Kura Sushi USA, Inc. (“Kura Sushi” or the “Company”) (NASDAQ:
KRUS), a technology-enabled Japanese restaurant concept, today
provided a COVID-19 business update and reported fiscal third
quarter 2021 financial results for the period ended May 31, 2021.
COVID-19 Business Update
As of May 31 2021, the Company had all 31 of its
restaurants open with indoor dining capacities of 50% to 100%,
depending on local requirements. As of today, the Company has all
32 restaurants operating at an indoor capacity of 100%, including
one new restaurant opened in the fiscal fourth
quarter.
During the third quarter of 2021, the Company
borrowed $5.0 million on its revolving line of credit and as of May
31, 2021, the Company had cash and cash equivalents of $4.7 million
and $17.0 million of debt. As permitted under the Coronavirus Aid,
Relief, and Economic Security Act (the “CARES Act”), the Company
recognized a $6.3 million employee retention credit during the
fiscal third quarter ended May 31, 2021.
Fiscal Third Quarter 2021
Highlights
- Total sales were
$18.5 million compared to $2.8 million in the third quarter of
2020;
- Operating income was $0.9 million,
compared to an operating loss of $8.0 million in the third quarter
of 2020;
- Net income was $0.8 million, or
$0.09 per diluted share, compared to net loss of $9.2 million, or
($1.10) per diluted share, in the third quarter of 2020.
- Adjusted net loss* was $4.5
million, or ($0.54) per diluted share, compared to an adjusted net
loss* of $10.7 million or ($1.29) per diluted share, in the third
quarter of 2020;
- Restaurant-level operating profit*
was $1.1 million;
- Adjusted EBITDA* was ($2.6)
million; and
- One new restaurant opened during
the third quarter of 2021.
* Adjusted net loss, Restaurant-level operating
profit (loss) and Adjusted EBITDA are non-GAAP measures and are
defined below under “Key Financial Definitions”. Please see the
reconciliation of non-GAAP measures accompanying this release. See
also “Non-GAAP Financial Measures” below.
Hajime Uba, President and Chief Executive
Officer of Kura Sushi, stated, “We are thrilled with the continued
recovery of our restaurants during the fiscal third quarter,
characterized by meaningful improvement in sales and
restaurant-level profitability, as we slowly increased our dining
room capacity in accordance with the state and local regulations.
Moreover, our sales recovery has continued thus far into fiscal
fourth quarter with the re-opening of California in mid-June. I’m
pleased to say that today, all of our restaurants are operating at
full capacity and our team members are ready to capitalize on our
guests’ pent-up demand for the full Kura experience.”
Uba added, “Fiscal 2021 has been our busiest,
and possibly our most productive development year ever as we
successfully opened seven new restaurants and entered five new
markets. This was truly an impressive feat by our development team
given the challenging macro environment. As we look into fiscal
2022, we are benefitting from new real estate opportunities created
by the pandemic, and when coupled with our rigorous site selection
process, we believe we have the most exciting pipeline of new
restaurants since we entered the U.S. Fiscal 2021 was a record
development year for Kura, and we expect to maintain this growth
momentum in fiscal 2022.”
Review of Fiscal Third Quarter 2021
Financial Results
Total sales were $18.5 million compared to $2.8
million in the third quarter of 2020. Comparable restaurant sales
increased 456% for the third quarter of 2021. Comparable restaurant
sales decreased 19% when compared to the third quarter of 2019.
Food and beverage costs as a percentage of sales
was 31.7% compared to 38.0% in the third quarter of 2020. The
decrease is primarily a result of lower inventory spoilage.
Labor and related costs as a percentage of sales
decreased to 8.9% from 126.3% in the third quarter of 2020. In the
third quarter of 2021, a $5.8 million employee retention credit was
recognized under the CARES Act and extension thereof compared to
$1.6 million in the third quarter of 2020. Excluding the $5.8
million employee retention credit and $0.7 million in retention and
new hire bonuses, labor and related costs would have been 36.6% in
the third quarter of 2021. The decrease as a percentage of sales
was primarily due to the costs of retaining certain restaurant
employees when there were no sales during the temporary restaurant
closures in the third quarter of 2020.
Occupancy and related expenses were $1.9 million
compared to $1.6 million in the third quarter of 2020. The increase
is primarily due to six new restaurants opened since the third
quarter of 2020.
Other costs as a percentage of sales decreased
to 14.7% compared to 34.3% in the third quarter of 2020. The
decrease was primarily due to the fixed cost deleverage as a result
of a decrease in sales in the third quarter of 2020.
General and administrative expenses were $4.3
million compared to $2.9 million in the third quarter of 2020. In
the third quarter of 2021, a $0.5 million employee retention credit
was recognized under the CARES Act and extension thereof. Excluding
the impact of the $0.5 million employee retention credit and a $1.0
million litigation accrual, general and administrative expenses
would have been $3.8 million. This increase was primarily due to
additional compensation-related expenses. As a percentage of sales,
general and administrative expenses decreased to 23.2% compared to
102.6% in the third quarter of 2020.
Operating income was $0.9 million, compared to
an operating loss of $8.0 million in the third quarter of 2020.
Income tax expense was $30 thousand compared to
income tax expense of $1.2 million in the third quarter of 2020.
The third quarter of 2020 included a $1.1 million valuation
allowance on our deferred tax assets.
Net income was $0.8 million, or $0.09 per
diluted share, compared to net loss of $9.2 million, or ($1.10) per
diluted share, in the third quarter of 2020.
Adjusted net loss* was $4.5 million, or ($0.54)
per diluted share, compared to an adjusted net loss* of $10.7
million, or ($1.29) per diluted share, in the third quarter of
2020.
Restaurant-level operating profit* was $1.1
million, compared to restaurant-level operating loss* of $5.3
million in the third quarter of 2020.
Adjusted EBITDA* was ($2.6) million, compared to
($8.2) million in the third quarter of 2020.
Restaurant Development
During the third quarter of fiscal 2021, one new
restaurant was opened in Sherman Oaks, CA. Subsequent to May 31,
2021, the Company opened one new restaurant in Bellevue,
WA.
Conference Call
A conference call and webcast to discuss Kura
Sushi’s financial results is scheduled for 5:00 p.m. ET today.
Hosting the conference call and webcast will be Hajime “Jimmy” Uba,
President and Chief Executive Officer and Steven Benrubi, Chief
Financial Officer.
Interested parties may listen to the conference
call via telephone by dialing 201-689-8471. A telephone replay will
be available shortly after the call has concluded and can be
accessed by dialing 412-317-6671; the passcode is 13720825. The
replay will be available until July 20, 2021. The webcast will be
available at www.kurasushi.com under the investor relations section
and will be archived on the site shortly after the call has
concluded.
About Kura Sushi USA, Inc.
Kura Sushi USA, Inc. is a technology-enabled
Japanese restaurant concept with 32 locations in nine states and
Washington DC. The Company offers guests a distinctive dining
experience built on authentic Japanese cuisine and an engaging
revolving sushi service model. Kura Sushi USA, Inc. was established
in 2008 as a subsidiary of Kura Sushi, Inc., a Japan-based
revolving sushi chain with over 480 restaurants and 35 years of
brand history. For more information, please visit
www.kurasushi.com.
Key Financial Definitions
Adjusted Net Income (Loss), a
non-GAAP measure, is defined as net income (loss) before certain
items, such as employee retention credit, litigation accrual and
certain executive transition costs, that the Company believes are
not indicative of its core operating results. Adjusted income
(loss) per diluted share represents adjusted net income (loss)
divided by the number of diluted shares.
EBITDA, a non-GAAP measure, is
defined as net income (loss) before interest, income taxes and
depreciation and amortization expenses.
Adjusted EBITDA, a non-GAAP
measure, is defined as EBITDA plus stock-based compensation
expense, non-cash lease expense and asset disposals, closure costs
and restaurant impairments, as well as certain items, such as
employee retention credit, litigation accrual and certain executive
transition costs, that the Company believes are not indicative of
its core operating results. Adjusted EBITDA margin is defined as
adjusted EBITDA divided by sales.
Restaurant-level Operating Profit
(Loss), a non-GAAP measure, is defined as operating income
(loss) plus depreciation and amortization expenses; stock-based
compensation expense; employee retention credit; pre-opening costs
and general and administrative expenses which are considered
normal, recurring, cash operating expenses and are essential to
supporting the development and operations of restaurants; non-cash
lease expense; and asset disposals, closure costs and restaurant
impairments; less corporate-level stock-based compensation expense
and employee retention credit recognized within general and
administrative expenses. Restaurant-level operating profit (loss)
margin is defined as restaurant-level operating profit (loss)
divided by sales.
Comparable Restaurant Sales
Performance refers to the change in year-over-year sales
for the comparable restaurant base. The Company includes
restaurants in the comparable restaurant base that have been in
operation for at least 18 months prior to the start of the
accounting period presented due to new restaurants experiencing a
period of higher sales upon opening, including those temporarily
closed for renovations during the year. For restaurants that were
temporarily closed for renovations during the year, the Company
makes fractional adjustments to sales such that sales are
annualized in the associated period. Performance in comparable
restaurant sales represents the percent change in sales from the
same period in the prior year for the comparable restaurant base.
The Company did not make any adjustments for the temporary
restaurant closures due to COVID-19 during the three and nine
months ended May 31, 2021 and May 31, 2020.
Non-GAAP Financial Measures
To supplement the condensed financial statements
presented in accordance with U.S. generally accepted accounting
principles (“GAAP”), the Company presents certain financial
measures, such as adjusted net income (loss), EBITDA, adjusted
EBITDA, adjusted EBITDA margin, restaurant-level operating profit
(loss) and restaurant-level operating profit (loss) margin
(“non-GAAP measures”) that are not recognized under GAAP. These
non-GAAP measures are intended as supplemental measures of its
performance that are neither required by, nor presented in
accordance with, GAAP. The Company is presenting these non-GAAP
measures because the Company believes that they provide useful
information to management and investors regarding certain financial
and business trends relating to its financial condition and
operating results. These measures also may not provide a complete
understanding of the operating results of the Company as a whole
and such measures should be reviewed in conjunction with its GAAP
financial results. Additionally, the Company presents
restaurant-level operating profit (loss) because it excludes the
impact of general and administrative expenses which are not
incurred at the restaurant-level. The Company also uses
restaurant-level operating profit (loss) to measure operating
performance and returns from opening new restaurants.
The Company believes that the use of these
non-GAAP measures provides an additional tool for investors to use
in evaluating ongoing operating results and trends and in comparing
the Company’s financial measures with those of comparable
companies, which may present similar non-GAAP financial measures to
investors. However, you should be aware that restaurant-level
operating profit (loss) and restaurant-level operating profit
(loss) margin are financial measures which are not indicative of
overall results for the Company, and restaurant-level operating
profit (loss) and restaurant-level operating profit (loss) margin
do not accrue directly to the benefit of stockholders because of
corporate-level expenses excluded from such measures. In addition,
you should be aware when evaluating these non-GAAP measures that in
the future the Company may incur expenses similar to those excluded
when calculating these measures. The Company’s presentation of
these measures should not be construed as an inference that its
future results will be unaffected by unusual or non-recurring
items. The Company’s computation of these non-GAAP measures may not
be comparable to other similarly titled measures computed by other
companies, because all companies may not calculate these non-GAAP
measures in the same fashion. Because of these limitations, these
non-GAAP measures should not be considered in isolation or as a
substitute for performance measures calculated in accordance with
GAAP. The Company compensates for these limitations by relying
primarily on its GAAP results and using these non-GAAP measures on
a supplemental basis.
Forward-Looking Statements
Except for historical information contained
herein, the statements in this press release or otherwise made by
our management in connection with the subject matter of this press
release are forward-looking statements (as such term is defined in
the Private Securities Litigation Reform Act of 1995) and involve
risks and uncertainties and are subject to change based on various
important factors. This press release includes forward-looking
statements that are based on management’s current estimates or
expectations of future events or future results. These statements
are not historical in nature and can generally be identified by
such words as “target,” “may,” “might,” “will,” “objective,”
“intend,” “should,” “could,” “can,” “would,” “expect,” “believe,”
“design,” “estimate,” “continue,” “predict,” “potential,” “plan,”
“anticipate” or the negative of these terms, and similar
expressions. Management’s expectations and assumptions regarding
future results are subject to risks, uncertainties and other
factors that could cause actual results to differ materially from
the anticipated results or other expectations expressed in the
forward-looking statements included in this press release. These
risks and uncertainties include but are not limited to: risks
related to the COVID-19 outbreak; our ability to successfully
resume and maintain increases in our comparable restaurant sales;
our ability to successfully execute our growth strategy and open
new restaurants that are profitable; our ability to expand in
existing and new markets; our projected growth in the number of our
restaurants; macroeconomic conditions and other economic factors;
our ability to compete with many other restaurants; our reliance on
vendors, suppliers and distributors, including our parent company
Kura Sushi, Inc.; concerns regarding food safety and foodborne
illness; changes in consumer preferences and the level of
acceptance of our restaurant concept in new markets; minimum wage
increases and mandated employee benefits that could cause a
significant increase in our labor costs; the failure of our
automated equipment or information technology systems or the breach
of our network security; the loss of key members of our management
team; the impact of governmental laws and regulations; volatility
in the price of our common stock; and other risks and uncertainties
as described in our filings with the Securities and Exchange
Commission (“SEC”). These and other factors that could cause
results to differ materially from those described in the
forward-looking statements contained in this press release can be
found in the Company’s other filings with the SEC. Undue reliance
should not be placed on forward-looking statements, which are only
current as of the date they are made. The Company assumes no
obligation to update or revise its forward-looking statements,
except as may be required by applicable law.
Investor Relations Contact:Fitzhugh Taylor or
Steven Boediarto(657) 333-4010investor@kurausa.com
Kura Sushi USA,
Inc.Condensed Statements of
Operations(in thousands, except per share amounts;
unaudited)
|
|
Three Months EndedMay 31, |
|
|
Nine Months EndedMay 31, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Sales |
|
$ |
18,471 |
|
|
$ |
2,812 |
|
|
$ |
36,967 |
|
|
$ |
39,640 |
|
Restaurant operating costs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Food and beverage costs |
|
|
5,850 |
|
|
|
1,069 |
|
|
|
12,078 |
|
|
|
12,868 |
|
Labor and related costs |
|
|
1,649 |
|
|
|
3,551 |
|
|
|
8,070 |
|
|
|
15,336 |
|
Occupancy and related expenses |
|
|
1,885 |
|
|
|
1,589 |
|
|
|
5,202 |
|
|
|
4,665 |
|
Depreciation and amortization expenses |
|
|
1,086 |
|
|
|
743 |
|
|
|
3,015 |
|
|
|
2,118 |
|
Other costs |
|
|
2,713 |
|
|
|
964 |
|
|
|
6,843 |
|
|
|
5,221 |
|
Total restaurant operating costs |
|
|
13,183 |
|
|
|
7,916 |
|
|
|
35,208 |
|
|
|
40,208 |
|
General and administrative
expenses |
|
|
4,292 |
|
|
|
2,885 |
|
|
|
10,687 |
|
|
|
8,994 |
|
Depreciation and amortization
expenses |
|
|
130 |
|
|
|
39 |
|
|
|
299 |
|
|
|
97 |
|
Total operating expenses |
|
|
17,605 |
|
|
|
10,840 |
|
|
|
46,194 |
|
|
|
49,299 |
|
Operating income (loss) |
|
|
866 |
|
|
|
(8,028 |
) |
|
|
(9,227 |
) |
|
|
(9,659 |
) |
Other expense (income): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
67 |
|
|
|
36 |
|
|
|
154 |
|
|
|
103 |
|
Interest income |
|
|
(1 |
) |
|
|
(65 |
) |
|
|
(8 |
) |
|
|
(432 |
) |
Income (loss) before income
taxes |
|
|
800 |
|
|
|
(7,999 |
) |
|
|
(9,373 |
) |
|
|
(9,330 |
) |
Income tax expense |
|
|
30 |
|
|
|
1,153 |
|
|
|
88 |
|
|
|
1,179 |
|
Net income (loss) |
|
$ |
770 |
|
|
$ |
(9,152 |
) |
|
$ |
(9,461 |
) |
|
$ |
(10,509 |
) |
Net income (loss) per Class A and
Class B shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.09 |
|
|
$ |
(1.10 |
) |
|
$ |
(1.13 |
) |
|
$ |
(1.26 |
) |
Diluted |
|
$ |
0.09 |
|
|
$ |
(1.10 |
) |
|
$ |
(1.13 |
) |
|
$ |
(1.26 |
) |
Weighted average Class A and
Class B shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
8,383 |
|
|
|
8,341 |
|
|
|
8,381 |
|
|
|
8,337 |
|
Diluted |
|
|
8,663 |
|
|
|
8,341 |
|
|
|
8,381 |
|
|
|
8,337 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kura Sushi USA,
IncSelected Balance Sheet Data and Selected
Operating Data(in thousands; except restaurants
and percentages; unaudited)
|
|
May 31,2021 |
|
|
August 31,2020 |
|
Selected Balance Sheet Data: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
4,701 |
|
|
$ |
9,259 |
|
Total assets |
|
$ |
130,434 |
|
|
$ |
118,379 |
|
Loan from affiliate |
|
$ |
17,000 |
|
|
|
— |
|
Total liabilities |
|
$ |
92,777 |
|
|
$ |
72,666 |
|
Total stockholders’ equity |
|
$ |
37,657 |
|
|
$ |
45,713 |
|
|
|
Three Months EndedMay 31, |
|
|
Nine Months EndedMay 31, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Selected Operating Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restaurants at the end of
period |
|
|
31 |
|
|
|
25 |
|
|
|
31 |
|
|
|
25 |
|
Comparable restaurant sales
performance |
|
|
455.6 |
% |
|
|
(85.4 |
)% |
|
|
(20.5 |
)% |
|
|
(24.5 |
)% |
EBITDA |
|
$ |
2,082 |
|
|
$ |
(7,246 |
) |
|
$ |
(5,913 |
) |
|
$ |
(7,444 |
) |
Adjusted EBITDA |
|
$ |
(2,592 |
) |
|
$ |
(8,225 |
) |
|
$ |
(11,553 |
) |
|
$ |
(7,587 |
) |
Adjusted EBITDA margin |
|
|
(14.0 |
)% |
|
|
(292.5 |
)% |
|
|
(31.3 |
)% |
|
|
-19.1 |
% |
Operating income (loss) |
|
$ |
866 |
|
|
$ |
(8,028 |
) |
|
$ |
(9,227 |
) |
|
$ |
(9,659 |
) |
Operating profit (loss) margin |
|
|
4.7 |
% |
|
|
(285.5 |
)% |
|
|
(25.0 |
)% |
|
|
(24.4 |
)% |
Restaurant-level operating profit
(loss) |
|
$ |
1,064 |
|
|
$ |
(5,333 |
) |
|
$ |
(1,423 |
) |
|
$ |
1,566 |
|
Restaurant-level operating profit (loss) margin |
|
|
5.8 |
% |
|
|
(189.7 |
)% |
|
|
(3.8 |
)% |
|
|
4.0 |
% |
Reconciliation of Net Income (Loss) and
Income (Loss) Per Diluted Share toAdjusted Net
Loss and Adjusted Loss Per Diluted Share(in
thousands, except income (loss) per share amounts;
unaudited)
|
|
Three Months EndedMay 31, |
|
|
Nine Months EndedMay 31, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Net income (loss) |
|
$ |
770 |
|
|
$ |
(9,152 |
) |
|
$ |
(9,461 |
) |
|
$ |
(10,509 |
) |
Executive transition costs(4) |
|
|
— |
|
|
|
— |
|
|
|
390 |
|
|
|
— |
|
Employee retention credit(5) |
|
|
(6,296 |
) |
|
|
(1,580 |
) |
|
|
(8,931 |
) |
|
|
(1,580 |
) |
Litigation accrual(6) |
|
|
1,000 |
|
|
|
— |
|
|
|
1,000 |
|
|
|
— |
|
Adjusted net loss |
|
$ |
(4,526 |
) |
|
$ |
(10,732 |
) |
|
$ |
(17,002 |
) |
|
$ |
(12,089 |
) |
Net income (loss) per Class A and
Class B shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per diluted share |
|
$ |
0.09 |
|
|
$ |
(1.10 |
) |
|
$ |
(1.13 |
) |
|
$ |
(1.26 |
) |
Executive transition costs(4) |
|
|
— |
|
|
|
— |
|
|
|
0.05 |
|
|
|
— |
|
Employee retention credit(5) |
|
|
(0.75 |
) |
|
|
(0.19 |
) |
|
|
(1.07 |
) |
|
|
(0.19 |
) |
Litigation accrual(6) |
|
|
0.12 |
|
|
|
— |
|
|
|
0.12 |
|
|
|
— |
|
Adjusted loss per diluted share |
|
$ |
(0.54 |
) |
|
$ |
(1.29 |
) |
|
$ |
(2.03 |
) |
|
$ |
(1.45 |
) |
Weighted average Class A and
Class B shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted shares |
|
|
8,663 |
|
|
|
8,341 |
|
|
|
8,381 |
|
|
|
8,337 |
|
Adjusted diluted shares |
|
|
8,383 |
|
|
|
8,341 |
|
|
|
8,381 |
|
|
|
8,337 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kura Sushi USA,
IncReconciliation of Net Income (Loss) to EBITDA
and Adjusted EBITDA(in thousands;
unaudited)
|
|
Three Months EndedMay 31, |
|
|
Nine Months EndedMay 31, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Net income (loss) |
|
$ |
770 |
|
|
$ |
(9,152 |
) |
|
$ |
(9,461 |
) |
|
$ |
(10,509 |
) |
Interest expense (income), net |
|
|
66 |
|
|
|
(29 |
) |
|
|
146 |
|
|
|
(329 |
) |
Income tax expense |
|
|
30 |
|
|
|
1,153 |
|
|
|
88 |
|
|
|
1,179 |
|
Depreciation and amortization expenses |
|
|
1,216 |
|
|
|
782 |
|
|
|
3,314 |
|
|
|
2,215 |
|
EBITDA |
|
|
2,082 |
|
|
|
(7,246 |
) |
|
|
(5,913 |
) |
|
|
(7,444 |
) |
Stock-based compensation expense(1) |
|
|
391 |
|
|
|
248 |
|
|
|
966 |
|
|
|
580 |
|
Non-cash lease expense(2) |
|
|
231 |
|
|
|
353 |
|
|
|
935 |
|
|
|
857 |
|
Executive transition costs(4) |
|
|
— |
|
|
|
— |
|
|
|
390 |
|
|
|
— |
|
Employee retention credit(5) |
|
|
(6,296 |
) |
|
|
(1,580 |
) |
|
|
(8,931 |
) |
|
|
(1,580 |
) |
Litigation accrual(6) |
|
|
1,000 |
|
|
|
— |
|
|
|
1,000 |
|
|
|
— |
|
Adjusted EBITDA |
|
$ |
(2,592 |
) |
|
$ |
(8,225 |
) |
|
$ |
(11,553 |
) |
|
$ |
(7,587 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kura Sushi USA,
IncReconciliation of Operating Income (Loss) to
Restaurant-level Operating Profit (Loss)(in
thousands; unaudited)
|
|
Three Months EndedMay 31, |
|
|
Nine Months EndedMay 31, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Operating income (loss) |
|
$ |
866 |
|
|
$ |
(8,028 |
) |
|
$ |
(9,227 |
) |
|
$ |
(9,659 |
) |
Depreciation and amortization expenses |
|
|
1,216 |
|
|
|
782 |
|
|
|
3,314 |
|
|
|
2,215 |
|
Stock-based compensation expense(1) |
|
|
391 |
|
|
|
248 |
|
|
|
966 |
|
|
|
580 |
|
Pre-opening costs(3) |
|
|
271 |
|
|
|
232 |
|
|
|
832 |
|
|
|
680 |
|
Non-cash lease expense(2) |
|
|
231 |
|
|
|
353 |
|
|
|
935 |
|
|
|
857 |
|
Employee retention credit(5) |
|
|
(6,296 |
) |
|
|
(1,580 |
) |
|
|
(8,931 |
) |
|
|
(1,580 |
) |
General and administrative expenses |
|
|
4,292 |
|
|
|
2,885 |
|
|
|
10,687 |
|
|
|
8,994 |
|
Corporate-level stock-based compensation and employee retention
credit included in general and administrative expenses |
|
|
93 |
|
|
|
(225 |
) |
|
|
1 |
|
|
|
(521 |
) |
Restaurant-level operating profit
(loss) |
|
$ |
1,064 |
|
|
$ |
(5,333 |
) |
|
$ |
(1,423 |
) |
|
$ |
1,566 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Stock-based compensation expense includes
non-cash stock-based compensation, which is comprised of
restaurant-level stock-based compensation included in other costs
in the statements of operations and corporate-level stock-based
compensation included in general and administrative expenses in the
statements of operations.
(2) Non-cash lease expense includes lease
expense from the date of possession of our restaurants that did not
require cash outlay in the respective periods.
(3) Pre-opening costs consist of labor costs and
travel expenses for new employees and trainers during the training
period, recruitment fees, legal fees, cash-based lease expenses
incurred between the date of possession and opening day of our
restaurants, and other related pre-opening costs.
(4) Executive transition costs include severance
and search fees associated with the transition of our Chief
Financial Officer. The income tax impact of this adjustment was
immaterial.
(5) Employee retention credit includes a
refundable credit recognized under the CARES Act and extension
thereof. The income tax impact of this adjustment was
immaterial.
(6) Accrual related to a litigation claim. The
income tax impact of this adjustment was immaterial.
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