Kona Grill Inc. reported unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2015. For the quarter, the company reported restaurant sales of USD 38.066 million compared to USD 31.558 million a year ago. Loss from operations was USD 1.953 million compared to USD 0.841 million a year ago. Loss before income tax was USD 1.999 million compared to USD 0.916 million a year ago. Net loss was USD 2.011 million or USD 0.18 per basic and diluted share compared to USD 0.916 million or USD 0.08 per basic and diluted share a year ago. Adjusted EBITDA was USD 2.856 million compared to USD 2.393 million a year ago. The increase in revenue was driven by operating week growth of 21.2% and a same-store sales increase of 3.2%. The increase in same-store sales reflects higher average check per customer and was partially offset by a slight reduction in traffic. Same-store sales increased 3.1% in the year-ago quarter. Included in the fourth quarter of 2015 net loss was USD 0.13 per share in preopening costs primarily for four restaurants opened during the quarter.

For the year, the company reported restaurant sales of USD 142.023 million compared to USD 119.097 million a year ago. The increase was driven by operating week growth of 19.4% and a same-store sales increase of 2.0%. Same-store sales increased 3.8% in 2014. Loss from operations was USD 4.273 million compared to income of USD 0.962 million a year ago. Net loss was USD 4.496 million or USD 0.40 per basic and diluted share compared to income of USD 0.703 million or USD 0.07 per diluted share a year ago. Loss before income tax was USD 4.453 million compared to income of USD 0.703 million a year ago. Adjusted EBITDA was USD 11.963 million compared to USD 11.519 million a year ago. The company generated USD 10.2 million in cash flow from operating activities. The company spent USD 38.1 million on capital expenditures primarily for the 7 restaurants opened during the year, the Denver and Las Vegas remodels and 4 restaurants scheduled to open during the first half of 2016 as well as maintenance CapEx. This figure excludes any tenant allowances received during the year. Net loss primarily driven by preopening costs and operating inefficiencies associated with new restaurant openings and the negative impact of costs associated with the remodel of the Denver and Las Vegas locations.

For 2016, the company anticipates restaurant sales of USD 179 million compared to USD 143 million in 2015, representing 25% year-over-year growth. The increase in restaurant sales will be driven by operating week growth along with an estimated 2.0% same-store sales growth. The company forecasts adjusted EBITDA of USD 15 million, representing 25% year-over-year growth. The company projects capital expenditures, net of tenant allowances to range from USD 33 million to USD 35 million, primarily related to new restaurant development and remodeling initiatives.