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 fourth
quarter and fiscal year 2021 financial results for the period ended
August 31, 2021.
COVID-19 Business Update
As of August 31, 2021, the Company had all 32 of
its restaurants open with indoor dining capacities of 100%. As of
today, the Company has all 33 restaurants operating at an indoor
capacity of 100%, including one new restaurant opened subsequent to
August 31, 2021.
Fiscal Fourth Quarter 2021
Highlights
- Total sales were
$27.9 million compared to $5.5 million in the fourth quarter of
2020;
- Operating loss was $0.8 million,
compared to an operating loss of $6.8 million in the fourth quarter
of 2020;
- Net loss was $0.8 million, or
($0.09) per diluted share, compared to net loss of $6.8 million, or
($0.82) per diluted share, in the fourth quarter of 2020;
- Adjusted net loss* was $1.4
million, or ($0.15) per diluted share, compared to an adjusted net
loss* of $7.0 million or ($0.84) per diluted share, in the fourth
quarter of 2020;
- Restaurant-level operating profit*
was $4.6 million;
- Adjusted EBITDA* was $0.6 million;
and
- One new restaurant opened during
the fourth quarter of 2021.
* Adjusted net income (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, “Our fiscal fourth quarter results
demonstrate the continued momentum in our business recovery.
Despite challenges presented by COVID-19 and its variants, we
generated meaningful top line growth and a solid 4.9% increase in
comparable restaurant sales versus 2019. Moreover, our operational
efficiencies have also allowed us to deliver a restaurant-level
operating profit margins of over 16%, strongly narrowing the gap to
our pre-pandemic performance. Through a renewed focus on
recruitment and retention, and continued investment in
technological innovation and automation, we have positioned our
Company for success as we enter fiscal 2022.”
Uba added, “Fiscal 2022 is an exciting year for
us as we plan to open eight to ten new restaurants. In fact, we
have been extremely pleased with the performance of this year’s
first opening in Stonestown Galleria in San Francisco. With a mix
of new markets and in-fills, we believe that our whitespace
potential is larger than ever due to pandemic-driven restaurant
closures, particularly in the Japanese restaurant segment, and our
team is ready and eager to bring the Kura experience to new guests
across America.”
Follow-on Offering of Common Stock and
CARES Act Employee Retention Credit
During the fourth quarter of 2021, the Company
closed an underwritten public offering of 1,265,000 shares of its
Class A common stock at a public offering price of $45.00 per
share, including the exercise in full by the underwriters of their
option to purchase an additional 165,000 shares of Class A common
stock. The Company received proceeds from the offering, net of
underwriters’ discounts and commissions and offering expenses, of
approximately $53.5 million. The Company paid down in full its
$17.0 million outstanding balance on its revolving line of credit
as of August 31, 2021. As of August 31, 2021, the Company had cash
and cash equivalents of $40.4 million and no debt. As permitted
under the Coronavirus Aid, Relief, and Economic Security Act (the
“CARES Act”), the Company recognized a $1.3 million employee
retention credit during the fiscal fourth quarter ended August 31,
2021.
Review of Fiscal Fourth Quarter 2021
Financial Results
Total sales were $27.9 million compared to $5.5
million in the fourth quarter of 2020. Comparable restaurant sales
increased 291% for the fourth quarter of 2021 as compared to the
fourth quarter of 2020. Comparable restaurant sales increased 4.9%
as compared to the fourth quarter of 2019.
Food and beverage costs as a percentage of sales
were 30.8% compared to 33.3% in the fourth quarter of 2020. The
decrease is primarily due to normalized performance as sales
volumes improved and inventory spoilage decreased.
Labor and related costs as a percentage of sales
decreased to 29.9% from 60.3% in the fourth quarter of 2020. In the
fourth quarter of 2021, a $1.2 million employee retention credit
was recognized under the CARES Act and extension thereof compared
to $0.1 million in the fourth quarter of 2020. Excluding the $1.2
million employee retention credit, labor and related costs would
have been 34.3% in the fourth quarter of 2021. The decrease as a
percentage of sales was primarily due to the effect of lower sales
and minimum staffing needed to operate our restaurants at reduced
capacities in the fourth quarter of 2020.
Occupancy and related expenses were $1.9 million
compared to $1.7 million in the fourth quarter of 2020. The
increase is primarily due to seven new restaurants opened since the
fourth quarter of 2020, partially offset by lower pre-opening lease
expense.
Other costs as a percentage of sales decreased
to 12.9% compared to 26.8% in the fourth quarter of 2020. The
decrease was primarily due to higher sales leverage.
General and administrative expenses were $5.0
million compared to $3.1 million in the fourth quarter of 2020.
Excluding the impact of a $0.8 million litigation accrual, general
and administrative expenses would have been $4.2 million. This
increase was primarily due to compensation expenses for headcount
additions to support our accelerated growth. As a percentage of
sales, adjusted general and administrative expenses decreased to
15.2% compared to 55.5% in the fourth quarter of 2020.
Operating loss was $0.8 million compared to an
operating loss of $6.8 million in the fourth quarter of 2020.
Income tax expense was $18 thousand compared to
an income tax benefit of $5 thousand in the fourth quarter of
2020.
Net loss was $0.8 million, or ($0.09) per
diluted share, compared to net loss of $6.8 million, or ($0.82) per
diluted share, in the fourth quarter of 2020.
Adjusted net loss* was $1.4 million, or ($0.15)
per diluted share, compared to adjusted net loss* of $7.0 million,
or ($0.84) per diluted share, in the fourth quarter of 2020.
Restaurant-level operating profit* was $4.6
million compared to restaurant-level operating loss* of $2.3
million in the fourth quarter of 2020.
Adjusted EBITDA* was $0.6 million compared to
($5.4) million in the fourth quarter of 2020.
Review of Fiscal Year 2021 Financial
Results
Total sales were $64.9 million compared to $45.2
million in the fiscal year 2020. Comparable restaurant sales
increased 16% as compared to fiscal year 2020. Average unit volumes
were $2.1 million.
Operating loss was $10.0 million compared to an
operating loss of $16.5 million in fiscal year 2020.
Income tax expense was $0.1 million compared to
income tax expense of $1.2 million in fiscal year 2020. Fiscal year
2020 included a $1.1 million valuation allowance on our deferred
tax assets.
Net loss was $10.3 million, or ($1.21) per
diluted share, compared to a net loss of $17.4 million, or ($2.08)
per diluted share, in fiscal year 2020.
Adjusted net loss* was $18.4 million, or ($2.16)
per diluted share, compared to adjusted net loss* of $19.1 million,
or ($2.29) per diluted share, in fiscal year 2020.
Restaurant-level operating profit* was $3.2
million compared to restaurant-level operating loss* of $0.7
million in fiscal year 2020.
Adjusted EBITDA* was ($10.9) million compared to
($13.0) million in fiscal year 2020.
Restaurant Development
During the fiscal fourth quarter 2021, we opened
one new restaurant in Bellevue, WA. Subsequent to August 31, 2021,
we opened one new restaurant in San Francisco, CA.
Fiscal Year 2022 Outlook
- Total sales
between $130 million and $140 million;
- General and administrative expenses
as a percentage of sales of approximately 17%; and
- 8 to 10 new restaurants, with
average net capital expenditures per unit of approximately $2.1
million.
These expectations assume that the Company
experiences no further operating restrictions or material downturns
in the pandemic situation. These expectations are based on the
Company’s recent results in the fourth quarter of fiscal 2021, as
well as performance to-date in the first quarter of fiscal 2022.
While the Company believes these expectations are appropriate given
the current operating environment, the restaurant industry remains
highly vulnerable to COVID-related volatility.
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 13723969. The
replay will be available until November 18, 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 33 locations across 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 more than 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 net 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.
Average Unit Volumes (“AUVs”)
consist of the average annual sales of all restaurants that have
been open for 18 months or longer at the end of the fiscal year
presented. AUVs are calculated by dividing (x) annual sales for the
fiscal year presented for all such restaurants by (y) the total
number of restaurants in that base. The Company makes fractional
adjustments to sales for restaurants that were not open for the
entire fiscal year presented (e.g., a restaurant is closed for
renovation) to annualize sales for such period of time. The Company
did not make any adjustments for the temporary restaurant closures
due to COVID-19 during the fiscal years ended August 31, 2021 and
August 31, 2020.
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 months and
fiscal years ended August 31, 2021 and August 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 Ended August 31, |
|
|
Fiscal Year Ended August 31, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Sales |
|
$ |
27,924 |
|
|
$ |
5,528 |
|
|
$ |
64,891 |
|
|
$ |
45,168 |
|
Restaurant operating costs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Food and beverage costs |
|
|
8,608 |
|
|
|
1,841 |
|
|
|
20,686 |
|
|
|
14,709 |
|
Labor and related costs |
|
|
8,360 |
|
|
|
3,333 |
|
|
|
16,430 |
|
|
|
18,669 |
|
Occupancy and related expenses |
|
|
1,891 |
|
|
|
1,694 |
|
|
|
7,093 |
|
|
|
6,359 |
|
Depreciation and amortization expenses |
|
|
1,111 |
|
|
|
862 |
|
|
|
4,126 |
|
|
|
2,980 |
|
Other costs |
|
|
3,605 |
|
|
|
1,484 |
|
|
|
10,448 |
|
|
|
6,705 |
|
Total restaurant operating costs |
|
|
23,575 |
|
|
|
9,214 |
|
|
|
58,783 |
|
|
|
49,422 |
|
General and administrative
expenses |
|
|
5,014 |
|
|
|
3,070 |
|
|
|
15,701 |
|
|
|
12,064 |
|
Depreciation and amortization
expenses |
|
|
97 |
|
|
|
83 |
|
|
|
396 |
|
|
|
180 |
|
Total operating expenses |
|
|
28,686 |
|
|
|
12,367 |
|
|
|
74,880 |
|
|
|
61,666 |
|
Operating loss |
|
|
(762 |
) |
|
|
(6,839 |
) |
|
|
(9,989 |
) |
|
|
(16,498 |
) |
Other expense (income): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
66 |
|
|
|
33 |
|
|
|
220 |
|
|
|
136 |
|
Interest income |
|
|
(12 |
) |
|
|
(18 |
) |
|
|
(20 |
) |
|
|
(450 |
) |
Loss before income taxes |
|
|
(816 |
) |
|
|
(6,854 |
) |
|
|
(10,189 |
) |
|
|
(16,184 |
) |
Income tax expense (benefit) |
|
|
18 |
|
|
|
(5 |
) |
|
|
106 |
|
|
|
1,174 |
|
Net loss |
|
$ |
(834 |
) |
|
$ |
(6,849 |
) |
|
$ |
(10,295 |
) |
|
$ |
(17,358 |
) |
Net loss per Class A and Class B
shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.09 |
) |
|
$ |
(0.82 |
) |
|
$ |
(1.21 |
) |
|
$ |
(2.08 |
) |
Diluted |
|
$ |
(0.09 |
) |
|
$ |
(0.82 |
) |
|
$ |
(1.21 |
) |
|
$ |
(2.08 |
) |
Weighted average Class A and
Class B shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
8,919 |
|
|
|
8,342 |
|
|
|
8,528 |
|
|
|
8,338 |
|
Diluted |
|
|
8,919 |
|
|
|
8,342 |
|
|
|
8,528 |
|
|
|
8,338 |
|
Kura Sushi USA,
Inc.Selected Balance Sheet Data and Selected
Operating Data(in thousands; except restaurants
and percentages; unaudited)
|
|
August 31,2021 |
|
|
August 31,2020 |
|
Selected Balance Sheet Data: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
40,430 |
|
|
$ |
9,259 |
|
Total assets |
|
$ |
177,669 |
|
|
$ |
118,379 |
|
Total liabilities |
|
$ |
86,825 |
|
|
$ |
72,666 |
|
Total stockholders’ equity |
|
$ |
90,844 |
|
|
$ |
45,713 |
|
|
|
Three Months Ended August 31, |
|
|
Fiscal Year Ended August 31, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Selected Operating Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restaurants at the end of
period |
|
|
32 |
|
|
|
25 |
|
|
|
32 |
|
|
|
25 |
|
Average unit volumes |
|
N/A |
|
|
N/A |
|
|
|
2,138 |
|
|
|
1,942 |
|
Comparable restaurant sales
performance |
|
|
291.4 |
% |
|
|
(72.7 |
)% |
|
|
16.2 |
% |
|
|
(37.8 |
)% |
EBITDA |
|
$ |
446 |
|
|
$ |
(5,894 |
) |
|
$ |
(5,467 |
) |
|
$ |
(13,338 |
) |
Adjusted EBITDA |
|
$ |
619 |
|
|
$ |
(5,408 |
) |
|
$ |
(10,934 |
) |
|
$ |
(12,995 |
) |
Adjusted EBITDA margin |
|
|
2.2 |
% |
|
|
(97.8 |
)% |
|
|
(16.8 |
)% |
|
|
(28.8 |
)% |
Operating loss |
|
$ |
(762 |
) |
|
$ |
(6,839 |
) |
|
$ |
(9,989 |
) |
|
$ |
(16,498 |
) |
Operating loss margin |
|
|
(2.7 |
)% |
|
|
(123.7 |
)% |
|
|
(15.4 |
)% |
|
|
(36.5 |
)% |
Restaurant-level operating profit
(loss) |
|
$ |
4,592 |
|
|
$ |
(2,299 |
) |
|
$ |
3,169 |
|
|
$ |
(733 |
) |
Restaurant-level operating profit (loss) margin |
|
|
16.4 |
% |
|
|
(41.6 |
)% |
|
|
4.9 |
% |
|
|
(1.6 |
)% |
Kura Sushi USA,
Inc.Reconciliation of Net Loss and Net Loss Per
Diluted Share toAdjusted Net Loss and Adjusted Net
Loss Per Diluted Share(in thousands, except loss
per share amounts; unaudited)
|
|
Three Months Ended August 31, |
|
|
Fiscal Year Ended August 31, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Net loss |
|
$ |
(834 |
) |
|
$ |
(6,849 |
) |
|
$ |
(10,295 |
) |
|
$ |
(17,358 |
) |
Executive transition costs(4) |
|
|
— |
|
|
|
— |
|
|
|
390 |
|
|
|
— |
|
Employee retention credit(5) |
|
|
(1,327 |
) |
|
|
(170 |
) |
|
|
(10,258 |
) |
|
|
(1,750 |
) |
Litigation accrual(6) |
|
|
780 |
|
|
|
— |
|
|
|
1,780 |
|
|
|
— |
|
Adjusted net loss |
|
$ |
(1,381 |
) |
|
$ |
(7,019 |
) |
|
$ |
(18,383 |
) |
|
$ |
(19,108 |
) |
Net loss per Class A and Class B
diluted share |
|
$ |
(0.09 |
) |
|
$ |
(0.82 |
) |
|
$ |
(1.21 |
) |
|
$ |
(2.08 |
) |
Executive transition costs(4) |
|
|
— |
|
|
|
— |
|
|
|
0.04 |
|
|
|
— |
|
Employee retention credit(5) |
|
|
(0.15 |
) |
|
|
(0.02 |
) |
|
|
(1.20 |
) |
|
|
(0.21 |
) |
Litigation accrual(6) |
|
|
0.09 |
|
|
|
— |
|
|
|
0.21 |
|
|
|
— |
|
Adjusted net loss per Class A and
Class B diluted share |
|
$ |
(0.15 |
) |
|
$ |
(0.84 |
) |
|
$ |
(2.16 |
) |
|
$ |
(2.29 |
) |
Weighted average Class A and
Class B shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted shares |
|
|
8,919 |
|
|
|
8,342 |
|
|
|
8,528 |
|
|
|
8,338 |
|
Adjusted diluted shares |
|
|
8,919 |
|
|
|
8,342 |
|
|
|
8,528 |
|
|
|
8,338 |
|
Kura Sushi USA,
Inc.Reconciliation of Net Loss to EBITDA and
Adjusted EBITDA(in thousands;
unaudited)
|
|
Three Months Ended August 31, |
|
|
Fiscal Year Ended August 31, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Net loss |
|
$ |
(834 |
) |
|
$ |
(6,849 |
) |
|
$ |
(10,295 |
) |
|
$ |
(17,358 |
) |
Interest expense (income), net |
|
|
54 |
|
|
|
15 |
|
|
|
200 |
|
|
|
(314 |
) |
Income tax expense (benefit) |
|
|
18 |
|
|
|
(5 |
) |
|
|
106 |
|
|
|
1,174 |
|
Depreciation and amortization expenses |
|
|
1,208 |
|
|
|
945 |
|
|
|
4,522 |
|
|
|
3,160 |
|
EBITDA |
|
|
446 |
|
|
|
(5,894 |
) |
|
|
(5,467 |
) |
|
|
(13,338 |
) |
Stock-based compensation expense(1) |
|
|
443 |
|
|
|
280 |
|
|
|
1,409 |
|
|
|
860 |
|
Non-cash lease expense(2) |
|
|
277 |
|
|
|
376 |
|
|
|
1,212 |
|
|
|
1,233 |
|
Executive transition costs(4) |
|
|
— |
|
|
|
— |
|
|
|
390 |
|
|
|
— |
|
Employee retention credit(5) |
|
|
(1,327 |
) |
|
|
(170 |
) |
|
|
(10,258 |
) |
|
|
(1,750 |
) |
Litigation accrual(6) |
|
|
780 |
|
|
|
— |
|
|
|
1,780 |
|
|
|
— |
|
Adjusted EBITDA |
|
$ |
619 |
|
|
$ |
(5,408 |
) |
|
$ |
(10,934 |
) |
|
$ |
(12,995 |
) |
Kura Sushi USA,
Inc.Reconciliation of Operating Loss to
Restaurant-level Operating Profit (Loss)(in
thousands; unaudited)
|
|
Three Months Ended August 31, |
|
|
Fiscal Year Ended August 31, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Operating loss |
|
$ |
(762 |
) |
|
$ |
(6,839 |
) |
|
$ |
(9,989 |
) |
|
$ |
(16,498 |
) |
Depreciation and amortization expenses |
|
|
1,208 |
|
|
|
945 |
|
|
|
4,522 |
|
|
|
3,160 |
|
Stock-based compensation expense(1) |
|
|
443 |
|
|
|
280 |
|
|
|
1,409 |
|
|
|
860 |
|
Pre-opening costs(3) |
|
|
41 |
|
|
|
292 |
|
|
|
873 |
|
|
|
972 |
|
Non-cash lease expense(2) |
|
|
277 |
|
|
|
376 |
|
|
|
1,212 |
|
|
|
1,233 |
|
Employee retention credit(5) |
|
|
(1,327 |
) |
|
|
(170 |
) |
|
|
(10,258 |
) |
|
|
(1,750 |
) |
General and administrative expenses |
|
|
5,014 |
|
|
|
3,070 |
|
|
|
15,701 |
|
|
|
12,064 |
|
Corporate-level stock-based compensation and employee retention
credit included in general and administrative expenses |
|
|
(302 |
) |
|
|
(253 |
) |
|
|
(301 |
) |
|
|
(774 |
) |
Restaurant-level operating profit
(loss) |
|
$ |
4,592 |
|
|
$ |
(2,299 |
) |
|
$ |
3,169 |
|
|
$ |
(733 |
) |
_______________________________
(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) Litigation accrual includes
an accrual related to a litigation claim. The income tax impact of
this adjustment was immaterial.
Kura Sushi USA (NASDAQ:KRUS)
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