Granite City Food & Brewery Ltd · OTC:GCFB
Granite City Food & Brewery — Investor Presentation (May 2013)
33 slides from Granite City Food & Brewery's investor presentation, May 8, 2013
Slide 1: Granite City Food & Brewery Company Presentation
Granite City Food & Brewery Company Presentation
Slide 2: Forward-Looking Statements
This presentation contains forward-looking statements of expected future developments, as defined in the Private Securities Litigation Reform Act of 1995. The forward-looking statements in this presentation refer to our expectations regarding continued operating improvements and our forecasts of fut
Slide 3: Senior Management Presenters
Senior Management Presenters Rob Doran Chief Executive Officer • Former EVP of McDonald’s USA • Leadership Consultant • 30 Years of Restaurant Operating Experience Jim Gilbertson Chief Financial Officer • Served as Original Granite City Board Member • CFO of Granite City Since 2007 • 15+ Years of Pu
Slide 4: Company Overview
Company Overview OTCQB Symbol GCFB Share O/S – (Assuming P/S Fully Converted) 14.2 Million 52 Week Range $1.87 - 2.70 Concepts Granite City Food & Brewery Cadillac Ranch All-American Bar & Grill Store Count 28 6 Average Sales $3.8mm $3.9mm Avg. Check $13.80 $14.50 Key Elements Scratch Kitchen, Ameri
Slide 5: Value Creation for Investors
Value Creation for Investors Increase Restaurant EBITDA by $7 - $8 million, • Based on targeted prototype EBITDA margins of 19.5% • Assumes Average Unit Volumes of ~$5.2mm • Does not include same store sales growth Open 7-8 New Restaurants in 2013/2014 • 1 Opened (TN) • 2 Announced (IN/OH) • 2 In Fi
Slide 6: A Modern American Polished Casual restaurant brand
A “Modern American” Polished Casual restaurant brand positioned In the American Consumer’s sweet spot, with a value oriented menu. Where Food & Beer is More Than a Craft.
Slide 7: Made From Scratch Food
Made From Scratch Food > Committed to Made-from-Scratch, Freshly Prepared Cooking > Oversized Portions Give Great Value > Weekly Specials Provide Variety to Patrons > Large Menu Provides for Flexibility with Commodities
Slide 8: Proprietary Craft Beer
Proprietary Craft Beer Patented Brewing Process Allows Us to “Par Bake” Our Beer in a Central Location; • Favorable Economics: $75 per barrel to Produce vs. $110 for Miller/$200+ for Craft Beer • Offer Seven Flagship Brews and Multiple Specialty/Seasonal Beers • Beers Have a Gross Profit of 87% / 98
Slide 9: Differentiated Customer Value Proposition
Differentiated Customer Value Proposition
Slide 10: Granite City - The Best of Both Worlds
Granite City - The Best of Both Worlds Take a Great Concept: • Cravable Scratch Food • Great Service • Outstanding Dining Value AND Make it Best in Class: • Management • Private Equity (CIC Partners) • New Board • Branding • Prototype Building
Slide 11: Where We Came From - Base Units
Where We Came From - Base Units
Slide 12: Where We are Going
Where We are Going Troy, Michigan - Opened May, 2012
Slide 13: Franklin, Tennessee - Opened Feb, 2013
Frankline, Tennessee - Opened Feb, 2013
Slide 14: Host Stand / Entry
Host Stand / Entry
Slide 15: Bar
Bar
Slide 16: Dining Room
Dinning Room
Slide 17: Strong Portability - Room for Expansion
Strong Portability - Room for Expansion
Slide 18: Base Prototype
Base Prototype a) Source: SEC filings, yentatlons and Ri le rch Journal 18: (a) New Protorye: . Naverging $6.1 mig combined week 2012ets i Ngati
Slide 19: High Traffic Flows
High Traffic Flows
Slide 20: Shifting Food to Liquor Mix
Shifting Food to Liquor Mix Base Stores: 80%/20% New Prototype 71%/29%
Slide 21: Leading Same Store Sales
Leading Same Store Sales
Slide 22: ers
ers Seem, evens Grow» $130-140.0
Slide 23: Strong EBITDAR Margin Improvement
Strong EBITDAR Margin Improvement
Slide 24: Woe = crowing gsitos”
Woe = crowing gsitos” $859.5
Slide 25: Top of Class Unit Economics
(Top of Class Unit Economics) $5,200(3) $4,200 $4,000 $3,900 $5,000 Average Unit Volume Restaurant-Level EBITDA $1,014 $700 $701 $780 $975 $508 % Margin 19.5% 16.7% 17.5% 20.0% 19.5% 18.6% Average Cash Investment (7) $2,500 $2,000 $2,364 $2,775 $3,800 $2,000 Sales to Investment Ratio 2.1x 2.1x 1.7x
Slide 26: Trading At Discount
Trading At Discount Market Cap. $28 (1) $1,953 $929 $1,408 $535 Enterprise Value $44 $1,925 $896 $1,388 $534 EBITDA (2012A) $7 (2) $223 $84 $164 $22 2012 EBITDA Growth 131% 8% 5% 17% 46%
Slide 27: CIC Partners: Controlling Shareholder
CIC Partners: Controlling Shareholder CIC Sample Restaurant & Retail Investments MAIN STREET SPORTS GRILL LEGENDS All about the fens. RESTORATION HARDWARE ACFCAS H’EXPRESS(1) CIC Partners, a Dallas based private equity firm, is the controlling shareholder of CDP, which controls the Board of Granite
Slide 28: Summary
Smmary New Management and Leadership Reinvigorating a Strong Brand Scratch kitchen, craft beer, and Modern Decor -> “On Trend” ^Proven Portability Across Urban and Suburban Midwest Markets Wind at Our Back: Strong Same Store Sales & Expanding Margins New Prototype with Best-in-Class Unit Economics G
Slide 29: Granite City Food & Brewery
GRANITE CITY G food & brewery
Slide 30: Appendix
Appendix
Slide 31: Trailing Months Average EBITDA Per FTE
Trailing 12 Months Average EBITDA Per FTE
Slide 32: Non-GAAP Reconciliations Fiscal Year 2012
Non-GAAP Reconciliations F iscal Year 2012 Adjusted EBITDA Net loss ($4,105,481) Net interest expense Exit or disposal activities Depreciation and amortization Pre-opening Acquisition costs Termination/contract negotiation costs Share-based compensation Lease adjustment due to Capital Leases Adjuste
Slide 33: Capital Lease Effect on Balance Sheet and Income Statement
Capital Lease Effect on Balance Sheet and Income Statement Fiscal Year End 2013 Total Obligations Capital Leases Actual Bank Debt Balance $53.8 $35.0 $18.8 Related Interest $4.9 $3.7 $1.2 The Company Recognizes Most of its Leases as Capital Leases Due to the Long Term Nature of Lease
Granite City Food & Brewery — Investor Presentation (May 2013) on 6ix