- We anticipate a continuation of the positive same store sales trend resulting in net sales of between $115 million and $125 million.
- Adjusted EBITDA is expected to be between $7 million and $8 million. Due to the high number of capital leases, management tracks adjusted EBITDA in order to fully account for all store level lease expense. To arrive at adjusted EBITDA, management reduces EBITDA for the difference between the fixed rent recorded and the actual amount paid for rent expense whether pursuant to a capital or operating lease. Additional detail regarding these non-GAAP measures appears below.
- The range of guidance above takes into account potential variance in both the timing and number of completed 2012 Granite City restaurant openings and additional restaurant enhancements as well as the time needed to fully integrate and enhance operations at the acquired Cadillac Ranch locations. Our guidance may also vary due to adjustments resulting from completion of our fiscal year 2011 audit.
- Of note, the Kendall, Florida Cadillac Ranch restaurant was opened in July 2011. All other Cadillac Ranch restaurants were open for all of 2011. The guidance above includes management’s projections for a full year of operations for all acquired Cadillac Ranch locations, including Kendall.
In late 2011, the Company acquired the assets of five Cadillac Ranch restaurants and related intellectual property, and Fifth Third Bank increased the Company’s credit facility by $12.0 million. The Company has entered into an agreement to acquire the assets of a sixth Cadillac Ranch restaurant, namely the Pittsburgh, Pennsylvania location, subject to issuance of the required liquor license.Granite City Food & Brewery is a modern American restaurant and brewery. Everything served at Granite City is made fresh on site using high quality ingredients, including Granite City’s award-winning signature line of craft beers. The extensive menu features moderately priced favorites served in generous portions. Our attractive price point, high service standards, and great food and beer combine for a memorable dining experience. Granite City Food & Brewery Ltd. opened its first restaurant in St. Cloud, Minnesota in 1999 and currently operates 26 Granite City restaurants and 5 Cadillac Ranch restaurants in 13 states. Additional information about Granite City Food & Brewery can be found at the Company’s website ( www.gcfb.net). Forward-Looking Statements Certain statements made in this press release of a non-historical nature constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated. Such factors include, but are not limited to, changes in economic conditions, changes in consumer preferences or discretionary consumer spending, a significant change in the performance of any existing restaurants, our ability to continue funding our operations and meet our debt service obligations, our ability to maintain our NASDAQ listing, and the risks and uncertainties described in our Current Report on Form 8-K filed with the Securities and Exchange Commission on May 17, 2011. Non-GAAP Financial Measures Additionally, this press release contains certain non-GAAP financial measures, including references to EBITDA and adjusted EBITDA. As compared to the nearest GAAP measurement for our company, EBITDA represents operating loss with the add-back of interest expense, pre-opening expenses, depreciation and amortization, gain on disposal of assets, exit or disposal costs, non-cash share-based compensation and any provision for income taxes. As compared to the nearest GAAP measurement for our company, adjusted EBITDA represents operating loss with the add-back of interest expense, pre-opening expenses, depreciation and amortization, gain on disposal of assets, exit or disposal costs, non-cash share-based compensation and any provision for income taxes, and further adjusts for the difference between the amount of fixed rent recorded on the statements of operations and the actual amount paid for rent expense. We use adjusted EBITDA as a way to measure our overall internal operational performance without store openings and/or closings and as a means of evaluating our restaurants’ financial performance compared with our competitors. EBITDA and adjusted EBITDA as we define them may not be comparable to similar measurements used by other companies and are not measures of performance or liquidity presented in accordance with GAAP. These non-GAAP measurements should not be used as substitutes for net loss, net cash provided by or used in operations or other financial data prepared in accordance with GAAP. An historical reconciliation of EBITDA and adjusted EBITDA to net loss is provided herein.
|Unaudited Pro Form Condensed Combined Statement of Operations As Presented on Form 8-K/A filed on January 18, 2012|
|Reconciliation of Net (Loss) Income from Continuing Operations to EBITDA and Adjusted EBITDA (in thousands)|
|Nine Months Ended September 27, 2011*||Twelve Months Ended December 28, 2010**|
|Net (loss) income from continuing operations, as reported||($168)||($2,773)|
|Interest expense (income), net||$3,184||$4,056|
|Exit or disposal activities||($157)||$730|
|Gain on disposal of assets||($35)||($30)|
|Provision for Income Tax||$85||$0|
|Depreciation and amortization||$5,005||$6,342|
* Results include three months of operations for the Kendall, Florida restaurant which opened in July 2011.** Results include the operations of four acquired Cadillac Ranch locations as the fifth location in Kendall, Florida did not open until July 2011.