Kona Grill Inc. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2015; Provides Earnings Guidance for the Year 2016
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.