Kona Grill, an American grill and sushi bar, reported results for its second quarter ended June 30, 2011.
Second Quarter 2011 Highlights Include:
- Restaurant sales increased 13.6% to $25.8 million
- Same-store sales increased 9.1%
- Restaurant operating profit margin increased 90 basis points to 17.2%
- Net income increased 199% to $0.8 million or $0.08 per share
- Net income excluding severance charges of $1.0 million or $0.11 per share
“Top-line results exceeded the high end of our sales guidance for the quarter, driven by a 9.1% increase in same-store sales,” said Michael Nahkunst, interim president and CEO of Kona Grill. “Our restaurants did a fantastic job driving additional sales through recent marketing and menu improvement initiatives, while also leveraging these sales to improve our restaurant operating margins. The strong earnings during the quarter firmly support our forecast of achieving profitability for 2011.”
Second Quarter 2011 Financial Results
Restaurant sales increased 13.6% to $25.8 million from $22.7 million in the same year-ago quarter. The sales improvement reflects a 9.1% increase in same-store sales driven by strong traffic, higher average guest check and approximately 2.2% in menu pricing, as well as additional revenue from the Kona Grill in Baltimore, Maryland that opened during the fourth quarter of 2010. The 9.1% increase in same-store sales compares to a 7.6% increase in the prior quarter and a 0.3% decrease in the second quarter of 2010.
Average weekly sales for the 23 restaurants in the comparable base were $80,140 in the second quarter of 2011, compared to $73,450 in the same year-ago quarter. Average weekly sales for restaurants not in the comparable base increased 16.6% to $68,550 in the second quarter of 2011 versus $58,800 last year.
Net income for the second quarter of 2011 was $0.8 million or $0.08 per share, an improvement from net income of $0.3 million or $0.03 per share in the same year-ago quarter. Excluding severance and other charges related to the departure of the company’s former CEO, net income for the second quarter of 2011 was $1.0 million or $0.11 per share. This compares to net income of $0.4 million or $0.05 per share in the same year-ago quarter, excluding legal and professional fees associated with a contested proxy solicitation (see “Reconciliation of Net Income or Loss Excluding Special Charges,” below).
Financial Guidance
For the third quarter of 2011, the company forecasts restaurant sales of $23.1 million to $24.1 million, and net income of $0.1 million to $0.3 million, or $0.01 to $0.03 per share.
Kona Grill features American favorites with an international influence and award-winning sushi in a casually elegant atmosphere. Kona Grill owns and operates 25 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, West Palm Beach); 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, Sugar Land); Virginia (Richmond).