Click here to close now.




















Welcome!

Microsoft Cloud Authors: Glenn Rossman, Elizabeth White, Greg O'Connor, Wesley Coelho, Adine Deford

News Feed Item

Kona Grill Reports Fourth Quarter and Full Year 2012 Results

Q4 Income From Continuing Operations Up 18% to $884,000 or $0.10 per Share; 2012 Income From Continuing Operations Up 127% to $5.3 Million or $0.59 per Share; Company Initiates 2013 New Store Guidance of Two Restaurants

SCOTTSDALE, AZ -- (Marketwire) -- 02/19/13 -- Kona Grill, Inc. (NASDAQ: KONA), an American grill and sushi bar, reported results for its fourth quarter and full year ended December 31, 2012.

Fourth Quarter 2012 Highlights vs. Year-Ago Quarter

  • Same-store sales increased 10 basis points excluding the effect of the Chandler location remodel, lapping 7.8% same-store sales growth,

  • Income from continuing operations increased 18% to $884,000 or $0.10 per share, and

  • Signed a new restaurant lease in Boise, Idaho, which is expected to open in the fourth quarter of 2013.

Management Commentary
"Our continued focus on innovative menu offerings, guest service initiatives and prudent expense management helped drive yet another strong quarter of earnings," said Berke Bakay, president and CEO of Kona Grill. "Although we continued to face a challenging sales environment, the fourth quarter represented our ninth consecutive quarter of positive same-store sales.

"We have also achieved our second sequential year of profitability and record annual income from continuing operations, which was up 127% to $0.59 per share. This strong earnings improvement is attributed to our focus on building sales, while also being disciplined with our costs.

"We completed the remodel of our Chandler restaurant in November, and have received very favorable guest feedback. The remodel incorporated modern design elements, including a new lounge area, as well as a revamped bar and patio. Altogether, we expect the remodel to translate into increased guest activity.

"We continue to focus on our growth strategy and are diligently evaluating several prospective locations, including multiple sites in the state of Texas. We currently expect to open two new restaurants in 2013."

Fourth Quarter 2012 Financial Results
Restaurant sales in the fourth quarter of 2012 were $23.0 million compared to $23.1 million in the fourth quarter of 2011. Excluding the effect of the Chandler, Arizona store remodel, same-store sales increased 10 basis points, with higher average guest check partially offsetting a slight decline in guest traffic. The 10 basis point increase laps a 7.8% increase in the fourth quarter of 2011. The company estimates same-store sales for the fourth quarter would have increased approximately 100 basis points excluding the impact of inclement weather, including Hurricane Sandy.

Income from continuing operations in the fourth quarter of 2012 increased 18.3% to $884,000 or $0.10 per share, compared to $747,000 or $0.08 per share in the year-ago quarter. Net income in the fourth quarter of 2012 increased 13.9% to $851,000 or $0.10 per share, compared to net income of $747,000 or $0.08 per share in the year-ago quarter.

During the fourth quarter, the company repurchased 76,000 shares at an average cost of $8.43 per share under a $5.0 million stock repurchase program that was initiated in May 2012. In total, the company has repurchased 363,000 shares for $3.0 million under the current program.

At December 31, 2012, cash and cash equivalents totaled $8.0 million compared to $6.3 million at December 31, 2011. Total debt was $0.4 million at December 31, 2012, compared to $0.1 million at December 31, 2011. The company has not drawn on its $6.5 million credit line.

Full Year 2012 Financial Results
Restaurant sales in 2012 increased 2.5% to $96.0 million compared to $93.7 million in 2011. Same-store sales increased 2.7% primarily due to a 2.5% increase in guest traffic, which laps an 8.8% same-store sales increase in 2011.

Income from continuing operations in 2012 increased 127% to $5.3 million or $0.59 per share, compared to $2.3 million or $0.24 per share in 2011. Net income for 2012 increased 136% to $4.8 million or $0.54 per share, compared to net income of $2.0 million or $0.21 per share in 2011.

Financial Guidance
For the first quarter of 2013, the company expects restaurant sales of $23.9 million, compared to $24.2 million in the same year-ago quarter and flat same-store sales, excluding the extra day due to leap year in 2012. The company also expects net income of $0.9 million or $0.11 per share.

Conference Call
The company will host a conference call to discuss these results today at 5:00 p.m. Eastern time.

Dial toll-free: 1-877-941-1427
Toll/international: 1-480-629-9664
Conference ID #: 4590945

The conference call will be broadcast simultaneously and available for replay via the Investors section of the company's website at www.konagrill.com.

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Liolios Group at 1-949-574-3860.

A replay of the call will be available after 8:00 p.m. Eastern time on the same day through Tuesday, March 19, 2013.

Toll-free replay number: 1-877-870-5176
Toll/International replay number: 1-858-384-5517
Replay #: 4568022

About Kona Grill
Kona Grill (NASDAQ: KONA) 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 16 states: Arizona (Chandler, Gilbert, Phoenix, Scottsdale); Colorado (Denver); Connecticut (Stamford); Florida (Tampa); Illinois (Lincolnshire, Oak Brook); Indiana (Carmel); Louisiana (Baton Rouge); Maryland (Baltimore); Michigan (Troy); Minnesota (Eden Prairie); Missouri (Kansas City); Nebraska (Omaha); New Jersey (Woodbridge); Nevada (Las Vegas); Texas (Austin, Dallas, Houston, San Antonio); Virginia (Richmond). For more information, visit www.konagrill.com.

Forward-Looking Statements
Various remarks we make about future expectations, plans, and prospects for the company constitute forward-looking statements for purposes of the Safe Harbor provisions under the Private Securities Litigation Reform Act of 1995. 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. These statements relate to our future financial performance and growth goals for 2013, including but not limited to those relating to our sales trends and projected earnings for the first quarter of 2013 and expectations of new store openings in 2013. 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.


                              KONA GRILL, INC.
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                               (in thousands)

                                                 December 31,   December 31,
                                                     2012           2011
                                                -------------  -------------
                                                 (Unaudited)

ASSETS
  Current assets                                $       9,586  $       7,709
  Other assets                                            812            694
  Property and equipment, net                          28,927         32,944
                                                -------------  -------------
  Total assets                                  $      39,325  $      41,347
                                                =============  =============

LIABILITIES AND STOCKHOLDERS' EQUITY
  Current liabilities                           $       8,556  $      10,089
  Long-term obligations                                11,901         13,574
  Stockholders' equity                                 18,868         17,684
                                                -------------  -------------
  Total liabilities and stockholders' equity    $      39,325  $      41,347
                                                =============  =============



                              KONA GRILL, INC.
         CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
                   (in thousands, except per share data)

                            Three Months Ended            Year Ended
                               December 31,              December 31,
                         ------------------------  ------------------------
                             2012         2011         2012         2011
                         -----------  -----------  -----------  -----------
                                (Unaudited)        (Unaudited)

Restaurant sales         $    22,987  $    23,065  $    96,021  $    93,657
Costs and expenses:
  Cost of sales                6,397        6,242       26,246       25,579
  Labor                        7,769        7,531       31,968       30,896
  Occupancy                    1,603        1,448        6,253        6,573
  Restaurant operating
   expenses                    3,286        3,435       13,534       13,977
  General and
   administrative              1,671        2,248        7,037        8,395
  Depreciation and
   amortization                1,439        1,436        5,749        5,856
  Insurance recoveries
   and other                     (19)           -         (120)           -
                         -----------  -----------  -----------  -----------
Total costs and expenses      22,146       22,340       90,667       91,276
                         -----------  -----------  -----------  -----------
Income from operations           841          725        5,354        2,381
Nonoperating income
 (expense):
  Interest income and
   other, net                      1            1            1            3
  Interest expense               (42)         (14)         (67)         (61)
                         -----------  -----------  -----------  -----------
Income from continuing
 operations before
 provision for income
 taxes                           800          712        5,288        2,323
Provision for income
 taxes                           (84)         (35)          36            9
                         -----------  -----------  -----------  -----------
Income from continuing
 operations                      884          747        5,252        2,314
Loss from discontinued
 operations, net of tax          (33)           -         (466)        (288)
                         -----------  -----------  -----------  -----------
Net income               $       851  $       747  $     4,786  $     2,026
                         ===========  ===========  ===========  ===========

Net income per share -
 Basic
  Income from continuing
   operations            $      0.10  $      0.08  $      0.60  $      0.25
  Loss from discontinued
   operations, net of
   tax                             -            -        (0.05)       (0.03)
                         -----------  -----------  -----------  -----------
  Net income             $      0.10  $      0.08  $      0.55  $      0.22
                         ===========  ===========  ===========  ===========

Net income per share -
 Diluted
  Income from continuing
   operations            $      0.10  $      0.08  $      0.59  $      0.24
  Loss from discontinued
   operations, net of
   tax                             -            -        (0.05)       (0.03)
                         -----------  -----------  -----------  -----------
  Net income             $      0.10  $      0.08  $      0.54  $      0.21
                         ===========  ===========  ===========  ===========

Weighted average shares
 outstanding:
  Basic                        8,579        9,294        8,726        9,242
                         ===========  ===========  ===========  ===========
  Diluted                      8,686        9,445        8,868        9,428
                         ===========  ===========  ===========  ===========

Comprehensive income     $       851  $       747  $     4,786  $     2,026
                         ===========  ===========  ===========  ===========




  Reconciliation of Restaurant Operating Profit to Income from Operations

The Company defines restaurant operating profit to be restaurant sales
minus cost of sales, labor, occupancy, and restaurant operating expenses.
Restaurant operating profit does not include general and administrative
expenses, insurance recoveries and other and depreciation and amortization.
The Company believes restaurant operating profit is an important component
of financial results because it is a widely used metric within the
restaurant industry to evaluate restaurant-level productivity, efficiency,
and performance. The Company uses restaurant operating profit as a key
metric to evaluate its restaurants' financial performance compared with its
competitors. Restaurant operating profit is not a financial measurement
determined in accordance with generally accepted accounting principles
("GAAP") and should not be considered in isolation or as an alternative to
income from operations. Restaurant operating profit may not be comparable
to the same or similarly titled measures computed by other companies. The
table below sets forth the Company's calculation of restaurant operating
profit and a reconciliation to income from operations, the most comparable
GAAP measure (in thousands).

                            Three Months Ended            Year Ended
                               December 31,              December 31,
                         ------------------------  ------------------------
                             2012         2011         2012         2011
                         -----------  -----------  -----------  -----------

Restaurant sales         $    22,987  $    23,065  $    96,021  $    93,657
Costs and expenses:
  Cost of sales                6,397        6,242       26,246       25,579
  Labor                        7,769        7,531       31,968       30,896
  Occupancy                    1,603        1,448        6,253        6,573
  Restaurant operating
   expenses                    3,286        3,435       13,534       13,977
                         -----------  -----------  -----------  -----------
Restaurant operating
 profit                        3,932        4,409       18,020       16,632
                         -----------  -----------  -----------  -----------
Deduct - other costs and
 expenses:
  General and
   administrative              1,671        2,248        7,037        8,395
  Depreciation and
   amortization                1,439        1,436        5,749        5,856
  Insurance recoveries
   and other                     (19)           -         (120)           -
                         -----------  -----------  -----------  -----------
Income from operations   $       841  $       725  $     5,354  $     2,381
                         ===========  ===========  ===========  ===========


                               Percentage of             Percentage of
                             Restaurant Sales          Restaurant Sales
                         ------------------------  ------------------------
                            Three Months Ended            Year Ended
                               December 31,              December 31,
                         ------------------------  ------------------------
                             2012         2011         2012         2011
                         -----------  -----------  -----------  -----------

Restaurant sales               100.0%       100.0%       100.0%       100.0%
Costs and expenses:
  Cost of sales                 27.8         27.1         27.3         27.3
  Labor                         33.8         32.7         33.3         33.0
  Occupancy                      7.0          6.3          6.5          7.0
  Restaurant operating
   expenses                     14.3         14.9         14.1         14.9
                         -----------  -----------  -----------  -----------
Restaurant operating
 profit                         17.1         19.1         18.8         17.8
                         -----------  -----------  -----------  -----------
Deduct - other costs and
 expenses:
  General and
   administrative                7.3          9.7          7.3          9.0
  Depreciation and
   amortization                  6.3          6.2          6.0          6.3
  Insurance recoveries
   and other                    (0.1)           -         (0.1)           -
                         -----------  -----------  -----------  -----------
Income from operations           3.7%         3.1%         5.6%         2.5%
                         ===========  ===========  ===========  ===========

Certain amounts do not
 sum to total due to
 rounding

Add to Digg Bookmark with del.icio.us Add to Newsvine

Kona Grill Investor Relations Contact:
Liolios Group, Inc.
Cody Slach
Tel 1-949-574-3860
Email Contact

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
Manufacturing connected IoT versions of traditional products requires more than multiple deep technology skills. It also requires a shift in mindset, to realize that connected, sensor-enabled “things” act more like services than what we usually think of as products. In his session at @ThingsExpo, David Friedman, CEO and co-founder of Ayla Networks, will discuss how when sensors start generating detailed real-world data about products and how they’re being used, smart manufacturers can use the data to create additional revenue streams, such as improved warranties or premium features. Or slash...
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo, November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be.
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies leverage disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advanced analytics, and DevOps to advance innovation and increase agility. Specializing in designing, imple...
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome,” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
With the proliferation of connected devices underpinning new Internet of Things systems, Brandon Schulz, Director of Luxoft IoT – Retail, will be looking at the transformation of the retail customer experience in brick and mortar stores in his session at @ThingsExpo. Questions he will address include: Will beacons drop to the wayside like QR codes, or be a proximity-based profit driver? How will the customer experience change in stores of all types when everything can be instrumented and analyzed? As an area of investment, how might a retail company move towards an innovation methodolo...
Contrary to mainstream media attention, the multiple possibilities of how consumer IoT will transform our everyday lives aren’t the only angle of this headline-gaining trend. There’s a huge opportunity for “industrial IoT” and “Smart Cities” to impact the world in the same capacity – especially during critical situations. For example, a community water dam that needs to release water can leverage embedded critical communications logic to alert the appropriate individuals, on the right device, as soon as they are needed to take action.
WebRTC services have already permeated corporate communications in the form of videoconferencing solutions. However, WebRTC has the potential of going beyond and catalyzing a new class of services providing more than calls with capabilities such as mass-scale real-time media broadcasting, enriched and augmented video, person-to-machine and machine-to-machine communications. In his session at @ThingsExpo, Luis Lopez, CEO of Kurento, will introduce the technologies required for implementing these ideas and some early experiments performed in the Kurento open source software community in areas ...
While many app developers are comfortable building apps for the smartphone, there is a whole new world out there. In his session at @ThingsExpo, Narayan Sainaney, Co-founder and CTO of Mojio, will discuss how the business case for connected car apps is growing and, with open platform companies having already done the heavy lifting, there really is no barrier to entry.
As more intelligent IoT applications shift into gear, they’re merging into the ever-increasing traffic flow of the Internet. It won’t be long before we experience bottlenecks, as IoT traffic peaks during rush hours. Organizations that are unprepared will find themselves by the side of the road unable to cross back into the fast lane. As billions of new devices begin to communicate and exchange data – will your infrastructure be scalable enough to handle this new interconnected world?
The Internet of Things is in the early stages of mainstream deployment but it promises to unlock value and rapidly transform how organizations manage, operationalize, and monetize their assets. IoT is a complex structure of hardware, sensors, applications, analytics and devices that need to be able to communicate geographically and across all functions. Once the data is collected from numerous endpoints, the challenge then becomes converting it into actionable insight.
With the Apple Watch making its way onto wrists all over the world, it’s only a matter of time before it becomes a staple in the workplace. In fact, Forrester reported that 68 percent of technology and business decision-makers characterize wearables as a top priority for 2015. Recognizing their business value early on, FinancialForce.com was the first to bring ERP to wearables, helping streamline communication across front and back office functions. In his session at @ThingsExpo, Kevin Roberts, GM of Platform at FinancialForce.com, will discuss the value of business applications on wearable ...
SYS-CON Events announced today that IceWarp will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. IceWarp, the leader of cloud and on-premise messaging, delivers secured email, chat, documents, conferencing and collaboration to today's mobile workforce, all in one unified interface
SYS-CON Events announced today that Micron Technology, Inc., a global leader in advanced semiconductor systems, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Micron’s broad portfolio of high-performance memory technologies – including DRAM, NAND and NOR Flash – is the basis for solid state drives, modules, multichip packages and other system solutions. Backed by more than 35 years of technology leadership, Micron's memory solutions enable the world's most innovative computing, consumer,...
As more and more data is generated from a variety of connected devices, the need to get insights from this data and predict future behavior and trends is increasingly essential for businesses. Real-time stream processing is needed in a variety of different industries such as Manufacturing, Oil and Gas, Automobile, Finance, Online Retail, Smart Grids, and Healthcare. Azure Stream Analytics is a fully managed distributed stream computation service that provides low latency, scalable processing of streaming data in the cloud with an enterprise grade SLA. It features built-in integration with Azur...
SYS-CON Events announced today the Containers & Microservices Bootcamp, being held November 3-4, 2015, in conjunction with 17th Cloud Expo, @ThingsExpo, and @DevOpsSummit at the Santa Clara Convention Center in Santa Clara, CA. This is your chance to get started with the latest technology in the industry. Combined with real-world scenarios and use cases, the Containers and Microservices Bootcamp, led by Janakiram MSV, a Microsoft Regional Director, will include presentations as well as hands-on demos and comprehensive walkthroughs.
17th Cloud Expo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterprises are using some form of XaaS – software, platform, and infrastructure as a service.
SYS-CON Events announced today that the "Second Containers & Microservices Expo" will take place November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities.
Akana has announced the availability of the new Akana Healthcare Solution. The API-driven solution helps healthcare organizations accelerate their transition to being secure, digitally interoperable businesses. It leverages the Health Level Seven International Fast Healthcare Interoperability Resources (HL7 FHIR) standard to enable broader business use of medical data. Akana developed the Healthcare Solution in response to healthcare businesses that want to increase electronic, multi-device access to health records while reducing operating costs and complying with government regulations.
Containers are not new, but renewed commitments to performance, flexibility, and agility have propelled them to the top of the agenda today. By working without the need for virtualization and its overhead, containers are seen as the perfect way to deploy apps and services across multiple clouds. Containers can handle anything from file types to operating systems and services, including microservices. What are microservices? Unlike what the name implies, microservices are not necessarily small, but are focused on specific tasks. The ability for developers to deploy multiple containers – thous...