Exhibit 99.1
[Creative Host Services, Inc. LOGO]
CREATIVE HOST SERVICES, INC. ANNOUNCES FOURTH
QUARTER AND YEAR END FINANCIAL RESULTS FOR 2003
FOR IMMEDIATE RELEASE
CONTACT:
Creative Host Services, Inc. Hayden Communications, Inc.
(858) 675-7711 (843) 272-4653
* 2003 REVENUES INCREASED 14.6% TO $39.7 MILLION
* 2003 INCOME FROM OPERATIONS INCREASED 29.8% TO $2.5 MILLION
* 2003 EPS OF $0.07 VERSUS $0.16 PRIMARILY DUE TO INCREASED INTEREST
EXPENSE AND HIGHER INCOME TAX PROVISION
* 4th QUARTER REVENUE INCREASED 22.7% TO $10.9 MILLION
* 11th CONSECUTIVE QUARTER OF PROFITABILITY
San Diego, CA-April 2, 2004 - Creative Host Services, Inc. (NASDAQ:CHST) today
announced financial results for the fourth quarter and year ended December 31,
2003, the Company's 11th consecutive quarter and third consecutive year of
profitability.
Revenues for the three months ended December 31, 2003 increased 22.7 percent to
$10,909,074 compared to revenues of $8,892,003 for the comparable prior year
period. Net income was $39,442, compared to net income of $123,158 last year.
Revenues for the fiscal year ended December 31, 2003 were $39.7 million, an
increase of 14.6 percent compared to revenues of $34.6 million for the
comparable prior year period. Income from operations increased 29.8 percent to
$2.5 million, compared to $1.9 million reported last year. Net income for the
year decreased to $622,700, or $0.07 per diluted share, from $1.3 million, or
$0.16 per diluted share last year. The decline in net income was primarily
attributable to an increase in interest expense due to the conversion and early
retirement of convertible notes and an increase in the provision for income
taxes.
The balance sheet also remained strong with $1.5 million in cash. Shareholders'
equity was $19.1 million on December 31, 2003, representing a 7.8 percent
increase from the $17.7 million on December 31, 2002.
Sayed Ali, President and Chairman of the Board, commented, "Continued
improvement in revenue and operating income produced another profitable quarter
and year for the Company. Increased interest expense and increased income taxes
impacted our net income, but operating income increased compared to last year,
demonstrating our improved efficiency and the ability of management to leverage
its increased scale. We continue to work to obtain the approval of airport and
government authorities to proceed with our planned merger with Compass Group
USA, and anticipate obtaining the required consents and finalizing the other
conditions of the offer as quickly as possible."
About Creative Host Services:
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Creative Host Services, Inc. (including its wholly-owned subsidiary, GladCo
Enterprises, Inc.) is 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 operates more than 130 concession facilities at 30
airports and enjoys co-branding relationships with several national and
regional companies such as Carl's Jr., 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.
Safe Harbor Provision:
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Statements contained in this press release that are not descriptions of
historical facts are "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act. Forward looking statements include
statements related to anticipated trends in revenues, plans for future
expansion and acquisition of new concession contracts, future financial
performance and projected revenues and income. Such statements often include
words such as "anticipate," "estimate", "project", "intends," "believes,"
"plans, "approximately," "likely," and similar expressions. Because Forward-
looking statements are subject to risks and uncertainties, actual results may
differ materially from those expressed or implied by such forward looking
statements. The risks and uncertainties that contribute to the uncertain
nature of forward looking statements include, but are not limited to, those
related to competition, development and construction activities, dependence on
existing management, leverage and debt service, possible early termination on
concession contracts, government regulation, domestic and international
economic conditions and the impact of war and terrorism on airline travel.
Additional information on factors that may affect the business and financial
results of the company can be found in documents filed by the Company with the
Securities and Exchange Commission. All forward-looking statements contained
in this press release speak only as of the date on which they were made.
Creative Host Services, Inc. undertakes no obligation to update such statements
to reflect events that occur or circumstances that exist after the date on
which they were made.
-Table Follows-
CREATIVE HOST SERVICES, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
Three Months Ended Year Ended
December 31, December 31,
------------------------ -----------------------
2003 2002 2003 2002
----------- ----------- ----------- -----------
Total Revenues $10,909,074 $ 8,892,003 $39,684,837 $34,615,454
Costs of Goods Sold 2,912,920 2,398,672 10,473,120 9,319,742
----------- ----------- ----------- -----------
Gross Profit 7,996,154 6,493,331 29,211,717 25,295,712
Operating Costs and
Other Expenses 7,934,214 6,410,691 28,145,567 23,969,426
----------- ----------- ----------- -----------
Pretax Income 61,942 82,640 1,066,150 1,326,286
----------- ----------- ----------- -----------
Provision (Benefit) for
Income Taxes 22,498 (40,518) 443,450 68,481
----------- ----------- ----------- -----------
Net Income $ 39,442 $ 123,158 $ 622,700 $ 1,257,805
=========== =========== =========== ===========
Basic Earnings Per Share $ 0.00 $ 0.01 $ 0.08 $ 0.16
=========== =========== =========== ===========
Diluted Earnings Per Share $ 0.00 $ 0.01 $ 0.07 $ 0.16
=========== =========== =========== ===========
Basic Weighted Average Shares 8,435,247 8,006,210 8,218,043 7,913,223
=========== =========== =========== ===========
Diluted Weighted Average Shares 8,807,542 8,110,037 8,438,978 7,987,819
=========== =========== =========== ===========
BALANCE SHEET HIGHLIGHTS
As of December 31
2003 2002
------------- ------------
Cash $ 1,452,643 $ 1,241,766
Total Current Assets 3,234,806 2,669,262
Net Property & Equipment 22,287,970 17,073,751
Other Assets 6,828,297 5,984,384
Total Assets 32,351,073 25,727,397
Current Liabilities $ 4,869,709 $ 4,005,567
Shareholders' Equity 19,147,238 17,749,962
Total Liabilities and Equity 32,351,073 25,727,397