Revenue Up, Same-Store Sales Down at Kona Grill
Kona Grill, Inc., an American grill and sushi bar, today reported results for its third quarter ended September 30, 2009.
-- Chain Leader, 10/28/2009 8:48:00 AM
Kona Grill Reports Third Quarter Results
SCOTTSDALE, Ariz., Oct. 27, 2009 (GLOBE NEWSWIRE) -- Kona Grill, Inc. (Nasdaq:KONA), an American grill and sushi bar, today reported results for its third quarter ended September 30, 2009.
Third Quarter 2009 Highlights Include:
* Opened Eden Prairie, Minnesota restaurant
* Restaurant sales increased 3.7% to $20.2 million
* Same-store sales decreased 9.9%
* Restaurant operating profit margin of 14.1%
"Our third quarter results reflect today's challenging consumer environment. While our industry continues to go through one of the toughest times in recent memory, we are committed to operating our restaurants while remaining focused on our long term goals. We continue to make progress on several operational initiatives and remain focused on driving guest traffic and providing a memorable guest experience. We are focused on those items we can control, and we expect these efforts will ultimately materialize into top and bottom line results as the economy improves," said Mark L. Bartholomay, Interim Chief Executive Officer of Kona Grill.
Third Quarter 2009 Financial Results
Restaurant sales increased 3.7% to $20.2 million from $19.5 million during the same quarter last year. The increase in restaurant sales during the third quarter of 2009 reflects additional revenue from five stores opened since November 2008. Same-store sales decreased 9.9% in the third quarter of 2009 from the third quarter of the prior year.
Average weekly sales for the 17 restaurants in the comparable base were $74,934 during the third quarter of 2009, compared to $83,212 in the prior year period. Average weekly sales for restaurants not in the comparable base that were open for the entire third quarter of 2009 were $56,138 versus $78,933 last year.
Net loss was ($1.0) million, or ($0.11) per diluted share, during the third quarter compared to a net loss of ($3.9) million, or ($0.49) per diluted share, for the same period last year. Net loss for the prior-year quarter included a ($3.2) million or ($0.40) per diluted share charge for discontinued operations associated with the closing of one restaurant location.
Financial Guidance
For the fourth quarter of 2009, the Company forecasts restaurant sales of $20 million to $21 million and a net loss of ($1.0) million to ($1.5) million, or ($0.11) to ($0.16) per diluted share.
The Company's available cash and cash flow from operations will enable it to complete construction of the Tampa, FL restaurant, expected to open in mid-November, and the Baltimore, MD restaurant, which is scheduled to open in 2010. The Company will only sign additional leases based upon significant economic opportunity and the availability of affordable debt capital or sufficient cash flow from operations.
Conference Call
The Company will host a conference call to discuss third quarter 2009 financial results today at 5:00 PM ET. The call will be webcast live from the Company's website at www.konagrill.com under the investor relations section. Listeners may also access the call by dialing 1-877-879-6243 or 1-913-312-1234 for international callers. A replay of the call will be available until Tuesday, November 3, 2009, by dialing 1-888-203-1112 or 1-719-457-0820 for international callers; the password is 9514341.
About Kona Grill
Kona Grill features American favorites with an international influence and award winning sushi in a casually elegant atmosphere. Kona Grill owns and operates 23 restaurants, guided by a passion for quality food and personal service. Restaurants are currently located in 15 states: Arizona (Chandler, Gilbert, Phoenix, Scottsdale); Colorado (Denver); Connecticut (Stamford); Florida (West Palm Beach); Illinois (Lincolnshire, Oak Brook); Indiana (Carmel); Louisiana (Baton Rouge); Michigan (Troy); Minnesota (Eden Prairie); Missouri (Kansas City); Nebraska (Omaha); New Jersey (Woodbridge); Nevada (Las Vegas); Texas (Austin, Dallas, Houston, Sugar Land, San Antonio); Virginia (Richmond). For more information, visit www.konagrill.com.
Forward-Looking Statements
The financial guidance we provide for our fourth quarter 2009 results, statements about our beliefs regarding profits and stockholder value, and certain other statements contained in this press release are forward-looking. Forward-looking statements include statements regarding our expectations, beliefs, intentions, plans, objectives, goals, strategies, future events, or performance and underlying assumptions and other statements that are not purely historical. We have attempted to identify these statements by using forward-looking terminology such as "may," "will," "anticipates," "expects," "believes," "intends," "should," or comparable terms. All forward-looking statements included in this press release are based on information available to us on the date of this release and we assume no obligation to update these forward-looking statements for any reason. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those described in the statements. Investors are referred to the full discussion of risks and uncertainties associated with forward-looking statements and the discussion of risk factors contained in the Company's filings with the Securities and Exchange Commission.
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