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) May 26, 2004
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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 March 28, 2004
ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On May 26, 2004, Grill Concepts, Inc. issued an earnings release announcing
its financial results for the quarter ended March 28, 2004 and restatement of
its earnings for the year ended December 28, 2003 to reflect the application of
variable accounting to its stock option plan. 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.
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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: May 26, 2004
By: /s/ Robert Spivak
Robert Spivak
President
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Exhibit 99.1
6500 Wilshire Blvd., Suite 1900
Los Angeles, CA 90048
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 Inc.
(323) 866-6004
investor@pondel.com
GRILL CONCEPTS REPORTS HIGHER REVENUES
FOR 2004 FIRST QUARTER; SAME STORE SALES INCREASE 7.8%
-- EARNINGS IMPACTED BY EXPENSING OF OPTIONS --
LOS ANGELES, CALIFORNIA - MAY 26, 2004 - Grill Concepts, Inc. (NASDAQ:GRIL)
today reported growth of 11.2 percent in consolidated revenues with a 7.8
percent increase in same store sales for the three-month period ended March 28,
2004 as compared to the first quarter of 2003.
Consolidated revenues, including management and license fees advanced to
$13.3 million in the first quarter of 2004 from $11.9 million in the
year-earlier period. Total systemwide sales, including all restaurants, owned,
operated, managed and licensed, rose 13.9 percent in the quarter to $19.7
million from $17.3 million in 2003. 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.
Grill Concepts previously announced that as a result of a recent review of
its stock option plan, a determination was made that grants under the plan
require variable accounting treatment. This accounting treatment reflects the
difference between the current market price of the company's stock and the
option's exercise price and results in an associated non-cash charge to
compensation expense. As a result of the change in accounting treatment, the
company filed an amended Form 10-K for the period ended December 28, 2003
restating the financial results for the 2003 full year to reflect the expensing
of employee stock options.
For the 2004 first quarter, the company achieved net income of $87,000, or
$0.01 per diluted share, which includes stock option compensation expense of
$187,000. This compares with restated net income of $342,000, or $0.06 per
diluted share, a year earlier, including stock option compensation expense of
$5,000.
"From an operating perspective, we are off to a strong start in 2004," said
Robert Spivak, president and chief executive officer of Grill Concepts. "The
strong revenue growth demonstrates continued appreciation for our brand and
reinforces our confidence as the year unfolds."
Same store sales for the Daily Grill restaurants were 8.7 percent higher
compared with a year ago, and The Grill on the Alley restaurants achieved an
increase of 6.1 percent in comparable sales over the first quarter of 2003.
Spivak said first quarter revenues reflected another period of improved check
averages and increased guest counts, leading to higher weighted average weekly
sales of 6.1 percent at The Grill restaurants and 2.8 percent at Daily Grill
restaurants.
During the first quarter, the company opened its fourth Daily Grill in the
greater Washington, D.C. area in the 390-room Hyatt Regency at One Bethesda
Metro Center. Recently, Grill Concepts announced plans to open a Daily Grill
restaurant in the heart of Santa Monica's entertainment hub in the Colorado
Center, a property leased and managed by Tishman Speyer Properties, formerly
known as MGM Plaza, and now home to tenants Metro-Goldwyn-Mayer Studios, CBS
Enterprises and HBO.
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 23 restaurants including four The Grill on the
Alley-branded restaurants in Beverly Hills, Hollywood, San Jose, California, and
Chicago, as well as 19 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 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
(unaudited)
THREE MONTHS ENDED
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MARCH 28, MARCH 30,
2004 2003
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(restated)
Revenues:
Sales $12,958,000 $11,667,000
Management and license fees 296,000 255,000
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Total revenues 13,254,000 11,922,000
Cost of sales 3,630,000 3,174,000
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Gross profit 9,624,000 8,748,000
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Costs and expenses:
Restaurant operating expenses 7,776,000 6,997,000
Gain on disposal of assets -- (12,000)
General and administrative 1,227,000 910,000
Depreciation and amortization 386,000 432,000
Pre-opening costs 147,000 187,000
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Total operating expenses 9,536,000 8,514,000
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Income from operations 88,000 234,000
Interest expense, net (34,000) (48,000)
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Income before provision for income taxes, equity
in loss of joint venture and minority interest 54,000 186,000
Provision for income taxes (23,000) (55,000)
Minority interest in loss of subsidiaries 60,000 216,000
Equity in loss of joint venture (4,000) (5,000)
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Net income $ 87,000 $ 342,000
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Preferred dividends accrued or paid (13,000) (13,000)
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Net income applicable to common stockholders $ 74,000 $ 329,000
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Net income per share
Basic $ 0.01 $ 0.06
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Diluted $ 0.01 $ 0.06
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Weighted average shares outstanding
Basic 5,545,864 5,537,071
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Diluted 6,192,910 5,537,071
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Note: The consolidated financial statement for the three months ended March 30,
2003 have been restated from those originally issued by the company to
reflect the accounting for employee stock options using variable accounting
treatment.
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
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MARCH 28, MARCH 30,
2004 2003
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Total consolidated revenues $13,254,000 $11,922,000
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Managed restaurants sales 4,572,000 3,302,000
Licensed restaurants sales 2,142,000 2,295,000
Less management and license fees (296,000) (255,000)
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Total systemwide sales $19,672,000 $17,264,000
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