Benihana Inc. Comments On Preliminary Fiscal First Quarter Operating Results.Business Editors MIAMI--(BUSINESS WIRE)--Aug. 15, 2002 Benihana Benihana Can refer to:
in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :BNHNA and BNHN) announced today that for the first fiscal quarter ended July July: see month. 21, 2002, it expects to report an increase in net income of approximately 14%, on a gain in restaurant sales of approximately 12.4% when compared to the results of the corresponding period of the prior year. Owing to owing to prep. Because of; on account of: I couldn't attend, owing to illness. owing to prep → debido a, por causa de an increase of 25.8% in average shares and equivalents outstanding, per share net income for the period is expected to amount to approximately $.29 to $0.31, fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. , compared with $0.33 per share, fully diluted, in the corresponding year-earlier period. The Company said that total restaurant sales for the first fiscal quarter increased to approximately $56.7 million, from $50.5 million in the corresponding year ago period, and that comparable restaurant sales gained approximately 5% for the period. Benihana, stated however, that remodeling remodeling /re·mod·el·ing/ (re-mod´el-ing) reorganization or renovation of an old structure. bone remodeling programs at existing restaurants and new restaurant openings, which involved more time to complete than had been anticipated, negatively affected sales growth. The Company also said that the increase in net income was moderated by higher labor and related costs, particularly an unusually large increase in both the number and amounts of claims in the Company's self-insured self-insured Self fund Health insurance adjective Referring to the practice of carrying an individual health insurance policy for oneself; self insurance is usually more expensive than group insurance health plan. Recently legislated increases in minimum wages not fully offset by price increases during the quarter also affected results. Benihana has instituted menu price increases in selected markets to compensate for the wage increases, a process that is continuing, and it has adjusted upward the share of health care premiums contributed by employees. The increase in average share and equivalents outstanding, to 9.4 million common and Class A shares, compared with 7.5 million common and Class A shares a year ago, chiefly reflected the Company's successful offering of 1 million Class A common shares in December December: see month. 2001. Proceeds from the offering were applied initially to reduce debt until the funds are more effectively utilized in the Company's planned growth. Per share figures are adjusted for the Company's recent 15% stock dividend payable in shares of Class A stock. "While the results in the first fiscal quarter were respectable, we are moving aggressively to further improve our Company's overall performance," said Joel A. Schwartz, President. "Customer traffic remains strong, sales continue to grow very satisfactorily and the recent completion of several major refurbishment re·fur·bish tr.v. re·fur·bished, re·fur·bish·ing, re·fur·bish·es To make clean, bright, or fresh again; renovate. re·fur and new restaurant projects, in addition to new units now in development, will certainly benefit results as we move forward. As a result of the measures we are implementing, we remain confident that fiscal 2003 for Benihana will be a solid year of growth." Benihana expects to report complete financial operating results for the fiscal first quarter of 2003 on Friday, August 23, 2002, on which day it will hold a teleconference at 11 A.M. (E.D.T.) that will also be available via the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the . Details will be forthcoming. About Benihana Benihana, now in its 38th year since its founding, is one of the nation's largest chains of Asian restaurants and currently operates 61 restaurants nationwide, including 54 Benihana teppanyaki restaurants, five Haru sushi restaurants and two Doraku sushi restaurants. Three Benihana teppanyaki restaurants are currently under construction. In addition, Benihana has 18 franchised teppanyaki restaurants in the U.S. and Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. . Statements in this press release concerning the Company's business outlook or future economic performance, anticipated profitability, revenues, expenses or other financial items, together with other statements that are not historical facts, are "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " as that term is defined under Federal Securities Laws. "Forward-looking statements" are subject to risks, uncertainties and other factors which could cause actual results to differ materially from those stated in such statements. Such risks, uncertainties and factors include, but are not limited to, changes in customers' tastes and preferences, acceptance of the Company's concepts in new locations, obtaining qualified personnel, industry cyclicality, fluctuations in customer demand, the seasonal nature of the business, fluctuations of commodities costs, the ability to complete construction of new units in a timely manner, obtaining governmental permits on a reasonably timely basis, and general economic conditions, as well as other risks detailed in the Company's filings with the Securities and Exchange Commission. The Company disclaims any obligations to update any forward-looking statement as a result of developments occurring after the date of this press release. |
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