Exhibit 99.1
[CREATIVE HOST SERVICES LOGO]
CREATIVE HOST SERVICES, INC. ANNOUNCES FOURTH
QUARTER AND YEAR END FINANCIAL RESULTS FOR 2002
FOR IMMEDIATE RELEASE
CONTACT:
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Creative Host Services, Inc. Hayden Communications, Inc
(858) 675-7711 (843) 272-4653
* 2002 NET INCOME INCREASED 115% TO $1.26 MILLION
* 2002 REVENUES INCREASED 13% TO $34.6 MILLION
* 2002 EBITDA INCREASED 21% TO OVER $4 MILLION
* 2002 EPS OF $.16 VERSUS $.08 FOR 2001
* 4TH QUARTER REVENUE INCREASED 18% TO $8.9 MILLION
* 7TH CONSECUTIVE QUARTER OF PROFITABILITY
San Diego, CA-April 7, 2003 - Creative Host Services, Inc. (NASDAQ:CHST)
today announced financial results for the fourth quarter and year ended
December 31, 2002. Highlights included a 115% increase in net income for
2002, and the Company's seventh consecutive quarter of profitability.
Revenues for the three months ended December 31, 2002 increased 18% to
$8,892,003 versus $7,545,192 for the comparable prior year period. Net
income was $123,158 for the quarter, or $.02 per diluted share, versus
$288,404 or $.04 per share for the comparable fourth quarter 2001. This was
the Company's seventh consecutive quarter of profitability. Earnings for the
quarter were partially offset by one time expenses of $203,900 for deal costs
and other related professional fees associated with a financing transaction
that the company terminated in order to establish a more favorable credit
facility. The credit facility commenced in January of 2003.
Revenues for the fiscal year ended December 31, 2002 were $34,615,454
compared to $30,745,851 for the comparable prior year period, representing an
increase of 13%. Net income for the year increased 115% to $1,257,805 from
$586,261 for the year ended December 31, 2001. Earnings per share for 2002
year were $.16 per fully diluted share versus $.08 for the comparable prior
year period. Results of operations for the 2002 year reflect the operations
of locations at twenty one airports during both the years ended December 31,
2001 and December 31, 2002. Sales for those locations were $29,072,487 for
the fiscal year ended December 31, 2001 and $29,720,182 for the fiscal year
ended December 31, 2002, representing an increase of $647,695, or 2.2%.
The balance sheet also remained strong with $1,241,766 in cash as
approximately $1,900,000 was spent building out concession locations in
Newark, New Jersey in 2002. Approximately $1,200,000 of this amount was
financed during 2002 with capitalized lease obligations. Further,
shareholders' equity was $17,749,962 on December 31, 2002, representing a 12%
increase from the December 31, 2001 shareholder's equity of $15,879,502.
Sayed Ali, President and Chairman of the Board, stated, "We are very pleased
to report yet another profitable quarter and year for the Company. We are
particularly happy with the significant increases we saw in net income, and
revenue, as they are a tribute to our continued growth, which was coupled
with improved operating efficiencies throughout the entire organization. As a
result we were able to announce the $13 million senior debt facility with ING
Capital LLC at the first of the 2003 year. This will allow the Company to
continue making complimentary acquisitions and to complete new concessions
which are either in planning stage or already under construction."
About Creative Host Services:
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Creative Host Services, Inc./GladCo Enterprises, Inc. are engaged in the
business of acquiring, managing, and operating airport concessions such as
food and beverage, cocktail and lounge, and news and gift retail facilities
at various locations across the United States. The Company's airport venue
allows its concession locations to provide services to a captive audience
within its airports, thereby limiting competition, and providing for more
predictable revenues than many other retail concepts. Creative Host
Services/GladCo operates more than 100 concession facilities at 26 airports.
To simplify accounting, the Company counts each food-court as one concession.
Creative Host Services, Inc. enjoys co-branding relationships with several
national and regional companies such as Carl's Jr., Schlotsky's Deli, TCBY
Yogurt, Samuel Adams Brew Pubs, Mrs. Fields Cookies, Pretzelmaker, Nathan's
Famous Hot Dogs, Hot Licks Bar & Grill, Yuengling Brewery, and Creative
Croissants. For additional corporate information please visit the Company's
corporate website - www.creativehostservices.com
Statements in this news release that are not descriptions of historical facts
are forward-looking statements that are subject to risks and uncertainties.
Words such as "expect," "intends," "believes," "plans," "anticipates,"
"approximately," and "likely," also identify forward-looking statements. All
forward-looking statements are based on current facts and analyses. Actual
results may differ materially from those currently anticipated due to a
number of factors including, but not limited to history of operating losses,
anticipated future losses, competition, future capital needs, the need for
market acceptance, dependence upon third parties, disruption of vital
infrastructure, disruption of airport services, and due to natural disaster.
All forward-looking statements are made pursuant to the Securities Litigation
Reform Act of 1995. Additional information on factors that may affect the
business and financial results of the Company can be found in filings of the
Company with the Securities and Exchange Commission at www.freeedgar.com
using the Company's trading symbol CHST.
-Table Follows-
CREATIVE HOST SERVICES, INC.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
Three Months Ended Fiscal Year Ended
December 31, December 31,
---------------------- ------------------------
2002 2001 2002 2001
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Net Revenues $8,892,003 $7,545,192 $34,516,454 $30,745,851
Cost of Goods Sold 2,398,672 2,061,228 9,319,742 8,716,551
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Gross Profit 6,493,331 5,483,964 25,295,712 22,029,300
Selling, General &
Admin. Expenses 6,410,691 5,229,356 23,969,426 21,464,791
--------- --------- ---------- ----------
Pretax Income 82,640 254,608 1,326,286 564,509
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Federal Income Tax
Expense (Benefit) (40,518) (33,795) 68,481 (21,752)
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Net Income $ 123,158 $ 288,403 $ 1,257,805 $ 586,261
========= ========= ========== ==========
Basic Earnings
Per Share $ .02 $ .04 $ .16 $ .08
========= ========= ========== ==========
Diluted Earnings
Per Share $ .02 $ .04 $ .16 $ .08
========= ========= ========== ==========
Basic Weighted
Average Shares 8,006,210 7,836,690 7,913,233 7,386,478
========= ========= ========== ==========
Diluted Weighted
Average Shares 8,110,037 7,853,666 7,987,819 7,413,411
========= ========= ========== ==========
BALANCE SHEET HIGHLIGHTS
As of December 31st
2002 2001
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Cash and Equivalents $ 1,241,766 $ 1,801,288
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Total Current Assets 2,669,262 3,098,007
Net Property & Equipment 17,073,751 15,892,732
Other Assets 5,984,384 4,670,961
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Total Assets $25,727,397 $23,661,700
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Current Liabilities $ 4,005,567 $ 3,601,069
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Deferred Income Taxes - -
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Shareholder's Equity 17,749,962 15,879,502
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Total Liabilities and Equity $25,727,397 $23,661,700
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