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Kahala Corp. (OTCBB: KAHA) today announced its earnings for the first nine months of 2002 totaled $641,966, or $0.03 per basic share and $0.02 per diluted share, compared to net income of $125,412, or ($0.06) per basic and diluted share during the same nine month period of 2001. For the three months ending Sept. 30, 2002, the company reported net income of $274,099, or $0.01 per share, compared to earnings of $5,939, or ($0.02) per share, during the third quarter of 2001.
Kevin Blackwell, the company's chairman and CEO, remarked, "We are extremely pleased with the company's financial results for the third quarter and the first nine months of 2002. These financial results validate Kahala's business model of growing its concepts through area developers across the United States and expanding our portfolio of brands through strategic acquisitions, including our recent acquisition of Ranch * 1 that was completed in May 2002."
The company also reported that a total of six new outlets of the company's concepts opened since July 1, 2002.
For both the nine and three month periods ending Sept. 30, 2001, the net loss per share, despite the positive earnings, for both the nine and three month periods ending Sept. 30, 2001 was caused by dividends paid on the company's preferred stock during such periods of 2001. As previously announced, the company's board of directors approved the suspension of the quarterly dividends payable on all three of the company's outstanding classes of preferred stock effective Dec. 1, 2001 until further notice. Since inception, the dividend on all three classes of the company's preferred stock had been paid in shares of the company's common stock. Simultaneous with the board of directors' action, the holders of the company's Series A, B, and C preferred stock each waived the cumulative feature of their preferred shares during this dividend suspension period.
Kahala Corp. owns and franchises Ranch * 1, Surf City Squeeze, Frullati Cafe & Bakery; and Rollerz. Ranch * 1 owns, operates, and franchises quick service restaurants under the Ranch * 1 name that specialize in the sale of grilled and fried chicken sandwiches. Both Surf City Squeeze and Frullati Cafe & Bakery are franchisors of juice bars/smoothie stores and healthy food. Rollerz is a franchisor and operator of retail stores serving gourmet rolled sandwiches, signature soups and salads, and blended fruit drinks/smoothies. There are currently approximately 260 outlets open nationwide of the company's four concepts.