Third Quarter 2012 Financial Results
Total revenue for third quarter 2012 increased by 35.7% to $31.1 million compared to $22.9 million for the third 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 $5.9 million of the $8.2 million increase in sales. Total cost of sales before occupancy was $23.5 million in the third quarter of 2012 or 75.3% of revenue compared to prior year third quarter cost of sales before occupancy of $17.6 million or 76.9% of revenue.
General and administrative expenses were $2.3 million or 7.4% of revenue for the third quarter of 2012 compared to $2.0 million or 8.7% of revenue for the third quarter of 2011. As this increase was primarily attributable to expenses associated with our Cadillac Ranch acquisitions, we expect similar general and administrative expenses in future months. However, 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.
The net loss for the third quarter of 2012 was $0.9 million compared to a net loss of $1.0 million in the third 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 $0.7 million, thus affecting our net income in the third quarter of 2012. Net loss per share available to common shareholders was $(0.14) and $(0.26) for the third quarters of 2012 and 2011, respectively. Net loss per share available to common shareholders in the third quarter of 2012 included $(0.03) attributable to a declared dividend. There was a weighted average of 8.0 million and 4.7 million shares of common stock outstanding in the third quarters of 2012 and 2011, respectively.
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