|
|
|
|
|
|
|
|
|
First Quarter Results Exceeded Board-Approved Budget
MINNEAPOLIS, May 3, 2004 - Granite City Food & Brewery Ltd. (Nasdaq: GCFB) today reported the results of operations for the first quarter ended March 28, 2004. Revenues for the first quarter 2004 increased approximately $3.4 million or 119% over first quarter 2003. Average restaurant sales increased approximately $11,400 or 16% per week during the first quarter.
For the quarter ended March 28, 2004, total revenue was $6,292,871 compared to $2,870,160 for the first quarter of 2003. The Company reported a net loss of ($303,127), or ($0.16) per share for the quarter ended March 28, 2004, compared to a net loss of ($184,622), or ($0.07) per share for the first quarter of 2003. The primary reason for the increased loss is the pre-opening expenses incurred with new restaurant openings. These expenses made up over 87% of the net loss for the first quarter of 2004.
"We are very pleased with our first quarter results which exceeded our board-approved budget on the top line and the bottom line," said Steve Wagenheim, Granite City Food & Brewery's President and CEO. "I believe these results validate our expansion strategy and speak to our ability to perform above expectations for our guests and our shareholders. Before depreciation and the one-time pre-opening expenses we incur at each new restaurant, our earnings were approximately $292,000 during our first quarter this year.up from about $8,000 in our first quarter last year. Although we will continue to incur additional pre-opening expenses in the second quarter prior to the openings of our Lincoln and Maple Grove restaurants," Wagenheim added, "our units are performing very strongly and we look forward to seeing the positive results of their performance as growth to our bottom line during the second half of the year. "
With the declaration of preferred stock dividends valued at $347,106, the company's net loss available to common shareholders was ($650,233) for the first quarter of 2004. The preferred stock dividends declaration of $96,349 resulted in a net loss available to common shareholders of ($280,971) in the first quarter of 2003.
Wagenheim said the company has scheduled the opening of its Lincoln, Nebraska restaurant for May 4, 2004, and will open its restaurant in Maple Grove, Minnesota in June 2004.
Granite City Food & Brewery Ltd. currently operates six 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. Subsequently, the Company opened restaurants in Sioux Falls, SD, Fargo, ND, West Des Moines, IA, Cedar Rapids, IA and Davenport, IA.
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 28, 2003 as filed with the Securities and Exchange Commission.
-financial statements follow
GRANITE CITY FOOD & BREWERY LTD. CONDENSED STATEMENTS OF OPERATIONS
| |
Thirteen Weeks Ended |
| |
March 30, 2003 |
March 28, 2004 |
| Restaurant Revenues |
$2,870,160 |
$6,292,871 |
| Cost of Sales: |
|
|
Food, beverage,
& retail |
6,292,871 |
1,876,115 |
| Labor |
985,833 |
2,043,221 |
| Direct and Occupancy |
663,267 |
1,264,862 |
Total Cost
of Sales |
2,467,982 |
5,184,198 |
| Pre-opening |
- |
264,974 |
| General & Administrative |
293,617 |
293,617 |
| Depreciation & amortization |
193,036 |
330,040 |
| Operating Income (loss) |
(84,475) |
(74,925) |
| Interest: |
|
|
| Income |
23,301 |
3,971 |
| Expense |
(123,448) |
(232,173) |
| Net Other Expenses |
(100,147) |
(228,202) |
| Net loss |
(184,622) |
(303,127) |
| Less preferred stock dividends declared |
(96,349) |
(347,106) |
| Net loss available to common shareholders |
($280,971) |
($650,233) |
| Loss per common share, basic and diluted |
(0.07) |
(0.16) |
| Weighted average shares outstanding, basic and diluted |
3,845,315 |
4,132,933 |
| Pro Forma |
|
|
| Net loss |
($184,622) |
($303,127) |
| Add back: |
|
|
| Depreciation and amortization |
193,036 |
330,040 |
| Pre-opening |
- |
264,974 |
| Net income before depreciation, amortization and pre-opening |
$8,414 |
$291,887 |
BALANCE SHEET DATA MARCH 28, 2004:
| Current Assets |
$890,742 |
| Total assets |
19,137,123 |
| Current liabilities |
2,238,905 |
| Total liabilities |
13,059,756 |
| Shareholders' equity |
6,077,367 |
CONTACT:
Steven J. Wagenheim
President and Chief Executive Officer
(952) 525-2070 ir (612) 751-3331
|
|
|
|
|