Business
Kura Sushi USA Announces Fiscal Third Quarter 2020 Financial Results
- Provides COVID-19 Update - IRVINE, Calif., July 14, 2020 (GLOBE NEWSWIRE) -- Kura Sushi USA, Inc. (“Kura Sushi” or the “Company”) (NASDAQ: KRUS), a
About this update from Kura Sushi Usa, Inc.
[{"type":"text","content":"- Provides COVID-19 Update -\n IRVINE, Calif., July 14, 2020 (GLOBE NEWSWIRE) -- Kura Sushi USA, Inc. (“Kura Sushi” or the “Company”) (NASDAQ: KRUS), a technology-enabled Japanese restaurant concept, today provided a COVID-19 business update and reported fiscal third quarter financial results for the period ended May 31, 2020. COVID-19 Business Update As previously announced, in conjunction with the impact of COVID-19 and state and local guidelines for public activities, the Company temporarily closed all 25 of its restaurants across five states as of March 18, 2020. While the Company began to re-open certain restaurants beginning on May 22, 2020, its restaurants were largely closed during the fiscal third quarter ended May 31, 2020. Of the Company’s 25 restaurants open prior to the COVID-19 related shutdown, 11 restaurants are currently operating at reduced indoor seating capacities, and 14 restaurants in California are currently offering takeout only after reclosing its indoor dining operations on July 1, 2020 due to new government restrictions. In response to COVID-19, the Company has increased cleaning and sanitizing protocols at its restaurants. For its restaurant employees, the Company has implemented additional training and operating processes, increased handwashing procedures, provided face masks and gloves, and is requiring each employee to pass a health screening process, which includes a temperature check, before the start of each shift. As of July 13, 2020, the Company has cash and cash equivalents of approximately $14 million and no debt. Additionally, the Company has not borrowed on the $20 million revolving line of credit established in April 2020 with Kura Sushi, Inc., a majority stockholder. As permitted under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), the Company recognized a $1.6 million employee retention credit during the fiscal third quarter ended May 31, 2020. Additionally, the Company assessed the realizability of its deferred tax assets and recorded a valuation allowance of $1.1 million during the fiscal third quarter ended May 31, 2020. Hajime Uba, President and Chief Executive Officer of Kura Sushi, stated, “We are excited to be serving our customers again and have successfully reopened all 25 restaurants in varying capacities. While the operating environment remains extr...