UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) November 12, 2003
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GRILL CONCEPTS, INC.
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(Exact name of registrant as specified in its charter)
Delaware 0-23226 13-3319172
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(State or other jurisdiction (Commission file (IRS Employer Number)
of incorporation number)
11661 San Vicente Blvd., Suite 404, Los Angeles, California 90049
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(Address of principal executive offices)(Zip Code)
(310) 820-5559
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(Registrant's telephone number, including area code)
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(Former name and former address, if changed since last report)
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(c) Exhibits
Exhibit
Number Description
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99.1 Grill Concepts, Inc. quarterly earnings release for
the quarter ended September 28, 2003
ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On November 12, 2003, Grill Concepts, Inc. issued an earnings release
announcing its financial results for the quarter and nine months ended September
28, 2003. A copy of the earnings release is attached as Exhibit 99.1.
The information in this report is being furnished, not filed, for purposes
of Section 18 of the Securities Exchange Act of 1934, as amended, and pursuant
to Item 12 of Form 8-K will not be incorporated by reference into any filing
under the Securities Act of 1933, as amended, unless specifically identified
therein as being incorporated therein by reference.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Current Report on Form 8-K to be signed on its
behalf by the undersigned hereunto duly authorized.
GRILL CONCEPTS, INC.
Dated: November 12, 2003
By: /s/ Robert Spivak
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Robert Spivak
President
EXHIBIT 99.1
PONDELWILKINSON MS&L
Corporate and Investor Relations
6500 Wilshire Blvd., Suite 1900
Los Angeles, CA 90048-4920
T (323) 866 6060
F (323) 866 6068
W www.pondel.com
NEWS
RELEASE
CONTACTS: Daryl E. Ansel
Chief Financial Officer
Grill Concepts, Inc.
(310) 820-5559
Roger S. Pondel/Angie H. Yang
PondelWilkinson MS&L
(323) 866-6004
investor@pondel.com
FOR IMMEDIATE RELEASE
GRILL CONCEPTS REPORTS INCREASED REVENUES FOR 2003 THIRD QUARTER; SAME STORE
SALES UP 7.7 PERCENT
LOS ANGELES, CALIFORNIA - NOVEMBER 12, 2003 - Grill Concepts, Inc.
(Nasdaq:GRIL) today reported results for the three and nine-month periods ended
September 29, 2003.
For the 2003 third quarter, consolidated revenues, including management and
license fees, increased 13.9 percent to $10.8 million from $9.5 million in the
same period a year earlier. Total systemwide sales, including all restaurants,
owned, operated, managed and licensed, rose 12.4 percent to $16.6 million from
$14.7 million a year ago. Management believes total systemwide sales is a key
measurement for assessing the current strength of The Grill on the Alley and
Daily Grill restaurant brands against historical performance. Same store sales
for the third quarter rose 7.7 percent. The company reduced its net loss to
$342,000, or $0.06 per share, in the 2003 third quarter from a net loss of
$454,000, or $0.08 per share, in the corresponding period a year earlier.
For the year-to-date period, consolidated revenues, including management
and license fees, advanced 9.3 percent to $34.5 million from $31.5 million in
the prior-year nine-month period. Total systemwide sales, including all
restaurants, owned, operated, managed and licensed, rose 11.7 percent to $51.4
million from $46.0 million a year earlier. Same store sales for the first nine
months of 2003 increased 6.1%. The company posted net income of $197,000, or
$0.04 per diluted share, contrasted with a net loss of $302,000, or $0.05 per
share, in the 2002 year-to-date period.
"The growth in revenues for the three and nine-month periods is attributed
primarily to continued momentum in same store sales, as well as contributions
from our South Bay Daily Grill, which opened in January of this year," said
Robert Spivak, president and chief executive officer of Grill Concepts. "Our
strong same store sales growth reflected increased guest counts and higher
average check prices at both our Grill on the Alley and Daily Grill
restaurants."
Despite industry-wide increases in beef costs, the company achieved gross
margin improvements, benefiting from improved purchasing and menu refinements.
Cost of sales as a percentage of total revenues were held below year-ago levels,
resulting in higher gross margins, amounting to 72.5 percent and 72.9 percent
for the current three and nine-month periods, compared with 72.4 percent and
72.8 percent, respectively, for the corresponding year-ago periods.
Spivak added: "We continued to make progress executing our strategic
growth plan. In September 2003, we entered the Northwestern U.S. market with
the opening of a Daily Grill restaurant in The Westin Portland Hotel in downtown
Portland. We are excited about the prospects of this joint development project
with Starwood Hotels and the Aspen Hotel Group, considering this full service
restaurant is the food and beverage provider for the hotel's banquet facilities,
as well as the exclusive room service provider for the 188-room hotel. We also
look forward to expanding our network in the Washington, D.C. metropolitan area
later this year with a new Daily Grill restaurant in the heart of Bethesda,
Maryland at the Hyatt Regency Bethesda. These restaurants underscore our
strategy of developing restaurants in, or adjoining, key hotel properties or
complexes situated to attract both the corporate and residential patron."
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, serving classic American grill fare in a comfortable, sophisticated
atmosphere, featuring hearty portions of freshly prepared signature dishes. The
company operates 22 restaurants including The Grill on the Alley-branded
restaurants in Beverly Hills, Hollywood and San Jose, California, and Chicago,
as well as Daily Grill restaurants in Southern and Northern California, the
Washington, D.C. metropolitan region, Houston, Texas, Portland, Oregon and
Skokie, Illinois.
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 open and successfully operate the
Portland Daily Grill and the Bethesda Daily Grill and the company's ability to
continue expanding its restaurant network, among other factors. 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.
# # #
(tables to follow)
GRILL CONCEPTS, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED NINE MONTHS ENDED
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SEPTEMBER 28, SEPTEMBER 29, SEPTEMBER 28, SEPTEMBER 29,
2003 2002 2003 2002
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Revenues:
Sales $10,509,000 $9,231,000 $33,695,000 $30,843,000
Management and license fees 278,000 236,000 795,000 704,000
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Total revenues 10,787,000 9,467,000 34,490,000 31,547,000
Cost of sales 2,968,000 2,610,000 9,364,000 8,571,000
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Gross profit 7,819,000 6,857,000 25,126,000 22,976,000
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Operating expenses:
Restaurant operating expenses 6,930,000 6,054,000 20,972,000 19,533,000
Gain on disposal of assets -- -- (12,000) (71,000)
General and administrative 934,000 926,000 2,750,000 2,792,000
Depreciation and amortization 411,000 364,000 1,200,000 1,092,000
Preopening expenses -- -- 187,000 --
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Total operating expenses 8,275,000 7,344,000 25,097,000 23,346,000
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Income (loss) from operations (456,000) (487,000) 29,000 (370,000)
Interest expense, net (49,000) (59,000) (141,000) (160,000)
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Loss before benefit (provision) for
income taxes, equity in loss of joint
venture and minority interest (505,000) (546,000) (112,000) (530,000)
Benefit (provision) for income taxes 13,000 (2,000) (68,000) (22,000)
Minority interest 161,000 107,000 425,000 301,000
Equity in income (loss) of joint venture 1,000 (1,000) (10,000) (13,000)
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Net income (loss) (330,000) (442,000) 235,000 (264,000)
Preferred dividends accrued or paid (12,000) (12,000) (38,000) (38,000)
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Net income (loss) applicable to
common stock $ (342,000) $ (454,000) $ 197,000 $ (302,000)
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Net income (loss) per share applicable
to common stock
Basic $ (0.06) $ (0.08) $ 0.04 $ (0.05)
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Diluted $ (0.06) $ (0.08) $ 0.04 $ (0.05)
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Weighted average shares outstanding:
Basic 5,537,071 5,537,071 5,537,071 5,537,071
============ =========== ============ ============
Diluted 5,537,071 5,537,071 5,613,527 5,537,071
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GRILL CONCEPTS, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-U.S. GAAP MEASURES TO U.S. GAAP
(unaudited)
SYSTEMWIDE SALES
The following table reconciles Grill Concepts' total consolidated revenues, prepared on
the basis of GAAP, to total systemwide sales for the periods presented:
THREE MONTHS ENDED NINE MONTHS ENDED
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SEPTEMBER 28, SEPTEMBER 29, SEPTEMBER 28, SEPTEMBER 29,
2003 2002 2003 2002
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Total consolidated revenues $10,787,000 $ 9,467,000 $34,490,000 $31,547,000
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Managed restaurants sales 3,842,000 3,720,000 10,968,000 10,088,000
Licensed restaurants sales 2,220,000 1,786,000 6,700,000 5,033,000
Less management and license fees (278,000) (236,000) (795,000) (704,000)
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Total systemwide sales $16,571,000 $14,737,000 $51,363,000 $45,964,000
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