Cosi, Inc. (NASDAQ: COSI) today reported a second quarter 2003 Net sales increase of 38.3% to $28.9 million compared to $20.9 million for second quarter 2002. Same store sales increased 5.4%.
Net losses attributable to common stockholders were $6.3 million or $(0.38) per basic and diluted share in the second quarter of 2003, compared to $5.6 million or $(1.23) per basic and diluted share for the second quarter of 2002.
Financial results for the second quarter of 2003 include $0.4 million in costs related to the grant of restricted stock to William D. Forrest, pursuant to his employment agreement as the Executive Chairman of the Company, and a provision for losses on asset impairment and store disposal costs of $2.8 million.
The company reiterated that it has filed with the SEC for a new rights offering to existing common stockholders. Cosi has warned stockholders that such a rights offering will dilute shareholder stakes across the board and will not be in the interests of shareholders but benefit the company long term.
The filing was announced earlier along with an intention to cancel and reissue certain executive stock options that were priced late last year based on an exercise price some five times higher than current trading prices. The reissuing of stock options at a price reflecting the precipitous drop in stock prices was said to be an effort to boost executive morale. Shareholders must approve both changes in stock offerings.