Kura Sushi USA, Inc. (“Kura Sushi” or the “Company”) (NASDAQ:
KRUS), a technology-enabled Japanese restaurant concept, today
reported fiscal third quarter 2022 financial results for the period
ended May 31, 2022.
Fiscal Third Quarter 2022
Highlights
- Total sales were $38.0 million, compared to $18.5 million in
the third quarter of 2021;
- Comparable restaurant sales increased 65% for the third quarter
of 2022 as compared to the third quarter of 2021;
- Operating income was $0.5 million, compared to operating income
of $0.9 million in the third quarter of 2021;
- Net income was $0.5 million, or $0.05 per diluted share,
compared to net income of $0.8 million, or $0.09 per diluted share,
in the third quarter of 2021;
- Adjusted net income* was $0.5 million, or $0.05 per diluted
share, compared to an adjusted net loss* of $4.5 million or ($0.54)
per diluted share, in the third quarter of 2021;
- Restaurant-level operating profit* was $8.5 million;
- Adjusted EBITDA* was $3.2 million; and
- One new restaurant opened during the fiscal third quarter of
2022.
* Adjusted net income (loss), Restaurant-level
operating profit 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, “The strong sales momentum from the
first half of our fiscal year continued into the third quarter,
exemplified by comparable sales growth of 28.3% versus our
pre-pandemic fiscal 2019 results and another record sales quarter
for the company. Moreover, our team has done a tremendous job
navigating on-going inflationary pressures, resulting in a solid
improvement in our restaurant level profitability, both on a dollar
and margin basis as compared to our pre-COVID period."
Uba added, “We continued to make progress toward
growing our restaurant base, opening a new restaurant in Watertown,
MA, another new market for Kura Sushi. To date, we’ve opened five
new restaurants in fiscal 2022, and expect to open at least eight
for the full fiscal year. Guest reception for our new openings has
continued to exceed our initial expectations. We believe each of
our successful new markets is a point of proof for the national
portability of our brand, and that our growth prospects are
stronger than ever.”
Review of Fiscal Third Quarter 2022
Financial Results
Total sales were $38.0 million compared to $18.5
million in the third quarter of 2021. Comparable restaurant sales
increased 65% for the third quarter of 2022 as compared to the
third quarter of 2021.
Food and beverage costs as a percentage of sales
were 29.7% compared to 31.7% in the third quarter of 2021. The
decrease is primarily due to an increase in menu prices, partially
offset by food cost inflation, as well as higher inventory spoilage
in the prior year.
Labor and related costs as a percentage of sales
increased to 31.0% from 8.9% in the third quarter of 2021. The
increase in cost as a percentage of sales was primarily driven by
$5.8 million in employee retention credits recognized under the
CARES Act extension during the third quarter of 2021. Excluding the
impact of the $5.8 million employee retention credit and $0.7
million in retention and new hire bonuses, the labor and related
costs as a percentage of sales for the third quarter of 2021 would
have been 36.6%, primarily due to minimum staffing required to
operate the restaurants at significantly reduced operating
capacities in the prior year.
Occupancy and related expenses were $2.7 million
compared to $1.9 million in the third quarter of 2021. The increase
is primarily due to six new restaurants opened since the third
quarter of 2021, as well as incremental pre-opening lease
expense.
Other costs as a percentage of sales decreased
to 11.5% compared to 14.7% in the third quarter of 2021. The
decrease was primarily due to higher sales leverage.
General and administrative expenses were $5.9
million compared to $4.3 million in the third quarter of 2021. This
increase was primarily due to an increase of $1.7 million in
compensation-related expenses due to an increase in headcount, a
$0.2 million increase in travel expenses and a $0.2 million
increase in other costs, as well as $0.5 million in employee
retention credits recognized under the CARES Act extension in the
third quarter of 2021, offset by a $1.0 million litigation expense
in the third quarter of 2021. As a percentage of sales, general and
administrative expenses decreased to 15.5% from 23.2% in the third
quarter of 2021, primarily driven by leverage benefits from the
increase in sales.
Operating income was $0.5 million compared to
operating income of $0.9 million in the third quarter of 2021.
Income tax benefit was $2 thousand compared to
income tax expense of $30 thousand in the third quarter of
2021.
Net income was $0.5 million, or $0.05 per
diluted share, compared to net income of $0.8 million, or $0.09 per
diluted share, in the third quarter of 2021.
Adjusted net income* was $0.5 million, or $0.05
per diluted share, compared to adjusted net loss* of $4.5 million,
or ($0.54) per diluted share, in the third quarter of 2021.
Restaurant-level operating profit* was $8.5
million compared to restaurant-level operating profit* of $1.1
million in the third quarter of 2021.
Adjusted EBITDA* was $3.2 million compared to
($2.6) million in the third quarter of 2021.
Restaurant Development
During the fiscal third quarter of 2022, the
Company opened one new restaurant in Watertown, Massachusetts.
Fiscal Year 2022 Outlook
For the full fiscal year of 2022, the Company
updates the following annual guidance:
- Total sales between $137 million and $142 million;
- General and administrative expenses as a percentage of sales of
approximately 16.5%; and
- 8 new restaurants, with average net capital expenditures per
unit of approximately $2.2 million.
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 Benjamin Porten, VP
Investor Relations & Business Development.
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 13731075. The
replay will be available until July 14, 2022. 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 37 locations across 11 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 500 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 credits, 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 credits, 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 credits; 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 credits 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. 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. Performance in
comparable restaurant sales represents the percent change in sales
from the same period in the prior year for the comparable
restaurant base.
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 financial 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 and certain other expenses excluded from
such measures. In addition, you should be aware when evaluating
these non-GAAP financial 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 financial measures may not be
comparable to other similarly titled measures computed by other
companies, because all companies may not calculate these non-GAAP
financial measures in the same fashion. Because of these
limitations, these non-GAAP financial 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 financial measures on a supplemental
basis.
Forward-Looking Statements
Except for historical information contained
herein, the statements in this press release or otherwise made by
the Company’s 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 pandemic and its continued impact on the
Company’s ability to operate; the Company’s ability to successfully
maintain increases in our comparable restaurant sales; the
Company’s ability to successfully execute our growth strategy and
open new restaurants that are profitable; the Company’s ability to
expand in existing and new markets; the Company’s projected growth
in the number of its restaurants; macroeconomic conditions and
other economic factors; the Company’s ability to compete with many
other restaurants; the Company’s reliance on vendors, suppliers and
distributors, including its parent company Kura Sushi, Inc.;
concerns regarding food safety and foodborne illness; changes in
consumer preferences and the level of acceptance of the Company’s
restaurant concept in new markets; minimum wage increases and
mandated employee benefits that could cause a significant increase
in labor costs; the failure of the Company’s automated equipment or
information technology systems or the breach of its network
security; the loss of key members of the Company’s management team;
the impact of governmental laws and regulations; volatility in the
price of the Company’s common stock; and other risks and
uncertainties as described in the Company’s 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 May 31, |
|
|
Nine Months Ended May 31, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Sales |
|
$ |
37,969 |
|
|
$ |
18,471 |
|
|
$ |
99,091 |
|
|
$ |
36,967 |
|
Restaurant operating
costs: |
|
|
|
|
|
|
|
|
|
|
|
|
Food and beverage costs |
|
|
11,282 |
|
|
|
5,850 |
|
|
|
29,615 |
|
|
|
12,078 |
|
Labor and related costs |
|
|
11,788 |
|
|
|
1,649 |
|
|
|
31,840 |
|
|
|
8,070 |
|
Occupancy and related expenses |
|
|
2,693 |
|
|
|
1,885 |
|
|
|
7,195 |
|
|
|
5,202 |
|
Depreciation and amortization expenses |
|
|
1,376 |
|
|
|
1,086 |
|
|
|
3,814 |
|
|
|
3,015 |
|
Other costs |
|
|
4,372 |
|
|
|
2,713 |
|
|
|
12,326 |
|
|
|
6,843 |
|
Total restaurant operating costs |
|
|
31,511 |
|
|
|
13,183 |
|
|
|
84,790 |
|
|
|
35,208 |
|
General and administrative
expenses |
|
|
5,900 |
|
|
|
4,292 |
|
|
|
16,714 |
|
|
|
10,687 |
|
Depreciation and amortization
expenses |
|
|
85 |
|
|
|
130 |
|
|
|
256 |
|
|
|
299 |
|
Total operating expenses |
|
|
37,496 |
|
|
|
17,605 |
|
|
|
101,760 |
|
|
|
46,194 |
|
Operating income (loss) |
|
|
473 |
|
|
|
866 |
|
|
|
(2,669 |
) |
|
|
(9,227 |
) |
Other expense (income): |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
23 |
|
|
|
67 |
|
|
|
70 |
|
|
|
154 |
|
Interest income |
|
|
(25 |
) |
|
|
(1 |
) |
|
|
(75 |
) |
|
|
(8 |
) |
Income (loss) before income
taxes |
|
|
475 |
|
|
|
800 |
|
|
|
(2,664 |
) |
|
|
(9,373 |
) |
Income tax (benefit)
expense |
|
|
(2 |
) |
|
|
30 |
|
|
|
13 |
|
|
|
88 |
|
Net income (loss) |
|
$ |
477 |
|
|
$ |
770 |
|
|
$ |
(2,677 |
) |
|
$ |
(9,461 |
) |
Net income (loss) per Class A
and Class B shares |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.05 |
|
|
$ |
0.09 |
|
|
$ |
(0.28 |
) |
|
$ |
(1.13 |
) |
Diluted |
|
$ |
0.05 |
|
|
$ |
0.09 |
|
|
$ |
(0.28 |
) |
|
$ |
(1.13 |
) |
Weighted average Class A and
Class B shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
9,722 |
|
|
|
8,383 |
|
|
|
9,714 |
|
|
|
8,381 |
|
Diluted |
|
|
10,069 |
|
|
|
8,663 |
|
|
|
9,714 |
|
|
|
8,381 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kura Sushi USA, Inc.Selected Balance Sheet
Data and Selected Operating Data(in thousands,
except restaurants and percentages; unaudited) |
|
|
|
May 31, 2022 |
|
|
August 31, 2021 |
|
Selected Balance Sheet
Data: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
35,968 |
|
|
$ |
40,430 |
|
Total assets |
|
$ |
195,525 |
|
|
$ |
177,669 |
|
Total liabilities |
|
$ |
105,565 |
|
|
$ |
86,825 |
|
Total stockholders’ equity |
|
$ |
89,960 |
|
|
$ |
90,844 |
|
|
|
Three Months Ended May 31, |
|
|
Nine Months Ended May 31, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Selected Operating Data: |
|
|
|
|
|
|
|
|
|
|
|
|
Restaurants at the end of period |
|
|
37 |
|
|
|
31 |
|
|
|
37 |
|
|
|
31 |
|
Comparable restaurant sales performance |
|
|
65.3 |
% |
|
|
455.6 |
% |
|
|
118.7 |
% |
|
|
(20.5 |
)% |
EBITDA |
|
$ |
1,934 |
|
|
$ |
2,082 |
|
|
$ |
1,401 |
|
|
$ |
(5,913 |
) |
Adjusted
EBITDA |
|
$ |
3,183 |
|
|
$ |
(2,592 |
) |
|
$ |
4,361 |
|
|
$ |
(11,533 |
) |
Adjusted EBITDA margin |
|
|
8.4 |
% |
|
|
(14.0 |
)% |
|
|
4.4 |
% |
|
|
(31.3 |
)% |
Operating income (loss) |
|
$ |
473 |
|
|
$ |
866 |
|
|
$ |
(2,669 |
) |
|
$ |
(9,227 |
) |
Operating income (loss) margin |
|
|
1.2 |
% |
|
|
4.7 |
% |
|
|
(2.7 |
)% |
|
|
(25.0 |
)% |
Restaurant-level operating profit (loss) |
|
$ |
8,543 |
|
|
$ |
1,064 |
|
|
$ |
19,919 |
|
|
$ |
(1,423 |
) |
Restaurant-level operating profit (loss) margin |
|
|
22.5 |
% |
|
|
5.8 |
% |
|
|
20.1 |
% |
|
|
(3.8 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kura Sushi USA, Inc.Reconciliation of Net
Income (Loss) and Net Income (Loss) Per Diluted Share toAdjusted
Net Income (Loss) and Adjusted Net Income (Loss) Per Diluted
Share(in thousands, except income (loss) per share amounts;
unaudited) |
|
|
|
Three Months Ended May 31, |
|
|
Nine Months Ended May 31, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Net income (loss) |
|
$ |
477 |
|
|
$ |
770 |
|
|
$ |
(2,677 |
) |
|
$ |
(9,461 |
) |
Executive transition costs(4) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
390 |
|
Employee retention credits(5) |
|
|
— |
|
|
|
(6,296 |
) |
|
|
— |
|
|
|
(8,931 |
) |
Litigation accrual(6) |
|
|
— |
|
|
|
1,000 |
|
|
|
— |
|
|
|
1,000 |
|
Adjusted net income
(loss) |
|
$ |
477 |
|
|
$ |
(4,526 |
) |
|
$ |
(2,677 |
) |
|
$ |
(17,002 |
) |
Net income (loss) per Class A
and Class B diluted shares |
|
$ |
0.05 |
|
|
$ |
0.09 |
|
|
$ |
(0.28 |
) |
|
$ |
(1.13 |
) |
Executive transition costs(4) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.05 |
|
Employee retention credits(5) |
|
|
— |
|
|
|
(0.75 |
) |
|
|
— |
|
|
|
(1.07 |
) |
Litigation accrual(6) |
|
|
— |
|
|
|
0.12 |
|
|
|
— |
|
|
|
0.12 |
|
Adjusted net income (loss) per
Class A and Class B diluted shares |
|
$ |
0.05 |
|
|
$ |
(0.54 |
) |
|
$ |
(0.28 |
) |
|
$ |
(2.03 |
) |
Weighted average Class A and
Class B shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted shares |
|
|
10,069 |
|
|
|
8,663 |
|
|
|
9,714 |
|
|
|
8,381 |
|
Adjusted diluted shares |
|
|
9,722 |
|
|
|
8,383 |
|
|
|
9,714 |
|
|
|
8,381 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kura Sushi USA, Inc.Reconciliation of Net
Income (Loss) to EBITDA and Adjusted EBITDA(in
thousands; unaudited) |
|
|
|
|
|
|
|
|
|
Three Months Ended May 31, |
|
|
Nine Months Ended May 31, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Net income (loss) |
|
$ |
477 |
|
|
$ |
770 |
|
|
$ |
(2,677 |
) |
|
$ |
(9,461 |
) |
Interest (income) expense, net |
|
|
(2 |
) |
|
|
66 |
|
|
|
(5 |
) |
|
|
146 |
|
Income tax (benefit) expense |
|
|
(2 |
) |
|
|
30 |
|
|
|
13 |
|
|
|
88 |
|
Depreciation and amortization expenses |
|
|
1,461 |
|
|
|
1,216 |
|
|
|
4,070 |
|
|
|
3,314 |
|
EBITDA |
|
|
1,934 |
|
|
|
2,082 |
|
|
|
1,401 |
|
|
|
(5,913 |
) |
Stock-based compensation expense(1) |
|
|
732 |
|
|
|
391 |
|
|
|
1,771 |
|
|
|
966 |
|
Non-cash lease expense(2) |
|
|
517 |
|
|
|
231 |
|
|
|
1,189 |
|
|
|
935 |
|
Executive transition costs(4) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
390 |
|
Employee retention credits(5) |
|
|
— |
|
|
|
(6,296 |
) |
|
|
— |
|
|
|
(8,931 |
) |
Litigation accrual(6) |
|
|
— |
|
|
|
1,000 |
|
|
|
— |
|
|
|
1,000 |
|
Adjusted EBITDA |
|
$ |
3,183 |
|
|
$ |
(2,592 |
) |
|
$ |
4,361 |
|
|
$ |
(11,553 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kura Sushi USA, Inc.Reconciliation of
Operating Income (Loss) to Restaurant-level Operating Profit
(Loss)(in thousands; unaudited) |
|
|
|
|
|
|
|
|
|
Three Months Ended May 31, |
|
|
Nine Months Ended May 31, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Operating income (loss) |
|
$ |
473 |
|
|
$ |
866 |
|
|
$ |
(2,669 |
) |
|
$ |
(9,227 |
) |
Depreciation and amortization expenses |
|
|
1,461 |
|
|
|
1,216 |
|
|
|
4,070 |
|
|
|
3,314 |
|
Stock-based compensation expense(1) |
|
|
732 |
|
|
|
391 |
|
|
|
1,771 |
|
|
|
966 |
|
Pre-opening costs(3) |
|
|
104 |
|
|
|
271 |
|
|
|
420 |
|
|
|
832 |
|
Non-cash lease expense(2) |
|
|
517 |
|
|
|
231 |
|
|
|
1,189 |
|
|
|
935 |
|
Employee retention credits(5) |
|
|
— |
|
|
|
(6,296 |
) |
|
|
— |
|
|
|
(8,931 |
) |
General and administrative expenses |
|
|
5,900 |
|
|
|
4,292 |
|
|
|
16,714 |
|
|
|
10,687 |
|
Corporate-level stock-based compensation and employeeretention
credits included in general and administrativeexpenses |
|
|
(644 |
) |
|
|
93 |
|
|
|
(1,576 |
) |
|
|
1 |
|
Restaurant-level operating profit (loss) |
|
$ |
8,543 |
|
|
$ |
1,064 |
|
|
$ |
19,919 |
|
|
$ |
(1,423 |
) |
_______________________ |
(1) |
Stock-based compensation expense includes non-cash stock-based
compensation, which is comprised of restaurant-level stock-based
compensation included in other costs 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 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 restaurants, and other related pre-opening
costs. |
(4) |
Executive transition costs
include severance and search fees associated with the transition of
the Company’s Chief Financial Officer. The income tax impact of
this adjustment was immaterial. |
(5) |
Employee retention credits
includes refundable credits recognized under the CARES Act
extension. The income tax impact of this adjustment was
immaterial. |
(6) |
Litigation accrual consists of
an expense related to a litigation claim. The income tax
impact of this adjustment was immaterial. |
Kura Sushi USA (NASDAQ:KRUS)
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