LOS ANGELES, April 4, 2006 (PRIMEZONE) -- Grill Concepts, Inc. (Nasdaq:GRIL) today reported record revenues and net income for the three and twelve-months ended December 25, 2005.
For the 2005 fourth quarter, sales at company-owned restaurants grew 12.1 percent to $14.6 million from $13.0 million in the prior-year period. Management and license fees increased 49.5 percent to $556,000 from $372,000 in the year-ago fourth quarter. Same store sales for all Daily Grill and The Grill restaurants combined improved 5.6 percent.
For the full fiscal year, sales at company-owned restaurants rose to $54.7 million in 2005, up 9.5 percent from $49.9 million a year earlier. Sales at non-consolidated restaurants were also higher, resulting in a 31.3 percent increase in management and license fees to $1.7 million, compared with $1.3 million in 2004. Same store sales for 2005 improved 4.3 percent.
Total revenues, including restaurant sales, cost reimbursements and management and license fees, rose to a quarterly record of $19.2 million, up 12.1 percent from $17.1 million in the fiscal 2004 fourth quarter. Total annual revenues, including restaurant sales, cost reimbursements and management and license fees, rose 11.0 percent to $70.7 million from $63.7 million a year ago.
Earnings before interest, taxes, depreciation and amortization (EBITDA) remained constant in the fourth quarter at $918,000, as compared with the 2004 fourth quarter. For 2005, EBITDA increased 49.0 percent to $3.8 million from $2.5 million a year ago.
Net income increased 39.1 percent to a quarterly record $320,000, or $0.05 per diluted share, for the 2005 fourth quarter, from $230,000, or $0.04 per diluted share, in the year-ago period. Net income for the year increased to $939,000, or $0.14 per diluted share, compared with $38,000, or $0.00 per diluted share, in 2004.
"We are extremely pleased to have finished the year with an outstanding quarter, marked by continued improvements in our operating efficiencies," said Robert Spivak, president and chief executive officer of Grill Concepts. "This performance clearly marked 2005 as an historic year with the highest levels of annual revenues and net income in the history of our company.
"Weighted average weekly sales at our Daily Grill and Grill restaurants increased 2.9 percent and 9.8 percent, respectively,' Spivak said. "In particular, our Grill restaurants posted an exceptional year with higher guest counts, supported by improved check averages, driving same store sales increases of 9.8 percent for the year.
"Our Downtown and Santa Monica Daily Grill restaurants opened during 2005 to higher-than-expected guest counts and have become cornerstones of their respective neighborhoods," Spivak said. "We are now preparing for our newest Grill-branded restaurant, set to debut in the Dallas market, as part of the Galleria shopping complex set to open late summer 2006."
Philip Gay, who currently serves as executive vice president and chief financial officer and has been named to succeed Spivak as chief executive officer following the annual shareholders' meeting in June 2006, added: "We continue to make progress in executing our strategic expansion plans. As previously reported, during the first quarter of 2006, we negotiated a new $8 million credit facility, replacing our previous $500,000 line of credit. With the additional financing available to support our growth initiatives, we believe we are better positioned than ever to successfully expand our franchise and deliver greater value to our shareholders."
About Grill Concepts, Inc.
Grill Concepts owns and manages 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 accompanying 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 to continue to improve operating efficiencies and profitability. 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 Year Ended
------------------------- -------------------------
December 25, December 26, December 25, December 26,
2005 2004 2005 2004
------------------------- -------------------------
(unaudited)
Revenues:
Sales $14,604,000 $13,023,000 $54,706,000 $49,938,000
Cost
reimburse-
ments 4,035,000 3,731,000 14,299,000 12,439,000
Management
and license
fees 556,000 372,000 1,683,000 1,282,000
----------- ----------- ----------- -----------
Total
revenues 19,195,000 17,126,000 70,688,000 63,659,000
Operating
expenses:
Cost of
sales
(exclusive
of
depreciation,
presented
separately
below) 4,151,000 3,719,000 15,446,000 14,465,000
Restaurant
operating
expenses 8,840,000 7,911,000 32,844,000 30,552,000
Reimbursed
costs 4,035,000 3,731,000 14,299,000 12,439,000
General and
administra-
tive 1,451,000 1,170,000 4,868,000 4,472,000
Depreciation
and
amortization 645,000 557,000 2,248,000 2,005,000
Pre-opening
costs 46,000 19,000 301,000 167,000
Gain on sale
of assets (5,000) (2,000) (5,000) (2,000)
----------- ----------- ----------- -----------
Total
operating
expenses 19,163,000 17,105,000 70,001,000 64,098,000
----------- ----------- ----------- -----------
Income (loss)
from
operations 32,000 21,000 687,000 (439,000)
Interest
expense, net (5,000) (81,000) (128,000) (272,000)
----------- ----------- ----------- -----------
Income (loss)
before
provision for
income taxes
and minority
interest 27,000 (60,000) 559,000 (711,000)
(Provision)/
benefit for
income taxes 98,000 (31,000) (179,000) (65,000)
Minority
interest in
loss of
subsidiaries 195,000 321,000 559,000 814,000
----------- ----------- ----------- -----------
Net income 320,000 230,000 939,000 38,000
Preferred
dividends
accrued (12,000) (12,000) (50,000) (50,000)
----------- ----------- ----------- -----------
Net income
(loss)
applicable to
common stock $ 308,000 $ 218,000 $ 889,000 $ (12,000)
=========== =========== =========== ===========
Net income
(loss) per
share
applicable
to common
stock:
Basic net
income
(loss) $ 0.05 $ 0.04 $ 0.16 $ 0.00
=========== =========== =========== ===========
Diluted net
income
(loss) $ 0.05 $ 0.04 $ 0.14 $ 0.00
=========== =========== =========== ===========
Weighted
average
shares
outstanding:
Basic 5,726,003 5,545,864 5,691,523 5,608,541
=========== =========== =========== ===========
Diluted 6,356,375 6,192,910 6,251,042 5,608,541
=========== =========== =========== ===========
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 Year Ended
December 25, December 26, December 25, December 26,
2005 2004 2005 2004
----------------------- ------------------------
Net Income $ 320,000 $ 230,000 $ 939,000 $ 38,000
Add
Income taxes (98,000) 31,000 179,000 65,000
Interest
expense, net 5,000 81,000 128,000 272,000
Pre-opening
costs 46,000 19,000 301,000 167,000
Depreciation and
amortization 645,000 557,000 2,248,000 2,005,000
---------- ---------- ---------- ----------
EBITDA $ 918,000 $ 918,000 $3,795,000 $2,547,000
========== ========== ========== ==========