GRILL CONCEPTS INC 
By CONTACTS:
John Bayley Roger Pondel
Chief Financial Officer PondelWilkinson Inc. Grill Concepts, Inc. (310) 279-5980
(818) 251-7070 investor@pondel.com
NEWS RELEASEGRILL CONCEPTS REPORTS 2011 FIRST QUARTER FINANCIAL RESULTSWOODLAND HILLS, Calif. – May 18, 2011 – Grill Concepts, Inc. (OTC Capital Markets: GLLC), operators of The Grill on the Alley and Daily Grill-branded restaurants and the In Short Order – Daily Grill quick casual concept, today reported financial results for its first quarter ended March 27, 2011. Total revenues increased 8.0% to $19.0 million from $17.6 million in the same period last year.
“Same-store sales for our branded restaurants rose during the first quarter, as we continue to leverage the strength of each brand amid improving consumer confidence,” said Robert Spivak, president and chief executive officer. “Same-store sales rose 5.6% for the Daily Grill restaurants and 6.1% for Grill on the Alley restaurants.”
“During the first quarter, we opened our new gastro pub, Public School 612, at our Daily Grill location in Downtown Los Angeles. Public School features 20 craft beers, an eclectic American tapas menu and a youthful, 21st century bar atmosphere. We are very excited with the early guest response which has been outstanding,” Spivak added.
Sales at company-owned restaurants for the fiscal 2011 and 2010 first quarter and the change in comparable same-store sales are reflected in the table below:
Three Months Ended(amounts in thousands)
Revenues:
March 27,2011
March 28,2010
Sales $ 18,476 $ 17,141
Management and license fees 495 427 Total revenues 18,971 17,568 Same-store salesThe Grill on the Alley | 6.08% | 2.74% |
Daily Grill | 5.64% | -3.69% |
Consolidated | 5.91% | -1.53% |
Total operating expenses for the 2011 fiscal first quarter were $19.1 million, compared with $18.4 million last year. General and administrative costs for first three months of fiscal 2011 amounted to $1.5 million, compared with $1.4 million for the same period in 2010.
Grill Concepts posted a net loss applicable to common stock of $689,000 for the 2011 fiscal first quarter, versus a net loss of $1.3 million a year ago.
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Grill Concepts, Inc.
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Earnings before interest, taxes, depreciation and amortization (EBITDA), before stock based compensation, preopening costs, loss on investment in joint venture and net losses attributable to noncontrolling interests totaled $938,000 for the 2011 fiscal first quarter, compared with $302,000 for the same period a year ago.
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; as well as a quick casual concept, In Short Order – Daily Grill. The company operates and or licenses 29 restaurants including seven The Grill on the Alley-branded restaurants in Beverly Hills, Hollywood, San Jose and Westlake Village, California; Chicago, Illinois; Dallas, Texas; and Aventura, Florida; 21 Daily Grill restaurants in California; the Washington, D.C. metropolitan region; Houston and Austin, Texas; Portland, Oregon; Seattle, Washington, and Tulsa, Oklahoma; as well as one In Short Order – Daily Grill in Seattle, Washington.
Non-GAAP Financial MeasureThe company believes that earnings before interest, taxes, depreciation and amortization (“EBITDA”), stock based compensation, pre-opening costs, abandoned projects, loss on investment in joint venture, and net income/losses attributable to non-controlling interests and other non-recurring costs, 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 plans to refuel its expansion when the economy rebounds. 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 its filings with the Pink OTC Markets Inc.
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GRILL CONCEPTS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data)Three Months EndedRevenues:
March 27,2011March 28,2010Sales $ 18,476 $ 17,141
Management and license fees 495 427 Total revenues 18,971 17,568 Operating expenses: Cost of sales 5,208 4,933 Restaurant payroll and related 6,899 6,469 Restaurant operating 2,997 2,959 Occupancy 1,504 1,509 General and administrative 1,512 1,417 Depreciation and amortization 930 939 Pre-opening costs 87 102 Abandoned projects 2 -- Loss on investment in joint venture -- 51 Total operating expenses 19,139 18,379 Loss from operations (168) (811) Interest, net (402) (402) Loss before income taxes (570) (1,213) (Provision) benefit for income taxes (45) (49) Net loss (615) (1,262) Net loss attributable to noncontrolling interests 20 7 Net loss attributable to Grill Concepts, Inc. (595) (1,255) Preferred dividends accrued (94) (94) Net loss applicable to common stock $ (689) $ (1,349)GRILL CONCEPTS, INC. AND SUBSIDIARIES RECONCILIATION OF NON-U.S. GAAP MEASURES TO U.S. GAAP(in thousands)
The following tables set forth the reconciliation of net loss to net earnings before interest, taxes, depreciation and amortization (EBITDA), before stock based compensation, pre-opening costs, loss on investment in joint venture and net income or losses attributable to noncontrolling interests:
Three Months EndedMarch 27,2011March 28,2010Net loss attributable to Grill Concepts, Inc. $ (595) $ (1,255) Adjustments:
Interest, net 402 402 Provision for income taxes 45 49 Depreciation and amortization 930 939 Stock based compensation 87 21 Pre-opening costs 87 102 Abandoned projects 2 -- Loss on investment in joint venture -- 51 Net income attributable to noncontrolling interests (20) (7) Modified EBITDA (as defined) $ 938 $ 302
