Benihana Inc. Reports Increased Fiscal 2003 Operating Results; Fourth Quarter Restaurant Operating Profit Margins Increase Sequentially.Business Editors MIAMI--(BUSINESS WIRE)--May 20, 2003 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 operating results for the fiscal year ended March 30, 2003. "Fiscal 2003, despite a challenging environment, was a year of significant progress for Benihana," 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:
bar - a counter where you can obtain food or drink; "he bought a hot dog and a coke at the bar" and Restaurant, Haru enjoyed steady growth and we opened two new teppanyaki restaurants. An additional Benihana teppanyaki restaurant was opened last month, with three more, in addition to four RA Sushi restaurants and one Haru restaurant, currently under development. Moreover, we have successfully addressed important issues that will contribute to the Company's near and long-range long-range adj. 1. Of, suitable for, or reaching long distances: long-range missiles. 2. Requiring or involving an extended span of time: long-range planning. profitability, including reducing costs of the health care benefits program and significantly improving productivity while maintaining our high standards of quality service. We also effectively revised our credit facility, gaining a strengthened and enhanced flexibility to finance Benihana's continued profitable growth." Fourth Quarter Results Fiscal fourth quarter total restaurant sales increased to $46.0 million, compared to $42.5 million in the corresponding year-earlier period, a gain of 8.2%. Net income amounted to $3.1 million, or $0.33 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, compared to $3.7 million, or $0.40 per diluted share, in the corresponding year-ago period. RA Sushi contributed $2.4 million in sales to the fourth quarter. Restaurant operating profits 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 to $8.4 million, compared with $7.9 million a year-ago, a 5.7% improvement, and increased sequentially se·quen·tial adj. 1. Forming or characterized by a sequence, as of units or musical notes. 2. Sequent. se·quen by approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $1.3 million over the preceding fiscal third quarter. An increase in advertising expenses of approximately $1 million in the fiscal 2003 fourth quarter over a year ago accounted principally for the increase in marketing, general and administrative expenses in the fiscal 2003 fourth quarter. Comparable restaurant sales at Haru, the Company's 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-based sushi restaurant chain, increased 9.7%, and at the Benihana teppanyaki restaurants, which account for approximately 83.5% of total sales, comparable sales declined 0.9%. The principal effect on teppanyaki comparable sales appeared to be unusually severe weather in the northeast “Northeastern” redirects here. For the Boston college, see Northeastern University, Boston. Northeast or north east is the ordinal direction halfway between north and east. It is the opposite of southwest. See boxing the compass. , as well as in Pittsburgh Pittsburgh (pĭts`bərg), city (1990 pop. 369,879), seat of Allegheny co., SW Pa., at the confluence of the Allegheny and the Monongahela rivers, which there form the Ohio River; inc. 1816. and Denver Denver, city (1990 pop. 467,610), alt. 5,280 ft (1,609 m), state capital, coextensive with Denver co., N central Colo., on a plateau at the foot of the Front Range of the Rocky Mts., along the South Platte River where Cherry Creek meets it; inc. 1861. , forcing the shutdown shut·down n. A cessation of operations or activity, as at a factory. shutdown Noun the closing of a factory, shop, or other business Verb shut down for as many as three days in some locations, the Iraqi war, which kept people at home, and the soft economy. Fiscal 2003 Results For the full fiscal year ended March 30, 2003, total sales increased 10.5%, to $187.9 million, compared with $170.1 million in the corresponding year-ago period, and net income for the year rose 7.3%, to $9.5 million, compared with $8.8 million a year earlier. 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 $1.01, based on 9.4 million average shares outstanding, compared with $1.11, based on 7.9 million average shares, in the corresponding year earlier period. Restaurant operating profits for the year increased 8.8%, to $30.0 million. Comparable store sales for the year increased 4.4%, with the teppanyaki restaurants up 2.8% and Haru increasing 21.1%. Sales in fiscal 2003 benefited by $3.2 million from the acquisition of the four-unit RA Sushi Bar chain. New Benihana teppanyaki restaurants that opened in fiscal 2003 in Las Colinas Las Colinas is a developed area in the Dallas suburb of Irving, Texas. Due to its central location between Dallas and Fort Worth and its proximity to DFW Airport, Las Colinas has been a viable place in the Metroplex for corporate and business relocation. and The Woodlands Woodlands refers to several places:
A total of 7.6 million people visited Benihana restaurants in fiscal 2003, an increase of 9.4% over the prior year's 7.0 million. In the fiscal 2003 fourth quarter the guest count totaled 1.9 million, compared with 1.7 million in the corresponding year-earlier period. The average check for the year amounted to $23.60, compared with $23.61 a year-ago; the fourth quarter average check was $23.61, compared with $24.01, impacted largely by what appeared to be a decline in beverage sales at the teppanyaki restaurants. The average check figures exclude take-out Take-out A cash surplus generated by the sale of one block of securities and the purchase of another, e.g., selling a block of bonds at 99 and buying another block at 95. Also, a bid made to a seller of a security that is designed (and generally agreed) to take the seller out of sales and the results of RA Sushi. New Restaurants Benihana currently has eight new restaurants in development. The Company plans a new Haru restaurant 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 three new RA Sushi restaurants, in Tucson Tucson (t  `sŏn'), city (1990 pop. 405,390), seat of Pima co., SE Ariz.; inc. 1877. , AZ, and San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. 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. A former Doraku restaurant in Chicago Chicago, city, United StatesChicago (shĭkä`gō, shĭkô`gō), city (1990 pop. 2,783,726), seat of Cook co., NE Ill., on Lake Michigan; inc. 1837. , IL, is being converted to a RA Sushi. In addition, new teppanyaki restaurants are in development for Scottsdale Scottsdale, city (1990 pop. 130,069), Maricopa co., central Ariz.; settled in 1895 by Winfield Scott, inc. 1951. It is a resort and retirement center in the Phoenix metropolitan area. , AZ, Alpharetta, GA, and 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. A new teppanyaki restaurant opened last month in Westbury Westbury, residential village (1990 pop. 13,060), Nassau co., SE N.Y., on Long Island; settled 1650, inc. 1932. The State Univ. of New York's Westbury campus is located in the village. Harness races are held at Roosevelt Raceway there. , NY. Outlook Based on an estimated 0.5% to 1.0% increase in comparable sales for the first quarter ending June June: see month. 30, 2003, the Company anticipates earnings for the period ranging between $0.32 and $0.35 per share. "We expect 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. costs along with MG&A and other expenses to essentially remain in line as we continue to grow and expand the Company," said Mr. Schwartz. "Benihana's financial condition is very sound and we are well positioned to continue moving forward. Fiscal 2004 appears to be getting off to a satisfactory start, despite the continuing economic crosscurrents, and we regard the outlook favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. ." About Benihana Benihana, now in its 39th year, and one of the nation's largest chains of Asian restaurants, currently operates 64 restaurants nationwide, including 54 Benihana teppanyaki restaurants, five Haru sushi restaurants, four RA Sushi Bar Restaurants and one Doraku restaurant. Three additional company-owned Benihana teppanyaki restaurants and a new RA Sushi restaurant are currently under development. 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, 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. Conference Call Scheduled A conference call conducted by Benihana Inc. management will take place on May 20th 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 through CCBN's website located at http://www.companyboardroom.com. To listen to the live call on the Internet, please go to the web site at least fifteen 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. For those who cannot listen to the live broadcast, a replay will be available through midnight June 1, 2003, shortly following the live call. For replay, dial 877-519-4471. You will be prompted for PIN number 3916044.
Benihana Inc.
Consolidated Statements of Operations
(Unaudited)
Three Periods Ended
(amounts in thousands except per
share data)
------------------------------------
March 30, March 31, Change %Change
2003 2002
Restaurant sales $45,993 $42,509 $3,484 8.2%
Franchise revenues 311 395 (84) -21.3%
------------------------------------
46,304 42,904 3,400 7.9%
Cost of sales 11,300 10,355 945 9.1%
------------------------------------
Gross profit 34,693 32,154 2,539 7.9%
------------------------------------
Restaurant operating expenses:
Labor and related costs 16,356 15,332 1,024 6.7%
Restaurant supplies 875 864 11 1.3%
Credit card discounts 787 708 79 11.2%
Utilities 1,000 886 114 12.9%
Occupancy costs 2,531 2,438 93 3.8%
Depreciation and amortization 1,876 1,462 414 28.3%
Other restaurant operating
expenses 2,879 2,526 353 14.0%
------------------------------------
Total restaurant operating
expenses 26,304 24,216 2,088 8.6%
------------------------------------
Restaurant operating profit 8,389 7,938 451 5.7%
Restaurant opening costs 131 138 (7) -5.1%
Impairment charge
Marketing, general and
administrative 3,528 2,558 970 37.9%
------------------------------------
Income from operations 5,041 5,637 (596) -10.6%
Interest expense 157 134 23 17.2%
Minority interest 106 93 13 14.0%
------------------------------------
Income before income taxes 4,778 5,410 (632) -11.7%
Income taxes 1,715 1,749 (34) -1.9%
------------------------------------
Net income $3,063 $3,661 $(598) -16.3%
====================================
Earnings per share, basic $0.35 $0.43 $(0.08) -18.6%
====================================
Earnings per share, diluted $0.33 $0.40 $(0.07) -17.5%
====================================
Shares and equivalents
outstanding 9,166,000 9,223,000
====================================
Sales by concept:
Benihana $38,416 $37,674 $742 2.0%
Haru 4,776 4,358 418 9.6%
RA Sushi 2,407 2,407
Doraku 394 477 (83) -17.4%
------------------------------------
Total sales $45,993 $42,509 $3,484
====================================
Comparable sales by concept:
Benihana $37,322 $37,668 $(346) -0.9%
Haru 4,772 4,350 422 9.7%
Doraku 394 230 164 71.3%
------------------------------------
Total sales $42,488 $42,248 $240 .6%
====================================
Year Ended
(amounts in thousands except per
share data)
-------------------------------------
March 30, March 31, Change %Change
2003 2002
Restaurant sales $187,913 $170,051 $17,862 10.5%
Franchise revenues 1,331 1,456 (125) -8.6%
-------------------------------------
189,244 171,507 17,737 10.3%
Cost of sales 46,182 42,754 3,428 8.0%
-------------------------------------
Gross profit 141,731 127,297 14,434 11.3%
-------------------------------------
Restaurant operating expenses:
Labor and related costs 70,261 62,677 7,584 12.1%
Restaurant supplies 3,893 3,368 525 15.6%
Credit card discounts 3,240 2,884 356 12.3%
Utilities 4,282 3,890 392 10.1%
Occupancy costs 10,342 9,822 520 5.3%
Depreciation and amortization 7,077 5,582 1,495 26.8%
Other restaurant operating
expenses 12,630 11,484 1,146 10.0%
-------------------------------------
Total restaurant operating
expenses 111,725 99,707 12,018 12.1%
-------------------------------------
Restaurant operating profit 30,006 27,590 2,416 8.8%
Restaurant opening costs 485 1,228 (743) -60.5%
Impairment charge 438 (438) -100.0%
Marketing, general and
administrative 15,512 13,373 2,139 16.0%
-------------------------------------
Income from operations 15,340 14,007 1,333 9.5%
Interest expense 528 990 (462) -46.7%
Minority interest 477 100 377 377.0%
-------------------------------------
Income before income taxes 14,335 12,917 1,418 11.0%
Income taxes 4,862 4,088 774 18.9%
-------------------------------------
Net income $9,473 $8,829 $644 7.3%
=====================================
Earnings per share, basic $1.08 $1.16 $(0.08) -6.9%
=====================================
Earnings per share, diluted $1.01 $1.11 $(0.10) -9.0%
=====================================
Shares and equivalents
outstanding 9,409,000 7,946,000
=====================================
Sales by concept:
Benihana $162,741 $153,814 $8,927 5.8%
Haru 20,181 14,343 5,838 40.7%
RA Sushi 3,226 3,226
Doraku 1,765 1,894 (129) -6.8%
-------------------------------------
Total sales $187,913 $170,051 $17,862
=====================================
Comparable sales by concept:
Benihana $156,160 $151,919 $4,241 2.8%
Haru 14,628 12,084 2,544 21.1%
Doraku 1,564 1,104 460 41.7%
-------------------------------------
Total sales $172,352 $165,107 $7,245 4.4%
=====================================
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