GRILE Grill Concepts Inc. (MM)

Grill Concepts Reports Strong 2005 First Quarter - Company Posts $0.11 EPS in Current First Quarter vs. $0.02 EPS a Year Ago - LOS ANGELES, June 1 /PRNewswire-FirstCall/ -- Grill Concepts, Inc. (NASDAQ:GRILE) today reported substantially higher net income of $682,000, or $0.11 per diluted share, for the three months ended March 27, 2005, compared with $117,000, or $0.02 per diluted share, as adjusted, in the prior-year period. For the 2005 first quarter, total revenues, including cost reimbursements and management and license fees, rose 4.3 percent to $17.2 million from $16.5 million, as restated, for the corresponding prior-year period. Sales at company-owned restaurants grew 2.9 percent to $13.4 million from $13.0 million a year earlier. Sales from non-consolidated restaurants were also higher, resulting in a 20.3 percent increase in management and license fees of $356,000, compared with $296,000 in the fiscal 2004 first quarter. Same store sales improved 1.2 percent. "The new year is off to a solid start as our renewed focus on improving operational efficiencies begins to yield significant benefits to the bottom line," said Robert Spivak, president and chief executive officer of Grill Concepts. "The sharp increase in net income was driven, primarily, by a nearly twelve-fold improvement in year-over-year operating income, which benefited from reductions in cost of sales, restaurant operating expenses and general and administrative expenses as a percentage of sales revenues. "At the same time, we continue to build on the strong brand equity of our Daily Grill and Grill on the Alley restaurants, with ongoing strength particularly at our newer Daily Grill locations. We are very pleased with the initial performance of the Santa Monica Daily Grill, opened in March of this year, and are excited about our newest Daily Grill, which just opened in one of the busiest and most visible locations in downtown Los Angeles," Spivak said. As previously announced, the company's 2004 quarterly results were adjusted to conform with U.S. generally accepted accounting practices (GAAP) as expressed in a February 7, 2005 letter by the Chief Accountant of the Securities and Exchange Commission (SEC) to the American Institute of Certified Public Accountants, and to correct the estimate of useful lives of assets and correct accounting for complimentary and promotional activities. About Grill Concepts, Inc. Grill Concepts owns and manages upscale casual and fine dining, full service restaurants under two core brand names: The Grill on the Alley and Daily Grill. The company operates 25 restaurants including four The Grill on the Alley-branded restaurants in Beverly Hills, Hollywood, San Jose, California, and Chicago, as well as 21 Daily Grill restaurants in Southern and Northern California, the Washington, D.C. metropolitan region, Houston, Texas, Portland, Oregon and Skokie, Illinois. This news release contains forward-looking statements, which are based on current operations, plans and expectations. Such statements include, but are not limited to, the company's ability to continue expanding its restaurant network. Actual results may differ materially from these statements due to risks and uncertainties beyond the company's control, which are detailed from time to time in the company's filings with the United States Securities and Exchange Commission. CONTACTS: Philip Gay Chief Financial Officer Grill Concepts, Inc. (310) 820-5559 Roger Pondel/Angie Yang PondelWilkinson Inc. (310) 279-5980 GRILL CONCEPTS, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (unaudited) Three Months Ended March 27, March 28, 2005 2004 (restated) Revenues: Sales $13,387,000 $13,013,000 Cost reimbursements 3,469,000 3,190,000 Management and license fees 356,000 296,000 Total revenues 17,212,000 16,499,000 Operating expenses: Cost of sales 3,738,000 3,772,000 Restaurant operating expenses 7,701,000 7,672,000 Reimbursed costs 3,469,000 3,190,000 General and administrative 1,046,000 1,180,000 Depreciation and amortization 461,000 479,000 Pre-opening costs 91,000 147,000 Total operating expenses 16,506,000 16,440,000 Income from operations 706,000 59,000 Interest expense, net (37,000) (66,000) Income (loss) before provision for income taxes and minority interest 669,000 (7,000) Provision for income taxes (78,000) (23,000) Minority interest 91,000 147,000 Net income 682,000 117,000 Preferred dividends accrued (13,000) (13,000) Net income applicable to common stock $669,000 $104,000 Net income per share applicable to common stock: Basic net income $0.12 $0.02 Diluted net income $0.11 $0.02 Weighted average shares outstanding: Basic 5,650,146 5,545,864 Diluted 6,092,223 6,192,910 DATASOURCE: Grill Concepts, Inc. CONTACT: Philip Gay, Chief Financial Officer of Grill Concepts, Inc., +1-310-820-5559; or Roger Pondel or Angie Yang, both of PondelWilkinson Inc., +1-310-279-5980, , for Grill Concepts, Inc.

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