Kona Grill, Inc. (KONA) saw its loss widen to $3.37 million, or $0.33 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $1.66 million, or $0.15 a share. Revenue during the quarter grew 15.14 percent to $45.22 million from $39.28 million in the previous year period. Gross margin for the quarter contracted 177 basis points over the previous year period to 63.22 percent. Operating margin for the quarter stood at negative 6.73 percent as compared to a negative 4.02 percent for the previous year period.
Operating loss for the quarter was $3.04 million, compared with an operating loss of $1.58 million in the previous year period.
"First quarter results are indicative of both the challenging operating environment and the changing retail and restaurant landscape. Our same-store sales decreased following six consecutive years of positive same-store sales as we faced our most difficult comparison of the year. On a two-year basis, however, flat same-store sales outpaced many of our casual dining peers. We believe this reflects our relatively stronger position within the industry," said Berke Bakay, president and chief executive officer of Kona Grill.
For fiscal year 2017, Kona Grill, Inc. forecasts revenue to be in the range of $190 million to $200 million.
Working capital remains negative
Working capital of Kona Grill, Inc. was negative $10.18 million on Mar. 31, 2017 compared with negative $10.95 million on Mar. 31, 2016. Current ratio was at 0.37 as on Mar. 31, 2017, up from 0.37 on Mar. 31, 2016. Days sales outstanding were almost stable at 2 days for the quarter, when compared with the last year period.
Debt increases substantially
Kona Grill, Inc. has witnessed an increase in total debt over the last one year. It stood at $31.96 million as on Mar. 31, 2017, up 539.10 percent or $26.96 million from $5 million on Mar. 31, 2016. Kona Grill, Inc. has witnessed an increase in long-term debt over the last one year. It stood at $31.96 million as on Mar. 31, 2017, up 539.10 percent or $26.96 million from $5 million on Mar. 31, 2016. Total debt was 30.32 percent of total assets as on Mar. 31, 2017, compared with 4.84 percent on Mar. 31, 2016. Debt to equity ratio was at 1.27 as on Mar. 31, 2017, up from 0.08 as on Mar. 31, 2016. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
