CONTACT: |
Richard
Bagge
Interim Chief Financial Officer |
(857-415-5020)
InvestorRelations@getcosi.com
Così, Inc. Reports
2015 First Quarter Results
Boston, MA - May 14, 2015 - Così,
Inc. (NASDAQ: COSI), the fast casual restaurant company, today
reported a net loss for the 2015 first quarter ended March 30,
2015, of $(4.3 million) or $(0.12) per basic and diluted common
share, compared with a net loss of $(3.1 million) or $(0.17) per
basic and diluted common share, in the 2014 first quarter.
System-wide comparable restaurant
sales for the 2015 first quarter, as measured for restaurants in
operation for more than 15 months, recorded an aggregate 1.2%
increase compared to the 2014 first quarter. The breakdown in
comparable sales between Company-owned and franchise-operated
restaurants is as follows:
For the 13 weeks
ended
March 30, 2015
Company-owned
4.4%
Franchise-operated
-2.7%
Total
System
1.2%
Così's total revenues for the 2015
first quarter decreased by $0.5 million to $17.9 million from $18.4
million in the 2014 first quarter. Company-owned net restaurant
sales decreased by $0.5 million to $17.2 million from $17.7 million
for the 2014 first quarter. Franchise Fees and royalty
revenues for the 2015 first quarter contributed $0.7 million
compared to $0.6 million in the 2014 first quarter. The
decline in revenues in the 2015 first quarter compared to the 2014
first quarter was primarily driven by the closed stores subsequent
to the first quarter of 2014, offset by the increase in comparable
Company-owned restaurant sales, the opening of one new
Company-owned location and transfer of three locations from
franchise-operated to Company-owned.
"With the Hearthstone merger
complete, the technology base in place and the refreshes underway,
we are moving forward as planned for 2015," stated RJ Dourney, Cosi
President and CEO. "Miguel Rossy joining us as CFO fills out
the executive team, and I am more confident than ever in our
ability to make Cosi a strong financial performer," Dourney went on
to say.
2015 First
Quarter Financial Performance Review
Così's aforementioned $0.5 million decrease in Company-owned net
sales represented a 2.9% decrease in the 2015 first quarter to
$17.2 million, compared to $17.7 million in the 2014 first quarter,
due to a sales decline of $1.7 million resulting from restaurants
closed subsequent to the 2014 first quarter which was offset by
$0.7 million or 4.4% increase in comparable restaurant net
sales. Additionally, approximately $0.6 million of sales are
from the opening of one new Company-owned location and transfer of
three locations from franchise-operated to Company-owned.
Così reported that, as of the
three-month period ended March 30, 2015, it had cash balances of
$13.9 million.
The results disclosed in this
press release are unaudited.
About Così,
Inc.
Così®
(http://www.getcosi.com) is a national fast casual restaurant chain
that has developed featured foods built around a secret,
generations-old recipe for crackly crust flatbread. This artisan
bread is freshly baked in front of customers throughout the day in
open-flame stone-hearth ovens prominently located in each of the
restaurants. Così's warm and urbane atmosphere is geared towards
its sophisticated, upscale, urban and suburban guests. There are
currently 78 Company-owned and 34 franchise restaurants operating
in sixteen states, the District of Columbia, Costa Rica and the
United Arab Emirates. The Così® vision is to
become America's favorite fast casual restaurant by providing
customers authentic, innovative, savory food while remaining an
affordable luxury.
The Così® menu features
Così® sandwiches,
freshly-tossed salads, bowls, breakfast wraps, melts, soups,
Così®
Squagels®, flatbread
pizzas, S'mores, snacks and other desserts, and a wide range of
coffee and coffee-based drinks and other specialty beverages.
Così® restaurants
are designed to be welcoming and comfortable with an eclectic
environment. Così's sights, sounds, and spaces create a tasteful,
relaxed ambience that provides a fresh and new dining
experience.
"Così," "(Sun & Moon Design)"
and related marks are registered trademarks of Così, Inc. in the
U.S.A. and certain other countries. Copyright © 2014 Così, Inc. All
rights reserved.
"SAFE HARBOR" STATEMENT UNDER THE
PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. This press
release contains statements that constitute forward- looking
statements under the federal securities laws. Forward-looking
statements are statements about future events and expectations and
not statements of historical fact. The words "believe," "may,"
"will," "should," "anticipate," "estimate," "expect," "intend,"
"objective," "seek," "plan," "strive," or similar words, or
negatives of these words, identify forward- looking statements. We
qualify any forward-looking statements entirely by these cautionary
factors. Forward-looking statements are based on management's
beliefs, assumptions and expectations of our future economic
performance, taking into account the information currently
available to management. Forward-looking statements involve risks
and uncertainties that may cause our actual results, performance or
financial condition to differ materially from the expectations of
future results, performance or financial condition we express or
imply in any forward-looking statements. Factors that could
contribute to these differences include, but are not limited to:
the results being reported in this release are unaudited and
subject to change; the cost of our principal food products and
supply and delivery shortages and interruptions; labor shortages or
increased labor costs; changes in demographic trends and consumer
tastes and preferences, including changes resulting from concerns
over nutritional or safety aspects of beef, poultry, produce, or
other foods or the effects of food-borne illnesses, such as E.
coli, "mad cow disease" and avian influenza or "bird flu";
competition in our markets, both in our business and in locating
suitable restaurant sites; our operation and execution in new and
existing markets; expansion into new markets including foreign
markets; our ability to attract and retain qualified franchisees
and our franchisees' ability to open restaurants on a timely basis;
our ability to locate suitable restaurant sites in new and existing
markets and negotiate acceptable lease terms; the rate of our
internal growth and our ability to generate increased revenue from
our existing restaurants; our ability to generate positive cash
flow from existing and new restaurants; fluctuations in our
quarterly results due to seasonality; increased government
regulation and our ability to secure required government approvals
and permits; our ability to create customer awareness of our
restaurants in new markets; the reliability of our customer and
market studies; cost effective and timely planning, design and
build out of restaurants; our ability to recruit, train and retain
qualified corporate and restaurant personnel and management; market
saturation due to new restaurant openings; inadequate protection of
our intellectual property; our ability to obtain additional capital
and financing; adverse weather conditions which impact customer
traffic at our restaurants; and adverse economic conditions.
Further information regarding factors that could affect our results
and the statements made herein are included in our filings with the
Securities and Exchange Commission.
Additional information is available
on Così's website at
http://www.getcosi.com in the investor relations section.
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Così, Inc via Globenewswire
HUG#1921629