Benihana Inc. Reports Operating Results for Third Quarter; Comparable Restaurant Sales for Period Increase 4.7%.Business Editors MIAMI--(BUSINESS WIRE)--Jan. 31, 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 third fiscal quarter (12 weeks) and year to date (40 weeks) ended January January: see month. 5, 2003. The Company reported that comparable 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 for the third fiscal quarter increased 4.7%, a strong showing in the current economic environment. In addition, Benihana noted that its recent acquisition during the latter part of the quarter had positive operating results, and that procedures aimed at reducing labor and related expenses are yielding improvements. Total revenues for the third quarter ended January 5, 2003 increased 9.1%, to $43.8 million, compared with $40.2 million in the corresponding period a year ago. Gross profit (restaurant sales less costs 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. ) for the fiscal 2003 third quarter amounted to approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $33.0 million, compared with $30.3 million a year ago, an increase of 8.9%. The gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. equaled 75.7% and 75.9% for the two quarters, respectively. Total 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. (primarily labor, occupancy Gaining or having physical possession of real property subject to, or in the absence of, legal right or title. In a fire insurance policy, for example, the term occupancy and related direct costs) amounted to $25.8 million, compared with $23.4 million a year ago, and as a percentage of total restaurant sales amounted to 59.4%, compared with 58.6% in the corresponding year-ago period. It also compared favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. with the 62.0% in the preceding fiscal second 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. were $7.1 million in the fiscal 2003 third quarter, compared with $6.9 million a year ago, an increase of 3.3%. It represented a 29.0% increase over the $5.5 million of restaurant operating profits in the preceding second quarter of fiscal 2003. Marketing, general and administrative expenses, reflecting principally increased advertising expenditures, amounted to $3.8 million, compared with $3.3 million in the corresponding period a year ago, and as a percentage of total revenues rose to 8.7%. Net income amounted to $2.2 million, compared with $2.3 million in the corresponding year-ago period. Fully 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 $0.24, compared with $0.30 a year ago, because of an increase of approximately 1.3 million shares and equivalents outstanding in the current fiscal third quarter. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become (earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
Company-wide comparable restaurant sales for the third fiscal quarter increased 4.7%. Comparable sales at the teppanyaki restaurants (which represent approximately 80% of total revenues) increased 2.8%. For the first three quarters this year, total revenues increased 11.1%, to $142.9 million, up from $128.6 million in the corresponding period a year ago. Gross profits rose to $107.0 million, compared with $95.1 million a year ago, with gross profit margins improving to 75.4%, from 74.6% a year ago. Restaurant operating expenses for the three quarters totaled $85.4 million, compared with $75.5 million a year ago, while restaurant operating profits increased to $21.6 million, compared with $19.7 million, an increase of 10.0%. Net income totaled $6.4 million, or $0.68 on a 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. basis, compared with $5.2 million, or $0.67, fully diluted, in the corresponding period a year ago. The total company-wide guest count for the year to date increased 8.5%, to 5.71 million. The average check during the fiscal third quarter was $23.88, compared to $23.80 a year ago, which reflected selective price increases. Benihana reported progress in holding down both labor and health care costs. Labor and related costs were 37.5% of sales in the third quarter compared with 39.1% in the preceding quarter and 37.0% in the comparable quarter last year. Benihana attributed the improvement to an ongoing program to enhance productivity and improve scheduling, and certain changes to its health care plan. No new teppanyaki restaurants were added during the third quarter; however four restaurants are currently under development. The restaurant 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. , Long Island, is expected to open in the current quarter and the other three in the next fiscal year. The four 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" & Restaurant units acquired in December December: see month. 2002 contributed approximately $0.8 million to fiscal third quarter revenues and posted an operating profit. Haru's five sushi restaurants continued to experience brisk Brisk as a proper name may refer to:
"As the increase in our third quarter comparable restaurant sales suggests, Benihana continues to attract customers with our broad selection of quality food and our incomparable (mathematics) incomparable - Two elements a, b of a set are incomparable under some relation <= if neither a <= b, nor b <= a. entertainment," 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:
fac·et n. 1. A small smooth area on a bone or other firm structure. 2. to our Company's ability to meet the increasing national affinity The relationship that a person has to the blood relatives of a spouse by virtue of the marriage. The doctrine of affinity developed from a Maxim of Canon Law that a Husband and Wife were made one by their marriage. There are three types of affinity. for Asian food and particularly sushi, where we clearly are a leading chain. Our finances remain strong. Thus, we are highly encouraged regarding the benefits we expect to realize from our latest acquisitions, as well as from our plans to continue to expand from within in order to profitably grow our Company." About Benihana Benihana, now in its 38th year, and one of the nation's largest chains of Asian restaurants, currently operates 65 restaurants nationwide, including 54 Benihana teppanyaki restaurants, five Haru sushi restaurants, four RA Sushi Bar Restaurants and two Doraku restaurants. Four additional company-owned Benihana teppanyaki restaurants 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 which 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 January 31 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 World Investor Broadcast Link's Vcall website, located at http://www.vcall.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 February February: see month. 16, 2003, shortly following the live call. For replay, dial 877-519-4471. You will be prompted for PIN number 3708952.
Benihana Inc.
Consolidated Statements of Operations
(Unaudited)
Three Periods Ended
(amounts in thousands except per share data)
January 5, January 6,
2003 2002 Change % Change
Restaurant sales $43,521 $39,867 $3,654 9.2%
Franchise revenues 301 315 (14) -4.4%
------------------------------------
43,822 40,182 3,640 9.1%
Cost of sales 10,569 9,613 956 9.9%
Gross profit 32,952 30,254 2,698 8.9%
------------------------------------
Restaurant operating
expenses:
Labor and related costs 16,300 14,741 1,559 10.6%
Restaurant supplies 788 694 94 13.5%
Credit card discounts 762 685 77 11.2%
Utilities 900 802 98 12.2%
Occupancy costs 2,365 2,333 32 1.4%
Depreciation and
amortization 1,771 1,436 335 23.3%
Other restaurant
operating expenses 2,947 2,674 273 10.2%
------------------------------------
Total restaurant
operating expenses 25,833 23,365 2,468 10.6%
------------------------------------
Restaurant operating
profit 7,119 6,889 230 3.3%
Restaurant opening
costs 89 50 39 78.0%
Impairment charge - - 0
Marketing, general and
administrative 3,808 3,262 546 16.7%
Income from operations 3,523 3,892 (369) -9.5%
Interest expense, net 145 268 (123) -45.9%
Minority interest 102 46 56 121.7%
------------------------------------
Income before income
taxes 3,276 3,578 (302) -8.4%
Income taxes 1,108 1,239 (131) -10.6%
------------------------------------
Net income $2,168 $2,339 $(171) -7.3%
====================================
Earnings per share,
basic $0.25 $0.31 $(0.06) -19.4%
====================================
Earnings per share,
diluted $0.24 $0.30 $(0.06) -20.0%
====================================
Shares and equivalents
outstanding 9,205,000 7,907,000
Sales by concept:
Benihana $37,759 $35,785 $1,974 5.5%
Haru 4,493 3,759 734 19.5%
RA 819 - 819
Doraku 450 323 127 39.3%
--------------------------
Total sales $43,521 $39,867 $3,654
==========================
Other data:
Ebitda $5,264 $5,353 $(89) -1.7%
Ten Periods Ended
(amounts in thousands except per share data)
January 5, January 6,
2003 2002 Change % Change
Restaurant sales $141,920 $127,542 $14,378 11.3%
Franchise revenues 1,019 1,061 (42) -4.0%
------------------------------------
142,939 128,603 14,336 11.1%
Cost of sales 34,882 32,399 2,483 7.7%
Gross profit 107,038 95,143 11,895 12.5%
------------------------------------
Restaurant operating
expenses:
Labor and related costs 53,906 47,345 6,561 13.9%
Restaurant supplies 2,756 2,505 251 10.0%
Credit card discounts 2,452 2,177 275 12.6%
Utilities 3,262 3,004 258 8.6%
Occupancy costs 7,811 7,384 427 5.8%
Depreciation and
amortization 5,202 4,120 1,082 26.3%
Other restaurant
operating expenses 10,034 8,953 1,081 12.1%
------------------------------------
Total restaurant
operating expenses 85,423 75,488 9,935 13.2%
------------------------------------
Restaurant operating
profit 21,615 19,655 1,960 10.0%
Restaurant opening
costs 354 1,090 (736) -67.5%
Impairment charge - 438 (438) -100.0%
Marketing, general and
administrative 11,983 10,817 1,166 10.8%
Income from operations 10,297 8,371 1,926 23.0%
Interest expense, net 371 857 (486) -56.7%
Minority interest 370 7 363 5185.7%
------------------------------------
Income before income
taxes 9,556 7,507 2,049 27.3%
Income taxes 3,147 2,339 808 34.5%
------------------------------------
Net income $6,409 $5,168 $1,241 24.0%
====================================
Earnings per share,
basic $0.74 $0.70 $0.04 5.7%
====================================
Earnings per share,
diluted $0.68 $0.67 $0.01 1.5%
====================================
Shares and equivalents
outstanding 9,430,000 7,666,000
Sales by concept:
Benihana $124,325 $116,140 $8,185 7.0%
Haru 15,405 9,985 5,420 54.3%
RA 819 - 819
Doraku 1,371 1,417 (46) -3.2%
--------------------------
Total sales $141,920 $127,542 $14,378
==========================
Other data:
Ebitda $15,334 $12,716 $2,618 20.6%
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