Published: May 19, 2005
Smith & Wollensky Reports First Quarter 2005 Financial Results
The Smith & Wollensky Restaurant Group, Inc.
(NASDAQ: SWRG) today announced financial results for the first quarter of
2005, ended April 4, 2005.
Total consolidated restaurant sales for the quarter were $33.0 million, a
7.6% increase from the corresponding period in 2004. Comparable
consolidated restaurant sales for the first quarter of 2005 were $28.8
million, a 0.2% increase over the fourth quarter of 2003.
Net income for the first quarter of 2005 was $447,000, or $0.05 per share
on a diluted basis, compared to a restated loss of $229,000 for the first
quarter of 2004. This restatement is related to lease accounting issues and
to accounting for gift certificates.
Chairman and CEO Alan Stillman said, "The year has started off on a good
note for our restaurants, supported by strong banquet sales and great
response to our newest restaurant in Boston."
Conference Call
Alan Stillman, Chairman & CEO, and Alan Mandel, CFO, will conduct a
conference call to review the Company's financial results for the first
quarter ended April 4, 2005 at 5:00 p.m. ET on Thursday, May 19, 2005.
Interested parties may listen to the live call over the Internet via
http://www.smithandwollensky.com. To listen to the live call, please go to
the website at least 15 minutes early to register and to download and
install any necessary audio software. If you are unable to listen live, the
conference call will also be archived on the website listed above. An audio
recording of the conference call, which may contain material
non-public information regarding the Company's results of operations or
financial condition for the first quarter of 2005, is expected to be posted
on the Company's website under the heading Investor Relations immediately
following the conference call.
About Smith & Wollensky Restaurant Group
The Smith & Wollensky Restaurant Group develops and operates high-end,
high-volume restaurants in major cities across the United States. The
original Smith & Wollensky, a traditional New York steakhouse, opened in
1977 and is currently believed to be the largest-grossing a la carte
restaurant in the country. Since its inception, the company has grown to
include 16 restaurants, including Smith & Wollensky in New York, Miami
Beach, Chicago, New Orleans, Las Vegas, Washington, D.C., Philadelphia,
Columbus, Dallas, Houston, and Boston. SWRG also operates five other
restaurants in New York, including Cite, Maloney & Porcelli, Manhattan
Ocean Club, Park Avenue Cafe, and The Post House.
Except for historical information contained herein, the statements made in
this press release regarding the Company's business, strategy and results
of operations are forward-looking statements which are based on
management's beliefs and information currently available to management.
Readers are cautioned not to put undue reliance on such forward-looking
statements, which are subject to a number of risks and uncertainties that
could cause actual results to differ materially from such statements.
Factors that may cause such differences include changes in economic
conditions generally or in each of the markets in which the Company is
located, unanticipated changes in labor or food costs, changes in consumer
preferences, the level of competition in the high-end segment of the
restaurant industry and the success of the Company's growth strategy. For
a more detailed description of such factors, please see the Company's
filings with the Securities and Exchange Commission. The Company disclaims
any intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise.
THE SMITH & WOLLENSKY RESTAURANT GROUP, INC.
AND SUBSIDIARIES
Unaudited Consolidated Statements of Operations
(dollar amounts in thousands, except per share amounts)
Three Months Ended
April 4, March 29,
2005 2004
--------- ---------
Restated
Consolidated restaurant sales $ 32,994 $ 30,652
--------- ---------
Total cost of consolidated
restaurant sales 29,177 27,571
--------- ---------
Income from consolidated restaurant
operations 3,817 3,081
Management fee income 251 315
--------- ---------
Income from consolidated and managed
restaurants 4,068 3,396
General and administrative expenses 2,324 2,622
Royalty expense 497 442
--------- ---------
Operating income 1,247 332
Interest expense (430) (323)
Amortization of deferred debt
financing costs (32) (18)
Interest income 1 -
--------- ---------
Interest expense, net (461) (341)
Income (loss) before provision for
income taxes 786 (9)
Provision for income taxes 57 52
--------- ---------
Income (loss) before interest in (income)
loss of consolidated variable
interest entity 729 (61)
Interest in (income) loss of consolidated
variable interest entity (282) (168)
--------- ---------
Net income (loss) $ 447 $ (229)
========= =========
Net income (loss) per common share:
Basic $ 0.05 $ (0.02)
========= =========
Diluted $ 0.05 $ (0.02)
========= =========
Weighted average common shares outstanding:
Basic 9,378,415 9,376,249
========= =========
Diluted 9,841,596 9,376,249
========= =========
THE SMITH & WOLLENSKY RESTAURANT GROUP, INC.
AND SUBSIDIARIES
Consolidated Balance Sheets
(dollar amounts in thousands, except per share data)
April 4, January 3,
Assets 2005 2005
--------- ---------
Unaudited Audited
Current assets:
Cash and cash equivalents $ 812 $ 1,821
Short-term investments 207 195
Accounts receivable, net 2,673 2,366
Merchandise inventory 5,078 5,139
Prepaid expenses and other current assets 1,567 1,103
--------- ---------
Total current assets 10,337 10,624
Property and equipment, net 72,630 73,253
Goodwill, net 6,886 6,886
Licensing agreement, net 3,595 3,637
Other assets 4,758 4,728
--------- ---------
Total assets $ 98,206 $ 99,128
========= =========
Liabilities and Stockholders' Equity
Current liabilities:
Current portion of long-term debt $ 3,332 $ 3,329
Accounts payable and accrued expenses 14,410 15,738
--------- ---------
Total current liabilities 17,742 19,067
Obligations under capital lease 11,596 11,624
Long-term debt, net of current portion 9,414 9,611
Deferred rent 8,694 8,647
--------- ---------
Total liabilities 47,446 48,949
Interest in consolidated variable
interest entity (460) (572)
Stockholders' equity:
Common stock (par value $.01; authorized
40,000,000 shares; 9,380,349 and
9,378,349 shares issued and outstanding
at April 4, 2005 and January 3, 2005,
respectively) 94 94
Additional paid-in capital 70,012 70,002
Accumulated deficit (18,980) (19,427)
Accumulated other comprehensive income 94 82
--------- ---------
51,220 50,751
--------- ---------
Total liabilities and
stockholders' equity $ 98,206 $ 99,128
========= =========
Distributed by Market Wire
Copyright © 2012, MarketWire
Copyright © 2012, NewsBlaze,
Daily News
Search News
Daily News
