“Lastly, we are pleased to have completed a common stock financing with CDP in June 2012 which resulted in gross proceeds of $6.5 million. This additional capital will afford us the opportunity to accelerate the growth of the company.”
Second Quarter 2012 Financial Results
Total revenue for second quarter 2012 increased by 26.4% to $30.4 million compared to $24.0 million for the second quarter of 2011. The five Cadillac Ranch restaurants acquired in November and December of 2011 and the one Cadillac Ranch restaurant acquired in May 2012 accounted for approximately $5.0 million of the $6.4 million increase in sales. Total cost of sales before occupancy was $22.7 million in the second quarter of 2012 or 74.8% of revenue compared to prior year second quarter cost of sales before occupancy of $18.2 million or 75.8% of revenue.
General and administrative expenses were $2.4 million or 7.8% of revenue for the second quarter of 2012 compared to $1.9 million or 8.1% of revenue for the second quarter of 2011. With the addition of several key members of management in connection with our May 2011 transaction with CDP and with our Cadillac Ranch acquisitions, we expect general and administrative expenses to run at this higher rate in future months. We believe that the benefit of restaurant, menu and food upgrades and future restaurant unit growth will help to reduce general and administrative expenses as a percentage of revenue. We will monitor these expenses closely and expect to make adjustments as needed.The net loss for the second quarter of 2012 was $1.0 million compared to a net loss of $0.4 million in the second quarter of 2011. Additional depreciation due to the purchase of Cadillac Ranch assets, expenses related to pre-opening costs, and costs related to the Cadillac Ranch asset acquisitions totaled approximately $235 thousand, thus affecting our net income in the second quarter of 2012. Net loss per share available to common shareholders was $(0.25) and $(1.20) for the second quarters of 2012 and 2011, respectively. Net loss per share available to common shareholders in the second quarter of 2012 included $(0.04) attributable to a declared dividend. There was a weighted average of 4.9 million and 5.8 million shares of common stock outstanding in the second quarters of 2012 and 2011, respectively.