April 27, 2011 | ||||
Date of Report (Date of earliest event reported)
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KONA GRILL, INC.
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(Exact Name of Registrant as Specified in its Charter)
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Delaware | 001-34082 | 20-0216690 | ||
(State or other jurisdiction | (Commission File Number) | (IRS Employer | ||
of incorporation) | Identification No.) | |||
7150 E. Camelback Road, Suite 220
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Scottsdale, Arizona 85251 | ||||
(Address of principal executive offices) (Zip Code) |
(480) 922-8100 | ||||
(Registrant's telephone number, including area code)
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[
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] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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[
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] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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[
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] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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[
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] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Item 2.02
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Results of Operations and Financial Condition.
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Item 9.01
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Financial Statements and Exhibits.
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(d)
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Exhibits.
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99.1
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Press release from Kona Grill, Inc. dated April 27, 2011 titled, “Kona Grill Reports First Quarter 2011 Financial Results”
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KONA GRILL, INC. | |||
Date: April 27, 2011
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By:
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/s/ Mark S. Robinow | |
Mark S. Robinow
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Executive Vice President, Chief Financial Officer, and Secretary
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Number
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Description
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99.1
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Press release from Kona Grill, Inc. dated April 27, 2011 titled, “Kona Grill Reports First Quarter 2011 Financial Results”
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·
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Restaurant sales increased 12.3% to $23.6 million
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·
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Same-store sales increased 7.6%
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·
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Restaurant operating profit margin increased to 14.0%
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KONA GRILL, INC.
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CONDENSED CONSOLIDATED BALANCE SHEETS
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(in thousands)
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March 31,
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December 31,
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2011
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2010
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(Unaudited)
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ASSETS
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Current assets
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$ | 4,670 | $ | 3,951 | ||||
Other assets
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701 | 650 | ||||||
Property and equipment, net
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36,207 | 37,459 | ||||||
Total assets
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$ | 41,578 | $ | 42,060 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY
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Current liabilities
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$ | 8,497 | $ | 8,829 | ||||
Long-term obligations
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16,032 | 16,242 | ||||||
Stockholders’ equity
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17,049 | 16,989 | ||||||
Total liabilities and stockholders’ equity
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$ | 41,578 | $ | 42,060 |
KONA GRILL, INC.
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
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(in thousands, except per share data)
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Three Months Ended March 31,
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2011
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2010
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(Unaudited)
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Restaurant sales
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$ | 23,632 | $ | 21,052 | ||||
Costs and expenses:
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Cost of sales
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6,657 | 5,575 | ||||||
Labor
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8,093 | 7,583 | ||||||
Occupancy
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1,791 | 1,781 | ||||||
Restaurant operating expenses
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3,789 | 3,456 | ||||||
General and administrative
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1,882 | 2,137 | ||||||
Preopening expense
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- | 8 | ||||||
Depreciation and amortization
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1,490 | 1,399 | ||||||
Total costs and expenses
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23,702 | 21,939 | ||||||
Loss from operations
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(70 | ) | (887 | ) | ||||
Nonoperating income (expense):
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Interest income and other, net
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- | 22 | ||||||
Interest expense
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(12 | ) | (42 | ) | ||||
Loss before provision for income taxes
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(82 | ) | (907 | ) | ||||
Provision for income taxes
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10 | - | ||||||
Net loss
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$ | (92 | ) | $ | (907 | ) | ||
Net loss per share:
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Basic
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$ | (0.01 | ) | $ | (0.10 | ) | ||
Diluted
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$ | (0.01 | ) | $ | (0.10 | ) | ||
Weighted average shares outstanding:
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Basic
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9,203 | 9,155 | ||||||
Diluted
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9,203 | 9,155 |
Reconciliation of Restaurant Operating Profit to Loss from Operations
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The Company defines restaurant operating profit to be restaurant sales minus cost of sales, labor, occupancy, and restaurant operating expenses. Restaurant operating profit does not include general and administrative expenses, depreciation and amortization, or preopening expenses. The Company believes restaurant operating profit is an important component of financial results because it is a widely used metric within the restaurant industry to evaluate restaurant-level productivity, efficiency, and performance. The Company uses restaurant operating profit as a key metric to evaluate its restaurants' financial performance compared with its competitors. Restaurant operating profit is not a financial measurement determined in accordance with generally accepted accounting principles ("GAAP") and should not be considered in isolation or as an alternative to loss from operations. Restaurant operating profit may not be comparable to the same or similarly titled measures computed by other companies. The table below sets forth the Company's calculation of restaurant operating profit and a reconciliation to loss from operations, the most comparable GAAP measure (in thousands). |
Three Months Ended March 31,
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2011
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2010
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Restaurant sales
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$ | 23,632 | $ | 21,052 | ||||
Costs and expenses:
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Cost of sales
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6,657 | 5,575 | ||||||
Labor
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8,093 | 7,583 | ||||||
Occupancy
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1,791 | 1,781 | ||||||
Restaurant operating expenses
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3,789 | 3,456 | ||||||
Restaurant operating profit
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3,302 | 2,657 | ||||||
Deduct - other costs and expenses:
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General and administrative
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1,882 | 2,137 | ||||||
Preopening expense
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- | 8 | ||||||
Depreciation and amortization
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1,490 | 1,399 | ||||||
Loss from operations
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$ | (70 | ) | $ | (887 | ) | ||
Percentage of Restaurant Sales
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Three Months Ended March 31,
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2011 | 2010 | |||||||
Restaurant sales
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100.0 | % | 100.0 | % | ||||
Costs and expenses:
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Cost of sales
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28.2 | 26.5 | ||||||
Labor
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34.2 | 36.0 | ||||||
Occupancy
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7.6 | 8.5 | ||||||
Restaurant operating expenses
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16.0 | 16.4 | ||||||
Restaurant operating profit
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14.0 | 12.6 | ||||||
Deduct - other costs and expenses:
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General and administrative
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8.0 | 10.2 | ||||||
Preopening expense
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- | - | ||||||
Depreciation and amortization
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6.3 | 6.6 | ||||||
Loss from operations
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(0.3 | ) % | (4.2 | )% |