Benihana Inc. Reports Fiscal Fourth Quarter Results; Operating Income before Non-Cash Impairment Charges Increases 34%, with Revenues Ahead 8.1%.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 one of the nation's largest chains of Asian restaurants, today reported income from operations before a non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. for impaired See assistive technology. long-lived long-lived adj. 1. Having a long life: a long-lived aunt. 2. Lasting a long time; persistent: a long-lived rumor. 3. assets for the fiscal fourth quarter (12 weeks) ended March 27, 2005 increased 34% to $6.5 million, from $4.9 million in the corresponding year-ago period. The Company reported that it incurred 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 of $2.7 million in the fiscal fourth quarter, equal to approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $0.16 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. Allowing for the impairment charges, net income for the fiscal quarter amounted to $2.2 million, or $0.22 per diluted share, compared with approximately $2.9 million, or $0.31 per diluted share, a year ago. Earnings per diluted share for the fiscal fourth quarter ended March 27, 2005 and the corresponding year ago period are based on 10,346,000 and 9,166,000 shares, respectively, an increase of 12.9%. Total revenues for the fiscal fourth quarter increased 8.1%, to $54.8 million. Gross profit (restaurant sales less cost of 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. sales) increased 10.4%, to $41.7 million, with the gross margin improving to 76.6%, from 75.1% a year ago. Fiscal fourth quarter gross profit increased 10% sequentially se·quen·tial adj. 1. Forming or characterized by a sequence, as of units or musical notes. 2. Sequent. se·quen as well, from $37.9 million in the preceding third fiscal quarter. 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. ("ROP (1) (Raster Operation) An instruction that manipulates the bits of a bitmapped image in some manner. (2) (RISC Operation) An instruction in a RISC processor. ") increased approximately 24%, to $10.7 million from the corresponding year ago period, and was 22.7% higher sequentially. ROP margins year over year improved 250 basis points, to 19.7%, from 17.2%. Marketing, general and administrative expenses increased 2.1%, or approximately $80,000, but as a percentage of total revenues were reduced to 7.2% from 7.7% the fiscal fourth quarter. Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. costs pertaining per·tain intr.v. per·tained, per·tain·ing, per·tains 1. To have reference; relate: evidence that pertains to the accident. 2. to the lawsuit lawsuit: see procedure; tort. brought by Benihana of Tokyo Tokyo (tō`kēō), city (1990 pop. 8,163,573), capital of Japan and of Tokyo prefecture, E central Honshu, at the head of Tokyo Bay. , Inc. against the Company and certain of its officers and directors for the quarter amounted to $337,000, approximately $0.02 per diluted share. FAS 144 requires that long-lived assets be written down to fair market value when the investments in them are not recoverable from the undiscounted cash flows that are expected to be derived de·rive v. de·rived, de·riv·ing, de·rives v.tr. 1. To obtain or receive from a source. 2. from them. The fiscal fourth quarter impairment charges pertained to four restaurants, which, although cash flow positive, are unlikely to return sufficient undiscounted cash flows to recover their respective investments. "Operations in the fourth quarter achieved significant progress," 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:
A flagship is the ship used by the commanding officer of a group of naval ships. brand's continued strong popularity. RA Sushi posted impressive gains, while Haru, which experienced modest growth for the year, is expected to benefit from a new restaurant recently opened in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. , the concept's sixth in that city. This past year we opened eight new restaurants company-wide and completed the remodeling remodeling /re·mod·el·ing/ (re-mod´el-ing) reorganization or renovation of an old structure. bone remodeling of two teppanyaki restaurants. Six restaurants are currently under development, and thus our Company's expansion plans, which include identifying new sites for all our concept restaurants, remains on track. Our ongoing efforts to hold costs in line have been successful. With customer counts remaining strong, we are very encouraged regarding the outlook for our business." For all of fiscal 2005, operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. before the impairment charge increased 6.7%, to $15.9 million. Net income totaled $7.8 million, or $0.77 per diluted share, including the $2.7 million impairment charges, compared with $9.0 million, or $0.98 per diluted share, in the previous year. Litigation costs pertaining to the lawsuit brought by Benihana of Tokyo, Inc. against the Company and certain of its officers and directors amounted to $2.1 million for the year ($0.13 per diluted share). Total revenue for the 13 periods ended March 27, 2005, amounted to $218.3 million, an increase of 7.6%. Restaurant gross profit for the year totaled $163.4 million, compared with $149.9 million in the previous year, with the gross margin amounting to 75.4% and 74.5%, respectively. ROP for the year increased to $36.6 million, 15.3% greater than fiscal 2004's ROP of $31.7 million. Results benefited from solid gains in traffic, stable commodity prices and strong increases in comparable sales. As previously reported, fiscal fourth quarter comparable sales company-wide increased 7.2% and for the year were ahead 5.2%, with all concepts contributing to the yearly gain. For the fiscal fourth quarter, comparable sales at the Benihana restaurants increased 7.5%, Haru's comparable sales were off 2.6% and RA Sushi's comparable sales were up 16.2%. Comparable sales increases accounted for $3.5 million of the increase in total revenues for the fiscal fourth quarter, while new restaurant revenues were largely offset by revenues lost from closed or temporarily closed units. Comparable sales increases represented $10.1 million of the year's improvement in restaurant sales, and new restaurants added $11.6 million, offset by $6.3 million in revenues from permanently or temporarily closed units. For the year, customer counts increased 5.8%, to 8.7 million, and in the fiscal fourth quarter rose 6.2%. The average check per person last year was up 2%, to $23.94. During the past year, Benihana opened a new teppanyaki restaurant in Carlsbad Carlsbad, cities, United States Carlsbad (kärlz`băd). 1 City (1990 pop. 63,126), San Diego co., S Calif., on the Pacific coast; settled in the 1880s, inc. 1952. , CA. Benihana restaurants in San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden , CA, and Manhasset, NY, were re-opened after undergoing extensive remodeling. Units in Kendall Ken·dall , Edward Calvin 1886-1972. American biochemist. He shared a 1950 Nobel Prize for discoveries concerning the hormones of the adrenal cortex. , FL, and on New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of City's East Side were closed permanently due to lease expirations. As previously announced, a teppanyaki restaurant in Anchorage Anchorage (ăng`kərĭj), city (1990 pop. 226,338), Anchorage census div., S central Alaska, a port at the head of Cook Inlet; inc. 1920. , AL, was purchased from a franchisee. RA Sushi added a unit in Las Vegas Las Vegas (läs vā`gəs), city (1990 pop. 258,295), seat of Clark co., S Nev.; inc. 1911. It is the largest city in Nevada and the center of one of the fastest-growing urban areas in the United States. , NV, and Haru launched a new restaurant in the Gramercy Park Gramercy Park (sometimes misspelled as Grammercy) is a small, fenced-in private park in the Gramercy neighborhood of Manhattan, New York City, New York State[1]. area of New York City. Under development are teppanyaki restaurants in Miramar Miramar (mĭr`əmär'), city (1990 pop. 40,663), Broward co., SE Fla.; inc. 1955. It is a residential community in the rapidly growing I-75 corridor between Miami and Fort Lauderdale. and Coral Gables Coral Gables, city (1990 pop. 40,091), Miami-Dade co., SE Fla., SW of Miami; inc. 1925. Founded at the height of the Florida land boom, Coral Gables is a noted planned city, with tree-lined boulevards and Mediterranean-style buildings. , FL; a Haru in Philadelphia Philadelphia, ancient cities Philadelphia, name of several ancient cities. One was in Lydia, W Asia Minor (now W Turkey). At the foot of Mt. Tmolus and near the location of modern Alaşehir, it was founded in the 2d cent. B.C. , PA; and RA Sushi units in Houston Houston, city (1990 pop. 1,630,553), seat of Harris co., SE Tex., a deepwater port on the Houston Ship Channel; inc. 1837. Economy The fourth largest city in the nation and the largest in the entire South and Southwest, Houston is a port of entry; , TX, Palm Beach Gardens, FL and Huntington Beach Huntington Beach, city (1990 pop. 181,519), Orange co., S Calif., on the Pacific coast, across from Santa Catalina Island, in an oil-producing area; inc. 1909. It manufactures aerospace vehicles, aircraft parts, optical instruments, and heat transfer equipment. , CA. With strong sales momentum continuing, the Company for the current first quarter (16 weeks) of fiscal 2006, which includes the important Mother's Day holiday, anticipates comparable sales gains of 5.5% to 6.0%. Restaurant opening costs are expected to increase over a year ago. Management expects that net income for the quarter will range between $0.28 and $0.30 per diluted share compared to $0.20 in the same period a year ago. About Benihana Benihana, now in its 41st year and one of the nation's largest chains of Asian restaurants, currently operates 71 restaurants nationwide, including 56 Benihana teppanyaki restaurants, six Haru sushi restaurants, eight 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 and one Doraku restaurant. Under development at present are six restaurants - two Benihana teppanyaki restaurants, one Haru unit and three RA Sushi restaurants. In addition, a total of 22 franchised Benihana teppanyaki restaurants are now open or under development 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 that 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, the outcome of litigation including the litigation commenced by Benihana of Tokyo, Inc. 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, including the litigation commenced by Benihana of Tokyo, Inc. Conference Call Scheduled A conference call conducted by Benihana Inc. management will take place on Tuesday Tuesday: see week. , May 24, 2005, at 11:00 A.M. (ET). You may listen over 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 at http://www.benihana.com. To listen to the live call on the Internet, please go to the web site at least 15 minutes early to register, download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. and install any necessary audio software. A replay will be available two hours after the end of the live call, through midnight June June: see month. 7, 2005. For replay, dial 877-519-4471 and use PIN number 6075038.
Benihana Inc.
Unaudited Consolidated Statements of Operations
Three Periods Ended
--------------------------------------
(amounts in thousands except per share
data and shares and equivalents
outstanding)
March 27, March 28,
2005 2004 $ Change % Change
--------------------------------------
Restaurant sales $54,395 $50,261 $4,134 8.2%
Franchise fees and royalties 383 393 (10) -2.5%
--------------------------------------
54,778 50,654 4,124 8.1%
Cost of food and beverage sales 12,745 12,538 207 1.7%
--------------------------------------
Gross profit 41,650 37,723 3,927 10.4%
--------------------------------------
Restaurant operating expenses:
Labor and related costs 18,279 17,489 790 4.5%
Restaurant supplies 1,145 984 161 16.4%
Credit card discounts 955 850 105 12.4%
Utilities 1,262 1,171 91 7.8%
Occupancy costs 3,176 3,114 62 2.0%
Depreciation and amortization 2,489 2,142 347 16.2%
Other restaurant operating
expenses 3,620 3,333 287 8.6%
--------------------------------------
Total restaurant operating
expenses 30,926 29,083 1,843 6.3%
--------------------------------------
Restaurant operating profit 10,724 8,640 2,084 24.1%
Restaurant opening costs 637 296 341 115.2%
Impairment charge 2,668 2,668
Marketing, general and
administrative expenses 3,942 3,862 80 2.1%
--------------------------------------
Income from operations 3,860 4,875 (1,015) -20.8%
Interest expense, net 56 133 (77) -57.9%
--------------------------------------
Income before income taxes and
minority interest 3,804 4,742 (938) -19.8%
Income tax provision 1,482 1,725 (243) -14.1%
--------------------------------------
Income before minority interest 2,322 3,017 (695) -23.0%
Minority interest 92 164 (72) -43.9%
--------------------------------------
Net income 2,230 2,853 (623) -21.8%
Less, accretion of issuance
costs and preferred stock
dividends 132 132
--------------------------------------
Net income attributable to
common stockholders $2,098 $2,853 $(755) -26.5%
Basic earnings per share $0.23 $0.33 $(0.10) -30.3%
======================================
Diluted earnings per share $0.22 $0.31 $(0.09) -29.0%
======================================
Shares and equivalents
outstanding 10,346,000 9,166,000
Year Ended
--------------------------------------
(amounts in thousands except per share
data and shares and equivalents
outstanding)
March 27, March 28,
2005 2004 $ Change % Change
--------------------------------------
Restaurant sales $216,756 $201,335 $15,421 7.7%
Franchise fees and royalties 1,575 1,628 (53) -3.3%
--------------------------------------
218,331 202,963 15,368 7.6%
Cost of food and beverage sales 53,372 51,437 1,935 3.8%
--------------------------------------
Gross profit 163,384 149,898 13,486 9.0%
--------------------------------------
Restaurant operating expenses:
Labor and related costs 76,026 71,812 4,214 5.9%
Restaurant supplies 4,313 3,945 368 9.3%
Credit card discounts 3,871 3,465 406 11.7%
Utilities 5,239 4,854 385 7.9%
Occupancy costs 12,830 11,910 920 7.7%
Depreciation and amortization 9,607 8,313 1,294 15.6%
Other restaurant operating
expenses 14,939 13,884 1,055 7.6%
--------------------------------------
Total restaurant operating
expenses 126,825 118,183 8,642 7.3%
--------------------------------------
Restaurant operating profit 36,559 31,715 4,844 15.3%
Restaurant opening costs 1,304 2,088 (784) -37.5%
Impairment charge 2,668 - 2,668
Marketing, general and
administrative expenses 20,939 16,362 4,577 28.0%
--------------------------------------
Income from operations 13,223 14,893 (1,670) -11.2%
Interest expense, net 298 457 (159) -34.8%
--------------------------------------
Income before income taxes and
minority interest 12,925 14,436 (1,511) -10.5%
Income tax provision 4,520 4,821 (301) -6.2%
--------------------------------------
Income before minority interest 8,405 9,615 (1,210) -12.6%
Minority interest 585 643 (58) -9.0%
--------------------------------------
Net income 7,820 8,972 (1,152) -12.8%
Less, accretion of issuance
costs and preferred stock
dividends 422 - 422
--------------------------------------
Net income attributable to
common stockholders $7,398 $8,972 $(1,574) -17.5%
Basic earnings per share $0.81 $1.01 $(0.20) -19.8%
======================================
Diluted earnings per share $0.77 $0.98 $(0.21) -21.4%
======================================
Shares and equivalents
outstanding 10,147,000 9,153,000
Sales and Comparable Sales by
concept: Three Periods ended,
March 27, March 28,
2005 2004 $ Change % Change
Sales by concept:
Benihana $43,653 $40,931 $2,722 6.7%
Haru 5,486 5,255 231 4.4%
RA Sushi 4,816 3,714 1,102 29.7%
Sushi Doraku 440 361 79 21.9%
----------------------------
Total restaurant sales $54,395 $50,261 $4,134 8.2%
============================
Comparable sales by concept:
Benihana $42,588 $39,614 $2,974 7.5%
Haru 5,120 5,255 (135) -2.6%
RA Sushi 4,317 3,714 603 16.2%
Sushi Doraku 440 361 79 21.9%
----------------------------
Total restaurant comparable sales $52,465 $48,944 $3,521 7.2%
============================
Year ended,
March 27, March 28,
Sales by concept: 2005 2004 $ Change % Change
Benihana $175,045 $166,452 $8,593 5.2%
Haru 22,785 21,871 914 4.2%
RA Sushi 17,334 11,574 5,760 49.8%
Sushi Doraku 1,592 1,438 154 10.7%
----------------------------
Total restaurant sales $216,756 $201,335 $15,421 7.7%
============================
Comparable sales by concept:
Benihana $167,475 $159,521 $7,954 5.0%
Haru 22,416 21,871 545 2.5%
RA Sushi 13,060 11,574 1,486 12.8%
Sushi Doraku 1,592 1,438 154 10.7%
----------------------------
Total restaurant comparable
sales $204,543 $194,404 $10,139 5.2%
============================
Margin Analysis: Three Periods Ended Year Ended
March 27, March 28, March 27, March 28,
2005 2004 2005 2004
Restaurant sales 100.00% 100.00% 100.00% 100.00%
Cost of food and beverage sales 23.43% 24.95% 24.62% 25.55%
---------------------------------------
Gross profit 76.57% 75.05% 75.38% 74.45%
---------------------------------------
Restaurant operating expenses:
Labor and related costs 33.60% 34.80% 35.07% 35.67%
Restaurant supplies 2.10% 1.96% 1.99% 1.96%
Credit card discounts 1.76% 1.69% 1.79% 1.72%
Utilities 2.32% 2.33% 2.42% 2.41%
Occupancy costs 5.84% 6.20% 5.92% 5.92%
Depreciation and amortization 4.58% 4.26% 4.43% 4.13%
Other restaurant operating
expenses 6.66% 6.63% 6.89% 6.89%
---------------------------------------
Total restaurant operating
expenses 56.85% 57.86% 58.51% 58.70%
---------------------------------------
Restaurant operating profit 19.72% 17.19% 16.87% 15.75%
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