Granite City Food & Brewery Ltd. Reports 10.2% Increase in Fourth Quarter Revenues
Continued Improvement in Prime Costs during Fourth Quarter 2008
Granite City Food & Brewery Ltd. (Nasdaq: GCFB), a Modern American upscale casual restaurant chain, today reported results for the fourth quarter and fiscal year ended December 30, 2008.
Highlights for the fourth quarter of 2008 were as follows:
• Total revenues were $21.7 million, a 10.2% increase over the prior year quarter
• Total restaurant-level EBITDA was 12.9%
• Comparable restaurant-level EBITDA was 14.6%
• Prime costs decreased to 64.4% compared to 70.3% in the first quarter of 2008
• Preliminary January and February 2009 prime costs were 62.6%
Fourth Quarter 2008 Financial Results
Total revenue for the fourth quarter 2008 rose by 10.2% to $21.7 million compared to $19.7 million for the fourth quarter of 2007.
For all the restaurants, the restaurant-level EBITDA margin was 12.9% for the fourth quarter of 2008. This represents an increase of 0.9% in restaurant-level EBITDA compared to 12.0% in the fourth quarter of 2007.
Steve Wagenheim, CEO, commented, 'We are pleased with the continued results and improvements in the efficiencies of our operation. This past quarter solidified the consistency of the behaviors that are now leading to lower prime costs which are the cornerstone to our margins. As an example, our prime costs, which include cost of food, beverage and labor, in the first two months of 2009 represent an improvement of nearly 8% compared to the prior year period and are approaching 62% on a consistent basis. Our staff has a lot to be proud of for all the hard work they have put in to improve the stores in the midst of a recession.'
Total cost of sales was $18.9 million in the fourth quarter or 87.1% of sales compared to prior year cost of sales of $17.3 million or 88.0% of sales. The improvement in the fourth quarter compared to the prior year quarter was due to several factors: First, across-the-board improved execution in labor and food costs helped to drive our prime costs down, second, the ability of many of our new partners hired in the early part of 2008 to begin to gain traction with their stores and meet management initiatives and expectations, and third, the maturing of the new stores that have been opened over the past year.
General and administrative expenses were $2.7 million or 12.3% of sales for the fourth quarter of 2008 compared to $3.0 million or 15.0% of sales for the fourth quarter of 2007. Non-cash compensation expense within the general and administrative expense represented 0.6% of sales for the fourth quarter of 2008.
The net loss for the fourth quarter of 2008 was $4.0 million or $(0.25) per share.
Year-to-Date Financial Results
Revenue increased 26.8% to $96.3 million for the fiscal year ended December 30, 2008, compared to $75.9 million for the fiscal year ended December 25, 2007, aided by seven new restaurants and the additional fiscal week in the third quarter of 2008.
For all the restaurants, the restaurant-level EBITDA margin was 11.8% for fiscal year 2008, while the restaurant-level EBITDA margin for comparable restaurants was 12.9%. The overall restaurant-level EBITDA margin was negatively impacted by newer restaurants open for less than one year.
General and administrative expenses were $10.9 million or 11.3% of sales for fiscal year 2008 compared to $8.6 million or 11.4% of sales for 2007.
The net loss for fiscal year 2008 was $15.8 million or $(0.97) per share compared to a net loss of $9.6 million or $(0.62) per share for 2007.
Highlights for the fourth quarter of 2008 were as follows:
• Total revenues were $21.7 million, a 10.2% increase over the prior year quarter
• Total restaurant-level EBITDA was 12.9%
• Comparable restaurant-level EBITDA was 14.6%
• Prime costs decreased to 64.4% compared to 70.3% in the first quarter of 2008
• Preliminary January and February 2009 prime costs were 62.6%
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Fourth Quarter 2008 Financial Results
Total revenue for the fourth quarter 2008 rose by 10.2% to $21.7 million compared to $19.7 million for the fourth quarter of 2007.
For all the restaurants, the restaurant-level EBITDA margin was 12.9% for the fourth quarter of 2008. This represents an increase of 0.9% in restaurant-level EBITDA compared to 12.0% in the fourth quarter of 2007.
Steve Wagenheim, CEO, commented, 'We are pleased with the continued results and improvements in the efficiencies of our operation. This past quarter solidified the consistency of the behaviors that are now leading to lower prime costs which are the cornerstone to our margins. As an example, our prime costs, which include cost of food, beverage and labor, in the first two months of 2009 represent an improvement of nearly 8% compared to the prior year period and are approaching 62% on a consistent basis. Our staff has a lot to be proud of for all the hard work they have put in to improve the stores in the midst of a recession.'
Total cost of sales was $18.9 million in the fourth quarter or 87.1% of sales compared to prior year cost of sales of $17.3 million or 88.0% of sales. The improvement in the fourth quarter compared to the prior year quarter was due to several factors: First, across-the-board improved execution in labor and food costs helped to drive our prime costs down, second, the ability of many of our new partners hired in the early part of 2008 to begin to gain traction with their stores and meet management initiatives and expectations, and third, the maturing of the new stores that have been opened over the past year.
General and administrative expenses were $2.7 million or 12.3% of sales for the fourth quarter of 2008 compared to $3.0 million or 15.0% of sales for the fourth quarter of 2007. Non-cash compensation expense within the general and administrative expense represented 0.6% of sales for the fourth quarter of 2008.
The net loss for the fourth quarter of 2008 was $4.0 million or $(0.25) per share.
Year-to-Date Financial Results
Revenue increased 26.8% to $96.3 million for the fiscal year ended December 30, 2008, compared to $75.9 million for the fiscal year ended December 25, 2007, aided by seven new restaurants and the additional fiscal week in the third quarter of 2008.
For all the restaurants, the restaurant-level EBITDA margin was 11.8% for fiscal year 2008, while the restaurant-level EBITDA margin for comparable restaurants was 12.9%. The overall restaurant-level EBITDA margin was negatively impacted by newer restaurants open for less than one year.
General and administrative expenses were $10.9 million or 11.3% of sales for fiscal year 2008 compared to $8.6 million or 11.4% of sales for 2007.
The net loss for fiscal year 2008 was $15.8 million or $(0.97) per share compared to a net loss of $9.6 million or $(0.62) per share for 2007.