LOS ANGELES, May 9, 2006 (PRIMEZONE) -- Grill Concepts, Inc. (Nasdaq:GRIL) today reported another period of record quarterly revenues for the three months ended March 26, 2006. Total revenues, including restaurant sales, cost reimbursements and management and license fees, rose 12.1 percent to $19.3 million from $17.2 million in the year-ago period.
For the 2006 first quarter, sales at company-owned restaurants grew 12.5 percent to $15.1 million from $13.4 million in the prior-year period. Management and license fees increased 18.0 percent to $420,000 from $356,000 in the year-ago first quarter. Same store sales improved 6.9 percent.
"We achieved strong sales at both our Daily Grill and Grill-branded restaurants, reflecting increases in guest counts and average checks," said Philip Gay, chief financial officer and incoming chief executive officer of Grill Concepts. "Benefiting from a 3.9% increase in comparable sales and contributions from our newer locations in Santa Monica and Downtown LA, opened in March and May, respectively, of 2005, weighted average weekly sales at our Daily Grill restaurants rose 6.4% to $66,000. We also experienced continued strength in sales at our Grill-branded restaurants, up 12.9% over the prior-year period."
Earnings before interest, taxes, depreciation and amortization (EBITDA) in the current first quarter totaled $1.1 million, compared with $1.3 million in the 2005 first quarter.
Net income for the 2006 first quarter totaled $482,000, or $0.08 per diluted share, based on 6,242,486 shares outstanding. Grill Concepts adopted Financial Accounting Standards Board Statement No. 123(R) related to expensing stock-based compensation on a prospective basis beginning in the first quarter of fiscal 2006, which reduced net income by $38,000 and diluted net income per share by $0.01 in the quarter. In the year-ago first quarter, the company posted net income of $682,000, or $0.11 per diluted share, based on 6,092,223 shares outstanding.
Gay added: "We are pleased with the progress being made in executing our strategic expansion plans. Our newest Grill-branded restaurant is on schedule to debut in the Dallas market late summer this year as part of the renowned Galleria shopping complex.
"Separately, we announced today plans to enter the Memphis market with the 2007 opening of a Daily Grill restaurant adjacent to the FedExForum, home to the NBA's Memphis Grizzlies, and centrally located within the Beale Street entertainment district, on of Tennessee's top tourist attractions," Gay said. "This new restaurant, which will be located in the Westin Beale Street Hotel, a $40 million Starwood Hotels & Resorts project currently under construction, demonstrates the success of our efforts to revitalize our Starwood alliance in an improved economy. With a number of other new sites currently being negotiated and backed by a new $8 million credit facility to support our growth initiatives, we believe the prospects for our company are greater than ever."
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 24 restaurants including four The Grill on the Alley-branded restaurants in Beverly Hills, Hollywood, San Jose, California, and Chicago, as well as 20 Daily Grill restaurants in Southern and Northern California, the Washington, D.C. metropolitan region, Houston, Texas, Portland, Oregon and Skokie, Illinois.
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 and projected opening dates of the Dallas and Memphis restaurants. 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
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
Three Months Ended
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March 26, March 27,
2006 2005
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Revenues:
Sales $15,062,000 $13,387,000
Cost reimbursements 3,818,000 3,469,000
Management and license fees 420,000 356,000
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Total revenues 19,300,000 17,212,000
Operating expenses:
Cost of sales 4,174,000 3,738,000
Restaurant operating expenses 8,940,000 7,701,000
Reimbursed costs 3,818,000 3,469,000
General and administrative 1,241,000 1,046,000
Depreciation and amortization 531,000 461,000
Pre-opening costs -- 91,000
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Total operating expenses 18,704,000 16,506,000
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Income from operations 596,000 706,000
Interest expense, net (21,000) (37,000)
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Income before provision for income
taxes and minority interest 575,000 669,000
Provision for income taxes (68,000) (78,000)
Minority interest in net (profit)
loss of subsidiaries (25,000) 91,000
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Net income 482,000 682,000
Preferred dividends accrued (13,000) (13,000)
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Net income applicable to common stock $ 469,000 $ 669,000
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Net income per share applicable to
common stock:
Basic net income $ 0.08 $ 0.12
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Diluted net income $ 0.08 $ 0.11
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Weighted average shares outstanding:
Basic 5,752,766 5,650,146
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Diluted 6,242,486 6,092,223
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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)
Three Months Ended
---------------------------
March 26, March 27,
2006 2005
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Net Income $ 482,000 $ 682,000
Add
Income taxes 68,000 78,000
Interest expense, net 21,000 37,000
Pre-opening costs -- 91,000
Depreciation and amortization 531,000 461,000
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EBITDA $1,102,000 $1,349,000
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