Kona Grill, Inc. Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2017; Revises Earnings Guidance for the Year 2017
For the six months, the company reported restaurants sales was $92,202,000 against $82,573,000 reported last year. Loss from operations was $6,464,000 against $2,316,000 reported last year. Loss before income taxes was $7,650,000 against $2,441,000 reported last year. Net loss was $7,700,000 or $0.76 per basic and diluted share against $2,491,000 or $0.22 per basic and diluted share reported last year. EBITDA was $359,000 against $4,185,000 reported last year. Adjusted EBITDA was $2,215,000 against $4,185,000 reported last year. Restaurant operating profit was $9,728,000 against $13,051,000 reported last year.
For the year 2017, in light of the current environment, the company is revising its forecast to restaurant sales of $184 million and Adjusted EBITDA of $5.5 million. With the reduction in sales, the company is revising its EBITDA forecast from $8.5 million to $5.5 million. The latter excludes the aforementioned lease termination costs and asset write-offs. The company has narrowed its capital expenditures, net of tenant allowances to range from $7 million to $9 million, which is primarily related to restaurant development, maintenance capital expenditures and technology initiatives. Capital expenditures for 2017 net of tenant allowances are projected to range from $7 million to $9 million. The majority of its 2017 CapEx spend has been incurred during the first half of the year with 1 new restaurant opening and residual payments on restaurants opening during the second half of 2016.