General and administrative expenses were $5.7 million or 8.2% of revenue for the first three quarters of 2011 compared to $4.8 million or 7.1% of revenue for the first three quarters of 2010. General and administrative costs included non-cash stock compensation of $475,000 in the first three quarters of 2011 compared to $276,000 in the first three quarters of 2010.
The net loss for the first three quarters of 2011 was $1.5 million compared to a net loss of $2.9 million in the first three quarters of 2010. Net loss per share available to common shareholders was $(1.39) and $(0.40), respectively. Net loss per share available to common shareholders in 2011 included $(0.05) attributable to dividends declared and $(1.08) attributable to the non-cash beneficial conversion feature. There were a weighted average of 6.0 million and 7.4 million shares of common stock outstanding in the first three quarters 2011 and 2010, respectively.
At September 27, 2011 the company’s cash balance was $1.4 million and the unused balance of its $5 million line of credit facility at Fifth Third Bank was $4 million.
Cadillac Ranch TransactionPursuant to the recently announced Cadillac Ranch master asset purchase agreement, Granite City has closed on the purchase of the assets of one of the restaurants, CR Minneapolis, LLC (“CRM”), which operates a Cadillac Ranch All American Restaurant Bar & Grill in the Mall of America in Bloomington, Minnesota. The purchase price for these assets was $1.4 million, subject to adjustment, including a reduction if the purchase of the remaining assets is not consummated through no fault of Granite City. Granite City has assumed CRM’s lease at the Mall of America for the restaurant with certain modifications. The restaurants subject to the purchase agreement are owned by Clint R. Field or Eric Schilder, managed by Restaurant Entertainment Group and located in Pittsburgh, Pennsylvania; Oxon Hill, Maryland; Indianapolis, Indiana (one restaurant in operation and another under construction); Hallandale Beach, Florida; Bloomington, Minnesota; and Miami, Florida. Granite City also has an option to buy the assets of an eighth restaurant in Annapolis, Maryland for nominal consideration and assumption of the related lease. The aggregate purchase price for the assets is $9 million, subject to adjustment including an increase of $200,000 for post-acquisition consulting services. Additional debt or equity financing will be required to consummate the balance of the asset purchases.