Benihana Inc. Reports Fiscal Fourth Quarter & Full Year 2006 Results; Conference Call Today at 5:00 PM EDT.MIAMI Miami, cities, United States Miami (mīăm`ē, –ə). 1 City (1990 pop. 358,548), seat of Dade co., SE Fla., on Biscayne Bay at the mouth of the Miami River; inc. 1896. -- 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), operator of the nation's largest chain of Japanese Japanese (jăp'ənēz`), language of uncertain origin that is spoken by more than 125 million people, most of whom live in Japan. There are also many speakers of Japanese in the Ryukyu Islands, Korea, Taiwan, parts of the United States, and theme and sushi restaurants, today reported results for its 13-week fiscal fourth quarter and 52-week fiscal year ended March 26, 2006. Highlights for the Company's fiscal fourth quarter 2006 relative to the same period a year ago include: --Total restaurant sales increased 11.8% to $60.8 million --Company-wide same store sales Same Store Sales A statistic used in retail industry analysis. It compares sales of stores that have been open for a year or more. Notes: This statistic allows investors to determine what portion of new sales has come from sales growth and what portion from the opening of increased 10.3% --Restaurant operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. increased 14.6% to $12.3 million --Operating earnings were $5.7 million, a 47.5% increase over the comparable period. The 2005 amount included $2.7 million of impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charges --Net income increased 75.7% to $3.9 million and diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of increased 59.1% to $0.35 as compared to the 2005 amounts Highlights for the Company's fiscal year 2006 relative to the same period a year ago include: --Total restaurant sales increased 12.6% to $244.0 million --Company-wide same store sales increased 8.7% --Restaurant operating profit increased 24.7% to $45.6 million --Operating earnings were $23.1 million, a 75.0% increase over the comparable period. The 2005 amount included $2.7 million of impairment charges --Net income increased 86.2% to $14.6 million and diluted earnings per share increased 76.6% to $1.36 as compared to the 2005 amounts "Our financial results demonstrate the appeal of our brands in sustaining positive guest counts in the current consumer environment, while at the same time strong execution of our team members in exhibiting effective cost control across all of our restaurant concepts. We hope to build on the positive momentum we experienced in fiscal 2006 as we make plans for the next generation for our Benihana teppanyaki concept, and generate what we believe will be a solid and substantial return on invested capital for our shareholders. As several renovated restaurants begin to resume operations over the coming months, we intend to shed shed rural building used for agricultural pursuits. shed hands miscellaneous workers in a shearing shed at shearing time, i.e. persons other than the shearers, wool classers. more light on their incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. performance so that our shareholders can better appreciate how we are building a stronger foundation for our core brand. We are confident that our investments in the revitalization re·vi·tal·ize tr.v. re·vi·tal·ized, re·vi·tal·iz·ing, re·vi·tal·iz·es To impart new life or vigor to: plans to revitalize inner-city neighborhoods; tried to revitalize a flagging economy. initiative far outweigh out·weigh tr.v. out·weighed, out·weigh·ing, out·weighs 1. To weigh more than. 2. To be more significant than; exceed in value or importance: The benefits outweigh the risks. the costs and will allow us to better capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. our leadership position in Asian cuisine Asian cuisine is a term sometimes used in the West as an umbrella term for the various cuisines of East Asia and Southeast Asia and for fusion dishes based on combining them. It does not usually include Polynesian, Central Asia or Middle Eastern cuisine. ," said Joel Joel, book of the Bible Joel, prophetic book of the Bible. It is a collection of the oracles of an otherwise unknown prophet, dated variously from the 9th to the 3d cent. B.C., though a date in c.400 B.C. is likely. A. Schwartz Schwartz is a Canadian spices brand. It is also a common surname and may refer to:
Fiscal Fourth Quarter 2006 Results For the fiscal fourth quarter 2006, total revenues increased 11.8%, to $61.2 million, compared with $54.8 million in the year-ago period. Total restaurant sales increased 11.8% to $60.8 million for the quarter from $54.4 million in the comparable quarter of the previous year. Company-wide comparable restaurant sales were 10.3%, including 8.3% at Benihana teppanyaki, 30.5% at RA Sushi, and 8.1% at Haru. Additionally, locations that were closed temporarily for rejuvenation Rejuvenation Aeson in extreme old age, restored to youth by Medea. [Rom. Myth.: LLEI, I: 322] apples of perpetual youth by tasting the golden apples kept by Idhunn, the gods preserved their youth. [Scand. Myth. resulted in lost restaurant operating profits for 25 weeks. During the fiscal fourth quarter, the Company opened one new RA Sushi in Houston, Texas “Houston” redirects here. For other uses, see Houston (disambiguation). Houston (pronounced /'hjuːstən/) is the largest city in the state of Texas and the and reopened its previously remodeled Benihana teppanyaki restaurant in Short Hills, New Jersey. Restaurant operating profit was$12.3 million, or 20.2% of restaurant sales, compared to $10.7 million, or 19.7% of restaurants sales a year-ago. The Company benefited from improved sales leverage and more favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. food and beverage F&B is a common abbreviation in the United States and Commonwealth countries, including Hong Kong. F&B is typically the widely accepted abbreviation for "Food and Beverage," which is the sector/industry that specializes in the conceptualization, the making of, and delivery of foods. and labor expenses, particularly at its Benihana teppanyaki and RA Sushi restaurants. Total operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. were $55.5 million, or 91.3% of restaurant sales, compared to $50.9 million, or 93.6% of restaurant sales last year. Included in the current year total was approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $1.1 million, or $0.06 per 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. share, in additional depreciation expense related to shortening the useful lives for those restaurants affected by the Company's ongoing renovation and revitalization program. During the fiscal fourth quarter, the Company reversed a total of $235,000 in minority interest which had been previously recorded in the second and third fiscal quarters of 2006. In consultation with the Company's general counsel it was determined that the Company received effective ownership of the 20% minority interest in July July: see month. 2005 when the minority shareholder exercised the put option, although the transaction has yet to close. This reversal reversal n. the decision of a court of appeal ruling that the judgment of a lower court was incorrect and is reversed. The result is that the lower court which tried the case is instructed to dismiss the original action, retry the case, or is ordered to change its increased diluted earnings per share by $0.02 on an after-tax basis After-tax basis The comparison basis used to analyze the net after-tax returns on a corporate taxable bond and a municipal tax-free bond. in the fiscal fourth quarter, which represents amounts which would otherwise have been reflected in the second and third fiscal quarters of the year. Net income was $3.9 million, or $0.35 per fully diluted share, compared to $2.2 million, or $0.22 per diluted share. The prior year's fourth quarter results included approximately $2.7 million ($0.16 per diluted share) in impairment charges. The current year's fiscal fourth quarter had approximately 9.0% more average shares and equivalent shares outstanding than the previous similar period. Fiscal 2006 Results Total revenues for fiscal 2006 increased 12.5% to $245.6 million, compared to $218.3 million last year. Total restaurant sales increased 12.6% to $244.0 million for the quarter from $216.8 million in the year-ago period. Company-wide comparable restaurant sales were 8.7%, including 7.2% at Benihana teppanyaki, 29.9% at RA Sushi, and 2.8% at Haru. Additionally, restaurants that were closed temporarily for rejuvenation resulted in a loss of 54 restaurant operating weeks. Net income was $14.6 million, or $1.36 per fully diluted share, compared to $7.8 million, or $0.77 per diluted share. The prior year's results included approximately $2.7 million, or $0.16 per diluted share in impairment charges. The current fiscal year had approximately 5.2% more average shares and equivalent shares outstanding than the prior year. Financial Guidance For the 16-week fiscal first quarter 2007, the Company expects diluted earnings per share to be between $0.37 and $0.41, including the estimated impact of adopting SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System 123R ($0.01 per diluted share). During the quarter, the Company anticipates opening three restaurants, as well as reopening Reopening Treasury offerings of additional amounts of outstanding issues, rather than an entirely new issue. A reopened issue will always have the same maturity date, CUSIP number, and interest rate as the original issue. two additional renovated restaurants in Indianapolis Indianapolis (ĭn'dēənă`pəlĭs), city (1990 pop. 731,327), state capital and seat of Marion co., central Ind., on the White River; selected 1820 as the site of the state capital (which was moved there in 1825), inc. 1847. and Anaheim Anaheim (ăn`əhīm), city (1990 pop. 266,406), Orange co., S Calif., SE of Los Angeles; inc. 1870. Anaheim was founded by Germans in 1857 as an experiment in communal living. . The Memphis and Cleveland Cleveland, former county, England Cleveland, former county, NE England, created under the Local Government Act of 1972 (effective 1974). It was composed of the county boroughs of Hartlepool and Teeside and parts of the former counties of Durham and locations, which had been closed for renovations during the fiscal fourth quarter of 2006, have also recently reopened. The Company estimates that it will have approximately 60 to 65 lost restaurant operating weeks during the fiscal first quarter of 2007 because of the ongoing renovation program. Conference Call Today The Company will host a conference call to discuss its fourth quarter 2006 earnings results at 5:00 PM EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT . Hosting the call will be Joel A. Schwartz, President and CEO, Michael Michael, archangel Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. R. Burris, Senior V.P.-Finance and CFO See Chief Financial Officer. . The conference call can be accessed live over the phone by dialing 1-800-289-0573, or for international callers, 1-913-981-5544. A replay will be available one hour after the call through June June: see month. 22, 2006 and can be accessed by dialing 1-888-203-1112, or for international callers, 1-719-457-0820; the conference ID is 7432236. The call will also be webcast live from the Company's website at www.benihana.com under the investor relations Investor relations The process by which the corporation communicates with its investors. section. About Benihana Benihana Inc. (NASDAQ: BNHNA and BNHN), now in its 41st year, operates 75 restaurants nationwide, including 57 Benihana teppanyaki restaurants, seven Haru sushi restaurants, and eleven RA Sushi Bar Noun 1. sushi bar - a bar where sushi is served bar - a counter where you can obtain food or drink; "he bought a hot dog and a coke at the bar" restaurants. Under development at present are nine restaurants - three Benihana teppanyaki restaurants, one Haru restaurant, and five RA Sushi restaurants. In addition, eleven franchised Benihana teppanyaki restaurants are now open in the U.S. and seven in 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. and the Caribbean, while another two are under development.
Benihana Inc. and Subsidiaries
Condensed Consolidated Statements of Earnings
(Unaudited)
(in thousands except per share data)
Three Periods Ended
-------------------
$ %
26-Mar-06 27-Mar-05 Change Change
--------------------------------------
Revenues
Restaurant sales $60,796 $54,395 $6,401 11.8%
Franchise fees and royalties 426 383 43 11.2%
--------------------------------------
Total revenues 61,222 54,778 6,444 11.8%
--------------------------------------
Costs and Expenses
Cost of food and beverage sales 14,692 12,745 1,947 15.3%
Restaurant operating expenses 33,810 30,926 2,884 9.3%
Restaurant opening costs 591 637 -46 -7.2%
Marketing, general and
administrative expenses 6,437 3,942 2,495 63.3%
Impairment charge 0 2,668 -2,668 -100.0%
--------------------------------------
Total operating expenses 55,530 50,918 4,612 9.1%
--------------------------------------
Earnings from operations 5,692 3,860 1,832 47.5%
Interest (income) expense, net -116 56 -172 -307.1%
--------------------------------------
Earnings before income taxes
and minority interest 5,808 3,804 2,004 52.7%
Income tax provision 2,124 1,482 642 43.3%
--------------------------------------
Earnings before minority
interest 3,684 2,322 1,362 58.7%
Minority interest -235 92 -327 -355.4%
--------------------------------------
Net income 3,919 2,230 1,689 75.7%
Less: accretion of issuance
costs and preferred stock
dividends 250 132 118 89.4%
--------------------------------------
Net income attributable to
common stockholders $3,669 $2,098 $1,571 74.9%
======================================
Earnings Per Share
Basic earnings per common share $0.38 $0.23 $0.15 65.2%
======================================
Diluted earnings per common
share $0.35 $0.22 $0.13 59.1%
======================================
Weighted Average Shares
Outstanding
Basic 9,596 9,174 422 4.6%
======================================
Diluted 11,281 10,346 935 9.0%
======================================
Benihana Inc. and Subsidiaries
Condensed Consolidated Statements of Earnings
(Unaudited)
(in thousands except per share data)
Fiscal Year Ended
-------------------
$ %
26-Mar-06 27-Mar-05 Change Change
--------------------------------------
Revenues
Restaurant sales $244,032 $216,756 $27,276 12.6%
Franchise fees and royalties 1,521 1,575 -54 -3.4%
--------------------------------------
Total revenues 245,553 218,331 27,222 12.5%
--------------------------------------
Costs and Expenses
Cost of food and beverage sales 59,014 53,372 5,642 10.6%
Restaurant operating expenses 139,433 126,825 12,608 9.9%
Restaurant opening costs 1,270 1,304 -34 -2.6%
Marketing, general and
administrative expenses 22,693 20,939 1,754 8.4%
Impairment charge 0 2,668 -2,668 -100.0%
--------------------------------------
Total operating expenses 222,410 205,108 17,302 8.4%
--------------------------------------
Earnings from operations 23,143 13,223 9,920 75.0%
Interest expense, net -88 298 -386 -129.5%
--------------------------------------
Earnings before income taxes
and minority interest 23,231 12,925 10,306 79.7%
Income tax provision 8,491 4,520 3,971 87.9%
--------------------------------------
Earnings before minority
interest 14,740 8,405 6,335 75.4%
Minority interest 178 585 -407 -69.6%
--------------------------------------
Net income 14,562 7,820 6,742 86.2%
Less: accretion of issuance
costs and preferred stock
dividends 1,430 422 1,008 238.9%
--------------------------------------
Net income attributable to
common stockholders $13,132 $7,398 $5,734 77.5%
======================================
Earnings Per Share
Basic earnings per common share $1.40 $0.81 $0.59 72.8%
======================================
Diluted earnings per common
share $1.36 $0.77 $0.59 76.6%
======================================
Weighted Average Shares
Outstanding
Basic 9,364 9,154 210 2.3%
======================================
Diluted 10,671 10,147 524 5.2%
======================================
Benihana Inc. and Subsidiaries
Sales by Concept
(Unaudited)
(in thousands)
Three Periods Ended
-------------------
$ %
26-Mar-06 27-Mar-05 Change Change
--------------------------------------
Total restaurant sales by
concept:
Benihana $46,871 $43,653 $3,218 7.4%
Haru 6,661 5,486 1,175 21.4%
RA Sushi 6,783 4,816 1,967 40.8%
Sushi Doraku 481 440 41 9.3%
--------------------------------------
Total restaurant sales $60,796 $54,395 $6,401 11.8%
======================================
Comparable restaurant sales by
concept:
Benihana $45,544 $42,021 $3,523 8.3%
Haru 5,929 5,487 442 8.1%
RA Sushi 6,291 4,820 1,471 30.5%
Sushi Doraku 481 440 41 9.3%
--------------------------------------
Total comparable restaurant
sales $58,245 $52,768 $5,477 10.3%
======================================
Fiscal Year Ended
-------------------
$ %
26-Mar-06 27-Mar-05 Change Change
--------------------------------------
Total restaurant sales by
concept:
Benihana $189,797 $175,045 $14,752 8.4%
Haru 27,662 22,785 4,877 21.4%
RA Sushi 24,619 17,334 7,285 42.0%
Sushi Doraku 1,954 1,592 362 22.7%
--------------------------------------
Total restaurant sales $244,032 $216,756 $27,276 12.6%
======================================
Comparable restaurant sales by
concept:
Benihana $181,399 $169,158 $12,241 7.2%
Haru 23,428 22,783 645 2.8%
RA Sushi 22,529 17,338 5,191 29.9%
Sushi Doraku 1,954 1,593 361 22.7%
--------------------------------------
Total comparable restaurant
sales $229,310 $210,872 $18,438 8.7%
======================================
Benihana Inc. and Subsidiaries
Restaurant Operating Profit
(Unaudited)
(in thousands)
Three Periods Ended
-------------------
$ %
26-Mar-06 27-Mar-05 Change Change
--------------------------------------
Restaurant sales $60,796 $54,395 $6,401 11.8%
Cost of food & beverage sales 14,692 12,745 1,947 15.3%
--------------------------------------
Gross profit 46,104 41,650 4,454 10.7%
--------------------------------------
Restaurant operating expenses:
Labor and related costs 19,315 18,279 1,036 5.7%
Restaurant supplies 1,345 1,145 200 17.5%
Credit card discounts 1,085 955 130 13.6%
Utilities 1,451 1,262 189 15.0%
Occupancy costs 3,198 3,176 22 0.7%
Depreciation and amortization 3,431 2,489 942 37.8%
Other restaurant operating
expenses 3,985 3,620 365 10.1%
--------------------------------------
Total restaurant operating
expenses 33,810 30,926 2,884 9.3%
--------------------------------------
Restaurant operating profit $12,294 $10,724 $1,570 14.6%
======================================
Fiscal Year Ended
-------------------
$ %
26-Mar-06 27-Mar-05 Change Change
--------------------------------------
Restaurant sales $244,032 $216,756 $27,276 12.6%
Cost of food & beverage sales 59,014 53,372 5,642 10.6%
--------------------------------------
Gross profit 185,018 163,384 21,634 13.2%
--------------------------------------
Restaurant operating expenses:
Labor and related costs 81,398 76,026 5,372 7.1%
Restaurant supplies 5,065 4,313 752 17.4%
Credit card discounts 4,450 3,871 579 15.0%
Utilities 6,084 5,239 845 16.1%
Occupancy costs 14,204 12,830 1,374 10.7%
Depreciation and amortization 11,467 9,607 1,860 19.4%
Other restaurant operating
expenses 16,765 14,939 1,826 12.2%
--------------------------------------
Total restaurant operating
expenses 139,433 126,825 12,608 9.9%
--------------------------------------
Restaurant operating profit $45,585 $36,559 $9,026 24.7%
======================================
Benihana Inc. and Subsidiaries
Restaurant Operating Margins
(Unaudited)
Three Periods Ended
-----------------------
26-Mar-06 27-Mar-05
-----------------------
Restaurant sales 100.00% 100.00%
Cost of food and beverage sales 24.17% 23.43%
-----------------------
Gross profit margin 75.83% 76.57%
-----------------------
Restaurant operating expenses:
Labor and related costs 31.77% 33.60%
Restaurant supplies 2.21% 2.10%
Credit card discounts 1.78% 1.76%
Utilities 2.39% 2.32%
Occupancy costs 5.26% 5.84%
Depreciation and amortization 5.64% 4.58%
Other restaurant operating expenses 6.55% 6.66%
-----------------------
Total restaurant operating expenses 55.61% 56.85%
-----------------------
Restaurant operating profit margin 20.22% 19.72%
=======================
Fiscal Year Ended
-----------------------
26-Mar-06 27-Mar-05
-----------------------
Restaurant sales 100.00% 100.00%
Cost of food and beverage sales 24.18% 24.62%
-----------------------
Gross profit margin 75.82% 75.38%
-----------------------
Restaurant operating expenses:
Labor and related costs 33.36% 35.07%
Restaurant supplies 2.08% 1.99%
Credit card discounts 1.82% 1.79%
Utilities 2.49% 2.42%
Occupancy costs 5.82% 5.92%
Depreciation and amortization 4.70% 4.43%
Other restaurant operating expenses 6.87% 6.89%
-----------------------
Total restaurant operating expenses 57.14% 58.51%
-----------------------
Restaurant operating profit margin 18.68% 16.87%
=======================
Benihana Inc. and Subsidiaries
Balance Sheet Data
(Unaudited)
(in thousands)
26-Mar-06 27-Mar-05
-----------------------
Assets
Cash and cash equivalents $19,138 $3,278
Other current assets 12,921 9,625
-----------------------
Total current assets 32,059 12,903
Property and equipment, net 123,578 108,132
Goodwill 29,900 28,131
Other assets 5,979 5,088
-----------------------
$191,516 $154,254
=======================
Liabilities and Stockholders' Equity
Current maturity of bank debt $4,166 $3,333
Current maturity of capital leases 0 26
Other current liabilities 32,583 23,082
-----------------------
Total current liabilities 36,749 26,441
Long-term debt--bank 2,500 6,667
Other liabilities 7,732 6,635
-----------------------
Total liabilities 46,981 39,743
Minority interest 0 1,999
Convertible preferred stock 19,273 9,305
Total stockholders' equity 125,262 103,207
-----------------------
$191,516 $154,254
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