Kura Sushi USA Inc (NASDAQ:KRUS) Q2 2020 Earnings Conference Call - Final Transcript

Apr 14, 2020 • 05:00 pm ET


Kura Sushi USA Inc (NASDAQ:KRUS) Q2 2020 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen, and thank you for standing by. Welcome to the Kura Sushi USA, Inc. Fiscal Second Quarter 2020 Earnings Conference Call. [Operator instructions] Please note that this conference is being recorded today, April 14, 2020.

On the call today, we have Hajime Jimmy Uba, President and Chief Executive Officer; Koji Shinohara, Chief Financial Officer; and Benjamin Porten, Investor Relations Manager.

And now I would like to turn the conference over to Mr. Porten. Thank you. Please begin.

Benjamin Porten

Thank you, operator. Good afternoon, everyone, and thank you all for joining. By now, everyone should have access to our fiscal second quarter 2020 earnings release. It can be found at www.kurasushi.com in the Investor Relations section. A copy of the earnings release has also been included in an 8-K we submitted to the SEC.

Before we begin our formal remarks, I need to remind everyone that part of our discussion today will include forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not guarantees of future performance, and therefore you should not put undue reliance on them. These statements are also subject to numerous risks and uncertainties that could cause actual results to differ materially from what we expect. We refer all of you to our recent SEC filings for a more detailed discussion of the risks that could impact our future operating results and financial condition.

Also during today's call, we will discuss certain non-GAAP measures, which we believe can be useful in evaluating our performance. The presentation of this additional information should not be considered in isolation nor as a substitute for results prepared in accordance with GAAP, and the reconciliation to comparable GAAP measures are available in our earnings release.

With that out of the way, I would like to turn the call over to Jimmy.

Jimmy Uba

Thank you, Ben, and thank you, everyone, for joining us today. Before we get started, I would like to say that I hope all of you on the call, your families and your friends are healthy. And to those of you who have been impacted directly by COVID-19, I hope for a speedy recovery for you or your loved ones. Today's call was scheduled for what would normally be a discussion of our fiscal second quarter financial results and ongoing operating initiatives.

And as you know, these are not normal times, so I'll touch only briefly on the second quarter before moving on to a review of our current operations. Our second quarter earnings release contains specific information about the quarter's results. And of course, we will be happy to entertain any questions about earnings during today's Q&A. We were pleased with our second quarter results, which included revenue growth of 28%, driven by a 10.8% increase in comparable restaurant sales.

Additionally, our loss per diluted earnings per share of $0.02 was in line with our flattish expectations that we provided on our fiscal first quarter call. Exiting the second quarter, which