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KURA REVOLVING SUSHI BAR Kura Sushi USA Announces Fiscal Third Quarter 2021 Financial Results July 13 , 2021 -- IRVINE , Calif . , July 13 , 2021 ( 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 2021 financial results for the period ended May 31 , 2021 . COVID - 19 Business Update As of May 31 2021 , the Company had all 31 of its restaurants open with indoor dining capacities of 50 % to 100 % , depending on local requirements . As of today , the Company has all 32 restaurants operating at an indoor capacity of 100 % , including one new restaurant opened in the fiscal fourth quarter . During the third quarter of 2021 , the Company borrowed $ 5.0 million on its revolving line of credit and as of May 31 , 2021 , the Company had cash and cash equivalents of $ 4.7 million and $ 17.0 million of debt . As permitted under the Coronavirus Aid , Relief , and Economic Security Act ( the " CARES Act " ) , the Company recognized a $ 6.3 million employee retention credit during the fiscal third quarter ended May 31 , 2021 . Fiscal Third Quarter 2021 Highlights * • Total sales were $ 18.5 million compared to $ 2.8 million in the third quarter of 2020 ; ● Operating income was $ 0.9 million , compared to an operating loss of $ 8.0 million in the third quarter of 2020 ; • Net income was $ 0.8 million , or $ 0.09 per diluted share , compared to net loss of $ 9.2 million , or ( $ 1.10 ) per diluted share , in the third quarter of 2020 . Adjusted net loss * was $ 4.5 million , or ( $ 0.54 ) per diluted share , compared to an adjusted net loss * of $ 10.7 million or ( $ 1.29 ) per diluted share , in the third quarter of 2020 ; • Restaurant - level operating profit * was $ 1.1 million ; ● Adjusted EBITDA * was ( $ 2.6 ) million ; and • One new restaurant opened during the third quarter of 2021 . Adjusted net loss , Restaurant - level operating profit ( loss ) and Adjusted EBITDA are non - GAAP measures and are defined below under " Key Financial Definitions " . Please see the reconciliation of non - GAAP measures accompanying this release . See also " Non - GAAP Financial Measures " below . Hajime Uba , President and Chief Executive Officer of Kura Sushi , stated , " We are thrilled with the continued recovery of our restaurants during the fiscal third quarter , characterized by meaningful improvement in sales and restaurant - level profitability , as we slowly increased our dining room capacity in accordance with the state and local regulations . Moreover , our sales recovery has continued thus far into fiscal fourth quarter with the re - opening of California in mid - June . I'm pleased to say that today , all of our restaurants are operating at full capacity and our team members are ready to capitalize on our guests ' pent - up demand for the full Kura experience . " Uba added , " Fiscal 2021 has been our busiest , and possibly our most productive development year ever as we successfully opened seven new restaurants and entered five new markets . This was truly an impressive feat by our development team given the challenging macro environment . As we look into fiscal 2022 , we are benefitting from new real estate opportunities created by the pandemic , and when coupled with our rigorous site selection process , we believe we have the most exciting pipeline of new restaurants since we entered the U.S. Fiscal 2021 was a record development year for Kura , and we expect to maintain this growth momentum in fiscal 2022. " Review of Fiscal Third Quarter 2021 Financial Results Total sales were $ 18.5 million compared to $ 2.8 million in the third quarter of 2020. Comparable restaurant sales increased 456 % for the third quarter of 2021. Comparable restaurant sales decreased 19 % when compared to the third quarter of 2019 . Food and beverage costs as a percentage of sales was 31.7 % compared to 38.0 % in the third quarter of 2020. The decrease is primarily a result of lower inventory spoilage . Labor and related costs as a percentage of sales decreased to 8.9 % from 126.3 % in the third quarter of 2020. In the third quarter of 2021 , a $ 5.8 million employee retention credit was recognized under the CARES Act and extension thereof compared to $ 1.6 million in the third quarter of 2020 . Excluding the $ 5.8 million employee retention credit and $ 0.7 million in retention and new hire bonuses , labor and related costs would have been 36.6 % in the third quarter of 2021. The decrease as a percentage of sales was primarily due to the costs of retaining certain restaurant employees when there were no sales during the temporary restaurant closures in the third quarter of 2020 . Occupancy and related expenses were $ 1.9 million compared to $ 1.6 million in the third quarter of 2020. The increase is primarily due to six new restaurants opened since the third quarter of 2020 . Other costs as a percentage of sales decreased to 14.7 % compared to 34.3 % in the third quarter of 2020. The decrease was primarily due to the fixed cost deleverage as a result of a decrease in sales in the third quarter of 2020 . General and administrative expenses were $ 4.3 million compared to $ 2.9 million in the third quarter of 2020. In the third quarter of 2021 , a $ 0.5 million employee retention credit was recognized under the CARES Act and extension thereof . Excluding the impact of the $ 0.5 million employee retention