USA financial news

Kura Sushi USA Broadcasts Fiscal Third Quarter 2021 Monetary Outcomes

IRVINE, Calif., July 13, 2021 (GLOBE NEWSWIRE) — Kura Sushi USA, Inc. (“Kura Sushi” or the “Firm”) (NASDAQ: KRUS), a technology-enabled Japanese restaurant idea, at present supplied a COVID-19 enterprise replace and reported fiscal third quarter 2021 monetary outcomes for the interval ended Might 31, 2021.

COVID-19 Enterprise Replace

As of Might 31 2021, the Firm had all 31 of its eating places open with indoor eating capacities of fifty% to 100%, relying on native necessities. As of at present, the Firm has all 32 eating places working at an indoor capability of 100%, together with one new restaurant opened within the fiscal fourth quarter.

Throughout the third quarter of 2021, the Firm borrowed $5.0 million on its revolving line of credit score and as of Might 31, 2021, the Firm had money and money equivalents of $4.7 million and $17.0 million of debt. As permitted underneath the Coronavirus Help, Aid, and Financial Safety Act (the “CARES Act”), the Firm acknowledged a $6.3 million worker retention credit score in the course of the fiscal third quarter ended Might 31, 2021.

Fiscal Third Quarter 2021 Highlights

  • Complete gross sales had been $18.5 million in comparison with $2.8 million within the third quarter of 2020;

  • Working earnings was $0.9 million, in comparison with an working lack of $8.0 million within the third quarter of 2020;

  • Internet earnings was $0.8 million, or $0.09 per diluted share, in comparison with web lack of $9.2 million, or ($1.10) per diluted share, within the third quarter of 2020.

  • Adjusted web loss* was $4.5 million, or ($0.54) per diluted share, in comparison with an adjusted web loss* of $10.7 million or ($1.29) per diluted share, within the third quarter of 2020;

  • Restaurant-level working revenue* was $1.1 million;

  • Adjusted EBITDA* was ($2.6) million; and

  • One new restaurant opened in the course of the third quarter of 2021.

* Adjusted web loss, Restaurant-level working revenue (loss) and Adjusted EBITDA are non-GAAP measures and are outlined under underneath “Key Monetary Definitions”. Please see the reconciliation of non-GAAP measures accompanying this launch. See additionally “Non-GAAP Monetary Measures” under.

Hajime Uba, President and Chief Govt Officer of Kura Sushi, acknowledged, “We’re thrilled with the continued restoration of our eating places in the course of the fiscal third quarter, characterised by significant enchancment in gross sales and restaurant-level profitability, as we slowly elevated our eating room capability in accordance with the state and native laws. Furthermore, our gross sales restoration has continued to date into fiscal fourth quarter with the re-opening of California in mid-June. I’m happy to say that at present, all of our eating places are working at full capability and our workforce members are able to capitalize on our friends’ pent-up demand for the total Kura expertise.”

Uba added, “Fiscal 2021 has been our busiest, and probably our best improvement yr ever as we efficiently opened seven new eating places and entered 5 new markets. This was actually a powerful feat by our improvement workforce given the difficult macro setting. As we glance into fiscal 2022, we’re benefitting from new actual property alternatives created by the pandemic, and when coupled with our rigorous web site choice course of, we imagine we now have probably the most thrilling pipeline of latest eating places since we entered the U.S. Fiscal 2021 was a file improvement yr for Kura, and we count on to take care of this development momentum in fiscal 2022.”

Overview of Fiscal Third Quarter 2021 Monetary Outcomes

Complete gross sales had been $18.5 million in comparison with $2.8 million within the third quarter of 2020. Comparable restaurant gross sales elevated 456% for the third quarter of 2021. Comparable restaurant gross sales decreased 19% when in comparison with the third quarter of 2019.

Meals and beverage prices as a share of gross sales was 31.7% in comparison with 38.0% within the third quarter of 2020. The lower is primarily a results of decrease stock spoilage.

Labor and associated prices as a share of gross sales decreased to eight.9% from 126.3% within the third quarter of 2020. Within the third quarter of 2021, a $5.8 million worker retention credit score was acknowledged underneath the CARES Act and extension thereof in comparison with $1.6 million within the third quarter of 2020. Excluding the $5.8 million worker retention credit score and $0.7 million in retention and new rent bonuses, labor and associated prices would have been 36.6% within the third quarter of 2021. The lower as a share of gross sales was primarily as a result of prices of retaining sure restaurant staff when there have been no gross sales in the course of the non permanent restaurant closures within the third quarter of 2020.

Occupancy and associated bills had been $1.9 million in comparison with $1.6 million within the third quarter of 2020. The rise is primarily as a consequence of six new eating places opened because the third quarter of 2020.

Different prices as a share of gross sales decreased to 14.7% in comparison with 34.3% within the third quarter of 2020. The lower was primarily as a result of mounted value deleverage on account of a lower in gross sales within the third quarter of 2020.

Normal and administrative bills had been $4.3 million in comparison with $2.9 million within the third quarter of 2020. Within the third quarter of 2021, a $0.5 million worker retention credit score was acknowledged underneath the CARES Act and extension thereof. Excluding the impression of the $0.5 million worker retention credit score and a $1.0 million litigation accrual, common and administrative bills would have been $3.8 million. This enhance was primarily as a consequence of further compensation-related bills. As a share of gross sales, common and administrative bills decreased to 23.2% in comparison with 102.6% within the third quarter of 2020.

Working earnings was $0.9 million, in comparison with an working lack of $8.0 million within the third quarter of 2020.

Revenue tax expense was $30 thousand in comparison with earnings tax expense of $1.2 million within the third quarter of 2020. The third quarter of 2020 included a $1.1 million valuation allowance on our deferred tax property.

Internet earnings was $0.8 million, or $0.09 per diluted share, in comparison with web lack of $9.2 million, or ($1.10) per diluted share, within the third quarter of 2020.

Adjusted web loss* was $4.5 million, or ($0.54) per diluted share, in comparison with an adjusted web loss* of $10.7 million, or ($1.29) per diluted share, within the third quarter of 2020.

Restaurant-level working revenue* was $1.1 million, in comparison with restaurant-level working loss* of $5.3 million within the third quarter of 2020.

Adjusted EBITDA* was ($2.6) million, in comparison with ($8.2) million within the third quarter of 2020.

Restaurant Improvement

Throughout the third quarter of fiscal 2021, one new restaurant was opened in Sherman Oaks, CA. Subsequent to Might 31, 2021, the Firm opened one new restaurant in Bellevue, WA.

Convention Name

A convention name and webcast to debate Kura Sushi’s monetary outcomes is scheduled for five:00 p.m. ET at present. Internet hosting the convention name and webcast will probably be Hajime “Jimmy” Uba, President and Chief Govt Officer and Steven Benrubi, Chief Monetary Officer.

events could take heed to the convention name by way of phone by dialing 201-689-8471. A phone replay will probably be obtainable shortly after the decision has concluded and may be accessed by dialing 412-317-6671; the passcode is 13720825. The replay will probably be obtainable till July 20, 2021. The webcast will probably be obtainable at www.kurasushi.com underneath the investor relations part and will probably be archived on the location shortly after the decision has concluded.

About Kura Sushi USA, Inc.

Kura Sushi USA, Inc. is a technology-enabled Japanese restaurant idea with 32 areas in 9 states and Washington DC. The Firm presents friends a particular eating expertise constructed on genuine Japanese delicacies and an interesting revolving sushi service mannequin. Kura Sushi USA, Inc. was established in 2008 as a subsidiary of Kura Sushi, Inc., a Japan-based revolving sushi chain with over 480 eating places and 35 years of brand name historical past. For extra info, please go to www.kurasushi.com.

Key Monetary Definitions

Adjusted Internet Revenue (Loss), a non-GAAP measure, is outlined as web earnings (loss) earlier than sure objects, equivalent to worker retention credit score, litigation accrual and sure govt transition prices, that the Firm believes usually are not indicative of its core working outcomes. Adjusted earnings (loss) per diluted share represents adjusted web earnings (loss) divided by the variety of diluted shares.

EBITDA, a non-GAAP measure, is outlined as web earnings (loss) earlier than curiosity, earnings taxes and depreciation and amortization bills.

Adjusted EBITDA, a non-GAAP measure, is outlined as EBITDA plus stock-based compensation expense, non-cash lease expense and asset disposals, closure prices and restaurant impairments, in addition to sure objects, equivalent to worker retention credit score, litigation accrual and sure govt transition prices, that the Firm believes usually are not indicative of its core working outcomes. Adjusted EBITDA margin is outlined as adjusted EBITDA divided by gross sales.

Restaurant-level Working Revenue (Loss), a non-GAAP measure, is outlined as working earnings (loss) plus depreciation and amortization bills; stock-based compensation expense; worker retention credit score; pre-opening prices and common and administrative bills that are thought of regular, recurring, money working bills and are important to supporting the event and operations of eating places; non-cash lease expense; and asset disposals, closure prices and restaurant impairments; much less corporate-level stock-based compensation expense and worker retention credit score acknowledged inside common and administrative bills. Restaurant-level working revenue (loss) margin is outlined as restaurant-level working revenue (loss) divided by gross sales.

Comparable Restaurant Gross sales Efficiency refers back to the change in year-over-year gross sales for the comparable restaurant base. The Firm consists of eating places within the comparable restaurant base which were in operation for a minimum of 18 months previous to the beginning of the accounting interval offered as a consequence of new eating places experiencing a interval of upper gross sales upon opening, together with these quickly closed for renovations in the course of the yr. For eating places that had been quickly closed for renovations in the course of the yr, the Firm makes fractional changes to gross sales such that gross sales are annualized within the related interval. Efficiency in comparable restaurant gross sales represents the % change in gross sales from the identical interval within the prior yr for the comparable restaurant base. The Firm didn’t make any changes for the non permanent restaurant closures as a consequence of COVID-19 in the course of the three and 9 months ended Might 31, 2021 and Might 31, 2020.

Non-GAAP Monetary Measures

To complement the condensed monetary statements offered in accordance with U.S. typically accepted accounting rules (“GAAP”), the Firm presents sure monetary measures, equivalent to adjusted web earnings (loss), EBITDA, adjusted EBITDA, adjusted EBITDA margin, restaurant-level working revenue (loss) and restaurant-level working revenue (loss) margin (“non-GAAP measures”) that aren’t acknowledged underneath GAAP. These non-GAAP measures are meant as supplemental measures of its efficiency which are neither required by, nor offered in accordance with, GAAP. The Firm is presenting these non-GAAP measures as a result of the Firm believes that they supply helpful info to administration and traders concerning sure monetary and enterprise traits referring to its monetary situation and working outcomes. These measures additionally could not present an entire understanding of the working outcomes of the Firm as an entire and such measures ought to be reviewed at the side of its GAAP monetary outcomes. Moreover, the Firm presents restaurant-level working revenue (loss) as a result of it excludes the impression of common and administrative bills which aren’t incurred on the restaurant-level. The Firm additionally makes use of restaurant-level working revenue (loss) to measure working efficiency and returns from opening new eating places.

The Firm believes that using these non-GAAP measures supplies an extra software for traders to make use of in evaluating ongoing working outcomes and traits and in evaluating the Firm’s monetary measures with these of comparable corporations, which can current comparable non-GAAP monetary measures to traders. Nonetheless, you ought to be conscious that restaurant-level working revenue (loss) and restaurant-level working revenue (loss) margin are monetary measures which aren’t indicative of general outcomes for the Firm, and restaurant-level working revenue (loss) and restaurant-level working revenue (loss) margin don’t accrue on to the good thing about stockholders due to corporate-level bills excluded from such measures. As well as, you ought to be conscious when evaluating these non-GAAP measures that sooner or later the Firm could incur bills just like these excluded when calculating these measures. The Firm’s presentation of those measures shouldn’t be construed as an inference that its future outcomes will probably be unaffected by uncommon or non-recurring objects. The Firm’s computation of those non-GAAP measures is probably not corresponding to different equally titled measures computed by different corporations, as a result of all corporations could not calculate these non-GAAP measures in the identical style. Due to these limitations, these non-GAAP measures shouldn’t be thought of in isolation or as an alternative to efficiency measures calculated in accordance with GAAP. The Firm compensates for these limitations by relying totally on its GAAP outcomes and utilizing these non-GAAP measures on a supplemental foundation.

Ahead-Trying Statements

Aside from historic info contained herein, the statements on this press launch or in any other case made by our administration in reference to the subject material of this press launch are forward-looking statements (as such time period is outlined within the Non-public Securities Litigation Reform Act of 1995) and contain dangers and uncertainties and are topic to alter primarily based on numerous essential components. This press launch consists of forward-looking statements which are primarily based on administration’s present estimates or expectations of future occasions or future outcomes. These statements usually are not historic in nature and may typically be recognized by such phrases as “goal,” “could,” “would possibly,” “will,” “goal,” “intend,” “ought to,” “may,” “can,” “would,” “count on,” “imagine,” “design,” “estimate,” “proceed,” “predict,” “potential,” “plan,” “anticipate” or the detrimental of those phrases, and comparable expressions. Administration’s expectations and assumptions concerning future outcomes are topic to dangers, uncertainties and different components that would trigger precise outcomes to vary materially from the anticipated outcomes or different expectations expressed within the forward-looking statements included on this press launch. These dangers and uncertainties embrace however usually are not restricted to: dangers associated to the COVID-19 outbreak; our capacity to efficiently resume and preserve will increase in our comparable restaurant gross sales; our capacity to efficiently execute our development technique and open new eating places which are worthwhile; our capacity to develop in present and new markets; our projected development within the variety of our eating places; macroeconomic circumstances and different financial components; our capacity to compete with many different eating places; our reliance on distributors, suppliers and distributors, together with our guardian firm Kura Sushi, Inc.; issues concerning meals security and foodborne sickness; modifications in client preferences and the extent of acceptance of our restaurant idea in new markets; minimal wage will increase and mandated worker advantages that would trigger a major enhance in our labor prices; the failure of our automated gear or info expertise programs or the breach of our community safety; the lack of key members of our administration workforce; the impression of governmental legal guidelines and laws; volatility within the value of our widespread inventory; and different dangers and uncertainties as described in our filings with the Securities and Trade Fee (“SEC”). These and different components that would trigger outcomes to vary materially from these described within the forward-looking statements contained on this press launch may be discovered within the Firm’s different filings with the SEC. Undue reliance shouldn’t be positioned on forward-looking statements, that are solely present as of the date they’re made. The Firm assumes no obligation to replace or revise its forward-looking statements, besides as could also be required by relevant legislation.

Investor Relations Contact:
Fitzhugh Taylor or Steven Boediarto
(657) 333-4010
investor@kurausa.com

Kura Sushi USA, Inc.
Condensed Statements of Operations
(in 1000’s, besides per share quantities; unaudited)

Three Months Ended
Might 31,

9 Months Ended
Might 31,

2021

2020

2021

2020

Gross sales

$

18,471

$

2,812

$

36,967

$

39,640

Restaurant working prices:

Meals and beverage prices

5,850

1,069

12,078

12,868

Labor and associated prices

1,649

3,551

8,070

15,336

Occupancy and associated bills

1,885

1,589

5,202

4,665

Depreciation and amortization bills

1,086

743

3,015

2,118

Different prices

2,713

964

6,843

5,221

Complete restaurant working prices

13,183

7,916

35,208

40,208

Normal and administrative bills

4,292

2,885

10,687

8,994

Depreciation and amortization bills

130

39

299

97

Complete working bills

17,605

10,840

46,194

49,299

Working earnings (loss)

866

(8,028

)

(9,227

)

(9,659

)

Different expense (earnings):

Curiosity expense

67

36

154

103

Curiosity earnings

(1

)

(65

)

(8

)

(432

)

Revenue (loss) earlier than earnings taxes

800

(7,999

)

(9,373

)

(9,330

)

Revenue tax expense

30

1,153

88

1,179

Internet earnings (loss)

$

770

$

(9,152

)

$

(9,461

)

$

(10,509

)

Internet earnings (loss) per Class A and Class B shares

Fundamental

$

0.09

$

(1.10

)

$

(1.13

)

$

(1.26

)

Diluted

$

0.09

$

(1.10

)

$

(1.13

)

$

(1.26

)

Weighted common Class A and Class B shares excellent

Fundamental

8,383

8,341

8,381

8,337

Diluted

8,663

8,341

8,381

8,337

Kura Sushi USA, Inc
Chosen Steadiness Sheet Information and Chosen Working Information
(in 1000’s; besides eating places and percentages; unaudited)

Might 31,
2021

August 31,
2020

Chosen Steadiness Sheet Information:

Money and money equivalents

$

4,701

$

9,259

Complete property

$

130,434

$

118,379

Mortgage from affiliate

$

17,000

Complete liabilities

$

92,777

$

72,666

Complete stockholders’ fairness

$

37,657

$

45,713

Three Months Ended
Might 31,

9 Months Ended
Might 31,

2021

2020

2021

2020

Chosen Working Information:

Eating places on the finish of interval

31

25

31

25

Comparable restaurant gross sales efficiency

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

%

Working earnings (loss)

$

866

$

(8,028

)

$

(9,227

)

$

(9,659

)

Working revenue (loss) margin

4.7

%

(285.5

)%

(25.0

)%

(24.4

)%

Restaurant-level working revenue (loss)

$

1,064

$

(5,333

)

$

(1,423

)

$

1,566

Restaurant-level working revenue (loss) margin

5.8

%

(189.7

)%

(3.8

)%

4.0

%

Reconciliation of Internet Revenue (Loss) and Revenue (Loss) Per Diluted Share to
Adjusted Internet Loss and Adjusted Loss Per Diluted Share
(in 1000’s, besides earnings (loss) per share quantities; unaudited)

Three Months Ended
Might 31,

9 Months Ended
Might 31,

2021

2020

2021

2020

Internet earnings (loss)

$

770

$

(9,152

)

$

(9,461

)

$

(10,509

)

Govt transition prices(4)

390

Worker retention credit score(5)

(6,296

)

(1,580

)

(8,931

)

(1,580

)

Litigation accrual(6)

1,000

1,000

Adjusted web loss

$

(4,526

)

$

(10,732

)

$

(17,002

)

$

(12,089

)

Internet earnings (loss) per Class A and Class B shares

Internet earnings (loss) per diluted share

$

0.09

$

(1.10

)

$

(1.13

)

$

(1.26

)

Govt transition prices(4)

0.05

Worker retention credit score(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 common Class A and Class B shares excellent

Diluted shares

8,663

8,341

8,381

8,337

Adjusted diluted shares

8,383

8,341

8,381

8,337

Kura Sushi USA, Inc
Reconciliation of Internet Revenue (Loss) to EBITDA and Adjusted EBITDA
(in 1000’s; unaudited)

Three Months Ended
Might 31,

9 Months Ended
Might 31,

2021

2020

2021

2020

Internet earnings (loss)

$

770

$

(9,152

)

$

(9,461

)

$

(10,509

)

Curiosity expense (earnings), web

66

(29

)

146

(329

)

Revenue tax expense

30

1,153

88

1,179

Depreciation and amortization bills

1,216

782

3,314

2,215

EBITDA

2,082

(7,246

)

(5,913

)

(7,444

)

Inventory-based compensation expense(1)

391

248

966

580

Non-cash lease expense(2)

231

353

935

857

Govt transition prices(4)

390

Worker retention credit score(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, Inc
Reconciliation of Working Revenue (Loss) to Restaurant-level Working Revenue (Loss)
(in 1000’s; unaudited)

Three Months Ended
Might 31,

9 Months Ended
Might 31,

2021

2020

2021

2020

Working earnings (loss)

$

866

$

(8,028

)

$

(9,227

)

$

(9,659

)

Depreciation and amortization bills

1,216

782

3,314

2,215

Inventory-based compensation expense(1)

391

248

966

580

Pre-opening prices(3)

271

232

832

680

Non-cash lease expense(2)

231

353

935

857

Worker retention credit score(5)

(6,296

)

(1,580

)

(8,931

)

(1,580

)

Normal and administrative bills

4,292

2,885

10,687

8,994

Company-level stock-based compensation and worker retention credit score included generally and administrative bills

93

(225

)

1

(521

)

Restaurant-level working revenue (loss)

$

1,064

$

(5,333

)

$

(1,423

)

$

1,566

(1) Inventory-based compensation expense consists of non-cash stock-based compensation, which is comprised of restaurant-level stock-based compensation included in different prices within the statements of operations and corporate-level stock-based compensation included generally and administrative bills within the statements of operations.

(2) Non-cash lease expense consists of lease expense from the date of possession of our eating places that didn’t require money outlay within the respective durations.

(3) Pre-opening prices encompass labor prices and journey bills for brand new staff and trainers in the course of the coaching interval, recruitment charges, authorized charges, cash-based lease bills incurred between the date of possession and opening day of our eating places, and different associated pre-opening prices.

(4) Govt transition prices embrace severance and search charges related to the transition of our Chief Monetary Officer. The earnings tax impression of this adjustment was immaterial.

(5) Worker retention credit score features a refundable credit score acknowledged underneath the CARES Act and extension thereof. The earnings tax impression of this adjustment was immaterial.

(6) Accrual associated to a litigation declare. The earnings tax impression of this adjustment was immaterial.

Related posts

Aegon Asset Administration appoints Head of Inclusion & Range

admin

U.S. Intelligence Businesses Conclude Russia Was Behind Large SolarWinds Hack | Nationwide Information

admin

International Digital Out-of-Dwelling (DOOH) Market Report 2020-2026

admin

Leave a Comment