Second Quarter Same-Store Sales Increase 5.0%; Diluted EPS of $0.05 ; Company Raises 2007 Earnings Guidance
Kona Grill, Inc. (Nasdaq: KONA), an American grill and sushi bar, reported results for its second quarter ended June 30, 2007.
Highlights for the second quarter of 2007 include:
• Opened restaurant in Troy, MI
• Revenue increased 62.7% to $19.3 million
• Same-store sales increased 5.0%
• Net income of $0.3 million, or $0.05 per diluted share, including non-cash stock-based compensation expense of $0.1 million, or $0.02 per diluted share
Highlights for the first six months of 2007 include:
• Revenue increased 58.5% to $35.0 million
• Same-store sales increased 3.4%
• Net loss of ($0.2) million, or ($0.04) per diluted share, including non-cash stock-based compensation expense of $0.3 million, or $0.06 per diluted share
"Our solid second quarter performance underscores the strength of the Kona Grill brand, as strong openings at both our Austin and Troy restaurants, as well as 5.0% growth in same-store sales, contributed to above forecasted sales and profitability. For the balance of 2007 and beyond, we believe we can continue building long-term shareholder value through industry-leading operating margins,' said Marcus E. Jundt, Chairman of the Board, President and Chief Executive Officer of Kona Grill.
Second Quarter Financial Results
Revenue increased 62.7% to $19.3 million during the second quarter of 2007 from $11.9 million during the same period last year. Same-store sales increased 5.0%, reflecting increased customer traffic coupled with higher menu prices. In the second quarter of 2006, the Company experienced 5.8% growth in same-store sales.
Average weekly sales for the nine restaurants in the comparable base were $99,083 during the second quarter of 2007, compared to $94,348 in the prior year period. Average weekly sales for restaurants not in the comparable base that were open the entire quarter were $82,815 during the second quarter this year compared to $76,595 during the same quarter of 2006.
Net income for the second quarter of 2007 was $0.3 million, or $0.05 per diluted share, based upon 6.2 million diluted shares, versus net loss of ($0.3) million or ($0.05) per diluted share last year, based upon 5.8 million diluted shares.
First Six Months Financial Results
Revenue increased 58.5% to $35.0 million during the first half of 2007 from $22.1 million in the same period last year. Same-store sales increased 3.4%. In the first half of 2006, the Company experienced 6.0% growth in same-store sales.
Net loss for the six months ended June 30, 2007 was ($0.2) million, or ($0.04) per diluted share based upon 5.9 million shares. This compares to a net loss of ($1.2) million, or ($0.21) per diluted share, based on 5.8 million diluted shares in the prior year period.
Financial Guidance
For the third quarter of 2007, the Company expects revenue of $18.7 million to $19.1 million and a net loss of ($0.1) million to net profit of $0.2 million, or ($0.02) to $0.03 per share. This range includes the estimated impact of expensing non-cash stock-based compensation which is estimated to be $0.02 to $0.03 per diluted share for the third quarter of 2007.
For fiscal year 2007, the Company has narrowed its anticipated revenue guidance to $72.5 million to $73.5 million and anticipates an improved net loss per share of ($0.17) to ($0.07) versus prior guidance. This range includes the estimated impact of stock-based compensation, which is estimated to be $0.10 to $0.12 per diluted share in 2007. The Company anticipates opening an additional two new restaurants in fiscal year 2007 in Baton Rouge, LA and Stamford, CT during the fourth quarter.
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