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Unit Performance Exceeds Board Approved Budget
MINNEAPOLIS, July 23, 2004 - Granite City Food & Brewery Ltd. (Nasdaq: GCFB) today reported the results of operations for the second quarter ended June 27, 2004. Revenues for the second quarter 2004 increased approximately $4.5 million or 145% over second quarter 2003. Average restaurant sales increased to $87,654 per week during the second quarter.
For the quarter ended June 27, 2004, total revenue was $7,625,932 compared to $3,111,026 for the second quarter of 2003. The Company reported a net loss of ($369,265), or ($0.11) per share for the quarter ended June 27, 2004, compared to ($221,089), or ($0.10) per share for the second quarter of 2003. The primary reason for the increased loss is pre-opening expenses of $483,349 related to the opening of two restaurants in the second quarter of 2004.
For the twenty-six weeks ended June 27, 2004, total revenue was $13,918,803 compared to $5,981,186 for the same period last year. The Company reported a net loss of ($672,392), or ($0.27) per share for the two quarters ended June 27, 2004 compared to a net loss of ($405,711), or ($0.17) per share for the same period one year ago. The primary reason for the increased loss is the pre-opening expenses incurred with the opening of three new restaurants.
"We are very pleased with our store level bottom-line performance when compared to popular competitive products," said Steve Wagenheim, Granite City Food & Brewery's President and CEO. "Our income from restaurant operations, before pre-opening, corporate overhead, depreciation and amortization, was 18.1% of revenue for the quarter and 17.9% of revenue year to date. Additionally, we are showing a significant decrease in our corporate overhead. As a percentage of revenue, overhead decreased over last year 5.3% in the second quarter and 3.2% year to date. I believe these results showcase the strength of our concept and our ability to focus on guest satisfaction as well as shareholder satisfaction." Wagenheim continued, "It is very exciting to see our units performing so strongly going into the second half of the year because without incurring pre-opening expenses, we will have an opportunity to significantly grow our bottom line."
With declarations of preferred stock dividends valued at $108,710 and $168,732 in the second quarter of 2004 and 2003, respectively, the company's net loss available to common shareholders was ($477,975) and ($389,821) for the second quarter of 2004 and 2003, respectively. The preferred stock dividends declarations of $455,816 and $265,081 in the first half of 2004 and 2003, respectively, resulted in a net loss available to common shareholders of ($1,128,208) and ($670,792) in the first half of 2003 and 2004 respectively.
Wagenheim said the company is currently evaluating various sites with its developer to continue its expansion in the Midwest in 2005.
Granite City Food & Brewery Ltd. currently operates eight 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, Davenport, IA, Lincoln, NE and Minneapolis, MN.
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
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Thirteen Weeks Ended |
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Twenty-six Weeks Ended |
| |
June 29, 2003 |
June 27, 2004 |
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June 29, 2003 |
June 27, 2004 |
| Restaurant Revenues |
$3,111,026 |
$7,625,932 |
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$5,981,186 |
$13,918,803 |
| Cost of Sales: |
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Food, beverage,
& retail |
909,316 |
2,333,702 |
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1,728,198 |
4,209,817 |
| Labor |
1,061,028 |
2,526,463 |
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2,046,861 |
4,569,684 |
| Direct and Occupancy |
653,660 |
2,526,463 |
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1,316,927 |
2,647,193 |
Total Cost
of Sales |
2,624,004 |
6,242,496 |
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5,091,986 |
11,426,694 |
| Pre-opening |
- |
483,349 |
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- |
748,323 |
| General & Administrative |
412,806 |
605,478 |
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706,423 |
1,194,062 |
| Depreciation & amortization |
197,159 |
384,970 |
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390,195 |
715,010 |
| Operating loss |
(122,943) |
(90,361) |
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(207,418) |
(165,286) |
| Interest: |
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| Income |
23,581 |
221 |
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46,882 |
4,192 |
| Expense |
(121,727) |
(279,125) |
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(245,175) |
(511,298) |
| Net Other Expenses |
(98,146) |
(278,904) |
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(198,293) |
(507,106) |
| Less preferred stock dividends declared |
(168,732) |
(108,710) |
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(265,081) |
(455,816) |
| Net loss available to common shareholders |
($389,821) |
($477,975) |
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($670,792) |
($1,128,208) |
| Loss per common share, basic and diluted |
($0.10) |
($0.11) |
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($0.17) |
($0.27) |
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| Pro forma |
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| Operating loss |
($122,943) |
($90,361) |
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($405,711) |
($165,286) |
| Add Back: |
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| Pre-opening |
- |
483,349 |
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- |
483,349 |
| General and administrative |
412,806 |
605,478 |
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706,423 |
1,194,062 |
| Depreciation and amortization |
197,159 |
384,970 |
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390,195 |
715,010 |
| Income from restaurant operations before pre-opening, corporate overhead, depreciation and amortization |
$487,022 - 15.7% |
$1,383,436 - 18.1% |
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$690,907 - 11.6% |
$2,492,109 - 17.9% |
BALANCE SHEET DATA June 27, 2004:
| Current Assets |
$1,250,104 |
| Total assets |
23,788,466 |
| Current liabilities |
3,529,066
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| Total liabilities |
18,152,689 |
| Shareholders' equity |
5,635,777 |
CONTACT:
Steven J. Wagenheim
President and Chief Executive Officer
(952) 525-2070 ir (612) 751-3331
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