Welcome!

.NET Authors: Pat Romanski, Elizabeth White, ChandraShekar Dattatreya, Trevor Parsons, Peter Silva

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
Cultural, regulatory, environmental, political and economic (CREPE) conditions over the past decade are creating cross-industry solution spaces that require processes and technologies from both the Internet of Things (IoT), and Data Management and Analytics (DMA). These solution spaces are evolving into Sensor Analytics Ecosystems (SAE) that represent significant new opportunities for organizations of all types. Public Utilities throughout the world, providing electricity, natural gas and water, are pursuing SmartGrid initiatives that represent one of the more mature examples of SAE. We have s...
The security devil is always in the details of the attack: the ones you've endured, the ones you prepare yourself to fend off, and the ones that, you fear, will catch you completely unaware and defenseless. The Internet of Things (IoT) is nothing if not an endless proliferation of details. It's the vision of a world in which continuous Internet connectivity and addressability is embedded into a growing range of human artifacts, into the natural world, and even into our smartphones, appliances, and physical persons. In the IoT vision, every new "thing" - sensor, actuator, data source, data con...
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, discussed single-value, geo-spatial, and log time series data. By focusing on enterprise applications and the data center, he will use OpenTSDB as an example t...
How do APIs and IoT relate? The answer is not as simple as merely adding an API on top of a dumb device, but rather about understanding the architectural patterns for implementing an IoT fabric. There are typically two or three trends: Exposing the device to a management framework Exposing that management framework to a business centric logic Exposing that business layer and data to end users. This last trend is the IoT stack, which involves a new shift in the separation of what stuff happens, where data lives and where the interface lies. For instance, it's a mix of architectural styles ...
An entirely new security model is needed for the Internet of Things, or is it? Can we save some old and tested controls for this new and different environment? In his session at @ThingsExpo, New York's at the Javits Center, Davi Ottenheimer, EMC Senior Director of Trust, reviewed hands-on lessons with IoT devices and reveal a new risk balance you might not expect. Davi Ottenheimer, EMC Senior Director of Trust, has more than nineteen years' experience managing global security operations and assessments, including a decade of leading incident response and digital forensics. He is co-author of t...
The Internet of Things will greatly expand the opportunities for data collection and new business models driven off of that data. In her session at @ThingsExpo, Esmeralda Swartz, CMO of MetraTech, discussed how for this to be effective you not only need to have infrastructure and operational models capable of utilizing this new phenomenon, but increasingly service providers will need to convince a skeptical public to participate. Get ready to show them the money!
The Internet of Things will put IT to its ultimate test by creating infinite new opportunities to digitize products and services, generate and analyze new data to improve customer satisfaction, and discover new ways to gain a competitive advantage across nearly every industry. In order to help corporate business units to capitalize on the rapidly evolving IoT opportunities, IT must stand up to a new set of challenges. In his session at @ThingsExpo, Jeff Kaplan, Managing Director of THINKstrategies, will examine why IT must finally fulfill its role in support of its SBUs or face a new round of...
One of the biggest challenges when developing connected devices is identifying user value and delivering it through successful user experiences. In his session at Internet of @ThingsExpo, Mike Kuniavsky, Principal Scientist, Innovation Services at PARC, described an IoT-specific approach to user experience design that combines approaches from interaction design, industrial design and service design to create experiences that go beyond simple connected gadgets to create lasting, multi-device experiences grounded in people's real needs and desires.
Enthusiasm for the Internet of Things has reached an all-time high. In 2013 alone, venture capitalists spent more than $1 billion dollars investing in the IoT space. With "smart" appliances and devices, IoT covers wearable smart devices, cloud services to hardware companies. Nest, a Google company, detects temperatures inside homes and automatically adjusts it by tracking its user's habit. These technologies are quickly developing and with it come challenges such as bridging infrastructure gaps, abiding by privacy concerns and making the concept a reality. These challenges can't be addressed w...
The Domain Name Service (DNS) is one of the most important components in networking infrastructure, enabling users and services to access applications by translating URLs (names) into IP addresses (numbers). Because every icon and URL and all embedded content on a website requires a DNS lookup loading complex sites necessitates hundreds of DNS queries. In addition, as more internet-enabled ‘Things' get connected, people will rely on DNS to name and find their fridges, toasters and toilets. According to a recent IDG Research Services Survey this rate of traffic will only grow. What's driving t...
Scott Jenson leads a project called The Physical Web within the Chrome team at Google. Project members are working to take the scalability and openness of the web and use it to talk to the exponentially exploding range of smart devices. Nearly every company today working on the IoT comes up with the same basic solution: use my server and you'll be fine. But if we really believe there will be trillions of these devices, that just can't scale. We need a system that is open a scalable and by using the URL as a basic building block, we open this up and get the same resilience that the web enjoys.
Connected devices and the Internet of Things are getting significant momentum in 2014. In his session at Internet of @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, examined three key elements that together will drive mass adoption of the IoT before the end of 2015. The first element is the recent advent of robust open source protocols (like AllJoyn and WebRTC) that facilitate M2M communication. The second is broad availability of flexible, cost-effective storage designed to handle the massive surge in back-end data in a world where timely analytics is e...
We are reaching the end of the beginning with WebRTC, and real systems using this technology have begun to appear. One challenge that faces every WebRTC deployment (in some form or another) is identity management. For example, if you have an existing service – possibly built on a variety of different PaaS/SaaS offerings – and you want to add real-time communications you are faced with a challenge relating to user management, authentication, authorization, and validation. Service providers will want to use their existing identities, but these will have credentials already that are (hopefully) i...
"Matrix is an ambitious open standard and implementation that's set up to break down the fragmentation problems that exist in IP messaging and VoIP communication," explained John Woolf, Technical Evangelist at Matrix, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
P2P RTC will impact the landscape of communications, shifting from traditional telephony style communications models to OTT (Over-The-Top) cloud assisted & PaaS (Platform as a Service) communication services. The P2P shift will impact many areas of our lives, from mobile communication, human interactive web services, RTC and telephony infrastructure, user federation, security and privacy implications, business costs, and scalability. In his session at @ThingsExpo, Robin Raymond, Chief Architect at Hookflash, will walk through the shifting landscape of traditional telephone and voice services ...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at Internet of @ThingsExpo, James Kirkland, Chief Architect for the Internet of Things and Intelligent Systems at Red Hat, described how to revolutioniz...
Bit6 today issued a challenge to the technology community implementing Web Real Time Communication (WebRTC). To leap beyond WebRTC’s significant limitations and fully leverage its underlying value to accelerate innovation, application developers need to consider the entire communications ecosystem.
The definition of IoT is not new, in fact it’s been around for over a decade. What has changed is the public's awareness that the technology we use on a daily basis has caught up on the vision of an always on, always connected world. If you look into the details of what comprises the IoT, you’ll see that it includes everything from cloud computing, Big Data analytics, “Things,” Web communication, applications, network, storage, etc. It is essentially including everything connected online from hardware to software, or as we like to say, it’s an Internet of many different things. The difference ...
Cloud Expo 2014 TV commercials will feature @ThingsExpo, which was launched in June, 2014 at New York City's Javits Center as the largest 'Internet of Things' event in the world.