020319 Smith & Wollensky Achieves Q4 ProfitabilityMarch 9, 2002New York - The Smith & Wollensky Restaurant Group, Inc. announced financial results for the fourth quarter and year ended December 31, 2001. See attached tables. Fourth Quarter Financial Highlights * The Company achieved profitability, with net income of $340,000 or $.04 per diluted share (before extraordinary item of $.01 per share), compared to a net loss of $2.3 million or $.73 in the final quarter of 2000. The fourth quarter of 2000 included a charge of $2.4 million to close the Maloney & Porcelli restaurant in Washington, D.C. * Revenues were $18.8 million, a 15.6% decrease from the fourth quarter of 2000, and a significant improvement over the 27.3% decline in the third quarter from the third quarter of 2000. * Net cash provided by operating activities was approximately $1.9 million in the fourth quarter of 2001. 2001 Financial Highlights * Revenues were $70.6 million, a 13.3% decline from $81.5 million in 2000. * Comparable sales from owned Smith & Wollensky units (those in operation for 15 months) were $44.9 million for the year, down 10.6% from $50.2 million last year. * Net loss for the year was $3.5 million or $.51 per diluted share (before a one-time extraordinary after- tax charge of $801,000 or $.12 per diluted share due to the early repayment of debt), compared to a net loss of $4.9 million or $1.58 per diluted share in last year's period. * Closed the year with approximately $8.0 million in cash and interest-bearing investments, $1.8 million in long-term debt and shareholders' equity/book value of $56.6 million. Alan Stillman, Chairman and CEO, stated, “This year was the most challenging for Smith & Wollensky, as our business was impacted by the slowdown in the nation's economy and the decline in travel, which was exacerbated by the acts of terrorism. In spite of these circumstances, each of our owned restaurants produced positive EBITDA for the year. Furthermore, we are optimistic based on the sales levels thus far this year.” Recent Results Indicate Continued Recovery * January sales were 13.5% below January of 2001. * February sales, however, increased .7% from February of 2001. Mr. Stillman added, “We are moving ahead with our planned expansion, while continuing to evaluate the current environment as more favorable opportunities for real estate deals become available. We anticipate opening three to five restaurants in the next 21 months. In this regard, construction has commenced on our newest location in Easton Town Center, Columbus, Ohio, which is on track to open in July. We also continue to explore prospects in Boston, Dallas, Houston, Denver, Los Angeles, Richmond, Charlotte and Scottsdale, as well as other locations.” Mr. Stillman concluded, “In these difficult economic times, a strong financial position and aggressive marketing campaign are especially important. While the state of the economy remains uncertain, we are enthusiastic about the Company's long-term prospects due to our continued improvement in sales and operating results, solid balance sheet, nationally recognized brand name, and experienced restaurant and executive management team.”
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