Benihana Inc. Reports Improved Fiscal Second Quarter Operating Results.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 improved operating results for the second fiscal quarter (twelve weeks) ended October October: see month. 10, 2004. For the fiscal second quarter, total revenues amounted to $48.1 million, compared with $44.2 million in the corresponding year-ago quarter, a gain of 8.8%. 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) amounted to $36.1 million, compared with $32.7 million a year ago, an increase of 10.6%, and the margins on food and beverage improved to 75.6% from 74.4% in the corresponding year-ago quarter. Income from operations rose to $2.8 million, compared with $2.4 million in the second quarter of fiscal 2004, a gain of 15.5%. Net income rose 13.6%, to $1.7 million, from $1.5 million a year ago, and net income attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to common stockholders increased 4.6% to $1.5 million. 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 equaled $0.16 per share for both quarters, with 12% more shares outstanding in the fiscal 2005 second quarter compared to the corresponding year-earlier quarter. The gains were achieved despite approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $655,000 in legal expenses ($0.04 per 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. share) during the quarter in connection with the 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. commenced 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., and also the impact of hurricanes in Florida Florida, state, United States Florida (flôr`ĭdə, flŏr`–), state in the extreme SE United States. A long, low peninsula between the Atlantic Ocean (E) and the Gulf of Mexico (W), Florida is bordered by Georgia and , which forced the closure of several restaurants for short periods. "Benihana has made notable progress in the second quarter, typically our Company's slowest period," 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:
Restaurant Operating Results Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: restaurant sales rose 8.8%, to $47.8 million, from $43.9 million a year ago. Comparable sales increases contributed $2.7 million to the year over year increase, new restaurants added $3.6 million of the increase and were offset by approximately $2.4 million attributable to units closed and undergoing remodeling remodeling /re·mod·el·ing/ (re-mod´el-ing) reorganization or renovation of an old structure. bone remodeling in the current period. 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. ) totaled $7.7 million, a 20.9% increase over the $6.4 million a year ago, and ROP margins increased to 16.2%, from 14.6% in the corresponding year-ago quarter. While workers compensation insurance costs continued to rise sharply, total labor and related costs, as a percentage of restaurant sales, improved to 35.6%, from 36.3% a year ago. Restaurant 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. increased 8.1%, but as a percentage of restaurant sales improved to 59.5%, from 59.9% a year ago. Commodity costs remained essentially level with the preceding first fiscal quarter, and were down slightly from the year ago quarter, on average, contributing to an improvement of cost of food and beverage sales in the quarter to 24.4% of restaurant sales, compared with 25.6% in the corresponding year ago period. As previously reported, comparable sales for the second quarter rose 6.5%, with the teppanyaki restaurants posting a 6.4% increase. An average 2% - 3% increase in teppanyaki menu prices did not affect traffic in those restaurants, which increased 2.9% in the second quarter over a year ago, while also contributing to an average 3.1% increase in average check size. Haru posted a 4.1% comparative increase in sales, despite the Republican National Convention 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. that resulted in fewer non-convention visitors and more residents leaving the city during the month of August. RA Sushi comparative sales increased 13.1% for the quarter. First Half Results For the first six months ended October 10, 2004 (seven periods), total revenues increased 7.8%, to $113.5 million. Gross profit was up 7.9%, to $83.8 million, with a gross margin of 74.3%, remaining unchanged from the corresponding year-ago period, when expressed as a percentage of restaurant sales. Net income amounted to $3.6 million, compared with $4.4 million, a year earlier. Net income attributable to common stockholders totaled $3.4 million, or $0.35 per diluted share, compared with $4.4 million, or $0.49 per diluted share, a year earlier. Outlook During the quarter, teppanyaki 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 closed for renovation. At RA Sushi, a new restaurant opened subsequent to quarter-end 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. A lease was signed for a RA Sushi 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, which, along with the 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 unit currently under development, will bring to ten the total number of RA Sushi units. Also under development are Harus 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 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]. , in downtown Downtown (called a "city centre" in British English) is a term used in North America when referring to a city's core, usually both in a geographical and commercial / community sense. New York City, both of which are slated to open in early calendar 2005. A new lease was entered into for a teppanyaki restaurant 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. , FL and there is also another teppanyaki restaurant under development in 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. The Miramar unit will be the first unit employing the new prototype Prototype A first or original model of hardware or software. Prototyping involves the production of functionally useful and trustworthy systems through experimentation with evolving systems. design developed with WD Partners. The Company is estimating an increase in comparable restaurant sales of 1-1.5% for the third fiscal quarter (12 weeks) ending January January: see month. 4, 2005. Net income per diluted share is anticipated to approximate ap·prox·i·mate v. To bring together, as cut edges of tissue. adj. 1. Relating to the contact surfaces, either proximal or distal, of two adjacent teeth; proximate. 2. Close together. $0.19 to $0.21. About Benihana Benihana, now in its 40th year and one of the nation's largest chains of Asian restaurants, currently operates 70 restaurants nationwide, including 56 Benihana teppanyaki restaurants, five 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, two Haru units and two RA Sushi restaurants. In addition, a total of 23 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, 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. , November November: see month. 16, 2004, 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 November 30, 2004. For replay, dial 877-519-4471 and use PIN number 5364038.
Benihana Inc.
Consolidated Statements of Operations
(Unaudited)
Three Periods Ended
(amounts in thousands except per share
data and shares and equivalents
outstanding)
October October
10, 2004 12, 2003 $ Change % Change
Restaurant sales $47,801 $43,925 $3,876 8.8%
Franchise fees & royalties 309 310 (1) -0.3%
----------------------------------------
48,110 44,235 3,875 8.8%
Cost of food & beverage sales 11,652 11,232 420 3.7%
----------------------------------------
Gross profit 36,149 32,693 3,456 10.6%
----------------------------------------
Restaurant operating expenses:
Labor and related costs 16,994 15,928 1,066 6.7%
Restaurant supplies 920 875 45 5.1%
Credit card discounts 855 741 114 15.4%
Utilities 1,279 1,218 61 5.0%
Occupancy costs 2,860 2,536 324 12.8%
Depreciation and amortization 2,132 1,875 257 13.7%
Other restaurant operating
expenses 3,385 3,131 254 8.1%
----------------------------------------
Total restaurant operating
expenses 28,425 26,304 2,121 8.1%
----------------------------------------
Restaurant operating profit 7,724 6,389 1,335 20.9%
Restaurant opening costs 299 590 (291) -49.3%
Marketing, general and
administrative expenses 4,949 3,697 1,252 33.9%
----------------------------------------
Income from operations 2,785 2,412 373 15.5%
Interest expense, net 72 84 (12) -14.3%
----------------------------------------
Income before income taxes and
minority interest 2,713 2,328 385 16.5%
Income tax provision 902 717 185 25.8%
----------------------------------------
Income before minority
interest 1,811 1,611 200 12.4%
Minority interest 150 149 1 0.7%
----------------------------------------
Net income 1,661 1,462 199 13.6%
----------------------------------------
Less: Accretion of issuance
costs and preferred stock
dividends 132 - 132 -
----------------------------------------
Net income attributable to
common stockholders $1,529 $1,462 $67 4.6%
========================================
Basic earnings per share $0.17 $0.17 $- 0.0%
========================================
Diluted earnings per share $0.16 $0.16 $- 0.0%
========================================
Shares and equivalents
outstanding 10,266,000 9,120,000
Three Periods Ended
October October
10, 2004 12, 2003 $ Change % Change
Sales by concept:
Benihana $38,614 $36,432 $2,182 6.0%
Haru 5,222 5,014 208 4.1%
RA Sushi 3,636 2,164 1,472 68.0%
Sushi Doraku 329 315 14 4.4%
-------------------------------
Total restaurant sales $47,801 $43,925 $3,876 8.8%
===============================
Comparable sales by concept:
Benihana $36,170 $33,991 $2,179 6.4%
Haru 5,222 5,014 208 4.1%
RA Sushi 2,448 2,164 284 13.1%
Sushi Doraku 329 315 14 4.4%
-------------------------------
Total restaurant comparable
sales $44,169 $41,484 $2,685 6.5%
===============================
Three Periods Ended
October October
10, 2004 12, 2003
Restaurant sales 100.00% 100.00%
Cost of food and beverage
sales 24.38% 25.57%
----------------------
Gross profit 75.62% 74.43%
----------------------
Restaurant operating expenses:
Labor and related costs 35.55% 36.26%
Restaurant supplies 1.92% 1.99%
Credit card discounts 1.79% 1.69%
Utilities 2.68% 2.77%
Occupancy costs 5.98% 5.77%
Depreciation and amortization 4.46% 4.27%
Other restaurant operating
expenses 7.08% 7.13%
----------------------
Total restaurant operating
expenses 59.47% 59.88%
----------------------
Restaurant operating profit 16.15% 14.55%
======================
Seven Periods Ended
(amounts in thousands except per share
data and shares and equivalents
outstanding)
October October
10, 2004 12, 2003 $ Change % Change
Restaurant sales $112,735 $104,467 $8,268 7.9%
Franchise fees & royalties 766 870 (104) -12.0%
----------------------------------------
113,501 105,337 8,164 7.8%
Cost of food & beverage sales 28,931 26,803 2,128 7.9%
----------------------------------------
Gross profit 83,804 77,664 6,140 7.9%
----------------------------------------
Restaurant operating expenses:
Labor and related costs 40,144 37,695 2,449 6.5%
Restaurant supplies 2,169 2,029 140 6.9%
Credit card discounts 2,008 1,813 195 10.8%
Utilities 2,837 2,680 157 5.9%
Occupancy costs 6,710 5,934 776 13.1%
Depreciation and amortization 4,914 4,228 686 16.2%
Other restaurant operating
expenses 7,926 7,408 518 7.0%
----------------------------------------
Total restaurant operating
expenses 66,708 61,787 4,921 8.0%
----------------------------------------
Restaurant operating profit 17,096 15,877 1,219 7.7%
Restaurant opening costs 553 833 (280) -33.6%
Marketing, general and
administrative expenses 11,280 8,710 2,570 29.5%
----------------------------------------
Income from operations 6,029 7,204 (1,175) -16.3%
Interest expense, net 186 233 (47) -20.2%
----------------------------------------
Income before income taxes and
minority interest 5,843 6,971 (1,128) -16.2%
Income tax provision 1,908 2,219 (311) -14.0%
----------------------------------------
Income before minority
interest 3,935 4,752 (817) -17.2%
Minority interest 362 338 24 7.1%
----------------------------------------
Net income 3,573 4,414 (841) -19.1%
----------------------------------------
Less: Accretion of issuance
costs and preferred stock
dividends 158 - 158 -
----------------------------------------
Net income attributable to
common stockholders $3,415 $4,414 $(999) -22.6%
========================================
Basic earnings per share $0.37 $0.50 $(0.13) -26.0%
========================================
Diluted earnings per share $0.35 $0.49 $(0.14) -28.6%
========================================
Shares and equivalents
outstanding 10,073,000 9,062,000
Seven Periods Ended
October October
10, 2004 12, 2003 $ Change % Change
Sales by concept:
Benihana $91,098 $86,725 $4,373 5.0%
Haru 12,322 11,722 600 5.1%
RA Sushi 8,534 5,279 3,255 61.7%
Sushi Doraku 781 741 40 5.4%
-------------------------------
Total restaurant sales $112,735 $104,467 $8,268 7.9%
===============================
Comparable sales by concept:
Benihana $85,821 $82,803 $3,018 3.6%
Haru 12,322 11,722 600 5.1%
RA Sushi 5,871 5,279 592 11.2%
Sushi Doraku 781 741 40 5.4%
-------------------------------
Total restaurant comparable
sales $104,795 $100,545 $4,250 4.2%
===============================
Seven Periods Ended
October October
10, 2004 12, 2003
Restaurant sales 100.00% 100.00%
Cost of food and beverage
sales 25.66% 25.66%
----------------------
Gross profit 74.34% 74.34%
----------------------
Restaurant operating expenses:
Labor and related costs 35.61% 36.08%
Restaurant supplies 1.92% 1.94%
Credit card discounts 1.78% 1.74%
Utilities 2.52% 2.57%
Occupancy costs 5.95% 5.68%
Depreciation and amortization 4.36% 4.05%
Other restaurant operating
expenses 7.03% 7.09%
----------------------
Total restaurant operating
expenses 59.17% 59.14%
----------------------
Restaurant operating profit 15.17% 15.20%
======================
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