Welcome!

Microsoft Cloud Authors: Janakiram MSV, Pat Romanski, Steven Mandel, John Basso, Liz McMillan

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
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at EMC, will introduce a methodology for capturing, enriching and sharing data (and analytics) across the organizati...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
SYS-CON Events announced today Telecom Reseller has been named “Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
SYS-CON Events announced today that Adobe has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. Adobe is changing the world though digital experiences. Adobe helps customers develop and deliver high-impact experiences that differentiate brands, build loyalty, and drive revenue across every screen, including smartphones, computers, tablets and TVs. Adobe content solutions are used daily by millions of co...
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
Pulzze Systems was happy to participate in such a premier event and thankful to be receiving the winning investment and global network support from G-Startup Worldwide. It is an exciting time for Pulzze to showcase the effectiveness of innovative technologies and enable them to make the world smarter and better. The reputable contest is held to identify promising startups around the globe that are assured to change the world through their innovative products and disruptive technologies. There w...
SYS-CON Events announced today that Pulzze Systems will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Pulzze Systems, Inc. provides infrastructure products for the Internet of Things to enable any connected device and system to carry out matched operations without programming. For more information, visit http://www.pulzzesystems.com.
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
19th Cloud Expo, taking place November 1-3, 2016, 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 enterpri...
Almost two-thirds of companies either have or soon will have IoT as the backbone of their business in 2016. However, IoT is far more complex than most firms expected. How can you not get trapped in the pitfalls? In his session at @ThingsExpo, Tony Shan, a renowned visionary and thought leader, will introduce a holistic method of IoTification, which is the process of IoTifying the existing technology and business models to adopt and leverage IoT. He will drill down to the components in this fra...
With so much going on in this space you could be forgiven for thinking you were always working with yesterday’s technologies. So much change, so quickly. What do you do if you have to build a solution from the ground up that is expected to live in the field for at least 5-10 years? This is the challenge we faced when we looked to refresh our existing 10-year-old custom hardware stack to measure the fullness of trash cans and compactors.
The emerging Internet of Everything creates tremendous new opportunities for customer engagement and business model innovation. However, enterprises must overcome a number of critical challenges to bring these new solutions to market. In his session at @ThingsExpo, Michael Martin, CTO/CIO at nfrastructure, outlined these key challenges and recommended approaches for overcoming them to achieve speed and agility in the design, development and implementation of Internet of Everything solutions wi...
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...