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Why is it bad news?
CEOs leaving, that's bad news!
Kona Grill Appoints Two New Members to Board of Directors
Today : Friday 9 March 2012
Kona Grill, Inc. (NASDAQ: KONA), an American grill and sushi bar, has appointed Steven Schussler and Leonard "Lenny" Newman as independent directors of Kona Grill. In addition to serving as an independent director, Mr. Newman will assume the role of audit committee chair.
These appointments allow Kona Grill to regain compliance with NASDAQ Listing Rule 5605 that the board of directors and the audit committee be comprised of a majority of independent directors and at least three independent directors, respectively.
Mr. Schussler comes to Kona Grill with over 30 years of business and restaurant experience. Schussler was the founder, executive vice president and director of Rainforest Café, Inc., a publically traded restaurant company that was sold to Landry's Restaurants, Inc. in 2000. Since then, Mr. Schussler has been CEO of Schussler Creative, Inc., a restaurant development concept company that has created T-Rex Café, a highly-successful attraction, restaurant and retail store located in Downtown Disney Marketplace in Orlando, Florida and in Kansas City, Kansas, as well as Yak & Yeti, a popular Pan Asian restaurant and retail store, located inside Disney's Animal Kingdom. Schussler Creative, Inc. sold a controlling interest in these restaurant concepts to Landry's in 2006.
Mr. Newman brings over 30 years of financial and accounting experience to Kona Grill, including serving as CEO for Camillet Foods, a franchisee of casual restaurants. Previously, Newman was the CFO for Border Foods, Inc., a company that operated 175 KFC, Pizza Hut and Taco Bell restaurants. From 1989 through 1996, he served several accounting and financial positions for Pepsi Co, Inc., most recently as director of acquisitions & divestitures. Newman began his career as an accountant with Arthur Andersen & Co. from 1982 through 1989.
"On behalf of the Kona Grill organization, we are pleased to welcome Steven and Lenny to our board where they will each bring an extensive combination of financial and restaurant experience," said James R. Jundt, Kona Grill's chairman of the board of directors. "Steven's many years of experience in the restaurant industry will be extremely valuable as we continue to develop the Kona Grill brand. Lenny brings a distinguished career in finance that will add strategic depth to our board. We look forward to their contributions and believe their insight and experience will benefit our shareholders."
Well, at least it was an insider.. Better still according to Jim Collins is someone that actually worked the floor as well.
The recent selloff is likely due to the "new" (and good) CEO leaving after a short time on the job and being replaced by another insider.
~ $KONA ~ Earnings posted, pending or coming soon! In Charts and Links Below!
~ $KONA ~ Earnings expected on Monday *
This Week In Earnings: Earnings are coming or are already posted! This is what the charts look like! If you play the earnings these posts can be very helpful to you!
Want more like this? Search Keyword: MACMONEY >>> http://tinyurl.com/MACMONEY <<<
One or more of many earnings sites has alerted this security has or will be posting earnings on or around the day of this message.
http://stockcharts.com/h-sc/ui?s=KONA&p=D&b=3&g=0&id=p88783918276&a=237480049
http://stockcharts.com/h-sc/ui?s=KONA&p=W&b=3&g=0&id=p54550695994
~ Barchart: http://barchart.com/quotes/stocks/KONA?
~ OTC Markets: http://www.otcmarkets.com/stock/KONA/company-info
~ Google Finance: http://www.google.com/finance?q=KONA
~ Google Fin Options: hhttp://www.google.com/finance/option_chain?q=KONA#
~ Yahoo! Finance ~ Stats: http://finance.yahoo.com/q/ks?s=KONA+Key+Statistics
~ Yahoo! Finance ~ Profile: http://finance.yahoo.com/q/pr?s=KONA
Finviz: http://finviz.com/quote.ashx?t=KONA
~ BusyStock: http://busystock.com/i.php?s=KONA&v=2
~ CandlestickChart: http://www.candlestickchart.com/cgi/chart.cgi?symbol=KONA&exchange=US
~ Investorshub Trades: http://ih.advfn.com/p.php?pid=trades&symbol=KONA
~ Investorshub Board Search: http://investorshub.advfn.com/boards/getboards.aspx?searchstr=KONA
~ Investorshub PostStream Search: http://investorshub.advfn.com/boards/poststream.aspx?ticker=KONA
~ Investorshub Goodies Search: http://investorshub.advfn.com/boards/msgsearchbyboard.aspx?boardID=18582&srchyr=2011&SearchStr=KONA
~ Investorshub Message Search: http://investorshub.advfn.com/boards/msgsearch.aspx?SearchStr=KONA
~ MarketWatch: http://www.marketwatch.com/investing/stock/KONA/profile
~ E-Zone Chart: http://www.windchart.com/ezone/signals/?symbol=KONA
~ 5-Min Wind: http://www.windchart.com/stockta/analysis?symbol=KONA
~ 10-Min Wind: http://www.windchart.com/stockta/analysis?symbol=KONA&size=l&frequency=10&color=g
~ 30-Min Wind: http://www.windchart.com/stockta/analysis?symbol=KONA&size=l&frequency=30&color=g
~ 60-Min Wind: http://www.windchart.com/stockta/analysis?symbol=KONA&size=l&frequency=60&color=g
http://investorshub.advfn.com/boards/post_prvt.aspx?user=251916
*If the earnings date is in error please ignore error. I do my best.
This one is so overpriced it's not funny! 68 P/E for an industry with an average P/E of 20, Yikes!
http://finance.yahoo.com/q?s=kona&ql=1
Even McDonald's and Starbucks are less than half that, LOL
everybody does until 1 month ago i learned to wait for a pullbacks on everything, i always thought everything would run the minute i first saw it,or when somebody told me i ned to get in it, im still very new so much to learn in investing,trying to get it right
I like the concept, but I'm a cheap ass, I like to buy things on sale ;)
perhaps the 3-4 dollar range will be a better entry point,il wait til then i agree and thought about that too,i think business should be down as people will need to buy groceries instead of eating out
new investors..
http://www.reuters.com/article/2011/09/20/us-konagrill-idUSTRE78J45120110920?feedType=RSS&feedName=globalMarketsNews&rpc=43
Most recent 10K (August 1, 2011) : http://biz.yahoo.com/e/110801/kona10-q.html (Sales growth doubled year over year)
Mutual Fund Ownership : http://moneycentral.msn.com/ownership?symbol=KONA&Holding=Mutual+Fund+Ownership
Insider Ownership : http://www.secform4.com/insider-trading/1265572.htm
http://moneycentral.msn.com/ownership?symbol=KONA&Holding=5%25+Ownership
Institutional Ownership : http://moneycentral.msn.com/ownership?symbol=KONA&Holding=Institutional+Ownership
i agree,it is a good time to get in then,this stock should make many happy here
hopefully the finances will look good here when filings are out..kona
Just checked this one out, the 200 is at $5.40, why do you think that's a good price? Looks like yearly earnings will be 10c-20c per share, still way over priced at this point unless some huge expansion is about to occur. Plus there's a recession, one of the first things people cut down on is going out for dinner, until the recession let's up the restaurant industry is on shaky ground. I like the concept, just not at this price.IMO
Still patiently waiting for a pullback to the 200 DMA area...this is an undervalued company based on the new management + positive turnaround in progress but the market isn't cooperating. Hope it gets even cheaper.
Sept. 22, 2011, 5:00 p.m. EDT
Kona Grill Closes Underperforming Sugar Land, Texas Location
SCOTTSDALE, AZ, Sep 22, 2011 (MARKETWIRE via COMTEX) -- Kona Grill, Inc. /quotes/zigman/97050/quotes/nls/kona KONA -7.74% , an American grill and sushi bar, has closed its underperforming restaurant in Sugar Land, Texas.
"The closure of Sugar Land is consistent with our strategy to eliminate unprofitable locations and focus on our existing 23 successful Kona Grill restaurants," said Mike Nahkunst, interim president and CEO of Kona Grill. "The timing of this closure was primarily due to the unanticipated sudden end to negotiations with the leaseholder, as we were exploring ways to reduce this location's overhead and potentially make it profitable. We've now concluded the pruning process related to our restaurant portfolio, which allows us to concentrate on developing the two new restaurants we have scheduled to open in 2012."
Since the operating results of the Sugar Land location will be reported as discontinued operations, the company has revised its third quarter 2011 restaurant sales guidance by $500,000, to a range of $23.6 million to $23.7 million, to reflect the exclusion of sales associated with this restaurant. The company's expectation for income from continuing operations remains unchanged. However, due to lease termination and other related exit costs that will be recorded in discontinued operations, the expected range for net income has been lowered by approximately $0.2 million or $0.02 per share. The company now expects to report third quarter net income of $0.3 million to $0.4 million, or $0.03 to $0.04 per share.
Low volume at the end of the day, but interesting spike nonetheless.
Ibox has been updated, as time goes on and KONA grows larger new things and updates will be added as well.
Big spike today, looks like it may be the beginnings of a CMG-type company with the new CEO in place (formerly of Cheesecake Factory/BJ's/Chilis).
Still small, only 23 restaurants, lots and lots of room to grow. All locations when googled are full of 4-5 star ratings, think I'll check it out this weekend.
Other plus is very low O/S (under 10 million) and partially float locked by a 10% owner.
KONA, somethings up, going private is the rumor
This ceo, a preist of a church got cought banggin younger chicks
Kona Grill: CEO Resigns, Shareholders Rejoice 1 comment
by: Stone Fox Capital May 19, 2009 | about stocks: BWLD / CAKE / CMG / KONA
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Become a Contributor Submit an Article Font Size: PrintEmail TweetThis Now that the CEO that has successfully run this promising restaurant concept into the ground, Stone Fox is ready to review a potentially larger position in this concept. Kona Grill (KONA) just opened its 22nd restaurant in Woodbridge, NJ.
KONA has longed seemed a promising concept with its modern blend of an American grill with a sushi bar. They've been public for a few years now and have been largely off of Wall Street's radar, though they've had fast store growth and for a while strong comps. Lately the comps have fallen off the wagon, posting -9.6% (yes, that's negative), which was horrible considering that some of the competition actually posted positive numbers.
KONA is definitely on the slightly upper end of casual dining so its not too surprising that they posted weak results but those results were jaw dropping. Mill Road Capital claims in the Q1 conference call (see Seeking Alpha transcript) that KONA had the worst comps in the 15 company universe they follow. Hence it was time for the CEO to go. Not to mention all the drama surrounding the recent plan to raise additional funds. I'm not really sure that Mill Road Capital is accurate in their claims, but it's clearly obvious that the CEO was misguided in offering such a sweat deal to his father without offering it to all shareholders. Hence the rights offering.
How will KONA perform with the CEO gone? Lots of questions have existed with this company since the suspicious promotion of the ex-hedge fund manager to permanent CEO shortly after the IPO. He was an original investor, but he never seemed qualified to run a fast growing restaurant concept. The results have suffered mightily since he took over. Can they be turned around now if they find a industry veteran? It's also possible that the massive growth plan caused management to take the focus off the opened restaurants and allowed them to suffer.
On an operating margin, KONA still delivers strong 17% margins on the comp base and over 15% on the whole chain. What would these numbers look like with flat comps as some competitors achieved? KONA also has a strong balance sheet with net cash and has yet to lever the company up with debt. Though they now lack liquidity at the worst time since they've continued moving forward with expansion without long term financing locked up. Hence a dilutive rights offering at just $1.35 a share.
My gut feeling is that too many 'friendly' execs were brought into the fold. Some seemed to have impressive experience, but that so far hasn't translated to better sales or more Wall Street coverage. The stock only traded 2,800 shares on Friday March 15. That's absurd for a company posting $80M+ in sales. Hopefully, though, the new guys will either prosper with Jundt out of the way or the board will move to bring in better employees now that shareholders will likely have a stronger say than Jundt and his buddies.
For all the problems KONA has undergone the last couple of years, they still have posted positive growth of 7.5% in Q1 - because of the new stores. Only one store in Lincolnshire, IL has negative cash flow. That store has seen a couple of competitors go out of business of late consequently margins have improved. More on that later.
And as I mentioned before, the comp store base had operating margins of 17%+ even in this horrible economy. So one wonders what the results would be with slower expansion and better focus on execution at existing stores? It sure would reduce the stress to obtain further capital in this environment. KONA is still a net cash concept with the potential of hitting $90M in revenue this year.
Speaking of competition, the closings of competitors in this rough retail environment has been a boon to the likes of Best Buy (BBY). The restaurant business has seen multitudes of closings such as nationally known chains like Steak & Ale and Bennigan's. In reviewing the local papers, I've read of dozens of closings in Phoenix and Houston, which surely must benefit KONA in some form in those areas.
Undoubtedly, every area should be facing reduced competition on a grand scale. Though the Q1 results and Q2 forecast of another -9% comps sure doesn't inspire much hope, KONA is at least surviving in order to play another day. It would be nice to find a regional or national database to analyze the amount of competition destruction that has taken place. Places like Chipotle (CMG) and Buffalo Wild Wings (BWLD) sure are taking advantage of the reduced competition and maybe trade downs. KONA should see trades downs as well from the ultra high end dinners. It just didn't seem that Jundt had an answer. It sure didn't have a plan for making KONA a household name.
Heck, I'm headed to both Kansas City and Dallas in June and I'll guarantee that the parties traveling with me have never heard of KONA. I'm sure they've heard of the competition, whether the Cheesecake Factory (CAKE) or McCormick & Schmick's (MSSR).
A few years back when KONA went public, I envisioned the day when my post IPO investment would pay off in a big way when the general public became aware of the concept. Its mostly just became an unknown commodity three years later. The store base is up some 150% in that time, but the stock is down dramatically.
Q2 will be a telling quarter as the market has clearly turned, but has KONA? The now ex-CEO hinted at results improving in April but he still forecast dour results ahead. Investors will rejoice with the exit of the CEO that has spent more time protecting his position in KONA than enhancing shareholder wealth. The company could just as easily falter with this shakeup in management unless the current COO is exceptional or the BoD quickly finds a suitable replacement.
At $2 and change and trading .25x revenue, KONA is an exceptionally cheap stock if they can turn around the prospects. It's probably worth a speculative investment at this level, but keep a close eye on financing and whether separation from the former CEO occurs. Mill Road Capital was interested in gobbling them up at $10 a few months back. Now without the CEO in the way and the poison pill gone, this could open the door for some quick gains.
Update: Before I could even publish this article, Mill Road Capital has already submitted an offer to take KONA private for $4.60 per share. While this is an impressive 100% premium over the Friday close, I'd be hesitant to let them acquire the shares at such a low level. The concept is not in disarray. All it needs is some better management.
A menu of controversy over the Kona Grill
Former Twin Cities money managers James and Marcus Jundt are in the middle of a food fight involving shareholders and allegations of ethical lapses and mismanagement.
By JENNIFER BJORHUS, Star Tribune
Last update: May 11, 2009 - 11:24 PM
An increasingly ugly management-shareholder dispute at Kona Grill Inc. has pulled former Twin Cities money managers James Jundt and his son Marcus back into the spotlight.
James Jundt's investment company landed in court in 2007 in a fight over paying a manager's $1.83 million bonus. Jundt Associates Inc. has closed and remains in a court-appointed receivership pending an appeal regarding that bonus. Now the Jundts face a different snarl, this one centered on Kona Grill, a chain of upscale seafood restaurants based in Scottsdale , Ariz. James Jundt, a former co-owner of the Vikings, and Marcus Jundt are among the chain's largest shareholders and Marcus is Kona Grill's chairman and chief executive. At least two other board members have strong Minnesota ties.
Losing money and with its stock languishing in the $2 range, Kona Grill has locked horns with Mill Road Capital, an investment company in Greenwich, Conn.., which owns about 10 percent of Kona Grill's shares. Kona Grill also faces complaints from other shareholders, including one who sued it last month. According to letters filed with the Securities and Exchange Commission [SEC], as well as court documents and comments made in a company conference call, Mill Road Capital has accused Marcus Jundt of ethical lapses and mismanagement and of trying to manipulate Kona Grill's fundraising -- including giving preferential treatment to his father in proposed stock sales. Mill Road drew attention last week by issuing a press release to note that Kona Grill shareholders with 53 percent of the company's voting shares recently withheld support for Marcus Jundt as a director.
"The list of fiduciary breaches is both long and unconscionable," Mill Road said in a March 6 letter to the chain's board of directors.
Reached by phone, Marcus Jundt said Mill Road Capital was trying to buy Kona Grill cheaply and flip it for a profit. He also said Kona Grill's rules don't require him to relinquish his board seat because of the shareholder vote. Jundt refused to discuss the matter further.
Generally, if a person runs unopposed for a seat on the board of directors as Marcus Jundt did, and the company's bylaws are written so that only a plurality of votes is required to win the seat, then it could take as little as one vote for the person running to win.
When the fight spilled over into a testy exchange between Marcus Jundt and Thomas Lynch, senior managing director at Mill Road Capital, during a routine conference call with industry analysts April 29, Jundt denied some of Lynch's accusations. He said the company has established a committee of board members to handle fundraising and that the proposed stock sales had been fair. In SEC filings, the company has said the special committee is made up of independent board members responsible for pursuing outside financing.
'Egregious actions' cited
Kona Grill shareholder Samuel Beren recently filed a lawsuit in Delaware, indicating he was not satisfied with the fact that the company has "reviewed, investigated and dismissed" the ethics complaints Mill Road Capital has made against Marcus Jundt. Kona Grill has moved to dismiss the lawsuit, arguing there is no legal basis for a claim.
Lynch insists Mill Road Capital is a long-term investor in small public companies -- not an activist investor that buys into companies to shake things up.
"We're doing this very reluctantly," Lynch said in an interview. "The actions taken by Marcus Jundt, and approved by the board of directors, are the most egregious actions we have seen .... in the 20 years we've been a public company investor."
Mill Road Capital made a bid to acquire Kona in 2008 at $10.75 a share when the stock was trading in the $8 range. Kona's board rejected the bid.
Since last fall, Mill Road Capital has written a series of increasingly shrill letters about Kona Grill's management that have been filed with the SEC. Kona Grill has not filed responses.
Specifically, Lynch has accused Marcus Jundt of manipulating proposed Kona Grill stock sales twice since last December. In the first proposal, Kona announced in December that it had agreed to sell James Jundt $1 million worth of Kona Grill shares at $1.19 each, 38 cents a share cheaper than the trading price at the time of $1.57. The sale was subject to Kona Grill getting financing by a third party. By contrast, it allegedly offered to sell Mill Road Capital the shares at $1.50. Kona Grill ultimately withdrew the offer to James Jundt.
Kona Grill in March announced another fundraising proposal to sell stock and warrants to accredited investors. This time, Mill Road Capital accused Kona Grill of distributing different term sheets offering shares to certain people, including James Jundt, at terms far better than what it offered to other parties, including Mill Road Capital.
Lynch asked Marcus Jundt about the fairness of the two proposed stock sales during a company conference call April 29.
Jundt alleges deception
"You're misstating the facts and you're deceiving people and you're factually incorrect," Jundt responded during the call. "You were shown the exact same terms and to state otherwise is factually deceiving and wrong."
Finally, Lynch says that at a meeting this past December, Marcus Jundt and board member Richard Hauser asked Mill Road Capital for a $6 million personal loan to buy discounted Kona Grill stock. In exchange for the loan, they allegedly offered to reward Mill Road Capital with a seat on the board and several million dollars' worth of underpriced Kona Grill shares.
In a letter to Marcus Jundt dated Dec. 30, 2008, and filed with the SEC, Lynch said he rejected the proposal because he believed it violated Sarbanes-Oxley rules prohibiting companies from directly or indirectly arranging loans to management.
"We further rejected the proposal because it was not part of a competitive process that would ensure the highest value to the company and all of its shareholders," Lynch wrote.
Mill Road Capital is not the only shareholder to register complaints about Kona Grill's alleged sweetheart deals.
In a letter to Marcus Jundt dated Jan. 2, Justin Bennitt, head of an investment fund in Chadds Ford , Pa. , said he was shocked when the company disclosed its offering of discounted shares to James Jundt.
"Offering shares to James Jundt (your father) at a ridiculously low price of $1.19 for nearly 5 percent of the company is completely unacceptable," Bennitt wrote in the letter, which he also published on a news wire.
When contacted, Bennitt would only say that Marcus Jundt isn't qualified to run Kona because he has no restaurant experience.
Fiduciary breach alleged
The events Lynch described in his letters prompted Beren to file a lawsuit against Kona Grill for allegedly breaching its fiduciary obligations to shareholders. The suit, filed April 1 in the Court of Chancery in Delaware , names both Jundts among the defendants. It also names board members, including Richard Hauser and Douglas Hipskind, who have ties to Minnesota .
Hauser is head of Capital Real Estate Inc., a Minneapolis-based commercial real estate investment company. Hipskind, who appears to live in Chanhassen, used to be managing director of Jundt Associates and is now a partner in Black Diamond Resorts, a company developing the Four Seasons Resort in Vail, Colo. Neither could be reached for comment.
Beren's lawsuit also notes that since one Kona Grill board member resigned in December due to a conflict of interest, the majority of Kona Grill's six directors are not currently independent, as required by the Nasdaq stock exchange. Nasdaq has notified the company that its stock could be delisted unless the problem is resolved by mid-December.
Don Dempsey, Kona Grill's previous chief executive, said he wrote a letter to the SEC Jan. 3 expressing concerns about the company's management. Dempsey said the SEC acknowledged his letter but said he doesn't know whether it has done anything else. In an interview, Dempsey said he has followed Kona Grill's shareholder-management fracas.
"I find it, frankly, unbelievable," he said.
Press Release Source: Mill Road Capital
Kona Shareholders Deliver Stinging Rebuke to Chairman Marcus Jundt
On Monday May 4, 2009, 3:35 pm EDT
GREENWICH, Conn., May 4 /PRNewswire/ -- Following the Kona Grill (NasdaqGM: KONA - News) annual meeting on April 30, 2009, in Scottsdale, Arizona, Mill Road Capital reports that the company's Board of Directors announced that a majority of votes cast did not support the re-election of the company's current Chairman and CEO, Marcus Jundt. Shareholders also voted overwhelmingly to overturn the Company's poison pill.
With over 6 million shares counted, approximately 53% of Kona's voting shares withheld their support for Marcus Jundt, while 57% voted to terminate the poison pill that the company's Board of Directors had put in place only one year ago.
Kona insiders control just over 20% of the company's shares, making the reprimand of management especially strong because it indicated that over two-thirds of outside shares voted to reject Marcus Jundt and over three-quarters were voted against the poison pill.
The company's Board had previously refused to certify a candidate nominated to oppose Marcus Jundt on a technicality, so the Chairman will continue on the company's Board despite the sharp rebuke from shareholders.
Shareholders have been increasingly vocal about the company's poor performance since Marcus Jundt was named interim CEO on February 1, 2006. Since being named CEO, Kona's stock price has declined by 78%.
Shareholder ire has not been limited to just the poor stock price performance. The company has also been plagued with corporate governance problems. When Marcus Jundt was appointed permanent CEO in July 2006, company Director and Audit Committee Chair Frank Bennett resigned from the Board stating that he disagreed with "the Board governance process that produced" Jundt's election. When asked on the recent earnings conference call about the Board governance process that resulted in his becoming CEO, Marcus Jundt replied, "No comment."
More recently on May 28, 2008, Marcus Jundt announced that the company's Board had approved a poison pill to inhibit "unfair" takeover activity. In a company press release, Marcus Jundt noted that the Board "had not adopted the [poison pill] Rights Plan in response to any specific takeover proposal." Shareholders later learned that a friendly bid by Mill Road Capital to acquire Kona at $10.75 per share was rejected by the Board only weeks prior to the announcement of the poison pill. As of Friday, May 1, 2009, Kona shares closed at $2.15.
The company has faced even more shareholder opposition to its fundraising activities. Twice in the last five months, Kona Grill has announced financings that would result in Marcus Jundt's father, James Jundt, purchasing company shares at a very deep discount to the current quoted price. In late December 2008, Kona announced that $1 million in shares would be sold to James Jundt at $1.19 per share. Several months later, Kona announced that it would instead sell James Jundt the right to buy shares priced at $1.35 per share as part of another deal.
Kona shareholders have voiced their opposition to these "sweetheart deals." In a press release issued on January 2, 2009, shareholder Justin Bennitt wrote to Marcus Jundt that the insider deal raised "questions of your ethics and your fiduciary duties to shareholders." Mr. Bennitt wrote further, "I don't know how one sleeps at night trying to achieve personal gain at the expense of shareholders."
Kona Grill's management has issued no public statement in the aftermath of the shareholder vote and the company is currently operating under a deficiency notice from Nasdaq for failing to have an adequate number of independent board directors.
The conference call transcript excerpt is attributable to www.SeekingAlpha.com. A complete free transcript of the call can be found at http://seekingalpha.com/article/134080-kona-grill-inc-q1-2009-earnings-call-transcript?page=-1.
Watch this company for signs of an ouster of current management. Mill River Capital (an activist shareholder) is going hard after this very weak and opportunistic management. Read the transcript of the last conference call and do your homework. If a change in control takes place and the company is once again put on course, I think this will be a good investment. If you own it I would hold it. If you do not own it I would watch it and buy anything under $1.35/share.
http://activistinvesting.blogspot.com/2009/04/march-activist-investments-70-companies.html
http://seekingalpha.com/article/134080-kona-grill-inc-q1-2009-earnings-call-transcript?source=yahoo
Kona Grill to Present at The Avondale 2008 Consumer Conference
Kona Grill, Inc. (NASDAQ: KONA), an American grill and sushi bar, today announced that the Company will be presenting at the Avondale 2008 Consumer Conference on Tuesday, May 20, 2008, at The Millennium Broadway Hotel in New York City. The presentation will begin at 2:55 PM Eastern Time.
Investors and interested parties will be able to listen to the investor presentation via webcast from the investor relations portion of the Company's website at www.konagrill.com.
About Kona Grill Kona Grill owns and operates restaurants in Scottsdale and Chandler, AZ; Denver, CO; Stamford, CT; Naples, FL; Lincolnshire and Oak Brook, IL; Carmel, IN; Baton Rouge, LA; Troy, MI; Kansas City, MO; Omaha, NE; Las Vegas, NV; Austin, Dallas, Houston, San Antonio, and Sugar Land (Houston), TX. Kona Grill restaurants offer freshly prepared food, personalized service, and a warm, contemporary ambiance that creates an exceptional, yet affordable, dining experience. Kona Grill restaurants serve a diverse selection of mainstream American dishes as well as a variety of appetizers and entrees with an international influence. Each restaurant also features an extensive sushi menu and sushi bar.
Kona Grill Reports First Quarter Results
First Quarter Revenues Increase 20%; Diluted EPS of ($0.10)
Stockholder Meeting to be Held on May 1st in Phoenix, AZ
Kona Grill, Inc. (Nasdaq: KONA), an American grill and sushi bar, today reported results for its first quarter ended March 31, 2008.
Highlights for the first quarter of 2008 include:
Revenue increased 20.0% to $18.8 million
Same-store sales decreased 2.4%
Net loss of ($0.7) million, or ($0.10) per diluted share
“First quarter 2008 results are indicative of the overall challenging macroeconomic environment, and in particular, the weak housing markets in Arizona and Nevada. Although the outlook for the remainder of the year suggests caution, we continue to believe that our growth model positions us well to opportunistically participate in any upturn of the economic cycle. In addition, our Board of Director’s recent authorization of a 600,000 share repurchase program demonstrates our confidence in the long-term success of our brand,” said Marcus E. Jundt, Chief Executive Officer and President of Kona Grill.
First Quarter Financial Results
For the first quarter of 2008, restaurant sales increased 20.0% to $18.8 million from $15.7 million in the same period last year. The increase in restaurant sales during the first quarter primarily reflects additional revenue from four stores opened during 2007. Restaurant sales reflect a 2.4% decrease in same-store sales, principally due to lower sales volume at two restaurants in Arizona and one restaurant in Nevada.
Average weekly sales for the 11 restaurants in the comparable base were $83,019 during the first quarter of 2008, compared to $85,042 in the prior year period. Average weekly sales for restaurants not in the comparable base that were open for the entire first quarter of 2008 were $76,283, versus $73,046 last year, a 4.4% increase.
Net loss for the first quarter of 2008 was ($0.7) million, or ($0.10) per diluted share, based upon 6.6 million diluted shares, versus net loss of ($0.5) million, or ($0.09) per diluted share for the same period last year, based upon 5.9 million diluted shares.
Financial Guidance
For the second quarter of 2008, the Company forecasts revenue of $19.7 million to $20.3 million and a net loss of ($0.3) million to ($0.6) million, or a net loss per diluted share of ($0.05) to $(0.09).
For fiscal year 2008, the Company expects revenue of $86 million to $90 million and a net loss of ($0.8) million to ($1.8) million, or ($0.12) to ($0.27) per diluted share. The Company anticipates opening five new restaurants in 2008, including one in the second quarter, one in the third quarter, and three in the fourth quarter. The 2008 development schedule includes the previously announced restaurants in Gilbert, AZ; West Palm Beach, FL; Phoenix, AZ and two additional units to be announced later.
Conference Call and Annual Stockholder Meeting
The Company will host a conference call to discuss first quarter 2008 financial results today at 5:00 PM ET. The call will be webcast live from the Company's website at www.konagrill.com under the investor relations section. Listeners may also access the call by dialing 800-762-8779 or 480-629-9041 for international callers. A replay of the call will be available until Wednesday, May 7, 2008, by dialing 800-406-7325 or 303-590-3030 for international callers; the password is 3866806.
The Company will also hold its Annual Stockholders meeting on Thursday, May 1, 2008, at the Offices of Greenberg Traurig LLP, 2375 E. Camelback Road, Suite 700, Phoenix, AZ 85016 at 5:00 PM ET.
About Kona Grill
Kona Grill owns and operates restaurants in Scottsdale and Chandler, AZ; Denver, CO; Stamford, CT; Naples, FL; Lincolnshire and Oak Brook, IL; Carmel, IN; Baton Rouge, LA; Troy, MI; Kansas City, MO; Omaha, NE; Las Vegas, NV; Austin, Dallas, Houston, San Antonio, and Sugar Land (Houston), TX. Kona Grill restaurants offer freshly prepared food, personalized service, and a warm, contemporary ambiance that creates an exceptional, yet affordable, dining experience. Kona Grill restaurants serve a diverse selection of mainstream American dishes as well as a variety of appetizers and entrees with an international influence. Each restaurant also features an extensive sushi menu and sushi bar.
Forward-Looking Statements
The financial guidance we provide for our second quarter and fiscal year 2008 results, statements about our beliefs regarding profits and stockholder value, and certain other statements contained in this press release are forward-looking. Forward-looking statements include statements regarding our expectations, beliefs, intentions, plans, objectives, goals, strategies, future events, or performance and underlying assumptions and other statements that are not purely historical. We have attempted to identify these statements by using forward-looking terminology such as “may,” “will,” “anticipates,” “expects,” “believes,” “intends,” “should,” or comparable terms. All forward-looking statements included in this press release are based on information available to us on the date of this release and we assume no obligation to update these forward-looking statements for any reason. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those described in the statements. These risks and uncertainties include various risk factors set forth in our 2007 Annual Report on Form 10-K as filed with the Securities and Exchange Commission, as well as various risk factors set forth from time to time in our reports filed with the Securities and Exchange Commission.
KONA GRILL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
March 31, December 31,
2008 2007
(Unaudited)
ASSETS
Current assets $ 13,311 $ 21,668
Long-term investments 6,247 -
Other assets 512 495
Property and equipment, net 48,490 47,311
Total assets $ 68,560 $ 69,474
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ 7,968 $ 8,012
Long-term obligations 15,031 15,031
Stockholders’ equity 45,561 46,431
Total liabilities and stockholders’ equity $ 68,560 $ 69,474
KONA GRILL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Months Ended March 31,
2008 2007
(Unaudited)
Restaurant sales $ 18,796 $ 15,666
Costs and expenses:
Cost of sales 5,407 4,546
Labor 6,459 5,075
Occupancy 1,308 1,058
Restaurant operating expenses 2,727 2,134
General and administrative 1,852 1,769
Preopening expense 178 488
Depreciation and amortization 1,658 1,289
Total costs and expenses 19,589 16,359
Loss from operations (793 ) (693 )
Nonoperating income (expense):
Interest income 204 160
Interest expense (34 ) -
Loss before provision for income taxes (623 ) (533 )
Provision for income taxes 50 10
Net loss $ (673 ) $ (543 )
Net loss per share:
Basic $ (0.10 ) $ (0.09 )
Diluted $ (0.10 ) $ (0.09 )
Weighted average shares used in computation:
Basic 6,609 5,854
Diluted 6,609 5,854
Reconciliation of Restaurant Operating Profit to Loss from Operations
The Company defines restaurant operating profit to be restaurant sales minus cost of sales, labor, occupancy, and restaurant operating expenses. Restaurant operating profit does not include general and administrative expenses, depreciation and amortization, and preopening expenses. The Company believes restaurant operating profit is an important component of financial results because it is a widely used metric within the restaurant industry to evaluate restaurant-level productivity, efficiency, and performance. The Company uses restaurant operating profit as a key metric to evaluate its restaurants' financial performance compared with its competitors. Restaurant operating profit is not a financial measurement determined in accordance with generally accepted accounting principles ("GAAP") and should not be considered in isolation or as an alternative to loss from operations. Restaurant operating profit may not be comparable to the same or similarly titled measures computed by other companies. The table below sets forth the Company's calculation of restaurant operating profit and a reconciliation to loss from operations, the most comparable GAAP measure.
Three Months Ended March 31,
2008 2007
Restaurant sales $ 18,796 $ 15,666
Costs and expenses:
Cost of sales 5,407 4,546
Labor 6,459 5,075
Occupancy 1,308 1,058
Restaurant operating expenses 2,727 2,134
Restaurant operating profit 2,895 2,853
Deduct - other costs and expenses:
General and administrative 1,852 1,769
Preopening expense 178 488
Depreciation and amortization 1,658 1,289
Loss from operations $ (793 ) $ (693 )
Percentage of Restaurant Sales
Three Months Ended March 31,
2008 2007
Restaurant sales 100.0 % 100.0 %
Costs and expenses:
Cost of sales 28.8 29.0
Labor 34.4 32.4
Occupancy 7.0 6.8
Restaurant operating expenses 14.5 13.6
Restaurant operating profit 15.4 18.2
Deduct - other costs and expenses:
General and administrative 9.9 11.3
Preopening expense 0.9 3.1
Depreciation and amortization 8.8 8.2
Loss from operations (4.2 ) % (4.4 ) %
Certain percentage amounts may not sum to total due to rounding
Investor Relations
Raphael Gross/Don Duffy
203-682-8200
Kona Grill, Inc. Announces Stock Repurchase Authorization
Company to Release First Quarter Financial Results on April 30, 2008
Kona Grill, Inc. (Nasdaq: KONA), an American grill and sushi bar, announced today that its Board of Directors has approved a stock repurchase program under which the Company is authorized to repurchase up to 600,000 shares of its common stock. Any stock repurchases will be made in the open market. The repurchases will be made at management's discretion in the open market in compliance with applicable securities laws and other legal requirements and are subject to market conditions, share price, available cash and other factors. The plan does not obligate the Company to acquire any particular amount of common stock and the plan may be suspended or discontinued at any time.
"Kona Grill is dedicated to creating long-term value, and repurchasing our common stock represents the Board’s confidence in our Company’s future," said Marcus E. Jundt, Chief Executive Officer and President of Kona Grill.
The Company also announced that it will release first quarter 2008 financial results on Wednesday, April 30, 2008 after the market close. A conference call will follow at 5 PM ET and will be webcast live from the investor relations portion of the company's website at www.konagrill.com. Listeners may also access the call by dialing 800-762-8779 or 480-629-9041 for international callers. A replay of the call will be available until Wednesday, May 7, 2008, by dialing 800-406-7325 or 303-590-3030 for international callers; the password is 3866806.
About Kona Grill
Kona Grill owns and operates restaurants in Scottsdale and Chandler, AZ; Denver, CO; Stamford, CT; Naples, FL; Lincolnshire and Oak Brook, IL; Carmel, IN; Baton Rouge, LA; Troy, MI; Kansas City, MO; Omaha, NE; Las Vegas, NV; Austin, Dallas, Houston, San Antonio, and Sugar Land (Houston), TX. Kona Grill restaurants offer freshly prepared food, personalized service, and a warm, contemporary ambiance that creates an exceptional, yet affordable, dining experience. Kona Grill restaurants serve a diverse selection of mainstream American dishes as well as a variety of appetizers and entrees with an international influence. Each restaurant also features an extensive sushi menu and sushi bar.
Kona Grill, Inc.
Investor Relations:
Raphael Gross/Don Duffy
203-682-8200
Source: Business Wire (April 8, 2008 - 1:23 PM EDT)
Kona Grill Reports Fourth Quarter and Full Year 2007 Results
Fourth Quarter Revenues Increase 21.9%; Diluted EPS of ($0.14)
Company Issues 2008 Guidance
Kona Grill, Inc. (Nasdaq: KONA), an American grill and sushi bar, today reported results for its fourth quarter and full year ended December 31, 2007.
Highlights for the fourth quarter of 2007 include:
Opened restaurants in Stamford, CT and Baton Rouge, LA bringing total to 18
Revenue increased 21.9% to $18.1 million
Same-store sales decreased 0.8%
Restaurant operating profit increased 20.7% to $3.3 million
Net loss of ($0.9) million, or ($0.14) per diluted share
Highlights for the full year of 2007 include:
Opened four new restaurants, resulting in 29% unit growth
Revenue increased 42.5% to $72.3 million
Same-store sales increased 2.7%
Restaurant operating profit increased 39.9% to $14.2 million
Net loss of ($0.7) million, or ($0.11) per diluted share
“Fourth quarter 2007 results reflect slightly weaker volumes than we had anticipated, as traffic slowed during the historically strong holiday season. On a full year basis, we continued to demonstrate the strength of the Kona Grill brand by adding four restaurants to our portfolio and by upholding industry-leading operating profit margins, despite well-known food and labor cost pressures. Looking ahead, our guidance reflects the current development schedule and its projected impact on our financial results, as well as a cautious outlook on consumer spending. Although the macro environment remains challenging, we believe our differentiated and affordable dining experience positions us well within the upscale casual dining sector,” said Marcus E. Jundt, Chief Executive Officer and President of Kona Grill.
Fourth Quarter Financial Results
As previously announced, revenue increased 21.9% to $18.1 million during the fourth quarter of 2007 from $14.8 million in the same period last year. The growth in revenue is attributable to additional revenue from six restaurants opened since October 2006, offset by a 0.8% decrease in same-store sales, primarily caused by lower sales volumes at two restaurants located in Arizona and one restaurant in Nevada.
Average weekly sales for the nine restaurants in the comparable base were $90,039 during the fourth quarter of 2007, compared to $90,791 in the prior year period. Average weekly sales for restaurants not in the comparable base that were open for the entire fourth quarter of 2007 were $73,753, versus $77,300 last year, a 4.6% decrease.
Net loss for the fourth quarter of 2007 was ($0.9) million, or ($0.14) per diluted share, based upon 6.3 million diluted shares, versus net loss of ($1.1) million, or ($0.19) per diluted share for the same period last year, based upon 5.8 million diluted shares.
Full Year 2007 Financial Results
Revenue increased 42.5% to $72.3 million during 2007 from $50.7 million last year, primarily as a result of $20.3 million in additional revenue associated with the opening of nine restaurants since the second quarter of 2006, as well as a 2.7% increase in same-store sales.
Net loss for the year ended December 31, 2007 was ($0.7) million, or ($0.11) per diluted share, based upon 6.0 million diluted shares. This compares to a net loss of ($2.7) million, or ($0.47) per diluted share, based upon 5.8 million diluted shares, in the prior year.
Financial Guidance
For the first quarter of 2008, the Company expects revenue of $18.5 million to $19.0 million and a net loss of ($0.4) million to ($0.7) million, or a net loss per diluted share of ($0.06) to ($0.11).
For fiscal year 2008, the Company expects revenue of $86 million to $90 million and a net loss of $($0.8) million to ($1.8) million, or ($0.12) to ($0.27) per diluted share. The Company anticipates opening five new restaurants in 2008, including two in the second quarter, one in the third quarter, and two in the fourth quarter. The 2008 development schedule includes the previously announced restaurants in Gilbert, AZ; West Palm Beach, FL; Phoenix, AZ and two additional units to be announced later.
Conference Call
The Company will host a conference call to discuss fourth quarter 2007 financial results today at 8:30 AM ET. The call will be webcast live from the Company's website at www.konagrill.com under the investor relations section. Listeners may also access the call by dialing 1-800-753-0420 or 1-913-312-1460 for international callers. A replay of the call will be available until Thursday, February 21, 2008, by dialing 1-888-203-1112 or 1-719-457-0820 for international callers; the password is 4277159.
About Kona Grill
Kona Grill owns and operates restaurants in Scottsdale and Chandler, AZ; Denver, CO; Stamford, CT; Naples, FL; Lincolnshire and Oak Brook, IL; Carmel, IN; Baton Rouge, LA; Troy, MI; Kansas City, MO; Omaha, NE; Las Vegas, NV; Austin, Dallas, Houston, San Antonio, and Sugar Land (Houston), TX. Kona Grill restaurants offer freshly prepared food, personalized service, and a warm, contemporary ambiance that creates an exceptional, yet affordable, dining experience. Kona Grill restaurants serve a diverse selection of mainstream American dishes as well as a variety of appetizers and entrees with an international influence. Each restaurant also features an extensive sushi menu and sushi bar.
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Tue Sep 20, 2011 11:57am EDT
(Reuters) - Kona Grill's (KONA.O) shares rose as much as 35 percent on Tuesday, a day after the American grill and sushi bar raised its outlook for the third quarter as promotions and an improved menu help it gain market share.
Kona -- which owns 24 restaurants after closing its underperforming West Palm Beach outlet last month -- is outperforming other casual diners and its strong sales growth will continue into the fourth quarter, Feltl and Co analyst Mark Smith said.
Smith raised his rating on Kona's stock to "strong buy" from "buy," citing strong current results and his outlook for growth through 2012.
"We are encouraged by the raised guidance and think Kona restaurants are seeing improved results after the emphasis on store level margins, restaurant remodels and recent price increases," Smith said in a note.
The restaurant chain, known for its sushi, has been adding items to its menu, like a selection targeting health-conscious people and has spent on marketing to boost sales.
"We believe customers are discovering the recent improvements to the menu," B. Riley analyst Conrad Lyon said in a note and kept his "buy" rating on the stock.
The company has also re-shuffled its top management this year by hiring restaurant industry veteran Michael Nahkunst as its interim CEO and promoting Larry Ryback to the position of chief operating officer.
On Monday, Kona forecast third-quarter revenue of $24.1-$24.2 million up from its prior forecast of $22.7-$23.7 million.
Analyst Smith also pointed to a recent pull-back in the company's share price as a reason for raising his rating on the stock.
The company's shares have lost almost a third of their value over the past month, excluding their gains on Tuesday. They were trading up $1.31 at $6.57, after touching a high o$7.10.
http://www.reuters.com/article/2011/09/20/us-konagrill-idUSTRE78J45120110920?feedType=RSS&feedName=globalMarketsNews&rpc=43
Most recent 10K (August 1, 2011) : http://biz.yahoo.com/e/110801/kona10-q.html (Sales growth doubled year over year)
Mutual Fund Ownership : http://moneycentral.msn.com/ownership?symbol=KONA&Holding=Mutual+Fund+Ownership
Insider Ownership : http://www.secform4.com/insider-trading/1265572.htm
http://moneycentral.msn.com/ownership?symbol=KONA&Holding=5%25+Ownership
Institutional Ownership : http://moneycentral.msn.com/ownership?symbol=KONA&Holding=Institutional+Ownership
Authorized Shares (A/S) :: 15,000,000
Outstanding Shares :: 9,217,296
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