Kona Grill, Inc. reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2017. For the quarter, the company reported restaurants sales was $46,977,000 against $43,296,000 reported last year, driven by 18.6% growth in the restaurant operating weeks from 8 restaurants opened since June 2016, partially offset by a 5.3% decline in same-store sales. Loss from operations was $3,422,000 against $738,000 reported last year. Loss before income taxes was $4,302,000 against $810,000 reported last year. Net loss was $4,327,000 or $0.43 per basic and diluted share against $835,000 or $0.08 per basic and diluted share reported last year. LBITDA was $257,000 against EBITDA of $2,642,000 reported last year. Adjusted EBITDA was $1,599,000 against $2,642,000 reported last year. Restaurant sales increased 8.5%, the increase was primarily driven by operating week growth from eight restaurants opened since June 2016. Restaurant operating profit in the second quarter of 2017 was adversely impacted by higher food and labor costs compared to the prior year quarter.

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.