Exhibit 99.1
[CREATIVE HOST LOGO]
CREATIVE HOST SERVICES, INC. ANNOUNCES ITS 8th CONSECUTIVE
QUARTER OF PROFITABILITY FOR THE FIRST QUARTER OF 2003
- Revenues Increased 11% Compared to the Prior Year Quarter-
FOR IMMEDIATE RELEASE
CONTACT:
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Creative Host Services, Inc. Hayden Communications, Inc.
(858) 675-7711 (843) 272-4653
San Diego, CA-May 16, 2003 - Creative Host Services, Inc. (NASDAQ:CHST) a
leading provider of food and beverage concessions in airports throughout the
United States today announced its financial results for the three months
ended March 31, 2003.
Revenues for the first quarter ended March 31, 2003 increased 11% to
$8,492,648 versus $7,642,458 for the comparable prior year period. The
Company operated for the 1st quarter under challenging conditions related to
the war and the outbreak of the SARS virus. Despite the environment, the
Company was able to post a 1.6% increase in same store sales while
experiencing a less than 1% increase in total operating costs and expenses as
a percentage of revenues. Net income was $21,247 or $.00 per diluted share,
compared to $259,048 and $.03 per share for the comparable first quarter
2002. Other factors which contributed to the decrease in reported net income
for the quarter compared to the prior year quarter, include a one-time gain
of $80,487 related to the sale of one concession location in the first
quarter of 2002, start-up costs related to new locations that opened during
the first quarter, and costs and expenses incurred during the refinancing of
existing debt and attaining of additional funds for expansion.
The Company's balance sheet strengthened as current assets increased 18% to
$3,145,360 at March 31, 2003 versus $2,669,262 at December 31, 2002.
Shareholders' equity also increased to $18,141,715, representing a book value
of $2.26/share, from $17,749,962 on December 31, 2002, or $2.22/share. (Book
value per share is defined as total shareholders' equity divided by total
shares outstanding as of the quarter end.)
Sayed Ali, President and Chairman of the Board, stated, "While we were
pleased with our top line growth for the quarter, we continue to focus on
improving the operating margins and income of our collective operations. We
were pleased to complete the acquisition of three concession locations at the
Orlando Sanford airport, which embarks approximately 1.2 million passengers
per year."
Mr. Ali and Lynnette McCullough, the Company's Chief Financial Officer, will
hold a conference call to discuss these results. The conference call will
take place at 4:10PM Eastern on Monday, May 19, 2003. Interested participants
should call 888-823-7457 when calling within the United States or 973-582-
2718 when calling internationally. There will be a playback available until
May 26, 2003. To listen to the playback, please call 877-519-4471 when
calling within the United States or 973-341-3080 when calling
internationally. Please use pass code 3939729 for the replay.
This call is being webcast by ViaVid Broadcasting and can be accessed at
Creative Host Services' website at www.creativehostservices.com. The webcast
may also be accessed at ViaVid's website at www.viavid.com. The webcast can
be accessed until June 19, 2003 on either site. To access the webcast, you
will need to have the Windows Media Player on your desktop. For the free
download of the Media Player please visit:
http://www.microsoft.com/windows/windowsmedia/en/download/default.asp.
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, Houlihan's, 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.
- -Tables Follow-
CREATIVE HOST SERVICES, INC.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
Three Months Ended
March 31,
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2003 2002
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Total Revenues $ 8,492,648 $ 7,642,458
Cost of Goods Sold 2,265,212 2,040,724
Other Operating Expenses 4,279,658 3,654,045
Selling, General & Admin. Expenses 1,069,487 1,086,427
Depreciation & Amortization 555,010 505,153
Income from Operations 323,281 356,109
Pretax Income 35,247 287,648
Income Taxes 14,000 28,600
Net Income $ 21,247 $ 259,048
Basic Earnings Per Share $ 0.00 $ 0.03
Diluted Earnings Per Share $ 0.00 $ 0.03
Basic Weighted Average Shares 8,025,787 7,845,962
Diluted Weighted Average Shares 8,135,077 8,478,600
BALANCE SHEET HIGHLIGHTS
March 31st December 31st
2003 2002
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Cash (1) $ 1,750,014 $ 1,241,766
Total Current Assets $ 3,145,360 $ 2,669.262
Property and Equipment, net $18,007,446 $17,073,751
Total Assets $28,675,177 $25,727,397
Total Current Liabilities $ 4,038,019 $ 4,005,567
Total Liabilities $10,533,462 $ 7,977,435
Shareholders' Equity $18,141,715 $17,749,962
Total Liabilities and Equity $28,675,177 $25,727,397
(1) Includes restricted cash of $200,000