UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 10, 2017
KONA GRILL, INC.
(Exact name of registrant as specified in its charter)
Delaware |
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001-34082 |
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20-0216690 |
(State or other Jurisdiction of Incorporation) |
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(Commission File Number) |
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(IRS Employer Identification No.) |
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7150 E. Camelback Road, Suite 333 |
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85251 |
(Address of Principal Executive Offices) |
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(Zip Code) |
Registrant’s telephone number, including area code: (480) 922-8100
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(Former name or former address if changed since last report.) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition.
On January 10, 2017, Kona Grill, Inc. (the “Company”) issued a press release announcing its preliminary restaurant sales for the fourth quarter and fiscal year ended December 31, 2016.
The press release and investor presentation included in this Report on Form 8-K (including the exhibits) are being furnished and shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.
The Company does not have, and expressly disclaims, any obligation to release publicly any updates or any changes in the Company’s expectations or any change in events, conditions, or circumstances on which any forward-looking statement is based.
Item 7.01 Regulation FD Disclosure
The Company is furnishing this report on Form 8-K in connection with the disclosure of information in conjunction with investor meetings at the ICR Conference on January 10, 2017.
The text included with this Report is available on the Company’s website located at www.konagrill.com, although the Company reserves the right to discontinue that availability at any time.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
Exhibit Number |
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Description |
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99.1 |
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Press release titled “Kona Grill Announces Preliminary Fourth Quarter and Full Year 2016 Restaurant Sales” |
99.2 |
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Investor Presentation ICR Conference – January 2017 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: January 17, 2017 |
KONA GRILL, INC. |
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By: |
/s/ Christi Hing |
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Christi Hing |
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Chief Financial Officer |
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Exhibit 99.1
Kona Grill Announces Preliminary Fourth Quarter and Full Year 2016 Restaurant Sales
SCOTTSDALE, AZ – January 10, 2017 ─ Kona Grill, Inc. (NASDAQ: KONA), an American grill and sushi bar, today announced preliminary restaurant sales for the fourth quarter and full year ended December 31, 2016.
For the fourth quarter 2016, restaurant sales increased 14.5% to $43.6 million, compared to $38.1 million for the same quarter last year. Same-store sales decreased 4.1% compared to an increase of 3.2% in the fourth quarter of 2015.
For 2016, restaurant sales increased 18.5% to $169.5 million, compared to $143.0 million for the previous year. The increase was driven by sales contributions from eight restaurant openings, including three in the fourth quarter, incremental sales from six non comparable restaurants opened in the previous year and same-store sales growth of 0.5% compared to an increase of 2.0% in 2015. The Company has now generated positive same-store sales in each of the last six years.
Berke Bakay, President and CEO of Kona Grill, commented, “Similar to many of our restaurant peers, same-store sales for the fourth quarter were weaker than we had anticipated as we too did not experience a post-election day sales bounce. Weak retail traffic, inclement weather and an influx of new competition as well as continued weakness in oil-impacted markets contributed to the soft sales. In addition, we cycled over our most difficult quarterly comparison of 2016 which made achieving positive same-store sales even more challenging.”
“We completed our 2016 development plans during the fourth quarter with openings in Huntsville, Alabama; Winter Park, Florida and San Antonio, Texas. For the full year, we added eight restaurants representing over 20% annual unit growth,” he continued.
“In 2017, our priorities are limiting development to three restaurant openings so that we can better digest our recent high growth and ramp up four-wall margins across the entire system, dramatically lowering our capital expenditures for increased financial flexibility, and making effective use of our upsized credit facility for the benefit of all shareholders, including acting opportunistically upon our $5 million stock repurchase plan,” he concluded.
ICR Conference Participation
Berke Bakay, President and CEO, and Christi Hing, CFO, will be presenting at the 2017 ICR Conference at the JW Marriott Orlando Grande Lakes in Orlando, FL on Tuesday, January 10, 2017 at 10:00 am Eastern Time. Investors and interested parties may view the investor presentation by visiting the investor relations section within the Company’s website at www.konagrill.com.
About Kona Grill
Kona Grill features a global menu of contemporary American favorites, award-winning sushi, and specialty cocktails in an upscale casual atmosphere. Kona Grill owns and operates 45 restaurants, guided by a passion for quality food and exceptional service. Restaurants are located in 23 states and Puerto Rico: Alabama (Huntsville); Arizona (Chandler, Gilbert, Phoenix, Scottsdale); California (Irvine); Colorado (Denver); Connecticut (Stamford); Florida (Miami, Tampa, Sarasota, Winter Park); Georgia (Alpharetta); Hawaii (Honolulu); Illinois (Lincolnshire, Oak Brook); Indiana (Carmel); Idaho (Boise); Louisiana (Baton Rouge); Maryland (Baltimore); Michigan (Troy); Minnesota (Eden Prairie, Minnetonka); Missouri (Kansas City); Nebraska (Omaha); New Jersey (Woodbridge); Nevada (Las Vegas(2)); Ohio (Cincinnati, Columbus); Puerto Rico (San Juan); Tennessee (Franklin); Texas (Austin, Dallas, El Paso, Friendswood, Fort Worth, Houston, Plano, San Antonio(2), The Woodlands); Virginia (Arlington, Fairfax, Richmond). For more information, visit www.konagrill.com.
Forward-Looking Statements
Various remarks we make about future expectations, plans, and prospects for the Company constitute forward-looking statements for purposes of the Safe Harbor provisions under the Private Securities Litigation Reform Act of 1995. 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. These statements relate to our future financial performance and development plans, including but not limited to those relating to our sales trends, projected earnings, expenses, and capital expenditures, expectations of new store openings and availability of capital. 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. Investors are referred to the full discussion of risks and uncertainties associated with forward-looking statements and the discussion of risk factors contained in the company's filings with the Securities and Exchange Commission.
Kona Grill Investor Relations Contact:
Kona Grill, Inc.
Christi Hing, Chief Financial Officer
(480) 922-8100
investorrelations@konagrill.com
Exhibit 99.2
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