LOS ANGELES, May 15, 2007 (PRIME NEWSWIRE) -- Grill Concepts, Inc. (Nasdaq:GRIL), which operates The Grill on the Alley and Daily Grill-branded restaurants, today reported total revenues increased 12.6 percent to $21.7 million for its 2007 fiscal first quarter ended April 1, 2007. In the year-ago fiscal first quarter ended March 26, 2006, the company posted total revenues of $19.3 million.
Sales at company-owned restaurants grew 13.1 percent to $17.0 million from $15.1 million in the comparable prior-year period. Management and license fees increased 16.2 percent to $488,000 from $420,000 in the year-ago fiscal first quarter.
Same-store sales increased 8.3 percent over the prior-year period. The Grill on the Alley restaurants delivered a 10.4 percent improvement in comparable restaurants, reflecting both increased guest counts and check averages. Excluding one store being closed for five weeks for remodeling during the 13-week period, the Daily Grill restaurants posted a 7.3 percent gain in same-store sales.
Earnings before interest, taxes, depreciation and amortization (EBITDA), before pre-opening costs, totaled $1.0 million in the 2007 fiscal first quarter, compared with $1.1 million a year earlier.
For the 2007 fiscal first quarter, the company posted a net loss applicable to common stock of $55,000, or $0.01 per share. The current quarter results include pre-opening costs of $169,000; higher depreciation and amortization; a 26.3 percent increase in general and administrative expenses, primarily attributable to increased corporate infrastructure as the company continues its accelerated expansion plans, as well as other non-recurring items; and a considerably higher provision for income taxes due to a change in the estimated annual effective tax rate for 2007. In the same period a year ago, the company reported net income applicable to common stock of $469,000, or $0.08 per diluted share.
"We are very pleased to have begun the year continuing the strong revenue gain trends in 2006," said Philip Gay, chief executive officer. "These results further fuel the energy of our entire team as we work collectively to progress on our accelerated expansion plans."
During the quarter, the company signed leases for new Daily Grill restaurant openings in Austin and North Dallas, Texas, as well as for Phoenix, Arizona. Subsequent to the close of the first quarter, Grill Concepts also signed leases or management agreements for two additional Daily Grills in Fresno, California and Tulsa, Oklahoma. In late April of this year, the Skokie Daily Grill license agreement was terminated due to noncompliance with the company's restaurant operating guidelines.
"Our first new restaurant for 2007 debuted in Memphis, Tennessee to the bustling crowds of the Beale Street entertainment district, serving up breakfast, lunch and dinner, as well as room service for the 203-room Westin Beale Street Hotel" Gay said. "Currently, we are finalizing opening plans for our Seattle Daily Grill next month within the newly expanding Sheraton Seattle, the city's largest hotel with 1,253 planned guestrooms. In addition to breakfast, lunch, dinner and room service, this restaurant will also service the Hotel's lobby lounge, and we believe it has great potential to become one of our highest performing operations in terms of restaurant sales. We expect to open at least four new restaurants during 2007 indicative of our accelerating expansion plan, including Austin and Fresno in the second half of the year, and we look forward to another exciting year of growth."
About Grill Concepts, Inc.
Grill Concepts owns, manages and licenses upscale casual and fine dining, full service restaurants under two core brand names: The Grill on the Alley and Daily Grill. The company operates 25 restaurants including five The Grill on the Alley-branded restaurants in Beverly Hills, Hollywood and San Jose, California; Chicago, Illinois; and Dallas, Texas, as well as 20 Daily Grill restaurants in Southern and Northern California; the Washington, D.C. metropolitan region; Houston, Texas; Portland, Oregon; and Memphis, Tennessee.
Non-GAAP Financial Measure
The company believes that EBITDA, although a non-GAAP measure, provides greater comparability regarding its ongoing operating performance. However, EBITDA should not be considered an alternative to measurements required by accounting principles generally accepted in the United States ("U.S. GAAP"). A reconciliation of the company's U.S. GAAP information to EBITDA is provided in the attached table.
This news release contains forward-looking statements, which are based on current operations, plans and expectations. Such statements include, but are not limited to, the company's ability to continue expanding its restaurant network, projected opening dates of restaurants and projected opening dates of restaurants currently under letters of intent. Actual results may differ materially from these statements due to risks and uncertainties beyond the company's control, which are detailed from time to time in the company's filings with the United States Securities and Exchange Commission.
GRILL CONCEPTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(dollars in thousands, except per share data)
Three Months Ended
------------------------
April 1, March 26,
2007 2006
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(unaudited) (unaudited)
Revenues:
Sales $ 17,037 $ 15,062
Cost reimbursements 4,197 3,818
Management and license fees 488 420
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Total revenues 21,722 19,300
Operating expenses:
Cost of sales 4,864 4,174
Restaurant operating expenses 9,991 8,940
Reimbursed costs 4,197 3,818
General and administrative 1,567 1,241
Depreciation and amortization 712 531
Pre-opening costs 169 --
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Total operating expenses 21,500 18,704
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Income from operations 222 596
Interest, net (67) (21)
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Income before provision for income taxes
and minority interest 155 575
Provision for income taxes (126) (68)
Minority interest in net profit
of subsidiaries (78) (25)
-------- --------
Net (loss) income (49) 482
Preferred dividends accrued (6) (13)
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Net (loss) income applicable to common stock $ (55) $ 469
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Net (loss) income per share applicable
to common stock:
Basic $ (0.01) $ 0.08
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Diluted $ (0.01) $ 0.08
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Weighted-average shares outstanding:
Basic 6,420 5,753
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Diluted 6,420 6,242
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GRILL CONCEPTS, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-U.S. GAAP MEASURES TO U.S. GAAP
(dollars in thousands)
(unaudited)
Computation of Earnings Before Interest, Taxes, Depreciation and
Amortization (EBITDA), before pre-opening costs:
Three Months Ended
--------------------
April 1, March 26,
2007 2006
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Net (loss) income $ (49) $ 482
Add:
Provision for income taxes 126 68
Interest, net 67 21
Pre-opening costs 169 --
Depreciation and amortization 712 531
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EBITDA $ 1,025 $ 1,102
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