Benihana Inc. Reports Increase of 71.3% in Net Income on 13.5% Rise in Total Revenues for Second Quarter.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 reported strong gains in operating results for the second fiscal quarter (twelve weeks) ended October October: see month. 9, 2005, reflecting exceptional customer traffic increases at its teppanyaki and RA Sushi restaurants. --Second fiscal quarter restaurant sales increased to $54.3 million, $6.5 million, or 13.5%, greater than for the comparable fiscal quarter a year ago. --Gross profit for the quarter rose 14.5%, to $41.4 million, compared with $36.1 million a year ago, and gross margins advanced to 76.3%, from 75.6% a year ago. --During the second 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. increased 24%, to $9.6 million, compared to $7.7 million a year ago, with 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. margins equaling 17.6%, compared to 16.2% a year ago. Favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. commodities costs were a contributing factor. --Comparable sales for the quarter, as previously reported, increased nearly 8%, lifting total sales by $3.7 million from the year ago fiscal quarter. --Operating earnings for the quarter were $4.7 million and increased by 69.1% from the second fiscal quarter a year ago, while earnings before income taxes and minority interest increased 74.4%, to $4.7 million. --Fiscal second quarter net income increased to $2.8 million, from $1.7 million in the corresponding year-ago fiscal quarter, a gain of 71.3% --Diluted earnings per share for the quarter amounted to $0.21 per share, compared with $0.16 last year, a 31.3% gain. "Several factors contributed to our continuing strong performance," 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:
adj. Lacking brightness, luster, or vitality; dull. See Synonyms at dull. Adj. 1. lackluster - lacking brilliance or vitality; "a dull lackluster life"; "a lusterless performance" consumer confidence statistics, consumers are seeking quality Asian food in a fun environment. Each of our restaurant concepts offers what our customers want when they dine out Verb 1. dine out - eat at a restaurant or at somebody else's home eat out eat - eat a meal; take a meal; "We did not eat until 10 P.M. because there were so many phone calls"; "I didn't eat yet, so I gladly accept your invitation" . Commodity costs remained favorable, and leverage on fixed costs fixed costs, n.pl the costs that do not change to meet fluctuations in enrollment or in use of services (e.g., salaries, rent, business license fees, and depreciation). benefited from both increased labor productivity and greater sales volume. These factors combined to result in a significant profit gain for the quarter. With our expansion program, and especially the accelerated unit growth for RA Sushi units, we believe the outlook for this year and beyond is exceedingly ex·ceed·ing·ly adv. To an advanced or unusual degree; extremely. exceedingly Adverb very; extremely Adv. 1. favorable." As a percentage of restaurant sales, marketing, general and administrative expenses improved to 9.3%, compared with 10.4% a year ago. 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. , similarly amounted to 92.0% and 94.8% respectively, an improvement of 280 basis points. Operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before for the quarter rose 69.1%, to $4.7 million, and earnings before income taxes and minority interest advanced 74.4%, to $4.7 million. Hurricanes Katrina KATRINA Keeping All the Resources in New Orleans Alive KATRINA Krewe Aiding Trash Removal In the New Orleans Area and Rita caused 22 days of lost revenue during the quarter. Hurricane Wilma Hurricane Wilma was the most intense hurricane ever recorded in the Atlantic basin. Exceeding the 21 storms of the 1933 season, Wilma was the twenty-second storm (including the subtropical storm discovered in reanalysis), thirteenth hurricane, sixth major hurricane, and fourth , which resulted in power outages This is a list of famous wide-scale power outages. 1965
Comparable sales for the second fiscal quarter reflected an increase of 6.4% at the Benihana teppanyaki restaurants, where traffic gained 3%; a rise of 29.8% at RA Sushi, which experienced a traffic increase of 27%; and a 1.7% increase at Haru, where traffic was off 3%. The 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: sales gains this year reflected a $3.7 million increase from comparable sales, $2.4 million from new and acquired (in Alaska Alaska (əlă`skə), largest in area of the United States but third smallest (exceeding only Vermont and Wyoming) in population, occupying the northwest extremity of the North American continent, separated from the coterminous United States ) units, minus approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $1.1 million from closed units and those temporarily closed, offset by $1.6 million from last year's temporary closures. Operating profits reflected a write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. of assets of Short Hills, NJ, as a direct result of the remodeling remodeling /re·mod·el·ing/ (re-mod´el-ing) reorganization or renovation of an old structure. bone remodeling underway at that restaurant. For the year to date, restaurant sales totaled $127.9 million, compared to $112.7 million in the corresponding first half of last year, a gain of 13.4%. Gross profit increased to $97.0 million, from $83.8 million, up 15.8%, with restaurant operating profits rising to $23.0 million, 34.3% greater than a year ago. First fiscal half net income increased 105.5%, to $7.3 million, or $0.66 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, compared with $3.6 million, or $0.35 per diluted share a year ago. As previously announced, the Company completed the second and final tranche Tranche One of several related securities offered at the same time. Tranches from the same offering usually have different risk, reward, and/or maturity characteristics. tranche A class of bonds. involving $10 million aggregate principal amount of its Series B Convertible Preferred Stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". (the "Preferred Stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. ") sold to BFC BFC Buffalo Field Campaign (West Yellowstone, Montana) BFC Betty Ford Center BFC British Fashion Council BFC Bicycle Friendly Community BFC Bible Fellowship Church BFC Boavista Futebol Clube Financial Corporation, on August 4, 2005. The proceeds from the sale provide funding necessary to execute To run a program, which causes the computer to carry out its instructions. See executable code, instruction and EXE file. execute - execution the business plan consisting of the remodeling, acquisition and development of our restaurants. Since the Preferred Stock is convertible into Common Stock at a conversion price of $19.00 per share and the Common Stock was trading at $20.00 per share on the closing date, a deemed dividend was recognized on the beneficial conversion feature totaling $0.5 million for accounting purposes. The impact of the beneficial conversion feature on 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 amounted to $0.05 during the quarter ended October 9, 2005. Benihana Inc. currently has under development eight restaurants consisting of two Benihana teppanyaki restaurants 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. and Miramar, Florida For other uses, see Miramar. Miramar is a city in Broward County, Florida, United States. The city was named after a town in Cuba. As of 2006, the population estimated by the U.S. Census Bureau is 106,590. , and six RA Sushi restaurants 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 ; Lombard Lombard, village (1990 pop. 39,408), Du Page co., NE Ill., a residential suburb of Chicago; inc. 1869. Plastics are produced. The village is known for its lilacs. and Glenview, Illinois There are at least two locations in Illinois called Glenview:
Fiscal 2006 Third Quarter Outlook There will be more units temporarily closed for renovations in the third fiscal quarter this year, than in the preceding quarter and the year-ago period, including Short Hills 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 . The temporary closures will be partially offset by sales at our recently acquired teppanyaki restaurant in Tucson, Arizona Tucson (pronounced /ˈtusɑn/, Spanish: Tucsón [tuk'son] . With approximately 8% increase in average shares outstanding, per fully diluted share net income for the fiscal 2006 third quarter is expected 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. $0.25. This would compare to $0.20 per fully diluted share in the corresponding year-ago period, when the Company incurred approximately $1.2 million, or $0.08 per share, from BOT-related 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. expenses and proxy contest Proxy contest A battle for the control of a firm in which a dissident group seeks, from the firm's other shareholders, the right to vote those shareholders' shares in favor of the dissident group's slate of directors. Also called proxy fights. costs. About Benihana Benihana, now in its 41st year operates 73 restaurants nationwide, including 57 Benihana teppanyaki restaurants, seven 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 eight restaurants - two Benihana teppanyaki restaurants and six 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 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.
Benihana Inc. and Subsidiaries
Condensed Consolidated Statements of Earnings
(Unaudited)
(in thousands except per share data)
Three Periods Ended
-------------------
9-Oct-05 10-Oct-04 $ Change % Change
------------------------------------
Revenues
Restaurant sales $54,274 $47,801 $6,473 13.5%
Franchise fees and royalties 348 309 39 12.6%
------------------------------------
Total revenues 54,622 48,110 6,512 13.5%
------------------------------------
Costs and Expenses
Cost of food and beverage sales 12,890 11,652 1,238 10.6%
Restaurant operating expenses 31,810 28,425 3,385 11.9%
Restaurant opening costs 190 299 -109 -36.5%
Marketing, general and
administrative expenses 5,022 4,949 73 1.5%
------------------------------------
Total operating expenses 49,912 45,325 4,587 10.1%
------------------------------------
Earnings from operations 4,710 2,785 1,925 69.1%
Interest (income) expense, net -21 72 -93 -129.2%
------------------------------------
Earnings before income taxes and
minority interest 4,731 2,713 2,018 74.4%
Income tax provision 1,760 902 858 95.1%
------------------------------------
Earnings before minority interest 2,971 1,811 1,160 64.1%
Minority interest 126 150 -24 -16.0%
------------------------------------
Net income 2,845 1,661 1,184 71.3%
Less: accretion of issuance costs
and preferred stock dividends 752 132 620 469.7%
------------------------------------
Net income attributable to common
stockholders $2,093 $1,529 $564 36.9%
====================================
Earnings Per Share
Basic earnings per common share $0.22 $0.17 $0.05 29.4%
====================================
Diluted earnings per common share $0.21 $0.16 $0.05 31.3%
====================================
Weighted Average Shares
Outstanding
Basic 9,319 9,154 165 1.8%
====================================
Diluted 10,478 10,266 212 2.1%
====================================
Benihana Inc. and Subsidiaries
Condensed Consolidated Statements of Earnings
(Unaudited)
(in thousands except per share data)
Seven Periods Ended
-------------------
9-Oct-05 10-Oct-04 $ Change % Change
------------------------------------
Revenues
Restaurant sales $127,891 $112,735 $15,156 13.4%
Franchise fees and royalties 796 766 30 3.9%
------------------------------------
Total revenues 128,687 113,501 15,186 13.4%
------------------------------------
Costs and Expenses
Cost of food and beverage sales 30,846 28,931 1,915 6.6%
Restaurant operating expenses 74,081 66,708 7,373 11.1%
Restaurant opening costs 479 553 -74 -13.4%
Marketing, general and
administrative expenses 11,278 11,280 -2 0.0%
------------------------------------
Total operating expenses 116,684 107,472 9,212 8.6%
------------------------------------
Earnings from operations 12,003 6,029 5,974 99.1%
Interest expense, net 96 186 -90 -48.4%
------------------------------------
Earnings before income taxes and
minority interest 11,907 5,843 6,064 103.8%
Income tax provision 4,260 1,908 2,352 123.3%
------------------------------------
Earnings before minority interest 7,647 3,935 3,712 94.3%
Minority interest 304 362 -58 -16.0%
------------------------------------
Net income 7,343 3,573 3,770 105.5%
Less: accretion of issuance costs
and preferred stock dividends 929 158 771 488.0%
------------------------------------
Net income attributable to common
stockholders $6,414 $3,415 $2,999 87.8%
====================================
Earnings Per Share
Basic earnings per common share $0.69 $0.37 $0.32 86.5%
====================================
Diluted earnings per common share $0.66 $0.35 $0.31 88.6%
====================================
Weighted Average Shares
Outstanding
Basic 9,265 9,151 114 1.2%
====================================
Diluted 10,244 10,073 171 1.7%
====================================
Benihana Inc. and Subsidiaries
Sales by Concept
(Unaudited)
(in thousands)
Three Periods Ended
--------------------
9-Oct-05 10-Oct-04 $ Change % Change
-------------------------------------
Total restaurant sales by
concept:
Benihana $41,915 $38,616 $3,299 8.5%
Haru 6,497 5,222 1,275 24.4%
RA Sushi 5,404 3,633 1,771 48.7%
Sushi Doraku 458 330 128 38.8%
-------------------------------------
Total restaurant sales $54,274 $47,801 $6,473 13.5%
=====================================
Comparable restaurant sales by
concept:
Benihana $39,883 $37,479 $2,404 6.4%
Haru 5,310 5,222 88 1.7%
RA Sushi 4,716 3,633 1,083 29.8%
Sushi Doraku 458 330 128 38.8%
-------------------------------------
Total comparable restaurant sales $50,367 $46,664 $3,703 7.9%
=====================================
Seven Periods Ended
--------------------
9-Oct-05 10-Oct-04 $ Change % Change
-------------------------------------
Total restaurant sales by
concept:
Benihana $99,704 $91,097 $8,607 9.4%
Haru 14,731 12,322 2,409 19.6%
RA Sushi 12,441 8,534 3,907 45.8%
Sushi Doraku 1015 782 233 29.8%
-------------------------------------
Total restaurant sales $127,891 $112,735 $15,156 13.4%
=====================================
Comparable restaurant sales by
concept:
Benihana $95,327 $88,568 $6,759 7.6%
Haru 12,442 12,322 120 1.0%
RA Sushi 10,842 8,534 2,308 27.0%
Sushi Doraku 1015 782 233 29.8%
-------------------------------------
Total comparable restaurant sales $119,626 $110,206 $9,420 8.5%
=====================================
Benihana Inc. and Subsidiaries
Restaurant Operating Profit
(Unaudited)
(in thousands)
Three Periods Ended
-------------------
9-Oct-05 10-Oct-04 $ Change % Change
------------------------------------
Restaurant sales $54,274 $47,801 $6,473 13.5%
Cost of food & beverage sales 12,890 11,652 1,238 10.6%
------------------------------------
Gross profit 41,384 36,149 5,235 14.5%
------------------------------------
Restaurant operating expenses:
Labor and related costs 18,317 16,994 1,323 7.8%
Restaurant supplies 1,129 920 209 22.7%
Credit card discounts 991 855 136 15.9%
Utilities 1,531 1,279 252 19.7%
Occupancy costs 3,327 2,860 467 16.3%
Depreciation and amortization 2,439 2,132 307 14.4%
Other restaurant operating
expenses 4,076 3,385 691 20.4%
------------------------------------
Total restaurant operating
expenses 31,810 28,425 3,385 11.9%
------------------------------------
Restaurant operating profit $9,574 $7,724 $1,850 24.0%
====================================
Seven Periods Ended
-------------------
9-Oct-05 10-Oct-04 $ Change % Change
------------------------------------
Restaurant sales $127,891 $112,735 $15,156 13.4%
Cost of food & beverage sales 30,846 28,931 1,915 6.6%
------------------------------------
Gross profit 97,045 83,804 13,241 15.8%
------------------------------------
Restaurant operating expenses:
Labor and related costs 43,611 40,144 3,467 8.6%
Restaurant supplies 2,577 2,169 408 18.8%
Credit card discounts 2,327 2,008 319 15.9%
Utilities 3,303 2,837 466 16.4%
Occupancy costs 7,711 6,710 1,001 14.9%
Depreciation and amortization 5,587 4,914 673 13.7%
Other restaurant operating
expenses 8,965 7,926 1,039 13.1%
------------------------------------
Total restaurant operating
expenses 74,081 66,708 7,373 11.1%
------------------------------------
Restaurant operating profit $22,964 $17,096 $5,868 34.3%
====================================
Benihana Inc. and Subsidiaries
Restaurant Operating Margins
(Unaudited)
Three Periods Ended
-------------------
9-Oct-05 10-Oct-04
-------------------
Restaurant sales 100.00% 100.00%
Cost of food and beverage sales 23.75% 24.38%
-------------------
Gross profit margin 76.25% 75.62%
-------------------
Restaurant operating expenses:
Labor and related costs 33.75% 35.55%
Restaurant supplies 2.08% 1.92%
Credit card discounts 1.83% 1.79%
Utilities 2.82% 2.68%
Occupancy costs 6.13% 5.98%
Depreciation and amortization 4.49% 4.46%
Other restaurant operating expenses 7.51% 7.08%
-------------------
Total restaurant operating expenses 58.61% 59.46%
-------------------
Restaurant operating profit margin 17.64% 16.16%
===================
Seven Periods Ended
-------------------
9-Oct-05 10-Oct-04
-------------------
Restaurant sales 100.00% 100.00%
Cost of food and beverage sales 24.12% 25.66%
-------------------
Gross profit margin 75.88% 74.34%
-------------------
Restaurant operating expenses:
Labor and related costs 34.10% 35.61%
Restaurant supplies 2.01% 1.92%
Credit card discounts 1.82% 1.78%
Utilities 2.58% 2.52%
Occupancy costs 6.03% 5.95%
Depreciation and amortization 4.37% 4.36%
Other restaurant operating expenses 7.01% 7.03%
-------------------
Total restaurant operating expenses 57.92% 59.17%
-------------------
Restaurant operating profit margin 17.96% 15.17%
===================
Benihana Inc. and Subsidiaries
Balance Sheet Data
(Unaudited)
(in thousands)
9-Oct-05 27-Mar-05
------------------
Assets
Cash and cash equivalents $16,833 $3,278
Other current assets 9,635 9,625
------------------
Total current assets 26,468 12,903
Property and equipment, net 110,445 108,132
Goodwill 28,131 28,131
Other assets 5,372 5,088
------------------
$170,416 $154,254
==================
Liabilities and Stockholders' Equity
Current maturity of bank debt $3,333 $3,333
Current maturity of capital leases 0 26
Other current liabilities 21,693 23,082
------------------
Total current liabilities 25,026 26,441
Long-term debt--bank 4,167 6,667
Other liabilities 7,625 6,635
------------------
Total liabilities 36,818 39,743
Minority interest 2,303 1,999
Convertible preferred stock 19,233 9,305
Total stockholders' equity 112,062 103,207
------------------
$170,416 $154,254
==================
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