Scottsdale, Ariz.-based Kahala Corp, an operator of five restaurant concepts, has posted earnings of US$250,548, US$0.01 a share, for its Q2 2002, compared to US$9,558, US($0.02) a share, during the Q2 2001.

For the H1 2002, Kahala reported net income of US$367,867 or US$0.02 per share, compared to US$119,473, or US($0.04), year on year. The net loss per share, despite the positive earnings, for both the Q2 and H1 2001 was caused by dividends paid on the company's preferred stock during such periods of 2001.

The firm's board approved the suspension of the quarterly dividends payable on all three of its's outstanding classes of preferred stock effective 1 December 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 director's 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 also announced that it completed its acquisition of 100% of Ranch * 1 Inc. during the Q2 2002, bringing 48 more quick service restaurant units to the company. The company also reported that a total of ten new outlets of its concepts opened during the Q2 2002.