.
"We are pleased with the great response our restaurants have received during the first and second quarters of 2002. Our higher weekly average unit volume illustrates the popularity of our product and our strong value proposition," said Steve Wagenheim, Founders Food & Firkins' President and CEO. "We are looking forward to enhancing our unit volume levels in the third quarter with additional summer outdoor seating."
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 |
|
Twenty-six Weeks Ended |
| |
July 1, 2001 |
June 30, 2002 |
|
July 1, 2001 |
June 30, 2002 |
| Restaurant Revenues |
$2,079,576 |
$3,162,279 |
|
$4,132,915 |
$6,276,619 |
| Restaurant Costs: |
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| Food and beverage |
608,407 |
908,625 |
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1,236,749 |
1,815,378 |
| Labor |
678,722 |
1,076,435 |
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1,359,260 |
2,151,562 |
| >Direct and occupancy |
405,522 |
629,289 |
|
857,632 |
1,293,004 |
| Total restaurant costs |
1,692,651 |
2,614,349 |
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3,453,641 |
5,259,944 |
Income from
Restaurant Operations |
386,925 |
547,930 |
|
679,274 |
1,016,675 |
General and
Administrative |
173,709 |
203,977 |
|
330,835 |
419,398 |
| Depreciation and amortization |
117,268 |
191,535 |
|
232,678 |
382,320 |
| Operating income |
95,948 |
152,418 |
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115,761 |
214,957 |
| Interest |
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| Income |
9,766 |
312 |
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25,373 |
470 |
| Expense |
(85,559) |
(132,722) |
|
(169,628) |
(272,275) |
| Other income, net |
- |
(14,833) |
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- |
32,354 |
| Net other expense |
(75,793) |
(147,243) |
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(144,255) |
(239,451) |
| Net income (loss) |
$20,155 |
$5,175 |
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($28,494) |
($24,494) |
| Earnings (loss) per common share |
($0.01) |
($0.00 ) |
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($0.01) |
($0.01) |
| Earnings (loss) per common share, assuming dilution |
($0.01) |
($0.00) |
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($0.01) |
($0.01) |
| Weighted average shares outstanding |
3,807,350 |
3,809,116 |
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3,807,350 |
3,808,255 |
| Weighted average shares outstanding, assuming dilution |
3,905,793 |
3,882,238 |
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3,905,793 |
3,896,457 |
SELECTED BALANCE SHEET AT JUNE 30, 2002:
| Current Assets |
$ 551,713 |
| Total assets |
$10,246,906 |
| Current liabilities |
1,715,721 |
| Total liabilities |
7,005,902 |
| Shareholders' equity |
3,241,004 |
CONTACT:
Steven J. Wagenheim
President and Chief Executive Officer
(952) 525-2070 ir (612) 751-3331
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