Granite City Food & Brewery (GCFB)

Year-to-Date Financial Results

Total revenue for the first three quarters of 2009 decreased by 12.9% to $65.0 million compared to $74.6 million for the first three quarters of 2008.  The first three quarters of 2008 included 40 weeks while the first three quarters of 2009 included only 39 weeks. On an adjusted 39-week basis, revenue decreased 10.6%.

For all the restaurants, the restaurant-level IBO margin was 21.7% for the first three quarters of 2009 compared to 19.5% in first three quarters of 2008.  This represents an increase of 2.2 percentage points in restaurant-level IBO.

Total cost of sales was $55.1 million in the first three quarters or 84.8% of sales compared to prior year first three quarters cost of sales of $66.0 million or 88.5% of sales.

General and administrative expenses were $5.9 million or 9.1% of sales for the first three quarters of 2009 compared to $8.2 million or 11.0% of sales for the first three quarters of 2008.

The net loss for the first three quarters of 2009 was $7.0 million or $(0.43) per share compared to a net loss of $11.8 million or $(0.73) per share in the first three quarters of 2008.

Year-to-Date Financial Results

Total revenue for the first half of 2009 decreased by 11.4% to $43.5 million compared to $49.1 million for the first half of 2008.

For all the restaurants, the restaurant-level EBITDA margin was 15.9% for the first half of 2009 compared to 10.3% in first half of 2008.  This represents an increase of 5.6 percentage points in restaurant-level EBITDA.

Total cost of sales was $36.6 million in the first half or 84.1% of sales compared to prior year first half cost of sales of $44.0 million or 89.7% of sales.

General and administrative expenses were $4.5 million or 10.3% of sales for the first half of 2009 compared to $5.5 million or 11.1% of sales for the first half of 2008.  The company incurred $501,000 in restructuring costs and legal costs related to restructuring during first half of 2009.  Excluding these costs, general and administrative costs would have been $4.0 million or 9.2% of revenue.

The net loss for the first half of 2009 was $5.3 million or $(0.32) per share compared to a net loss of $7.6 million or $(0.47) per share in the first half of 2008.

Year-to-Date Financial Results

Revenue increased 26.8% to $96.3 million for the fiscal year ended December 30, 2008, compared to $75.9 million for the fiscal year ended December 25, 2007, aided by seven new restaurants and the additional fiscal week in the third quarter of 2008.

For all the restaurants, the restaurant-level EBITDA margin was 11.8% for fiscal year 2008, while the restaurant-level EBITDA margin for comparable restaurants was 12.9%.  The overall restaurant-level EBITDA margin was negatively impacted by newer restaurants open for less than one year.

General and administrative expenses were $10.9 million or 11.3% of sales for fiscal year 2008 compared to $8.6 million or 11.4% of sales for 2007.

The net loss for fiscal year 2008 was $15.8 million or $(0.97) per share compared to a net loss of $9.6 million or $(0.62) per share for 2007.

Year-to-Date Financial Results

Revenue increased 32.7% to $74.6 million for the forty weeks ended September 30, 2008, compared to $56.2 million for the 39 weeks ended September 25, 2007, aided by seven new restaurants, and the additional fiscal week in the third quarter of 2008.

For all the restaurants, the restaurant-level EBITDA margin was 11.5% for the first three quarters of fiscal year 2008, while the restaurant-level EBITDA margin for comparable restaurants was 14.6%.  Similar to second quarter margins, the overall restaurant-level EBITDA margin was negatively impacted by newer restaurants open for less than one year.

General and administrative expenses were $8.2 million or 11.0% of sales for the first three quarters of 2008 compared to $5.7 million or 10.1% of sales for the same period of 2007.

The net loss for the first three quarters of fiscal year 2008 was $11.8 million or $(0.73) per share compared to a net loss of $5.1 million or $(0.33) per share for the first three quarters of 2007.