UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
| x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the thirteen weeks ended September 26, 2004
OR
| ¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission file number 0-21423
BJ’s RESTAURANTS, INC.
(Exact name of registrant as specified in its charter)
| California | 33-0485615 | |
| (State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification Number) |
16162 Beach Boulevard
Suite 100
Huntington Beach, California 92647
(Address and zip code of principal executive offices)
(714) 848-3747
(Registrants telephone number, including area code)
CHICAGO PIZZA & BREWERY, INC.
(Former name or former address, if changed since last report.)
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES x NO ¨.
Indicate by check mark if the filer is an accelerated filer (as defined in Rule 12B-2 of the Act). YES x NO ¨.
As of October 18, 2004, there were 19,751,786 shares of Common Stock of the Registrant outstanding.
| Page | ||||
| PART I. |
FINANCIAL INFORMATION | |||
| Item 1. |
||||
| Consolidated Balance Sheets – September 26, 2004 (Unaudited) and December 28, 2003 |
1 | |||
| 2 | ||||
| 3 | ||||
| 4 | ||||
| 5 | ||||
| Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations | 7 | ||
| Item 3. |
Quantitative and Qualitative Disclosures about Market Risk | 14 | ||
| Item 4. |
Controls and Procedures | 14 | ||
| PART II. |
OTHER INFORMATION | |||
| Item 1. |
Legal Proceedings | 14 | ||
| Item 2. |
Changes in Securities and Use of Proceeds | 15 | ||
| Item 3. |
Defaults Upon Senior Securities | 15 | ||
| Item 4. |
Submission of Matters to a Vote of Security Holders | 15 | ||
| Item 5. |
Other Information | 15 | ||
| Item 6. |
Exhibits and Reports on Form 8-K | 16 | ||
| SIGNATURES | 16 | |||
| Certifications |
||||
Item 1. CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED BALANCE SHEETS
(In thousands)
| September 26, (Unaudited) |
December 28, 2003 | |||||
| Assets |
||||||
| Current assets: |
||||||
| Cash and cash equivalents |
$ | 441 | $ | 4,899 | ||
| Investments |
22,523 | 22,041 | ||||
| Accounts and other receivables |
2,106 | 1,869 | ||||
| Inventories |
1,074 | 959 | ||||
| Prepaids and other current assets |
16 | 1,164 | ||||
| Deferred taxes |
1,053 | 1,175 | ||||
| Total current assets |
27,213 | 32,107 | ||||
| Property and equipment, net |
59,559 | 46,306 | ||||
| Goodwill |
4,673 | 4,762 | ||||
| Notes receivable |
944 | — | ||||
| Other assets, net |
459 | 530 | ||||
| Total assets |
$ | 92,848 | $ | 83,705 | ||
| Liabilities and Shareholders’ Equity |
||||||
| Current liabilities: |
||||||
| Accounts payable |
$ | 5,519 | $ | 2,798 | ||
| Accrued expenses |
8,223 | 8,533 | ||||
| Current portion of reserve for store closures |
— | 55 | ||||
| Current portion of notes payable to related parties |
— | 151 | ||||
| Total current liabilities |
13,742 | 11,537 | ||||
| Deferred income taxes |
663 | 143 | ||||
| Reserve for store closures |
72 | 74 | ||||
| Other liabilities |
1,463 | 900 | ||||
| Total liabilities |
15,940 | 12,654 | ||||
| Commitments and contingencies |
||||||
| Shareholders’ equity: |
||||||
| Preferred stock, 5,000 shares authorized, none issued or outstanding |
— | — | ||||
| Common stock, no par value, 60,000 shares authorized and 19,752 and 19,649 shares issued and outstanding as of September 26, 2004 and December 28, 2003, respectively |
63,000 | 62,513 | ||||
| Capital surplus |
2,497 | 2,109 | ||||
| Retained earnings |
11,411 | 6,429 | ||||
| Total shareholders’ equity |
76,908 | 71,051 | ||||
| Total liabilities and shareholders’ equity |
$ | 92,848 | $ | 83,705 | ||
See accompanying notes to unaudited consolidated financial statements.
1
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
| For The Thirteen Weeks Ended |
For The Thirty-Nine Weeks Ended | ||||||||||||
| September 26, 2004 |
September 28, 2003 |
September 26, 2004 |
September 28, 2003 | ||||||||||
| Revenues |
$ | 32,867 | $ | 26,744 | $ | 91,159 | $ | 75,951 | |||||
| Costs and expenses: |
|||||||||||||
| Cost of sales (see related party note) |
8,668 | 7,127 | 23,701 | 20,149 | |||||||||
| Labor and benefits |
11,813 | 9,383 | 32,574 | 27,009 | |||||||||
| Occupancy |
2,463 | 2,045 | 6,919 | 5,660 | |||||||||
| Operating expenses |
3,715 | 3,161 | 9,987 | 8,716 | |||||||||
| General and administrative |
2,474 | 2,203 | 7,207 | 6,555 | |||||||||
| Depreciation and amortization |
1,330 | 993 | 3,671 | 2,870 | |||||||||
| Restaurant opening expense |
804 | 526 | 1,813 | 1,229 | |||||||||
| Gain from sale of Pietro’s restaurants |
— | — | (1,658 | ) | — | ||||||||
| Total costs and expenses |
31,267 | 25,438 | 84,214 | 72,188 | |||||||||
| Income from operations |
1,600 | 1,306 | 6,945 | 3,763 | |||||||||
| Other income: |
|||||||||||||
| Interest income, net |
110 | 84 | 334 | 277 | |||||||||
| Other income, net |
42 | 95 | 156 | 377 | |||||||||
| Total other income |
152 | 179 | 490 | 654 | |||||||||
| Income before income taxes |
1,752 | 1,485 | 7,435 | 4,417 | |||||||||
| Income tax expense |
549 | 517 | 2,453 | 1,543 | |||||||||
| Net income |
$ | 1,203 | $ | 968 | $ | 4,982 | $ | 2,874 | |||||
| Net income per share: |
|||||||||||||
| Basic |
$ | 0.06 | $ | 0.05 | $ | 0.26 | $ | 0.15 | |||||
| Diluted |
$ | 0.06 | $ | 0.05 | $ | 0.24 | $ | 0.14 | |||||
| Weighted average number of shares outstanding: |
|||||||||||||
| Basic |
19,455 | 19,400 | 19,473 | 19,400 | |||||||||
| Diluted |
20,538 | 20,566 | 20,546 | 20,389 | |||||||||
See accompanying notes to unaudited consolidated financial statements.
2
UNAUDITED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
(In thousands)
| Common Stock |
||||||||||||||
| Shares |
Amount |
Capital Surplus |
Retained Earnings |
Total | ||||||||||
| Balance, December 28, 2003 |
19,649 | $ | 62,513 | $ | 2,109 | $ | 6,429 | $ | 71,051 | |||||
| Exercise of stock options, net |
103 | 487 | — | — | 487 | |||||||||
| Tax benefit from stock option exercises |
— | — | 388 | — | 388 | |||||||||
| Net income |
— | — | — | 4,982 | 4,982 | |||||||||
| Balance, September 26, 2004 |
19,752 | $ | 63,000 | $ | 2,497 | $ | 11,411 | $ | 76,908 | |||||
See accompanying notes to unaudited consolidated financial statements.
3
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
| For The Thirty-Nine Weeks Ended |
||||||||
| September 26, 2004 |
September 28, 2003 |
|||||||
| Cash flows from operating activities: |
||||||||
| Net income |
$ | 4,982 | $ | 2,874 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
| Depreciation and amortization |
3,671 | 2,870 | ||||||
| Deferred income taxes |
642 | 758 | ||||||
| Tax benefit from stock options exercised |
388 | 214 | ||||||
| Gain on sale of Pietro’s restaurants |
(1,658 | ) | — | |||||
| Changes in assets and liabilities: |
||||||||
| Accounts and other receivables |
(243 | ) | (3 | ) | ||||
| Notes receivable |
6 | — | ||||||
| Inventories |
(115 | ) | (117 | ) | ||||
| Prepaids and other current assets |
1,148 | 1,159 | ||||||
| Other assets, net |
18 | — | ||||||
| Accounts payable |
2,721 | (2,682 | ) | |||||
| Accrued expenses |
(425 | ) | 368 | |||||
| Reserve for store closures |
(57 | ) | — | |||||
| Other liabilities |
610 | 252 | ||||||
| Net cash provided by operating activities |
11,688 | 5,693 | ||||||
| Cash flows from investing activities: |
||||||||
| Purchases of property and equipment |
(17,250 | ) | (11,145 | ) | ||||
| Purchases of investments |
(17,464 | ) | (27,979 | ) | ||||
| Proceeds from investments sold |
16,982 | 8,472 | ||||||
| Proceeds from sale of Pietro’s restaurants |
1,250 | 36 | ||||||
| Net cash used in investing activities |
(16,482 | ) | (30,616 | ) | ||||
| Cash flows from financing activities: |
||||||||
| Proceeds from exercise of stock options |
487 | 290 | ||||||
| Payments on notes payable to related parties |
(151 | ) | (294 | ) | ||||
| Net cash provided by (used in) financing activities |
336 | (4 | ) | |||||
| Net decrease in cash and cash equivalents |
(4,458 | ) | (24,927 | ) | ||||
| Cash and cash equivalents, beginning of period |
4,899 | 29,053 | ||||||