WOODLAND HILLS, Calif., Aug. 11, 2008 (PRIME NEWSWIRE) -- Grill Concepts, Inc. (Nasdaq:GRIL) today reported financial results for its three- and six-month periods ended June 29, 2008.
Total revenues for the fiscal 2008 second quarter grew 7.6 percent to $24.5 million from $22.8 million in the prior-year period. Sales at company-owned restaurants for the current second quarter rose 4.3 percent to $17.7 million from $16.9 million for the three months ended July 1, 2007. Management and license fees amounted to $797,000, up 39.3 percent over $572,000 in the fiscal 2007 second quarter.
For the first six months of fiscal 2008, total revenues increased 11.4 percent to $49.6 million from $44.5 million in the corresponding prior-year period. Sales at company-owned restaurants year-to-date grew 4.8 percent to $35.6 million from $34.0 million for the first half of fiscal 2007. Management and license fees rose 30.4 percent to $1.4 million from $1.1 million in the fiscal 2007 six-month period.
"The growth in our revenues demonstrates solid progress being made with the company's accelerated expansion strategy," said Philip Gay, president and chief executive officer. "At the same time, our restaurants have not been immune to the increasingly difficult economic environment that has adversely impacted the hospitality sector and discretionary consumer spending. As with many other restaurant brands, our The Grill on the Alley and Daily Grill restaurant concepts posted declines in same-store sales when compared with the year-ago periods. While we are never pleased to report negative comparative sales, we do recognize that we were up against the headwinds of extremely strong consolidated same-store sales of 10.6 percent in the year-ago second quarter, as well as the challenging macroeconomic environment."
Consolidated same-store sales declined 6.3 percent for the second quarter of fiscal 2008 and 5.0 percent year-to-date. Same-store sales at The Grill on the Alley-branded restaurants narrowed by 3.6 percent and 2.7 percent, respectively, for the current three- and six-month periods. Comparable restaurant sales at the Daily Grill restaurants were down 7.9 percent and 6.4 percent, respectively, for the fiscal 2008 second quarter and six months. As previously reported, the company's three Daily Grill locations in Orange County and adjacent in California have been heavily impacted by issues related to the subprime mortgage industry. Excluding these three restaurants, consolidated same-store sales at the company's Daily Grill restaurants narrowed by only 6.2 percent and 3.9 percent, respectively, for the three-and six-months ended June 29, 2008.
Gay said cost containment measures implemented at the beginning of the second quarter helped to reduce general and administrative expenses. However, these savings were offset by higher preopening costs and increased depreciation and amortization due to the company's expansion. In addition, the company accrued a litigation settlement expense of $780,000, equal to $0.05 per share, net of tax, associated with an ongoing class-action lawsuit.
For the three months ended June 29, 2008, the company posted a net loss applicable to common stock of $993,000, equal to $0.11 per share, compared with a net loss applicable to common stock of $39,000, or $0.01 per share, for the fiscal 2007 second quarter.
For the year-to-date period, the company posted a net loss applicable to common stock of $1.1 million, equal to $0.13 per share, compared with net income applicable to common stock of $142,000, or $0.02 per diluted share, for the first half of fiscal 2007.
Earnings before interest, taxes, depreciation and amortization (EBITDA) before pre-opening costs, minority interest and litigation claim settlement was $494,000 in the 2008 fiscal second quarter, compared with $755,000 in the second quarter a year ago. For the year-to-date period, EBITDA before pre-opening costs, minority interest and litigation claim settlement accruals totaled $1.4 million, compared with $1.9 million in the first six months of fiscal 2007.
During the current second quarter, the company opened its first Daily Grill-branded restaurant in the New England market at The Shops at Prudential Center in Boston.
