Kura Sushi Usa, Inc. · NASDAQ:KRUS
Kura Sushi Usa — Craig-Hallum Conference 2020
26 slides from Kura Sushi Usa's conference presentation, Nov 17, 2020
Slide 1: Craig-Hallum Conference: Kura Sushi management presentation
CRAIG-HALLUM CONFERENCE, NOVEMBER 11/17/2020 Kura Sushi management presentation Exhibit 99.1 KURA REVOLVING SUSHI BAR
Slide 2: Disclaimer
Disclaimer This presentation has been prepared for informational purposes only. No money or other consideration is being solicited, and if sent in response, will not be accepted. This presentation shall not constitute an offer to sell, or the solicitation of an offer to buy, any securities, nor shal
Slide 3: Section 1: Company Overview
Section 1: company Overview Section 1 Company Overview Section 2 Growth and Near-term Strategy Section 3 Financial Appendix A Definitions Appendix B Reconciliations PRESENTERS Hajime “Jimmy” Uba President / CEO Koji Shinohara CFO KURA REVOLVING SUSHI BAR 2
Slide 4: Company Overview: Kura experience video
COMPANY overview Kura experience video KURA REVOLVING SUSHI BAR 3
Slide 5: Built On Our Distinctive Service Model & Technology
Built On Our Distinctive Service Model & Technology COMPANY Overview The kura experience Revolving conveyor belt On-demand screen & express belt Bikkura-pon rewards machine Other elements Guests can begin dining as soon as they are seated Curated selection of beautifully crafted plates All plates ar
Slide 6: System footprint and Anticipated New Markets
Fiscal Years 2021, 2022 Company overview System footprint and Anticipated New markets GA TX CA IL NJ NV DC WA MI FL AZ OR NY PA MA MD HI Legend Existing Market Currently Under Construction Identified Market KURA REVOLVING SUSHI BAR 5
Slide 7: Financial snapshot
Non-GAAP: See Appendix B for Reconciliation COMPANY overview Financial snapshot Historical unit growth Recent financial performance (US$ in thousands) Fiscal Year 2019 Fiscal Year 2020 FY19 Q4 FY20 Q4 Average Unit Volumes $3,498 $1,942 n.a. n.a. Comparable Restaurant Sales Growth 6.2% (37.8)% 9.4% (
Slide 8: Section 2: Growth and Near-term Strategy
Section 2: growth and Near-term strategy Section 1 Company Overview Section 2 Growth and Near-term Strategy Section 3 Financial Appendix A Definitions Appendix B Reconciliations KURA REVOLVING SUSHI BAR 7
Slide 9: Growth and Near-term Strategy
GROWTH AND NEAR-TERM Strategy Our sales levels, as compared to prior year, continue to track proportionately to dining room capacity restrictions, indicating strong, ongoing consumer demand. Automation-heavy restaurant model will become an increasingly meaningful competitive advantage as labor infla
Slide 10: Near-term strategies
GROWTH AND NEAR-TERM Strategy Near-term strategies KURA REVOLVING SUSHI BAR 9 POST-PANDEMIC RECOVERY UNIT GROWTH NEW REVENUE STREAMS G&A LEVERAGING GUEST AFFINITY KURA EXPERIENCE UPGRADES RUNWAY EXTENSION REAL ESTATE DEVELOPMENT VERSION 2.0
Slide 11: Growth and Near-term Strategy: recent progress
GROWTH AND NEAR-TERM Strategy Three stores have been opened to-date in Q1 of fiscal year 21, allowing us to enter two new markets. Fort Lee, NJ – opened in September and is significantly outperforming expectations Washington, D.C., opened in November. Koreatown, Los Angeles, opened in November. Upgr
Slide 12: Development: New unit pipeline
GROWTH AND NEAR-TERM Strategy: DEVELOPMENT New unit pipeline Robust pipeline for fiscal years 21 and 22 Planned markets and leases under negotiation Under construction Executed leases Sherman Oaks, CA Bellevue, WA Aventura, FL Troy, MI Stonestown Galleria, San Francisco, CA Watertown, MA Oakbrook, I
Slide 13: Growth and near-term strategy: revenue
Growth and near-term strategy: revenue Historically, our focus has been on driving revenue through in-restaurant sales. As we believe a significant component of our consumer appeal is the Kura Experience, building off-premises sales were a low priority, with the off-premises sales mix representing o
Slide 14: Growth and near-term strategy: revenue (continued)
(continued) Growth and near-term strategy: revenue We are now running a pilot program with Square, as their fees, particularly for pickup, are materially lower than Grubhub. We can also now offer mobile ordering through our existing app via Square’s ordering page, pending update approval from the Ap
Slide 15: Summary of Store Operation Status
(All dates refer to the beginning of each month) Company overview Summary of Store operation Status June July August September October As of 11/15 California Stores (14 units as of June) Indoor + Outdoor 12 0 1 1 5 5 Outdoor + Off-Prem 0 3 10 10 7 9 (Koreatown open) Off-Prem Only 0 11 1 0 0 0 Closed
Slide 16: Summary of subsequent events
(1) Excludes pre-opening labor costs and employee related insurance costs. Company overview Summary of subsequent events August September October Revenue $2.2M $2.9M $3.4M Comp Sales (66)% (53)% (44)% Labor Margins 48%(1) 42%(1) 40%(1) Store Performance FY20 Q4 September October Grubhub Sales $35K $
Slide 17: Cash burn analysis
Company overview Cash burn analysis Expenditure Bucket FY20 Q4 (A) FY21 Q1 (E) FY21 Full Year (E) Capex $400K $450K $175-$225K G&A $225K $300K $250K RL Cash Burn $225K $50K - Total $850K $800K - KURA REVOLVING SUSHI BAR 16
Slide 18: Section 3: Financial Section Overview
Section 3: Financial Section 1 Overview Section 2 Growth and Near-term Strategy Section 3 Financial Appendix A Definitions Appendix B Reconciliations KURA REVOLVING SUSHI BAR 17
Slide 19: Condensed statements of operations
Financial Condensed statements of operations (in thousands, except per share amounts) Three Months Ended Aug 31, Fiscal Year Ended Aug 31, 2020 2019 2020 2019 Sales $ 5,528 $ 18,753 $ 45,168 $ 64,245 Restaurant operating costs: Food and beverage costs 1,841 6,168 14,709 21,048 Labor and related cost
Slide 20: Selected Balance Sheet Data and Selected Operating Data
Financial Selected Balance Sheet Data and Selected Operating Data (in thousands, except restaurants and percentages) Aug 31, 2020 Aug 31, 2019 Selected Balance Sheet Data: Cash and cash equivalents $ 9,259 $ 38,044 Total assets $ 118,379 $ 76,410 Total liabilities $ 72,666 $ 14,229 Total stockholder
Slide 21: Appendix A: Definitions
Appendix A: definitions Section 1 Company Overview Section 2 Growth and Near-term Strategy Section 3 Summary Appendix A Definitions Appendix B Reconciliations KURA REVOLVING SUSHI BAR 20
Slide 22: Appendix A: Definitions
Appendix a EBITDA, a non-GAAP measure, is defined as net income (loss) before interest, income taxes and depreciation and amortization. Adjusted EBITDA, a non-GAAP measure, is defined as EBITDA plus stock-based compensation expense, non-cash lease expense, asset disposals, closure costs and restaura
Slide 23: Appendix A: Non-GAAP measures
Appendix a To supplement the condensed financial statements presented in accordance with U.S. generally accepted accounting principles (“GAAP”), certain financial measures, such as EBITDA, adjusted EBITDA, adjusted EBITDA margin, restaurant-level operating profit (loss) and restaurant-level operatin
Slide 24: Appendix B: Reconciliations
Appendix b: reconciliations Section 1 Company Overview Section 2 Growth and Near-term Strategy Section 3 Summary Appendix A Definitions Appendix B Reconciliations KURA REVOLVING SUSHI BAR 23
Slide 25: Reconciliation of GAAP Net Income (Loss) to EBITDA and Adjusted EBITDA
(in thousands; unaudited) Appendix B Reconciliation of GAAP Net Income (Loss) to EBITDA and Adjusted EBITDA (1)Effective August 31, 2020, the Company no longer excludes pre-opening costs and cash-based pre-opening lease expense from its computation of Adjusted EBITDA. The non-cash portion of pre-ope
Slide 26: Reconciliation of GAAP Operating Income (Loss) to Restaurant-level Operating Profit
(in thousands; unaudited) Appendix B Reconciliation of GAAP Operating Income (Loss) to Restaurant-level Operating Profit (Loss) (1)Effective August 31, 2020, the Company no longer excludes pre-opening costs and cash-based pre-opening lease expense from its computation of Adjusted EBITDA. The non-cas